Nguyen Thi Thu Hang_graduation Thesis

Graduation  Thesis            

  STATE  BANK  OF  VIETNAM   BANKING  ACADEMY  OF  VIETNAM   FACULTY  OF  FOREIGN  LANGUAGE    -­‐-­‐-­‐-­‐-­‐š›&š›-­‐-­‐-­‐-­‐-­‐  

 

 

Banking  Academy  

 

   

 

 

    SOLUTIONS  FOR  THE  DEVELOPMENT  OF  BANK  MARKETING   TOWARDS  INDIVIDUAL  CUSTOMERS  IN     VIETNAM  PROSPERITY  JOINT  STOCK  COMMERCIAL  BANK  –  VPBANK                           )  

 

Supervisor:   Student:   Class:     Student  ID:    

NGUYEN  THI  HIEN  HANH,  M.A   NGUYEN  THI  THU  HANG   ATCA  –  K12     12A7511056        

          Hanoi,  May  2013           Nguyen Thi Thu Hang

ATCA – K12  

Graduation  Thesis  

 

Banking  Academy  

   

DEDICATION I dedicate this graduation thesis to my family, my friends and to Banking Academy of Vietnam

Nguyen Thi Thu Hang

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

ACKNOWLEGEMENTS First of all, I would like to express the profound gratitude to my supervisor NGUYEN THI HIEN HANH, M.A. for giving me great support, encouragement and constructive feedback to accomplish the study. I deeply appreciated all banking staff at Giang Vo sub-branch, Vietnam Prosperity Joint Stock Commercial Bank – VPBank for assisting and instructing me with work and data collection. I would like to give my special thanks to Ms. Bui Thi Huong Giang, Manager of Customer Service Finally, I wish to extend my heartiest thanks to all Banking Academy’s lecturers, who have equipped me with sufficient knowledge and my family, who has supported me wholeheartedly.

Nguyen Thi Thu Hang

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

EXECUTIVE SUMMARY This paper studies the solutions to improve the marketing activities in VPBank, particularly towards individual customers. It goes adead to understand theoretical framework related to marketing activities in banking sector before critically analyzing the current situation of Vietnam economy and situation of marketing activities in VPBank, primarily using four – year data from the VPBank Annual Report from 2007 to 2011. The theory mentions five fundamental aspects of bank marketing, including concept, roles, features of bank services, marketing strategy and tools used by bank marketers. It suggests that marketing approach to banking services involves anticipating, identifying, recipocating (through designing and delivering customer – oriented services) and satisfying the customers’ needs and want effectively, efficiently and profitably. Particularly, the bank marketing proved to be a neccessary activity, which strongly affect business performance of a bank. A study of its effects and problems was conducted with an emphasis on the situation of VPBank operations. Indeed, the bank has made continuous efforts in diversifing its products and services, adjusting price policy, distribution channels, and particularly concentrating on human fators. The impacts became apparent in recent years with the improvement in business reports and the increase in customer satisfaction. Also, the limitation of public confidence together with the modest performance compared to other banks were reported as the aftermath of increasingly competitive environment, innovation in technology, customer focus and awarenessm, suggesting that marketing activities in VPBank is still in need of further improvements. In an attempt to make VPBank more developed, some recommendations are proposed to the banks, such as setting a dynamic competition strategy, effective branding and image building; developing products policies, distribution channels and workforce performance, as well as adjusting price strategy and improving promotion policy. Nguyen Thi Thu Hang

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

LIST OF TABLES AND FIGURES LIST OF TABLES Table 1: Total assets and charter capial of some banks by 2012 (unit: billion dong) .. 21 Table 2: Interest rates and the savings deposits (interest paid at maturity) 19/05/2013............27 Table 3: Number of VPBank branches and Trading Offices & Savings by 2012 ....... 29 Table 4: Deposit mobilization structure in 2010 – 2011 in VPBank ........................... 34 Table 5: Interest applied for Phat Loc savings in Techcombank ................................. 39 Table 6: Number of ATMs and Branches &Trading Offices by 2011 ......................... 40

