Banc of America Investment Services, Inc. Media Plan

JOMC 172Dr. Bowers

ICC:Gary Barrier

Josh LaneAmber BernardWendy Ebeling

Bank of America Media Plan Part 1

Banc of America Investment Services, Inc.

Advertising Period: January 1, 2003 to December 31, 2003 

Market Description:

The investment services category is a fiercely

competitive market in which a multitude of investment

providers offer a vast array of advisory services and

investment products. Companies are attempting to distinguish

themselves in this market through advertising. From 1998 to

2000, advertising spending in the category rose 82%. In the

last 10 years, banks have entered this market at a steady

rate, but are challenged by an already established and

cluttered market of firms that specialize in investment

services. Banks attempting to establish their firms as

credible investment institutions face a difficult task

despite the fact that banks offer a competitive advantage by

handling checking and savings, and have shown investment

performance, among other resources.

The most significant brands that compete with banks in

investment services are: Fidelity Investments, Charles

Schwab, Ameritrade, Inc., Merrill Lynch, Datek Securities,

E*TRADE Securities, Inc., Morgan Stanley Dean Witter, Janus,

Saloman Smith Barney, T. Rowe Price, SunAmerica, CSFBdirect,

Prudential Securities, TD Waterhouse, and Oppenheimer. As

you can plainly see, banks in the investment business have

their work cut out for them.

Product Description:

Banc of America Investment Services, Inc.- a subsidiary

of Bank of America Corporation - is a full-service

investment and brokerage firm. Since 1983, Banc of America

Investment Services, Inc. has helped investors pursue their

financial goals and save for their futures by providing a

variety of investment choices. Some of the services Banc of

America Investment Services, Inc. can provide their clients

include the following: an approach that identifies goals for

the future, a wide variety of investment products that help

realize those goals and a staff of professionals to assist

the customer. Banc of America Investment Services, Inc. also

offers full service brokerage capabilities along with

Investment Consultants (IC) who provide personalized

assistance and guidance. Through the IC, the client will

receive: a personalized relationship with the IC that will

help develop investment opportunities and strategies

suitable for the client, asset allocation, professional

financial planning, Wall Street research, and fixed and

variable annuities. Banc of America Investment Services,

Inc. also provides FundAdvisor and FundManager Accounts and

College Saving plans. Another service that Banc of America

Investment Services, Inc. provides is discount brokerage,

which offers discounted commissions to those clients who

feel they do not need the assistance of an IC. For this

client Banc of America Investment Services, Inc. provides

resource and information that is designed to assist in the

self-direction of an investment strategy. Such resources

include: online and telephone training, online account

information, access to online research and analysis, online

investment planning tools and advice on select products

through their telephone Investment Center.  

Product Positioning:

Banc of America Investment Services, Inc. should be

perceived as a business that provides extensive investment

services and guidance to affluent clients concerned with

being able to have 24/7 access to accounts, flexibility of

advice provider and product and services that fit their

individual needs, including online investment and account

management.  

Competition:

More information needed on competitors.  

Seasonality:

After the September 11, 2001 terrorist attacks,

consumers in general and perhaps many of Banc of America

Investment Services, Inc.’s target clientele have been

hesitant to spend. Only adding to the problems of an economy

in recession, the attacks have made consumers hesitant and

even opposing new and “risky” spending. President Bush has

urged all citizens to spend freely to help along the

faltering economy. The economy can only go up from this

point, and it is believed that Banc of America Investment

Services, Inc can capitalize on this trend. Thereby, the

months leading up to, and immediately following tax season

will be key advertising months for investment services. It’s

common knowledge that consumers’ spend upon receiving their

tax refunds. It is believed that Banc of America’s

Investment Services, Inc.’s target demographic will be more

willing to invest in an economy they may have been reluctant

to invest in six months earlier after this period. Likewise,

the economy, and thus the stock market, can only heal over

the next six to seven months, easing the consumer’s decision

to invest.

Affluent Consumer’s Investment Confidence of a Normal MarketReturn After the September 11, 2001 Terrorist Attacks

  % Holding

Reduce No Change

Increase

Individual 82% 9% 53% 39%

StocksMutual Funds 81% 7% 56% 37%Real Estate 71% 13% 68% 19%Cash/cashequivalents

70% 9% 57% 34%

Bonds 57% 5% 62% 33%Collectibles 41% 4% 66% 27%

Venture Capital 14% 10% 78% 13%Private

placements13% 6% 83% 11%

Angelinvestments

11% 5% 91% 5%

*SOURCE: American Demographics October, 2001

Geography:

Bank of America’s Banc of America Investment Services,

Inc. is undoubtedly a national product. Although Bank of

America has locations in only 21 states and the District of

Columbia; its online offerings will make it a national

product offering. The diverse and broad variety of states

and populous’ that house Bank of America establishments only

serve to assist the success of Banc of America Investment

Services, Inc.

