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AIG Bank Marketing Strategies Report (Assessment)

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Updated: May 21st, 2019

Introduction of the background information necessary to understand the marketing situation in the case study

One of the banks in Australia, ING Bank, is known to be one of the major banks capable of lending substantial amounts on credit to willing customers. There was launching of debut securitization by ING Bank Australia an occurrence which is known to be very rare with the company.

This is seen as a strategy geared towards boosting residential mortgage-backed securities. The means of achieving this is by splitting the deal into different tranches. Government agencies have tried this method as means of improving the level of competition which exists amongst mortgage lenders (Rhee and Mehra, 2005, pp 505-515).

Financial position of any institution helps in creating good reputation which could be considered by investors for future loans. Management team focuses on strengths since this is the core which determines the status of each section of the company.

Calculations on financial ratios are basically derived from information obtained from the accounting records. The ratios provide the required guidelines of measuring the progress within any institution and at the same time alert the management on the problems which might occur within different segments of the institution.

The profitability ratios indicate the level of efficiency on how capital is being utilized. Liquidity ratios on the other hand help in indicating the ability of the hospital to continue with its normal operations even in the midst of unexpected problems. Growth ratios are best used in the process of tracking down the financial progress within the hospital (Keegan and Green, 2002).

Literature review on marketing strategies

Financial institutions always have very clear focus on how to venture into new levels and attract more investors since they maintain high quality services and globally respected image. The institutions maintain their values for employees and customers, which helps in improvement of their services.

Quality services are maintained despite numerous branches that are run by the bank. This helps in winning consumers’ confidence irrespective of their locality. The reputation of the organization should be maintained based on excellence of service and quality of the products offered.

Diversification within the financial market helps in maintaining good customer base, this goes along with the intensive research and development. This is a prerequisite in identifying the consumer tastes and could even expand their resources for the purposes of accommodating the low income earners (Laroche, 2010, pp 1-3).

Control on banking rates is one of the major factors which determine whether consumers are able to honestly pay their loyalty towards the organization’s image. Increase on rates will of course either make clients to shy away from buying the services of the bank or feel attracted to the bank.

ING Bank adopted new technologies which assists them in improving their marketing abilities and command. The company’s market share has so much grown on the basis that it has a strong reputation amongst the consumers owing to its involvement in offering residential mortgage-backed securities.

The institutions at times apply the use of customer-value based where global Institutions first of all determines the worth of the products to consumers. In this the institutions are made capable of setting affordable financial rates and decisions convenient to all consumers based on the quality services offered.

However, within the competitive global market the interest rates charged on the basis of costs appear vulnerable to some fraudulent activities, and may present consumers with huge losses. Performance-based pricing is the recommendable alternative since it values quality and consumer interests.

This pricing method also ensures that there is good relationship between seller and buyer based on charges. The buyer has the opportunity of paying only for the level of performance that is given which must be measurable (Rhee and Mehra, 2005, pp 505-515).

The visual imagery of the bank forms a good basis for future development within cross cultural contexts; this has made ING Bank Australia one of the sole leaders in residential mortgage-backed securities. Financial institutions apply the use of accommodative rates for the purposes of providing best banking facilities.

ING Bank utilizes the available resources in providing and winning reputable names. There is need for applying workable marketing strategies for competitive purposes within the financial markets. This help in offering one of the most conducive environments to consumers by treating them as equal partners.

In order to strengthen their foundations, the institutions need to increase their relationships with other stock markets for security reasons. Financial institutions prove to be very creative in terms of coming up with new annual strategies.

This has encouraged more similar companies to follow and emulate ING Bank strategies, hence encouraging differentiation. The institutions most of the time focus on offering quick services for the convenience of both high and low income earners (Rhee and Mehra, 2005, pp 505-515).

Several areas have been identified in this case touching on the role of competition, price and demand in defining marketing strategies applied. Research reveals that a big percentage of Australians now operate accounts cheaply as compared to earlier years (Lee and Dawes, 2005).

Banking service providers focus mainly on economics, policies and strategies which encourages promotional activities, marketing and competition. They also focus on where the general public applies the services in relation to rates offered by various institutions (Lee and Dawes, 2005).

The financial rates on services within Australia are no different from other parts of the world except that they regulate and limit on the level of transactions. The prices of service transactions are much lower as compared to the prices from other banking facilities around the world.

