Improvement the marketing mix policy for internet banking service (IBank) at agribank cau giay branch

Therefore, it is said that the banking marketing application at Agribank Cau Giay branch always needs to be reformed quickly to meet the needs of customers so Agribank Cau Giay branch wi

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

LÊ QUỐC VÂN

IMPROVEMENT THE MARKETING MIX POLICY FOR INTERNET BANKING SERVICE (IBANK) AT AGRIBANK

CAU GIAY BRANCH

HOÀN THIỆN CHÍNH SÁCH MARKETING XÚC TIẾN HỖN HỢP ĐỐI VỚI DỊCH VỤ INTERNET BANKING TẠI

AGRIBANK CHI NHÁNH CẦU GIẤY

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2021

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

LÊ QUỐC VÂN

IMPROVEMENT THE MARKETING MIX POLICY FOR INTERNET BANKING SERVICE (IBANK) AT AGRIBANK

CAU GIAY BRANCH

HOÀN THIỆN CHÍNH SÁCH MARKETING XÚC TIẾN HỖN HỢP ĐỐI VỚI DỊCH VỤ INTERNET BANKING TẠI

AGRIBANK CHI NHÁNH CẦU GIẤY

Chuyên ngành: Quản trị kinh doanh

Mã số: 8340101.01

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG

HÀ NỘI - 2021

DECLARATION

The author confirms that the research outcome in the thesis is the result

of author’s independent work during study and research period and it is not yet published in other’s research and article

The other’s research result and documentation (extraction, table, figure, formula, and other document) 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 of Business and Management, and the laws for above-mentioned declaration

THANK YOU

With deep, sincere affection, The author would like to express my deep gratitude to all individuals and collectives who have facilitated the study and research of this thesis

In particular, The author would like to express my deep gratitude to Dr Pham Van Hong, who has directly guided and helped me a lot during the process of researching and completing the thesis

The author would like to express my gratitude to all of the Hanoi School of Business and Management (HSB), Vietnam National University who taught, encouraged and encouraged and facilitated me during my time at the University as well as the time to complete this thesis

The author would like to express my sincere thanks to the Board of Directors, colleagues, individuals and professional departments for facilitating and helping me complete this thesis

Although the author has made many efforts, the thesis is difficult to avoid certain limitations and shortcomings Due to time constraints and professional qualifications, the dissertation is unavoidable We hope to receive the sincere advice and contributions of the Teachers, friends, and colleagues to improve the thesis Once again, thank you very much!

TABLE OF CONTENTS DECLARATION

THANK YOU

INTRODUCTION 1

1 The urgency of the topic 1

2 Research objectives and questions 3

3 Object and scope of the study 4

4 Research Methods 4

5 Topic layout 4

CHAPTER 1 THE BASICS THEORETICAL OF MARKETING MIX AND BANKING SERVICE Error! Bookmark not defined 1.1 Overview of services and banking services 8

1.1.1 Some concepts 8

1.1.2 Features of services and Banking services 13

1.2 Overview of banking marketing and marketing mix 20

1.3 Marketing mix 27

1.3.1 Characteristics of mixed marketing tools 27

1.3.2 Content marketing policy marketing mixed program 33

CHAPTER 2 CURRENT SITUATION OF MARKETING – MIX POLICY FOR INTERNET BANKING AT AGRIBANK – CAU GIAY BRANCH 44

2.1 Features of Agribank - Cau Giay Branch 44

2.1.1 The process of formation and development 44

2.1.2 Agribank's goals and mission 46

2.1.3 Function 47

2.1.4 Organizational structure 48

2.1.5 Resources of Agribank Cau Giay branch 48

2.1.6 Business situation over the years 49

2.2 Current situation of marketing – mix policy for internet banking services

at Agribank - Cau Giay Branch 53 2.2.1 Actual situation of implementing Internet Banking service marketing policy at Agribank Cau Giay branch over time 54 2.2.2 Survey on Agribank Internet Banking service - Cau Giay Branch 60 2.3 Situation of joint promotion activities for Internet Banking service of Agribank - Branch of Cau Giay 65 CHAPTER 3 COMPLETING THE MARKETING MIX POLICY FOR INTERNET BANKING AT AGRIBANK – CAU GIAY BRANCH 79 3.1 Development orientation of internet banking service at Agribank - Cau Giay branch 79 3.2 Combined Marketing Promotion Solution for Internet Banking Service of Agribank - Cau Giay Branch 82 CONCLUSION 91 LIST OF REFERENCES

APPENDIX

INTRODUCTION

1 The urgency of the topic

Vietnam is witnessing strong changes of the market in the process of economic integration and implementing commitments under the roadmap

to join the World Trade Organization Many economic sectors have been and will be forced to open the rest of the world to create a very complex picture of business in which competition is indispensable for any business And so, the banking industry is not out of the picture Banks know that maintaining existing customers is not enough Expanding market share will be a difficult challenge but bring many competitive advantages in service scale Commercial banks are trying their best to survive and develop in the context of increasingly fierce competition and are urgently establishing and expanding operations to create a certain position for themselves in the market

