Integrated Marketing Communications

This article discusses the potential utilization of IMC plan and recommendation for Commonwealth Bank of Australia. It includes a situational analysis, SWOT analysis, IMC objectives, methodologies/tools, and measuring and evaluating the planning process.

Running head: INTEGRATED MARKETING COMMUNICATIONS 1
Integrated Marketing Communications
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INTEGRATED MARKETING COMMUNICATIONS 2
Table of Contents
Introduction......................................................................................................................................2
Stakeholders Issues/Concerns and Factors that have Contributed Present Situation......................3
Potential Utilization of (IMC) Plan and Recommendation.............................................................4
Situational Analysis.....................................................................................................................4
SWOT Analysis.......................................................................................................................4
IMC Objectives............................................................................................................................5
IMC Methodologies/Tools...........................................................................................................6
Public Relation (PR)................................................................................................................6
Advertising..............................................................................................................................6
Measuring and Evaluating the Planning Process.............................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................7
Appendices......................................................................................................................................8

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Integrated Marketing Communications
Introduction
The Commonwealth Bank of Australia (CBA) is considered as one of the biggest banks
in Australia. The bank is also a multinational bank with branches in other regions such as the
United States, Asia, United Kingdom, and others (Worthington, 2016). According to the 2017
financial report, CBA reported a revenue income of approximately 26 billion dollars which is an
increase in its annual revenue generation. The bank is considered as one of the best banks in
Australia in leading financial assistance to both institutions and individual customers (Pearson,
2009). In the wake of Banking Royal commission in 2018, CBA has continued to face a series of
allegation such as fraud that has led its investors to lose billions through reckless investments.
Prior to the last year performance, the CBA positioning in the market has continued to be
affected and thus also losing its competitive advantages.
Stakeholders Issues/Concerns and Factors that have Contributed Present Situation
With the recent troubles, the CBA shareholders have been affected dearly. According to
the recent Banking Royal Commission statement, CBA is considered almost unfit to offer bank
loans and/or any leading financial assistance due to the incurred high losses (Cranston, 2018).
The Royal Commission scandal has affected several major banks which have portrayed the
struggle to remedy the tarnished public image, unlike CBA which continues to refuse to point out
leadership mistakes and steps taken to correct the situation. Through this, CBA market stand is
considered to be in a very critical condition where investors and customers have continued to
decline any further transactions with the bank. This can be perceived by the decline of the
company performance in the Australian Securities Exchange. According to economy analysists,
the CBA down rate performance is majorly categorized as a result of its poor marketing

INTEGRATED MARKETING COMMUNICATIONS 4
strategies in controlling major issues such as the current fraud probe (Macdonald, Burke, &
Stewart, 2017).
Through the reckless investment scandal, one of the main issues that have raised concerns
in the entire stakeholder structure is the bank transparency. In line with integrated marketing
communications (IMC), CBA has mainly failed to account for its activities through the lack of
exchange and accessibility of information to the investors (Low, Davey, & Hooper, 2008). The
government has also raised its concerns about the scandals that continue to arise in banks. This
has led to the expansion of the investigation to determine what are the triggers or causes of the
current situation (Cranston, 2018). Through this, CBA can majorly be characterized to have lost
the control of public relation and thus also the ability to maintain good customer relation and
insights that assures its capability to the stakeholder. Another main attribute to the current
situation and sudden poor performance is the cost-effectiveness of the entire marketing effort in
maintaining a positive image of the bank (Luxton, Reid, & Mavondo, 2015). In accordance to the
recent school scandal, employees have also been affected in their performance especially on
online transaction services which plays a vital role in CBA main operations.
Potential Utilization of (IMC) Plan and Recommendation
Prior to the already known feature of IMC utilization in demonstrating effective different
communication options, it has also been demonstrated by other companies such as Walmart to be
effective in the remedy of such situation CBA is currently facing (Worthington, 2016). The IMC
campaign utilization will emphasis on increasing the brand awareness of the bank, brand attitude,
and its strategic market position.

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Situational Analysis
SWOT Analysis
Strength Weaknesses
1. CBA has significant wide distribution
customer base in Australia, UK, US,
and Asia. This one its major
competitive advantage that CBA has
against its competitors in the banking
market.
2. CBA is considered to have one of the
best banking systems, especially in
online transactions and services. This
majorly portrays the bank with more
brand recognition (Shimp, 2010).
3. Prior to the scandal losses, CBA has
enjoyed economic stability over
previous years through the increase of
its financial investment profit ratio.
1. The organization has a sign of
inability in dealing with critical
matters such as the ongoing fraud
probe.
2. Like any other banking organization,
the bank has a weak customer relation
which is also aligned by the poor
leadership system in administration
and marketing.
3. With respect to the recent issues, CBA
has almost no transparency between
the shareholders in regards to the
exchanges of sensitive information
(Pearson, 2009).
Opportunity Threats
1. One of the main advantages of the
CBA is its current market dominance.
Through this, CBA has the ability to
re-establish its normal functionality
through the application of proper
marketing strategies (Low et al.,
2008).
2. CBA has also significant brand image
across all its operational regions with
a high number of loyal customers.
3. Expansion of the bank into emerging
1. One of the main threat of CBA in its
current situation is the competition
from its rivals and the loss of its
competitive advantages.
2. With continuous issues in misconduct
and frauds, CBA might face harsh
legal strikes which might also tarnish
more the bank image and increase
losses (Paul & Kourouche, 2008).

