Marketing and Management for National Bank - myassignmenthelp

Question: Discuss about theMarketing and Management for National Bank. Answer: National Bank of Australia The National Bank of Australia, usually referred to as NAB, is among the largest top four financial institutions in Australia in terms of the market share and market base. According to Guthrie et al., (2006), NAB was ranked among the best and largest bank in the world with higher market capitalization. According to the National bank of Australia, (2017), in a nutshell it boost of 1,590 branches and service centres and additional of 4,412 automated machines in Australia, New Zealand and Asia with customer base of 12.7 million people. The bank was established as a National Commercial Banking co-operation of Australia in 1982, through the merging of National Bank of Australia and the commercial bank of Sydney, the resulting bank gave birth to the name Australia Bank Limited. It has expanded tremendously over the years with market base increasing immensely. This has seen its expansion in the financial base and subsequent branch openings in many cities, which signifies positive growth. Th e bank has been launching branches, with an aim of building positive image in the financial sector. Its strategy has been to increase the market share by competing on price cutting for the customers. The strategy of denting earnings in the market share and building on customer satisfaction has been the driving force behind the bank. Cost Benefit Analysis of the Bank The National Bank of Australia, strategies itself to be among the leading banking entity with high quality of service that is responsive of its customers and clients. Business success determines these engagements of the banks. The sole aim is to maximize the profits and get more returns while maintain and expanding new customers to expand its broad base. For a review to be done there is need for cost benefit analysis to made in order to measure banks strategies in ensuring that expansion is achieved. According to Bansal, (2014), is important in weighing costs against benefits to inform the next course of action. For National Bank of Australia, the cost/benefit analysis is reviewed below, Benefits Cost - Simplifying bank process through system upgrades - Managing impacts of business through; - Reducing costs and business risks - Reduction in rework and effort in document processes - Avoiding duplication and redundancy process Skills teaching to managers to reduce waste, ensure quality and consistent customer service - Changing manual process allowed staff to be more effective - Reduced risks - Meeting compliance obligations - Meeting quality control objectives - Motivating staff - Reducing rework and effort in creation of documentation process - Avoiding duplication and redundancy across the organisation. Bank Organisation Analysis The National Bank of Australia is a business bank entity, that provides personal banking an business banking services. The company unit includes business and cooperate affairs units, consumer banking and wealth management. The baking business and banking focuses aims at targeting the Small medium and enterprise clientele, who include the National Australian bank, franchise with specialities in agriculture, health access, governments, education sectors and the business units and many more. The customer banking and wealth unit includes banking and wealth products strategy, marketing and cooperate affairs and counter banking and wealth management components. According to NAB financial reports, (2015/2016), the bank is fully founded on the principality of commitment to create more of what matters to the people and the needs of the community and the economy. It beliefs on motivation to the people and communities and it display passion to the customers in a demonstration to win more clients. Their responsibility approach is on cooperate social responsibility. The brand they are selling is aimed at providing quality products and services with fair remuneration and charges fees. The relationship build is based on the principles of help and guidance and to advice better financial outcomes for customers. The bank has keen focus on understanding its customers and understanding their preferences and what they want from them, they suit this into competitive package which drives customer loyalty for long term success. Through their visIon and goal, (NAB, 2017) the agenda of the National Bank of Australia is that it provides financial assistance in terms of superannuation, advice, investments and insurance solution ideas to both the retail world, cooperate institutions, and institutional clients. It aims to cater the needs of the customers in all aspects of the sphere ranging from agribusiness to asset servicing and treasury trading index portfolio. Marketing Component The National Bank has the belief that involves motivation to make positive and sustainable impact in the lives of customer and community underpinnings for strong business and improve customer satisfaction. The strength of the bank customer base and its stability is that it offers the clients with full satisfaction of meeting their needs; this has bolder solid backing for maintaining the business. The bank has more than 3 million personal and micro business customers which make its important in enhancing its stability and confirmed in the market environment. The innovative approaches to the business are key to helping retaining the customers as it leads to more positive image to the business and the satisfy the customers. Their opportunity is that meeting the financial needs of the clients is essential and hence driving the business forward, these opportunities are the driving force behind. The threats it encounters are the stiff competition it receives from other players and failure to provide customer satisfaction leads to drop in the customer base. Its weakness is that, due to the large base of personnel, managing this pool of people can be tedious, hence it may fall prey by, issues from the personnel and also decline in revenue which has affected growth and development The customer base it serves includes citizens from Australia, New Zealand and Asia. They have created exciting developments, which have committed significant investments in the region in a bid to ensure that they continue to meet the expanding needs. The bank offers its customers a range of banking business and financial services which include institutional banking, advisory services to business and migrant banking services for skilled and non skilled migrants and students studying in oversee countries. They also offer technical