The on-line banking services were found to provide easy access to customer transactions and other vital information from financial sector. There is possibility of using lowly rated services towards consumers (Rhee and Mehra, 2005, pp 505-515).

It was discovered of equal importance that the institutions decision to start programs enabling utilization of internet services which led to high rate of operations. It is important to provide consumers with convenient rates which enable smooth flow of transactions.

Most of the consumers find it convenient to use the on-line services to share information; some use it to for the purposes of gathering information, communicating and conducting transactions between companies.

Despite all these services, statistics shows that more people are currently utilizing banking services in Australia and are not even aware of the difference in cost when switching on-line accounts (Lages et al, 2008, pp 304-325).

Evaluate the current marketing strategies for this organization

Service firms require appropriate marketing strategies for the purposes of giving better services to consumers. The move also increases the level of customer loyalty hence increased sales leading towards organizational efficiency.

However, achieving expected level of efficiency requires up-graded managerial skills working hand in hand with superiority of product services being offered. Marketing and operations are always integrated to enhance organizational performance amidst moderation by competitive strategies.

When service organizations experiences high level of strategic fit amongst the three fundamentals namely; operations, marketing and competitive strategies, then higher business performance is guaranteed (Kotler et al, 2010).

The company tried the use of soft sounding methods which granted the required channel for the transactions. A number of comparables were used to develop guidance a midst swaps. The bank at the same time implemented the use of on-line services. The bank resorted to offering best interest rates to investors which provides great benefits towards boosting investor’s savings.

Consumers are provided with better alternatives hence no need for leaving their savings with accounts which pay less interest on savings. Research shows that Australians currently loose over $ 4 billion each year on potential interest through the actions of maintaining their savings on non-interest bearing account.

ING bank is using a special variable introductory rate of over 4% per year on their Saving Maximiser. This presents an offer of 1% over the common standard variable base rate they have been charging.

The bank also utilized the use of promotional activities like the use of “no monthly fees” on those operating on-line accounts. These promotional rates have made many people to open accounts with the bank, the statistics revealed almost 40% of the people responded positively.

Special bonus rates are always dealt with in promotion as fixed contrary to special offer involving a margin which rates above standard variable rate. ING Bank Australia resorted to boosting its residential mortgage-backed securities for the purposes of catering for the level of investor demand (Kotler et al, 2010).

Big deals are made available for those operating as home buyers who are offered cheapest loans through the non-banks. These loan offers are accompanied by an interest options and repayment holidays which is of benefit to those borrowers with specific plans concerning family issues or vacations.

Customers are allowed to borrow up to 95% of their security value; repayment of the loan within half of the stipulated years guarantees a bonus discount rate of 0.15%. The company has laid down strategies to help in overcoming the distractions that might cause inconveniencies to customers.

It was discovered that for the company to achieve all these goals it was necessary it invests thoroughly on its IT department which works tirelessly to protect any financial information data from the customers (Kotler et al, 2010).

Analyze the proposed alternatives detailing the pros and cons of each

One of the proposed alternatives on savings is on-line savings and term deposits. On-line savings makes it easier for an individual to pounce on several opportunities whenever necessary. The on-line accounts gives the advantage of easy switching from one account to another, this is since there are no costs involved. It requires a lot of shopping around for customers to get real benefits.

Term deposits also presents the consumers with the ability to keep away from frequent withdrawals. One disadvantage is that it’s not possible to access savings in case of any emergency, since the penalty seems costly. The advantage of term deposit is that it provides alternatives on the frequency of interest payment.

The higher the frequency on interest payment the higher the return due to the benefits received as a result of compounding.

The other disadvantage is the issue of rolling over at maturity owing to decreasing rates making it necessary to organize close follow-ups. It is important for customers to consider different maturities since banking institutions focuses at particular buckets at any given time (Kotler et al, 2010).

Proposal of recommendations for adoption and outcomes expected to occur as a result of adopting the solutions

Application of these methods assists in providing assurance services to clients who are involved in internet based transactions and is developed by the global accounting profession which is a licensed accounting profession in Australia. The encounter with other new systems like term deposits proved a number of relevant features.

It necessary for the bank to have controlled and sound practices which give conducive environment enabling profitable work with above average assurance in data entry. The transactions developed should have the provision of legitimacy and reliability due to clarity which is involved (Lazer and Shaw, 2000, pp 65-67).

