Nâng cao vai trò của marketing mạng xã hội trong lĩnh vực ngân hàng nghiên cứu cụ thể tại BIDV

ĐẠI HỌC QUỐC GIA HÀ NỘIKHOA QUẢN TRỊ VÀ KINH DOANH ---LÊ THÚY NGÂN IMPROVE THE ROLE OF SOCIAL MEDIA MARKETING IN BANKING SECTOR – THE CASE STUDY OF BIDV NÂNG CAO VAI TRÒ CỦA MARKETING M

ĐẠI HỌC QUỐC GIA HÀ NỘI

KHOA QUẢN TRỊ VÀ KINH DOANH

-LÊ THÚY NGÂN

IMPROVE THE ROLE OF SOCIAL MEDIA MARKETING

IN BANKING SECTOR – THE CASE STUDY OF BIDV

NÂNG CAO VAI TRÒ CỦA MARKETING MẠNG XÃ HỘI TRONG LĨNH VỰC NGÂN HÀNG NGHIÊN CỨU CỤ

THỂ TẠI BIDV

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2020

ĐẠI HỌC QUỐC GIA HÀ NỘI

KHOA QUẢN TRỊ VÀ KINH DOANH

-LÊ THÚY NGÂN

IMPROVE THE ROLE OF SOCIAL MEDIA MARKETING

IN BANKING SECTOR – THE CASE STUDY OF BIDV

NÂNG CAO VAI TRÒ CỦA MARKETING MẠNG XÃ HỘI TRONG LĨNH VỰC NGÂN HÀNG NGHIÊN CỨU CỤ

THỂ TẠI BIDV

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN VIỆT KHÔI

HÀ NỘI - 2020

The author confirms that the research outcome in the thesis is the result of author‟sindependent work during study and research period and it is not yet published in other‟s researchand article

The other‟s research result and documentation (extraction, table, figure, formula, and otherdocument) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School ofBusiness, and the laws for above-mentioned declaration

Hanoi, date of …… / …… /……

Le Thuy Ngan

I have gained huge knowledge, skill and insights from my MBA course The course raises my capacity of administration and management up to the next level

I declare that this is a true copy of my thesis The content of this thesis has been approved

by the committee of Vietnam National University, Hanoi – Hanoi School of Business andManagement (HSB) This thesis has not been submitted for a higher degree to any otherUniversity or Institution

In order to finish this project successfully, I have received many helps, supports andguidance from many people who I would like to thank sincerely

First of all, I would like to thank all the professors of MBA program, especially Assoc.Pro Dr Nguyen Viet Khoi – my supervisor Then I would like to thank deeply to respondents andinterviewees who allowed me to gather enough data for this research Finally, I would like toexpress my thanks to my husband, my family, my colleagues and my fellow friends who alwaysstand by me during the past two years and encourages me to keep moving from the beginning of

my study

Hanoi, date of …… / …… /……

Le Thuy Ngan

TABEL OF CONTENTS

DECLARATION 1

ACKNOWLEDGEMENT ii

TABEL OF CONTENTS iii

ABBREVIATION v

LIST OF TABLE vi

LIST OF FIGURES vii

CHAPTER 1 THE THEORETICAL FRAMEWORK OF SOCIAL MEDIA MARKETING - THE UPDATED TREND AND APPLICATIONS IN BANKING INDUSTRY 1

1.1.Overview of social media marketing 1

1.2.Social media marketing channels: 5

1.3.Social media marketing channels in banking sector: 12

1.3.1 The social media channel used popularly in banks: 13

1.3.2 The social media channels in Vietnamese Banking Industry: 17

CHAPTER 2 RESEARCH METHODOLOGY AND DATA ANALYSIS 19

2.1 Methodology and research methods 19

2.1.1 Methodology and research methods 19

2.1.2 The datas: 19

2.2.Data analysis 27

2.2.1.Users of Social Media: 27

2.2.2.Purpose of using Social Media 30

2.2.3.The popular Social Media Sites 31

2.2.4.Time used for Social Media 33

2.2.5.Banks should use Social Media Sites or not 34

2.2.6.Which activities Bank use Social Media for 35

2.2.7.Which of the following social media platforms does your bank use for marketing purpose: 37

2.2.8.Social Media Marketing in Sale 37

2.2.9.Social Media Marketing in Customer Service 38

2.2.10.Social Media Marketing in Customer Relation 40

2.2.11 Social Media Marketing in Recruitment 41

2.2.12.Social Media Marketing in Branding 42

CHAPTER 3 VALUATING THE EFFICIENCY OF USING SOCIAL MEDIA

MARKETING CHANNELS IN BIDV 46

3.1.Introduction about BIDV 46

3.1.1.Summary about BIDV foundation and development: 46

3.1.2.Organiz ational and Governance Structure 47

3.1.3.BIDV Main Products and Services: 49

3.1.4.Business Performance 50

3.1.4.1.Fund Mobilization 51

3.1.4.2.Credit 51

3.1.4.3.Investment 52

3.1.4.4.Services 52

3.1.4.5.Key financial indicators 54

3.2.Analyze the current application of social media marketing channels in BIDV 55

