Services Marketing Report: Analysis of NAB's Marketing Strategies

This report delves into the services marketing strategies employed by National Australia Bank (NAB). It begins with an executive summary and introduction, followed by an overview of NAB's background. The report then analyzes NAB's market segmentation and positioning strategies, examining how the bank targets and positions itself within the market. A key focus is the application of the service marketing mix, detailing product, price, place, promotion, physical evidence, people, and process elements. The report further explores NAB's communication strategies, customer service orientation, and the design of customer service experiences, including strategies for managing service capacities and handling customer complaints. Finally, it addresses contemporary issues in consumer attitudes towards service organizations, offering a comprehensive understanding of NAB's marketing approaches.

Services Marketing

Executive summary
The following report is based on service marketing that is used by businesses in order to
make effectiveness relationship with customer and other components of marketplace. In this
company has managed its good and services that is offered within the market so as to make
uniqueness and creativity within the production. It includes market segmentation and positioning
along with service marketing mix of service organisation. In addition communication strategy is
developed, customer service orientation that assist to develop strategies in order to design
customer satisfaction.

Table of Contents
Executive summary..........................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Service organisation Background...............................................................................................1
Market segmentation and positioning of the service organisation..............................................2
Service marketing mix for selected service organisation............................................................3
Communication strategies for service organisation....................................................................4
Customer service orientation for selected service organisation..................................................5
Designing customer service design for managing service capacities.........................................6
Strategies for designing customer satisfaction and handling complaints for selected service
organisation.................................................................................................................................7
Contemporary issues in consumer attitude for service organisation...........................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The service marketing is dependent on suitable relationship that is addressed in between
business and its customer. It is used by the business in order to characterised different services
such as heterogeneity, intangibility, inseparability and perish-ability (Abbu and Gopalakrishna,
2019). It is being used to develop large customer base and in this long term sustainability is
attained in easiest mode. It is basically a specialize branch that deals with different kind of
services through which business compared strategies with marketing of physical goods. The
following report is based on NAB (National Australia Bank) that is largest financial institution in
terms of earning, customer and market capitalisation within Australia. It was founded in 1982 as
a National commercial banking corporation of Australia limited and having a headquartered in
700 Bourke Street Docklands, Melbourne, Australia. The report consist of organisation
background, market segmentation and positioning, service marketing mix, communication
strategies, customer service orientation, designing customer service design, strategies for
designing customer satisfaction and contemporary issues in consumer attitude for service
organisation.
MAIN BODY
Service organisation Background
NAB it is largest bank in all over the world as in term of market capitalisation and having
52nd rank in terms of total assets in year 2019. It was formed as National Commercial Banking
Corporation of Australia Limited as by making merger with Commercial banking company of
Sydney and National bank of Australasia and then the resultant company is known as National
Australia Bank Limited. The bank serve different products such as business banking, consumer
banking, insurance, wealth management and wholesale banking (Bowman, 2019). The NAB
bank having its representative offices at various places such as Beijing, Chicago, Dallas, San
Francisco, Shanghai, New Delhi, Houston and many other places as well. In 1987 NAB bought
Northern bank and Clydesdale bank from midland bank and after that rebranded by changing its
logo and in addition in 1990, bought Yorkshire bank as well. NAB also make acquisition with
Bank of New Zealand and after this its market share is increases with 26% in that market and
after some period of time or in 1990 NAB closes its offices from Dallas, Houston, San Francisco,
Atlanta and Chicago. On the basis of its selective strategy NAB always maintain focus towards
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domestic market and also get listed in US subsidiary as Great Western Bank in New York bank
exchange. In 2015 May, NAB demerge with Yorkshire Bank and Clydesdale in UK as from the
initial public offering. NAB is the biggest user of Teradata and Siebel CRM system along with
this also receives recognition in early adopter and be a leader as by broader its focus on cross-
selling.
