Marketing assignment essay on: Marketing on Financial products

Marketing assignment essay on: Marketing on financial products

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(a) Purpose of brand strategy of ABC bank

As per the case suggests, the prime purpose behind the branding strategy undertaken by ABC bank is to position the bank in the Australian market as a bank which is a financial advisor of the customer rather than merely a financial institution. The aim of this strategy of the management of the bank is to enhance the personal, positive and long term relationship with its customers so that they can become brand loyal. This strategy of the bank is directed to improve its goodwill in the market, which will be reflected in the financial performance of the bank quite prominently.Buy Assignment Australia

            In order to ensure the success of the strategy, Andrew, new chief marketing officer of the bank, needs to induce some crucial structural and operational changes within the organizations. He also requires redesigning the marketing and branding campaigns and makes them more Customer Centric so that the intention of the bank regarding better Customer Service can be highlighted. As the lack of customer awareness regarding new campaign of the bank regarding improved customer care services is the prime problem faced by the bank, Andrew needs to adopt some personal marketing measures such as mobile marketing, and e-marketing (McDaniel and Gates 1998).

(b). some of the prime components of the marketing strategy of Andrew can be drafted as below:

(1) The management is needed to retrieve data regarding its loyal customers as well as customers that have recently switched to another bank. The marketing strategy of the organization should be focused on both, retaining existing customers and attracting new customers.

(2) After segmentation, the marketer is required redesigning its market plan and targeting the segmented customer more intensively.

(3) The prime focus of the marketing campaign of the organization is on promoting and spreading awareness among customers regarding new initiatives of the bank in the field of customer satisfaction.

(4) There are different channels of marketing communication such as television, radio, news papers, Magazines, and so on, which can be adopted by the Bank for making the marketing strategies more effective and beneficial.

(5) In addition to this, the marketing plan of the bank must also include other effective sources of marketing communication measures such as internet and mobile phone marketing measure.

            Branding and positioning of the organization is also an important component of the marketing plan presented by Andrew. In this aspect, the organization is required to position itself as a customer centric brand in order to avail competitive position within the market place. In direction to this, in the marketing campaign the bank needs to highlight its concern about convenience of customers. Along with this, timely evaluation of the performance of marketing plan is also one of the major components of the market plan for ABC bank.

In order to sell Big Ted concentrated Australian Equity Funds to the XYZ Industry Super Funds, three different people designated at different places are needed to be negotiated. These personals are having different needs, requirements and perspectives regarding this transaction. For a marketer it is quite essential to understand their core needs and design different marketing message and sales techniques for the purpose of attracting them. Different sales techniques and sales message for the each of the target customers can be discussed as below:

Sales message and technique for Tom White: Tom White is a technical specialist, who is responsible for access the potentiality BigTed. For the purpose of dealing with him the company needs to design a different sales message. In this message the company should highlight the potential benefits of acquiring the Big Ted and its past performances. The exploration of all the positive aspects and worthiness of the fund in terms of return on investment will make the product attention gainer for Tom White. In this context, the prime technique used is the direct meeting. In this face to face meeting, all the past data and records of the company should be presented to the target, i.e. Tom in the case and prompt him to make the purchase (Ehrlich and Fanelli 2012)  Get Sample Assignment

Sales message and technique for Sarah Brown:  Sarah Brown is a risk manager, who is allocated with the responsibility of assessing risk of involving Big Ted within the portfolio. The sales message prepared for him will include all the advantages of the funds in terms of minimization of risk. Through different marketing measures, the message will be communicated that inclusion of fund in the company portfolio will be helpful in hedging risk and improve the efficiency of the fund. For the purpose of selling the portfolio to Brown, E-marketing will be the most crucial option. From most of the risk managers evaluate different components of their portfolio, on the basis of information related with returns on the investment. Owing to this reason, they are quite attentive towards information retrieve through internet. In this way, promotion through internet will be the most crucial technique of selling in the case (Tyson 2009).

Sales message and technique for Brian Black: In the case of Brian Black, who is the head of manager selection, the sales message designed for the purpose exploring long term implication of adding this fund in the portfolio of the organization. This sales message will be directed to reveal the positive implication of this decision over optimization of resources. The sales technique used in this case is personal selling. In this selling practice, the target customer is approach directly and all the benefits of funds is explained to him in face to face meeting (Schiffman 2007).

b). Yamba Credit union

            In direction to reveal the perception and requirements of customers it is quite essential for the marketer to have proper understanding of different style of questioning. Effective questioning method helps the marketer to design its different marketing strategies in the most effective manner. For the purpose of understanding of the need and demand of the customers, there are three different types of questioning styles have been proposed to be used.

