The paper "Service Marketing - National Australia Bank" is a perfect example of a marketing case study. Service marketing is a field of marketing that covers the trading process of services either among businesses (B2B) or between a business and its customers (B2C). A service is an economic activity provided by one party to another. Unlike in the goods market, in service market payment is made for an intangible product (Hoffman, & Bateson, 2009). Marketing of services was not common in the early 20th century but gained momentum near the end of that century.
Marketing practitioners devoted their research efforts in service marketing in early 1980 on realizing the contribution of the service sector to the GDP (Shanker, 2002). Service marketing became entrenched as a marketing sub-field in mid-1990. Since then, there have been robust research and development in this marketing subfield. The purpose of this paper is to review the progress made in the marketing of services. In a bid to discuss this aspect, the banking industry would be used as the service industry with a focus on the National Australia Bank as the service organisation. Background Information to National Australia Bank National Australia Bank, also known as nab is among the largest four players in the banking industry in Australia in terms of customers’ size and market capitalization.
Nab operates in ten countries and servers over 8.3million customers. Globally, nab is ranked at number seventeen in terms of market capitalization. Formerly known as National Bank Limited, it changed its name after it merged with the Commercial Banking Company of Sydney Limited in October 1st 1981. 1.1 How Nab Might Attract Customers Using the Seven Elements of Service Marketing. Product; Nab should customize its services to fit various customers from all walks of life.
Financial services should be availed to all regardless of their social status, so long as they can afford (Bhattacharjee, 2006). Pricing; Prices for each product in each category should be differentiated according to the type of services rendered and the nature of the transaction carried out. Customers should be charged for their services according to their capability and the value of service offered (Apte, 2004). Place; the bank should open up new branches especially in commercial towns where there are many economic activities so as to serve more customers.
Nab should also set up more automated teller machines across the world so that customers can access their cash conveniently (Rama, 2011). Promotion; It is advisable that nab conduct robust advertisement in both the print and other electronic media so as to reach more potential customers worldwide. The bank should also run promotions aimed at encouraging more customers to seek its services: For example, awarding prizes and bonuses to the most active customers and also to wholesale customers (Clarke, 2000). People; Nab should invest heavily in training its staff so as to handle its customers efficiently.
The performance of members should also be evaluated and best performers awarded and worst staff reprimanded (Nargundkar, 2010). Process; Most banking processes should be automated thus reducing time lost in manual paperwork. Loans and cheques clearance time should be reduced so as to ensure customers spend the least time in the banking hall (Kapoor, et al, 2011). Physical Evidence; Banking halls should be decorated and fitted with state of the art furniture so as to make the customer comfortable at the banking halls.
Executive customers should be offered refreshments while they wait to be served (Woodruffe, 1995).
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