Board Report: The Road towards Efficiency for Bendigo and Adelaide Bank Limited

Purpose

This paper is directed to board of Bendigo And Adelaide Bank Limited to present ways of adding customer value to the organisation for competitive advantage and changing of focus for financial organisation from transactional to relationship marketing. This paper is also aimed at showing the implications of service for your financial organisation as a differentiation strategy. It is also for presenting the possible corporate social responsibility strategy for financial organisation for the 21st century and the need to utilise market research to develop sound market segmentation, targeting and positioning strategies for financial organisation.

Background

The paper follows previous discussions regarding the highlighted issues. The board had held several meetings with an agenda to come up with solutions for the issues. These meetings were held in the premises of Bendigo And Adelaide Bank Limited. Managers for the different business areas were always in attendance. The managers were required to give their opinions regarding the various issues on the table. Shallow reports were being compiled after every meeting to ensure that the discussions during the meetings were well documented. The minutes of every meeting were well kept to ensure that the agenda for the various meetings was well kept.

The fact that other companies in the industry have been very keen in ensuring that such related changes are handled in due time has also put pressure on the management to address these issues. These competing companies have been holding ambitious meetings to try and come up with the best package for the various related issues. This has been in an effort to beat competitors in the game and gain more profit from the market. There has also been the effort to come up with certain financial organisation arrangements where the customers would be well taken care of.

The other issue which has led to the need to address these issues as soon as possible is the presence of a consumer watchdog. This association fighting for the rights of the consumers has been in the forefront in the effort towards consumer protection. The association of consumers has been fighting for the value addition for consumers.

The government has also been in the forefront to ensure that businesses run in a more efficient and considerate way. This has led to the reinvention of various business models in the different companies. Therefore, the government policies have been able to call for an immediate action of addressing these burning issues at Bendigo And Adelaide Bank Limited.

Discussion

Addition of customer value

Value for customer refers to the state a customer wants at a given point in time. Therefore, adding customer value refers to the improvement of the expectation of the customer, and is known to be an ingredient to gaining competitive advantage (Porter 2008). There is need for Bendigo And Adelaide Bank Limited to come up with good customer value addition tactics to ensure that there is competitive advantage. With Bendigo And Adelaide Bank Limited adding value for the customer, the competitors will have no place in the market. This means that the organisation will be able to increase the level of revenue as well as profits.

Marketing

Marketing is one thing that cannot be ignored in an organisation. This is because it defines the kind of attitude the consumers are going to have towards it. Marketing for a company is an area which requires proper planning. This is because if poor planning of the marketing process takes place, the position of the organisation in the market will not be impressive. Therefore, Bendigo And Adelaide Bank Limited should be able to come up with an upgrade of the marketing applied. There is need for the company to change from transactional marketing to relationship marketing.

Transactional marketing is very narrow. This is because it focuses on making transactions happen. This means that this type of marketing has only one objective. The planning and operation of transactional marketing are usually aimed at making instant sales. This means that the advertising and promotional efforts in transactional marketing are aimed at getting the products or services of the organisation in the hands of consumers. This type of marketing is very risky for the organisation. This is because it does not build the required relationships with the market. These criticisms of the transactional marketing have made it necessary for Bendigo And Adelaide Bank Limited to shift focus to relationship marketing. One of the things that the organisation will gain from relationship marketing is the development of a lasting relationship between the organisation and customers. This type of marketing is very useful in fostering customer retention and satisfaction. This means that the organisation will be able to enjoy a long-lasting relationship with its customers. The other benefit is in the scope of the relationship marketing. This means that the organisation’s marketing will not be aimed at making a sale but improving all the aspects of the organisation. The marketing will not only involve one department, but all of the others in an organisation.

Service as a differentiation strategy

Customer service is usually a very important thing in making a business successful. This is because it makes the customers feel appreciated and well taken care of. This will be able to create positive impacts. The positive things about service as a strategy include positive publicity, satisfied Shareholders, better profits, increased workforce pride and morale and increased customer loyalty among others.

Corporate social responsibility

Corporate social responsibility is the other thing that needs to be looked at. It is always important for an organisation to come up with a good corporate social responsibility strategy. Corporate social responsibility refers to the engagement of an organisation in fostering the wellbeing of the society. This means that the organisation involves itself in activities which are generally not for profit, but lifting the welfare of others to better standards. Bendigo And Adelaide Bank Limited has been engaging in environment friendly corporate social responsibility actions. This can be improved to ensure that the organisation also gains in the process. The CSR strategy employed should be able to have an aspect of self interest in it.

Research

Research is a very important tool in the business environment. This is because it allows a business to gather the necessary information on various areas of concern. Research is also important since it gives an organisation the chance to learn about the competitors as well as other external factors affecting it.

Recommendations

Addition of customer value is very important for beating competition in the market. For proper customer value addition, the organisation needs to understand that the process of offering products and services are very useful in determining the way forward. It is important to note that the products and services should be supported by things such as service, reliability and trust. Secondly, the organisation should look past pricing strategy. This means that adding value will be able to play a major role in attracting customers, rather than using pricing as the basis. This means that the prices of the organisation will not be interfered a lot in the effort towards customer acquisition and retention. To succeed in value addition, the management of Bendigo And Adelaide Bank Limited should be able to understand certain factors. One of the things to bear in mind is that customers usually have more knowledge. This means that the customers are always going for the people who are solving their problems. Secondly, the organisation should understand that customers require the sales officers to be a resource to them. They do not just need information on what is being sold but getting assistance on their road towards success. Thirdly, the customers are not concerned fully about the short term situation. This means that the customers are focusing on long term goals. This means that short term result is not the concern of customers. Therefore, the organisation should come up with customer value addition tactics which support the customers in realizing their objectives in general.

Relationship marketing should be implemented immediately. This is because the earlier the relationship marketing is implemented, the better for the benefit of the organisation.

To develop service as a strategy there are several things that the organisation can do. These include developing efficient communication systems, fulfilling promises, listening to customers better, handling complaints considerably, and being helpful, courteous, and knowledgeable.

The reciprocal corporate social responsibility strategy option seems the best for the organisation. This is because it is believed to be two fold. This strategy will ensure that the society is protected while the company’s name in the eyes of the public becomes good.

It is important for Bendigo And Adelaide Bank Limited to utilize market research in planning and implementing certain aspects of the business. Market research will enable the organisation come up with the best market segmentation, targeting and positioning strategies. These are very important strategies in the effort in driving the organisation towards success. The newest market research tools should be utilized to ensure that the best results are obtained.

References