Marketing Management of ANZ Bank Australia

This assignment sheds light on the marketing management of ANZ Bank, Australia. It includes evaluation of current trends in terms of growth, profitability, macro environment, position of ANZ Bank in the competitive ambience of banking industry of Australia, major market segments for ANZ Bank and more.

Running head: MARKETING MANAGEMENT
Marketing management of ANZ Bank Australia
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Table of contents
Introduction................................................................................................................................2
Description of industry market for ANZ Bank..........................................................................2
Evaluation of current trends in terms of:....................................................................................2
a. Growth................................................................................................................................2
b. Profitability........................................................................................................................3
c. Macro environment............................................................................................................5
Position of ANZ Bank in the competitive ambience of banking industry of Australia.............7
Major market segments for ANZ Bank....................................................................................10
Level of involvement of primary segment in terms of the decision making...........................11
Positioning map for the market place.......................................................................................12
Conclusion................................................................................................................................13
References and bibliography....................................................................................................14
Appendix 1...............................................................................................................................17

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Introduction
Management is an important aspect, which helps in proper regulation of the business
activities. This is applicable especially in case of marketing. This is in terms of regulating the
marketing of the services in a proper manner, so that they reach to the customers properly
(Goworek, McGoldrick & McGoldrick, 2015). This assignment attempts to shed light on the
marketing management of ANZ Bank, Australia.
Description of industry market for ANZ Bank
Australia and New Zealand Banking Group Limited (ANZ) is the third largest bank in
Australia followed by Commonwealth Bank and Westpac Banking Corporation. This is in
accordance with the market capitalization. The industry for the bank is banking and financial
services. As per the annual reports of 2018, banking industry operated according to six
themes ranging from customer centricity to cyber risk (ANZ, 2018). Strategic approach
helped in maintaining the balance between the supply and the demand.
Evaluation of current trends in terms of:
a. Growth
The financial sector of Australia contributes greatly to the national economy. In terms
of GDP, it is approximately $140 billion as of the last year. Hard efforts of 450,000
employees are the major drive behind such economic growth. Strong regulatory system
results in the projection of sophisticated services. Largest pool of investment assets is a
support towards achieving competitive advantage over the contemporary banks. Typical
evidence of this lies in 2.5% growth in the CPI inflation rate in December 2003. Support from
RBA proved fruitful for ANZ Bank in terms of adopting incremental approach towards
monetary policy in one financial year (Treasury.gov.au, 2018). As a result of this, the cash
rate increased up to 5.5%in the first half of 2003. RBA Board meetings are one of the aspects,

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which increased the level of cash rate by 25 bps. Growth of cash rates from 4.75% to 5%
assisted ANZ Bank to contribute greatly towards stabilizing Australian economy.
Technological upgradation improved the focus in the financial services. Feedback from the
customers resulted in evaluation of the services and launch e-banks, which provided greater
accountability. Maintaining ethical approach assisted in attracting foreign clients, enhancing
cultural diversity. This resulted in the achievement of sustainable growth (Chernev, 2018).
b. Profitability
As a matter of specification, the banking industry in Australia can be categorised by
low levels of sector competitiveness, supernormal profitability and stringent or lax prudential
and consumer protection regulations. However, competing objectives assisted the banking
industry in making up for the drawbacks. These objectives included shareholder returns,
regulatory investment, system efficiency and customer satisfaction. Strategic approach
towards leveraging RealAs property assisted ANZ bank to create 1 million home loan
accounts. Accumulating greater share in the New Zealand market share strengthened the
market share of the ANZ Bank in Australia in terms of home loans (Treasury.gov.au, 2018).
Figure 1: Total assets of ANZ Bank, Australia
(Source: ANZ, 2018)

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Introducing Home Buyer Coaches in Australia increased the profit margin of the
small business by 9%. Side by side, the commercial deposits in New Zealand encountered an
increase of 6%. From the year 2011 to 2017, the total assets of the Bank were recorded as
897.33 billion AU$. Typical evidence of this lies in the economic profit, which was in
downmarket scenario in the financial years of 2015-16. The year 2017 reflected positive
results in the profit margin. In the same year, the cash profit was the highest, 6938m$ (ANZ,
2018).
Figure 2: Cash profit of ANZ Bank in 2017
(Source: ANZ, 2018)
Mention can also be made of the statutory profit, which witnessed an upsurge in the
financial year of 2017 (refer to Appendix 1).