3.2.1.Analyze factors affecting to BIDV and BIDV‟s social media marketing 55

3.2.2.BIDV‟s social media marketing 61

3.2.2.1.BIDV Social Media Marketing in Sales 61

3.2.2.2.BIDV Social Media Marketing in Branding 64

3.2.2.3.BIDV Social Media Marketing in Customer Service 67

3.2.2.4.BIDV Social Media Marketing in Competitor Analysis 68

3.2.2.5.BIDV Social Media Marketing in Recruitment 68

3.3.The advantages and disadvantages of using social media marketing tools in BIDV 69

3.3.1.The advantages 69

3.3.2.Disadvantages 70

CHAPTER 4 FINDINGS AND RECOMMENDATIONS FOR IMPROVING THE ROLE OF SOCIAL MEDIA MARKETING IN BIDV 71

4.1.Development orientation of BIDV 71

4.2.Solutions to enhance the importance of social media marketing in BIDV 72

4.3.Recommendations 72

LIMITATIONS 77

APPENDIX 1 QUESTIONNAIRE IN ONLINE SURVEY 79

REFERENCE 83

BIDV Bank for Investment and Development of Vietnam

LIST OF TABLE

Table 1: The Social Media channels and their business characteristics: 11

Table 2: The participants of the discussion 21

Table 3: Summary of the benefits of Social Media Marketing for banking businesses 27

Table 4: Time used for social media 33

Table 5: Should banks have their own social network 35

Table 6: BIDV fund mobilization 2013-2017 51

Table 7: Credit 2013-2017 51

Table 8: Financial performance 2015-2017 54

Table 9: Business result 2014-2017 54

LIST OF FIGURES

Figure 1: Average hours/week spent on online activities worldwide 2

Figure 2: Benefits of Social Media Marketing: 5

Figure 3: The Social Media Landscape 2008, by Fred Cavazza 6

Figure 4: The Social Media Landscape 2009, by Fred Cavazza 7

Figure 5: The Social Media Landscape 2011, by Fred Cavazza 7

Figure 6: The Social Media Landscape 2012, by Fred Cavazza 9

Figure 7: Social Media Universe for businesses 10

Figure 8: Banks‟ top preferred social media platforms in America 14

Figure 9: Number of comments about bank on social media the first 4 months 2014 17

Figure 10: Number of Internet/ social media users around the world 2018 28

Figure 11: Most popular messaging app 29

Figure 12: Social media service popularity 29

Figure 13: Top 10 reasons for social media usage 30

Figure 14: Social media users, classified by app 32

Figure 15: Which activities American Bank use Social media for 36

Figure 16 : Organizational Structure 48

Figure 17: BIDV Governance Structure 49

Figure 18: Net service income 2015-2017 53

Marketing is the activity, set of institutions, and processes for creating,communicating, delivering, and exchanging offerings that have value for customers,clients, partners, and society at large (Approved July 2013 by AMA1 )

Launched in the early 2000s in the form of innovative online applications thatfacilitate online content sharing, Web 2.0 rapidly evolved into a phenomenon elevatingonline communications to a new level (Constantinides and Fountain, 2008) All actions ofmarketing from creating demand to take it in products and deliver, exchange value forcustomers are implemented on Internet What began as an array of platforms for onlineinteractions with focus on entertainment quickly escalated into a global phenomenonwhere connectedness to the online networks is everything and the aptitude to “follow,”

“like” or “share” means power The astonishing popularity and the fast rate of adoption ofsocial media lead enthusiasts to speculate on the potential goldmine for marketing that lieswithin the complex web of user commentaries, testimonials and communities, linkingconsumers with products and brands (Beer, 2008; Eccleston and Griseri, 2008; Hardey,2009)

So that businesses are no longer dismissive the role of Digital Marketing inreaching the target customers as well as building brand for products and their ownbusinesses According to a research statistic, Internet advertising gains 33% of the cost foradvertising US companies in early 2012 That same year was the birth and development ofthe powerful Social networking sites like Facebook, MySpace, Pinterest By thepreeminent features, Social networking has attracted millions of people with various ages,geographic areas and different interests participating in That makes up a plus the greatpile

Only a short time ago, many marketers said that social networking is not suitablefor brands However, the trend has changed The result in recent survey indicates that manybrands, including high-class brands, such as Mercedes, Burberry , also actively invest inSocial Media Marketing like Facebook, Twitter, YouTube to launch mass marketing andenhance interaction with users According to a survey from Alterian2, many company isusing social networking to attract new customers and raise awareness about brand Thissurvey polls 400 senior marketing executives from the big brands and gets

2

results: 30.1% said that attracting customers is the most important goal in social mediamarketing; 26.5% to strengthen brand awareness Up to 90% agree that should coordinateSocial Media Marketing in overall marketing strategy of company at present period Arecent study by Exact Taget2 also showed that digital devices revolutionize the purchasingdecision; More than 90% customers believe in online reviews of products, and 18%customers are at least affected by an online ad last 12 months.