According to the latest figures from the United Nations, Vietnam has more than 97 million people (survey data 2019) and income levels are increasing but the proportion of people using banking services is still limited The growth of per capita income and the type of business has created a potential market of commercial banks, especially the banking service market Development of banking services is a trend and an indispensable requirement for commercial banks today to enhance the presence, increase market share and diversify types of banking products and services, contributing to increasing the competitiveness of the bank Therefore, it can be said that types of banking services will thrive in the future Meanwhile, banks will have the opportunity to expand the market, increase the development potential and increase the ability to disperse risks in business The application of Marketing to business activities,

especially marketing-mix to promote various types of banking services, has gradually become an important factor for the existence, development and victory in the present time

Currently, banks are developing new and multi-utility and socially accepted services such as ATMs, CDM, Internet Banking, Home Banking, Mobile Banking Especially, Internet Banking was born, is a combination of science and technology with banking management technology The introduction of Internet Banking service is a great step forward in payment operations through banks with many utilities, superior features and civilization in payment That fact has marked a new development of the banking service market in Vietnam This will be the basis for thriving banking services and giving customers more and more benefits However, besides the achieved results, Internet Banking still has some limitations such as: Competitiveness and popularity are not high; transactions are limited, not widely implemented, not oriented to customer needs; Risks are still potential for both customers and banks

Agribank Cau Giay Branch has more than four trillion VND mobilized capital, outstanding debt is over three trillion VND, finance profit is over seventy billion Dongs In addition, Agribank Cau Giay branch has the most modern IT infrastructure from the World Bank project

Therefore, it is said that the banking marketing application at Agribank Cau Giay branch always needs to be reformed quickly to meet the needs of customers so Agribank Cau Giay branch will not lose customers and vice versa, The bank can also enhance its highly competitive services in order to attract more customers Based on that practice, along with the knowledge gained during the course and practical

work at Agribank - Cau Giay Branch, I chose the topic "Improvement the Marketing-Mix policy for Internet Banking (IBank) at Agribank Cau Giay Branch” The content of the topic revolves around analyzing, evaluating

and proposing a number of marketing mix promotion solutions for Internet Banking services from which through supporting tools to develop customers using the service of Bank

2 Research objectives and questions

Research objectives of this thesis are to answer the following question:

“How – improve the banking marketing services – Agribank Cau Giay Branch – overcomes – gain more benefits from customers?” (In the interest

of helping bankers think more like entrepreneurs)

In order to achieve this objective, a list of necessary questions were studied and this thesis hopefully provides all needed information about the current situation of banking services in Agribank Cau Giay branch's bank marketing management evaluations and solutions

- If capital were free, what would we do differently? (Excessive capital) If capital cost twice as much, what would we do differently? (Lack of capital)

- Are we a bank that has technology or a technology company that owns a bank charter?

- How likely is it that a customer would recommend our bank to a friend or colleague?

- What one word do we want to own in the minds of our customers, employees, and partners? (For example, Apple = different; Toyota = quality; Google = search.)

- Do our customers need more than one thumb to use one click payment method?

- What is marketing concept?

- What is bank marketing concept?

- What is a bank marketing mix in theory?

- What to analyse in bank marketing management?

- Bank marketing plan in practical situation?

3 Object and scope of the study

Research subjects:

Modern marketing principles to be applied appropriately at Agribank - Cau Giay Branch

Research scope:

+ Space: the above issues were studied at Agribank - Cau Giay Branch

+ Time: The proposed solutions in the thesis make sense in the coming years

4 Research Methods

Use qualitative and quantitative methods Collecting documents, observing customer behavior, thereby analyzing data on the environment, customers, direct competitors

Chapter 3: Completing the Marketing mix policy for Internet Banking at Agribank - Cau Giay Branch

OVERVIEW OF RESEARCH SITUATION

In order to gain the basic knowledge and foundations that form the theoretical basis for the topic, the author has consulted, summarized, summarized and inherited from some documents of the following authors:

+ Marketing Theory: Document "Basic Marketing" by Assoc Prof Dr Nguyen Thi Nhu Liem, "Marketing Management" by Assoc Prof Dr Le The Gioi - Dr Nguyen Xuan Lan

+ Theory of Banking: Document "Modern banking operations", "Credit and credit appraisal of banks", by author Dr Nguyen Minh Kieu and the document "Bank credit", by the author Dr Ho Dieu

In the process of implementing the topic, the author also consulted from a number of relevant studies, thereby helping the author have an overview of the field being studied, and help the author draw the research orientations and methods as well as suggestions and solutions to suit their topics, specifically:

+ Master's thesis topic: "Improving marketing policies at the branch of

Da Nang Foreign Trade Joint Stock Commercial Bank" by Nguyen Anh Khoa The topic has helped the author to see the situation, the current marketing policy of the bank, and thereby help the author to have the orientation and reference to research methods as well as marketing solutions proposed to developing Internet Banking service of Agribank - Cau Giay Branch In addition, through the topic, the author has also inherited the relevant theoretical foundations, especially the concepts of banking services, thereby helping the author improve the theoretical basis of the topic

+ Master's thesis topic: "Improving marketing policies at Technological Commercial Joint Stock Bank - Da Nang Branch" by Vu Ngoc Anh This topic has provided the author with the orientation of current marketing

development of banking services, and also provides valuable materials through analysis, evaluation and comparison of competitors, as well as giving the causes and limitations of the banks, thereby giving the author more ground to propose solutions and recommendations to develop Internet Banking service marketing activities at Agribank - Cau Giay Branch, is more suitable

+ Topic: "Solution of developing products and services at BIDV, Ha Tay" by Nguyen Thi Lan is another reference to help the author have an overview of solutions to develop bank services In addition, the bank has provided the products at banks outside Agribank's system, thereby giving the author a basis to propose more appropriate solutions in the proposal section of the topic