(1) Closed ended questions: In this type of questions, potential customers are provided with some crucial and effective scope of answering the question. In this style, questions that require detailed and subjective answers are asked with the prospect. For instances, the candidates will be asked about qualities of credit cards, the answers of the respondents are quite subjective by nature (Kaden 2009).

(2) Open ended Questions: In this type of questioning, questions, which are having some specific options, are asked to the respondents. For instance, when respondents are asked that whether they avail some specific services from their service providers, they will answer either yes or no. in this the span of answering becomes quite limited in this type of questioning (McDaniel and Gates 1998).

(3) Conditional questioning: In this questioning, a particular condition is presented in front of the respondent and answer of them in that condition. For instance, the question, ‘If we offer lower interest charges in comparison to your existing credit card service provider, would like to switch your brand?’, will be categorized in this conditional type of questioning (Bradburn,  Sudman and Wansink 2004).

Assignment Expert AustraliaYamba Credit Union is seeking for lunching of new cash management account (CMA). In order to make this product successful within the market place, the company focuses over young people who are quite positive in thinking big and making investments. For the purpose of attracting this target group the company is recommend to use the measures of social media such as Facebook, Twitter, Linkedin and so on (Rogers 2001). The social media will be the most suitable method of targeting such population. The increasing awareness and positive perceptions regarding different social media sites on Internet in youth is one of the major factors that proves this measure quite effective in having communication with target customers of the organizations. In order to promote the product with the help of social media websites, the organization needs to make a personal ID on such websites and try to connect with majority of people (Shimp 2008).

Assignment Expert Australia            Along with this sponsorships of events, fairs, competitions and other social gathering is also can be proved as an crucial and effective measure adopted by the company for targeting youth. The sponsorship of different social events enables the company to register its presence among a mass population and as in such events, there is a significant participation of youth community, this method will be proved quite effective in maintaining an effective communication with target customers (Hackley 2010).      

The buying behavior of consumer casts a significant impact over designing and success of a marketing campaign. Different elements of a campaign, such as selection of advertising and promotion channel, branding and positioning strategy, targeting measures, and so on can be affected quite significantly through buying behavior of a customer. In the presented case, Jenny is an owner of an interior designing store in Yamba, who loves to travel across different region. The buying behavior shown by her is quite different as she likes to have a financial facility through which she can retrieve money anytime and anywhere. Along with this, with a Cash Management Account she needs easy portability and accessibility. In order to induce Jenny to buy CMA, it is quite essential for the marketer to highlight the feature of portability of the account anywhere quite intensively (Ennew and Waite 2012). For this purpose, in the marketing campaign, the account should be positioned as international accounts which can be maintained and accesses from anywhere. In addition to this, while positioning of the brand, the management of the organization requires to highlight the features of the product, which are related with transferability and liquidity of the account so that the account can be positioned as accounts of traveler (Lancaster and Massingham 2010). As Jenny loves to travel across different countries, she frequently requires foreign exchange. In this context, the facility of conversion of Cash Management Account into foreign exchange will be an utmost factor that will prompt Jenny to buy this account. In line to this, the inclusion of this feature in the branding campaign will be proved quite effective for the organization (Steckstor 2011). 

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Broadly in above presented marketing and communication program, there are four important promotional tactics and communication channels have been taken into account. Rationale behind the adoption of such crucial measures and communication channels can be presented as below:

Media: At the initial level, for the purpose of spreading awareness regarding newly launched product, print media and electronic media have been used quite significantly. In direction to this, different ad campaigns in television and newspapers have been run. The prime rationale behind the adoption of this measure is that the reach of print and electronic media is quite wide. The bank can cater a wider population through this measure. For the introduction of the product in the market, this communication will be the most suitable.

Direct and personal marketing: In this measure, the company started to communicate through personal meetings. The company adopted this measure because with the help of this channel the company strives to make long term relationship with customer, which is one of the most crucial tactics in the marketing of financial products (Buttle 1996).

