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Assignment on Commonwealth Bank of Australia pdf

   

Added on  2021-04-24

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Running Head: Commonwealth Bank of AustraliaCommonwealth Bank ofAustralia
Assignment on Commonwealth Bank of Australia pdf_1
Commonwealth Bank of Australia 1Commonwealth Bank of Australia (CBA):Banking has evolved dynamically over the years. The banking sector’s stereotypicalactivities of Branch Banking and Corporate Finance are being replaced by retail andtechnology based channels of delivery[ CITATION DrK07 \l 16393 ]. CBA takes its placeamong the top four bank of the country along with National Australia Bank, ANZ andWestpac. It has its headquarters are in Sydney. It employs 51,800 employees over 11,000branches. It has a customer base of 16.6 million[ CITATION Cor16 \l 16393 ]. It was founded bythe Australian government in 1911 and listed in the Australian Securities Exchange in 1991.Its privatisation occurred in the year 1996 [CITATION Ays18 \l 16393 ].There are a wide range of functions that CBA performs which include corporate financialservices, various types of loans and credit services, wealth management, retail and businessbanking, institutional banking, investment advisory services, insurance, share brokingproducts/ services, security services, superannuation and many others[ CITATION Ays18 \l16393 ]. Segmenting, Targeting and Positioning (STP):STP strategic approach plays an important role in the modern marketing and is widelyaccepted and used[ CITATION Ann17 \l 16393 ]. It is an audience-oriented approach ratherthan product-oriented. It helps to identify, classify and focus on the target audiencesseparately. It separates the market based on certain common characteristics for the ease ofmarketing. Segmentation could be done on various grounds like:DemographicsGeographyPsychographics [ CITATION Ann17 \l 16393 ]Services ProvidedAfter having identified and classified various potential markets, targeting is done. Potentialityof each market is assessed along with its commercial attractiveness. One or more suitablemarkets/ segments are chosen to supply the goods and services. Potential and commercialattractiveness of each market can be assessed by the following [ CITATION Ann17 \l 16393 ]:Size of each market
Assignment on Commonwealth Bank of Australia pdf_2
Commonwealth Bank of Australia 2Each market’s accessibilityCosts and profits associatedVariations in marketsOther benefits (if any)Positioning is the final step in which different products to be supplied are identified in eachmarket. It caters to the needs of different segments or markets. Each market is suppliedcommodities as per their requirements. A separate marketing mix is identified and developedin each segment. Positioning is often done to keep up its market position and sustain in theline of business.STP in Commonwealth Bank of Australia:CBA has segmented the market on the basis of:Geography: It has its branches across nations like New Zealand, USA, UnitedKingdom, Asia and Fiji[ CITATION Ays18 \l 16393 ].Services provided: CBA provides various loans and credit services, wealthmanagement, retail and business banking, institutional banking, investmentadvisory services, insurance, share broking products/services and securityservices.Demographics: CBA not only targets young and middle-aged people, but alsoextends its facilities to the old-aged and specially-abled group of the society.CBA targets both individual customers as well as big corporate houses. On the basis ofsegmentation; it provides personal banking and individual loans, corporate banking andloans, investment, institutional financing, retail banking, business banking and share broking.CBA conducts many Corporate Social Responsibility (CSR) activities and providesinnovative products and schemes to keep up its positioning. It takes up many ‘opportunityinitiatives’ towards the society, community and education[CITATION Com18 \l 16393 ]. Itoperates in various local areas of Australia for the sustainable social growth[ CITATION Com17\l 16393 ]. It works with conduct code of highest levels and increases its accessibility bymaking the banking process easier[CITATION Com181 \l 16393 ]. Product v/s Market orientation:Product orientation refers to the production where the firm makes and supplies the bestquality product; and the market falls for its quality. It does not take into account the needs ofthe customers. On the other hand, market oriented production refers when the firm analyses
Assignment on Commonwealth Bank of Australia pdf_3
Commonwealth Bank of Australia 3the market’s hidden needs and supply the products accordingly. Production in this case isbased entirely on the needs of the consumers[ CITATION Nei18 \l 16393 ].CBA is both product as well as market oriented. It conducts surveys throughout the year toanalyse the market requirements and then provide products and services accordingly. Itinvests in the consumer feedback to improve the products as per the requirements. CBA onthe other hand also tries to give services of the best quality to attract the new customers aswell as maintain the old ones.Value Proposition and Differentiation:Value proposition refers to the innovative bundle of benefits, the firm has promised to deliverto its customers. It acts as a tool which differentiates one firm from the others. It is thusimportant to weigh the value propositions as per the price premium (Kotler, & Keller, 2012). CBA not only provides banking but other services like insurance, investment advisory, broking products and services, various schemes on purchase through debit and credit cards,and superannuation. It launched a campaign called ‘Determined to be different’, in 2008. Customer satisfaction surveys are conducted to meet the growing needs of the customers. Ambidexterity is attained by providing high-quality services at reduced costs and increased productivity[ CITATION DrR11 \l 16393 ]. CBA publicises with innovative and creative advertisements, specifying the customer needs and the offerings of the bank, for the globallydiverse customers[ CITATION Str16 \l 16393 ].CBA also extends its services to the old-aged and specially-abled section of the society by handling clients personally and being accessible. It also organises and sponsors many events and cricket matches for men as well as women.CBA also values the growth of its employees through human resource development. It targets competence, technical capacity, leadership quality and personal behaviour[ CITATION Com171 \l 16393 ]. It promotes performance culture; provides loan benefits, health insurance, pension funds, reward programs, employee discounts along with regular salary and bonuses.Customer need, want and demand:A rational customer wants high quality product with moderate prices. There are three typesof customers- brand loyal, connoisseurs and bargain hunters. CBA thus, needs to cater to
Assignment on Commonwealth Bank of Australia pdf_4

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