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market and especially Asian market.
Fig 1. Commonwealth Bank of Australia SWOT Analysis
IMC Objectives
As a marketing consultant for the company, the main approach of the IMC that the bank
should consider to undertake is a rebranding of its public image and brand. This essentially can
be attained through effective stakeholder communications with the bank in identifying a remedy
of the current situation. At the end of the IMC process, the bank should be able to increase its
customer base in the market and in line enhance its communication channels for better service
provision and transparency (Caemmerer, 2009). The other main objective of IMC is the
maintenance of the continuous increase in profit. Although it might be difficult for the bank to
reach last year 8.2% profit increase, through proper IMC plan application, the bank should be
able to regain its bargaining power by regaining the incurred losses.
IMC Methodologies/Tools
Public Relation (PR)
One of the main approach CBA should emphasize is a public relation (PR) tool. This is
mainly to restore the image of the bank in line with the entire stakeholder trust. Through the PR,
CBA should be able to account for the required shareholder communications and identifying the
gaps in the market that the scandal reputation may have damaged. Also, PR will also help in
strengthening the “continuous disclosure policy” which will act as a guarantee to the
shareholders that the current situation will not likely occur again (Paul & Kourouche, 2008).
Advertising
Advertising is another significant tool that will be able to effective in the bank situation.
The main use of advertising as the tool is to be able to reach effectively all target market by

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launching a series of specific media marketing strategies (Andrews & Shimp, 2017). The main
theme of advertising will be to restore the bank brand “As a friend to all its customers and staffs
in safeguarding their well-being and resources”. The other significant feature that advertising
will emphasis on is the restoration of its ethics and responsibility to shareholders and the society
needs as its main priority (Pearson, 2009).
Measuring and Evaluating the Planning Process
After the implementation IMC plans, for a duration of 5 months, the statistics number of
customers should increase by the at least 2%. This is generally in the entire target market where
IMC focus will be majorly emphasized in the recapture of the market share. Also, the
effectiveness of the tool should also be portrayed in an annual report where the bank should be
able to regain the incurred losses earlier in the year and 3% profit gain. The profit increase is
mainly targeted by the emphasis on customer base increase and the ability to convince potential
investors to continue investing through assuring CBA profitability position (Andrews & Shimp,
2017).
Conclusion
In conclusion, the recent royal commission scandals have significantly affected CBA
performance and generally its market structure. Despite the bank continuous incredible
performance in the past few years, the reputation damage is considered to continue to cause
major losses especially with how the bank has continued to handle the scandal situation (Luxton
et al., 2015). Through IMC planning, CBA can easily restore its customer faith and trust in the
banking industry in its capability to continue to offer effective financial services and solutions.
One of the advantages of CBA in the market structure is its broad base of loyal customers. With

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this, the IMC planning and implementation process are estimated to be very effective and one of
the main competitive advantage of the CBA against its rival competitors (Caemmerer, 2009).
References
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Caemmerer, B. (2009). The planning and implementation of integrated marketing
communications. Marketing Intelligence & Planning, 27(4), 524-538.
Cranston, R. (2018). Principles of banking law. Oxford University Press.
Low, M., Davey, H., & Hooper, K. (2008). Accounting scandals, ethical dilemmas, and
educational challenges. Critical Perspectives on Accounting, 19(2), 222-254.
Luxton, S., Reid, M., & Mavondo, F. (2015). Integrated marketing communication capability
and brand performance. Journal of Advertising, 44(1), 37-46.
Macdonald, I., Burke, C., & Stewart, K. (2017). Systems leadership: Creating positive
organizations. Routledge.
Paul, S., & Kourouche, K. (2008). Regulatory policy and the efficiency of the banking sector in
Australia. Australian economic review, 41(3), 260-271.
Pearson, G. (2009). Financial Services Law and Compliance in Australia. Cambridge University
Press.
Shimp, T. A. (2010). Integrated Marketing Communication in Advertising and Promotion/or
Terence A Shimp (No. 658.8 S45.).

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Worthington, A. C. (2016). Financial literacy and financial literacy programmes in Australia.
In Financial Literacy and the Limits of Financial Decision-Making (pp. 281-301).
Palgrave Macmillan, Cham.
Appendices
Profitability of Commonwealth Bank of Australia
Operating Margin 30.87
Pretax Margin 30.85
Net Margin 22.44
Return on Assets 1.04
Return on Equity 16.09
Return on Total Capital 3.62
Return on Invested Capital 5.05
Fig 2. Commonwealth Bank of Australia Profitability Ratio.