In Vietnam, the development of advertising through social networking is no longernew to businesses as well as individuals self-employed The benefits, interaction abilityand high orientation help social media marketing beginning to be used like an extremelyeffective communication tool The more and more people read, watch, search information,news or reports through internet than other tradition way

Figure 1: The increasing of internet users

Figure 2: The increasing of users on digital platforms

Follow Viet Nam Chamber of Commerce and Industry (VCCI) 09/04/2015

If Twitter is the most popular social networking site in the US, Facebook is notonly successful in the world but also the most powerful advertising method in Vietnam.Currently, there‟re about 42 millions Facebook user in Vietnam (statistics in 2016)compared with Vietnamese population 93 millions (45%) That‟s an impressive figure.

According to Nielsen Vietnam Cross-Platform Insights Report 2015, Vietnameseused average 24,7 hours per week to online, increasing 9 hours than 2014

Figure 3: The average online hours per week

Understanding the importance and impact of social networking to business ingeneral and finance/ banking in particular, on 08/04/2015 BIDV launched SMCC SocialMedia Command Center Although the activities of SMCC are quite basic and achievedsome certain success but so far SMCC is still just stop in advertising to complement themain activities of the bank That doesn‟t take full advantage of social networking brings

In addition to the role of marketing to customers preferential programs or attractiveproducts/ services of bank, BIDV has not collected data to analyze and research thedemand and behavior as well as capture the new trend of the bank‟s customers now.According to information from the leader of the BIDV SMCC, the center has not officiallyconducted a survey on the effectiveness of interaction, the extent of the brand spreadthrough the social media marketing tool Therefore, by this research, we will evaluate theresults of the social media tool at BIDV and then propose a solution to improve thestrategy to promote the role of social media at BIDV

After more than 10 years – developing in the international market, DigitalMarketing has attracted the attention of many researchers Kotler (2003) argues that digitalmarketing is part of internet marketing, which focuses on product planning, pricing policyand distribution in the marketplace through electronic tools In this sense, the concept ofdigital marketing is ambiguous, and may coincide with internet marketing Dave Chaffey(2012) asserted that digital marketing is the management and implementation of marketingactivities by using electronic media tools such as website, email, iTV, wireless devicescombined with digital data related to characteristics and behavior of customers This viewextends the storage of customer profiles through digital data that will be a valuable resourcefor every business in developing new products through significant segments.

According to Damian and Calvin (2009), digital marketing is using of digital toolsthat include not only phones, email, websites but also social networking sites such asFacebook, twitter, etc to spread your image to customers and sell goods, services throughonline sites like amazon This view emphasizes the development of the image of thebusiness and the way they approach consumers through selling goods But the limit of thisresearch is not showing how to expand the awareness of business brand by digitalmarketing Because at present not just making a company website, its personal page likeFacebook, twitter and putting goods or services on Internet is bringing you money

Kent and Ian (2009, pp 60-61) conclude: "Digital marketing is the futuredevelopment of marketing, which takes place when most, or all marketing strategies of acompany used digital channels Digital channels are accessing channels that allowmarketers to communicate continuously, bi-directionally and personally to each customer;These communications provide data from each interaction with customers to forecast forthe next like network center In addition, marketers continually use real-time informationabout customer behavior and direct customer feedbacks to improve and optimizeinteraction" So, according to Kent and Ian, this will be the future trend of marketing, andemphasis on the direct interaction of customers of firms

Hue D.T and Lukas (2014) suggested that social marketing is a programmaticprocess that applies marketing principles and techniques to promote voluntarily behaviorchange This is quite true for some specific business areas The very cold spread of socialnetworking has helped businesses elicit and orient the needs of consumers Hence they canincrease the sale of goods and services But the banking sector is especially unique with itsspecific products that social media is just broaden the scope of image recognition,

Daiana Tont (2013) showed the advantages of using social media include the factthat brands can create conversations that engage on a 1-1 basis, which add value for theconsumer along the process on a functional, experiential and psychological level (Pine andGilmore 2011) This distinctive approach actively enriches the consumer‟s experience withthe brand establishing an emotional connection and ultimately integrating the brand as part

of their lifestyle (Pine and Gilmore 2011) The key role in building and developingrelationships with consumers across different social media platforms is communication–engaging, entertaining and triggering responses from consumers What this researchindicated is the reality and trend in marketing objective of business But in banking fieldwhere providing unshaped – goods, it needs a significant strategy of social media marketing

to do that

Celine (2012) indicated in her research that the theoretical analysis on the one handused a wide literature review to discuss the main business benefits of Social MediaMarketing, explain why every business should create their Social Media sites and maintaintheir presence on them regularly On the other hand, the empirical analysis examined themain marketing techniques used by companies on the Social Media channels, analyzed howbusinesses should develop their Social Media Sites Besides, the limitations and risksencountered by businesses implementing Social Media Marketing strategies were presented

in order to show the negative aspects as well This research gave us the comprehensiveview about the role of social media marketing in both positive and negative side Inaddition, we can find the advantages of each social media channel to be suitable for eachbusiness in common and for bank in particularly

Bontis and Booker et al (2007) studied the different effect of social mediamarketing in bank That is the mediating effect of organizational reputation on customerloyalty and service recommendation in the banking industry The findings suggest that bankreputation among customers can be improved by focusing on customer satisfaction.Customer loyalty and the likelihood of customer recommendation can be enhanced byincreasing reputation This reinforces the belief that reputation has an important role to play

in the banking service environment It can be implemented by using the spreading ability ofsocial media marketing

Chikandiwa et al (2013) gave out the research related about the social mediamarketing in South Africa Bank indicated about the existing models to be used the socialmedia adopting models or implementing models and how to measure each model But both

of those are infancy level, it is necessary to develop more than that to apply for anotherbank in other areas.

