Service Product Marketing for Commonwealth Bank

This report talks about the Commonwealth bank, its services, market analysis, service performance analysis, and recommendations for the future.

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Running Head: SERVICE PRODUCT MARKETING 0

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Executive summary
This report talk about the Commonwealth bank. This organization has a very good position in
the market of Australia. It is a well-established organization that refers many services to
customers. This organization target the all type of customers as it is necessary in today’s
competitive environment. It support the organization to gain the large number of customers in
the market. The following report highlight the services of the organization, market analysis of
the organization, service performance analysis, and recommendation for the future.

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Table of Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Commonwealth bank.................................................................................................................3
Premium business services and wealth management.............................................................3
Target market.............................................................................................................................4
Service performance analysis.....................................................................................................5
Place/distribution....................................................................................................................5
Promotions..............................................................................................................................5
Recommendation for place/distribution.....................................................................................6
Recommendation for analysis of market....................................................................................7
Analysis of market size..........................................................................................................7
Analysis of market trend........................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
Commonwealth bank offers a range of credit card to retail and corporate sector Abul,
Chamhuri, & Basri, 2011). It has profitable growth in corporate card and retail segment. This
is also known as a main part for the strategic direction of bank. The award scheme of
organization introduced by vouchers, gifts, and miles. This is an effectively established
organization that uses many marketing opportunities to gain the good number of market share
(Jeon, Olivero, & Wu, 2013). This support the organization to attract the large number of
customers. This paper discuss about the commonwealth bank with services. It is a very
effective brand that provided services to customers. Further it covers analysis of target
market, service performance analysis of Commonwealth bank and recommendation.
Commonwealth bank
Australia commonwealth bank is a multinational bank with businesses in Asia, New
Zealand, UK, and USA. Commonwealth bank provides many financial services that include
business and institutional banking, retails, superannuation, management of funds, insurance,
services of broking, and investment. This is also known as a largest Australian listed
organization on the Australian Securities exchange in 2015 by brands consisting ASB bank,
Bankwest, Commonwealth securities, Colonial first state investment, commonwealth
insurance and Commonwealth securities. It is also recognize as the biggest bank in Southern
Hemisphere. It was founded in 1911 by government of Australia and privatised in 1996. This
is also one of the big four banks in Australia with ANZ, National Australia bank, and
Westpac. In 1991 it was listed in the Australian Stock exchange (Echchabi & Aziz, 2012).
This organization delivers services to personal and business customers.
Premium business services and wealth management
Premium business services split in two department that are institutional banking &
markets, and business & private banking. It consists areas of bank that delivers services to
institutional clients and global markets (Khraim, Al Shoubaki, & Khraim, 2011). Premium
business services includes bank area that deliver facilities to customers of business and
customers of private banking. Management of wealth brings combinedlly groups fund
management platform, insurance, master funds, and financial advice that support business.
Wealth management part is Colonial first state global asset management and commlnsure.
This organization is a biggest retail bank that offer a range of services and products to
customers including credit cards, loans, and saving accounts. This organization has the