E-marketing: In order to explore the market more deeply, in the later stages of the campaign, the company started to use internet for the purpose of having communication with potential customers. In the expansion of this, marketing through social media can be proved quite helpful for the organization to communicate with youth target market.

Sponsorship and hosting of events: These are quite expensive channel of communication for the organization. In the last stage of the campaign, these channels of communication have been used. This method is quite helpful method for presentation and promotion of products and service to the mass population. With the help of this measure, the organization will be able to make its products popular among target customers in the most efficient manner (Stuart, Sarow and Stuart 2007).

 Section 2

Answer (a) Macro environmental and industry analysis:

Assignment Help Australia            Virgin Group is one of the most prominent groups operating within Australia. It has now stepped into credit card industry of the country with its low rate credit cards. The credit card industry of the country is one of the most lucrative and attractive business industries. The industry has registered some intensive growth in recent past five years. In recent period of time, due to robust economic conditions of the country, the credit industry of the country has attained some intensive growth. During the year 2006-2007, total value of transactions through credit cards was enhanced by 10%. In existing period of time also, about $30 million have been accumulated in debt raised through credit cards. The macro environment for the product in existing period of time is quite positive, which is making the industry quite attractive for new players. The policies of government and apex bank of the country is also quite positive and encouraging players for operating within the country. Reserve Bank of Australia provides various exemptions to a new player to get established in industry. As per the recent press release of NAB, Spending habits of Australians are supporting the development of credit card industry of the country. As per the report, about 45% of people of the country prefer to use credits cards while retail shopping, paying bills and dining out. Along with credit cards, the usage of debits cards is quite popular within the country (Spending habits of Australians 2012). From the perspective of economic conditions also, the existing position of the country is quite positive. However, recent global economic downturn has affected the norms of the business of financial industry of the country. The credit card industry has also got suffered during the period. However, after that period of time, the economy of the country has made some crucial recovery.      

            In this way, from the perspective of macro economics conditions, the credit card industry of the country possesses some of the positives sign for growth and success.

Answer (b) Competitive position of Virgin’s low rate credit cards:

            The attractiveness of the credit card industry and lower entry barriers in the industry are prompting different other companies to company enter into the market. In competitiveness of the industry is quite higher as there are a number of different domestic and international players operating within the industry. Prime competitors of Virgin money’s credit cards in Australia are Big Four (i.e. four largest banks in the industry that have catered about 85% of total financial industry of the country). These four banks are National Australia Bank, Commonwealth Bank, also known as CBA (government owned until 1996), Westpac, and Australia and New Zealand Banking Group, or ANZ. These banks are dealing within a number of different types of financial products such as debit card, credit card, insurance, consumer finance, long term and short term loans and so on. In the context of Credit card industry also, Virgin money is required to face competition provided by these banks quite intensively.

Assignment Writing Tutor Australia            In addition to this, there are some other important financial institutions operating within Australian market which are catering some significant portion of country’s credit card industry. Among such player different foreign banks such as Barclays PLC, HSBC Holdings plc, Lloyds Banking Group plc, and JPMorgan Chase are some of the prominent institutions that are registering some crucial problems for the position of the country within the existing market place. These players have been getting themselves established within the market quite prominently for many years. In such conditions, Virgin Money that has launched low rate credit cards in such highly competitive and tough market place, is required to face some crucial competitive problems within the market (Tumbarello and Takáts 2009).        

Answer (c) SWOT Analysis of Virgin’s low rate credit card:

            In order to get established within the market place, the company has launch low rate credit cards. For the purpose of analyzing the compatibility of this new product within the market, SWOT analysis framework will be the most suitable strategic tool.

Strength: the primary strength of the product is the brand name associated with the product. Virgin is considered as highly reputed brand within Australia. There are different business industries in which, Virgin Group has registered significant success. This experience, reputation and trust of consumers on the group, make the brand strong among its competitors. In addition to this, low prices, low maintenance charges, and 0% interest rate in starting 3 months of launching are some of the prominent factors that provide strength to the product within the competitive market place (Virgin Low Rate Credit Card 2012).

Weakness: Along with strengths, there are some weaknesses also associated with the product. The first and foremost weakness of the product is the brand personality of Virgin groups and its product. Traditionally, the group has articulated the personality of the brand as fun loving, unconventional, rule breaker and feisty person. For business personal, sometimes becomes quite hard to believe and accept such personality extremes. In addition to this, as the product is recently launched in the market, the reach of the product within the market is quite low which is a major weakness of this product of the organization.

