Content Analysis of Banking Web Site Commonwealth Bank in Australia

¶ … Banking Website

This report is providing customers with ideas and insights about the financial industry. However, the writer should not be held accountable for the conclusions and recommendations that are made.

Letter of Transmittal

In this research project we are focusing on the changes that are taking place inside the financial industry. This is accomplished by carefully examining the websites of Commonwealth Bank Australia with NAB. We then compare the two with one another by looking at various marketing strategies that are used in a literature review and analyzing the findings with one another. What we determined is that both financial institutions are using similar tools to target specific demographics of customers.

Table of Contents

Introduction

Problem Definition

Methodology

Data Analysis

Results and Discussion

Limitations and Future Research

Conclusions and Recommendations

Exhibits

Reference List

Appendices

Table 1: Top Financial Institutions

Bank

Total Assets

BNP

$2.69 billion

Deutsch Bank

$2.5 billion

HSBC

$2.4 billion

Barclays

$2.3 billion

RBS

$2.75 billion

Bank America

$2.26 billion

Credit Argicole

$2.1 billion

JP Morgan

$2.1 billion

ICBC

$2.03 billion

Citigroup

$1.9 billion

(World's 50 Biggest Banks 2011)

Introduction

For any business, marketing is a critical component that is used to effectively reach out to customers and inform them about new products or services that are available. In the last several years the strategies that are being utilized by firms have been continually changing. This is because more people are using the Internet as a way to learn about the kinds of products and services that are provided by a business. In the case of Australia, a similar trend has been taking place with a large percentage of the population using the Internet on a regular basis to stay informed about new products or services. Evidence of this can be seen by looking no further than the total number of people who are using this form of medium on regular basis. According to two studies that were conducted by Neilson and UTI, they found that the total number of Australians using the Internet has risen exponentially. As these amounts have grown from 6.6 million people in 2000 (33.8% of the population) to 17.03 million in 2010 (80.1% of the populace). (Australia 2010) These figures are important, because they are showing how the majority of Australians are going online as a way to learn about new products and services. As a result, a transformation has taken place in the way many firms are marketing themselves and their products / services. To fully understand this we will conduct a content analysis of banking websites. This will be accomplished by looking at the website of Commonwealth Bank Australia and comparing it with NAB Bank. Once this occurs is when we can offer specific insights that will highlight how these firms are increasingly utilizing the Internet as a way to effectively market themselves to consumers and inform the public about what they have to offer.

Problem Definition

For any organization, having an effective marketing strategy is one of the most important elements that are necessary in reaching out customers. This is because the ability of an organization to promote itself will help to keep them ahead of what competitors are doing by allowing them to adjust to changes that are happening in the market place. A good example of this can be seen with observations from Ferrell (2011). He found that those firms that have an effective marketing strategy can be able to identify the products that are most in demand. This is when they can create solutions that are customized to address these needs. At the same time, this focus helps companies to be able to adapt to the changes that are occurring inside the marketplace. Over the course of time, this allows a firm to maintain their competitive advantage by effectively reaching out to customers in comparison with others inside the sector. (Ferrell 2011, pp. 1 -- 5)

In the financial industry, globalization has been having an impact on the way banks are operating. This is because of the reduction in trade barriers and improved communication through the Internet, have allowed many firms to be able to offer more products / services around the globe. Evidence of this can be seen by looking no further than some of the top banks in the world (which is illustrated in the below table).

Table 1: Top Financial Institutions

Bank

Total Assets

BNP

$2.69 billion

Deutsch Bank

$2.5 billion

HSBC

$2.4 billion

Barclays

$2.3 billion

RBS

$2.75 billion

Bank America

$2.26 billion

Credit Argicole

$2.1 billion

JP Morgan

$2.1 billion

ICBC

$2.03 billion

Citigroup

$1.9 billion

(World's 50 Biggest Banks 2011)

Further down the list (i.e. numbers 36 / 37) are National Bank of Australia (NAB) and Commonwealth Bank of Australia. These firms have assets of $664.1 million (for NAB) and $600.2 million (for Commonwealth Bank of Australia). (World's 50 Biggest Banks 2011) This is significant, because it is illustrating how these two companies have been using a host of marketing strategies to be able to remain competitive. In an environment that has become increasingly dominated by large financial conglomerates.