LIST OF FIGURES Figure 1: Structure of a bank product ......................................................................................... 8 Figure 2: Vietnam GDP growth rate from 2010 – I/2013 ........................................................ 14 Figure 3 : VPBank’s organizational structure .......................................................................... 18 Figure 4: Average measurement of Teller Service Quality in VPBank in 2011 ...................... 32 Figure 5: Operating time before and after the project Service Level Agreements ................... 32 Figure 6: Deposit mobilization from customers in VPBank from 2007 – 2011....................... 34 Figure 7: Outstanding loans to customers in VPBank from 2007 – 2011 ................................ 36 Figure 8: Some financial indicators in VPBank from 2007 – 2011 ......................................... 36

Nguyen Thi Thu Hang

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

LIST OF ABBREVIATIONS ACB

Asia Commercial Bank

Agribank

Vietnam Bank for Agriculture and Rural Development

Eximbank

Vietnam Export Import Commercial Joint Stock Bank

ATM

Automated teller machine

BIDV

Joint Stock Commercial Bank for Investment and Development of Vietnam

GDP

Gross Domestic Product

HCMC

Ho Chi Minh city

HDFC

The Housing Development Finance Corporation Bank iff Sri Lanka

HSBC

Hong Kong and Shanghai Banking Corporation

ICICI

Industrial Credit and Investment Corporation of India

OCBC

Oversea – Chinese Banking Corp

POS

Point of Sales

ROA

Return on Equity

ROE

Return on Assets

SBV

State Bank off Vietnam

SJC

Saigin Jewelry Company

SLAs

Service Level Agreements

SMEs

Small and Medium Enterprises

Techcombank

Vietnam Technological and Commercial Joint- stock Bank

USD

The United States dollar

VIB

Vietnam International Bank

Vietcombank

Joint Stock Commercial Bank for Foreign Trade of Vietnam

Vietinbank

Vietnam Joint Stock Commercial Bank for Industry and Trade

VNBC

Vietnam Bank Card

VND

Vietnam Dong

VPBank

Vietnam Prosperity Joint Stock Commercial Bank

VPBS

VPBank Securities Company

Nguyen Thi Thu Hang

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

TABLE OF CONTENTS DEDICATION   ACKNOWLEGEMENTS   EXECUTIVE SUMMARY   LIST OF TABLES AND FIGURES   LIST OF ABBREVIATIONS   CHAPTER 1. INTRODUCTION  .................................................................................................  1   1.1. Rationale of the research  .....................................................................................................  1   1.2.The objectives of the study  ...................................................................................................  2   1.5 Methodology of the study  .....................................................................................................  2   1.6. Scope of the study  ...................................................................................................................  2   1.7. Structure of the thesis  ...........................................................................................................  3   CHAPTER 2. THEORETICAL FRAMEWORK OF BANK MARKETING  .........  4   2.1. Concept of Bank Marketing  ...............................................................................................  4   2.2. The necessity of Bank Marketing towards individual customers  ......................  5   2.2.1. Marketing is effective tool to attract individual customers.  ........................  5   2.2.2. Marketing connects activity of banks and individual customers  ..............  6   2.2.3. Marketing towards individual customers contribute to the bank’s competitive position  ...................................................................................................................  6   2.3. Marketing Mix in Banking - useful tool applied in Bank Marketing  ..............  7   2.1.1.  

PRODUCT  ...................................................................................................................  7  

2.3.2. PRICE  ..................................................................................................................................  9   2.3.3. PROMOTION  ...............................................................................................................  10   2.3.4. PLACE  .............................................................................................................................  11   2.3.5. PEOPLE  ..........................................................................................................................  11   2.3.6. PROCESS  .......................................................................................................................  12   2.3.7. PHYSICAL EVIDENCE  ..........................................................................................  12   CHAPTER 3. THE CURRENT SITUATION VIETNAM ECONOMY AND MARKETING ACTIVITIES IN VPBANK  ..........................................................................  14   3.1. The background of Vietnam current economy  .......................................................  14   Nguyen Thi Thu Hang