As we knew, nowadays, Social Media Marketing is widely used by businesses It isconsidered as a weapon that can be used largely for free and very easily, in comparisonwith other promotional tools (Levinson, J.C & Gibson, S., 2010) The main purposes ofusing Social Media Marketing are the amplification of word-of-mouth marketing, marketresearch, general marketing, idea generation and new product development, co-innovation,customer service, public relations, employee communications and reputation management.Indeed, social networks can increase product and brand awareness, web traffic, customerloyalty, but also improve the company‟s Search Engine Optimization, and even increasethe success of new product launches According to Hubspot (2012), 57% of SMBs saysocial media is beneficial to their business Thus, this research shows the overall knowledgeabout the social media marketing and some common tools or channel used the most

The second thing this research focuses on the reality of using social media tool inbanking sector in Viet Nam The specific case study in BIDV

The last thing is the solutions suggested to improve the role of social mediamarketing in BIDV

4 Objects of research:

The development of information technology and the explosion of social network inlife lead to the changing of marketing activities to adapt to the needs of a part of thepopulation, especially the generation is in the stage: Generation Y (Young generation - born

in 1977 - 1994) and younger generation (Z generation born in 1995 onwards) Pham HongHoa (2013) said that approaching customers through online channels such as mobilephones, email, social networking is gradually becoming a popular trend Over the past 10years, transactions through electronic banking systems in the banking sector have beenincreasingly promoted, helping banks and customers save time as well as transaction costswhile in the case of opening economy, competition in the banking sector is becoming moreintense than ever

Understand this situation, BIDV quite invests in approaching customers throughsocial media tool (Facebook page) But there are not an official evaluating research aboutthe results of using this and suggest some solutions to improve existing strategy appropriate

to present trend which has been changing day by day

5.1 Location scope: this study is carried out in BIDV with major informationfrom one of the biggest branch in BIDV: BIDV Central Transaction 1 Branch and SMCCDepartment All are located in Ha Noi where the population spends much time on internet.

5.2 Data and time cope:

- Secondary data: is collected in BIDV report period 2015-2017 about the number

of followers, level of interaction

- Primary data: is collected via direct survey from October – December 2017

5.3 Content Limitation

The research subject relate to many wide problems and there are many things toindicate this But in this research I just focus on how the social media marketing is used inBIDV, take full advantage of it and the orientation in future In research scope, we don‟tmention what BIDV achieved in social media activities or comparing with othercompetitors or standard of industry

In order to archieve the overal aim and specific aim of this study, the author will use

in majority Interpretivistic research methods (quanlititative approach) because of the lack

of quantitative figures relative to our subject, and the inherent biases and errors associatedwith questionnaires and interviews These methods allow for the interpretation of observedand researched data, where critical theory is examined and assumptions about its use inpractice are broken down Then, the relations and use in our subject is suitable forpredictions and analysis In this report, the interpretive use of Social Media Marketingtheories for research has been used We also have used some Positivistic research methodswhen dealing with statistics Indeed, some quantitative customer facts and figures havebeen used to analyze and strengthen the results and use of Social Media Marketingtechniques

6.1 The types of information

They are collected on the following:

 Secondary data is collected from BIDV reports, competitors‟ reports and

reliable outsource reports

 Primary data is collected through two ways:

+ Data collection through focus - group interviews (qualitative interviews):Select one from the target group and conduct in-depth interviews and discussion Focus -Group interview was conducted by gathering a group of 10 people People are concentrated ingroups with the same demographic characteristics and socio-economic

conditions, avoiding instances of interaction and conflict among group members whendiscussing Focus – interviews include experts, managers of marketing and otherdepartment and staffs Discussion time can last about 1.5 hours and audio / videorecorders are used to record the content of the interview.

+ Data collection through observation and investigation (Quantitative

A new Google account was created specifically for this project New forms were usedfor each case and data collected was used for analysis Protection of the identity of therespondents was maintained The created links were uploaded on the social sites and alsosent to available contacts through messenger

Type of question is category question, ranking question, rating questingand open question Sampling method used is purposive sampling That method permits

to select cases that will best enable to answer research questions and to meet objectives

of the study Non – probability sample size choice is also used

6.2 Limitations of methodology:

Interviews and questionnaires on the awareness of banking social media are verylimited in response Online questionnaire: The online questionnaire is often quicker andless detailed Also the validity of such surveys are questionable as people might be in ahurry to complete it so might not give accurate responses and may not be willing to sharedetails

7 Structure of the thesis:

The expected structure of this thesis as following:

Chapter 1: The theoretical framework of Social Media Marketing - The updated trend and applications in banking industry

1.1 Overview of social media marketing

1.3 Social media marketing channels in banking sector

Chapter 2: Research methodology and data analysis

2.1 Methodology and research methods

2.2 Data analysis

Chapter 3: Valuating the efficiency of using social media marketing channels

in BIDV

3.1 Introduction about BIDV

3.2 Analyze the current application of social marketing channels in BIDV3.3 The advantages and disadvantages of using social media marketing tools inBIDV

