Analysis of Westpac's Marketing Systems in the Banking Industry

This report provides an analysis of Westpac Banking Corporation's marketing systems, focusing on the impact of the Banking Royal Commission on its operations. The report examines the challenges Westpac faces, including compromised exchange logics, disrupted business flows, weakened networks, and organizational principle failures. It explores how issues such as fraudulent account creation, mortgage broker misconduct, and data breaches have affected the bank's marketing strategies and customer relations. The analysis applies marketing systems theory, discussing the effects on exchange logics, flows, roles, networks, organizing principles, and assortments. The report concludes by recommending strategies for Westpac to avoid future scams, including improved transaction monitoring, authentication processes, and customer awareness programs to restore trust and improve its marketing effectiveness within the financial services industry.

Running head: MARKETING SYSTEMS THEORY OF WESTPAC
MARKETING SYSTEMS THEORY OF WESTPAC
Name of the Student
Name of the University
Author note

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MARKETING SYSTEMS THEORY OF WESTPAC
Introduction
Westpac Banking Corporation is a bank in Australia that provides economic services to
the customers. The headquarters were established in the year 1982 and is located in Sydney,
Australia. It was created when the two banks namely the Bank of New South Wales and the
Commercial Bank of Australia merged together and created a single banking organization. It is
the fourth largest bank in the country of Australia.
Problems in Marketing Activities
It was the question on the integrity of the company, Westpac who are being marked in the
Banking Royal Commission has already sacked some of the employees of their service as they
have set up accounts on people’s name without the proper knowledge of the customer’s identity
and without exact credentials. This was done to achieve the bonus between the years 2013-2016
(Hutchens 2018). The staffs were in simulation to show deposit and withdrawal and that the
accounts were active
In the bank, there are a number of brokers for mortgage who provide the bank with all
sorts of fake knowledge and information at the time of submission of the home loan applications
like the fake account credentials or documents relation to the valid information which is related
to the foreign incomes, employment and accounts in the banking accounts (Tanzer,
Commissioner and Tanzer 2016). Westpac has an institutional business which did a blunder by
sending several statements of account serially. It did a mistake out of which a total number of
44,992 statements of clients from corporates were sent to the other cardholders’ address (Lees,
Winchester and De Silva 2016).
The marketing systems theory that are related to the Westpac and are affected by the
recent Banking Royal Commission are as follows,

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Exchange logics
The exchange of logistics in the Westpac has been damaged after it was involved in the
scam which was announced by Banking Royal Commission. The company has compromised
with it suppliers and the buyers who existed in the external environment (McDONALD 2016).
The logistics flow has been hampered and therefore the company is facing the financial crisis
during the recent times. This has initially decreased the level of business by reducing the rate of
profit that came through the exchange of logics.
Flows roles
The business flows open ended structure and after it has been involved in Banking Royal
Commission after which the flow has become reluctant and the business model has attained a
slow pace. The flow has changed due to the rough impression created by all the blunders in the
work place and works assigned (Harmeling et al. 2017). The roles have changed within the
company. As per, the marketing systems theory the roles that the people who were in the
possession of authority committed the discrepancies.
Network
The networking seems to be the most important factor of the marketing in a company.
The network should be strong and the flow of information should be continuous and concrete in
the networking channels. Nowadays companies are solely depends on the factors of networking.
But after this incident, Westpac has lost many of the external stakeholders who have earlier
proved themselves to be some of the greatest networks ever in the marketing system of the
company (Harmeling et al. 2017). The suppliers seems to be so abrupt of increasing their prices
and even they show less interest towards taking orders from the company. This has led to a
serious problem for the company as they have not been able to speed the functions and

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operations of the company and this has resulted in harming the profits of the company (Hunt
2016).
Organising principles
It is very hard for any of the company to organise the principles in an entirely new way
(McIlroy 2017). The company is in a stage where it has to organise the principles as in, if we
look up at the performance graph of the employees, they were motivated but somehow they
could not deliver the needs and meet the requirements of the customers. Like the way, it has
mistakenly sent the statements of accounts of one customer to another which puts the company’s
goodwill at stake (Hamilton 2016). The company has redefined its principles by checking or
assessing the task being completed in the functional department. This for sure has overburdened
few of the employees but assured customers the right value and satisfaction of their tasks.
Assortments
The company has always known for its variety of producing different kinds of
investment schemes and variety of beneficial offers to attract customers (Hamilton 2016). These
are the few positive sides of the company which makes it important and valuable for the
customers to keep it on the priority list. After being involved in Banking Royal Commission it
seems lacking behind the assortments it used to have for the customers or can be said customers
do not pay so much of attention after this incident happene3d with the company (Tanzer,
Commissioner and Tanzer 2016).
Conclusion
In order to avoid scams in the future, Westpac can avoid some techniques that will be of
help. Proper authentication and monitoring of transactions is a prime factor in avoiding scams in
the banking sector. There should be a vigilant eye on the transactions that are carried by an

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individual and any unauthorized and questionable transaction should be addressed immediately.
There should be a check on the accounts of business organizations which they use to pay their
clients. If there is any discrepancy the bank should immediately work on the process of
recovering the money. Introduction of a triple layered process for transaction should be
introduced where the transaction needs the approval of three different authorities. There should
be awareness programs promoted by the bank which will make the general public and the
corporate aware about the risks that are faced by them. The awareness about the frauds will help
the customers and the bank to avoid scams in future. By applying all these techniques it can be
assured that financial frauds and scams can be avoided by the banks in future.

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References
Hamilton, A., 2016. Banking royal commission is popular, not populist. Eureka Street, 26(10),
p.48.
Harmeling, C.M., Moffett, J.W., Arnold, M.J. and Carlson, B.D., 2017. Toward a theory of
customer engagement marketing. Journal of the Academy of Marketing Science, 45(3), pp.312-
335.
Hunt, S.D., 2016. Controversy in Marketing Theory: For Reason, Realism, Truth and
Objectivity: For Reason, Realism, Truth and Objectivity. Routledge.
Hutchens, G., 2018. Banking royal commission: all you need to know–so far. The Guardian.
Lees, G., Winchester, M. and De Silva, S., 2016. Demographic product segmentation in financial
services products in Australia and New Zealand. Journal of Financial Services Marketing, 21(3),
pp.240-250.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
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McIlroy, J., 2017. Bank royal commission: Is this the last straw for Turnbull?. Green Left
Weekly, (1164), p.4.
Tanzer, G., Commissioner, A.S.I.C. and Tanzer, D.M., 2016. BANKING IN AUSTRALIA:
UNREGULATED & UNPROTECTED-PART 4.