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

3.1.1. The stock market set a new bottom  .....................................................................  14   3.1.2. The slump in real estate market  ............................................................................  15   3.1.3. Disorder in gold market  ............................................................................................  15   3.1.4. Banking sector sinks into troubles  .......................................................................  16   3.2. Introduction of VPBank  ...................................................................................................  16   3.3. The SWOT of VPBank  ......................................................................................................  17   3.3.1. STRENGTHS  ................................................................................................................  17   3.3.2. OPPORTUNITIES  ......................................................................................................  20   3.3.3. WEAKNESSES  ............................................................................................................  21   3.3.4. THREATS  .......................................................................................................................  22   3.4. The marketing strategies of VPBank  .........................................................................  23   3.4.1. PRODUCT POLICY  ................................................................................................  23   3.4.2. PRICE POLICY  .........................................................................................................  26   3.4.3. PLACE POLICY  .........................................................................................................  28   3.4.4. PROMOTION POLICY  ...........................................................................................  29   3.4.5 PEOPLE POLICY  ......................................................................................................  31   3.4.6 PROCCESS POLICY  ................................................................................................  32   3.4.7. PHYSICAL EVIDENCE  .........................................................................................  33   3.5. The achievements of Marketing strategies in VPBank  .......................................  33   3.5.1. Deposit mobilization activities  ...............................................................................  33   3.5.2 Credit activities  .............................................................................................................  35   3.5.3 Customer satisfaction  .................................................................................................  37   3.5.4. Awards  ..............................................................................................................................  37   3.6. The problems of Marketing activities in VBPank  .................................................  37   3.6.1. PRODUCT  .....................................................................................................................  38   3.6.2. PRICE  ...............................................................................................................................  38   3.6.3. PLACE  ............................................................................................................................  39   3.6.4. PROMOTION  ...............................................................................................................  40   3.6.5. PEOPLE  ..........................................................................................................................  41   CHAPTER 4. SUGGESTED SOLUTIONS TO IMPROVE BANK MARKETING  ...  42   Nguyen Thi Thu Hang

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

IN VPBANK  ..........................................................................................................................................  42   4.1. Setting a dynamic and effective competition strategy  .........................................  42   4.2. Developing product policies towards diversification and modernization  ...  43   4.3. Adjusting price strategy in line with market moves  .............................................  44   4.4. Developing distribution channels  ..................................................................................  45   4.5. Improving promote policy  ...............................................................................................  46   4.6.  Developing and improving workforce performance  ............................................  48   CONCLUSION  ..................................................................................................................................  49   REFERENCES  ..................................................................................................................................  50  

Nguyen Thi Thu Hang

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

CHAPTER 1. INTRODUCTION 1.1. Rationale of the research The 21st century challenged banks to prosper financially and survive in the face of an unforgiving economic environment. The banks, which are unable to keep pace with changed times and respond quickly to fast changes would be left behind in the race or vanished. In this context, marketing is playing a key role in addressing those challenges. Moreover, in a competitive market mechanism today, individual customers with their own characteristics are playing an increasing important role in the development of a bank. The proper attention to these customers will bring considerable income and steady growth for banks, particularly for a bank with the goal of "becoming one of the top five commercial banks, and top three leading retail bank in Vietnam" as VPBank. When the role of financial services offered by banks has grown continuously, there were mounting pressure on bankers for a more effective marketing management of their financial services. However, because of the current socio-political and economic situation in Vietnam, the banks seldom thought of the necessity of applying marketing task in their day-to-day operations in the past. While Vietnamese banks were accustomed to traditional business, the counter-parts in western countries are becoming financial supermarkets providing a wide variety of services. Because of the inefficiency of understanding about marketing activities under banking approach and tools used to achieve its objectives, it is difficult to design or evaluate policies and programs intended to address prevailing problems in Vietnam commercial banks in general and VPBank in particular. This calls for adoption of marketing approach towards promotion of banking services. Hence, the issue promoted me to conduct a study on “Solutions for the development of Bank Marketing towards individual customers in Vietnam Prosperity Joint Stock Commercial Bank - VPBank " as my graduation thesis. This paper is expected to provide the understanding about the theoretical framework of bank marketing activities towards individual customers; as well as the real situation, then draw results and limitations as a base to bring about the practical recommendations. Nguyen Thi Thu Hang

