Commonwealth Bank Marketing Opportunities Evaluation: BSBMKG501 Report

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BSBMKG501 Identify And Evaluate
Marketing Opportunities
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Contents
Task 1: Written Questions........................................................................................................................... 3
1. Identify and outline five items of regulations and laws that apply to the marketing ndustry in
Australia................................................................................................................................................... 3
2. Briefly describe the importance for marketers to abide by the provisions of the Australian
Marketing Institute Code of Professional Conduct...................................................................................3
3. Describe one aspect of this Code that is important in relation to identifying marketing
opportunities............................................................................................................................................ 4
4. Briefly describe each of the following terms in relation to marketing opportunities: market
penetration, market development, product development and diversification...........................................4
5. Explain each of the phases of the product life cycle........................................................................4
6. Explain what the marketing mix is and when it is identified..............................................................5
7. Outline the steps in the four Marketing process...............................................................................5
8. Describe four statistical methods and/or forecasting techniques that can be used to evaluate
marketing opportunities........................................................................................................................... 5
9. Briefly describe one method for forecasting market growth rate......................................................6
10. Define the term ‘return on investment’ and outline how it is calculated........................................6
Task 2: Project - Identify and investigate marketing opportunities...............................................................7
Question 1............................................................................................................................................... 7
Question 2............................................................................................................................................... 7
Question 3............................................................................................................................................. 10
Task 3: Project- Evaluate and Report Marketing Opportunities.................................................................13
Question 1............................................................................................................................................. 13
References................................................................................................................................................ 15
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Task 1: Written Questions
1. Identify and outline five items of regulations and laws that apply to the
marketing ndustry in Australia.
An organization when opearting in marketing indusry in Australia, it is required to comply
certain regulations, which includes:
 Advertising: The companies must ensure that their advertisements are not
misleadiung or deceptive and also they must not be involved in bait
advertisement.
 Competitions: The companise must comply and follow the provisions of
Australian Competition Law in order to ensure that they do not participate in anti-
competition activities.
 Pricing Regulations: When the marketing companies advertise or promote their
product or services, it is highky significant that they follow the pricing regulations
applicable and display the price accurately and clearly (Australian Government,
2018).
 Direct Marketing: Direct marketing is a type of marketing in which the
companies sell tehir porducts and serv ices directly to customers instead of
involving any retailers in the process. In Australia, there are certain laws
established for direct marketing which must be complied with.
 Privacy: The Privacy Act, 1988 is an Act which promotes and protects the
privacy of individuals in Australia and the marketing companies must ensure that
the data collected from inidviduals is used only in the way specified in the Act
and any misuse is prohibited (Lees, et.al., 2016).
2. Briefly describe the importance for marketers to abide by the provisions of
the Australian Marketing Institute Code of Professional Conduct.
The Australia Marketing Institute is a preeminent professional association for
marketing companies in Australia. It lays public statement of behaviour and values
expected from every individual. It is imporatnt to comply the code as it ensures high
standard of corporate and individual behaviour from each member. It ensures
confidence of public in organization and provides assistance and clarification. It helps
the company in providing quality services to the clients.
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3. Describe one aspect of this Code that is important in relation to identifying
marketing opportunities.
The Code of Professional Conduct as established by this institute must be complied with
by all the marketers as it helps in identifying the marketing opportunities. The
marketering companies are able to perform their activities ethically, honestly and
competently. The customers and other stakeholders are able to rely on the company and
this ensures that the company is opearting in good faith.
4. Briefly describe each of the following terms in relation to marketing
opportunities: market penetration, market development, product
development and diversification.
 Market Penetration: It refers to the successful selling of a product or service in a
prticular market and is measured by the amount of sakles volume of existing
goods or services as compared to total target market.
 Market Development: It is a growth startegy in which new market segments are
identified and developed for existing products and services.
 Product Development: It includes the series of steps that includes
conceptualisation, development, design and marketing of a product newly
created. It is a complete process followed to bring a porduct in market.
 Diversification: It is a process in which the capital is allocated in a way that the
exposure to any partcular asset or risk is reduced.
5. Explain each of the phases of the product life cycle
There are five main phases of a product life cycle. These includes
 Product Development: This is a stage whrre the company has an idea to
develop a new product. The sales of compnay in this stage are zero and the cost
of investment increases.
 Introduction: This is a stage in which the porduct is introduced to market and
the profits in this stage are very low due to hevay expenses of the product
introduction.
