Contemporary Issues in Marketing Management- Assignment 2

Table of Contents1.3 Describe the benefits of customer relationship management in a selected organization...7 1.3.1 Definition and objectives of CRM...7 1.3.2 Benefit of CRM in HSBC Bank

Prepared for:

Ms DotiChee (lecturer)

Unit No 41: Contemporary Issues in Marketing Management

Banking Academy, HanoiSubmission Date: 10th June, 2013

Number of words:

Prepared by: Maple Group

VuongThiQuynhAnh – LynnNguyen ThiKieuAnh – SnowNguyen Phuong Thao – KeyNgo ThiHuyenTrangClass: F05A

EXECUTIVE SUMMARY

This report accessing information from library, Internet, especially from the own website ofthe company and company materials.This report is to reviewimportance of relationshipmarketing in HSBC as well as the benefit of CRM and recommendation for the improvement

of CRM.It presents the reason for the increasing on ethics and social responsibility inmarketing such as CSR, pressure group and broadcast media

Established in Hong Kong in March 1865 and in Shanghai one month later, The Hongkongand Shanghai Banking Corporation is the founding and a principal member of the HSBCGroup It is the Group's flagship company in the Asia-Pacific region and the largest bankincorporated in Hong Kong HSBC Holdings plc, the parent company of the HSBC Group, isheadquartered in London HSBC's international network comprises 6,600 offices in 81countries and territories in Europe, the Asia-Pacific region, North and Latin America, and theMiddle East and North Africa

In Viet Nam, HSBC opened its first office in Saigon (now Ho Chi Minh City) in 1870 InAugust 1995, HSBC opened a full-service branch in Ho Chi Minh City HSBC also openedits second branch in Hanoi and established a representative office in Can Tho City in 2005.With 140 years of experience in Vietnam, HSBC provides a comprehensive range of bankingservices including Retail Banking and Wealth Management, Commercial Banking, GlobalBanking, Global Markets, Global Payments and Cash Management, Global Trade andReceivables Finance and Securities Services HSBC's history in Vietnam and knowledge ofits culture reflects its commitment to delivering excellence in customer service, every time.The recommendation for HSBC is that the company should do research about market and itscustomers to have deeply understanding about them to meet their requirements Therefore,the company will gain more achievements in business operation