As a result, both firms have been forced to use more effective tactics to contend with some of the larger organizations. One of the best ways that they are able to achieve these objectives is to use the Internet as a way to effectively reach out to a wide variety of customers. Over the course of time, this has given these banks the ability remain economically viable institutions. This is despite the shifts that have been taking place throughout the industry.

Methodology

The methodology that we will be using is known as the quantitative approach. This is when we are going to be looking at different sources that will identify various aspects of the banking industry that are important to marketing. The way that we will accomplish this, is to look at the actual websites of the banks themselves and then we will focus on various sources of literature that can support the ideas presented.

Once this occurs, is when we utilize comparative analysis to focus on various aspects of the project and the impact that they are having on both Commonwealth Bank of Australia and NAB. Anything that is going against the basic trends that are determined will be discarded as an anomaly. While all the facts that are supporting the patterns from the research itself will be used as a part of the methodology and analysis that will be conducted. This will ensure that we are taking an objective and accurate approach. When looking at: the underlying situation and the long-term impact that it is having on both firms.

Research Questions

To focus the research we will concentrate on several different questions. Below is what we will be looking at during the course of this study.

What basic marketing techniques are being utilized by Commonwealth Bank Australia to reach out to consumers in a very competitive global marketplace?

What tactics are being utilized by NAB in comparison with Commonwealth Bank Australia?

How have the different approaches helped both financial institutions to remain competitive?

How are these marketing strategies changing for both firms to reflect increased communication online and through globalization?

These different questions are important, because they will help us to focus the research on specific areas that will determine how both firms have adapted to the changing marketplace. Once this occurs, is when we will be able to see what specific marketing strategies are being utilized and how this helped them to remain competitive.

Data Analysis

To understand what marketing principals are being applied to Commonwealth Bank and NAB's websites we will examine a number of different sources. This will be accomplished by conducting a literature review of a host of ideas and how they apply to both firms. However prior to doing this, our concentration will be on the two websites and the kinds of products they have to offer. This is when we will be able to see what principals are applied and how they are impacting the way these organizations are reaching out to customers.

Literature Review

In the first source titled Commonwealth Bank (2012), it is providing information about the various products and services that are offered by the firm. This is divided into three different categories to include: personal, business and corporate banking. Personal banking is providing customers with a number of services including: bank accounts, savings accounts, credit cards, home / personal loans, financial planning and wealth management. While business banking is focused on several different areas to include: merchant services, accounts / credit cards, vehicle / equipment financing, management risk, agribusiness and international trade. In the case of corporate banking, there are number of products / services that the firm is concentrating on these include: financial markets, raising new working capital, research, structural finance, industry expertise and research. (Commonwealth Bank 2012)

At the same time, the bank is offering customers the ability to log into their accounts online 24 hours a day. This helps the firm to be able to provide customers with products that can address specific needs. A few of the most notable include: weekend trading, foreign exchange services, ATM's and coin / deposit / change machines. These elements are important, because they are illustrating how the Commonwealth Bank Australia is focused on providing their customers with a comprehensive package that will address all of their needs. (Commonwealth Bank 2012)

Moreover, the firm is improving the overall products that they are offering customers by providing clients with an all in one solution that they can use to achieve these objectives. As a result, there has been an emphasis on having two of their subsidiaries (i.e. Net Bank and Combiz) focusing on reaching out to everyone through traditional locations as well as over the Internet. To be able to do this, the firm has established a presence on Facebook and Twitter. This also provides customers with numerous videos on their website that are designed to educate everyone about their products and different ideas they can utilize. This is significant, because it is showing how Commonwealth Bank Australia is focused on being able to effectively reach out to a host of customers around the globe. As a result, the information from this source is useful because it is highlighting how the firm is using a customizable approach that will help them address their various financial needs. Over the course of time, this has allowed the bank to adapt with the changes that are taking place inside the financial industry. (Commonwealth Bank 2012)

In the source titled Still the Lowest and Counting for 30 Months (2012), it is showing how NAB is offering similar services to Commonwealth Bank Australia. The only difference is that the underlying products are not as extensive and the firm is focused on providing them through two separate segments to include: personal and business banking. Personal banking is when the company is concentrating on a number of areas that will reach out to a wide variety of consumers these include: accounts, credit cards, home loans, insurance, investments, personal financial advice, Internet banking and wealth management. While the Business banking segment, is concentrating on a number of areas to include: business cards, day-to-day banking, investments, insurance, finance / loans, industry analysis, research and corporate banking. (Give More Take Less 2012)

