This paper aims to discuss the three areas of marketing i.e. Segmenting, Targeting and Positioning of the National Australia and New Zealand Bank of Australia. This paper also provides a glimpse into the Product/ Market Orientation of the National Australia and New Zealand Bank of Australia, the company’s value proposition and differentiation, the needs, wants and demands of the customer, factors that influence buying behaviour and nature and level of competition existing in the banking industry of Australia.
Segmentation Of A Market: A market is segmented on the basis of economic and social factors and brand loyalty along with physiographic and geographic factors. Segmenting a market therefore helps to organize the market into groups through which a business can benefit. There are two approaches of segmenting a market. They are a discovery approach and an analytic approach (Chuang & Hu, 2015) An analytic approach is a research and a data based approach. The first approach gives one an idea of the future growth of the segment and whether it is worthwhile to invest in that segment. The second approach is more based on primary research and is based on the buying behaviours of the particular segment.
The National Australia and New Zealand Bank mostly cater to small and mid market businesses. They also provide no or low interest loans for people in need. Brand loyalty is of paramount importance in any business and the National Australia and New Zealand Bank enjoys brand loyalty from its customers.
Targeting is the process of identifying the select market and then planning and using advertisements in order to cater to that market. Traditional targeting practices of advertising through the medium of print have given way for advertising in social media. Behavioral advertising is a byproduct of this trend (Chuang & Hu, 2015). The National Australia and New Zealand Bank relies heavily on print media and social networking sites for advertising their products and financial services.
Positioning is the final stage that focuses on how a customer will see one’s product or service in comparison to the products and services of one’s competitors. Positioning is crucial because it helps an organization to gain a competitive advantage over their competitors. Positioning refers to the battle for the consumer’s mind. There are three types of brand positioning which include functional positioning, experiential positioning and symbolic positioning (Lecture 2018). By providing both business and home loans, The National Australia and New Zealand Bank manages to stay ahead of its competitors.
Segmentation and Targeting is a vital part of marketing strategy for any company. Segmentation is an important step in marketing strategy as it provides the base on which targeting and brand positioning takes place. For a segmentation program to be successful, segmentation ought to be substantial, measurable, different, accessible, different and actionable.
The National Australia and New Zealand Bank: In this study, segmentation, targeting and positioning of Australia and New Zealand Bank is considered. The National Australia and New Zealand Bank is a public company that derives majority of their income from the National and Regional Commercial Banks in the Australian banking industry. The National Australia and New Zealand Bank has released a plethora of campaigns advertising for both personal and business banking. The various campaigns include ‘Stop Small Problems Getting Big’ that promotes no or low interest loans to the financially weaker sections of society, the ‘More Space Less Squeeze’ campaign promoting 0% on balance transfers for a year. When it came to home loans, the National Australia and New Zealand Bank launched an advertising campaign entitled ‘Everyone Has An Opinion’ that promoted property investment. These campaigns have led the National Australia and New Zealand Bank to retain its top position in the Australian banking industry.
The National Australia and New Zealand Bank is segmented into Australian citizens and international clients. The National Australia and New Zealand Bank offers a plethora of banking services and financial services to retail, small business and corporate customers as well as farmers and large corporate clients.
The target group for National Australia and New Zealand Bank are Australian citizens, international clients and people and businesses who require banking services. It also provides a plethora of insurance products, superannuation solutions, and options for investment to its customers. The Australian and New Zealand Bank offers retail distribution, which includes call centers that offers loans and services, credit cards and debit card to customers as well as corporate customers. It offers corporate and commercial banking to customers. Apart from engaging in commercial banking, it also offers regional business banking and small business banking. The Australian and New Zealand Bank offer loans and specialized finance. They also offer global transaction banking and guide their clients in managing cash. It offers retail and business banking to business owners. The National Australia and New Zealand bank also provides support and financial advice to farmers and businesses that are privately owned as well as to large corporate clients.