Chapter 4: Findings and recommendations for improving the role of social media marketing in BIDV

4.1 Development orientation of BIDV

4.2 Solutions to enhance the importance of social media marketing in BIDV4.3 Recommendations

 Conclusions, limitations and research contributions

CHAPTER 1 THE THEORETICAL FRAMEWORK OF SOCIAL MEDIA MARKETING - THE UPDATED TREND AND APPLICATIONS IN BANKING INDUSTRY

1.1.Overview of social media marketing

Social Media appeared in 1978 when the first Bulletin Board Systems exchangeddata over phone lines with other users According to Evans (2008): „When the Internetreally started to take off, consumers started to tune out those carefully crafted messagesand take more control over how they voiced their experiences with products and services.From websites to blogs, to forums and message boards, conversations started to spring uparound products, brands, and companies These conversations have had more influence onwhat others buy, subscribe to, and believe is valuable than any marketing message couldmanage.‟ Nowadays, Social Media Marketing and more particularly Social Networks havebeen influencing strongly in consumers‟ purchasing decisions, mainly because theyamplify word-of-mouth

According to Evans (2008), Social Media relates to a self-generated, authenticconversation between people about a particular subject of mutual interest, built on thethoughts and experiences of the participants Therefore, Social Media is definitely all aboutsharing and aiming at a collective vision, often intending to offer a more-appropriated orinformed choice at the end Furthermore, Social Media changes over time as it allowspeople to generate the content in a participative way whenever they want to add anyadditional piece of information Social Media are also evolving constantly as they are part

of internet high technologies, which are modified regularly with additional or replacingfeatures Social Media covers a wide variety of “online and mobile, word-of-mouth forumsincluding social networking websites, blogs, company sponsored discussion boards andchat rooms, consumer-to-consumer email, consumer product or service ratings websitesand forums, Internet discussion boards and forums, and sites containing digital audio,images, movies, or photographs, to name a few” (Hollensen, 2011) Social Networks, orSocial Media Sites, which are the main actors in the Social Media medium, can be defined

as online communities of people who typically share a common interest or activity,providing a variety of ways for users to interact and having the ability to facilitatecommunication

Andreas Kaplan and Michael Haenlein [2] define social media as "internetapplications based on the technology and ideal of web 2.0, which facilitates the creationand exchange of information by users "

In Viet Nam, as proposed by the Ministry of Information and Communications,social media is "an information system that provides the community of users with anetwork of services that store, provide, use, search, share and exchange information toeach other, including the creation of a personal website, forum, online chat, audio andvideo sharing, and other similar forms of service "

Social Media is growing every day Even if 90% of the 18-24 internet users usesocial network via any device at least once per month, social media affects every age groupwith much higher increase rates for the age groups over 35 (Hubspot, 2012) Also, whenlooking at the average hours per week spent on online activities, we can definitely see thatthe world is becoming more social, with an average of 4.6 hours per week spend on SocialMedia Sites worldwide (Figure 1)

Figure 1: Average hours/week spent on online activities worldwide

The number of active social media users has surpassed 2 billion and is expected toreach 2.44 billion by 20183 This is not just the playground of millennials Users of all ages arewell represented in the social universe, especially on the big three: Facebook, LinkedIn

3 “Digital in 2016” report, We Are Social

and Twitter Those between the ages of 25 and 44 comprise the largest share of users, butconsider that 62% of online adults that user Facebook and 20% that use LinkedIn are 65 orolder4

With the development of social media, world marketing in general and Vietnam inparticular, gradually change to take full advantage of the strong connection of socialnetworks

Social media marketing is a marketing communication activity on such socialmedia platforms Social Media Marketing is marketing that focuses on people, not products(Diamond, 2008) The products can be presented by the company with as many qualitativefeatures and promotional tools as possible, but what really matters is the comments andappreciations left by the customers People provide the content, and this is the reason whySocial Media Marketing is so scary and challenging for marketers They do not control themarketing content anymore Negative word-of-mouth can be spread worldwide in a couple

of minutes only With the explosion of Internet-based messages transmitted through theSocial Media, they are now a main factor in influencing many aspects of consumerbehaviour, such as awareness, consideration, information gathering, opinions, attitudes,purchasing decisions and post-purchase evaluation International marketers need torecognize the power and critical nature of the conversations being hold by consumers using

Social Media Consequently, the ability of influencing the crowd effectively is the mainquality needed by the marketing team (Evans, 2008).

Technology has been changed the consuming habit of customers They trust inpersonal recommendations than brand‟s messages The traditional sales funnel is aconsumer model based on the “four A‟s”: “aware, attitude, act and act again.” Now then,

P Kotler (2016), the shopper pathway now has “five A‟s”:

“Aware” – Consumers become aware of brands through marketing, personal

experience or recommendations from other people

“Appeal” – The most attractive brands rise to the top.

“Ask” – Buyers seek data online via social networks, reviewers, the media or your

brand

“Act” – Buyers select purchases based on their data, buy what they want and use it.