+ Topic of Master's thesis: "Solutions to develop services at Saigon Industrial and Commercial Joint Stock Bank" by Le Thanh Binh and the topic: "Solutions to develop electronic banking services at Commercial Bank Orient Commercial Joint Stock Company” by Nguyen Truong Giang Through these topics, the author has an overview and understand the basics of developing new services at commercial banks in the current period Banking products and services often have relationships and support for each other Therefore, the development of banking services has a very important role in today's business activities Therefore, the above topics have helped the author have sufficient grounds to propose appropriate solutions in the development

of Internet Banking services

+ Master's thesis topic: "Analysis and evaluation of Agribank's Business Strategy to 2015" by Nguyen Huu Tuan, topic: "Agribank's competitiveness - Situation and improvement solutions" of Truong Doan Quoc Dung, these topics helped the author grasp the current situation of

business capacity and development strategy of Agribank, so that the author could research and refer to the recommendations

+ Agribank's annual reports The author has used the data from these reports to perform an analysis of the status of Marketing activities in his topic

CHAPTER 1 THE BASICS THEORY OF INTERNET BANKING SERVICE

AND MARKETING MIX 1.1 Overview of services and banking services

1.1.1 Some concepts

1.1.1.1 Service

Services are a major economic area of modern society, the more society develops, the higher the level of specialization and division of labor, the more the service sector expands to meet diverse needs of society It can be said that the high level of development of the service sector is a manifestation of a highly developed society Economists believe that the post-industrial society

“Service is an activity, consisting of non-existent factors, that resolves relationships between the customer and / or property that the customer owns and the supplier without the transfer of rights"

"A service is an activity or benefit that one party can provide to the other party which is essentially invisible and does not provide a transfer of ownership."

“Service is an action or series of actions taking place within a defined time and space, performed by means of human and / or material means to bring benefits to an individual or a collective according to standardized procedures, procedures and behaviors”

It is possible to draw a few comments from the concepts presented above:

- Services are the results and benefits gained from standardized interactions and transactions between suppliers and beneficiaries Without this process there would be no service

- Service benefits are overall benefits, which can include both physical and mental benefits, both main and secondary benefits created by many activities

- The service delivery process may use certain facilities The results of the services generated are abstract, ambiguous, not specific but can bring satisfaction to the beneficiaries

- The service may impact on the customer and / or property owned by the customer

- Service activities can impact directly on customers and this customer becomes an input of the service delivery process, within the supply mechanism The service can also affect assets owned by customers, increase the value of use, the value of the property that their ownership has not changed

1.1.1.2 Banking services

 Banking service concept

Banking service is understood as the financial services that the bank provides to its customers to meet business needs, profitability, living activities, asset storage Thereby, the bank gains interest difference, interest rates, rates or charges from these products and services In the current development trend, the bank is considered as a service supermarket with hundreds, even thousands of different services depending on the classification and depending on the level of development of the bank There are two

concepts of banking services:

The first view is that banks' profitable activities other than lending activities are called service activities Such delineation allows the bank to implement a strategy of focusing on diversifying, developing and improving the effectiveness of non-credit activities

The second view is that all business activities of a bank are considered service activities, including credit activities Among sectors of the economy, banking is in the service sector; Therefore, lending can be considered as a service activity of the bank The second approach approach means that banking services include both net services and credit operations

 Types of banking services

Currently, there are two main groups of banking services in the Bank, namely traditional banking services and modern banking services

Traditional banking services: including capital mobilization services, discount services, loan services, payment services, entrustment services, foreign exchange services

Modern banking services include services such as asset management services, treasury management services, electronic banking, home banking services, financial advisory services, financial leasing services,

For the purposes of this topic, please specifically mention Internet Banking Internet Banking is a type of banking service performed by customers but does not have to go to the counter to meet bank staff In a broader sense, this is a combination of a number of traditional banking services with information technology and electronics and telecommunications Internet Banking is a form of e-commerce application in banking business

Internet Banking helps customers transfer money online through

accounts as well as control the operation of these accounts To participate, customers access the bank's website and conduct financial transactions, accessing necessary information The information is very rich, to every detail

of customer transaction as well as other information about the bank, customers can also access other websites to make purchases and make payments with the bank However, when connected to the Internet, banks must have security systems strong enough to deal with risks on a global scale This is a big obstacle because investing in security systems is very expensive

1.1.1.3 Marketing and marketing banking services

 Concept of Marketing

Marketing activities were born and exist from the time when people knew about exchange activities There will be no marketing if there is no exchange process According to Philip Kotler (1988), "Marketing is human activities to satisfy needs through the process of exchange" and "Social platform of Marketing is to satisfy human needs" Thus, Marketing puts people and their needs and wants at the center to meet and satisfy Marketing comes from the realities of exchanging activities in life and development along with the development process of this human activity

Marketing is the activity of every individual, every organization doing

it in order to achieve a good goal or to satisfy their desires regardless of whether or not they act for business goals In 1996, Philip Kotler and Gary Armstrong stated: “Marketing is a management process and a social process whereby individuals, groups and organizations get what they need and want to communicate through creating and exchanging valuable products with others.”