Table of Contents

1.3 Describe the benefits of customer relationship management in a selected organization 7

1.3.1 Definition and objectives of CRM 7

1.3.2 Benefit of CRM in HSBC Bank 7

1.4 Make justified recommendations for the improvement in customer relationship management for a selected organization 8

1.4.1 Weaknesses and solutions for HSBC Bank 8

1.4.2 Recommendations for improvement in CRM for HSBC Bank 9

2.1 Carry out a stakeholder analysis for a voluntary sector and a public sector organization 9

2.1.1 Definition of stakeholder analysis 9

2.1.2 Background and project of chosen voluntary sector and public sector organization 9

2.1.2.1 Voluntary sector organization - UNICEF 9

2.1.2.2 Public sector organization - TRANSERCO 10

2.1.3 Identify key stakeholder for voluntary sector and public sector organization 11

2.1.4 The assessment of their interests, needs and expectations for voluntary sector and public sector organization 11

2.1.4.1 Voluntary sector organization - UNICEF 11

2.1.4.2 Public sector organization - TRANSERCO 12

2.1.5 Prioritize the stakeholder (Power/Interest grid) 13

2.1.6 Stakeholder report 14

2.2 Describe the nature of the relationships with customer within two selected not-for-profit organizations 15

2.2.1 Characteristics and goals of 2 not-for-profit organization 15

2.2.2 Nature of message in UNICEF and IFRC 16

2.2.3 Method of communication 16

2.2.4 Benefits of customers and recognition 17

2.2.5 Prioritizing stakeholder’s needs 18

2.3 Compare methods used in marketing within the public, private and voluntary sector 19

2.3.1 Marketing concept 19

2.3.2 Objective 19

2.3.3 Marketing perspective 20

2.3.4 Marketing approach 20

2.3.4.1 Relational marketing 21

2.3.4.2 Transactional marketing 21

2.3.5 Marketing method 22

2.3.5.1 Private sector - HSBC 22

2.3.5.2 Public sector - TRANSERCO 22

2.3.5.3 Voluntary sector - UNICEF 23

2.4 Explain the key issues involved in marketing in a selected virtual organization 23

2.4.1 Definition 23

2.4.2 E-commerce revolution 24

2.4.3 Advantages of E-commerce 24

2.4.4 Key critical resources issues in HSBC bank 25

2.4.5 Benefits, costs and risks 26

2.4.6 Relationship between HSBC bank and customers 26

2.4.7 E-marketing mix 27

2.4.8 Trend 27

4.1 Explain some of the current issues of ethical and social concern to marketers in a particular industry 27

4.1.1 Definition 27

4.1.2 The current issues of ethical and social concern to marketer in HSBC 28

4.1.2.1 Ethical issue 28

4.1.2.2 Social issue 29

4.2 Explain the concept of CSR with reference to HSBC 30

4.2.1 Definition 30

4.2.1 Concept of CSR in HSBC 30

4.3 Evaluate the role played by a selected pressure group in influencing ethical and social marketing policies for selected organization 32

4.3.1 Definition of pressure group 32

4.3.2 Identify pressure group - Institute of Contemporary Observation (ICO) 32

4.3.3 The evaluation role of pressure group and influences to ethics and social marketing policies 32 4.4 Evaluate the role played by published or broadcast media in influencing ethical and social marketing policies for a selected organization 34

4.4.1 Definition 34

4.4.2 Role of media and its influence for HSBC 34

REFERENCES 36

In this module – Contemporary Issues in Marketing Management (CIMM), we have chance

to study more about relationship marketing Within this report, we will give the knowledgeabout ethical and corporate social responsibility, the role of marketing in non-traditionalcontexts in the case HSBC This report has ten main contents, included:

 Describe the benefits of customer relationship management in a selected organization

 Make justified recommendations for the improvement in customer relationshipmanagement for a selected organization

 Carry out a stakeholder analysis for a voluntary sector and a public sectororganization

 Describe the nature of the relationships with customer withintwo selected profit organizations

not-for- Compare methods used in marketing within the public, privateand voluntary sectors

 Explain the key issues involved in marketing in aselected virtual organisation

 Explain some of the current issues of ethical and social concern to marketers in aparticular industry

 Explain the concept of CSR with reference to a particular organization

 Evaluate the role played by a selected pressure group in influencing ethical and socialmarketing policies for a selected organization

 Evaluate the role played by published or broadcast media in influencing ethical andsocial marketing policies for a selected organization

There are many sources of information in this research such as internet, book, article, casestudy and some research that study the same topic In all sources, the main sources of thisresearch are internet Especially, information provided in own website of the company HSBC

is very useful for us to carry out the report with various information

However, because of limitations about time, words, this assignment only gives generalinformation The researcher hopes that those disadvantages will be improved in the future

1.3 Describe the benefits of customer relationship management in a selected

organization

1.3.1 Definition and objectives of CRM

 Definition: Customer Relationship Management (CRM) is an information

industry term for methodologies, software, and usually internet capabilitiesthat help an enterprise manage customer relationships in an organized andefficient manner

 Objectives:Using technology to collect, sort, integrate customer data, the

objectives are to understand customer needs better, maintain long-termcustomer relationships, be able to pursue a strategy of Relationship Marketing[ CITATION 12Ju \l 1033 ]

1.3.2 Benefit of CRM in HSBC Bank

1 Increase customer satisfaction By supporting of best communication channel

and CRM tools such as automated socialintegration, social search, import socialcontacts, status updates…

- Support in receiving feedback and commentfrom customer quickly

- HSBC can analyze and keep track ofcustomer purchase behavior and consumptiontiming

 Help HSBC satisfy customer’srequirements, improve customer relationship

2 Increase customer loyalty HSBC can control effectively customer data

for identifying loyalty customer to focus timeand resources for premium customer

 Maintaining existing customer and builttrust in customer’s mind

3 Provide better customer services - CRM creates two way communications

between the organization and customers anddepartments, teams in organization together