support for customers doing business in India and has been investing in citizens in a bid to boost its base in the region. The bank has built a network of partners who are working together to implement the organization objectives. The Bank provides financial services which includes business and personal banking insurance and creation of wealth management. The bank operates more than 1,800 branches and services centres in several countries. In order to reach this broad base, it has partnered with Oracle since 2008 to transform its engagement through creation of new customer platform that incorporates technology. Another implementing partner are the Canadian Imperial Bank of commerce which is the fifth largest lender, has formed a strategic partnership with National Bank of Australia in creations of new investments. This partnership enables the two banks to collaborate and and share aspects of product development and to facilitate the exchange of employee talent in the innovation world. Other partners include iGrafx tool set and Micro dynamics which offers process modelling toll. Micro dynamics has partner ed with NAB for the implementation of iGrafx business process analysis which indentifies activities which forms part of the strategic direction of the banking operations. With the facts of rapid expansion and positive growth in customer base the bank enjoys, it has fair share of competitors who are majorly the other banks who are competing for the same resources who are the people. They include the BNP Paribas, the standard charted bank, royal bank of Scotland, china construction cooperation, bank of America and Citigroup. Factors which have seen to be impacting the National Bank of Australia have fallen into various categories. The domestic and international economic influence has impacted on the status of the bank. The expansion of international economy with record of low interest rates and lower oil prices has had significant impact on the growth patterns. The instability of the euro era and the economy volatility in China has posed a significant risk on Australian economy. Other factors which affect its operation include managing of impacts of business in reduction of costs and business risks in improvement regulatory compliance initiatives. Also its quality output has been hampered by the reduction of work and effort in documentation process. The NBA handles its clients wants and needs through various strategies and framework s it facilitates this through building customer support base and encouraging the use of feedback and encouraging use of feedback to improve its clients. Resolving conflict with clients within 2 hours and response to complaints within 5 working days and offer new services which aims at reducing the complains from the customers. As part of this customer needs initiative, they rolled out customer response initiative which is aimed at improving the customers experience and ensure that the problems they encounter are sorted out efficiently. This step of customer initiative is taken on the grounds that issues affecting the customers very serious and they strive to offer solutions. The bank is facing stiff competition from banks such as Citigroup, china construction bank cooperation, bank of America, standard chartered bank, royal bank of Scotland, BNP paribus and many small upcoming banks in Australia. In a bid to manage this they have formulated the segment of targeting consumers through utilising on enterprise and individuals seeking financial help, and target the largest enterprises and individual investors. It has also improved its position on managing customers money at every stage of life. Marketing Strategy To approach the market segmentation for the bank, we will look into customer value segments and progression through the already built customer relation cycle. And then proceed to the phase of direct marketing activities, which the bank tries to sell and achieve and gain greater share of money to make more profit. The market segment of choice is to target the low value customers, who have limited financial needs and have their small business. In accessing this, it will target two groups of low customers. The first group is those that have small income or limited financial needs. This type of consumer will develop low level of profitability to the bank thus it is not common to see other banks to target this small group of individuals. The second segment lot in this target group are the potential customers who diversify the products through different financial institutions. A case example is when an investor chooses to have $50000 in savings deposited in various banks. This lot of clien ts provides low levels of profit contribution for the individual banks. This gives room for them to be upgraded to the next level package available in the bank, and the challenges will remain to be to convince these customers to place their financial assets in NBA. In accessing the medium value customers, they fall into two groups which involve customers who have majority of business in the National Bank of Australia and the second group involves those clients who have most of their financial business with other banks, may be due to the is special offers attached to and diversification of their various accounts. The next target segmentation available to the bank is to target the non customers; these are the consumers who have never had to do business with the bank previously. These consist of consumers who being competed by other banks and the younger consumers who are yet to sign in for bank accounts and services. The non customers are frequently targeted by banks due to the urge to have keen interests in the special offers and deals by providing them with special; offers and better deals. Targeting the high value customers for the bank is essential. This is the group who make large deposits and get huge loans and create a basis of the financial institutions in the profitability angle. This group often proof to be heard to retain but they are essential in their overall role in the attractiveness of the bank. The bank can also target the ex customers these are group who have become inactive and stopped using the financial services of the bank. However theoretically, they are hard to reach and get them to be reengaged in the business domain, due to their initial try, they may have found a chance and opportunity in a different bank. The changes of preference on these clients can be attributed from the changing taste preference and changing personal circumstances due to the changing needs or dissatisfactions, thus reaching them to get bank will be essential. Marketing Mix