Analysing the Marketing strategy of Temenos

Analysing the Marketing strategy of Temenos This report focuses on the marketing strategy of Temenos and its position relative to competitors. It basically falls in the category of Business 2 Business sales. In the beginning it describes major factors affecting the sales of the core banking solution concisely and then includes the environmental analysis of US market for Temenos. Furthermore, current challenges Temenos faces in US market. In addition to that, report also comprises of 4p analysis and segementation, targeting & positioning strategies of Temenos. Company Background According to Temenos website, â€Å"Group AG is the market leading provider of banking software systems to retail, corporate, universal, private, Islamic and microfinance & community banks. Headquartered in Geneva with 56 offices worldwide, Temenos serves over 1,000 financial institutions in more than 125 countries across the world†. Business Buying Decision Process B2B decision process is mostly extracted from the study conducted by Dr. S. S. S atchidananda (2006) and from the book of Soloman(2009). Problem Recognition When technology is out dated and consider as hindrance for the growth of the business. System is unable to align with other modern systems. Maintenance of legacy system becomes too costly. Inability to handle new regulation. Scalability issue Information Search Firstly client needs to identify its current and perceptible future needs and then select the option on the basis of the requirement. Two basic options are available for the banks, advantages and disadvantages are mentioned in Appendix (A) figure (1.1). In case of integrated solution, vendors are selected that matches the requirements and constraints of the client. Vendor’s existence and credibility is considered as the decisive factor in the selection of vendor along with the methodology proposed by the vendor. Evaluation of Options After evaluating above mentioned criteria, one or two vendors are selected and they will be invited to Point of care (POC) and then planned a visit to vendor’s customer for evaluating the POC scenarios on production or real time environment. Post Purchase Evaluation Temenos used to do post purchase evaluation by conducting structured interviews and publishing case studies that are readily available on their web sites. The Environment 3.1 Macro Environment 3.1.1 Political Current financial crises lead to political instability and results in the introduction of new regulations and reforms particularly effecting banking industry. US congress has recently agreed a bill containing biggest overhaul of banking regulations since 1930(BBC News Business, 25th June 2010).Banks have lobbied against the legislation and launch an active campaign against the new regulation. Barack Obama has criticized banks for lobbying and spending huge amount of money on campaigns against the bill (BBC, 2010). Current defeat of democrats in US mid-term elections resulting in losing control over house of representat ive and consequently reducing majority margin in senate (Midterms Show Voters Stillà ¢Ã¢â€š ¬Ã‚ ¦, 2010). 3.1.2 Economical United States economy is in the phase of recovering from one of the most severe financial crises. GDP has grown by 2% mostly due to consumer spending. Additionally, business investment in software and equipment has surged by 12% and government spending increased by 3.4%. Although economy is showing some sign of recovery but still dollars in continuously weakening and unemployment rate increases (Julia Kollewe, 2010).