“Advocate” – People develop preferences for brands and make repeat buys A

query or negative comment can prompt proponents to defend their brand publicly

Across all the demograghics, a growing number of users are relying on onlinesources, including social media, to support their buying or investment decisions.According to a recent report from Google:

- 65% online consumers look up more information online now than they did a fewyears ago

- 66% of smartphone users turn to their phones to look up something they saw in a

TV commercial

- Searches of businesses “near me” doubles in the past year

- 82% of smartphone users use a search engine when looking for a local business

- 82% of smartphone users consult their phones while in a business deciding what

to buy

- Mobile conversation rates have increases 29% in a single year

- One in three millennials say they have purchased a product as a result of

watching a how-to video5

Figure 2: Benefits of Social Media Marketing:

Social media have redefined the way people interact with one another, enabling people

to build relationships without geographic and demographic barriers

1.2.Social media marketing channels:

The Social Media domain is a huge medium that can be divided in many different

5 Shape Consumers Preferences in their I-Want-to-Buy-Moments, June 2016, ThinkwithGoogle

5

Media Landscape by Fred Cavazza Finally, we will provide our own list of Social Mediachannels and illustrate them all in our model of Social Media channels.

Fred Cavazza, a French web business consultant, has become famous with his blogposts presenting his vision of the Social Media Landscapes every year (Figure 2-3-4) Hestarted in 2008, dividing the Social Media channels into ten main groups: publish, share,discuss, social networks, microblog, lifestream, livecast, virtual worlds, social games andMMO Through the years, he has been updating his model with the changes in SocialMedia Marketing In 2009, he started to put the social platforms in the center of the SocialMedia Landscape, with four main groups around: Expressing, Networking, Sharing andGaming Then, in 2011, Cavazza gave the central position of his model to Facebook andGoogle which are both connected to the seven main areas of Social Media: Publish, Share,Discuss, Commerce, Location, Network and Games

Figure 3: The Social Media Landscape 2008, by Fred Cavazza

Source: Cavazza, 2012

Figure 4: The Social Media Landscape 2009, by Fred Cavazza

Source: Cavazza, 2012

Figure 5: The Social Media Landscape 2011, by Fred Cavazza

Source: Cavazza, 2012

In Fred Cavazza‟s latest version of the Social Media Landscape (Figure 5), thecentral position of the figure is taken by Facebook, Twitter and Google+, because he wants

to emphasize the fact that they are all three providing a large variety of functionalities, andthat they are often used as relays for what internet users are doing on other platforms(Cavazza, 2012) Also, he has added some new players, a generalization of conversationsand interactions, and the addition of device types such as laptops, smartphones, tablets andconnected devices This graph illustrates greatly the very dense ecosystem whichsymbolizes Social Media, spreading the various services over families:

blog engines (WordPress, Blogger…), wiki platforms (Wikipedia,Wikia…), lifeblog services (Tumblr, Posterous…) and social Q&A (Quora)

dedicated online services for videos (YouTube, Dailymotion, Vimeo…), pictures (Flickr, Instagram…), links (Delicious, Digg…), products (Pinterest),music (Spotify…) and documents (Slideshare, Scribd…)

major editors (Zynga, Playdompcap…), dedicated platforms (Hi5…)and smaller but innovative editors (Digital Chocolate, Kobojo…)

professional (LinkedIn, Viadeo…), personal (MySpace, Badoo…)

or for former acquaintances (MyYearBook, Classmates…)

customer intelligence platforms (Bazaarvoice, PowerReviews…),purchase sharing (Polyvore), recommendation (Hunch) or social commerceofferings (Boosket)

mobile applications (Foursquare, Path…), socialized city guides(Yelp, DisMoisOu…) or upcoming events or venues (Plancast)

Figure 6: The Social Media Landscape 2012, by Fred Cavazza

As this report is focusing on the benefits of Social Media Marketing for businesses,especially for banks, we will only analyze the Social Media channels that have any utility

or effects on businesses Therefore, the report will not be examining the group of „Buying‟and its customer reviews, and the group of „Playing‟, which includes Virtual Game andSocial Worlds, such as the famous sites World of Warcraft and Second Life Also, fromCavazza‟s „Localization‟ group, we will only be studying the Social Events channels.However, the additional groups will be added Blogs & Microblogs are separated fromWikis, and from Social Bookmarking News Sites as well Besides, the discussion forumsare distinguished Our seven types of Social Media channels affecting businesses will bethe following:

Microblogs: e.g WordPress Blogger, Twitter…

(Video/Audio/Photo/Presentations): e.g Flickr, YouTube, Dailymotion, Vimeo, Picasa,Pinterest, Slideshare…

Reader…

: e.g Phorum, Yahoo Groups, PHPbb…

Blogs and microblogs will be regrouped in a same section, as well as SocialBookmarking and Social News Sites The following Figure 9 illustrates the Social MediaUniverse, while focusing on the Social Media channels appropriated to businesses andtheir brands A few examples for each type of Social Media channel are shown throughtheir logos

Figure 7: Social Media Universe for businesses

Source: Own Creation, 2012.For every business using Social Media Marketing, the challenge is to find onwhich Social Media channels its audience and customers spend their time and holdconversations (Evans, 2010) Also, people usually visit several Social Media Sites instead

of sticking to only one; this is called cross-pollinating By reading, listening and analyzingtheir target audience‟s activities, marketers will be able to determine where, when, whoand how the consumers are interacting in the Social Media Universe It will also help

marketers to define who the influencers are and which role they play in the online

community: whether they are networkers, everyday users, trendsetters, reporters or opinion