From a marketer's point of view, the value of a product is the overall ability of a product to satisfy a customer's need or desire It can be said that

the measure of the value of a product is the level of customer satisfaction about that product This is the basis for price formation and exchange decision between businesses and customers

Another, more business-like concept, “Marketing is a management measure, it allows the realization of a business's goals by awareness, work arrangement, planning and control of resources and business operations with

an interest in adapting to the surroundings and satisfying the needs of customer groups, and thus enabling benefit.”

According to the American Marketing Association (AMA 2004),

“Marketing is an organizational function and a collection of creative, communication, value transfer processes for customers and management of customer relations system to benefit the organization and its interested parties”

Thus, from the new marketing point of view, two important issues to achieve business goals are:

- Creation, communication and transfer of value to customers

- Managing customer relationships

These two issues are also implemented only to achieve the success of the business in attracting and keeping its customers This is somewhat different from the traditional concept of Marketing is to determine the wishes

of customers and to satisfy those customers' needs

 Marketing concept of banking services

Service marketing is the general development of marketing theory in the service sector taking into account the characteristics of service and business Service is extremely diverse Different service industries have different characteristics Researchers have found that service is a field where marketing application is slow compared to manufacturing, so its development

in theory is not really clear So far, academically, there hasn't been a fully comprehensive concept

Service marketing is different from commodity marketing and focuses

on solving difficulties in service business besides normal marketing applications to help businesses be more successful

Marketing of banking services belongs to the Marketing of services group Thus, it can be understood: Marketing of banking services is an organizational and management system of a bank to achieve the set goal of best satisfying the demand for capital and other banking services With the customer group selected by policies, the measures towards the ultimate goal are to maximize profits

1.1.2 Features of services and Banking services

1.1.2.1 Service characteristics

Services have a number of distinctive characteristics with physical goods This difference leads to some specifics in service business and service marketing compared to physical goods trading and marketing Features of the service:

 Intangibility

Goods with shape, size, color and even taste Can customers review and evaluate whether it is suitable for their needs? In contrast, services are not a specific commodity, they are intangible The intangibles of services make the senses of customers unnoticeable before buying This is a disadvantage when selling a service compared to selling a tangible goods The reason is that it is difficult for customers to try a service before buying it, it is difficult to perceive quality, service is difficult to choose, service providers are difficult

to advertise to customers about the service Therefore, it can be said that selling services is much more difficult than selling tangible goods In order to

sell, sellers need to advise and clearly introduce to customers about the quality, price, benefits, utilities that service brings them, this, customers can hardly identify themselves Service sellers have a very important role, they are the people on behalf of the business to welcome customers and serve customers Losing customers or keeping customers is largely up to them Therefore, businesses need to recruit sales people with the necessary qualifications, train them with the full knowledge and skills, and have appropriate management policies to stimulate them to work passionately, customer service

In order to help customers, have enough information to support the buying decision process, businesses need to provide them with the necessary information by many different means It is the provision of sales information, customer care through advertising publications, company websites, suggestions letters, customer conferences,

 The inseparability of service delivery and consumption

Unlike tangible goods, the process of supply and consumption of services occurs simultaneously Service providers and customers must interact with each other to provide and consume services at appropriate locations and times for both parties For some customer service needs to be present regularly such as: doctor services, travel services, The customer contact process lasts throughout the service delivery process, and service providers participate in the service creation process

So, this feature affects service businesses as follows:

- Difficult to achieve economies of scale

- Difficult to achieve uniformity in quality

- Difficult to balance supply and demand

- The relationship between customers and service providers has a great

influence on customer perception of service quality The inseparability of service provision and consumption affects service marketing

- Strong impact on psychology, customer sentiment, contributing to forming customer perception about service quality

- The relationship between customers and service providers greatly affects the perception of service quality

Therefore, it can be said that for marketing goods, it is a means of exchange and for marketing services, it is a means of support and catalyst

 Uneven quality

The service cannot be provided in a centralized and focused manner as

a commodity Therefore, it is difficult for suppliers to check quality according

to a uniform standard On the other hand, customer perception of service quality is strongly influenced by the skills and attitudes of the service provider The health, enthusiasm of service providers in the morning and afternoon can vary Therefore, it is difficult to achieve uniformity and quality

of service within a day The more people who serve the service, the harder it

is to ensure quality uniformity To overcome this problem, it is possible to implement mechanization and automation in service delivery, and at the same time have specific management policies for service providers However, contact with courteous and courteous service staff is also an attractive factor for customers On the other hand, not all services can automate the delivery process

 Calculations cannot be stored

The service only exists at the time it is provided As a result, the service cannot be mass produced for storage, and when it is marketed, it is sold This characteristic affects service marketing policies in each specific period

 Uniqueness

When buying a good, the customer is transferred ownership and becomes the owner of the goods he or she purchased When buying a service, the customer is only entitled to use the service, to enjoy the benefits that the service brings for a certain period of time

This characteristic affects the distribution policy in service marketing,

in which wholesalers and retailers cannot transfer ownership They are merely participants in the service delivery process

1.1.2.2 Characteristics of banking services

As a type of service business, banking services also bear common characteristics of the service Specifically:

 Intangibility

The intangibles make the service very difficult to assess in quality and customers are often difficult to consider during the buying stage, they can only check the quality during the purchase process and after purchasing it Banks therefore need to see that the key factor for choosing a bank to provide financial services to them is their trust in that bank