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Figure 3: Statutory and cash profit of ANZ Bank
(Source: ANZ, 2018)
c. Macro environment
Factors
Political  Geo-political environment
 Political instability
Economic  Economic growth
Social  Changing needs of the clients and
the customers
Technological
 E-banking
Legal  Corporation Act 2001
 Australian Financial Service License
Environment  Reduction in carbon footprint
Table 1: PESTLE Analysis of ANZ Bank
(Source: ANZ, 2018)

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Political
Political instabilities have adversely affected the business activities of ANZ Bank.
Typical example of this is the hostile relationship with Iraq, US and the allies. Along with
thin, increased terrorism in North Korea Fiji, Solomon Islands and Tonga have greatly
affected the growth rates. This affection has compelled the bank staffs to encounter
noticeable reduction in the investment rates. Moreover, the instabilities have reduced the trust
among the customers regarding the financial services (Philip, 2017).
Economic
Regional economic growth is the major drive behind enhancement of the sales
revenue and profit margin for ANZ Bank. Shareholder returns, regulatory investment, system
efficiency and customer satisfaction have enhanced the sales revenue and the profit margin
for the Bank. Leveraging real estate properties strengthened the customer base. Developing
stage of the New Zealand economy might cause troubles for the Bank in terms of expanding
their business (Treasury.gov.au, 2018).
Social
Skilled and efficient staffs are the asset towards catering to the needs, demands and
requirements of the customers. Taking feedbacks from the customers helps in improving the
financial services. Typical example of this is the home loans, which have added stability in
the market share of the bank. The home loans have assisted the Bank in luring the New
Zealand customers (Weinstein & Pohlman, S2015).
Technological
Introducing mobile apps have revolutionised the financial services of ANZ Bank.
Consideration of technological diffusion has enabled the bank staffs to maintain the balance

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between the supply and demand. High involvement of the customers on the e-banking
services has compelled the staffs to adopt latest and modern software. Financial flexibility is
the major drive behind this. Installation of privacy cookies and policies has assured the
customers about the safety, security and privacy of their personal information (Hutchinson,
Donnell, Gilmore & Reid, 2015).
Legal
Jurisdiction regulates the services of the bank in their areas of operations. Compliance
with the regulatory standards and protocols is mandatory in terms of executing the financial
services in the international markets. Mention can be made of Banking Act 1959, which
proved beneficial in terms of carrying out the financial services according to the legislative
requirements. Adhering to the terms and conditions of Australian Financial Service License
seemed fruitful for the Bank, in terms of averting the instances of illegal instances and
scandals (Möller & Parvinen, 2015).
Environmental
Environment factors of the bank can be related with the risks, which financial industry
bears. In order to regulate the risk levels, the bank developed Social and Environment Policy
within the credit approval process. The screening tools are assistance in terms of identifying
the potential risks in case of the low and high risk borrowers. Implementation of Equator
Principles has enabled the staffs to carry out lending and investment in the developing
countries (Lovelock & Patterson, 2015).
Position of ANZ Bank in the competitive ambience of banking industry of Australia
According to the reports of Senate Economics Reference Committee, Australian
market is dominated by four major Australian banks- Commonwealth Bank of Australia,
Australia and New Zealand Banking Group, Westpac Banking Corp and National

