The Journal of Legal Studies

Running head: MARKETING SYSTEMS
MARKETING SYSTEMS
Name of Student
Name of University
Author’s Note

1MARKETING SYSTEMS
Table of Contents
INTRODUCTION:........................................................................................................2
OVERVIEW OF ROYAL COMMISSION REPORT:..................................................2
KEY STAKEHOLDERS:..............................................................................................3
ROLE OF MARKETING SYSTEM THEORY:...........................................................3
RECOMMENDATIONS:..............................................................................................5
Banking:.....................................................................................................................5
Monetary Counsels:...................................................................................................5
Superannuation:..........................................................................................................5
PRECAUTIONS:...........................................................................................................6
Protection:..................................................................................................................6
Culture:.......................................................................................................................6
Controllers:.................................................................................................................6
Pay:.............................................................................................................................6
CONCLUSION:.............................................................................................................6
REFERENCES:..............................................................................................................8

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INTRODUCTION:
This report tries to analyses the marketing system theory with the help of marketing
mapping. In order to analyses the marketing mapping this report explains the role of NAB
Group Bank’s within the Royal Commission final report that was submitted on February 4th,
2019. This report also provides complete insight about the marketing mapping theory and
tries to analyses the effect on the stakeholders of NAB Group Bank. At the end of this report
the recommendations are also being provided which discusses about the ways through which
the marketing system theory can be improved.
OVERVIEW OF ROYAL COMMISSION REPORT:
Banking Royal Commission Report or Hayne Royal Commission Report was first
developed on 14 December, 2019 by the Australian government. The commission was
developed in pursuant to the Royal Commission Act 1902. This commission was developed
to enquire about the and report of misconduct that are present in banking, superannuation and
whole financial service industry of Australia. This commission assists the Australian
governme(Bartlett III 2015). The parliament of Australia also directed Royal Commission to
enquire about the lack of regulatory inventions that are present in the relevant government
authorities. As per the report submitted by Royal Commission, many relevant government
authorities are involved in money laundering for drug syndicate, terrorism financing and high
level fraudulent act. This report also revealed that these government authorities completely
ignored statutory responsibilities that are associated with the citizens of Australia.
The same kind of revelations made when Banking Royal Commission or Hayne’s
Royal Commission submitted in February 4th, 2019. This report revealed all the fraudulency
act that were made by Australian banks in past decade. The report also states about all the
fraudulency act of all budgetary organizations in Australia. The report also highlighted all the
possible ways that the financial organizations used to loan cash to the client. This report also
states all the issues, causes and reactions that occurred due to such fraudulences. This report

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also provided suggestions that might help the government to deal with such type of
fraudulency.
The recent Banking Royal Commission Report also recommended that banks in
Australia were realizing profits by selling their client’s monetary exhortation. It took a gander
at the nature of budgetary guidance being offered by one of the biggest money related
counsel licensees claimed NAB GROUP Banking Group it discovered their monetary
counsellors had neglected to follow the eventual benefits of clients in 75% of their
recommendation. It closed there was a "characteristic" irreconcilable circumstance emerging
from banks giving individual money related counsel to retail customers while additionally
selling them monetary items.
KEY STAKEHOLDERS:
The main stakeholders of NAB Group of Bank that influenced the creation of
Banking Royal Commission were compensation, regulators, culture, insurance,
superannuation, financial advisors and banking.
ROLE OF MARKETING SYSTEM THEORY:
National Australian Bank also known as NAB is one of the largest financial
institutions of Australia. As per 2018 ranking National Australian Bank is ranked as 21st bank
in the world based on the market capitalisation, earnings and customers. National Australian
Bank is also one of the trusted banks of Australia. As per the findings made by the Royal
High Commission final report the bank practiced some unethical practice that resulted in
Wicked problems. One of the key challenges of wicked problems is that “many stakeholders
perpetuate the problem, with multiple levels of interconnecting factors involved”. Wicked
problems in all their complexity have not received the same level of attention as facets of the
issue, or as termed by Domegan et al. (2016) “single domain social marketing interventions”.
Duffy (2016), explains that in reference to social aspects of the marketing systems the wicked
problems may not have a direct influence with the intentions of an individual person.