Product and Market Orientation: The National Australia Bank is focused on creating a simpler, better capitalized and an agile bank. “They have catered to 250,000 new customers in Australia and New Zealand this year. They strengthened their number three home loan position, introduced First Home Buyer coaches, and for the very first time accounts of people taking home loans exceeded one million. In New Zealand they held their number one position in overall brand consideration and increased their Retail Net Promoter Score. They grew small business deposits by nine percent in Australia and commercial deposits by six percent in New Zealand. They became better capitalized.” (Stewart, Robertson & Heath, 2013).
Company’s Value Proposition and Differentiation: The values of The National Australia and New Zealand Bank “is doing the right things well.” (Chuang & Hu, 2015). Their values are a reflection of their organization and reflects the things that they are not willing to compromise with their customers, stakeholders and shareholders. “Their values include Integrity, to do what is right, Collaboration, i.e, to work as one for their customers and shareholders, Accountability, i.e. to own one’s actions, Respect, ie, to respect every member of the organization, their customers and shareholders and to bring, consider and implement the views of the customer and Excellence, ie, to strive for excellence in every aspect, to be the best and help their customers progress” (Stewart, Robertson & Heath, 2013).
The National Australia and New Zealand Bank is the only major bank that gives customers the option to pay across Apple PayTm, Apple Watch Play, Android PayTM, Samsung Pay and FitBitTM Pay. This differentiates the National Australia and New Zealand Bank from other banks in Australia. It is also the only bank to help customers who are visually impaired and have reading difficulties. They are also the only bank that assists the poor to build their money management skills. They are the only bank to invest in long term financial educational programs in order to educate their customer. They have built a culture of respect. (Ernst & Dolnicar, 2018). They employ visually impaired people in the roles of Customer Service Consultant in their office at Melbourne .
Customer’s needs, wants and demands: Customers expect digital innovation from banks. Customers want banking to be made easy. They want to access a bank’s products and various services seamlessly and with minimum hassle. With the advent of mobile phones and internet banking, customers now interact with their banks a lot more digitally and they do so mostly on their mobile phones. If banks fail to make banking tasks simple, customers are bound to change banks.
Customers also want various options on the way they bank. Customers now want to have 24/7 access to their banks. Nowadays customers engage with their bank both physically and digitally with sixty five percent of customers engaging and interacting with their bank through various channels. The older, less technologically- engaged group of people that prefer in-person banking are eager to experiment with their interactions with the bank. (Ernst & Dolnicar, 2018). The digital revolution has resulted in instant gratification, and customers want the same from their banks as well. Customers want to start banking online and they do not want to repeat tasks at a physical branch.
Customers also want responsive customer service. Banks have to be open and transparent and communicate with their customers. If a problem arises, then banks should try to solve it within the first try itself. Majority of banking customers reveal that they leave a bank due to poor customer service. A study showed that over eighty percent of customers would have stayed on with their banks and not left if their banks had been able to solve their queries and difficulties in the first try (Ernst & Dolnicar, 2018). Responsive customer service may not be able to bring in new customers for a bank but they sure do help to retain the existing customers of a bank.
Customers want to be understood. Customers want relevant offers from their banks pertaining to their needs and wants and not the usual spam of generic advertisements that come in their mailbox. Customers want to be understood so much that they are willing to trade their personal data for tailored and customized offerings (Ernst & Dolnicar, 2018). Banks should aim at retaining their existing customers while selling their products and services.
Customers want great value from the financial products and services offered by the bank. Customer loyalty programs are increasing but it is not because customers are actually loyal to their banks. Customers participate in the loyalty programs primarily to get best deals. Customers are willing to change banks if they find a good value or good services (Chuang & Hu, 2015). To compete, banks today need to offer high value financial offerings to its customers.
Bank customers want processes to be quick, simple and accessible. With the advent of technology, and digital revolution, the days of banking only in branches are over. People have started resorting to online banking. However, to remain in the competitions banks need to offer digital solutions to its customers. Signing up for a savings and business accounts should not take days and require a trip to the physical branch of a bank. However, this is the reality for most banks and their customers. Customers today want a lot from their banks. Thankfully, banks have the necessary tool to meet this growing need of customers.