 Severability

The inseparability results from the service being processed or experienced Therefore, the service becomes an action that happens in cooperation with the user and the bank Services are then sold and consumed

at the same time Therefore, production and marketing become an interactive process Bank employees directly serve customers in services that play a bridging role in the service production process, and customers themselves become "optional" employees of the bank

 Heterogeneity

The characteristic of heterogeneity in production and consumption has made services more unstable in terms of quality The degree of instability is

affected by the service provider using more manpower or machines in the process of providing services to customers If more human involvement is involved, the potential for service quality may be greater Banks and financial institutions are human-oriented organizations; Most of the previous customers used to communicate directly with counters in branches However, today with the emergence of new technologies, services can become more dependent on machines and allow banks to provide more standardized services through the use of use electronic banking services,

From a buyer perspective, changes in service quality and inconsistent performance only increase the risk of shopping for uncertainty, obviously when shopping becomes larger Even if marketing and the transfer of an investment product can be standardized, the end result may still be uncertain due to a range of other factors beyond the control of banks and institutions other financing

 Perishability

Perishability characterizes the instant nature of the product that occurs

as a result of simultaneous production and consumption The perpetuity problem for service providers is that they cannot create and maintain inventories Therefore, changes in service market demand cannot be met in the same way as for other commodity markets Therefore, the important task

of marketing staff in service organizations is to find ways to level demand level and to match supplier's supply capacity

 Entrusted responsibilities

Entrusted liability refers to the implied responsibility of a bank's service provider in managing its clients' funds and the nature of the financial advice it provides to its customers In the marketing meetings of banks, customers are essentially buying a combination of promises: the bank promises to be

responsible for managing, managing the capital and financial issues of the guests line Therefore, trust and confidence in the bank and its employees is a mandatory requirement However, credibility and trust can only be achieved as

a result of their experience with banks and their employees - which explains why customers rely on other signals as a guide Before buying a promise, can be made from the bank

 Two-way information

Banking is not just a one-time purchase but it ends with a series of regular two-way transactions in a specific time period Examples of bidirectional transactions in the aforementioned sense include: issuance of account statements, account management, etc This type of interaction provides the potential for banks to collect information valuable customers with regard to account balances, account usage, savings and borrowing, the use of credit cards, stores, shopping destinations that customers often visit

1.1.2.3 The characteristics of Internet Banking services impact on the application of Marketing

Commercial banks in advanced countries around the world have been developing strongly electronic banking services, especially Internet Banking

In our country, the level of development is different, but there is a common point that has started to pay attention and have a real applied research investment strategy This is because Internet Banking has the following outstanding features:

 Fast and convenient

Internet Banking is a transaction channel, enabling customers to contact banks quickly and conveniently to perform a number of banking operations at any time (24 hours a day, 7 days a week) and anywhere This is especially meaningful for customers who have little time to go to the office to directly

deal with banks, small and medium customers, and individual customers with

a small number of transactions with the bank, the amount per transaction is not large This is a benefit that traditional banking transactions can hardly achieve with fast and accurate speed compared to electronic banking

 Saving costs, increasing revenue

Internet Banking transaction fees are considered to be very low compared

to traditional transactions, thereby contributing to increase operating revenue for banks

 Expanding the scope of activities, increasing competitiveness

Internet Banking is a solution of commercial banks to improve service quality and operational efficiency, thereby improving the competitiveness of banks More importantly, Internet Banking also helps banks implement the

"globalization" strategy without opening more branches in the country as well

as abroad Internet Banking is also a tool to promote and promote the brand of the bank vividly and effectively

 Improve the efficiency of capital use

In terms of the bank's business, Internet Banking will help improve the efficiency of capital use Through Internet Banking services, customer requirements are fulfilled quickly, facilitating quick cash flow of capital, good transaction and money - goods exchange Thereby accelerating the speed of goods and currency circulation, improving the efficiency of capital use

 Increase the ability to care for and attract customers

It is the utility that comes from application technology, from software, from network service providers, Internet Banking services, which has attracted and kept customers using, dealing with banks, becoming customers banking tradition With a modern bank model and multi-purpose business, the ability to develop and provide services to many customers and many business

areas of Internet Banking is very high

 Provide package services

A special feature of Internet Banking service is that it can provide package services Accordingly, banks can associate with insurance companies, securities companies, and other financial companies to offer comprehensive utility products to meet the basic needs of a customer or a group of customers related to banking, insurance, investment, securities,

1.2 Overview of banking marketing and marketing mix

1.2.1.1 Concept

In recent years, under the impact of the economy, the commercial banking system has grown strongly and played a very important role in the country's economy Banks always tend to expand the scale of their products and services to maximize the interests of consumers in the market, this activity aims to reach all classes of customers So, it can be seen that marketing for the bank in general or marketing for the bank's products and services in particular is a very necessary job It is very likely that operations

of a bank become stagnant and gradually lose their competitiveness in the market if the bank itself fails to keep up with customer needs and current development trends market in order to come up with a marketing plan that best suits the circumstances That is why today banking marketing is interested and developed so much

Banking marketing can be known through different approaches Each approach is a different understanding Some of the aspects of banking marketing are:

- Banking marketing is all of the bank's efforts to best meet the needs of customers and realize the bank's profit targets

- Banking marketing is a set of different activities of a bank in order to direct the existing resources of the bank to better serving the needs of the bank, on that basis, to implement the bank's objectives

- Banking marketing is the whole process of organization and management of a bank, from discovering the needs of target customers and satisfying their needs by a system of policy measures to reach profit target

