Economics / 1. Banks and the
banking system
Doctor of Science Pistunov IM
State Higher Educational Institution "National
Mining University"
Optimizing advertising costs
of banking services
One of the key elements of market infrastructure has a
decisive influence on the economic development of any country, serving the
banking system. Reforming the economic system of Ukraine is impossible without
the existence and sustainable development of the financial sector, where a
significant role of commercial banks. This is because it is the commercial
banks in the market is one of the most important elements of the economic
structure for the organization of cash and capital resources. With the
consolidation trend of economic growth in our country, the question of effective
implementation of banks entrusted to them in a market economy functions become
more significant. Particular weight they gain in terms of sharpening the
competitive relationship in the Ukrainian banking market. The limited sources
of resource base and secure areas of capital investment requires banks to new
approaches to financial intermediation to ensure compliance with the
requirements of services market. One of these areas is ongoing promotional
activities of banks with their coverage of the services.
When working in this area need to invest in
advertising with the greatest efficiency, which requires the development of a
system of feedback with the specialists of the bank, who have their own opinion
on the effectiveness of different types of advertising. Then, because of expert
opinion may be of the best areas to invest in advertising with the greatest
efficiency.
It was a problem to the management of the commercial bank
"Concord" city Dnieper, Ukraine. The management of the bank has been
allocated 10,000 UAH for a new advertising campaign. Employees of the bank and
its customers asking questions with a request to name the most effective, in
their view, form submission on
, (1)
where – 
rank expert answers, d – number of experts, m - number criteria.
Check the unanimity of responses was conducted of the
(1) for parameters d=5, m=28. After calculation received
value W = 0,745095785.
This result can be considered acceptable, because it
is more than 0.55.
Eligibility questionnaire allows us to find the
average score of the effectiveness of each type of advertising campaign results
are presented in Table. 1.
Table 1
Results calculating the average score types of
advertising campaign effectiveness
|
Advertising on radio |
Advertising in TV |
Advertising
on the Internet |
Outdoor advertising |
Advertisement in public transport |
|
2,3666667 |
3,2 |
3,8666667 |
2,733333 |
2,2666667 |
As can be seen from the calculations, experts believe
the most effective online advertising. In second place - on television.
To determine the need to invest in some of these
species must also consider the price to advertise. Knowing the rating of each
type of advertising, you need to plan, what is the proportion of the amount
allocated to advertising should spend on each of its kind?
To create an optimization model we introduce the
following notation:
Õ³ – share amounts S, allocated to each type of
advertising (1 ≤ i ≤ N);
N – number of types of advertising;
ѳ – price of the units of each type of advertising.
Then just be following expressions
,
(2)
.
(3)
The mean score the performance of each type of
advertising is denoted as ų.
While the overall effectiveness of measures to promote
banking services, can be found as
. (4)
Subject to (2) - (3) can make the task of maximizing
the efficiency of promotional activities as
,
, . (5)
Collecting data on the cost of advertising in the river gave the
following results [2]: Radio 1 sec – 24,00 UAH radio (1440 UAH / minute);
Television as 10 to 60 000 UAH for 1 minute; Advertisement in public
transport – from 25 UAH to 1,500 UAH per month; Outdoor Advertising – 1500 UAH
per month (large board); Advertising on the Internet (banner ads) - from 3000
UAH (4 hour per 4 sm) 16 cm2.
These data should lead to units that would determine the conventional
area, similar to the cost of radio. In addition, it was found that advertising
on transport has two components: advertising in the middle of the cabin and
advertising placed on the outside of the chassis of the vehicle.
Then, the present value of different types of advertising was (Table. 2)
2,3666667Õ1 + 3,2Õ2 + 3,8666667Õ3 + 2,733333Õ4 + 2,2666667Õ5 +
(6)
+ 2,2666667Õ6 →
max,
24Õ1 + 600Õ2 + 187,5Õ3
+ 50Õ4 + 13,889Õ5 + 1,4563Õ6
= 10 000,
.
Table
2
Present
value types of advertising for the city Dnieper
|
Options prices |
Types of
advertising |
|||||
|
Advertising on radio |
Advertising in TV |
Advertising
on the Internet |
Outdoor advertising |
Advertisement in public transport, in the middle of the cabin |
Advertising on
public transport, on the outside of the body |
|
|
Unit price |
24 |
600 |
187,5 |
50 |
13,889 |
1,4563 |
|
dimension prices |
ãðí/ñ |
ãðí/ñ |
ãðí/ñì2 |
ãðí/äåíü |
ãðí/ì2/äåíü |
ãðí/ì2/äåíü |
The solution to this problem of linear programming using the application
"Search solution" Microsoft Excel spreadsheet simplex method gave an
unexpected result, namely, X1
... X5 = 0, X6 = 1.
This decision means that the most effective advertising on the outside
of public transport. Therefore, you need the full amount of 10 000 UAH to spend
on 15564.44467 UAH / m2 / day.
That is, for the month of 30 days to advertise banking services at
518.8148224 m2. But according to certificate management of urban
electric transport, free were only 188 m2 area in trams and trolleybuses.
So finally the bank's management made a decision to purchase all the
available space and advertise for
15564.44467 / 188 = 82 days.
As a result of the campaign for the fourth quarter of 2015, number of
clients increased by 7, 8%, and profit - by 2.4%.
Literature
1.
Voronov
VA Churikanova AU, Non-parametric statistical methods in economics / – D.
National Mining University, 2008. – 63 p.
2.
http://index.minfin.com.ua/index/infl/