- All information of customer about account issecure by using pin code, security device…

Make sure customer receive effectiveinteraction in providing best services

4 Costs reduction Collecting customer’s personal information

online and using online services such asinternet banking, mobile banking…

 Reduce cost which related to support andservices customer such as face to facetransaction, labor…

1.4 Make justified recommendations for the improvement in customer relationship management for a selected organization

1.4.1 Weaknesses and solutions for HSBC Bank

Despite of achieving many success in business by using CRM, HSBC still existweaknesses which need to be improved as follows:

Training: Employees of HSBC are lack

of knowledge about CRM processes,

CRM system, even have not ever known

about concept of CRM while they interact

Help them approach CRM system inmost effective way

Data warehousing: Collecting and

assessing customer information is difficult

and not effective due to customer

information is not stored in a centralized

way Poor data warehousing system which

lead to losing control the customer

Website: HSBC’s website does not have HSBC can review for creating forum

private areas for customer where they can

exchange information each other, give

feedback and ideas for improving

company performance

on website

Survey: HSBC meet problems in

accessing demand of customers due to

lack ofcollecting customers’ requirement

through survey tools

Using online survey tools such assurvey tool, survey monkey to knowcustomer’s needs and wants forsatisfying them

1.4.2 Recommendations for improvement in CRM for HSBC Bank

In order to set up an effective CRM system, HSBC Bank should identify clearlyvision and mission of organization to establish means and resources for effectivelyimplementing activities which built long term relationship with customers.Specifically, company should select appropriate technology (CRM process, datawarehousing, websites…) and recruit as well as train the human resources who haveknowledge in using and manage CRM system

 It helps HSBC quickly identify and provide prioritized response to the profitablecustomers to reduce costs, increase customer retention, loyalty, and increaseprofitability

2.1 Carry out a stakeholder analysis for a voluntary sector and a public sector organization

2.1.1 Definition of stakeholder analysis

Stakeholder analysis is an important technique for stakeholder identification andanalyzing their needs It is used to identify all key (primary and secondary)stakeholders who have a vested in the issues with which the project is concerned

- It was created by the United Nations General Assembly on December

11th, 1946

- The purpose of UNICEF is “to provide emergency foods and healthcare

to children in countries that had been devastated by World War II”.Nowadays, its purpose become bigger is “build a new world where thechildren’s rights are realized”

- The total staff of UNICEF is in over 199 countries and territories andmore than 200 country offices carry out UNICEF’s mission [ CITATIONUNInd \l 1033 ]

b) Project - UNICEF Tap Project

- The UNICEF Tap Project is a nationwide campaign that provides cleanwater and adequate sanitation to children around the world

- It was created in 2007 by a New York City bases advertising/communications agency called Droga5 and launched on March 22, 2007

- The UNICEF Tap Project funds are raised throughout the differentUNICEF programs such as water, hygiene and sanitation programs withpurposes including drilling of wells, the installation of water pumps toimprove children’s lives, help children access to clean water…[ CITATION unind \l 1033 ]

2.1.2.2 Public sector organization - TRANSERCO

a) TRANSERCO’s Background

- Corporation Transport Hanoi (TRANSERCO) is formed in 2001 by themerge of 4 companies: Hanoi Bus Company, Hanoi Southern PassengerCompany, Hanoi touring car Company, and Hanoi Tramcar Company

- The purpose of TRANSERCO is “strengthening relations of productioncreate the opportunities for development of public transport to meet 20-25% of the traveling demand of citizens [ CITATION Trand \l 1033 ]

b) Project - Rapid Bus System Project

- After years of gestation, the rapid bus project in Hanoi first began in 3quarter of 2011

- Bus is means of transport which can solve 2 major shortcomings oftransportation in Vietnam: pollution and traffic accidents but not manypeople use The reason is that: Moving by bus it takes quite a long time

so this project is created to satisfy demand for rapid transport of highcapacity buses [ CITATION KH04 \l 1033 ]

2.1.3 Identify key stakeholder for voluntary sector and public sector organization

Voluntary sectororganization(UNICEF)