- Banking marketing is a function of governance to direct the flow of a bank's products and services to serve the bank's target customer groups

Regardless of the definition, we see that the direction of banking marketing is still very close to the concept of basic marketing, which is the process of researching and finding unsatisfied customer needs, from then organize the production of products and services or renew and upgrade existing products and services to best satisfy those needs in order to maximize profits for the company

1.2.1.2 Features of banking marketing

Banking marketing is the application of basic marketing principles and rules to the operation of a particular service sector, aiming to understand customers' needs for financial services, helping customers choose and decide

to use products and services provided by banks However, due to the unique nature of the banking industry, banking marketing also has its own characteristics that are different from marketing activities for other sectors

First, we can see that due to the characteristics of the banking industry, banking marketing will be financial services marketing A service can be understood as an intangible form of good, or according to the concept that

Philip Kotler has put forward: “A service is an activity or benefit provided for exchange, mainly invisible and does not lead to transfer of ownership”

Banking products and services have different characteristics for other types of

services, such as intangibility, indissolubility, and inability to store These characteristics have a significant influence on service management, especially the organization of banking marketing activities The intangibility of banking products and services has resulted in the inability of customers to see, hold, especially difficulty in assessing the quality of products and services before purchasing, during the purchase and after buying Not only that, but the service is also "inseparable" - the provision and use of the service always happen at the same time, so we cannot separate it from stagnant sources In that process, the customer is also an essential part of the service itself, so both the supplier and the customer have a great influence on the outcome of the service The ultimate property of banking is volatility Unlike physical commodity products, once created, the quality is uniform and easy to define, while the quality of banking services fluctuates in a very wide range It depends on the circumstances and other factors created, such as the attendant's stylish attitude, the timing of the events, or the location where the service is provided This also explains why before buying a product or service, we often consult other sources more carefully before choosing a service provider

The Bank needs to maintain, and at the same time, enhance and improve its image in the minds of those "using its products and services" or the customers themselves Banks can do this by increasing the tangibility of their services In addition to describing the characteristics and functions of the services, it is necessary to make the customer more interested in the benefits related to that service or the bank can also use names or images for purposes

of the service The target evokes the value of its service or invites celebrities

to promote it Moreover, to ensure that the two-way information between customers and the bank is always accurate, the factor that cannot be ignored is

the human factor This is an important factor that plays a significant part in building the image of the bank to the minds of customers The bank staff are the ones directly dealing with customers, and are also the ones who guarantee two-way information connection, so selecting and training employees is very important to be able to ensure the bank's image in the eyes of customers, thereby creating good and long-term relationships

Second, banking marketing is a type of inward marketing As mentioned above, bank staff plays a significant part in the process of providing value to customers Bank employees are key junctions to ensure that the flow of information between the bank and its customers is maintained and updated So, the relationship between the bank and its employees is extremely close We can see how necessary internal policy in banks is when standing on the viewpoint "bank staff are customers of the bank leaders" Bank leaders need to grasp and understand the needs of their employees quickly and promptly, thereby creating all conditions for employees to perform well their jobs and their responsibilities and policies training, training, remuneration, or even building a very specific corporate culture in each bank Only that way ensures a close link between employees and leaders, creating a system Consistency of good service and understanding of customers

And finally, banking marketing is in the form of relational marketing Building a bank's image in the mind of the client is not an easy job, but maintaining and reinforcing that image is a more difficult one Today, under the fierce competition from many competitors in the same industry in the same market, banks must focus a lot of effort and money to maintain and strengthen the relationship "bank - this "customer" Because trust is a key factor in all relationships, it is always an urgent matter for all banks to keep

customers' trust Customers' trust is often based on the bank's ability to promptly grasp the needs of the bank, the level of expertly handling situations and the ability of its staff Therefore, the bank must always ensure satisfaction, always keep and strictly comply with all its commitments to customers By doing so, a bank can build its reputation, create long-term relationships, and create benefits for both the bank and customers In addition

to maintaining commitment and credibility, banks must also have a good way

to manage their relationships, ensure they retain old or loyal customers, and have appropriate strategies to manage their relationships attract and develop new relationships with potential customers With the increasingly competitive trend, gaining customer confidence is becoming the key strategy reflecting the long-term vision of each bank Therefore, relationship marketing is getting more and more attention

1.2.1.3 The role of marketing for banks

Today, in parallel with globalization is taking place all over the world, especially after our country's accession to and officially becoming the 150th member of the World Trade Organization WTO in 2007, the business activities of Vietnamese commercial banks are increasingly under pressure from competitors from domestic banks as well as foreign banks, or other large financial institutions from the United States and the European Union EU and a series of other leading countries in the financial sector in the world Joining the World Trade Organization WTO together with globalization makes it easy to see through the presence of many leading banks in the world

in Vietnam market such as HSBC, ANZ, City Group, Standard Chartered, Tokyo- Mitsubishi UFJ, Deutsche Bank AG Not only competing on service packages or guaranteed quality of products, Vietnamese commercial banks also have to compete with ways to best satisfy the customer needs of these

foreign banks This is an extremely important factor for banks to attract interest and maintain customer confidence And banking marketing is the solution for banks to achieve that

