Audit for Marketing of the Bank of Cancer Research - Case Study Example

Audit for Marketing of the Bank of Cancer Research Name: Institution: Bank of Cancer Research is a new concept being introduced by Mr. March where he has a vision of setting up a bank like the ones used in the world currently. However, the profits expected from the bank will be used to conduct research on cancer. Researchers have claimed that cancer is treatable if proper research is conducted. However, currently the researchers are always let down by lack of funds to continue with their projects. As such, the Bank of Cancer Research will be purposeful in the sense that the employees, investors and even customers will be working towards the goal of finding a cure for cancer (Bank of Cancer Research, 2017). Mr. March then plans on finding customers to bank with the cancer research bank upon which he will then approach The Giving Pledge group of investors to help him buy an already existing bank in order to ease the fruition of the plan. The paper will focus on analyzing and auditing the market for the Bank of Cancer Research. Competition Australia has experienced immense economic prosperity within the 21st century which is highly attributed to her competitive financial systems that often improves consumer welfare. Retail banking in Australia has been highly competitive especially among the major banks in the country. However, small firms that are blooming also increase the competition. As much as competition exists, there are no barriers to entry in the banking sector in Australia. The barriers to entry were eliminated in the 1980’s when financial deregulation occurred as well as the technological advancement of the 1990’s (Pollari, 2017). The move saw many foreign banks and other deposit taking institutions gain footing in Australia. As such, the Bank of Cancer Research is likely to be successful despite the competition more so because the customers will be contributing towards a worthy course. The more competitive a market is, the more consumer needs are catered for because the producers will have to come up with a variety of quality products and services to compete adequately. In the case of Bank of Cancer Research, the bank will survive in the market because in one way or another almost everyone has lost a loved one who succumbed to cancer. It will therefore be a chance for all customers to contribute towards a prevention of losing more friends or family members to cancer. Australia and New Zealand Banking Group Limited (ANZ) is the fourth largest bank in Australia. The bank is also the largest in New Zealand. Commercial and retail banking operations in Australia sustain the operations of the company. The bank also has presence in India employing so many people. The bank is fully digitized and has highly qualified information technology specialists. ANZ bank also makes use of heavy advertisement on the various products they offer to the customers. Standard Chartered Bank is also present in Australia and operates under the foreign branch licensing. The bank has been in Australia for over 50 years. The bank offers a variety of products such as those of retail and cooperate banking as well as advisory services for their clients. The Commonwealth Bank of Australia is a multinational bank based in Australia. The bank is among the largest company listed with the Australian Securities Exchange. The bank offers a variety of services such as those of broking, superannuation, investment and banking services. Customer Analysis A good customer analysis plan should identify the target customers, their needs and a demonstration of how these needs are to be met. The needs of consumers are rapidly changing especially in this era of advanced technology and as such, banks such as the Bank of Cancer Research should come up with top notch services and products to differentiate them from the other banks and which will attract more customers (Zeithaml, Bitner and Gremler, 2006). At this age, a bank that comes up with a product without first conducting a thorough research on the needs of the customers as well as their expectation of the services is bound to fail. Currently, customers are concerned with quick services, mobile banking which enables them to access money wherever they are without having to visit the banking halls. Additionally, customers expect to be treated with a lot of respect by the bankers. Therefore, the Bank of Cancer Research should invest in hiring good personnel to handle the customer care department. Banks should conduct customer analytics thoroughly because customers have become more sophisticated than ever. Certain factors should be put into consideration when serving different customers. The Bank of Cancer Research should thus strive to conduct a customer analysis to enable them determine the economic segmentation of each of their potential clients so as to determine the kind of products and services to offer them (Zeithaml, Bitner and Gremler, 2006). The bank should also come up with ways of improving customer welfare. The other strategy that the Bank of Cancer Research should take is that of understanding the needs of each of their potential customers and their preferred channels of getting banking services. For instance the younger generation would prefer mobile banking while the older generation may require constant calls from the bankers to guide them through their banking requirements. The Bank of Cancer Research is a bank like the others and as such, the bank should expect issues such as fraudulent activities and defaulting on loans