The paper “ The Retail Lending Market in the UK, M& S Money’ s Benefit due to Using E-Marketing to Augment Its Presence on the Web and Enhance Customer Experience" is an outstanding example of a case study on finance & accounting. The retail lending market comprises of the mortgage segment and the consumer credit sector in the UK of which the contribution of the consumer credit market is just 24.6 percent. While there are several big players in the market not all of them sell beyond the UK. M& S Money too restricts its selling to the UK but has a strong database of customers.
They have not yet tapped the mortgage market and corporate lending. Even under insurance, there are several untapped areas. M& S Money can leverage benefit by using e-marketing to augment its presence on the web and enhance the customer experience. They can tap more segments, provide for interactive websites, offering real-time suggestions. M& S Money should stick to intermediaries and eliminate the disintermediation. They should exploit their web presence to increase information and knowledge sharing within the organization and across the group.
An online presence can only enhance relationships over the traditional relationship. Technology will only help it to augment its value proposition. Hence M& S Money should invest in IT solutions and keep assessing the performance on a regular basis. 2. Corporate Issues2.1 Advantages of M& S MoneyThe retail lending market profile covers consumer credit and the mortgage market. M& S Money offers consumer credit services in the financial services market having a wide range of services in the credit, investment, insurance and savings sectors. They offer a range of auto and personal loans and insurance cover starting from home and car to weddings and pets.
The most important advantages of M& S Money are its unit trusts, pension plans, and the & MORE Credit Card. They have 24 million outlets accepting the & MORE Credit Card and reward points are added on every spend. Another advantage is that all of their services are available online. In addition to the online service, MS& Money has also opened the Financial Services Center (FSC) which allows the customers to have face-to-face discussions about their requirements with their representatives. M& S Money has been in the field for over twenty years and is a wholly-owned subsidiary of HSBC.
More importantly, it can draw on the customer base of Marks & Spencer’ s, UK. The main competitors of M& S Money are Abbey National Plc as they offer the same services. The biggest advantage that Abbey has is the size of the organization. They are in a better position to sustain competition than M& S Money. Even though M& S has the advantage of the backing of HSBC and the Marks & Spencer’ s group, its advantages are not substantial in comparison to the competition.
Abbey operates in the UK, the US, and Europe while M& S operates primarily in the UK. The UK consumer credit market accounts for 24.4% of the market’ s value. The opportunities before M& S are plenty and they need to revise their marketing strategy considering that all their services are available online. 2.2 Role of IT applicationsThe importance of the web or the internet or simply the net has heightened in recent years because of the immense potential it offers for e-marketing of products or services.
Information Technology (IT) is changing the world; it has become infused in life and it brings many challenges with it. Every aspect of management today requires information on which to build the organization. While IT can be defined in different ways, it is generally associated with technology that overcomes distance barriers (Sohn, 2004). IT has a substantial influence on locational behavior and the distribution patterns of activities.