Market segmentation and positioning of the service organisation
The market segmentation and positioning is a marketing strategy that is used by NAB in
order to make effective utilisation of all the required resources and components so that
productive outcome is attained with adequacy (Eletxigerra, Barrutia and Echebarria, 2018). It is a
framework that is used to simplify overall process of marketing along with this attractive aspects
is identifies that make profitable alteration in business processing. NAB embarked marketing
campaigns as in support of constructing reposition as Australia's honest bank. The market
segmentation and positioning of NAB is as explained below as:
Market segmentation: NAB offered enticing discount and financial investment to its
customers and it is of to attract mortgage. These services are provided to all the bank account
holders who has enlisting them in CommBank, Westpac, ANZ and it is based on behavioural and
age segmentation as it is driven by the social influence. The bank also uses digital avenue as
from this they have make social media performer in support of TV advertisement and YouTube
series. The bank is much desperate about to convince the people as in order to develop trust,
effective relationship and in this there is significant changes in term of user is increases with
20%.
Market positioning: NAB has maintain higher position within the market as they have
promised to cut down bank fees and also pays mortgage fees to those who didn't switch the bank
and promise to not pass as with the hike of interest rate that is announced by RBA. In order to
make effective relation with customer NAB perform market research and from their analyse the
level of dissatisfaction within the consumer about Australian banking institution (Hollebeek,
2018). In this NAB motivate the bank-like so that it is used to create public ploys series that is
used to create different point so as from corrupt competition. On the other hand NAB also be
restricted in terms of rules and regulation and doesn't create funny sterile.
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Service marketing mix for selected service organisation
The marketing mix is a strategy or framework that is developed in order to maintain and
develop larger and potential customer base. It is processed that is used to develop certain set of
action and tactics through which better promotion is performed in sustained manner. It is
basically used to promote offered product and services and in context to NAB it is as explained
below as:
Product: NAB is founded in 1982 and it is biggest financial institution of Australia and
the bank also get compete in terms to its customer base, market and earning capitalisation. As per
comparison to asset NAB is ranked 41st position in international market the product that is
offered by bank is related to personal and business ranking services (Kumar, Dash, and
Malhotra, 2018). The bank has around 7,00,000 clients those run its business through banking
and also have around 3 million customers those uses banking services. NAB launch Ubank
services that directly manages bank trading system and it has about 1,00,000 number of
customers along with this NAB also deal in foreign exchange, project finance, derivatives and
capital market.
Price: National Australia bank provides premium services to its customers as its shelter is
also be quite huge along with this bank offer great services at strategical and economic prices.
The bank also deal a lot of amount from its business clients thus in this its customer save enough
deposit in order to sustain target. The bank get commission in terms of its product as it is offered
by manage better opportunities in efficient manner.
Place: NAB is following effective distribution strategy as it is the most approachable
bank along with this manages its working practices in New Zealand and Australia. The bank also
enjoys its presence all across the globe and in this NAB also having wholesale division in New
York, HongKong, London, Singapore, Tokya and Shanghai offices as well.
Promotion: It includes the promotional strategy that is implemented by the NAB in terms
of marketing strategy. In this the primary basis is about audience as bank offer product at
different regions and it is dependent on popularity. In this NAB perform “The break up”
campaign and with this make huge success in social media as it consist of integrated marketing
in which different communication medium is selected (Ng and Vargo, 2018). Thus NAB favour
with $5 million that is earned in single day resolve 80% enquires of loans, 50% credit card
application and more than 1,00,000 visit on blog.
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Physical evidence: It is define in terms of integrity of awards and accolades that is
achieved by bank. The NAB has mentioned all detailing and share that with its potential
customers. In this NAB also prints brochure and pamphlets so that clear and direct information is
transmitted to its customers.
People: It includes an individual who clearly defines success of NAB and in this the
overall management is based on planers and visionaries. In this the middle level management
plays vital responsibilities as they have execute and implement all the required planning through
which effective decision making is processed (Ramli, 2019). In addition ground staff is the one
who has followed all the rules and regulation and make sure that working is processed within
adequate time period.