First of all, by helping the bank to understand the needs of its customers and in accordance with the market fluctuations, banking marketing is the bridge connecting the bank's business with the market From understanding customers' needs, the bank can guide the flow of capital, well exploit the ability to mobilize capital and distribute capital appropriately Marketing also helps the bank to coordinate all its activities in order to meet the maximum market demand, on that basis, to implement the goals that the banks have set

On the other hand, marketing also plays a role in solving the basic economic problems of a bank's business Also stemming from understanding customer needs, a bank can determine the appropriate product or service type

to offer, and then organize the processes to provide that product or service Marketing also helps the relationship between the bank employee and the customer to be perfected and well developed, or to resolve the relationship between the interests of customers, employees and bankers in a harmonious way

Not only that, but marketing also helps the bank in creating its competitive position Each bank will have its own characteristics, no bank is like any other bank, with different approaches to different customers for the same product or service model So, with the idea that "difference will create success" will be a highlight to create a distinct advantage for each bank, and marketing will help banks show the importance of that difference to our customers

It can be said that marketing plays a very important role in building a bank's image in the mind of customers, thereby creating a competitive

advantage over domestic and foreign banks creating a driving force to promote business activities, making a significant contribution to the Vietnamese economy

1.2.2 Promotion of mix

1.2.2.1 Concept of mixed promotion

For a bank's business, it is not all that a bank can sell its products or services to consumers at an attractive price To increase the profitability of a bank's current products or services, marketing managers need to pass intangible value to customers These are the value that customers will get when they use their products or services A good example of this is the consumption of personal items People buy shoes these days not just to keep their feet warm and dry They buy shoes because shoes make them men, make them stylish in the eyes of others Buying shoes becomes an emotional issue, and businesses that sell intangible value here are fun, not shoes To do this, the banks need to go through the promotion

Today's modern marketing requires more than product development, pricing and distribution Bank administrators must communicate information to existing and potential customers as well That is marketing communications The marketing mix is essentially marketing communications

1.2.2.2 Main mixed marketing tools

Marketing mix in banking marketing is a combination of activities, or

in other words, the following tools:

Each of these tools has different characteristics Depending on the circumstances as well as the policies and goals of the bank, the marketing manager will choose which tools to achieve the purpose of communicating the necessary information to customers In order for the promotional communication to be effective, in reality banks need to combine mixed promotion tools, thereby forming the term Integrated Marketing Communication System - abbreviation is IMC

According to the definition of the American Association of Advertising Agencies - 4A's abbreviated, IMC is:

The marketing communication planning concept recognizes the added value of a comprehensive plan that evaluates the strategic roles of different communication tools, such as general advertising, direct response, stimulus consumer relations, public relations, and incorporation of these tools to ensure maximum clarity, concise and effectiveness of communication by harmoniously unifying discrete messages

Integrated marketing communication will ensure more consistency of the message and have a greater impact on consumption IMC will enhance the ability of businesses to ensure that they deliver the right message to the right audience at the right time and at the right place

1.3 Marketing mix

1.3.1 Characteristics of mixed promotion tools

Banks can use a variety of ways to communicate with their target customers and promote the products and services they offer However not all banks use the same promotion method, the same scope and extent that they often use a combination of different promotion methods to promote their products and services often referred to as a "promotion-communication mix"

A media marketing mix can include activities such as: advertising, personal

transactions, promotions, public relations or direct marketing Based on the purpose of marketing communication, target customers and their products - services, each bank will make different promotion decisions

1.3.1.1 Advertising

Advertising is a form of propaganda paid to carry out the introduction

of information about a product, service, company or idea, advertising is a non-direct communication between people and people in which the person wants the media must pay the media to deliver information to convince or influence the recipient of the information

Advertising is a non-personalized form of communication carried out through mass media such as television, radio, print, outdoor signs

The fact that marketing administrators use advertising activities for purposes such as promoting products and organizations, boosting demand for products and services, fighting advertising from competitors in the same industry, increases jobs using the product, building and reinforcing the image

in the mind of the customer

- Ads allow banks to repeat their messages Thus, advertising helps the bank create identity in the mind of the customer Advertising acts as a reminder and imprints on the consumer's brain about the bank's presence, so the repetitive process of advertising will make the bank's image imprint on the customer's mind Help your bank improve your image

- Advertising can add value to products or services

Limitations of advertising:

- Usually, there is no response from the recipient quickly Banks cannot immediately know how customers react after they receive information through advertising Usually, ads take some time for recipients

to respond to their opinions about the content and the message it delivers

- Make it difficult to measure the impact on sales and the high overall cost No one can be sure how many customers a bank message has received through advertising And it is also unlikely that among those who have received the message, how many will use the bank's products and services The number of customers coming to use may be very high or very few, making it difficult for bank managers to measure the impact on sales and advertising costs

- Less convincing than personal transactions because there is no direct contact between banks and recipients - here are customers

1.3.1.2 Personal Selling

Personal transaction has an immediately visible feature that is able to transmit information and persuade customers to use the bank's products and services through direct personal communication Forms of personal transactions can be mentioned such as: sales representatives visiting customers, consulting support staff at branches and transaction points of the bank

Personal transactions are used by banks to generate set sales Direct transactions with customers also help the bank to evaluate the strengths and weaknesses of the products In addition, personal transactions enable a bank

to have direct conversations with customers, thus helping banks collect feedback immediately

Advantages of personal transactions:

- There is flexibility in communication because communication is different depending on customers

- Due to direct transactions with customers, it will cause a greater influence on customers