Opportunities: In the market of Australia, Virgin group is having some of intensive opportunities for its low rate credit cards. For instance, the economic conditions of the country are pretty good and purchasing power of people of country has also been increased quite intensively in recent period of time. In addition to this, the scenario related with E-commerce within the country has also been advanced as awareness and usage of plastic money such as debt card and credits cards by people have also been enhance quite significantly within the market place. These all the conditions are providing some crucial opportunities for the organization within the market (Virgin Money Low Rate Visa Credit Card 2012).

Threats: in the market of Australia, the product is also required to face some critical threats. For instance, intensive competition provided by different pre established banks and other financial institutions such as NAB (National Bank of Australia), HSBC, Barclays and so on can affect the business of the organization. In addition to increasing rate of E-commerce related crimes and frauds, can be proved as a reason behind negative attitude towards credit cards in the long run.

Answer (d) Segmentation:

Buy Assignment Australia            Before designing a marketing campaign, it is quite essential to have proper segmentation process through which, a specific target segment can be undertaken. For the purpose of segmenting the target population, different criteria, such as demographic and psychographic characteristics can be taken into consideration. On the basis of such criteria three important segments for the company can be divided.

(1)   Middle income group families

(2)   Businessmen who travel for their business

(3)   Students class who take credit cards as a status symbol

 These target segments are quite attractive for Virgin group. The rationale behind the attractiveness of classified segments is discussed as below:

Middle income group families: This segment can be proved quite important and effective segment for targeting. It is due to the reason that income of this segment is not quite enough for accomplishing their needs. In this context, credit cards can be an attractive option for them. Moreover low rate charged on the card is also a factor that can prompt the customers from this segment towards the purchasing of the card (Akpan 2008).

Businessmen: The Company can also target this segment as the card can be able to fulfill their requirements. As potential customers from this segment class are businessmen who are required to go on tours quite frequently. Owing to this reason, it is not quite feasible for them to carry cash and lots of debit card. Along with generally credits cards charges high interest rate. In context this, low interest rate credit cards can be a good option for them as they need to pay low interest rates on such cards (Leonard 2011).

Students: Students class can also be targeted as an attractive segment class because nowadays having different credits cards have been started to be counted as status symbol. In context to this, students are quite prompting towards having credit cards. Along with this, as high interest rate charged on credit card is the major problem faced by this class. In context to this, the low rate credit cards can be a good and promoting option for them.

 Answer (e) Marketing mix for Virgin low rate credit cards:

            Marketing Mix for Virgin low rate credit cards is consisted of four P’s of marketing. These four P’s of marketing in the context of virgin’s newly launched credit cards can be presented as below:

Product:

Get Sample Assignment            The product for the campaign of the company is low interest rate credit card. The credit card provides the opportunities of purchasing things on credit. The customer is not required to pay to the shopkeeper or service provided. In lieu to customer, Credit Card Company pays bills. The customer is required to pay to the company after a specific period of time with pre specified interest rate. The prime feature of the product is that the interest rate charged on the product is not quite high.

Price

            As the company is running in its introductory phase in the market, the company has undertaken market penetration strategy for setting its prices. In this method, the company keeps its price low and targets to cater a mass market. As per this strategy along with low interest rates, the company has also kept maintenance charges lower as compared to competitors.

Place:

The company has launched the marketing campaign at a broad level. In different major locations of the country such as Sydney, Melbourne, Perth and so on, the product is planned to be launched simultaneously. However, in the starting phase the inclusion of small towns and cities are not taken into considerations for the purpose of launching of the product.

Promotions:

            For the purpose of promoting the products across the country, the company has undertake integrated marketing communication channels in which, different market communication channels such as print media, electronic media, internet marketing, direct  marketing measure and so on. However, as the company is undertaking market penetration strategy, focus of the company over promotions will be comparatively less (FitzGerald and Arnott 2000).

            These are some of the crucial elements that can explore the marketing mix of the organization quite prominently.

Answer (f)

            In the light of presented marketing mix, it can be considered that company needs to keep its prices and promotion low and with the help of this it needs to cater mass market. In the existing marketing conditions, presented factors of Marketing Mix are quite effective for the establishment of the company in the market. However, there are some weak points in this marketing mix plan of the organization. For instance, instead of launching of the product at country level, the company should launch the product only in some specific cities so that response of customers, regarding products and its features, can be retrieved quite intensively. On the basis of this information, the company can redesign its product features and make it more effective (Varey 2001).