Number of Potential Affluent Consumers in the Top Ten Statesin Which Bank of America is Located*

California –

4,353,107 

Texas – 2,779,197 

Florida – 2,022,873 

Illinois – 1,661,136 

Georgia – 1,144,152 

North Carolina – 1,109,280 

Virginia – 1,019,794 

Tennessee – 813,409 

Maryland – 776,463 

Missouri – 764,429 

*This chart is based on the population of people in the target age range of 45-64currently living in a state that contains Bank of America retail locations. SOURCE:

Regional Markets Vol. 1/ Population

Purchase Patterns:

Services such as investment services are generally

products with a high level of brand loyalty with high and

intense consumer involvement. We want Banc of America

Investment Services, Inc.’s demographic to feel safe using

their services - online and in the “brick and mortar”

setting. Investment services are a purchase that potential

consumers want to be knowledgeable about before they invest.

They generally do not want to “jump head first” into

investment with a firm like Banc of America Investment

Services, Inc. until they are thoroughly knowledgeable of

its competence, reliability, and punctuality. Consumers

trust their friends, fellow co-workers and peers when

wanting recommendations about investment services, but often

go the “extra mile” themselves, sorting through and

gathering information on a variety of firms and their

offerings before making a decision about where to invest and

who to invest with. The primary consumer for investment

services and Banc of America Investment Services, Inc. tend

to lean more toward an older, more affluent, and better-

educated group. This group is generally dictated by a fairly

well defined demographic of working married men between 45-

64 sharing similar goals of planning for retirement and

wealth accumulation.

Usage Patterns:

The consumer is an active/heavy user of the product.

Banc of America Investment Services, Inc. is securing its

consumers’ future, as well as the futures of his children.

Thus, Banc of America Investment Services, Inc. plays an

extremely important role in the consumer's life.

Users of Banc of America Investment Services, Inc. are

going to be heavy users because they are already

participants in their financial planning to be so

momentarily advanced. There is a dichotomy between users of

investment services and nonusers due to wealth. Just as

there is a large dichotomy between the rich and the poor,

there is a significant dividing line between consumers that

have substantial financial resources to invest and those who

have minimal investment resources. 

Pricing:

In order to qualify for Banc of America Investment

Services, Inc. a person must have at least $10,000 in their

account. The $10,000 must be maintained in order to avoid a

monthly charge. Banc of America Investment Services, like

many of their competitors, does not charge commission for

their services. Instead the consumer pays a fee based on the

assets in their account. 

Distribution:

Banc of America Investment Services is distributed in

more than 340 locations across 21 states in the United

States and the District of Columbia. Bank of America retail

locations are not limited to one geographical area, rather,

the states in which they are located are spread across the

United States. Banc of America Investment Services is also

distributed nationally over the Internet.

Trade/ Consumer Promotions:

Bank Of America will begin a new investor promotion

that gives free checking and free unlimited teller usage for

one year with a minimum investment of $10,000. This

promotion is set to commence at the end of the first quarter

of 2003 and it will end at the end of the second quarter of

2003. 

Marketing Objective/Strategy:

Become known as one of the top twenty investment firms

rather than being known as just a local bank by shaping the

Bank Of America image towards attracting more seven figure

income investors that are heavy and light users of

investment services. 

Creative: 

• Message/Tone:

Banc of America Investment Services, Inc.’s

services are a relatively new offering in the world of

investment services, offering a variety of investing

options including online investing and planning for the

future. Banc of America Investment Services, Inc.

provides the security, simplicity, and quality that

you’ll need to build a foundation for you and your

family’s happy, comfortable future, and ease your way

into retirement by helping you build a strong

portfolio. However, Bank of America also knows that you

aren’t quite ready to settle down just yet and that you

still have plenty of years of excitement ahead of you

(not to mention the strive, ambition and fun-loving

attitude to help you out along the way). So invest,

build a retirement portfolio, buy that Harley-Davidson

you’ve always wanted and look forward to years of

retirement bliss with the ones you love!

Banc of America Investment Services, Inc. 

Media Objective Concentrate impressions against Banc of America

Investment Services, Inc. users, both in areas that have

Bank of America retail locations and high sales potential

markets. Emphasize reach during the first quarter launch.

The goal of is to maximize reach and frequency, and to build

awareness while building the credibility of the brand.

Messages should be delivered in a constant and consistent

environment relevant to the prospect consumers.  

Prospect Audience  

Basic Designation: 

Investment services users and category medium users.  