Customers today want that the bank knows them, know enough about them to offer them customized services and solutions. The customer also wants to be respected by the bank and want the bank to see that at times a customer understands certain situations while at other times, the customer may fail to understand a situation. Banks should take these things into account and respond accordingly. The customer also wants the bank to listen to him or her. The customer expects that the bank pay attention to what the customer is saying regardless of the media that a customer is using. If a customer has a question, then the bank should answer it and if a customer has a complaint, the bank should take it seriously and respond at the earliest. The customer also wants the bank to be honest with him or her. Mistakes are bound to happen but the bank should be forthright about it, and acknowledge their mistakes instead of making excuses, evading the fact, or be downright lying. The bank should be honest with the customer and work to rectify their mistakes. The bank should show the customer that the customer can trust the bank wherein when a bank promises something, for example to protect one’s data, then the bank should be able to deliver what the bank had promised. Customers want the bank to work the way they work. Customers who are connected via social media wants the banks to stay connected and work the same way and elicit an immediate response. The customer also wants the bank to be available twenty-four hours and seven days a week. The customer also does not like to be kept on hold for a very long time by the bank and expects the bank to value his or her time as the consumer values the time of the bank. The bank should also give the customers the products that a customer wants. The bank should also keep everything simple, so that it is easier for a customer to do what he or she wants. The bank should empower the customer and give him access to all the tools that a customer requires and needs. The bank should help the customer feel in charge of his or her finances. The customer wants the banks to be more involved. The bank should show the customer that the bank cares about the community and the world of the customer and develop products that increases financial inclusion. The bank should give loans to good and noble causes and advocate for economic justice (Chuang & Hu, 2015).
Factors that influence buying behaviour: The factors that involve buying behaviour include Generic Theory of Buying Behaviour, Cultural Theory of Buying Behaviour, Environmental Theory of Buying Behaviour and Internal Theory of Buying Behaviour (Lei & Moon, 2015). The factors that influence consumer behaviour also include Psychological factors, Social factors, Cultural factors, Personal factors and Economic factors. The factors that influence buying behaviour can also be divided into two parts. They are Individual differences and Environmental differences. “Consumer resources that includes money, time, information reception and processing capabilities, knowledge, attitudes, motivation, personality, values and lifestyle come under individual differences, while family, social groups, reference group, situations, the process of learning wherein experience leads to a change in a person’s behaviour come under environmental differences” (Chuang & Hu, 2015). Age is another factor when it comes to factors influencing buying behaviour. The needs and response of an adolescent is very different to that of an elderly person. Socio economic levels also play an important role when it comes to purchasing a product. Perception is yet another factor that influences the behaviour of a consumer. Marketing and advertising professionals often employ sensory marketing or emotional marketing to influence consumers in purchasing a product.
When it comes to choosing a bank or making financial decisions, a customer is usually influenced by Individual Differences and Economic factors. The various campaigns launched by National Australia and New Zealand Bank include ‘Stop Small Problems Getting Big’ that promotes no or low interest loans, has helped the financially weaker sections of Australian society to take loans from this bank ( Lei & Moon, 2015).
Nature and Level of Competition: Australia has four major banks who are collectively called ‘The Big Four’ (Lei & Moon, 2015). The banking market of Australia is dominated by four banks that accounts for about three fourth of the market. They include the National Australia Bank, Commonwealth Bank, Westpac and Australia and New Zealand Banking group. They dominate banking industry in Australia. All four banks coexist but like any organization, they compete with one another in offering a plethora of financial services and products to customers.
Conclusion:
To conclude, the National Australia and New Zealand bank is a bank to reckon with in the Australian banking industry. By providing a range of loans that includes both home loans as well as business loans, to people from all strata of society, the National Australia and New Zealand Bank continues to be popular and to secure the top position in the Australian banking industry.
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