Commonwealth Bank of Australia Overview: Marketing Strategy, Products, and Industry Impact

Commonwealth Bank of Australia Overview: Marketing Strategy, Products, and Industry Impact

You will provide an overview of this organization and specify its marketing attitude. You must also evaluate and analyze the context and settings in which this organization functions, including its industry and the macro-environmental factors influencing that industry.

Offer a concise overview of this organization and the sector in which it operates. Consider include any mission statements, value statements, or slogans that the organization use to convey its purpose in this description.  In characterizing this organization, please delineate its marketing orientation and include pertinent, precise, and factual information to verify your identification of this particular orientation. Lastly, provide a concise overview of the product(s) offered by this organization in the market. Discuss the brand's position in the organization's marketing strategy.

1. What are the company's strengths and important resources, as well as its weaknesses? What are the possibilities and challenges?
2. Clients — whom does the firm serve, and what constitutes 'normal' behavior from them?
3. Collaborators — detail the suppliers, distributors, or other partners that assist the firm in bringing its goods to market. If the firm lacks any, explain the rationale for its non-necessity.
4. Current primary rivals - who are they, and are there any prospective threats or new entries in the market?
5. Context – whatever other elements influence this organization?

Overview of the Commonwealth Bank of Australia

The Commonwealth Bank, located in Australia, operates in other Western nations with branches worldwide. It operates inside the banking sector and provides several financial services to its consumers. Their functions include resource management, providing loans to entrepreneurs to start their ventures, safeguarding funds, and offering insurance coverage to applicants (Lane & Milesi-Ferretti, 2001, pp. 286). In August 2015, Commonwealth Bank was listed as one of the most successful banks in Australia and acknowledged as the largest financial institution in the South (Herd, 2005, pages 16). Established in 1911 by the Australian government, its objective was to generate substantial profits from individuals engaged in share trading (Otchere & Chan, 2003, pages. 949; Cashdm, 1995, pp. 133).

The Commonwealth Bank employs many assertions, including "Which bank?""Determined to be distinct" to represent the individuals and reveal their essence. Recently, the slogan "Commbank can" has been used as part of an initiative to rebrand Commonwealth. Andy Lark, the marketing officer, emphasized that the bank's primary purpose is to collaborate with Australians and facilitate their progress. Considering that anything is feasible with Commbank, consumers experience satisfaction. Commonwealth Bank adheres to a stringent policy of maintaining honesty while striving to achieve good outcomes for their customers.

Each employee is responsible for their acts, and if such actions violate the company's established moral code and result in undesirable results, stringent measures will be enforced against them. Their primary objective is the client's happiness. The Commonwealth Bank has used astute marketing strategies, resulting in significant success (Peter, Olson, and Grunert, 1999, pg 123). The marketing department officials get much acclaim. Their first plan involves mobilization efforts. For 28 years, Commonwealth Bank has partnered with Cricket Australia, extending its support to both the men's and women's teams (Cravens & Piercy, 2006, pp. 45). It is projected that 25.72% of all media attention from November 1, 2014, to January 31, 2015, was generated by this operation.

The ads "Can Your Bank Provide Additional Security When Necessary" and "Who Can Assist in Sustaining Your Business Operations" garnered 20.17% and 18.13% of media attention, respectively (Cravens & Piercy, 2006, pp. 43). The media's marketing campaign is 64% successful. Their second task was to generate verbal awareness, achieving an average of 7.56%. Commbank continues to amplify their effort to guarantee their message reaches the public. Compensating television stations for broadcasting their commercials has also improved their public image (Jain & Haley, 2009, pp. 76). The establishment and upkeep of successful partnerships with other organizations can provide additional benefits to the bank. Enhances public trust in the institution and eliminates superfluous rivalry for the bank (Rust, Lemon, & Zeithaml, 2004, pg 110).  

Commonwealth Bank of Australia's marketing orientation

The strategy used by Commbank provides it with a competitive edge. Based on previous accomplishments, it has been noted that advertising broadcast between 5 am and 10 am, as well as between 6 am and 10 pm, get the most attention. Furthermore, including parents and children in the advertisements that educate them on saving encouraged them to establish savings accounts. Providing credit to individuals via loans with interest rates as low as 4.69% annually and a fixed rate of 5.42% over three years is a strategy in progress, signaling competitors about future expectations (Headey, Marks, & Wooden, 2005, pg 160). This unequivocally positions Commbank more favorably. BigDatr's analysis indicated an increase in the number of individuals borrowing money from banks between February and April of 2015.