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As per Coleman’s Boat, there are two major key areas which are mainly larger side
and lower side. The larger side is known as Macro Level and lower side is known as Micro
level. The Macro level includes organisations, various institutions, direct and indirect policy
makers or higher management etc. which is directly or indirectly influenced the whole group
and its culture that mainly reflects in the social behaviour. The lower part, which is the Micro
level that indicates the individuals or groups that are directly or indirectly influenced by the
macro level factors.
(Figure 1 : Casual diagram for relating micro and macro levels)
The next diagram highlights the wicked problems that are mainly done by National
Australian Bank. The diagram mainly highlights National Australian Banking policies
(Guseva 2017). Coleman’s boat is being used the wicked problem which are directly related
with end customers that are ultimately resulted in the creation of Banking Royal Commission
investigation.

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RECOMMENDATIONS:
National Australian Bank Group tries to engages its clients using the network of
stakeholders. The following recommendations for its key stakeholders are as follows:
Banking:
 Mortgage specialists should represent the eventual benefits of their clients. The
disruptions in ethical or moral practices should be liable to punishment.
 Lenders should restrain and control the paying of trailing commissions to
contract merchants for a few years.
 Mortgage merchants must be exposed to similar laws that would apply to money
related guides that are occupied with giving individual exhortation.
Monetary Counsels:
 The customer ought to have the option to audit all progressing charge game plans
every year.
 Financial consultants ought to reveal to the customer recorded as a hard copy
that they need autonomy in giving individual guidance to retail customers.
 Grandfathering of commissions in case of clashed compensation ought to be
revoked as quickly as time permits.
 Financial counsellors who draw in with customers in giving individual guidance
to their retail customers ought to follow single disciplinary body and ought to be
enlisted under similar standards.
Superannuation:
 Trustees of a superannuation reserve ought to be instructed of their obligations as
trustee.
 Deduction of exhortation charges from MySuper records ought to be surveyed
and prohibited.
 Hawking of superannuation items ought to be totally cancelled.

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PRECAUTIONS:
Protection:
The peddling of protection items ought to be restricted including the rejection of selling
burial service costs arrangements.
Culture:
 All money related administrations elements in the NAB GROUP system ought to
audit every year the structuring and advancement of their compensation
frameworks for client prompting staff.
 All money related administrations elements are exhorted as frequently as
conceivable cautiously audit their own way of life and administration.
Controllers:
The 'twin peak' model of monetary guideline ought to be advanced which will permit
equivalent force and duty to controllers and money related administrations suppliers.
Pay:
 NAB GROUP bank ought to set up an industry-subsidized remuneration plan to
help clients and budgetary specialist organizations.
 Implementation of a top on the measure of the commission that can be paid to
vehicle sellers for the offer of extra protection items.
 Financial measurements regarding long haul variable compensation should be
reset.
CONCLUSION:
The report mentioned by the Banking Royal Commission on National Australian
Banking states that the bank had used the unethical business practices. This report also states
that the bank deliberately broke the trust of their clients, which ultimately impact the policy
structure of National Australian Bank. The bank was fined with $500 million. The bank was
also directed to follow the recommendations that were made by the Banking Royal
Commission of Australia. In respect to the disruption caused by the bank, the penalty for the
bank was very nominal. It appears that the Banking Royal Commission resulted in helping

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the Banks itself. As the bank was still able to maintain its presence in the private mortgage
brokers and its widespread financial services network. The financial services should become
more proactive role in order to save the wealth of their customers.

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REFERENCES:
Bartlett III, R.P., 2015. Do Institutional Investors Value the Rule 10b-5 Private Right of
Action? Evidence from Investors’ Trading Behavior following Morrison v. National
Australia Bank Ltd. The Journal of Legal Studies, 44(1), pp.183-227.
Drew, J.M. and Cross, C., 2016. Fraud and its PREY: Conceptualising social engineering
tactics and its impact on financial literacy outcomes. In Financial Literacy and the Limits of
Financial Decision-Making (pp. 325-340). Palgrave Macmillan, Cham.
Guseva, Y., 2017. Extraterritoriality of Securities Law Redux: Litigation Five Years after
Morrison v. National Australia Bank. Colum. Bus. L. Rev., p.199.
https://www.charteredaccountantsanz.com/news-and-analysis/media-centre/press-releases/
banking-royal-commission-final-report-summary
https://www.royalcommission.gov.au/sites/default/files/2019-02/fsrc-volume-1-final-
report.pdf