Executive Summary
Marketing Mix of Common Wealth Bank in the time of global financial crisis . Analysis of bank marketing mix in the time of GFC is the main objective of the study. The Theoretical framework presents a glimse of selected theories of marketing and crisis management used. To get empirical data, interview and secondary data research are used.
Introduction
The global financial crisis has its origin in the US, but its effect was seen all over the world. In fact in last eight decades, it and was the largest economic financial crisis .Thereafter it showed some serious problems which had to be looked after. That’s the only reason faith and trust is always on trustworthy banks which has lot of reputation .But somewhere in the crisis the trust of customer towards bank was broken. Customers were totally disappointed from the banking sectors. At the time of business these banking institutions gave surety of protection of their property and assets. But in the end they were not able to keep their promise to the customers. As “TRUST” is the only key to gain the confidence of customers, the loss of confidence not only affected the image of financial institution but also the future of financial market vanished. Common wealth bank started its business in 1912 with saving and general banking insurance. At present, 52000 people are working in common wealth Bank Group and their business is growing with more than 80,000 shareholders.
There are various marketing tools that a company can opt to produce the required response in the target market. These marketing tools are known as marketing mix and include four ‘P’ terms which are: Price, Place, Promotion, and Product. Between marketing mix of services or product, there is some diffe...
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...free about each stage. Below also “helping” questions and follow-up questions. 4 variants for 4 areas of interest).
a. Promotion
• What tools did you use?
• What was the main message?
• What difficulties did you meet?
• How did you overcome them?
b. Price
• What difficulties in terms of prices did the crisis bring?
• How did you overcome it?
• Did the price decrease/increase?
• What was the reason for that?
• What was the effect?
c. Place
• What difficulties in terms of place did the crisis bring?
• How did you overcome it?
• Did you reduce/increase the numbers of bank units?
• What was the effect?
• Did you made any changes in channels?
d. Product
• What difficulties in terms of product did the crisis bring?
• Did you develop any new products?
• Why? What was the effect?
• Did you eliminate any product?
Kotler and Keller (2014) develop on what product represents in the marketing mix, as the idea centers around its design, quality and packaging. Continuing with the Four P model, price should be considered when marketing a product. The price component asks one to determine the list price, discounts, allowances, and payment period of a product (Kotler & Keller, 2014). Finally, Kotler and Keller (2014) list promotion and place as the final two variables associated with the older Four Ps. Promotion deals with how a product is advertised and what type of sales force will be utilized, while place is associated with the channels and locations for which your product will be featured (Kotler & Keller,
Citigroup is one of the most well known financial companies in the world. The company has been one of the pioneers of the business financial world. They have contributed in many contemporary ways in the use of banks, and many other financial systems. Citigroup was a representation of the financial market success of the United States, Wall Street, and the financial world. The company has more than 200 years of history, and had been receiving high credibility from worldwide customers. However, after the company’s merger of Citicorp and Travelers Insurance the company was put under new management. Following their boss’ lead, the corporation began to make decisions that were only made with the best interest of the maximization of Citigroup’s profits in mind. This eventually led to the Recession of 2008 and a very rocky road for Citigroup. The company’s actions were similar to that of Netbank, but the end results of the companies differed due to Citigroup’s size. The financial crisis of Citigroup could have been avoided had the necessary precautions been taken, had these provisions been taken it could have possibly helped to avoid the economic recession of the United States as well.
There are four key factors in the marketing mix, which includes product, place, promotion and price (Worth). Product, which includes tangible and intangible qualities, is the simplest factor and plays a fundamental role in the marketing mix. Secondly, place, is also a significant variable in the marketing mix because the convenience of the location decides the popularity of the product. Thirdly, promotion influences the visibility of the product. Through advertisements, brochures, and other efforts, promotion helps to raise the public’s awareness on the product. Finally, the price is the most straightforward factor in the marketing mix, which directly relevant to the exchange in the market place. The cost-oriented pricing is the mostly common
The 4 Ps of the marketing mix are: Product, Promotion, Price, and Place. The marketing mix puts the right products, at the right price point, in the right place, at the right time. The following examines how Claire’s Chocolates optimizes its marketing mix (Yoo, Donthu, & Lee, 2000, 195-196).