BigDatr also forecasted that the bank will promote the use of the credit-based cards it issued starting from the fifth month until August 2015. Commbank's extensive array of services accounts for its preeminent status among Australian banks. It offers clients the opportunity to strategize their relocation and residence wherever in Australia with its outstanding loan rates (Dvornak & Kohler, 2007, pp. 117). Customers may get loans to invest and safeguard their futures. Among their many offerings, people have the option to decide whether to invest in groups. Additionally, the pension plan guarantees financial security throughout the years of unemployment associated with old age. The research indicates that the institution has the highest quantity of life insurance policies. It also provides services like financial consultation and administration of money for international investors. Commbank's insurance products extend to company owners as well as individuals.

The identity of a company constitutes its brand (Rao, Agarwal, & Dahlhoff, 2004, pg 126). The clients may connect with the company as they understand its essence. The leadership at Commbank understands that an organization's value lies in its image; therefore, they have dedicated considerable time and resources to ensure that individuals in Australia and globally have a clear understanding of the bank's offerings through their campaigns and advertisements. As a result of the successful image construction technique, Commbank has gained significant popularity in many regions, including New Zealand and Indonesia (Moon & Sharman, 2003, pp. 43). Branding cultivates trust and confidence in an organization, since customers are aware of what to anticipate from it. Positive customer-seller relationships are established by a clear image, hence enhancing product demand.

Marketing methods used by the Commonwealth Bank of Australia

Trust engenders loyalty. A significant proportion of Commbank customers exhibit loyalty due to the great services they get. The trust-based connections provide Commbank with the additional benefit of timely loan repayments. Commbank's engagement in community development by funding youth initiatives is a commendable endeavor. Contributing to society inspires younger generations to cultivate selflessness in adulthood.  

The Commonwealth Bank of Australia was designed to provide both conventional banking services and savings services. It is acknowledged as the first bank to get the Federal guarantee from the Australian government. The bank seemed to be effectively servicing Australians by expanding its services and establishing a branch in Melbourne, Australia. The bank executed its business via post office agents and amalgamated with other institutions, including Tismania. It also amalgamated with many banks to broaden trade operations, including Queensland. The bank seems to be doing well, however Chairman Robert Gibson opposed increasing the bank's credit during the Great Depression. The controversy arose from this problem, resulting in the bank facing difficulties in fulfilling consumer needs. This granted the government more authority over the bank's monetary policies.

Ultimately, it is apparent that the Commonwealth Bank exerted dominance over the other banks in Australia. It also aimed to enhance immigration programs. This prompted the bank to establish a service for information on migrants. It also established savings agencies to guarantee client satisfaction with the services provided. The bank broadened its services into other sectors, including travel and insurance. It established a corporation to provide financial services to Australians. Subsequently, the bank introduced MasterCard in addition to Visa cards to facilitate customers' access to its services, such as cash withdrawals, without the need of queuing at the bank.

Critical resources and competencies are vital for a business to achieve optimal performance.  Consequently, the Commonwealth Bank of Australia leverages its resources and capabilities for success. The bank encompasses many brands, including ASB Bank, Commonwealth Insurance, Bankwest, and Commonwealth Securities. These trademarks have contributed significantly to the substantial expansion of the bank. Furthermore, the bank operates not only in Australia but has also expanded its services to other countries, including New Zealand, the USA, the United Kingdom, and Fiji (Brailsford, Handley, and Maheswaran, 2008, pp. 75). The substantial client base, affiliation with many brands, and operations in five prominent countries are all signs of the bank's exceptional achievement. The company's outstanding success has garnered accolades from several areas. The bank was identified as one of the premier Australian firms, as per the Australian Securities Exchange.

Products provided by the Commonwealth Bank of Australia

The Commonwealth Bank of Australia is considered one of the premier banks in the Australian financial industry. The other prominent banks are Westpac, ANZ, and the National Australia Bank. The Bank primarily focuses on providing its clientele. Consequently, the bank has garnered praise and devotion from its clientele. To address client demands, the bank provides a diverse array of services, including corporate banking, global wealth management, credit cards, insurance services, consumer banking, investment banking, and more offerings. Furthermore, the services provided by the bank are expanding daily. A significant amount of the bank's earnings and profits is derived from the quality and distinctive services it provides. A significant asset of the bank is the quantity and expertise of its staff. The bank employs exceptional and highly skilled personnel, providing it with a competitive edge. The bank employs a substantial number of individuals. A recent study indicates that the bank employs more than 44,000 individuals across its many divisions. The research found that the Commonwealth Bank of Australia is among the twenty most favored employers. Furthermore, the bank is the only organization providing financial services in Australia.