Social - Interaction platform Facebook, - Very personal - Risks related to

Networks - Social online LinkedIn, - Advertiser‟s the content of the

Blogs &- Corporate blogging Wordpress, - Personal - Time –

- Easy to use comments to handle

Media Sharing - Common interest Pinterest, - “Better than - Copyright issues

services‟ use Instagram, - Easy to share & - Young audience

- Relatively young - Oversaturationaudience

- Creativity &

control

Wikis - Collaborative Wikipedia - Crowdsourcing & - Vigorous

Synergy

Social Events - Event organization Upcoming, - Real-time - Possible failure

- Event promotion Eventful, organization

Source: Own Creation, 2012

1.3.Social media marketing channels in banking sector:

Banks are often viewed as cold and impersonal They do business in typical field.But when the technology wave affects all areas of life, the banking sector also has to mixwith changes In 2017 American Bankers Association did a research about the State ofSocial Media in Banking sector, a survey initiative by the ABA‟s Endorsed Solutiongroup, examines how banks are taking advantage of social media, where they seechallenges and opportunities and what the future is likely to bring

In 800 banks in America asked, “ How social media is important to your banks ”,76% said agree and strongly agree, just 10% disagree Innovative banks are shedding theindustry‟s stodgy reputations with personable new images created and nurtured on socialmedia outlets For example:

• Central National Bank in Waco, Texas, found YouTube stardom with its satiricalvideo on why banks close for Columbus Day

• First State Bank, headquartered in Gothenburg, Neb., holds a quarterly contestwith a local business customer in which each promotes the other‟s business on social

media

• Every week a bobblehead gure of Mark Mohr, CEO ofFirst Bank FinancialCentre in Oconomowoc, Wis., pops up somewhere in the world in a “Where‟s MarkWednesday” Facebook promotion each person to guess the location wins a $10 gift card.Banks are using their social media accounts in creative ways to educate, inform, entertainand celebrate

On the other side of the world, 50 banks in Greece have opened accounts onFacebook, in order to resolve complaints and inquiries as well as the media crisis resolving.Susan Marshall (2015) studies digital marketing in US banks also agree that this is a trend

in the future Cognizant's (2016) study shows that consumer trends increase, and the use ofelectronic wallets is increasing as the data that bankers store increases, so as to reach them.and to provide services to customers, banks need to have a more appropriate way oftraditional marketing, which emphasizes direct interaction. At the present time, Generation

Y and Generation Z use the internet more and more often, especially in the banking sectorwith specific facilities such as (1) short-term inquiries and (2) saving transfer expenses.However, this also adversely affects the bank as the customer easily moves to anotherbank, so it is necessary to set up in the context of a digital marketing strategy in accordancewith the development of science and technology and market;

digitizing bank data, and enhancing digital marketing on social networking sites alongside hotlines to address customer needs.

-Wipro and Efma (2013) show that, to save time and money, all customers want touse electronic services, more than 70% of customers of commercial banks have use at leastone means of internet connection, and primarily search for information about bankingservices through (1) social networking sites like Facebook, Twitter - even on amazon; (2)advertising pages on the Internet In addition to benefiting customers, digital marketingalso has the advantage of saving on communication costs for the bank: for advertising, itwill reduce costs from 55 percent to 49 percent, At the same time, other activities such assponsorship and promotion expenses will also be reduced by reducing the time spent ontelevision, instead of other online programs such as Youtube Wipro and Efma also foundthat: With current retail trends, banks now have to engage with customers throughelectronic sites rather than traditional affiliates Similarly, Olanrewaju (2014) also showsthat European banks are shifting from the trend of providing traditional services to modernbanking services through digital technology The authors estimate that each bank wouldincrease about 30% of its total revenue and reduce its share of total labor costs by 20-25%,

as well as the cost of circulating documents.

Research by Pham Hong Hoa (2013) shows that commercial banks in Vietnam nowhave the bases for digital marketing: Internet penetration in Vietnam is high (above 70%for people born after 1975), businesses are connected to the internet so that exchanginginformation is very easy This, in turn, helps banks find better customers (as a huge datawarehouse to exploit), and some dynamic executives can "innovate" different ways toreach potential "prospective customers" So digital marketing is an integral part of businessstrategy of banks, especially social media marketing what has been developing in amazingspeed But the fact that, there are very few banks that have an effective social marketingstrategy although the number of Vietnamese internet users are one of the biggest things inthe world Mibrand Brand Strategy Consulting Company has just released its "Brand BeatScore 2017" - a report on the effectiveness of the banking sector in Vietnam The reportshows that there are 3/60 banks surveyed have effective communication index(Vietcombank, BIDV and ACB, the customer awareness > 20%) Meanwhile, advertisingcampaigns have a great impact on the behavior of choosing the bank brand of customers

1.3.1 The social media channel used popularly in banks:

Bank‟s top preferred social media platforms are Facebook (90%), LinkedIn (69%),and Twitter (52%) (ABA, 2017)