Public sectororganization(TRANSERCO)

2.1.4 The assessment of their interests, needs and expectations for voluntary sector

and public sector organization

2.1.4.1 Voluntary sector organization - UNICEF

Volunteers

- Join in the UNICEF Action Center is to be contributed a small part for useful society activities

- Have opportunities for developing soft skills such

as presentation, communication skills…

They need UNICEF listen their opinions, their ideas to improve organization

performance better

- Improve healthy lives for children; help themhave opportunities to access to clean water

- Everyone recognize theirdevotion for society

Donors

- Support and contribute

to meaning activities of charity project

- Becoming donors, their voices become more value

- They have the right to attend organization’s meetings

They need to know information about:

- What and how their money is used for

- Organization’s societyactivities and its large scale

- Their money can be usedfor meaningful activities

- Increase their reputation;get more benefits from raising funds for charity

Beneficiaries - Have the opportunity to

use clean water to improve health

They need support of UNICEF in making their dream is to be usedfresh water come true

Hope that UNICEF can operate in the future to have capability for helping many areas; many

people have the same situation with them.

2.1.4.2 Public sector organization - TRANSERCO

Customers

- Satisfy traveling demand (quickly and convenient) of customers

- Receive high quality services

Need TRANSERCO listen their feedbacks about service’s quality and employees’ attitude toimprove it better

Expand more rapid bus system in many areas across the country

Manager

- Gain more revenue from expand bus’s operation scale

- Bring benefits for society and contribute a part in developing economy

- Need know exactly about the operation of the company

- Need positive contribution of customers

in giving feedback about service’s quality and sharenew ideas to improve, create project which aim

at bring more benefits for them

- Organization become stronger and stronger

- Bring buses closer to community

Government

Many citizens use buses

as a means of transportation  government can reduce problems about

environmental pollution,traffic jam, traffic accidents

Need organization have more positive activities, project to build beautiful image of buses in eyes of foreign people and Vietnamese people

- TRANSERCO will more and more develop to contribute more to society

- Improve Vietnam economy

2.1.5 Prioritize the stakeholder (Power/Interest grid)

 Volunteers - Keep informed: Volunteers in UNICEF are people work not for profit,

who wants to contribute a small part for meaning society activities Therefore, theyhave low power in organization’s decision making They only interested in what theycontribute to UNICEF when joining projects

 Donors - Manage closely: Donors of UNICEF are organization or individual that

gives a gift for beneficiaries By their contribution, projects and plans of UNICEF isimplemented so they have high power Besides, they also high concern about whichpurpose their money is used for and scale of UNICEF’s society activities

 Beneficiaries - Keep informed:Beneficiaries have low powerbecause they only are

people or other legal entity who receives benefits from donors through UNICEF, they

do not have right to join in any activities of organization They only high interest inbenefits they are received through projects of UNICEF

 Managers - Manage closely: TRANSERCO’s managers are key factor in developing

strategy, project and controlling all activities of the organization The failure and thesuccess of the projects depend on their decisions so they have high power Theyinterest mainly in plan’s success which will evaluate management’s ability in makingdecisions

 Customers - Manage closely: Customers are people decide whether using services or

not so they have high power Customers have high interested in project of

TRANSERCO because project derive from their demand and their expectation

 Government - Keep satisfy: Government have high power because with changes

from government’s policy also influences significantly on organization’s operation

However, government does not have interested in carrying out projects of

Frequency

Purposes ofcommunicationschannels

Voluntary

sector

Volunteers

Information abouttime, place,activities oforganization’sevents

Donors

New project ofUNICEF

- Formal meeting

marketing

Regularly Introduce donors

new ideas aboutcharity project raise fund forcharity activities

Beneficiaries

Benefits theyreceive afterfinish project

Informationdisplay: visualrepresentation ofproject process inpublic venues

Customers Services’ quality

and project aim atsatisfy theirrequirements

- Public forum

- Informationdisplays

- Advertisementand posting:

Newspaper,magazines…

report projectprocess

Government

Level of project’seffectiveness

2.2.1 Characteristics and goals of 2 not-for-profit organization

United Nations Children’s Fund UNICEF

International Federation of Red Cross and Red Crescent

Societies (IFRC) Characteristics - UNICEF is a charity group that

is part of the United Nations

- UNICEF works on projects thathelp children over 150 countriesaround the world Most of theseprojects help to keep childrenalive and healthy

- Money to support UNICEFprojects comes from manydifferent sources Many nationsaround the world voluntarily givemoney to UNICEF… (UNICEF,n.d.)

