Study Of Marketing And Online Marketing - Myassignmenthelp.Com

Question: Discuss about the Study Of Marketing And Online Marketing. Answer: Business Introduction Superannuation funds are various financial plans developed by government or private entities for accumulation of funds and with intention to provide income after retirement (Smith, 2012). These funds are not mandatory and are promoted by the government with tax benefits. This report presents a marketing strategy and comparison of two financial companies to be analysed as superannuation funds. The funds chosen are AMP Superannuation Savings Trust and AustralianSuper. AMP Superannuation Savings Trust is a resident regulated fund. This fund is registered with Australian Prudential Regulation Authority (APRA) and has more than 2 million participants. The fund was formed on 1 July, 1998 and is following the regulations of Income tax authorities (AMP, 2017). AMP capital is the investment manager of fund. AustralianSuper is one of the largest pension and superannuation fund of Australia. The fund has more than 2.2 million members. The fund is run to generate profit for members and because of its size the cost of fund is very low. AustralianSuper is also registered with APRA and has multiple investment managers. (AustralianSuper, 2017). Business Overview AMP Superannuation Savings Trust is a public offer retail fund. The contributions to fund are received through AMP Life and AMP Capital. The fund is qualified for transfers and rollovers. The fund has 8 MySuper products and 290 investment options. MySuperstratergy product has 29% of its total assets. The fund has assets of around $55 billion. This fund invests global bonds, global shares, listed real estate, Australian shares and derivatives (Superguide, 2017). On the other hand AustralianSuper is an industry and public offer fund. This fund has 13 Mysuper products and 13 investment options. In this fund MySuper stratergy has 67% of the total assets. This fund has invested all over the globe with investments of about $120 billion. The investments include financial instruments as well real assets. Shares, airports and shopping centres are part of its portfolio (Superguide, 2017). Comparison Between Both the Companies AMP Superannuation Savings Trust is pension fund, run and promoted by AMP. The shares of AMP are listed on Australian stock exchange. It is financial services enterprise dealing in various products. The company deals in employee and personal plans. The fund believes in developing variety of investment options for different risk profile clients. The company also provides insurance linked plans with whole life or endowment option. AustralianSuper is a superannuation fund with offices all over Australia. It has two divisions. First one is an industry and personal division. Other one is retirement income division. The company believes in sustainable long term investment returns and reducing costs because of large fund size. Apart from managing superannuation fund, the organization deals in financial advice and providing insurance to members. For sustainable growth of organization, it launched social aware investment option for its members. Client Profile Target Group AMP Superannuation Savings Trust is a public fund. It can be offered to general public. Australian Superannuation Savings Trust has 38% female participants and 59% male members. Most of the participants are present in age group 35-44 years. Largest number funds have been too contributed by this group. Superannuation funds benefit by targeting young generation. So target group should be individuals between ages of 25-40 years. On the other hand AustralianSuper is a member only fund. Benefit of member only funds are manifold. It is benefitted by low fees, decisions are not affected by vested interests and profits are for members. It has 39% female members and 59% male members. In this fund most of the subscribers are present in age group of 25-34 years (Superguide, 2017). This fund too should have its target group as young generation between ages of 25-40 years. However both the funds should target all sections of the society. Market Segment Characteristics Affecting Market Segment Market segmentation consists of segregating total customer base of a business in smaller groups based on certain criteria (Sun, 2009). Criteria can be based on demographic, geographic or behavioural factors. Markets can be segmented for these two funds in an identical manner because both have customers of all ages, regions and behaviour biases. Hence various segments and characteristics affecting them are: Demographic Segmentation: Demographic factors play an important role in deciding market segment of these funds. Market segment can be formed by age, income, gender and family size (Gbadamosi, 2013). For these funds, market segments can be high income, young with high income and old couples. These segments are affected by different products offered by the company. As every segment has their unique need. Young are interested in risky and long term investments. Geographic Segmentation: Geography affects an individuals lifestyle. People living in urban centres