Figure 8: Banks’ top preferred social media platforms in America

Socia media Platform100

90 90

80

69 70

50

38 40

17

14 20

7

0

Socia media Platform

At FirstBank in Denver, Colorado, USA, the use of each social media varies “ We

leverage all the platforms but we have slightly different strategies for each of them, says

Gordon Banks, senior vice president for marketing “ For example, for Instagram, we have

a very specific program and promotion that we do in our market”

For everyday banking consumers, the banks focus on trying to connect with their

customers on a personal level One of the most effective ways to do this is to use social

media to handle customer service issues in real time As you can see from the TD bank

example below, social media makes it incredibly easy to quickly respond to any customer

and attempt to turn a negative experience into a positive customer service interaction

Advertising on social media saves companies a lot of money Financial service

companies focus many of their advertisements on their rewards and benefits programs

Recently, Chase came out with a great marketing strategy They decided to host private

14

promotion mentioned that if you dined at a specific location, you would receive extrapoints.

Or in other side, there are many reasons why someone would choose to invest theirmoney with one bank over another However, the most important reason is trust Socialmedia can help any investment banking institution build a trust with their customers byshowing multiple sides of their bank One of the most effective ways that I‟ve seen thisdone, is by showing off a bank‟s history, and by promoting how successful they‟ve beenfor many years

Citibank uses social media to show off their investment banking prowess bypromoting their history in investment banking through social media The main reason whyCitibank does this is that it allows consumers to know who they are and that they have

been successfully doing exactly what the consumers need for a very long time.

Another example of a successful bank on social media is BNY Mellon As seenbelow, put out their quarterly revenue reports on social media to show how their businessesare doing well By putting out quarterly revenue reports, it will tell their clients, andpossibly new potential customers, how well the bank is doing BNY Mellon recently putout their second quarterly report, which provided analysis on how much revenue theygenerated over the past quarter, and their financial health

The banking industry clearly understands the importance of social media Socialmedia‟s ability to connect with your audience presents consumers with a side of yourbusiness they would normally have never seen before It‟s a unique and powerfulconnection that only comes from social media.

1.3.2 The social media channels in Vietnamese Banking Industry:

In Vietnam, although banking is not a prominent sector on social media, mostbanks are now beginning to focus on advertising on these media

Figure 9: Number of comments about bank on social media the first 4 months 2014

July 2016 BIDV was voted by Asia Banking and Finance (ABF) as the best bank inVietnam for social networking As BIDV is the first credit institution to build and

successfully operate the Social Network Operations Center via Facebook, LinkedIn andYoutube channels.

From the fact that, although it has been operating for more than a year (from April2015), BIDV's social networking center has been highly appreciated by online consultants.and all The fanpage of BIDV was consulted thousands of people, asking questions aboutthe products, services Most of the programs and products are directly advised by BIDVstaff 24/7 at social networking sites

Not only BIDV, now the trend of consulting products, credit services through socialnetworks have been applied by a series of commercial banks According to comments fromthe fanpage on Facebook of VIB, VPBank, Techcombank , now each page has 300-400thousand customers participate in consulting

By the end of 2014, Techcombank will be aggressively deploying Facebook andGoogle+ social transfers with the "F @ st Mobile" application To this day, Techcombank's

"F @ st Mobile" application has attracted over 500,000 customers

This shows that the current trend of adding social networking to the list of retailchannels for retail banking products and services has been considered by many commercialbanks and development strategies

CHAPTER 2 RESEARCH METHODOLOGY AND DATA ANALYSIS

2.1 Methodology and research methods

2.1.1 Methodology and research methods

In order to achieve the overall aim and specific aim of this study, the author willuse in majority Interpretivistic research methods (quantitative approach) because of thelack of quantitative figures relative to our subject, and the inherent biases and errorsassociated with questionnaires and interviews These methods allow for the interpretation

of observed and researched data, where critical theory is examined and assumptions aboutits use in practice are broken down Then, the relations and use in our subject is suitable forpredictions and analysis In this report, the interpretive use of Social Media Marketingtheories for research has been used We also have used some Positivistic research methodswhen dealing with statistics Indeed, some quantitative customer facts and figures havebeen used to analyze and strengthen the results and use of Social Media Marketingtechniques

The research methods used in this study were case study, observation and surveyresearch The researcher used a case study of BIDV but the subject of the survey maybenot the customers who have been used products or services of BIDV These help providingdata for this research and help the author assess the role of the social media marketing inBIDV, the level of approaching customers

2.1.2 The datas:

The datas are collected by the following:

Primary data Secondary data

Report, figures

focus-group

Direct interview

The secondary datas were focused on the relevant literature and updated

information from academics on the topic of social media: online academic journals,

textbooks, blogs and websites of marketing, BIDV reports, competitors‟ reports and

reliable outsource reports

Primary datas are collected through two ways:

a. Data collection through focus - group interviews (qualitative interviews) :

a.1 Select one from the target group and conduct in-depth interviews and

discussion Focus - Group interview was conducted by gathering a group of 10 people

People are concentrated in groups with the same demographic characteristics and

socio-economic conditions, avoiding instances of interaction and conflict among group members

when discussing Focus – interviews include experts, managers of marketing and other

department and staffs Discussion time can last about 1.5 hours and audio / video recorders

are used to record the content of the interview