Research Objectives
The assignment is a study about launching of a new consumer product and its commercialisation. The study is done against the background of Bank of Cancer Research, Australia which is to fund cancer research and act one the framework of the commercial banks. The paper opens with the research objectives followed by a study of the STP. This is followed by the customer based model and non profit brand equity, both by Keller. The final section is the study of the marketing mix taking Bank of Cancer Research as the example. The paper draws examples from Bank of Queensland and Citibank, USA in order to examine the workings of commercial banks.
The research objectives of the paper are as follows:
- The first object is to help in the launching a bank which is able to use the profits of other banks towards cancer research. The huge profits from banks in Australia and abroad can be used to fund researches that will help in saving of millions of lives by the bank of Cancer Research upon completion.
- The second objective is to keep the research work going so that the research can help in yielding sustainable results in the future.
- The third objective is to attract the investments from philanthropic investors who can fund purchase of a bank which can be used to provide services. The revenue generated from the services can be invested in cancer research.
- The organization will work on profit differentiation theory where there will be tow products which will be marketing according to the aim, for generating profit like a bank or for raising fund towards cancer research. The ultimate use of the product will determine the marketing and the type of market segmentation (bankofcancerresearch.com, 2017).
Bank of Cancer Research should first create awareness about its aims and objectives in the market. The bank must first consider the competitive environment of the banks like political, economical, social and technological before entering the market. For example, the cancer bank can request donations from people in order to earn them tax benefits. The Australian Taxation Office allows tax rebates on donations to organizations having deductable gift receipts (Gifts and donations, 2017). The cancer bank can enter the market and approach people to donate to earn tax benefits. Thus, the organization can amass huge donations and help the donors to save taxes.
It must create awareness about the importance of cancer research and its future benefits. The awareness will help the bank to generate donations from several commercial banks which will research its medical researchers. The commercial banks have huge customer base who buy products and services from them that result in huge revenue. The banks donate huge amount of money as a part of their social responsibilities which support social activities and researches like leukemia research and researches to find more sustainable solution for cardiac ailments. Bank of Queensland donated an amount of $5000 to the Leukaemia Foundation of Queensland. Thus, Bank of Cancer Research can enter the market with the help of the commercial banks. The cancer bank can promote its activities to raise awareness among the consumers of other banks which can also allow it to attract donations (Bank of Queensland, 2017). The charitable institution can also approach marketing professional firms by Nelson Research to carry out marketing analysis for it to frame an appropriate market entry strategy (Nelson Research Inc, 2017).
Segmentation:Demographic segmentation:
Income segmentation:
The commercial banks segment their markets according to the income and the purchasing power of the customers. For example, the Citigold savings account can be held by identities who can maintain a balance of $77405 while a normal savings account comes at a monthly balance of $100(online.citi.com, 2017). The bank is known for its value proposition and good practices among its customer segments. The bank earns huge revenue through its segmentation and formulation of appropriate financial products. The other banks also segment their markets in the similar fashion to cater to the market.
Generations:
Creating Awareness and Generating Donations
The banks make products according to the age of the account holder or the loan borrower. For example, the credit cards for the younger generations have more petrol refueling and return on shopping facilities. The credit cards meant for the older generations are designed keeing in view their safety and have facilities like insurance covers. Cancer research requires huge amount of donations which a new organization like cancer bank may find difficult to raise. Thus, the cancer bank approach people especially the young generations who are more charitable towards donating to support cancer research.
Psychological segmentation:
The commercial banks segment their customer base based on the psychology and lifestyle of the customers and makes products suiting their needs. The banks bundle products with diverse facilities to suit the needs of the professionals. For example, Citibank Savings Plus Account allows the customers to carry out transaction both on the internet, by phones and through ATM. The savings account in order to match the lifestyle of the professionals, allow online bill payments and foreign exchange services. The basic banking package does not offer foreign exchange services and are meant for people whose lifestyle requires less facilities, like laborers(Banking, 2017). The cancer bank can approach the wealthy customers of the commercial banks to generate donations. Thus, it can use the goodwill of these banks to enter the market and get access to their customer bases spread all across the world.