With the advent of the several services that the bank offers, formulation of product mix will be inevitable to target the whole segment of the target consumers. A study done by Poranki, (2017), the use of 7 Ps in marketing networks in banks has significant positive effect on the brand equity of the bank. The bank will sell their products to the various groups of customers highlighted in the market segmentation. The products to be promoted include savings accounts, current account opening and also to motivate those clients whom have become inactive through motivating tips like, re activation their accounts free of charge. For better product mix, there is need to group the product services into the following broad areas, savings accounts, currents accounts operations, salary accounts. Promotions of the different products which have an added advantage include home loan, personal loans and dormant account free openings. In promoting the price index for the various services under the National Bank of Australia, the variations of the prices will depend on the services requested by the clients. These prices will be formulated in a flexible manner in a way that is pocket friendly and motivates the consumers to do banking business in the bank. The pricing mix will involve flexible rates on commissions and fee charges at the banking halls, they need to display a competitive advantage to the new customers over the competing banks. The place and platform of promoting these products are very crucial and they play an important role in ensuring that the services are tangible. Considering quality of services given to the potential clients is crucial, and is considered by clients in the place of work as crucial. Clients perceive the type of service quality to the place of delivery which creates an appeal to them. In targeting this new segment, the National bank of Australia needs to target the customers in well conducive places and be able to convince them to join the bank. Providing an excellent environment in the form of place and location is essential in appealing customers segment. National bank of Australia will provide every tangible in the form of their interior, locations and exteriors. In promoting these essential services the bank will need to capitalize on various avenues for promotion which include in the form of visualization, association, physical representation and documentation. Visualization of these products and services to the segment customers will involve marketing inform of T.V and print campaigns and advertisements, this can be done in the print media, or online platforms or through visual networks like the TV. Physical representation will involve the use appropriate promotional appeal to the potential segment customers this will involve the use of colors and printed materials which are attractive to the eye, they include use of posters and branding materials, this symbolizes wealth and status. Targeting the right audience is essential. This will be essential through inclusion of people in the marketing mix. They form part of tangible assets. Their performance is essential for the growth of the business. According to Lawlor Carmody, (2001), good peop le make the business to have positive growth and bad people will lead to bad negative growth in the business. The bank needs to involve the right people in processing and marketing their products and services for positive outcome to be achieved. Improvement on the process and building business process protocols is essential;. This can be achieved through building people and creating result oriented approach. The process is designed through effective planning phase. For the NBA to achieve this there is need for comprehensive implementation process that involves everyone, in this way achieving success is eminent with high turn up of clients subscription. Lastly in the marketing mix the physical evidence for the service provided; these can include signage, reports, employees dress code and financial reports. In implementing and selling the NAB product to the new market segment, it will utilize the signage that is the logo as its brand in the market domain and to differentiate itself from other banks. Tangible items include provision of stationery items to the existing customers, this aimed at improving the satisfaction of the existing customers and boosting their confidence. The NAB will sell its branding services as a bank which has adopted the new technology and thus the reduction of paper works. According to Ivy, (2008), the bank has attracted new customers who are technology based and are in the marketing mix, adoption of this, marketing mix will enable satisfaction of the needs of the potential clients and improve the customer base of the National Bank of Australia.As stated by Rafiq et al., (1995), marketing mix serve as element s to that can be used to influence the behavior of consumer, to achieve this, following the protocol of 7ps will ensure realization of building strong customer base. Conclusion Concluding, is that the National Bank of Australia as one of the largest banks in Australia, offering financial services to its clientele. It aims at lifting its productivity across all its operational units; it aims at improving the service quality to customers in striving for this. Thus with this objective it is important from a marketing segment to guide on this process and the marketing mix illustrated above aim at improving the customer network and improves its profit margins in general. References "Annual Report 2014" (PDF). National Australia Bank. 14 November 2014. Retrieved 25/05/2017. https://www.nab.com.au/content/dam/nabrwd/About-Us/2014-annual-financial-report.pdf "Five lessons from NAB's "bank break-up" marketing campaign". Smart Company. Retrieved 25/05/2017. http ; https://www.nab.com.au/ "Five lessons from NAB's "bank break-up" marketing campaign". Smart Company. Retrieved 25/05/2017. http ; https://www.nab.com.au/ About Us - NAB". National Australia Bank. Retrieved 25/05/2017. Http; https://www.nab.com.au/about-us Annual Report 2015" (PDF). National Australia Bank. 28 October 2015. 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National Australia Bank Case study, accessed online, 25/05/2017. https: https://www.managementparadise.com/forums/final-100-mark-project/11865-7-ps-bank-marketing.html Poranki, K.R., Assessment of Marketing Mix Components of Service on Bank Customers of State Bank of Hyderabad, Andhra Pradesh, India. Rafiq, M. and Ahmed, P.K., 1995. Using the 7Ps as a generic marketing mix: an exploratory survey of UK and European marketing academics. marketing intelligence planning, 13(9), pp.4-15.