To reach out to a larger demographic of customers, NAB is concentrating on offering their various products and services through: Facebook, You Tube along with Twitter. At the same time, they have a foreign language converter that is designed to translate the web page into the languages of various clients. These different elements are important, because they are showing NAB is using similar kinds of tools as Commonwealth Bank Australia to promote themselves. The only difference is that Commonwealth Bank Australia has more products and services to offer in comparison with NAB. While NAB, is concentrating on working with customers who have recently settled in Australia and might not be able to fully understand English. This is why the foreign language converter is at the bottom of their home page. (Give More Take Less 2012)

As a result, the combination of these different elements is helping the company to be able to reach out to a larger demographic of customers in comparison with Commonwealth Bank Australia. However, it is important to note that Commonwealth Bank is focused on working with large corporations and more astute individuals (based on the underlying products that they have to offer). When you put these different elements together, they are highlighting how NAB is geared towards individual customers and small / medium sized business. Whereas, Commonwealth Bank Australia is working with everyone to create products that will effectively reach out to different wealthy customers and large institutions. The information from this source is useful, because it is helping us to understand specific ways: that both firms are reaching out to clients, how they are achieving these objectives and the different approaches used by the two firms to remain competitive. (Give More Take Less 2012)

To understand what is happening, the piece of literature that was written by Daigaic (2006), is discussing how all organizations must be able to create a specific niche. This is when the firm is identifying various customers that will determine how to promote the different products and services. The way that this is accomplished is by carefully examining what products and services would be most useful to specific demographics of the population. Once this takes place, is when the firm will concentrate on specific strategies that will speak to certain audiences. This is the point, that they can begin more effectively reaching out to everyone through: the products and services that they are promoting. (Daigaic 2006, pp. 33 -- 49)

When you apply this to NAB and Commonwealth Bank Australia, it is clear that both firms are using their websites to reach out to specific niches. Like what was stated previously, NAB wants to target customers who are considered to be new arrivals in Australia, middle / upper middle class consumers and small / medium sized businesses. While Commonwealth Bank Australia is concentrating on specific segments including: wealthy individuals and large corporations. These elements are important, because they are showing how this source is highlighting the way that both firms are targeting specific segments of their markets. As a result, this information is useful in illustrating the way these two firms have focused on two completely different segments of the marketplace and the techniques they are using to reach out to them. Over the course of time, this has helped them both to create products and services that are geared towards these demographics of the population. (Daigaic 2006, pp. 33 -- 49)

Moreover, the article titled Marketing and Advertising Tips (2011), is discussing specific strategies that can be used to reach out to customers (i.e. having good ethics inside the organization). This is just more than simply stating that the firm has an ethical policy they are following at all times. Instead, this is when the organization will incorporate these ideas as a part of their overall philosophy in reaching out to everyone. The way that this is accomplished is through working with staff members to establish principals that will become a part of the company itself from the top management all the way down. (Marketing and Advertising Tips 2011)

In the case of Commonwealth Bank Australia, they are focused on reaching this objective by having more personalized service and doing more for their customers as part of what they have to offer. This helps them to stand out in the minds of consumers who want to find a firm that will address their specific needs vs. selling them another product. While NAB, takes this approach to individuals and businesses by having one on one advisers working with clients. This helps them to know what the customer is looking for and how they can effectively reach out to them.

As a result, the information from this source is useful, because it is showing how utilizing ethics as part of the marketing strategy is helping these firm to standout in the minds of customers. Once this occurs, is when they can be able to offer unique products and services that are addressing the specific needs of customers. This is the point that the firm is able to adapt to the changes that are occurring in the marketplace. (Give More Take Less 2012) (Commonwealth Bank 2012) These elements are illustrating, how the marketing strategy of financial firms must reflect offering customizable online solutions with outstanding customer service. This is how both banks have been able to adapt to the changes inside the marketplace.