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biggest branch and network of ATM. This organization delivers services to individual that
plan to move in Australia. Commonwealth bank offers an application on mobile that available
on Android and Ios. It has subsidiaries in Australia known as a commlnsure, Bankwest,
Colonial first state, Commonwealth securities. This organization has a subsidiary in New
Zealand known as an ASB. It has subsidiaries in Asia pacific known as a PT bank
commonwealth and Colonial national bank (Sharma, 2011).
Target market
The marketing strategy of Commonwealth bank identify the segments of business on
the bass to understand customer’s specific purchasing behavior. This consists expectations,
requirements, and purchasing behavior that are heterogeneous and depend on multifaceted
factors like age, income, gender, values, lifestyle, and so on. Organization uses technique of
segmentation that narrow down large, diversified target market in specific, narrowly groups.
Segmentation of market surveys are useful methods to obtain the specific information of
customers and used to generate groups by sharing common characteristics. Customer’s
unique behavior of purchasing and getting the correct information from surveys organization
divide the market in small homogeneous groups. Organization completed this by exploring
demographic, geographic, psychographic, and behavioural characteristics of customers.
Organization uses strategies regarding segmentation to choose the correct market segments
and develop efficient marketing strategy (Ghalandari, 2012).
The geographic segmentation of commonwealth bank divides market in geographic
areas like nation, city, and region. The demographic segmentation of organization divide
market according to the demographic characteristics like age, gender, ethnicity, and income.
Behavioural segmentation of commonwealth bank divided as per the purchasing patter like
use of frequency, usage occasions, benefits sought, and loyalty of brand. Segmentation of
psychographic result in grouping of customers as their interests, lifestyles, attitudes, traits,
and value. This organization divide large diversified market of customer in small group by
homogeneous characteristics and choose the target segments that expectations and needs
match the organization capabilities and resources. The target market of Commonwealth bank
choose segments depends on the characteristics of segments and resources of organization’s
growth objectives and capabilities. The target market of Commonwealth bank are potential
and present customers that divided in the measurable segments. Profile of Commonwealth
bank customers include factor that considered in a decision making of purchase and known as
a criteria of buying. This organization is ramping efforts to promote digital wallet as buyers

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has entered in a Westfield centre of shopping and send refers from retailers on smartphone
(Giovanis, Binioris, & Polychronopoulos, 2012).
Service performance analysis
This is the best approach to segmenting in a market of bank as value to segments of
customers and progression by life cycle relation of customers. The service performance
analysis of commonwealth bank altered by varying the mix elements. Commonwealth bank
marketing mix include product, pricing, promotion, place, physical evidence, people, and
process (Kang, Lee, & Lee (2012).
Place/distribution
This organization make important decision to develop plan of distribution. This
include available product to targeted customers by channels, partner of distribution to fill the
needs of customers. The distribution of services of commonwealth bank are indirect and
direct. The strategy of distribution is adopted by the many number of middleman like
retailers, wholesalers, etc. This organization has global presence to cater overall financial
requirements of customers. Commonwealth bank has retail banks in Indonesia (PT Bank
Commonwealth), China (Hangzhou City Commercial Bank and Jinan City Commercial
Bank) and New Zealand (ASB Bank). This organization has branch in London, New York
city, Singapore, Hong Kong, Tokyo, Auckland, and Mumbai. The operations of life insurance
are owned by New Zealand bank (Mortimer, Neale, & Dunphy 2015).
It has joint venture in business of joint venture in Vietnam (Bao Minh CMG), China
(China life CMG), and Indonesia (Astra CMG). This organization initiated by state funds
management business in the Fiji, Hong Kong, Singapore, Indonesia, London, Indonesia, and
China. Offices representative in Shanghai, Beijing, Hanoi, and Bangalore. Place of
Commonwealth bank plays an important role in offerings of tangibilizing services. This
organization offers offer service at quality level that is perceived by customer in form of
delivery – interiors, location appeal, ambience, etc. Organization provide excellent tangible in
form of place and interior that is important for appealing to segments of customers.
Commonwealth bank is providing very attractive tangibles in form of its exteriors, locations,
and interiors (Chaouali, Yahia, & Souiden 2016).
Promotions
Commonwealth bank uses many channels of media to promote products. This
organization uses traditional media that include an advertisement on radio, television. This is

