It was only about 20 years ago that most banks typically only used one distribution channel (their branches). However, since that time they have dramatically expanded the number of channels that they use. Below is a list of common distribution channels for a bank. Your task is to identify the most appropriate mix of channels for two different banks.

The first bankis a major bank that has an extensive number of branches throughout Australia. One of the key aspects of their positioning is that they offer great personal service The second bankis new to Australia. They have no branches and have very little brand awareness in the market. Their plan is to specialize in offering great value home loans only.

Direct channels

Direct channels

Indirect channels

Branches

Mobile managers (who visit the customer)

Enable transactions through third-party retail stores

Phone(a call center)

Personal Banker (staff who directly look after customers)

Utilize mortgage/loan brokers

Phone(an automated system)

Direct mail

Utilize investment advisers/financial planners

Internet banking

Email

Get referrals from real estate agents and accountants

ATM's

Mobile phone messages

Generate sales/referrals via independent internet sites

QUESTIONS

1.List the 5 most suitable distribution channels for each bank? Justify your answer briefly - (30 pts).

2.Is your selection of channels relatively similar or different between the two banks? Explain why - (20 pts).