Demographics: 

Interest in and need for an investment service is dictated

by wealth and interest, most easily predicted by age, sex,

marital status and education. Two life stage segments are

recommended for targeting, based on a strong need for

investment services.  

The Affluent Market

Male 61%Female 39%Married 82%College Graduates

71%

 

Psychographics :  

The targeted prospects are generally serious, but do

value friends, family and a good time. The demographic are

achievers, but more importantly they are socially conscious,

valuing information that is easily and readily available to

them. They are somewhat independent, but they do not mind

seeking sources to aid them in an area such as investing,

especially when their futures’ are at stake. They are

affluent, but are generally unwilling to spend money

frivolously or for no reason at all. They tend to be

socially active with interests in the theater, dining out,

travel and supporting local commerce. They perceive

themselves as respected established individuals. 

Media Strategies Seasonality:

Advertising will concentrate with heavy doses for 12

weeks starting February 1st and lasting through April 31st.

These 12 weeks represent a crucial advertising period to the

consumer, as it is the months leading up to and the weeks

following tax season. Activity will be concentrated during

this period so that the potential consumer is fully

cognizant about the products that Banc of America Investment

Services, Inc. can provide for them upon receiving their tax

refunds. Activity will be split 65% / 35% between the first

and second quarters of 2003, respectively, while 0% activity

will take place in either the third or fourth quarters of

2003.

Advertising Activity in 2003 by Quarter

%GRPs0

102030405060708090

100

1st Qtr2nd Qtr3rd Qtr4th Qtr

Scheduling:

Advertising will be continuous through the months of

activity. This schedule reflects the importance of

constantly informing and reminding the consumer about Banc

of America Investment Services, Inc. during the tax season.

Consideration will be given to key promotion periods that

Bank of America will begin at the end of the first quarter

of 2003 and will conclude at the end of the second quarter

of 2003. This new investor promotion by Bank of America will

give free checking and free unlimited teller usage for one

year with a minimum investment of $10,000. 

Competition:

The key competitors in this market spend a significant

amount of their advertising budget on print and television

advertising. Fidelity Investments - the top spender of

advertising dollars in this category - has a print and

television advertising budget that is approximately 20 times

larger than that of Bank of America’s advertising budget. In

order to compete more fully with larger companies such as

Fidelity Investments, a larger budget must be allocated for

advertising. An increase in money available to advertise

will better the chances of Bank of America to establish a

brand presence in this highly competitive market and promote

the credibility of their product and offerings. Non-

traditional vehicles keyed to the unique interests and needs

of the target audience, such as the Internet, should be

essential in competing with other companies.  

Geography: 

An approximate 85% / 15% split between local and

national advertising is recommended, with the greater part

of Banc of America Investment Services, Inc.’s advertising

activity focused on the regional markets that house Bank of

America retail locations. Banc of America Investment

Services, Inc. allows new accounts to be opened online,

potentially making it a national product. However, in states

with “brick and mortar” institutions, potential investors

will be more likely to utilize the personal contact and

resources available to them then they would be to invest

online.

States and Locales in Which Bank of America Has RetailLocations 

ArizonaArkansasCaliforniaFloridaGeorgiaIdaho

IllinoisIowa

KansasMarylandMissouriNevada

New MexicoNorth

CarolinaOklahomaOregonSouth

CarolinaTennesseeTexas

VirginiaWashingtonDistrict ofColumbia

 

 

Further Activity Concentration 

Out of the 22 states and locales that accommodate Bank

of America, 10 of these states have a combined total of

16,443,840 potential affluent consumers. These markets are

California, Texas, Florida, Illinois, Georgia, North

Carolina, Virginia, Tennessee, Maryland, and Missouri. Of

the 85% concentration of regional advertising activity,

about 65% will be concentrated in the 10 key states where

the potential for trial usage is greater.  

Population Distribution (%) Among the Top Ten States withBank of America Retail Locations that have the Highest

Population of Affluent Consumers 

California26.5%

Texas16.9%

Florida12.3%

Illinois10.1%

Georgia7.0%

North Carolina6.7%

Virginia6.2%

Tennessee4.9%

Maryland4.7%

Missouri4.6%

Population Distribution (%) Among the Top Ten States with Bank of America Retail Locations that Have the Highest Population of Affluent Consumers

 

Effective Reach/Frequency Goals: 

Research shows that 56% of all banking consumers are

not aware that banks offer investment services. To compete,

a larger budget must be allocated to establish effective

levels of reach and frequency in order to maintain a top ten

advertising presence in the market. The motivational

frequency analysis (Exhibit 1) suggests a 3.8+ frequency.

This is the frequency needed to maximize an effective reach.