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very effective and beneficial for the organization as holds large reach and ability to retain and
attract a high number of people. This organization uses social media advertising that is
beneficial and cheaper because of the increase use of internet. This organization advertises on
many social media platform like You Tube, Twitter, and Facebook. These all have high
monthly uses. This organization has more than one hundred thousand like and customers
follow on these pages that are exposed to recently content uploaded by Commonwealth bank.
Commonwealth bank has personal selling with a high sales force to upsurge presence in retail
stores. Organization uses a percentage of sales system to determine the promotions budget for
a year (Ojo-Agbodu, & Omah 2012).
Organization hired influencers on social media like bloggers or popular stars of
movie/TV and consists them in advertisements. They post content on pages of social media to
promote Commonwealth bank. It has an advertising campaign as consistent message
provided to customers in all platforms of media. This support organization to increase
awareness of brand in the minds of customers. Commonwealth bank undergo with many
digital marketing technique to increase the online traffic on website. These are advertisement
on banner, blog, and search engine optimization. Organization make social media posts that
are relevant to target audience. This support to encourage action by customers like sharing
posts with friends or leaving feedback in comments form. It helps organization to refer the
latest trend on social media like memes, hashtags, and so on. It collect data on customers and
send them messages by SMS, email that support to repetitive purchase by customers (Ogbuji,
Onuoha, & Izogo 2012).
Recommendation for place/distribution
Mortar distribution network, traditional brick, online distribution, and combination of
both. Many distributor like Amazon are available if strategy of online distribution is chosen
by the organization. Organization can develop online website to sell product. In today’s time
customers are modern as give importance and priority to easy availability and convenience.
The right channels of distribution requires for commonwealth bank to sustainable growth. For
this organization should consider the characteristics of product. This involve many
middlemen for distribution of perishable goods that will not a right decision if the product is
perishable. Dynamics of market, preferences of customers, own capabilities and resources.
Customers place high level importance to personalised facilities and prefer shopping from
traditional stores in place of online channels and organization has enough resources to open
its stores. The distribution strategies of rivals also required to be studied.

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Analysis of cost-benefit of each channel and comparison with individual resources
and abilities can help commonwealth bank to establish an effective plan of distribution.
Commonwealth bank should open its shop on media. This will support the organization to
generate more sales. Social media pages and online shop should be integrated to deliver
accessible and easy navigation to users. Organization should focus on to improve online
website that support it to become more friendly for users and easy for use. Organization
should also ensure that it sell its products to large number of retailers by personal selling. The
large number of retailers has grown in past years and attract a good number of customers.
This organization should ensure that increases its sales regularly. Commonwealth bank
should open operated retail stores that offers all products. This would help the organization to
save costs from the margins of wholesaler and retailers.
Recommendation for analysis of market
Marketing development strategy of Commonwealth bank needs a comprehensive
analysis of market. This can be completed by qualitatively and quantitatively assessing the
analysis of market. Organization should obtain the market survey that support management to
identify the emerging opportunities by exposing the threats and support to relate the
organization main weakness and strengths. Organization should use below steps for analysis
of the market.
Analysis of market size
Organization should evaluate potential of market that support to determine the volume
size. This include consumers and ruminate upper demand limit. This will support the
organization to contain pointers like total turnover and realised sales. Organization should
take information from many sources to determine the size of market like financial data of
industry main players, customer’s surveys, data of government, and published report of
industry and business association data.
Analysis of market trend
This is very important to analyse the emerging trends of market as environmental
turbulence is high. Organization should use many trend analysis techniques like risk analysis,
marketing mix modeling, customer’s analysis, and choice modelling. Organization should
monitor political, regulatory, legal, economic, and social changes as all play an important role
to shape the market trends. Organization should extrapolate historical data to determine the
growth rate of market. This will support the organization to determine the current lifecycle

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stage of industry. Organization should use Porter’s five force framework to determine
profitability of market. The low power of supplier will positively influence the profitability
and support to hold a good position in the negotiation process with suppliers.
Conclusion
This paper discussed about the Commonwealth bank. It market share in the Australia.
This organization uses many strategies to attract the large number of customers from the
market. It target all types of customers. Commonwealth bank regularly deliver many services
to customers to target the large number of market. Target market of organization includes all
segmentation of market as all deals with flow of cash. At the end discussion covers the
performance analysis of services and recommendation for the future to improve effective
service.

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