- Helping the bank to form a variety of rich and diverse relationships

- Collect instant feedback

- Helps banks to be flexible and allows to tailor messages accordingly

- Useful in purchasing complex products and when the customer is already close to making a decision

Limitations of personal transactions:

- The cost per customer unit is higher

- The bank cannot effectively reach a large number of customers

1.3.1.3 Sale Promotion

Promotions, also known as sales promotion, are measures to increase financial interest in the short term to encourage product purchases In other words, sales promotion is an incentive to customers, channel members or salespeople to make more purchases Types of sales promotion are known as: gifts attached to current products, services, souvenirs, bonuses, loyalty cards, free samples, refunds, monetary or non-monetary incentives

Most of the banks' sales promotion programs are often used to encourage the trial of their products and services and create a psychology of

"leapfrog", changing the customer bank Thereby directing the target customers to switch to using their products officially Sales promotion programs are also used for the purpose of reminding old customers, creating a change for these customers, helping them avoid boredom, thereby also partly controlling the change Unusual change of sales

Advantages of selling promotion:

- Be sure of the cost of the sales promotion program, thereby it will be more effective to maintain the quality level

- Add value to an existing product or service without having to adjust the price or the nature of the underlying product

- Encourage the need to use products and services in the short term

- Remind customers about old products and services On the other hand, we encourage new customers to try it out The bank's promotional campaign will help new customers who have never been or are intending to use the bank's products to access the product as easily as possible with many visible benefits instantly

- Create a valuable collaboration with customers by the attraction of the program

Limitations of sales promotion:

- It is possible to reduce the value of the brand name if it is not supported by other promotions

- Increases price sensitivity and sometimes reduces customer loyalty

- Promotions can create incentives for customers looking for great deals

1.3.1.4 Public Relations

Public relations are that a bank actively manages community relations

to build and maintain a positive image of itself Public relations activities include promoting success, mitigating the effects of failures, announcing changes, and more To put it simply, public relations is to create relationships that influence the internal and external environment of a bank

Public relations have the characteristic that it does not create personal communication between the bank and the customer The transmission of bank messages to target customers is now through intermediaries such as

magazines, newspapers, television or radio columns

Thanks to an advantage of a public relations tool, the information delivered to your target audience is more honest, so this will create awareness about products, services, brands and activities the bank's most objective way for the customer side Thereby, the bank's image will be enhanced in the minds of consumers, the negative image of the invisible bank will be partially overcome

Advantages of public relations:

- Provide convincing information

- Information conveyed to customers is information of high reliability and completely objective

- Easily create good images of the bank in society

- Information will easily reach people who are allergic to the advertising tool

Limitations of public relations:

- Costs for public relations programs are usually quite high

- Lack of control over what is communicated

- The transmitted messages can be understood by the public in a good or bad sense

- Does not affect immediately the sales of the bank

- Usually not repetitive

1.3.1.5 Direct Marketing

The essence of direct marketing is to try to combine all three activities

of advertising, sales promotion, and personal sales to sell directly to customers Direct marketing helps banks establish regular and complete relationships with customers

Direct marketing is a tool of marketing mix of direct mail, telemarketing, email and direct response advertising (DRA) Banks can hand

out flyers with information about their current programs directly to customers, email all consumers' mailboxes, or use our on-call staff to target customers

The advantages of direct marketing:

- The bank can completely control when the information will reach customers

- Increases customer confidence when dealing with financial products when buying them because the customer has more information before entering the buying process

- Can be personalized and adjusted to suit each customer

Limitations of direct marketing:

- Sending mail or catalogs to customers can be considered spam if not used appropriately

- It is difficult for a bank to predict the total cost of direct marketing tools Therefore, it can cost a lot of the bank

1.3.2 Content marketing policy marketing mixed program

The key steps in the development of a mixed promotion include: the bank needs to discover the target customer (or audience itself), define the communication target, design the information The communication message, selects communication channels, determines the communication budget and finally collects the feedback from the recipients

1.3.2.1 Determine who receives the message

The marketing communicator must start with a well-defined customer

or target group in his or her goals Here they can be the potential customers for the products or services that the bank is offering in the market, or they can

be the current customers using that product or service This target audience will have an important influence on the decisions made by banking marketing managers about what to say, how to say, when to say, where to tell and to whom

Basically, the communication process in mixed promotion is simply understood as the process by one person passing information to others through a communication channel in a certain way and having some influence

on the receiver through communication between the sender of the information and the recipient of the message In the case of banks, the sender of the information is the bank and the intended audience is the target customers, but may also include other entities such as employees, intermediaries, the general public or others target object of the bank

The bank needs to have the most profound, comprehensive and complete understanding of the recipients of the target information and the things that will attract their attention, because otherwise the bank's communication process will be the same an arrow is not aimed at any target

1.3.2.2 Define your communication goals

The goal of the media-promotion process is to get feedback from the audience It is important for banks that they have to decide what is their expected response Once the target market, potential customers and its characteristics have been identified, the bank - the messenger, must decide on the response from the receiver Of course, the ultimate response is purchases and satisfaction But the bank's use of products and services is the end result

of a very long process to pass consumer decisions Banking marketing managers need to know how to get the target public ready to buy products and services higher

The bank can look at the audience - or whether the target customers respond cognitively, emotionally or behaviorally This means that the bank may want to inculcate something in consumers' minds that will change consumer attitudes or motivate consumers to take action - that is to find and use products, its service