 Growth: It is a stage in which the product is accepted in market and it leads to
incraesing profits.
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 Maturity: This is a stage in which the growth of sales slows down as the product
is accepted by the market. The profits, here, either stay at level or decline as the
marketing outlays are incraesed to avoid competition.
 Decline: This is a stage where sales drop and profits fall-off.
6. Explain what the marketing mix is and when it is identified.
The term marketing mix refers to the tactics or set of actions which are used by a
company to promote its product or brand in the market. The marketing mix must be
identified when the porduct is planned to be brought into the market. It is defined by four
P’s meaning product, price, place and promotion.
7. Outline the steps in the four Marketing process
The steps followed in the marketing process includes:
 Discovery: It is about carrying a research on market, customers and
competitors.
 Strategy: In this stage, the information collected in previous stage is used to
develop marketing strategy and take decisions.
 Implemention: This is a step in which the stratrgy is put into action. Such
implementation must be target-centered and cost-effective.
 Measurnment: This is a stage in which the marketers take a clos look on the
outcomes of marketing stratrgies to take further decisions.
8. Describe four statistical methods and/or forecasting techniques that can be
used to evaluate marketing opportunities.
The four statistical methods and/or forecasting techniques that can be used to evaluate
marketing opportunities are as follows:
 The Delphi Technique: In this technique, a series of questionnaire is responded
by a group of field experts and these experts are kept unaware and apart from
each other. Such questionnaire continues until the researchers have a narrow
opinion.
 Scenario Writing to Generate different outcomes: In this technique, the
forecaster generates various outcomes based on different criteria. Then, the
most likely outcome is decided by the decision maker (Young, 2019).
 The Subjective Forecasting Approach: This is a technique in which the
forecasters predict outcomes based on their feelings and thoughts.
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 Time-series Forecasting: It is a quantitative technique in which the forecaster
measures the data collected over time to identify future trends.
9. Briefly describe one method for forecasting market growth rate.
The Straight Line Method is the most common, simplest and easy-to-follow method of
forecasting. In this method, historical figures and trends are used by a financial analyst
to predict future growth of revenue (Lees, et.al., 2016).
10. Define the term ‘return on investment’ and outline how it is calculated
Return on Investment (ROI) is a method of measuring the performance by evaluating the
efficiency of an investment or comparing the efficiency with a number of investments
(Chen, 2019).
The formula to calculate return on investment is
ROI = (Gain from Investment - Cost of Investment) / Cost of Investment
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Task 2: Project - Identify and investigate marketing opportunities
The organization selected for identifying and investigating marketing opportunities is
Commonwealth Bank of Australia.
Question 1
The list of potential marketing opportunities available for Commonwealth Bank includes
 Trends in Customer Behaviour: With the increasing change in the behaviour of
customers, the bank has the opportunity to diversify its products and services and
introduce new revenue streams. This will help the company in attracting more
customers.
 Development in Environmental Policies: All the players in the industry can enjoy a
level playing field as new environmental policies are creating an opportunity. The
company Commonwealth Bank can use this opportunity to drive home its advantage in
new technology and gain more market share (Moradi-Motlagh, et.al., 2015).
 Green Drive by Government: This provides an opportunity to the company as the
products of the bank may be purchased by federal and state government contractors.
 The low rate of Inflation: This brings more stability in the market and therefore enables
the bank to provide funds to the customers at a lower rate of interest, thereby attracting
more customers.
 Stable free cash Flow: This provides the company with the opportunity to invest in
adjacent product segments. The company has more cash in the bank which can be
used to invest in new technologies and products. Therefore, this opens a window of
opportunity for the bank (Shaikh, and Karjaluoto, 2015).
 Use Social Media: This is a powerful tool to provide access to a large number of
customers at the same time. However, it is very competitive and therefore it is important
to be strategic with time, money and content.
 Customization and Personalization: With the increased focus on customers
experience, the company may use the potential of advanced data analytics to provide
customers with more personalized experience and help the customers by providing a
personal response.
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Question 2
Potential Marketing Opportunities
Basis Customization and
Personalization
Trends in Customer
Behaviour
Use Social Media
Alignment with the
objectives of the
company
The objective of the
company is to ensure
that customers are
satisfied. This will
help in ensuring
satisfied customers.
The objective of the
company is to
provide customers
with products and
services according to
their needs and
wants. These trends
can be used as a
platform of idea
generation to provide
customers with the
best products and
services.