Conversely, the bank has some vulnerabilities. These deficiencies have impacted the bank's performance both domestically and globally. Among the shortcomings are the conflicts mentioned about the bank. An action group established a website called 'Unhappy Banking' to undermine the bank's services (Marcolin and Abraham, 2006, pg 61). This activity by the organization influenced client loyalty towards the bank. The bank lost many clients to competing institutions, including Westpac, ANZ, and the National Australia Bank. The Moody's financial strength rating further provides an average rating for the bank.

A key determinant of an institution's success is its capacity to use available possibilities. The bank is technologically advanced. This indicates that the bank can use its available banking technology to address the intense competition. Furthermore, the bank need to use social media channels to educate individuals about the significance of banking. Consequently, the bank will attract a greater number of consumers. The bank should contemplate extending its operations to other major economies. The bank should consider extending its activities in the Asian market.

The significance of branding in the marketing strategy of Commonwealth Bank of Australia

The banking industry faces many risks. The Commonwealth Bank of Australia may encounter the risk of diminished profitability. Notwithstanding the widespread perceptions of banks generating substantial profits, they continue to have challenges in achieving favorable returns on their investments. Furthermore, if the bank does not fulfill the consumers' expectations, earnings may significantly decline. Competition is an additional element that might adversely impact the bank. Financial Technology Companies (FinTech) specialize in delivering financial services to clients using software (Weill and Woerner, 2013, pages 19). FinTech startups have significantly impacted the conventional banking system. Consequently, rivalry from these financial sectors may impact the bank's performance. Ultimately, banks are also confronted with the potential of regulatory pressure. The Commonwealth Bank of Australia must spend substantial funds to meet the increasing demands.

The Commonwealth Bank of Australia has a substantial client base. The majority of clients reside in the five countries served by the bank. The bank has the highest client base in comparison to any other bank in Australia. The primary services provided to clients by the bank include corporate banking, global wealth management, credit cards, insurance services, consumer banking, and investment banking. Additionally, other entities, including industrial firms, seek loans from the bank. Thus, from a larger viewpoint, the bank's clientele include both companies and people.

The Commonwealth Bank of Australia has many key partners. The bank collaborates with Barclay Bank. Collectively, these institutions facilitate and optimize monetary transfers between the United Kingdom and Australia (Weill and Woerner, 2013, pg 19). For example, the two banks connect their clients via applications. The CommBank app, in conjunction with Barclays' Pingit, allows clients to conduct transactions safely and effectively at distances exceeding ten thousand miles (Heaney, 2007, pg 196). The Commonwealth Bank has collaborated with Alipay to provide payment services to consumers in Australia and China (Cuganesan, 2006, pg 165). Recently, the two firms signed a Memorandum of Understanding. The Commonwealth Bank has achieved significant development via advantageous relationships (McCauley, 2006, pages 14).

Although considered a premier bank in Australia, the Commonwealth Bank encounters intense competition from other prominent banks. The other three major banks provide identical services to those of the Commonwealth Bank, resulting in intense rivalry. The Commonwealth Bank of Australia's rivals are Westpac Banking Corporation, National Australia Bank, and New Zealand Banking Group (Mundt, Dawes, and Sharp, 2006, pp. 465). Nevertheless, competition compels the bank to improve its performance.

Commonwealth Bank of Australia's community engagement programs

For almost twenty-five years, Australia has had economic progress, sound governance, and a robust legal framework (Kim, 2008, pg 379). Consequently, the Commonwealth Bank has shown exceptional performance due to these advantageous conditions. Furthermore, Australia has an autonomous bureaucracy and substantial backing for the entrepreneurial sector. Consequently, the banking industry has expanded owing to the enhanced economy and political goodwill.

Final Assessment

In conclusion, the Commonwealth Bank significantly influences the Australian economy. The analysis of the Commonwealth Bank's financial statements, managed by the directors, indicates that the bank is seeing daily improvements. The bank's slogans facilitate its progress toward achieving its aims and objectives. The Commonwealth Bank is among the leading banks in Australia and partners with institutions like Barclays to provide its clients with high-quality digital services. Nonetheless, the bank faces competition from other financial institutions. Diverse political, social, and economic issues influence the operations of banks. For example, adhering to legal obligations necessitates more financial resources.

References

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