            Along with this, for the purpose of promoting the product more intensively, the company has given an introductory offer to its customers. As per this offer, the company has offered the 0% interest rate for first three months for its customers. The introduction of this offer has made the promotion element of the marketing mix more effective and elaborated. The measure of price promotion has also been added in the marketing mix of the organization.

In direction to make a product successful and popular in the market place, it is quite crucial for the organization to have better and effective communication and promotional strategies. In context to this in the marketing of the financial product the role of communication channels and branding and positioning strategies are quite vital and effective. In this light of this discussion, the presented case is quite aimed to articulate the branding, promotion, and communication strategy for a bank XYZ, which is about to launch a new package of Mortgage loans, Cash Management Accounts, Credit Cards and General Insurance and its related product. The bank is striving for establishing an effective communication with its customers. For this purpose, the bank is designing an eight-week promotion campaign before the launching of products. The tactics and communication strategic plan for the company can be presented as below:

Sample Assignment

Week Tactics and strategy
1st Week During the first week of the campaign, the prime focus of the marketer will be on inducing awareness among people. In this context, the company will be focus upon using print media such as news paper, and magazines for communicating the product of the company within the marketing.
2nd Week In the second week, the company will intensify its marketing campaign. In this week, the company will undertake different updated channels of communication. For instance, different important measures such as television and radio will be taken into account.
3rd week After undertaking different print and electronic media communication measures, in this week, the company will prefer communicating via internet and mobile phone so that potential customers can be targeted quite personally. For a financial institutional maintaining direct and personal communication with customer is quite necessary (Smith, Pulford and Berry 1999).
4th week During this week also the company will focus on making direct and personal relationship more intensive. For this purpose, the company will contact its potential customer through its sells representatives. In this measure, the company will start to have personal and group meetings with customers for making them aware regarding its products and services.
5th week After communicating with customers quite personally, the company will start its e-marketing campaign. In direction to this, the company will market its products through e-mails and websites so that larger target market can be catered.
6th week In this week, the company will focus upon more effective and intensive measures of social media marketing. In this context, the company will market and promote its products through different social networking websites such as facebook, twitter, orkut, linkedin and so on (Motiwala 2008).
7th week In this week, the company will make the promotion and advertising strategy more intensive by making more and direct investments. In this direction the organization will sponsor any social gatherings like contests, cultural and sporting events, and fairs. Such measures will allow the organization to cater mass market.
8th week This week will be the last week of pre launching marketing communication program. In this week, the company will assess all the marketing communication channels used by it for communicating with its customers. In this way, the company will focus on brand building and its positioning within the mind of customers (Smith and Taylor 2004).

 This is the eight-week communication program in which different tactics and communication channels has been used by the organization to communicate some intensive and unique features of newly launched, package of different financial products.

Assignment Writing Tutor AustraliaBroadly in above presented marketing and communication program, there are four important promotional tactics and communication channels have been taken into account. Rationale behind the adoption of such crucial measures and communication channels can be presented as below:

Media: At the initial level, for the purpose of spreading awareness regarding newly launched product, print media and electronic media have been used quite significantly. In direction to this, different ad campaigns in television and newspapers have been run. The prime rationale behind the adoption of this measure is that the reach of print and electronic media is quite wide. The bank can cater a wider population through this measure. For the introduction of the product in the market, this communication will be the most suitable.

Direct and personal marketing: In this measure, the company started to communicate through personal meetings. The company adopted this measure because with the help of this channel the company strives to make long term relationship with customer, which is one of the most crucial tactics in the marketing of financial products (Buttle 1996).

E-marketing: In order to explore the market more deeply, in the later stages of the campaign, the company started to use internet for the purpose of having communication with potential customers. In the expansion of this, marketing through social media can be proved quite helpful for the organization to communicate with youth target market.

Sponsorship and hosting of events: These are quite expensive channel of communication for the organization. In the last stage of the campaign, these channels of communication have been used. This method is quite helpful method for presentation and promotion of products and service to the mass population. With the help of this measure, the organization will be able to make its products popular among target customers in the most efficient manner (Stuart, Sarow and Stuart 2007).