A B C D E123

4 Exhibit 1

5MotivationalFrequencyAnalysis

67 Marketing Factors Rationale Frequency

8 Established vs. New Brands

Bank Of America is relaunching investment service

+.2

910 Market Share Lack of consumer

awareness +.2

1112 Brand Dominance Located in 21 states -.21314 Brand Loyalty Over 3 million -.2

consumers use Banks ATM's

1516 Access For Customers Over 4,400 locations -.117

18 Usage PatternBank call center receives over 5 million

+.1

19 calls per year.20

21 CompetitionMarket prefers more established investment firms.

+.2

2223

24 Campaign Factors Rationale Frequency

25 New /Continued Campaign New campaign to promote more +.2

26 awareness of Banks investment services.

2728 Message Complexity Simple message:

Luxurious lifestyle +.2

2930 statement Uniqueness Campaign test average

among consumers. -.2

3132 Image /Product Sell Combine image and

product sell because +.2

33 of lifestyle/life stage significance.

34

35 Media Factors Rationale Frequency

36 Vehicle ClutterDay parts have high clutter in early morning

+.2

37and Prime Time. Printand Internet placement

38 will be unique.39

40 Vehicle InvolvementAggressive print to push awareness of service.

-.2

41

42 Media MixVarious TV and print combinations are veryeffective.

+.2

43Direct mail and Internet combinationsare also

44 Productive.45

46 EffectiveFrequency Base +3.0

47 Additional points

+.8

48 EffectiveFrequency Level +3.8

4950515253

Creative Units: 

The chosen advertising media for Banc of America

Investing Services, Inc. potential consumer consists of

print media, television, the Internet, and direct mail. The

print media consists of both newspapers and magazine

advertisements. Full-page newspaper and magazine

advertisements should be considered, and possibly the back

cover ads on select magazines frequently read by the

affluent market. Creative Internet and direct mail messages

will be utilized to target the affluent consumer.

Media Selection and Rationale 

Overview

The affluent consumer is well-read and likes to keep up

with current events/trends in the news and marketplace. The

consumer generally subscribes to one or more news magazines

and/or specialty magazines and are light TV viewers who like

to watch news stations and cable television programs that

reflect their lifestyles while relaxing during the later

segments of the day, generally late-night programming. They

keep up to date on current events/trends by watching

convenient news media and market analysis programs that keep

them informed during their hectic lifestyles and daily

routines. This demographic is generally Internet-literate,

but has problems dealing with websites that are more

complicated to use, and want their information to be up

front. Newspapers are often-utilized media with this group,

as they generally read one or more newspapers a day, even if

briefly. Their local newspapers are scanned, and more savvy

newspapers such as The Wall Street Journal and The New York Times are

read more in-depth. The demographic values accessible and

readily available information. 

Strategy

Television, print media, direct mail and Internet are

considered to be the primary advertising media to reach this

demographic effectively.  

Television (Cable and Network)

TV is a medium with a good range of audience

selectivity, especially cable television. The reach of

television – particularly network – is impactful, and is

sure to be effected by the affluent market. Advertising on

specialty cable networks provides a certain level of

credibility to Banc of America Investing Services, Inc. that

is sure to be noticed by the demographic. Approximately 45%

of the advertising budget will be allocated to TV ads, with

approximately 65% of that budget for cable television

advertising. Network TV advertising will receive 35% of the

advertising budget allocated to television. Equal bulk of ad

activity will be given for both the first and second

quarters of 2003, with activity confined to prime broadcast

and late night programming based on the affluent market’s

viewing habits at these hours.

Print Media (Newspapers and Magazines)

Print media were chosen due to their utilization and

perceived credibility by the target demographic. Print media

allow for precise selectivity based on the consumer’s

interest and needs. Financial, sports, health, and other

such print media will house advertising activity, as these

subjects are of more concern to the affluent market and will

thereby effectively reach the potential consumer.

Approximately 40% of the advertising budget will be spent on

print media with 60% of that amount allocated for magazine

advertising activity and the remaining 40% for newspaper

activity. Activity will be uniform throughout the first two

quarters of 2003, perhaps with special ads for the days

before and after April 15 in newspapers due to their

flexibility.

Direct Mail and Internet

Direct mail and Internet activity will be correlated;

with the Internet providing more in-depth information to the

consumer after interest is generated by direct mail efforts.

The affluent consumer values information, is generally

Internet literate, and wants to know whose hands their

future is in before they make their initial investment.

These media provide an excellent opportunity for potential

consumers to gather the information they need about Banc of

America Investing Services, Inc. that cannot be communicated

through print and television media. Internet and direct mail

activity, with uniform activity throughout the first and

second quarters of 2003, will represent the remaining 15% of

the advertising budget. Because of the flexibility of these

media, messages may be changed in the days before and

immediately following April 15, 2003.