Furthermore, the article that was written by Bradley (2006), is discussing how globalization and the Internet are changing the way financial firms are operating. This is because these organizations have begun to adapt to them by using a combination of mediums to promote themselves. What most banks have been doing is utilizing direct advertising to illustrate the products and services that they are providing to customers. While at the same time, these entities are concentrating on how to be able to show that they are different. Where, the firm wants to send the message that they can address a host of solutions that are customizable to the needs of clients. At the same time, they are demonstrating that the organization is well established and has been around for a long period of time. This is supposed to give customers confidence about the bank and the kind of products that they are offering. Once this occurs, is when company can be able to use these traditions to reach out to clients by giving them a sense of confidence about the institution. This is the point that they will be more successful in attracting larger amounts of assets. (Bradley 2006)

In the case of Commonwealth Bank Australia, the firm is focused on promoting this to everyone by showing the history and traditions of the company. This is helping customers to: understand that the organization is a major player inside the financial industry and that they can address their various needs over the long-term. Once this takes place, is when customers will have a sense of confidence in the advice that they are receiving and the ability of the bank in meeting their various financial goals. (Commonwealth Bank 2012)

While NAB, is illustrating this on their website by showing how they are able to offer greater value to customers. At the same time, they are involved in different kinds of community based initiatives such as: supporting the arts and sports programs. These elements are designed to show customers that the bank is more than some large corporation. Instead, they are focused on working with everyone as part of their community. This helps to instill a sense of confidence about the firm and their products, by highlighting how they are doing more in comparison with other financial institutions. Once this takes place, is when the company will be able to instill a greater sense of confidence in the firm. This is the point that clients will chose to work with the bank on a regular basis. (Give More Take Less 2012)

Results and Discussion

When you look at the results from the research that was conducted, it is clear that the Commonwealth Bank Australia is able to stand out among competitors by: showing how they are catering to a specific market niche, continually practicing ethics as a part of their policies and are well established. The combination of these elements is helping the firm to be able to offer everyone customizable solutions that will address the specific needs of clients. While at the same time, they are giving them the tools to be able to see how company has a tradition of meeting these objectives. As a result, this is allowing Commonwealth Bank the ability to reach out to astute individuals and large corporations. Once this takes place, is when the firm can be able to be more prominent in comparison with some of the larger institutions through: offering more personal services that is geared towards the needs of this demographic. This is the point that customers will have a greater appreciation for what they have to offer and will more than likely use the firm for addressing all of their financial issues.

When you compare this to NAB, they are focused on meeting the needs of customers by showing how they offer solutions for a different demographic the population. The way that this occurs is through providing everyone with value-based products that are combined with outstanding customer service. To achieve these goals, NAB will take a similar approach as Commonwealth Bank Australia by: focusing on a specific niche and using ethical practices as a part of their standard operating procedures.

However, they are different from Commonwealth Bank based upon the specific areas that the firm is reaching out to. As the financial institution is concerned about showing how they can help someone who is considered to be middle class or upper middle class by addressing specific needs of this segment. At the same time, the company is focused on offering customizable solutions that are designed for small and medium sized businesses. To achieve these objectives, NAB will demonstrate that they are a part of the community based upon the practices of the firm and the programs they are supporting. Once this takes place, is when the company can highlight how they are an integral part of various cities and towns where their branches have locations. This is combined, with their online presence to demonstrate how the corporation can keep up with the changes that customers are demanding by: providing them with the tools to help simplify their financial lives. The way that this is accomplished is through: having different language convertors and offering customers lower rates in comparison with other financial institutions. This is when the firm is able to more effectively target specific demographics and build the image of the organization.

As a result, it is clear that Commonwealth Bank Australia is using their website to reach out to astute individuals and large corporations by addressing their specific needs with a customizable solution. This is achieved by illustrating how the firm has a long history of delivering these products and services to customers. While NAB, is concentrating on promoting themselves to potential clients by offering greater value and more services that are geared towards specific clients (i.e. immigrants / middle class to upper class individuals along with small to medium sized businesses). These factors are important, because they are showing how Commonwealth Bank is using their website to address the needs of specific demographics of the population through the solutions they are providing and traditions. Whereas NAB, is offering greater value and services that are geared towards specific segments (which are different from Commonwealth Bank). This is significant, because it is highlighting how both financial institutions have used the two different approaches to help them remain competitive in the global marketplace.

Limitations and Future Research

The limitations of research are that the secondary sources helped us to identify specific factors that are impacting the way both firms are marketing themselves. This allows us to understand the general trends that are occurring inside the industry and the way these shifts are taking place. As a result, the literature that we examined helped us to understand these patterns and the kinds of approaches that are being utilized by both financial institutions.