Section 2

Answer (a) Macro environmental and industry analysis:

Assignment Help Australia            Virgin Group is one of the most prominent groups operating within Australia. It has now stepped into credit card industry of the country with its low rate credit cards. The credit card industry of the country is one of the most lucrative and attractive business industries. The industry has registered some intensive growth in recent past five years. In recent period of time, due to robust economic conditions of the country, the credit industry of the country has attained some intensive growth. During the year 2006-2007, total value of transactions through credit cards was enhanced by 10%. In existing period of time also, about $30 million have been accumulated in debt raised through credit cards. The macro environment for the product in existing period of time is quite positive, which is making the industry quite attractive for new players. The policies of government and apex bank of the country is also quite positive and encouraging players for operating within the country. Reserve Bank of Australia provides various exemptions to a new player to get established in industry. As per the recent press release of NAB, Spending habits of Australians are supporting the development of credit card industry of the country. As per the report, about 45% of people of the country prefer to use credits cards while retail shopping, paying bills and dining out. Along with credit cards, the usage of debits cards is quite popular within the country (Spending habits of Australians 2012). From the perspective of economic conditions also, the existing position of the country is quite positive. However, recent global economic downturn has affected the norms of the business of financial industry of the country. The credit card industry has also got suffered during the period. However, after that period of time, the economy of the country has made some crucial recovery.      

            In this way, from the perspective of macro economics conditions, the credit card industry of the country possesses some of the positives sign for growth and success.

Answer (b) Competitive position of Virgin’s low rate credit cards:

            The attractiveness of the credit card industry and lower entry barriers in the industry are prompting different other companies to company enter into the market. In competitiveness of the industry is quite higher as there are a number of different domestic and international players operating within the industry. Prime competitors of Virgin money’s credit cards in Australia are Big Four (i.e. four largest banks in the industry that have catered about 85% of total financial industry of the country). These four banks are National Australia Bank, Commonwealth Bank, also known as CBA (government owned until 1996), Westpac, and Australia and New Zealand Banking Group, or ANZ. These banks are dealing within a number of different types of financial products such as debit card, credit card, insurance, consumer finance, long term and short term loans and so on. In the context of Credit card industry also, Virgin money is required to face competition provided by these banks quite intensively.

Buy Sample Assignment            In addition to this, there are some other important financial institutions operating within Australian market which are catering some significant portion of country’s credit card industry. Among such player different foreign banks such as Barclays PLC, HSBC Holdings plc, Lloyds Banking Group plc, and JPMorgan Chase are some of the prominent institutions that are registering some crucial problems for the position of the country within the existing market place. These players have been getting themselves established within the market quite prominently for many years. In such conditions, Virgin Money that has launched low rate credit cards in such highly competitive and tough market place, is required to face some crucial competitive problems within the market (Tumbarello and Takáts 2009).        

Answer (c) SWOT Analysis of Virgin’s low rate credit card:

            In order to get established within the market place, the company has launch low rate credit cards. For the purpose of analyzing the compatibility of this new product within the market, SWOT analysis framework will be the most suitable strategic tool.

Strength: the primary strength of the product is the brand name associated with the product. Virgin is considered as highly reputed brand within Australia. There are different business industries in which, Virgin Group has registered significant success. This experience, reputation and trust of consumers on the group, make the brand strong among its competitors. In addition to this, low prices, low maintenance charges, and 0% interest rate in starting 3 months of launching are some of the prominent factors that provide strength to the product within the competitive market place (Virgin Low Rate Credit Card 2012).

Weakness: Along with strengths, there are some weaknesses also associated with the product. The first and foremost weakness of the product is the brand personality of Virgin groups and its product. Traditionally, the group has articulated the personality of the brand as fun loving, unconventional, rule breaker and feisty person. For business personal, sometimes becomes quite hard to believe and accept such personality extremes. In addition to this, as the product is recently launched in the market, the reach of the product within the market is quite low which is a major weakness of this product of the organization.

Sample AssignmentOpportunities: In the market of Australia, Virgin group is having some of intensive opportunities for its low rate credit cards. For instance, the economic conditions of the country are pretty good and purchasing power of people of country has also been increased quite intensively in recent period of time. In addition to this, the scenario related with E-commerce within the country has also been advanced as awareness and usage of plastic money such as debt card and credits cards by people have also been enhance quite significantly within the market place. These all the conditions are providing some crucial opportunities for the organization within the market (Virgin Money Low Rate Visa Credit Card 2012).