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Australia Bank. This accounts for 3/4th market share. National Australian Bank recently
acquired a high competitive advantage over the contemporaries; however, the critics are
doubtful of its durability. The major drive behind this is occasional lucrative advertisements,
which is against the ethics of competition. According to the statements of the Competitive
Regulatory bodies, lending caps have reduced the intensity in the competition, restricting the
entry of the new entrants (Treasury.gov.au, 2018). Policy interventions have maximized the
profit margin for the banks in terms of competition.
In terms of Stand Alone Credit Profile, the banking operations of ANZ are stable,
assisting in contributing 65% towards the Australian market. Australian market is
characterized by high external debt, persistent current account deficits among others. In such
a scenario, services at low price and prospective value proposition by the private banks adds
vulnerability in the market position of Australia and New Zealand Banking Group. However,
e-banking facilities with security software and cookies puts ANZ bank at an advantageous
position (Treasury.gov.au, 2018). Inculcates trust within the customers and clients regarding
the services of the bank. Moreover, compliance to the standards of Australian Financial
Service License and Corporation Act 2001 seems fruitful for ANZ bank. This compliance
bars the entry of private banks in an ambience, where ANZ bank has already established their
position firmly.
Dominance of the suppliers decreases the profit margin of ANZ bank within the
market. The ruling suppliers in the banking sector of Australia adopt efficient means of
negotiation for extracting higher prices. High bargaining power of the suppliers is inversely
proportional to the profitability. Effective and flexible supply chain assists ANZ bank in
exerting authority over the suppliers. Usage of third party manufacturers assists brands like
Walmart and Nike to achieve competitive advantage (Treasury.gov.au, 2018). This adds
vulnerability in the market position of ANZ bank. However, third party manufacturers have

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less dominant power. Therefore, consideration of technological rate of diffusion would help
the bank in maintaining the balance between demand and supply of financial services.
Variations in the demands of the customers pressurizes the banking personnel of ANZ
Bank in terms of delivering quality financial services. Effective e-banking services adversely
affects the ability of the customers in terms of bargaining. Along with this, more is the power
of the buyers towards seeking discounts and offers. Strong and flexible supply chain network
is assistance in terms of streamlining the sales and production process. Bringing innovation
within the provision of financial services is one of the means, which enables the Bank to
influence the buying behaviour of the clients and the customers (Mortimer, Neale, Hasan, &
Dunphy, 2015). Typical example of this is updating the passbook securely or secure payment
methods.
Usage of devices like Dropbox, Google drive are substitutes for the storage facilities,
which helps the brands in providing effective value proposition for the clients and the
customers. This approach places the brand at a uniquely different position from the
contemporary brands. Conducting market research seems beneficial for ANZ bank in terms
of gaining an insight into the software, which supports the customers in making the payment
within short time. Focusing on the security of the personal information of customers
stabilizes the market position of bank (Lees, Winchester & De Silva, 2016). This step would
reduce the customer turnover, enabling the bank to enjoy competitive advantage.
According to News.com.au, (2018), the “four pillars” policy is effective in terms of
preventing the mergers and acquisitions in case of the four banks dominating within the
Australian market. Along with this, it is also effective in terms of exempting the foreign
banks from dominating the four major banks. The policy seemed beneficial towards

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preserving the competitive ambience of Australian market. Barring the entry of the new
entrants obstructs the competitive rivalry from intensifying.
Major market segments for ANZ Bank
Internet is one of the drivers, which has revolutionized the services of the companies
and organization. Within this, mention can be made of search engine optimization, which
takes the customers directly to the services and their benefits. Here, the marketing segment is
website designing, which helps the customers to get the accurate information about the
financial services. The main functions here is developing keywords and meta-tags, which
takes the customers directly to the financial services (Arenas, Peral & Ramón, 2015). In this
marketing, transactions take place between the bank and the website developers.
Within this, one of the relevant marketing segment for the Bank is mobile marketing.
Alliance between the bank and the mobile brands have eased the process of financial
activities for the users. The major drive behind this are the apps, which assists the users in
executing the financial services within a short time. Logging into the account makes the users
aware of the various points from where they can make the payments or check the available
balance. The critics are of the view that mobile marketing is a part of internet marketing
(Dootson, Beatson & Drennan, 2016). However, there are certain issues, which separates
internet marketing from mobile marketing. Not all phones provide standard operating system,
which aggravates the difficulty in executing the financial services.