- The Federation coordinatesbetween National Red Cross andRed Crescent Societies throughoutthe world

- The stated tasks of Federation is

to promote humanitarian principlesand value, support NationalSocieties, support projects(disaster response, disasterpreparedness, and health andcommunity care)where funds areavailable

- The main parts of the budget ofthe Federation are funded bycontributions from voluntarydonation by National Societies,revenues from investment, other

organizations, corporations andindividuals [ CITATION BP \l 1033 ]

Goals

Supports child health andnutrition, clean water andsanitation, quality basic educationfor all boys and girls, and theprotection of children fromviolence, exploitation and HIV

[ CITATION 12Ju1 \l 1033 ]

Carry out relief operations to assistvictims of disasters, and combinesthis with development work tostrengthen the capacities of itsmember National Societies

[ CITATION BP \l 1033 ]

2.2.2 Nature of message in UNICEF and IFRC

Both UNICEF and IFRC also work for humanitarian purposes, however withdifferent goals, they will have different nature of message

 UNICEF: UNICEF is the organization to protect children and create better lifefor them

UNICEF’s commitment: Meet the basic needs of children such as survival,basic education, protectionwith slogan “Children of today - the world oftomorrow” (UNICEF, n.d.)

 IFRC: IFRC was established to prevent and alleviate human suffering

- Meet potential donors by influence ofviral marketing.

2.2.4 Benefits of customers and recognition

Benefits

- When taking part in UNICEF’sactivities, customer will havechance to do charity in over theworld, gain more knowledge inhealth service, education…

experience for doing in a group

- Become membership ofUNICEF, customer can receivebenefits

- Having opportunities to take part inhumanitarian activities

- Learning experiences from NationalRed Cross Societies in improving thelives of vulnerable people worldwide

- Improving skills of teamwork,knowledge of healthcare…

Recognition

The recognition of UNICEF as anorganization support forchildren’s right, basic needs

Therefore, with meaningactivities, huge volunteers, thesuccess of organization will berecognized by customers

IFRC activities are recognized by itscustomers to be useful and necessaryfor promoting humanitarian values,disaster responses, disasterpreparedness; health and communitycare so they are willing to join IFRC asdonors, clients, volunteers or staff

2.2.5 Prioritizing stakeholder’s needs

The Power/Interest grid is a tool which is very helpful in accessing prioritizesstakeholder’s needs

 Donor - Manage Closely

Donor’s needs are prioritized first because they have affected significantly on the success ofproject Their contribution to project is the basis for the project comes into operation so theyhave high power Both non-profit organization satisfy donor’s needs in increasing theirreputation through introducing their company logo on TV advertising…Donors interested inpurpose their money is used for and scale of society activities

 Volunteers - Keep informed

Volunteers are people work not for profit, who wants to contribute a small part for meaningsociety activities Therefore, they have low power in organization’s decision making Theyonly interested in what they contribute when joining projects

 Beneficiaries - Keep informed

Beneficiaries have low powerbecause they only are people or other legal entity who receivesbenefits from donors through not-profit organization, they do not have right to join in anyactivities of organization They only high interest in benefits they are received throughprojects

2.3 Compare methods used in marketing within the public, private and voluntary sector

Private Sector (HSBC)

Public Sector (TRANSERCO)

Voluntary Sector (UNICEF) Marketing

concept

Marketing Societal marketing Societal marketing

transportation systems

Diverse on no profitbasis

- Transactional marketing

 Private sector: HSBC use marketing concept Success of HSBC can be

achieved only throughmeet customer’s requirement Therefore, HSBC usemarketing concept to analyzing consumers’ needs and wants for satisfyingcustomer’s demand better than their competitors