Process: It is basically a procedure which is used by the business as in order to enhance
its market range. It represent bank outlet through which easy access of information is addressed
by the employees. It also refer to different policies that is developed in order to manage and
operate effective customer services accordingly.
Communication strategies for service organisation
The communication strategy is the one that is used by the business in order to transfer its
information within the particular marketplace so that large amount of profit is attained in
significant manner. It is more essential for all the business to make effective and efficient
strategy through which workplace working is promoted successfully. NAB develop and design
effective planning in order to create customer data and its insight within which customer
preference is measured so as to overseas profitability. In this adequate relevancy is analysed
through which right things is induced within right period of time.
 NAB works to deliver personalised working and for that used to create better customer
experience and for that perform consumer marketing strategy. The bank develops the
strategy which involve data insights are help to guide customers with both good and bad
experiences at certain period of time.
 NAB uses data-driven engagement strategy that involve customer reach in relation to
banking accounts, home loan in order to develop cash flow (Perreault, 2018). It has
powerful impact over driven check in by which all the particular need and demand of
customers is fulfilled.
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 The bank is being working as per customer centric approach in which certain control on
customers is maintained. In addition effective understanding about the marketing going in
acknowledged. NAB works with the vision in which they help Australians in order to
make suitable control on its money and beyond that as well.
 The NAB is being shifted towards technology creation as in this data is created in
personalised manner and in this customer experience is enlarged in sustained mode. In
this they have also recognised customer's conversation and provide financial solutions
(Powell and Osborne, 2020).
 The bank send operational questions to the customer's and it is about credit, debit cards,
loan statements etc. In this friendly surround is developed in which communication
distance is increases.
 The brand manager must be more vocal and welcome the customer's who make their visit
in bank. It is used to ensure that long term success and development is addressed in terms
of customer's data protection.
Customer service orientation for selected service organisation
The customer service orientation is an essential prospect within the business as it is used
to accomplish customer satisfaction by which working insight is managed as by controlling
satisfaction and expectations of customer's. In this customer satisfaction is monitored by the
business so that certain level of improvements in induced with perfection and it make easier for
business while making success and development (NAB Marketing Strategy Analysed, 2015). It is
crucial for the NAB as in this deep knowledge and information is transferred as by asking,
questioning, clarifying the unclear aspect so that appropriate respond is managed. It is used by
NAB in order to display positive behaviour, attitude and attribute so that sustained awareness is
created. In this willingness of business is managed so as to respond as per customer's
satisfaction, requirement and experience.
 In order to gain profit from campaign round NAB perform advertisement for both
business ranking or for personal division. NAB promotes customer centric working and
in support of it deliver high range of campaigns. Bank worked on to promote low interest
loan to its customer's and it is performed by making partnership with Good Shepherd
Micro-finance.
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 In support of advertisement 13.31% of promotional activity is performed by NAB and in
this they have promote 0% balance that is transferred in 12 months. It is replaced from
“freeze interest” through which 0% interest is offered in 15 month.
 The NAB also starts trialling advanced technologies and called it as “virtual agents” in
which customer request is handle online. In this online assessment is offered to
customer's so that appropriate help is provided to customer's.
Designing customer service design for managing service capacities
The service design is a managerial process that is controlled by the business as in order to
make suitable alteration within working constraint so that favourable outcome is conceived in
successful mode (Rather, 2019). Is is basically a planning that is used by NAB in order to make
organised ending in terms of utilisation of resources such as people, processes, props etc. as it
directly related to the improvement in terms of customer's experience. The service level
management is a procedure through which customer satisfaction in relation to efficient service is
processed.
NAB is worked with the vision to amplify focus on customer that assist to be a better
bank. The bank become the most leading as its ability to develop more trust towards customer is
increases. NAB is always be committed towards enhancement of passion, be bold, win
togetherness, perform right things and respect others. In this bank has supported its actions with
the support of balance sheet through which they have maintain negotiate focus on risk generation
or technology balance. The performance review of business is being managed with concern of
objectives so that planning is underpinned so that long term goals is accomplish in timely basis.