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Figure: Mobile marketing of ANZ bank
(Source: ANZ Personal Banking 2018)
Mobile marketing has limited time, within which the important information needs to
be disseminated to the customers. On the other hand, internet and the TV commercials have
enough time for luring the customers through the customers. The promotional SMS, which
are sent by the banks may get lost in the process of communication with the users. It is also
observed that the users might not be interested to read the message. For this, the bank
personnel need to make the websites user friendly. This is in terms of the increasing mobile
usage for doing online (Cavusgil, Knight, Riesenberger, Rammal & Rose, 2014).
Social media marketing is one of the other segments for the ANZ bank. This is in
terms of strengthening the customer base. Adopting social media marketing enables the bank
personnel to increase the trafficking the audience towards the brand image. Uploading the
information of the newly launched e-banking platform on the website and the social
networking sites helps the personnel to reach the specific demands of the customers. Levying

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the services on the social networking sites is assistance in terms of identifying the target
audience (Roy, Devlin & Sekhon, 2015).
Figure: Social media marketing of ANZ Bank
(source: ANZ Personal Banking 2018)
Therefore, the primary target market of ANZ Bank are the tech savvy people,
belonging to the age group of 20-35. This is because they are proficient with the apps
services on the mobile banking. The secondary target market for ANZ Bank are the
customer belonging to the age group of 50-65. Although they are more experienced than the
customers of age group 20-35, they lack spontaneity in conducting mobile banking.
Level of involvement of primary segment in terms of the decision making
Primary target market for ANZ Bank are the customers belonging to the age group of
20-35. This is the segment, upon which the brands have faith in terms of enhancing the sales
revenue and profit margin. Here, the transactions take place between the brand and the
selected group of customers. The primary target market for the Bank are tech savvy and have
high bargaining power. Uploading the latest trends in retail banking proves beneficial for the

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Bank in term of influencing their purchasing decisions. However, this target market is
prospective in terms of boosting the sales production of the Bank, as they prefer online
shopping (Mehra & Coleman, 2016). Typical example of this can be privacy cookies and
policies, which have increased demands among the primary target market. Fraudulent cases
in transactions creates heavy impact on the primary target market. This compels the bank to
introduce safe and secure payment options, which restricts the intervention of third parties in
the transaction processes
The age group of 50-65 are senior than the 20-35 age group in terms of experience.
They have tried the services of the other brands, therefore, therefore, it is difficult for the
bank personnel to influence their purchase decisions. One of the weakness is that some of the
users lack technical skills, which results in the high involvement of the 20-25 age group
towards the services (Hossain, Dwivedi & Naseem, 2015). Therefore, training is one of the
effective means for the Bank in terms of controlling the decisions of the target audience
Positioning map for the market place
Figure: Position mapping of Australia and New Zealand Banking Group

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(Source: Treasury.gov.au, 2018)
The above figure depicts the position of different brands within the competitive
ambience of Australia. The focus of this segment is on the position of ANZ Bank. The
parameters of assessment are personalization and automation. Technological advancement
assisted the bank personnel in providing personalized banking solutions for the users. Typical
example of this are retail banking/net banking, Immediate Funds Transfer, Updating
passbook among others. Installing privacy cookies and policies is the keystone for the banks
in terms of achieving the trust, reliance and dependence of the customers. Innovation in the
mobile app operations strengthens the customer base for the bank and provides the bank with
the opportunity to enjoy competitive advantage over the contemporary banks- Westpac,
National Australian Bank among others (Treasury.gov.au, 2018).
Conclusion
Marketing segmentation helps ANZ bank in identifying the primary target market.
Usage of search engine optimization assists in conducting direct marketing. Adopting social
media seems fruitful for the bank in terms of strengthening the customer base. Technological
diffusion helps in maintaining the balance between the supply and demand. Along with this,
it also stabilizes the value chain.

