Marketing Mix Of Santander and 7Ps (Updated 2024)

The Marketing mix of Santander analyses the 7Ps of Santander, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Santander. The Santander Group is of Spanish origin and is called Santander. It is a publicly traded retail banking company that deals in financial products and services. Santander was founded in 1857, and by 2016, it was ranked 37th as the world’s most significant public limited company by the Forbes Global 2000 List. It faces competition from several banking facilities, some of which are as follows-

• RBS
• Barclays Bank
• Standard Chartered Bank

About Santander

• Type: Multinational financial services company
• Industry: Banking, insurance, asset management
• Founded: 1857, Santander, Spain
• Founders: Antonio Labat, Agustin G. Gutierrez, Antonio Lopez Doriga, Juan de Abarca, Bonifacio Ferrer de la Vega
• Headquarters: Boadilla del Monte, Spain
• Area served: Europe, North America, South America, Africa, Asia
• Key people: Ana Patricia Botin (Chairman) and Jose Antonio Alvarez (CEO)
• Number of employees: 200,000+

Santander Product Strategy

Santander operates to market with business customers via both B2B and B2C marketing mediums as it deals in Personal Banking and banking with companies and business entities.

The new Product Mix of Santander in 2024 is as follows (Source).

1. Retail & Commercial: This area combines all of Santander’s retail and business banking globally. It offers various services typically associated with personal and small business banking.
2. Digital Consumer Bank: This segment encompasses all consumer finance activities worldwide, demonstrating Santander’s commitment to digital banking solutions and consumer finance products.
3. Payments: Under this area, Santander focuses on payment solutions, including PagoNxt and Global Cards. These services highlight the bank’s emphasis on digital payment technologies and card services.
4. Corporate & Investment Banking: As a distinct global business unit, this area caters to larger corporate clients and investment banking services, offering tailored financial solutions for corporate and institutional clients.
5. Wealth Management & Insurance: This unit covers wealth management services and insurance products, indicating Santander’s involvement in personal wealth management and various insurance products.

Santander Pricing Strategy

Santander’s cost and pricing strategy demonstrates a keen understanding of the diverse financial markets in which it operates. Here’s an expert analysis of their approach to the cost and the target market share:

1. Market Competitive Pricing: Santander strategically positions its prices to remain competitive in various markets. This involves tailoring pricing structures to align with local market conditions and consumer expectations, ensuring they remain attractive to existing and potential customers.
2. Segmented Pricing Approach: Recognizing the diverse needs of its customer base, Santander employs a segmented pricing strategy. Different pricing tiers cater to various customer segments, from retail banking products for individual consumers to more complex and tailored solutions for corporate clients.
3. Dynamic Pricing in Investment and Loan Products: In areas like investment services and loan products, Santander likely employs dynamic pricing strategies. These consider market conditions, the borrower’s creditworthiness, and global economic trends.
4. Promotional and Introductory Offers: Santander often introduces promotional pricing and special offers to attract new customers and retain existing ones. This could include lower interest rates for initial loan periods or special rates for savings accounts.
5. Value-Based Pricing for Digital and Premium Services: For its digital and premium banking services, Santander appears to use a value-based pricing model. This reflects the additional value these services provide, such as enhanced digital banking experiences or exclusive wealth management services.

Santander Place Strategy

Santander Group started its operations in Spain and had its headquarters base there. With time, it extended its operations via acquisitions, subsidiaries, and mergers across Asia, North America, Latin America, Africa, and Europe.

Santander has a significant international market share and presence. It includes countries like the United Kingdom, Hong Kong, Austria, Denmark, Belgium, France, Finland, Germany, Italy, Norway, Poland, Portugal, South Korea, Puerto Rico, Colombia, Peru, Chile, Luxembourg, Isle of Mann, Argentina, China, Australia, Japan, Mexico, Singapore, and the United States. It has a solid and widespread distribution channel, including 14,392 branches and a capable and trained workforce of nearly 186,000 employees to make new products and serve 102 million customers.