Geographical segmentation:
The global commercial banks like Citibank segment their markets geographically and make products according to the market requirements. The bank is present in over nineteen countries like the United States of America, India, china, Germany, Australia and Brazil. This huge geographical segmentation allow these banks to meet the needs of diverse customer base through their products and generate huge revenue. Cancer Research Bank Australia can tie up with international banks like Citibank which will allow it to enter new markets like India and China. These countries have a healthy business relationship with Australia. So, the cancer bank can use its Australian identity to generate donations from these markets.
The banks segment their markets according to the existing segmentation style stated above. They apply product differentiation to cater to particular target groups and generate huge revenue.
Bank of Cancer Research after segmentation of its markets like a commercial bank, must target the different segments to raise funds. It can also team up with the commercial banks to provide their customers services like arrange cancer awareness events for them to help them in their CSR and promotion of good practices. The commercial banks can then in return allow the cancer research banks access to their high net worth clients which can help them to raise huge sum of money. Thus, the cancer research can help the commercial banks with their CSR and image building and get access to their HNI client base in return. Here cancer research bank is not accepting donations like the other nonprofit organizations. It is receiving the access in return of goodwill creation and CSR services it offers to the commercial banks, one of its target customers.
Market Segmentation
Bank of Cancer Research can approach the HNI clients of the commercial banks to raise huge amount of donations. The next groups of target clients as stated above are individuals who donate money to gain tax rebates. Thus, here the cancer bank is providing tax savings services to the donor and taking the donation in return (Rosenbaum et al., 2016). The next target group of customers can be the people who have adequate disposable income to support philanthropic organizations without availing tax benefits. This target differentiation will help the cancer institute to raise funds from the banks, the HNI clients, the tax saving people and the upper class people to fund its researches on regular basis.
Bank of Cancer Research must position itself as a new brand of great future value which works on profit differentiation theory. The organisation must provide services like CSR services to the banks and their HNI client and help them to strengthen their corporate and social image. The organisation can help its clients to increase their profits by helping them to strengthen and promote their image (Huang et al., 2014). It can thus help these profit seeking organisations to optimise customer purchase decision to buy their services. Thus, the cancer research bank will be able to position itself as a purpose entity which provides services to its clients and raise donations to support cancer research. For example, Bank of America can it access to the HNI clients of the USA who are philanthropic and can donate lump sum amount of money(bankofamerica.com, 2017).
The customers like the commercial banks and the HNI clients will think positively about Bank of Cancer Research as a brand. The latter organisation will help the firms create a positive corporate image which will eventually help them increase their profits. The cancer research bank indirectly will help the organisations to maximise their profits and expand their business. Thus, just like a commercial bank, Bank of Cancer Research will act as a financial institution which raises donations to support cancer research. The commercial banks will hire the CSR promotion services of the cancer bank due to its high quality service and affordable prices in comparison to other banks of same type.
The organisation will charge prices for its CSR and image building services based on the type of services and the client’s profile. It will charge high CSR fees from an international bank like Citibank and from HNI clients. It can also offer promotional services for facilitating their CSR activities and charge for it. Thus, the organisation can charge high fees from international banks for both CSR activities and their promotions. It will charge less if the promotional activities are not included in the package. It will provide capital maximisation in indirect ways which no banks are offering (Hond et al., 2014). It should create and deal with its brand value to develop its own global market.
Psychology and Lifestyle-based Segmentation
Bank of Cancer Research will provide services to organisations and individuals to raise money for cancer research. It will bring in social beneficial services which no commercial bank can offer. The cancer research will help in finding better and sustainable treatments for cancer including sustainable organic medicines. The CSR efforts of the profit seeking organisations supported by Bank of Cancer Research will help in creation of better value for the poor people. Thus, unlike the commercial banks creates value for the society both while providing CSR services to its clients and after raising money in return of the services. It this gap between Bank of Cancer Research and the other commercial bank that differentiates former form the latter as far a value creation in the society is concerned (Crane et al., 2014).