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References and bibliography
ANZ Personal Banking | Accounts, credit cards, loans, insurance | ANZ. (2018). Retrieved
18th September 2018 from https://www.anz.com.au/personal/
Arenas Gaitán, J., Peral Peral, B., & Ramón Jerónimo, M. 2015. Elderly and internet
banking: An application of UTAUT2. Journal of Internet Banking and
Commerce, 20(1), 1-23.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.
2014. International business. Pearson Australia.
Chernev, A. 2018. Strategic marketing management. Cerebellum Press.
Dootson, P., Beatson, A., & Drennan, J. 2016. Financial institutions using social media–do
consumers perceive value?. International Journal of Bank Marketing, 34(1), 9-36.
Goworek, H., McGoldrick, P. J., & McGoldrick, P. J. 2015. Retail marketing management:
Principles and practice. Harlow, UK: Pearson.
Hossain, M. A., Dwivedi, Y. K., & Naseem, S. B. 2015. Developing and validating a
hierarchical model of service quality of retail banks. Total Quality Management &
Business Excellence, 26(5-6), 534-549.
Hutchinson, K., Donnell, L. V., Gilmore, A., & Reid, A. 2015. Loyalty card adoption in SME
retailers: the impact upon marketing management. European Journal of Marketing,
49(3/4), 467-490.
Lees, G., Winchester, M., & De Silva, S. 2016. Demographic product segmentation in
financial services products in Australia and New Zealand. Journal of Financial
Services Marketing, 21(3), 240-250.

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Lovelock, C., & Patterson, P. 2015. Services marketing. Pearson Australia.
Maheshwari, V., Gunesh, P., Lodorfos, G., & Konstantopoulou, A. 2017. Exploring HR
practitioners’ perspective on employer branding and its role in organisational
attractiveness and talent management. International Journal of Organizational
Analysis, 25(5), 742-761.
Mehra, S., & Coleman, J. T. 2016. Implementing capabilities-based quality management and
marketing strategies to improve business performance. International Journal of
Quality & Reliability Management, 33(8), 1124-1137.
Möller, K., & Parvinen, P. 2015. An impact-oriented implementation approach in business
marketing research: Introduction to the Special Issue on “Implementing Strategies and
Theories of B2B Marketing and Sales Management”. Industrial Marketing
Management, 45, 3-11.
Mortimer, G., Neale, L., Hasan, S. F. E., & Dunphy, B. 2015. Investigating the factors
influencing the adoption of m-banking: a cross cultural study. International Journal of
Bank Marketing, 33(4), 545-570.
News.com.au 2018, Memo to the big four banks, Retrieved 18th September 2018 from
https://www.news.com.au/finance/business/banking/memo-to-the-big-four-banks-
your-number-is-up/news-story/d7ec68937546541a6b0d370b5d7e9bb5
Philip.; Keller Kotler (Kevin Lane.; Ang, Swee-Hoon.; Tan, Chin-Tiong.; Leong, Siew
Meng). 2017. Marketing management. Pearson.
Roy, S. K., Devlin, J. F., & Sekhon, H. 2015. The impact of fairness on trustworthiness and
trust in banking. Journal of Marketing Management, 31(9-10), 996-1017.

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Treasury.gov.au 2018, The strength of Australia’s financial sector, Retrieved 16th September
2018 from https://fintech.treasury.gov.au/the-strength-of-australias-financial-sector/
Weinstein, A., & Pohlman, R. A. 2015. Customer value: a new paradigm for marketing
management. In Proceedings of the 1997 Academy of Marketing Science (AMS)
Annual Conference (pp. 132-133). Springer, Cham.
Yoganathan, D., Jebarajakirthy, C., & Thaichon, P. 2015. The influence of relationship
marketing orientation on brand equity in banks. Journal of Retailing and Consumer
Services, 26, 14-22.

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Appendix 1
Figure: Statutory profits of ANZ Bank
(Source: )