Santander’s place strategy can be summarized in all the concepts in the following points:

1. Global Presence in Key Markets: Santander has a significant presence in 10 core markets across Europe, North America, and South America, making it one of the largest banks in the world by market capitalization. This global footprint allows Santander to cater to a diverse customer base with varying financial needs.
2. Extensive Branch Network: The bank operates an extensive network of branches, especially in its key markets. This physical presence is crucial for providing personal banking services and fostering customer relationships.
3. Digital Banking Platforms: Emphasizing digital innovation, Santander offers robust online and mobile banking platforms. This approach aligns with the growing consumer preference for digital banking, allowing customers to manage their finances remotely.
4. Specialized International Desks: Santander’s International Desks are tailored to support clients looking to expand their businesses into foreign markets. This service demonstrates the bank’s commitment to aiding clients with international operations and transactions.
5. Comprehensive Distribution Network: The bank has a well-established distribution network comprising various dealers and stockists, enabling efficient reach to consumer markets. This network supports Santander’s strategy of being accessible to customers globally.

Santander Promotion Strategy

Santander Group has implemented several new products, promotional social media, and advertising policies to gain maximum brand awareness. It has entered into sponsorship deals and become a corporate sponsor of Formula One Teams like McLaren and Ferrari, Recopa Sudamericana, Copa Sudamericana, and Copa Libertadores de America. It also sponsors Rory McIlroy, Lewis Hamilton, and Jenson Button to increase its brand visibility. Santander is the title sponsor of the British Grand Prix. In 2015, the company entered a sponsorship deal with Transport for London’s bicycle hire scheme and rebranded its name to Santander Cycles. Social Media Marketing Santander is active on social media platforms like Instagram, Facebook, and LinkedIn.

The company realizes the impact of star power online advertising and has appointed Jessica Ennis-Hill, a famous British athlete, as its brand ambassador. The company has received several accolades and awards for its marketing and advertising works. Global Brands Magazine awarded it the Best Banking Performer in Spain in 2016.

Some Recent Video ads and Print ads for Santander are:

Santander People Strategy

The “People” component of the service marketing mix for a top financial services institution like Santander is crucial, as it directly influences customer perception, brand equity, and service quality. This aspect covers the employees, customer interaction, the broader organizational culture, and how it supports service delivery. Here are some key points regarding the “People” aspect of the pricing strategy for Santander:

1. Customer Service Excellence: Santander strongly emphasizes providing high-quality customer service. This involves training employees to be knowledgeable about products and services, empathetic towards customer needs, and skilled in resolving issues efficiently.
2. Employee Training and Development: Santander invests in continuous training and development programs for its employees to ensure they are well-equipped to handle the evolving needs of the banking industry. This includes technical training, customer service skills, and compliance education.
3. Diverse and Inclusive Workforce: The bank strives to maintain a diverse and inclusive workforce that reflects the communities it serves. This approach helps understand a wide range of customer needs and provides services catering to a diverse clientele.
4. Employee Engagement and Satisfaction: Santander recognizes the importance of employee engagement and satisfaction in delivering quality service. The bank conducts regular surveys and feedback sessions to understand employee concerns and implements policies that promote work-life balance and job satisfaction.
5. Leadership and Management: The leadership at Santander plays a critical role in shaping the culture and guiding the organization toward its service goals. Effective leadership is characterized by clear communication, a focus on customer-centric strategies, and the ability to inspire employees to achieve their best.
6. Brand Ambassadors: Employees at all levels are considered brand ambassadors of Santander. They are crucial in promoting the bank’s values and services within their professional networks and customer interactions.
7. Service Delivery Teams: Santander has specialized teams dedicated to different aspects of banking services, such as personal banking, business banking, wealth management, and customer support. These teams are structured to deliver tailored services that meet specific customer needs.
8. Feedback and Improvement Mechanisms: The bank has mechanisms to gather customer feedback about their service experiences. This feedback improves service delivery and addresses employee performance or service standards gaps.
9. Community Involvement and Social Responsibility: Santander encourages its employees to engage in community service and social responsibility initiatives. This contributes to societal well-being, helps build a positive brand image, and strengthens customer relationships.
10. Technology and People Integration: While Santander invests in digital technologies to enhance its service delivery, it ensures that the human aspect of banking is not lost. The bank focuses on integrating technology to complement human interaction, providing customers with digital convenience and personalized service.