The Customer based brand equity (CBBE) model or Keller’s Brand Equity Model state that the companies need to consider the needs and expectations of the customers in order to build a strong brand image. The organisations should create the appropriate products which generate positive feelings and opinions which in particular to its customers. The customers should have the positive perception about the firm’s products in particulars and not general perception shared by all the products in the same category. This special perception will help the company create strong brand values for its products (Keller, 2016).
Keller’s model for non profit equity strategy emphasises on the brand equity creation by the non profit organisations. Non profit organisations mainly provide social services like education and health care and did not consider brand equity important. They were weak compared to their profit making counterparts and lacked the resources required to promote their activities. The society have realised the value of these organisations and they are strengthening their social images and building brand equities for themselves. Social marketing have evolved as brand promotional tool used by the non profit making organisations to mobilise social awareness. This social awareness yields participation from the society which helps the non profit organisations to carry out activities to help the society (Scherle & Reiser, 2017).
Bank of Cancer Research should create an image of itself which is strong enough to attract a huge amount of donations. It must market its services and not itself to create strong brand equity. It must promote the importance and future benefits of cancer research to create awareness among the people. It should also work with multinational banks and other organisations to get access to their client base and raise huge donation (Harris, Petrovits & Yetman, 2014).
Products:
Geographic Segmentation
The products of the Bank of Cancer Research should be CSR services to the multinational banks and companies which may be bundled with promotional activities. The former should help the two latter organisations to improve their corporate and social image and strengthen their goodwill. Bank of Cancer Research will indirectly help its clients to increase their customer base, their profits and capital maximisation. Thus, just like the commercial banks, Bank of Cancer Research sells provides capital maximisation services to its clients and generates the donation in return which supports cancer research (Noble & Wixley, 2014).
Price:
The organisation must price its CSR and promotion services highly in order to be able to make profits. It can direct this high profit towards cancer research and promotion of the research. It should charge its clients high in order to create the image of premium CSR creator and promoter.
Promotion:
Bank of Cancer Research must promotion itself as a CSR creator and promoter to the multinational organisations including banks. This promotion strategy will create a strong brand equity and differentiate from the non profit making organisations.
Place:
The organisation must promote its services and brand value in and outside Australia. It must create a strong network of suppliers which will help it to operate both within and outside Australia (Fernie & Sparks, 2014). Bank of Cancer Research should also use social networking site aggressively as a place to create and interact with clients internationally (See-To & Ho, 2014).
Conclusion:
Bank of Cancer Research is a great prospective project which has a bright future upon completion. It must act and operate in association with the commercial banks and organisations to be able to raise profits to fund cancer research. It will prove very much beneficial to the society, especially for the cancer patients. The organisation will grow in the future to help companies improve their CSR which is capable of improving the market as a whole. The profit making organisations will in return help the cancer bank to raise more capital. This collaboration between the profit making organisations including bank and Bank of Cancer Research will make treatment of cancer more affordable through their huge investments in the research. Bank of Cancer Research should also aim to expand into new countries and operate as an international cancer research institute to fight cancer globally.
References
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Bank of Queensland. (2017). Boq.com.au. Retrieved 22 May 2017, from https://www.boq.com.au/aboutus_media_20111010a.htm
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Crane, A., Palazzo, G., Spence, L. J., & Matten, D. (2014). Contesting the value of “creating shared value”. California management review, 56(2), 130-153.
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Rosenbaum, S. J., Byrnes, M., Rothenberg, S., & Gunsalus, R. (2016). Improving Community Health through Hospital Community Benefit Spending: charting a Path to Reform.
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The Theory. (2017). Bank of Cancer Research. Retrieved 22 May 2017, from https://www.bankofcancerresearch.com/test-logo-page/
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