The bank is being announced acceleration within strategy development and it is induced by
managing performance. To maintain sustain growth NAB develop three year plan so that fastest
services is delivered to customer's such as technology, regulation and competitors in which
significant changes is measured with effectiveness.
NAB works with the purpose to be bold and specific in terms of services and also provide
exceptional services to its customer's. In this objectives of NAB is to increases the cost to income
ratio towards 35% and maintain its return to equity so that advanced engagement towards
employee is processed (Solimun and Fernandes, 2018). These objectives are achieved by
matching up with emerging trends by adapting growth opportunities in simpler and faster mode.
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In this service capacity is increases as trust is the foundation of NAB and in this quality customer
services and its expectations is achieved.
Strategies for designing customer satisfaction and handling complaints for selected service
organisation
To manage customer satisfaction is the most basic aspect for NAB as in this long term
sustainability is attained in simplified mode. In this strategy formulation is required within which
all different handling is analysed in appropriate mode that is affected with the customer
complaints. In this NAB develop some strategy in order to handle complaints and it is as
explained below as: Stay calm: It is required that whenever customer's came with complaint then bank
members must consider that as a complaint not as issue. In addition balance confrontation
is manages so that all emotions are dealt with suitability. In this workers must be
defensive instead of attacked as it reflect professionalism and helps to get over from all
situation with easiness. Listen well: In this workers of NAB must have behave properly and maintain patience so
that customer flow is managed. In this aggressiveness of customer's is managed with
calmness so that redundancy and complex situation is controlled (Vargo, and Lusch,
2018). In addition the manager of NAB also tries to relate themselves and customer's
with facts. For this they must have asked certain questions so that genuine conversation is
processed and it also promote development of effective relationship with customer's.
 Acknowledge the issue: In this employees of NAB must have hear the complaint of
customer properly and then analyse the level of mistake. In this level of misunderstanding
that is created due to improper valuing and transformation of knowledge is resolved. In
order to resolve an issue bank employee must have discuss the issue with complainer.
NAB employee make defence and try to convince customer's by providing adequate
information.
Contemporary issues in consumer attitude for service organisation
The consumer attitude has been change as per the advanced level of services due to
which formalised changes is required to added by the business so that sustained level of profit is
attain for longer period of time. In context to contemporary issues it is generated due to usage of
technologies and social media platform as in this huge amount of data is enrich customer's
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attraction. The effective interaction with the customers is used to transfer efficient power and it
also shape up image of NAB bank in competitive marketplace. The engagement of bank towards
different activities is required as it is used to reduces the probability of risk generation. In
includes different practices that must be managed by NAB and it is as explained below as:
Quality: The consumer is always looking forward for quality services and they didn't get
manage in terms of quality (Zeithaml, 2018). For this NAB must have ensure that effective
quality services is circulated within the marketplace. It is basically in the form of on time
problem solving resolution in which all the issues of customer are considerate in first meet so
that productive change is managed. In this business functioning and operation is controlled so
that moderate amount of changes is analysed successfully.
Application: As the time passes banking services is being managed through its own
application. In this balanced level of services or on-time services is circulated for customers by
which easy and long term accessibility is measured. Sometime due to insufficiency of network
complex condition is generated and to resolve this situation NBA must increases its network
tower so that proper services is flowed for customer's.
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CONCLUSION
It has been concluded from the above report that service marketing is being used by the
business as in order to make effective communication within the market in which clear
information in transferred so as to grab attention of large potential customer's. In this market
segmentation and positioning is addressed by the business in order better clarity about the target
is attained so that productive changes is implemented. In addition service marketing mix is
performed that provide sustain information about competitive marketplace along with this
communication strategies is developed through which effective relationship with customer is
analysed. Furthermore, customer service orientation is attain in which suitable designing of
customer service is managed. At the end, business design strategies for customer satisfaction
along with the management of contemporary issues in service organisation.
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