by customers. The bank should thus be well braced to handle the challenges as they present themselves. The bank should come up with back up plans to handle loan defaulters to avoid losses which will hinder fruition of the purpose of the bank. As much as the bank aims at using the profits so gained for cancer research and the customers will be contributing towards the good course, there are chances that some customers may conduct fraud activities such as robbing of the bank or even bad cheques. Therefore, the bank should work towards coming up with ways of holding up with the irregularities that may occur with some customers. Relationship development is crucial in the banking sector and it is what transforms a potential customer into a loyal one. Customers often overlook price to consider the services they are offered by their bankers. For a bank to be successful, it has to go overboard and conduct a thorough research on each of their clients (Zeithaml, Bitner and Gremler, 2006). The research should then be used to offer personalized services to customers. When customers receive customized services, they often feel valued and their needs are met. The relationships so formed are the basis for customer satisfaction and retention. Also, the best way to gain more clientele is through the word of mouth. People trust others and so if one person receives exemplary services; they are likely to convince their friends and family members to try the services (Zeithaml, Bitner and Gremler, 2006). The Bank of Cancer Research is using the campaign slogan of ‘tell another person’, this therefore implies that once the bank kick starts, and the services offered are desirable by the customers, then the word of mouth will ensure the bank gets more customers who will help with the fulfillment of the dreams of Mr. March the founder. Customer acquisition may be easier as compared to customer retention and most banks disregard efforts to retain their customers. The bank of Cancer Research should thus take it as a challenge to come up with strategies to retain their customers by all means through satisfying their needs and even exceeding their expectations. Customer feedback is also important to ensure that a bank or any other business is able to determine their strengths as well as their weaknesses. The best forums to acquire customer feedback are through social media sites such as facebook, instagram, snap chat or even youtube channels (Zeithaml, Bitner and Gremler, 2006). The Bank of Cancer Research has already began plans of advertising their vision to the masses through social media and is receive positive feedback from potential customers all over the world who feel they would want their banking services to help the cancer patients and victims. However, the social media presence of the bank should continue even after the concept is endorsed and the bank starts operation. That way, the bank will be in a position to respond to customers queries in the 21st century when everyone makes use of social media to complain as well as to commend service providers (Zeithaml, Bitner and Gremler, 2006). Looking at feedback from clients enables service providers to know where to rectify as well as what the customers require at a particular time. Marketing Analysis A market analysis is a quantitative and qualitative analysis of the market conditions. In this case the banking industry is the market to be analyzed with particular interest in the size, customers and their segmentation, competition and the environment. Market analysis is crucial because it enables a business to understand their market better as well as to prove to potential investors that the market is large to give a sustainable business. Australia’s major banks made a profit of about 29.6 billion dollars in the year 2016 alone indicating that the market for banking services is readily available in Australia (Pollari, 2017). Once a company succeeds in the home country, it is usually easier to penetrate other foreign markets. As such, The Bank of Cancer Research has high chances of succeeding and even gaining market in the whole world. The marketing mix in the banking sector is different from other sectors because the industry mainly consists of service delivery marketing mix consists of the product, pricing strategies, promotion of the products and the distribution channels. Product The product in the banking sector is a service which is intangible and heterogeneous. Services cannot be measured in nature but it is possible for customers to have a perception regarding the services they receive. Businesses therefore constantly strive to differentiate their services from those of their competitors so as to attract more customers as well as retain the existing ones (Bhasin, 2017). The Bank of Cancer Research should therefore work towards offering services that distinguish it from other banks. For instance the bank can go ahead and provide customers with a cup of coffee and a snack as they wait to be served at the banking halls. Additionally, the bank can dig up data regarding special days such as birthdays and anniversaries of their customers and wishing them through a call or just a text message. Such services make customers feel appreciated and part of the bank thus strengthening their loyalty. Pricing Pricing in the service industry is rather difficult but in reality a bank such as the Bank of Cancer Research has to put into consideration the prices in the market because the banking industry is a competitive market. As such, prices are determined by the market forces. However, the cost should