The objective of the
company is to
associate as many
customers as
possible with the
company and the
social media
platforms shall
ensure that more and
more customers are
associated with the
company in long-run.
Target Customers The target customers
shall be below the
age of 30 and above
the age of 50.
Target customers are
above the age of 20
and below 60.
The target customers
are the customers
active on social
media.
The overall benefit
to business
This will increase
customer loyalty and
enhance the
customer base.
This will increase the
profits of the
company
(Hanafizadeh, et.al.,
2014).
This can be used as
a marketing tool and
it will enhance the
goodwill of the
company and
increase revenue in
long-run.
Anticipated effect
on sales,
profitability, growth
and market share
This will increase the
sales, profitability and
market share of the
company and
enhance the growth.
This may have both
positive and negative
impacts on sales,
profitability, growth
and market share.
This will increase the
sales, profitability and
market share of the
company and
enhance the growth.
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Estimated effect on
ROI
Increase in ROI by
10%
Increase in ROI by
15%
Increase in ROI by
20%
Potential
Competitors
Westpac ANZ NAB
Impact of changing
economic condition
The customers will
prefer customization
(Baker, 2014).
This will increase the
tendency of change
in trends
Changing economic
conditions will have
no impact on the use
of social media.
Technological
factors
Better the available
technology, better the
personalization
Technology can be
used to study and
analyze such trends
High use of internet
and technological
devices
Legal issues The required
personalized features
may not be allowed
by laws
This may lead to
competitive practices.
The content used
must be in
compliance of the
applicable laws.
Risks Unsatisfied
customers can lead
to a bad image of the
company
It is difficult to study
and follow the trends
(McDonald, and
Wilson, 2016)
Any mistake in the
content used by the
company can be
shared with other
customers directly.
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Question 3
Introduction
Marketing is a business process in which the organization aims to build a relationship with its
existing and potential customers. It is a premier component of business management and its
central focus is on customers. This report is presenting a marketing plan for Commonwealth
Bank of Austalia and to take advantage of available marketing opportunities and appropriate
recommendations have also been made.
Overview of the Company
The Commonwealth Bank of Australia is a multinational bank and is operating in New Zealand,
United States, Asia, and the United Kingdom. The company provides its customers with various
financial services including business and institutional banking, investment, insurance, funds
management, superannuation, and broking services. It is the largest bank in Australia and is
one of the ‘big four’ Australian bank (Westwood, 2013). The company is currently operating
through more than 1100 branches throughout the globe and the number of employees
employed by the company is 51,800. The company was incorporated in 1911 as a government
company and eventually converted into a public company in 1991.
Objectives of the company
The main objective of the company is to provide financial products and services to the
customers and help them in managing and building wealth.
Marketing Plan
Mission and Vision
The vision of commonwealth bank is to excel at providing the customers with products and
services according to their needs on basis of latest market trends and associate with them using
social media (Strauss and Frost, 2016).
Goals and Objective
The objective of organisation is to increase:
 Market share by 5%
 Profits by 10%
 Number of customers by 8%
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In the next 12 months.
Target Market Segmentation
The target market of the company shall be segmented based on the following:
 Age: 15-30, 31-49, 50 and above
 Income Level: Lower, Middle, and Upper
4 P’s
Product: The company shall offer the customers with personalized products. These may
include availability of loan online according to the needs of customers, repayment options,
choices in types of credit and debit cards and such others.
Promotion: The company aims to use social media as a key platform for ist promotional
activities. The main focus shall be on the expectation of customers and the content used to
attract customers.
Place: The bank is aiming to provide customers throughout the globe using internet banking
options (Moradi-Motlagh, et.al., 2015).
Pricing: the company shall attract customers with high-interest rates on deposits and
minimizing the rates on loans.
Competitors
The main competitors of the company are Westpac, ANZ, and NAB.
Budget
Number Particulars Amount (AUS $)
1. Advertisement Cost 23000
2. Social Media Marketing 20000
3. Direct Promotions 50000
4. Campaigning 30000
5. Maintenance Cost 2000
Total 125000
Action Plan
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Activities Time Duration
Conduct market Research 3 months
Identify the required products
and services
1 month
Designing products and
services
3 months
Advertisement Campaign
(both online and offline)
4 months
Monitoring the outcome 1 month
Gantt Chart
Activities Months
1 2 3 4 5 6 7 8 9 10 11 12
Conduct
market
Research
Identify the
required
products and
services
Designing
products and
services
Advertisement
Campaign
(both online
and offline)
Monitoring the
outcome
Recommendations
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