Marketing System: Critical Review of Commonwealth Bank of Australia

MARKETING SYSTEM 1
Name of the topic: MARKETING SYSTEM
Student details:

MARKETING SYSTEM 2
CRITICAL REVIEW
Organizational background
This paper involves the critical review of Royal Commission into the banking industry of
Australia focusing more on the Commonwealth Bank of Australia (CBA). The review highlights
the significance of different marketing structures and functions required by the bank to reduce
the conditions to be involved in future scandals. Royal Commission exposed the misconduct of
CBA, which had a great impact on the marketing systems of the bank.
The role of organization within a Marketing system
Commonwealth Bank of Australia (CBA) is one of the biggest multinational banks of Australia
founded by the Commonwealth Bank Act 1911. In 2016, Commonwealth Bank of Australia
admitted that they have conducted a misleading practice to cover the heart attack by making
wrongdoings within the organization. Along with adapting the wrongdoing practices, the royal
commission also heard that CBA persuaded the supervisors to soften their language while
providing any information to the media related to the involvement of the misconduct. This can
result in terms of penalty for following the misleading advertisements (O'Brien, 2019).
This was a drastic mistake of CBA, which can result in the downfall in the capital of the
organization and can affect the company’s market image and condition. These failures allowed
for exploring deeper about the condition and suggesting various theories, which can be focused
for ending such activities in future. The evidence of this conduct in the organization can be found
in the media reports focusing on various archaic medical definitions taken by the company to
neglect the payment of the claims (Christodoulides et al., 2018).

MARKETING SYSTEM 3
In 2018, royal commission conducted a report on the misconducts happened in the
Superannuation, Financial Services and Banking Industry. This study concentrated more on
the Commonwealth Bank of Australia. The following are some of the critical review of the cases
analyzed by the researchers.
The study of (Palmatier, 2018), shows that Commonwealth Bank of Australia (CBA) told
Banking Royal Commission about the higher pay paid by the mortgage customers on their loans.
The research made it clear that CBA has admitted about the misconduct, which caused conflicts
in the company regarding the interest. The market image of the bank was almost at the end by
such of the activities and practices. This affected the commercial departments of the bank due to
which the medium or small enterprises businesses were damaged. The interest was decided
according to the payment of commission that was made by the Banks to the mortgage brokers.
The research of (Thomas & Czaplewski, 2017) analyzed that CBA sent two-week notice to
the brokers for the withdrawal of their authorization. The spokesperson of bank told Australian
broker that this was a part of the activities of the CBA services and products. The author
suggested that the salesperson can find the activities to be followed for selling the products of the
company. Such conducts resulted in less investment of the customers within the bank and
resulted in amendments in the policies and papers of CBA.
The case study of (Parliamenrt of Australia, 2018) explains about the programming fault in
the automated serviceability calculator that as used by the bank to evaluate assured submissions
for private drafts of the bank. The drafts decided by the bank is to be informed o the customers
having the drafts of their name. This study declares that CBA failed to take into deliberation the
announced living and housing expenses of around 11059 customers, and resulted in the break of
obligations of CBA under the NCCP Act. This further leads to lack of public interest for the