put into consideration the cost of operation as well as the attainable profits because at the end of the day the profits are required to fund cancer research (Goi, 2009). Additionally, when speculating profits, a company should put into consideration their target customers, their ability and willingness to pay. A company may use different pricing strategies on its products and services. The first strategy used is that of penetration pricing where a company sets very low prices as compared to those of the competitors to enable it penetrate a particular market. Once sales have increased and more customers have been gained, the company then raises the prices. The second pricing strategy is that of skimming pricing whereby a business sets very high prices at the initial stages of starting up the business then gradually lowers the prices to gain a wider market. The last pricing strategy likely to be used by companies is that of competition pricing whereby a business sets its price like that of competitors, higher or even lower (Goi, 2009). Promotion Marketing involves a company identifying the best strategies to promote their products. A business may make use of one or many strategies to ensure their products and services are known by many people (Cravens and Piercy, 2006). The main objective of promoting products is usually to create awareness about the existence of a certain product or service. Advertising is one method of promoting products whereby a brand identifies an ambassador who creates awareness of their products on television ads, bill boards, brochures, radios, posters and even mobile applications. The other method of promotion is that of having good public relations within the organization as well as with the clients. Public relations involve promotion that can be done when a firm creates positive public relations with the members of the public (Cravens and Piercy, 2006). Good public relations also involve minimizing the impact of bad occurrences on the business. Sales promotions also help in enhancing promotion strategies because they involve driving sales in certain periods. Sales promotions involve increased sales during the period when the promotion is being conducted. The promotions can be done through a word of mouth whereby some staffs are designated to visit customers and create awareness of the existence of a product (Cravens and Piercy, 2006). In addition to the creation of awareness, the promotion may include some discounts such as free account opening in the case of a bank. Internet marketing and sponsorship are also forms of promotion. Internet marketing involves use of the internet to advertise their products; a firm may make use of Google ads where a concept such as the one of Bank of Cancer Research is run on all pages. Sponsorship involves a business endorsing say a sports event and their brand and logos are displayed on the clothing of the players and billboards (Cravens and Piercy, 2006). In regard to promotion, the Bank of Cancer Research should work towards making its concept understood to gain market share all over the world and so that the purpose of funding cancer research is fulfilled. The bank should therefore make use of different promotion strategies to ensure that the purpose of the bank is understood by all potential customers. The bank has already started making use of social media to create awareness. However, the bank should also incorporate other strategies like those of advertising on radios and televisions to ensure that the concept reaches as many people as possible. Distribution Channels Distribution channels refer to the ways a firm uses to ensure a product gets to the final consumer. To determine the best distribution channel, a business should put into consideration the needs of the customers at a particular time, the willingness and ability of the consumers to pay for the services as well as the cost and effectiveness of alternative channels (Goi, 2009). The Bank of Cancer Research should thus conduct research to find the best way to deliver their services to clients. For instance, the current times have seen mobile banking gain popularity because it is often fast, effective and convenient for users. Another channel can be that of hall banking for the older generation who are not fully conversant with mobile banking. Additionally, the bank should offer other services such as insurance and investment options for clients so as to attract different and more customers. In conclusion, the Bank of Cancer Research is a concept that is being introduced by Mr. March in Australia where he intends to make use of the profits gained to fund cancer research. The concept is still new but it has potential of being embraced all over the world because everyone would want their money to be used towards a good course. References Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill. Goi, C. L. (2009). A review of marketing mix: 4Ps or more?. International journal of marketing studies, 1(1), 2. Bhasin, H. (2017). Service Marketing Mix - 7Ps of marketing mix. Marketing91. Retrieved 18 May 2017, from http://www.marketing91.com/service-marketing-mix/ Pollari, I. (2017). Major Banks: Year End 2016 Results Analysis. KPMG. Retrieved 18 May 2017, from https://home.kpmg.com/au/en/home/insights/2016/11/major-australian-banks-full-year-2016-snapshot.html Bank of Cancer Research (2017). Bank of Cancer Research. Retrieved 18 May 2017, from http://www.bankofcancerresearch.com./ Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services marketing: Integrating customer focus across the firm. Read More