Threats: in the market of Australia, the product is also required to face some critical threats. For instance, intensive competition provided by different pre established banks and other financial institutions such as NAB (National Bank of Australia), HSBC, Barclays and so on can affect the business of the organization. In addition to increasing rate of E-commerce related crimes and frauds, can be proved as a reason behind negative attitude towards credit cards in the long run.

Answer (d) Segmentation:

            Before designing a marketing campaign, it is quite essential to have proper segmentation process through which, a specific target segment can be undertaken. For the purpose of segmenting the target population, different criteria, such as demographic and psychographic characteristics can be taken into consideration. On the basis of such criteria three important segments for the company can be divided.

(1)   Middle income group families

(2)   Businessmen who travel for their business

(3)   Students class who take credit cards as a status symbol

 These target segments are quite attractive for Virgin group. The rationale behind the attractiveness of classified segments is discussed as below:

Middle income group families: This segment can be proved quite important and effective segment for targeting. It is due to the reason that income of this segment is not quite enough for accomplishing their needs. In this context, credit cards can be an attractive option for them. Moreover low rate charged on the card is also a factor that can prompt the customers from this segment towards the purchasing of the card (Akpan 2008).

Essay Writing Tutor SydneyBusinessmen: The Company can also target this segment as the card can be able to fulfill their requirements. As potential customers from this segment class are businessmen who are required to go on tours quite frequently. Owing to this reason, it is not quite feasible for them to carry cash and lots of debit card. Along with generally credits cards charges high interest rate. In context this, low interest rate credit cards can be a good option for them as they need to pay low interest rates on such cards (Leonard 2011).

Students: Students class can also be targeted as an attractive segment class because nowadays having different credits cards have been started to be counted as status symbol. In context to this, students are quite prompting towards having credit cards. Along with this, as high interest rate charged on credit card is the major problem faced by this class. In context to this, the low rate credit cards can be a good and promoting option for them.

 Answer (e) Marketing mix for Virgin low rate credit cards:

            Marketing Mix for Virgin low rate credit cards is consisted of four P’s of marketing. These four P’s of marketing in the context of virgin’s newly launched credit cards can be presented as below:

Product:

            The product for the campaign of the company is low interest rate credit card. The credit card provides the opportunities of purchasing things on credit. The customer is not required to pay to the shopkeeper or service provided. In lieu to customer, Credit Card Company pays bills. The customer is required to pay to the company after a specific period of time with pre specified interest rate. The prime feature of the product is that the interest rate charged on the product is not quite high.

Price

            As the company is running in its introductory phase in the market, the company has undertaken market penetration strategy for setting its prices. In this method, the company keeps its price low and targets to cater a mass market. As per this strategy along with low interest rates, the company has also kept maintenance charges lower as compared to competitors.

Place:

The company has launched the marketing campaign at a broad level. In different major locations of the country such as Sydney, Melbourne, Perth and so on, the product is planned to be launched simultaneously. However, in the starting phase the inclusion of small towns and cities are not taken into considerations for the purpose of launching of the product.

Promotions:

            For the purpose of promoting the products across the country, the company has undertake integrated marketing communication channels in which, different market communication channels such as print media, electronic media, internet marketing, direct  marketing measure and so on. However, as the company is undertaking market penetration strategy, focus of the company over promotions will be comparatively less (FitzGerald and Arnott 2000).

            These are some of the crucial elements that can explore the marketing mix of the organization quite prominently.

Answer (f)

            In the light of presented marketing mix, it can be considered that company needs to keep its prices and promotion low and with the help of this it needs to cater mass market. In the existing marketing conditions, presented factors of Marketing Mix are quite effective for the establishment of the company in the market. However, there are some weak points in this marketing mix plan of the organization. For instance, instead of launching of the product at country level, the company should launch the product only in some specific cities so that response of customers, regarding products and its features, can be retrieved quite intensively. On the basis of this information, the company can redesign its product features and make it more effective (Varey 2001).

University Assignment Help Australia            Along with this, for the purpose of promoting the product more intensively, the company has given an introductory offer to its customers. As per this offer, the company has offered the 0% interest rate for first three months for its customers. The introduction of this offer has made the promotion element of the marketing mix more effective and elaborated. The measure of price promotion has also been added in the marketing mix of the organization.

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