have better life style and longevity in life. So they are interested in products which have whole life annuities. On the other hand, rural population lives a very hard and risky life. For such individuals pension plans along with insurance and low premium are right products. Behavioural Segmentation: Behavioural biases of an individual affect the choices which are made in selecting and purchasing different products (Solomon Lowrey, 2017). Insurance and pension are generally delayed investments. In this segment price conscious and unaware investors want low premium products. This segment is affected by psychological and social biases of individuals. Cost-Benefit Analysis The process of evaluating benefits and costs associated with a business strategy to analyse the effectiveness of the plan. It consists estimating the costs associated with the proposed strategic proposal and simultaneously calculating all benefits generated by the plan. Both direct and indirect costs as well as benefits should be included in the analysis (Campbell Brown, 2015) After conducting a cost-benefit analysis of marketing strategy of both the superannuation funds, it is concluded the benefits overweight costs in both the cases. However, marketing strategy of AustralianSuper is successful over the other company. Total additional benefits over cost in case of AMP Superannuation Savings Trust are $291960, whereas $40700 in case of AustralianSuper. Marketing Strategy Marketing strategy is a set of guidelines and processes that an organization follows for promotion and improving reach of its products (Ferrel Hartline, 2013). Marketing strategies are devised taking into consideration various stakeholders of an enterprise. Marketing Strategy of AMP Superannuation Savings Trust Like most of the superannuation funds, the organization is also using partners and influencers for product promotion. Indirectly, strategy also focuses on development of world class award winning products for customer retention and attraction. Fund has its focus on umbrella approach with aims holistic approach to promotions. This process starts with customer research, product development, advice and selling at end. Social and digital media is also a source of marketing for AMP. It is recommended that company develops a strategy for engaging third party individuals and organizations for spreading awareness and selling its products. Educational campaigns through television, events and street shows should be its focus. Marketing Strategy of AustralianSuper According to Homewood (2016), marketing strategy of AustralianSuper is targeted through digital media and focusing on millennial. Millennial are very excited about the superannuation products and do a considerable analysis of different product options. The company also gets a lot of queries from them. Digital media will provide an effective platform for targeting all sections of the society. Apart from this company is also using other sources of marketing such as engaging with partners and influencers. The partners and influencers help in promoting products by creating awareness and changing attitudes. Apart from these, it is recommended that the company uses traditional methods of marketing. It should organize workshops and street campaigns. Promotion through television should be encouraged. Company may also engage advisers, banks and other agents for sales promotion. Sample Tools Advertising Marketing tools and advertisements help organization target audiences according to their needs and help in effectively evaluating a campaign to analyse return on investment (Adler, 2010). AMP Superannuation Savings Trust In 2016, the company launched goal based operating system, which comprised of goal centre and a explorer. The system has article, videos and modules for educational purpose and marketing. Modules have option to narrate as well. This is helpful of old as well those who are visually impaired (Burchill, 2017). Digital media tools such as online mailers and podcasts are also being used by the organization. Advertisements on social media are also common. YouTube, LinkedIn and Twitter online marketing tools are also being used by the company. It is recommended that company also uses promotional hard copy material for product promotion. These will be for helpful older and non-tech-savvy individuals. These can be sent along with policy statements after taking customer approvals. AustralianSuper Since, at present company has its focus of digital media and millennial. It should focus on next-generation tools and advertising. Digital media tools include online advertisements, marketing through mobile, web-analytics and emails. Digital media and analytics are effective in targeting customers by evaluating their needs. Partners and influencers are using social media websites and tools for product promotion. They are particularly active on Twitter and YouTube. Apart from the current tools and advertisement methods, it should also use promotional items such as educational videos, product brochures and merchandise to improve brand value. Banners and newspapers advertisements should also be encouraged. Traditional tools and