The LEGO Group organization is famous due to its flagship product – colourful plastic bricks that can be interlocked to form a variety of figures, and then disconnected again. These binding bricks originated in a wooden form when the company was first established in Billund, Denmark by Kirk Kristiansen in 1932 (The LEGO Group, 2012), and today’s well known plastic version was introduced in 1958 (Rosenberg). The company’s head office is located in Billund to this day, and The LEGO Group remains privately owned by Kristiansen’s family (The LEGO Group, 2012). They currently sell toys and teaching materials in over 130 countries worldwide.
There is a belief that firms have a different marketing approach depending on if the firm is trading services or goods. Service firms are assumed to have a more relational approach where they manage the whole buyer-consumer communication process while the goods firms are transactional. The main purpose of this study is to find out how firms relate to their markets and what the relative emphasis of these firms on transactional and relational aspects of marketing are.The study distinguishes the firm type by the most dominant type of product offered and the most dominant of customer
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
In conclusion, we feel that the recommendation we have suggested in this report is a suitable foundation to build a sustainable and prudent financial system in this country. This will facilitate the financial industry both, withdraw out of this crisis and in the future avoid as much as possible inducing the scale of matters at present. As the report suggest, everyone contributed in their own miniscule way to this crisis, we feel that it’s up to every one of us to contribute to the overall recovery of this financial crises and recovery of the nation in general.
has to be able to afford it, they may think price is an indication of
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While banking and financial institutions have play an important role in contributing the economic growth by collecting and allocating the resources to those who in need of finance, it also can bring the financial chaos to the economy as well. Since this industry is a sentitive and fragile one, the banking superivision is required to monitor on the banking system aiming to identify and measure risks in order to protect not only the financial institutions but also the customers from the contagious risk that would happen without any alert. Moreover, banking supervision is established in order to protect depositors against avoidable losses, thereby contributing to confidence in the financial system and the
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
The factors that have a great influence on marketing management, marketers’ business decision-making, and their relationship with customers include macro- and micro-environment, and the latter in turn includes the concept of so-called “4 P’s” (i.e., product, place, promotion, and price). Micro-environment is also referred to as “immediate environment” and stands for the factors that are literally “close” to a certain company: its suppliers, customers, intermediaries (e.g., advertising agencies), and competitors (“Marketing environment,” n.d.) Four P’s are also called “the marketing mix,” and their most widely used interpretation belongs to McCarthy (Blythe, 2008). The marketing mix indicates the four aspects of how to make your business profitable and yourself proficient as a marketing specialist. As Cannon (1992) pointed out, “The marketing mix is the set of controllable variables that the firm can use to influence the buyer’s response.” First, the business person needs to understand what the product of consumer’s desire is. It is obvious that “an undesired product” will not be sold. Producers, however, may invent something that consumers even did not expect to have but really wanted, at least, unconscious...
A variety of groups are concerned in bank profitability for various reasons. The bank shareholders would want to know if the value of their investments is high or low. The investors also use current and past performance to predict future price of the banks’ shares traded on the stock exchanged. The management of the bank as trustee of the shareholders is evaluated and compensated on the basis of how well their decisions and planning have contributed to growth in assets and profits of their banks. Employees of bank also are concerned with profits, since their salaries and promotions are frequently tied to the profitability performance of their banks. Depositors use bank performance and profitability as indicators of security for their deposits in the banks. Finally, business community and general public are concerned about their banks’ performance to the extent that their economic prosperity is linked to the success or failure of their banks.
The Traditional Theory of Banking In this paper author review the traditional theory of banking and attempt to examine the theoretical reasons for why banks exist. As a financial intermediation, the natures of the banks are to provide financial services and conduct the intermediary functions in the whole financial system by accepting deposits and making loans. The question raised here are how they conduct these roles and why the borrowers and lenders do not come together without the banks for the saving of intermediation costs, why both of the two parties are ready to pay for their services and what’s the value added by the banks? The paper proceeds as follows. Section 2 offers a traditional view of banks and describes the nature of them.