Web-based transactions through Web-Trust services would ensure that the businesses have updated activities after every few hours. This service would help in providing the ability of controlling information, hence maintaining privacy of customers’ personal details like credit card number and personal data.

This provides investors with businesses having easy access to their website in case of any complain, in addition there is enough information they provide in guiding and assisting internal auditors (Levitt, 1983, pp 92-102).

The customers should be provided with insurance, since this makes them continue peacefully with online transactions. Their services are easily understood since there are no technicalities involved. This may seem to provide safe environment to investors transacting their businesses online.

This could assist in boosting confidence since the consumers feel protected from any kind of theft, this acts as good tool for marketing. The encounter also made it clear that Safe trade is a public company hence enjoys government protection (Winn, 2004).

Conclusion and recommendation

The institutions efforts towards evaluation of financial performances from the consumers’ point of view contribute largely to the performance of ING Bank Australia.

The processes through which they deliver services are defined by quality measures, cost of production and time which contributes a lot towards customer satisfaction (Gumbus and Lussier, 2006).

ING Bank paid much attention towards services and satisfaction of customers on their products; they dealt with issues such as complain from customers and product follow up issues. These processes enhance the Institution’s image amongst consumers because of their high performance level.

The institution emphasizes so much on service delivery as one of the important quality drivers. The institution should also focuses on offering good training to its employees for the purposes of ensuring that they are acquainted with the right knowledge which enables them to handle current consumers’ issues.

This made ING Bank to survey the market in order to establish on efficiency of their services to consumers within the market. Monitoring of delivery services should be done through some systems of evaluation such as on-time deliveries.

ING Bank should at the same time implement the use of efficiency as the basis of making conducive charges to its customers (Niven, 2010).

Application of Web Trust in transactional processes should provide business clients with twenty four hours monitoring in order to reduce on the cases of liquidation. This would create some level of confidence within investors.

Due to the fact ING bank does not qualify as direct assurance service provider, it should ensure that thorough investigation is done on the background of any business transactions to avoid fraudulent cases. This would ensure that all the risks involved in providing mortgage services are dealt with (Pierre et al, 1999, pp 37-58).

The Institution should expand on its market coverage to cater also for those within the rural parts of Australia. This would help the company to build on its brand name and also increase the number of loyal clients who would contribute towards the company’s profitability.

The banking systems should further be upgraded in order to avoid situations whereby consumers find it very inconvenient to cater for their financial emergency requirements.

They should at the same time develop detailed plan which enables them disseminate effective services through communication. Determining the level of success of previous campaigns would help in setting up more workable plans for the benefit of future customers (Pierre et al, 1999, pp 37-58).

ING Bank should make crucial improvement on some customer metrics such as timing of delivery services; this is since such metrics contributes tremendously towards customer satisfaction. The improved performance of ING Bank could be attributed to positive responses received from potential consumers.

The company needs to place lots of emphasis on customer views and comments towards their services. This could be done efficiently through conducting of customer surveys which makes it easier to analyze consumer tastes, preferences and expectations.

Reference List

Keegan, M. & Green, K., 2002. Global marketing management. NY: Prentice hall.

Niven, P., 2010. Customer perspective. EPM Review. Web.

Pierre B., Hulbert, J.M. & Pitt, L., 1999. To Serve or Create? Strategic Orientation Toward Customers and Innovation. California Management Review 42 (2), pp 37-58.

Rhee, M & Mehra, S., 2005. Aligning operations, marketing and competitive strategies to enhance performance: An empirical test in the retail banking industry. The international Journal of Management science, (34), pp 505-515.

Lages, L. F., Jap, S., & Griffith, D. A., 2008. The role of past performance in export ventures: A short-term reactive approach. Journal of International Business Studies, 39(2), pp 304–325.

Laroche, M., 2010. Globalization, Culture and Marketing Strategy: Introduction to the Special issue. Journal of Business Research, (2), pp 1-3.

Lazer, W., & Shaw, E. H., 2000. Global marketing management: At the dawn of the new millennium. Journal of International Marketing, 8 (1), pp 65–77.

Lee, D. Y., & Dawes, P. L., 2005. Guanxi, trust and long-term orientation in Chinese Business markets. Journal of International Marketing, 13 (2), pp 28–56.

Levitt, T., 1983. The globalization of markets. Harvard Business Review, (61), pp 92 102.

Winn, J., 2004. Making It Big case study. Entrepreneurship theory and practice. CA: Baylor University Press, pp 185-196. Print.

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