Santander Process Strategy

The “Process” element of the service marketing mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For Santander, this aspect of email marketing strategy is fundamental in ensuring customer satisfaction, efficiency, and the overall quality of the banking experience. Here are key points regarding the “Process” marketing component in Santander’s service marketing mix:

1. Streamlined Account Opening Process: Santander has simplified the process of opening new accounts, making it quick and user-friendly. This includes online applications, minimal paperwork, and efficient identity verification methods.
2. Digital Banking Services: The bank has invested heavily in its online and mobile banking platforms to ensure customers can easily access services, manage their finances, and perform transactions from anywhere, at any time.
3. Customer Onboarding and Education: Santander emphasizes the onboarding process, providing new customers with comprehensive guides, tutorials, and support to familiarize them with banking services and how to use them effectively.
4. Multi-Channel Service Delivery: The bank offers multiple channels for service delivery, including branch offices, ATMs, online banking, mobile apps, and customer service call centers, ensuring customers can choose their preferred mode of interaction.
5. Automated Services and Self-Service Options: Santander provides various computerized services, such as ATMs for cash withdrawals and deposits, online bill payments, and self-service kiosks in branches, to improve service efficiency and convenience.
6. Personalized Financial Advisory Services: For customers seeking investment and financial planning advice, Santander offers personalized advisory services through experienced advisors, ensuring tailored solutions that meet individual financial goals.
7. Secure Transaction Processes: Security is paramount in Santander’s processes, with robust measures to protect customer data and transactions. This includes encryption, two-factor authentication, and continuous monitoring of transactions for fraud prevention.
8. Efficient Complaint Handling and Resolution Process: The bank has established clear procedures for handling complaints and resolving issues, with dedicated teams to address customer concerns promptly and effectively.
9. Continuous Process Improvement: Santander continuously improves its processes by leveraging customer feedback, technological advancements, and operational data to enhance efficiency and service quality.
10. Compliance and Regulatory Adherence: All processes are designed to comply with banking regulations and standards, ensuring legal compliance and protecting customer interests.
11. Loan and Credit Processing: The bank has streamlined its loan and credit processing, making it easier for customers to apply for and receive credit products. This includes clear criteria, transparent terms, and timely processing.
12. Investment in Technology and Innovation: Santander continuously invests in technology and innovation to improve its processes, including AI, blockchain, and big data analytics, to streamline operations and offer cutting-edge services.

Santander Physical Evidence Strategy

The “Physical Evidence” element of the service marketing mix refers to the tangible and intangible elements that customers interact with, which help them evaluate the brand loyalty product features and service quality. In the context of Santander, physical evidence plays a significant role in shaping customer loyalty perceptions and providing a sense of trust and security. Here are key points that outline the physical evidence in Santander’s service marketing mix:

1. Branch Design and Layout: Santander’s branch offices are designed to be welcoming and professional, with a layout that facilitates easy navigation. The aesthetic and functional design of the branches serves as a physical representation of the bank’s brand values and commitment to customer service.
2. Branding Elements: The bank’s visual identity, including its logo, color scheme, and branding materials, is consistently applied across all physical and digital touchpoints. This helps create a recognizable and cohesive brand image that customers can identify and trust.
3. ATM Network: The widespread availability of Santander’s ATMs provides tangible evidence of the bank’s accessibility and convenience. These ATMs are equipped with the latest technology for secure and efficient transactions.
4. Official Website and Mobile App: The design, functionality, and user experience of Santander’s official website and mobile banking app serve as digital physical evidence. They reflect the bank’s commitment to providing secure, convenient, innovative banking solutions.
5. Marketing and Promotional Materials: Printed and digital marketing materials, such as brochures, posters, and online ads, are crafted to reflect the quality and professionalism of Santander’s services, reinforcing the brand’s image.
6. Customer Service Interactions: The professionalism, attire, and behavior of customer service representatives and bank staff are crucial forms of physical evidence. They reflect the bank’s values and the quality of service customers can expect to receive.
7. Statements and Reports: The clarity, quality, and presentation of financial statements, reports, and other communication materials from the bank provide customers with tangible proof of their transactions and financial health.
8. Bank Cards and Cheques: The design and quality of Santander’s bank cards, checkbooks, and other banking instruments are essential forms of physical evidence that customers use in their daily transactions, reflecting the bank’s attention to detail and security.
9. Secure and Efficient Transaction Processes: The visible security measures in both branches and online (such as SSL certificates on websites) are evidence of the bank’s commitment to protecting customer data and financial assets.
10. Community Engagement and Sponsorship: Physical evidence of Santander’s involvement in the community through sponsored events, charitable activities, and local initiatives helps build a positive brand image and demonstrates the bank’s values in action.
11. Feedback and Communication Channels: Visible and accessible feedback systems, including comment boxes in branches and online review platforms, offer physical evidence of the bank’s openness to customer feedback and its commitment to service improvement.
12. Interior Signage and Informational Displays: Inside branches, clear signage, and informational displays help customers navigate services and provide a sense of order and professionalism, enhancing the customer experience.

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