Reserve Bank of Australia: Marketing Strategies

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Purpose

To seek approval of the new strategic move within the organisation operations, it is necessary for the board members to understand the importance of the move and give their verdict on the same. Due to the changes in the organisation business environment, customer relations, marketing, strategies, responsibilities and market research strategies must be approved by the board for the managing classes to realize the organisation goals and objectives (Birkinshaw, 2010, p. 71). All these subject areas need adequate changes or should be streamlined with the current business environment for the organisation to remain competitive and relevant to the targeted customers.

Background

Previously, the board had considered helping the management attain the organisation goals and objectives with all means possible. It is with this objective that management forwarded various recommendations to the board. Due to the increasing competition in the financial market in Australia and outside, reserve bank must be willing and able to streamline its operations and keep them in line with the global market requirements. All financial institutions around the world are working as a single unit where effects and challenge elements are being transmitted directly from one institution to the other. On the same note, the introduction of the ICT in the banking market has also completely changed the environment whereby marketing strategies, services and customers’ relationship have also been changed significantly. It is the role of the organisation to place itself in an appropriate position where it remains connected to the people or targeted customers (Kotler, 2010, p. 12). To survive the bank must be able to provide changes in this named area. Market research and social responsibility programs are expensive for the company and in most cases have no direct relationship to the company profit. It is with this notion that most financial organisations do not undertake the programs. It is wise and economically relevant for the bank to rule out programs that cover these areas. This will ensure a good future of the company because they are relevant forms of marketing and they serve well to the community hence associating with the organisation (Kotler, 2010, p. 22).

Discussion

Adding customer value to the organisation for competitive advantage

Customers are very important stakeholders to the organisation. It is important to add value to them as a way of motivating them to add value to the organisation. To improve this situation, the bank must consider all areas that add value to the customers, such as defining values expected from the customers and meeting customer’s expectations, tastes and preferences among others. Customer value-adding is the act of adding customer motivating programs, as well as improving services given to the customers. This will help increase the bank customer base of all products offered by the bank. By expanding the customer base in all products offered, the bank will be able to generate more profits from continued services delivery.

Customer value attainment will take different approaches whereby the bank will increase the offers and promotional offers to the customers with an intention to improve the relationships with the existing customers or even attracting new customers. Also, the bank will consider the ICT services to improve service delivery as well as introduce new products to the existing customers. Holding all factors constant, the bank will be able to diversify its products and services hence reducing risk exposure and retains or improve profitability. To add value to the customers, all customers should be classified, for example, corporate and small scale. This will promote repetitive business with all customers hence promoting the attainment of the organisational goals and objectives.

Change of focus for the organisation from transactional to relationship marketing

Transactional and Relationship Marketing hold distinct meanings and implications for the organisation. Relationship marketing is a way of doing business and is more than a transactional relationship, where the bank is expected to understand the customer’s life, challenges and other personal relationships. The prime objective of taking this direction is to strengthen the relationship between the organisation and customers. Currently, all organisations irrespective of the sector must be willing and able to make follow-ups with their customers as a way of improving the relationship between the two sides. This will help the company and the customers to understand each other well, hence promoting business between the two. For example, the bank must be able to follow-up with all the customers. It can also offer services that improve the relationship beyond transactions whereby the bank can create a seminar or parties where both sides can meet and share experiences (Goldsmith, 2011, p. 23). This will attract more customers to join. It is important to note that the banking environment has changed and it is paramount for the bank to change its approach to customers.

The Implications of Service for your financial organisation as a Differentiation Strategy

Differentiation strategy aims at separating services based on customer classification, such as corporate or small scale. Discrimination is one of the best strategies to deal with many customers of different interests. To make them feel appreciated and create room for them to meet their expected satisfaction level, it is important for the bank to classify services. Corporate customers should be given a room or a banking space where they can be given services directly without interfering with others because some of the transactions they make are big and they require security. On the other hand, corporate customers are important holding the fact that they hold a lot of interests both to their organisation and to the general public. To improve the relationship between the organisation and all customers, it is paramount for the bank to give personified services to all with respect to the customers’ interests.

Each service given to the customer should be in line with the bank goals and objectives where the bank is targeting to increase its customer base as well as increase its profitability by retaining and increasing repetitive business with the customers. This is a noble goal to the bank and the board should approve this objective hence giving the managers the right to improve and define segments within targeted customers (Kotler, 2010, p. 32).

A corporate social responsibility strategy for the organisation for the 21st Century

Social responsibility is turning to be an effective marketing strategy as well as a basic requirement for all organisations. It can be said to be the only way to say thank you to the society that accommodates the organisation. To survive, the reserve bank of Australia must be willing and able to support society by ensuring that it gets access to the banking facilities or services. This can be done by opening banking facilities in public places such as jails, schools and other social institutions. Although a less incoming prospecting move, the bank presence will continue to be witnessed by all irrespective of their locations. Many would like to associate with the bank holding the fact that it serves to all and everywhere. The bank will also be able to improve its infrastructures and connect with many stakeholders.

Another social responsibility that the institution can undertake is to paint all the buildings, amenities and other areas that might require painting. This will also add value to the bank image, as well as beautify the cities and other locations within the country. The bank will benefit from increased customers as a result of the undertaking because it acts as an advertising strategy.

Utilising market research to develop sound market segmentation, targeting and positioning strategies

The bank must be in a position to finance research both to the customer’s interests and to the general market environment. The bank should be in a position to define its role in the market and establish itself on products, targeted customers and the institution capability among other things like the new markets that the bank can take advantage of. All the customer classes should be noted, their interests and other associated factors that might affect the relationship between the company in either way. This will improve service delivery, as well as attract and retain the customers. Establishment of the new market will add value to the company where it will create a possibility of increasing the bank profitability and structural expansion (Amdam, 1996, p. 32).

Recommendation

It is of great importance for the bank to undertake or implement the following recommendations for the above-mentioned reasons,

Change of Focus for your financial organisation from Transactional to Relationship Marketing
Adding Customer Value to your financial organisation for Competitive Advantage by making sure that our services are up to the customer’s interests. I.e. improve technology, improve communication, and define values and other customer’s interests.
The Implications of Service for your financial organisation as a Differentiation Strategy
A Corporate Social Responsibility Strategy for your financial organisation for the 21st Century
Utilising Market Research to develop sound market segmentation, targeting and positioning strategies for your financial organisation

References

Amdam, RP 1996, Management education and competitiveness: Europe, Japan and the United States, Routledge, London.

Birkinshaw, J 2010, Reinventing management: Smarter choices for getting work done, John Wiley and Sons, UK.

Boston Consulting Group 2007, Innovation 2007: A BCG senior management survey, Boston, Web.

FAO Corporate Document Repository 2011, Marketing research and information systems: Chapter 2: Secondary sources of information, Agriculture and Consumer protection, Web.

Goldsmith, O 2011, Functioning of a Toyota production system, Ezine Articles, Web.

Kotler, P, Brown, L, Burton, S, Deans, K & Armstrong, G.2010, Marketing, 8th ed., Pearson, Australia

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