 Public sector and voluntary sector use the same concept is societal marketing Voluntary sector are focuses on making money for charitable

activities, it means that they work for not profit and with public sector, money isnot the goal Therefore, they use societal marketing which use marketingprinciples for purposes of societal benefit rather than commercial profit[ CITATION Placeholder3 \l 1033 ]

2.3.2 Objective

 Private sector: HSBC run a business to make a profit, provide best service

banking for customer to maintain existing customers as well as attract new

customer to maximize profit and become the leader in banking sector (Reeher,2013)

 Public sector: TRANSERCO aims to provide high-quality transportation

systems and increase service frequency on the model bus lines which bringbenefits for community and not to maximize profits [ CITATION Anh081 \l 1033 ]

 Voluntary sector: The main objectives of UNICEF could be diverse on no

profit basis such as protecting children from violence, exploitation, and abuse;free, compulsory quality education for all children [ CITATION BP10 \l 1033 ]

2.3.3 Marketing perspective

 Private sector: HSBC use both relational marketing and transactional marketing With both perspective, HSBC can seeks to establish long term

relationship and also emphasis is on maximizing the efficiency of sales

 Public sector: TRANSERCO use transactional marketing TRANSERCO can

“make a sale” in short term transactions with buyer However, besides makingprofit, TRANSERCO focus more on bring benefits for community

 Voluntary sector: UNICEF use relational marketing UNICEF can create

long-term relationship with their stakeholders The fact is that UNICEF haveainteraction with their stakeholder with high frequency such as provideinformation about the new project…

2.3.4 Marketing approach

Base on marketing perspective, each sector also have the similarity and differentlymarketing approach

 Private sector: Transaction marketing, Database marketing, Network

marketing, Interaction marketing

 Public sector: Transaction marketing, Database marketing

 Voluntary sector: Interaction marketing, Network marketing

2.3.4.1 Relational marketing

Relational

marketing

Private Sector (HSBC)

Voluntary Sector (UNICEF)

Public Sector (TRANSERCO)

http://ww.hsbc.com.vn/

Attract customer bylinking their address toother bank’s website

UNICEF:

http://www.unicef.org/

Pay attention by linkingtheir address to the sub-website and forum toattract more members takepart in charities activities

Interaction

marketing

Both of them have their own website, email

MediaPublic relationTelemarketing

Social networkCall center

2.3.4.2 Transactional marketing

Transactiona

l marketing

Private Sector (HSBC)

Public Sector (TRANSERCO)

Voluntary Sector (UNICEF)

Database

marketing

Both of them need to collect feedback from customers

by Telemarketing, Direct mail, Email marketing, CRM,B2B and B2C database to improve and developservices/product better and better

This sector not

Price

HSBC offer an attractiveprice, it not only need toattract customer but alsomaintain profit for HSBC

Price

The price of all transaction

of TRANSERCO is verycheap which is suitable forcustomer’s financialsituation Besides, there are

discount for student

2.3.5 Marketing method

2.3.5.1 Private sector - HSBC

 Direct marketing Telemarketing: by using telephone, HSBC can get customer information,

problem, and solve them

Direct mail:Send information about products and services for customers

regularly

 Mass media

In Media, HSBC use Press Press reaches large numbers of people in short

way because people can read anywhere, in the free time, or waitingsomething HSBC adverts in economic and baking categories in manynewspapers, especially in economic and banking magazine “Vietnameconomic”, “Kinh ten ngay nay”

 Public relations

HSBC sponsored for many events:‘Future First - Local Schemes’,

‘Working Group’, and ‘SaigonCyclo Challenge’.HSBC is now in its fifthyear of sponsoring the HSBC FEI Classics™

 Partnership marketing

Base on partnership relation, HSBC can advertise all their product/service

in partner event.For example, HSBC is Official Banking Partner to TheWimbledon Championships tennis tournament

2.3.5.2 Public sector - TRANSERCO

 Direct marketing Call center:TRANSERCO have a call center to solve the problem of

customer directly It is: 04.38.43.63.93

Direct selling: TRANSERCO sell product such as bus tickets through

form of sales (face to face) - customer buy products directly through salesstaffs