advertisement measures result in a lasting impression. Monitoring Process and Review Monitoring and review process of marketing strategy involves analysis of impact of a plan, quantitatively measuring various data and carrying out appropriate changes to existing plan in case pre-defined results are not achieved (Saunders, 2015). AMP Superannuation Savings Trust Ultimate review of marketing strategy and advertisements comes in the form of tracking of revenues and profits. For digital media marketing efforts, the process involves tracking web traffic and measuring views on online promotional videos. Increase in followers on social media and positive discussion on social is sign of impactful marketing. Customer feedbacks through surveys and discussions are also helpful in tracking product response. As can be seen from cost-benefit analysis (Table 1), increased revenues from marketing efforts exceed costs; therefore marketing efforts have been successful. In case marketing efforts do not give desired result, the fund should think of modifying existing tools and strategies. AustralianSuper Marketing efforts of the company have been fruitful since the revenues have comfortably exceeded the costs (Table 2). The company can review its existing procedures by evaluating number of queries received by phone and email. If a television marketing campaign has been launched, then after campaign sales and response can be measured. Monitoring also involves analysing by demographics and region. It can be used to target a particular age group, income-level or regional group according to their needs. Conclusion This report presents a comparison of two superannuation funds of Australia. Funds covered in this report are AMP Superannuation Savings Trust and AustralianSuper. In the initial portion, a business introduction and comparison of both the superannuation funds is given. A view of target group and client base has also been presented. Also covered in this report are market segments of the funds and their characteristics. Cost-Benefit technique has been applied to analyse marketing strategies and efforts of both the funds. The report also discusses current and proposed marketing strategies both funds. Digital media, social media and traditional marketing strategies have been discussed. Marketing tools and advertisement efforts have also been analysed. A review and monitoring process of both the companies is also discussed along results of cost-benefit analysis. After evaluating the results of cost-benefit analysis and strategies of the funds it is concluded that AustralianSuper is better performing than AMP Superannuation Savings Trust. References Adler, M. (2010). A study of marketing and online marketing tools which improve online success. Munich, Germany: GRIN Verlag. AMP. (2017). Retrieved February 23, 2018, from https://www.amp.com.au/content/dam/amp/digitalhub/common/Documents/global/Trustee%20documents/SST_annual_report.pdf AustralianSuper. (2017). Retrieved February 23, 2018, from https://www.australiansuper.com/-/media/australian-super/files/about-us/annual-reports/2017-annual-report.pdf Ayadi, R. Mouley, S. (2013). Monetary Policies, Banking Systems, Regulatory Convergence, Efficiency and Growth in the Mediterranean. USA:Springer. Burchill, S. (2017). 6 Ways AMP is nailing financial content marketing. Retrieved February 23 2009, from https://www.thedubs.com/6-ways-amp-nailing-financial-content-marketing/ Campbell, H. F. Brown, R. P. C. (2015). Cost-benefit analysis: Financial and economic appraisal using spreadsheets. NewYork, USA : Routledge. Ferrel, O. C. Hartline, M. (2013). Marketing strategy, text and cases (6th ed.). Ohio, USA: Cengage Learning. Gbadamosi, A. (2013). Principles of marketing: A value-based approach. London, UK :Macmillan International Higher Education. Homewood, S. (2016). Marketing Dividends: AustralianSuper marketer on digital and millennials. Retrieved February 23 2009, from https://www.adnews.com.au/news/marketing-dividends-australiansuper-marketer-on-digital-and-millennials Jefkins, F. (2012). Modern marketing communications. Glasglow, London:Springer Science Business Media. Mcghee, F. (2013). Our great customer service in our Great United States: Whatever happened to good customer? Indiana, USA : Xlibris Corporation. Saunders, R. P. (2015). Implementation monitoring and process evaluation. California, USA: SAGE Publications. Smith, B. ( 2012). Self managed superannuation fund handbook: A practical guide to starting and managing your own fund. Melbourne, Australia:John Wiley Sons. Solomon, M. R. Lowrey, T. M. (2017) The routledge companion to consumer behaviour. New York, USA : Routledge. Sun, S. (2009). An analysis on the conditions and methods of market segmentation. International Journal of Business and Management. 4(2), 63-70 Superguide. (2017). AMP superannuation savings trust. Retrieved from https://www.superguide.com.au/super-funds-guide/amp-superannuation-savings-trust Superguide. (2017). AustralianSuper. Retrieved from https://www.superguide.com.au/super-funds-guide/australiansuper Zopounidis, C. (2012). New trends in banking management. New York, USA :Springer Science Business Media.