1  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

1.2.The objectives of the study The thesis attempt to: - Provide an insight into the marketing activities in banking sector, especially useful tools applied by marketers. - Critically analyze the current situations of marketing strategies in VPBank; as well as its achievements and problems in marketing activities. - Propose some recommendations to accelerate VPBank’s Marketing activities towards individual customers; improve its business performance and bank’s image. 1.4. Research questions The study is conducted to answer following questions: - How are marketing strategies applied in VPBank? What are the limitations of its marketing activities? - How to enhance the efficiency of marketing activities in VPBank? 1.5 Methodology of the study The research applies comparison and contrast methods based on quantitative method which is a research focusing on the collection and analysis of numerical data and statistics. To find an appropriate strategy for VPBank, the thesis will also analyze competitive advantages using SWOT model. Data is collected from secondary data source. They are extracted from the public annual reports of some commercial banks, to name but a few, VPBank, Vietinbank, Agribank, Techcombank, VPBank’s surveys, banking articles and legal documents related to banking system. 1.6. Scope of the study Customers play an extremely important position in the existence and development of a bank. In the context of recession, banks tend to concentrate on individual customers who bring more stable benefits to banks than corporate ones who are facing many difficulties. The present study is an attempt in studying marketing activities focusing on satisfying individual customers’ demand. However, the research concentrates only

Nguyen Thi Thu Hang

2  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

on the situation of VPBank, then give appropriate recommendations to this bank without mentioning to other banks. 1.7. Structure of the thesis In addition to Executive Summary and Conclusion, the thesis consists of four chapters: Chapter 1 gives an Introduction about the whole thesis including research rationale and research questions, methodology as well as the scope of the study. Chapter 2 explains some theoretical framework of Bank Marketing, focusing on marketing tools applied in marketing activities. Chapter 3 describes the current situation of Vietnam economy and marketing activities towards individual customers in VPBank in terms of elements of Marketing mix. Chapter 4 gives some solutions to promote marketing activities for individual customers in VPBank based on improving some limitations stated in chapter 3.

Nguyen Thi Thu Hang

3  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

CHAPTER 2. THEORETICAL FRAMEWORK OF BANK MARKETING 2.1. Concept of Bank Marketing Selling in banking is that of marketing concerned with demonstrating to the customer that the service is right for him or her. It is therefore, one aspect of the marketing process of promotion. If other aspects like identification of customer needs, price, etc. are conducted properly, then the final act of selling should follow quite naturally. Thus, in a marketing oriented bank selling act is the culmination of many other activities all designed to create the sales opportunities. For this reason one cannot say that banking and selling do not mix especially when considering the enormous range of profit structured services offered by commercial banks. The fiduciary role of banks stems from the need for bankers to gain commitment from customers to buy their services, which generally do not immediately appear to have life or death connotations or affect the quality of life of the purchasers. Return business comes from satisfied customers and this is important in banking. Unlike food or customer durables, which one has to buy to keep alive or remain decent and less persuasion is required, financial services have to be more actively sold. Fiduciary responsibilities are also related to the image of the bankers as impartial advisors.9 The concept of bank marketing has been generally viewed by various bank marketers “as that part of the management activity, which seeks to direct the flow of banking services profitably to selected customers”. From a strategic managerial perspective “bank marketing is an integrated business activity directed at identifying, creating and servicing demand”. Marketing activities must be integrated throughout the entire planning process and should permeate every aspect of a bank’s activities, from receiving deposits to corporate planning. Since the marketing focuses on the customers, the success of the bank is depend in its capacity to satisfy consumer wants and needs. A comprehensive explanation of bank marketing is given by Deryk Weyner of Barclay’s Bank. According to him, bank marketing is identifying the most profitable Nguyen Thi Thu Hang

4  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

markets now and in the future, assessing the present and future needs of customers, setting the business developments goals and making plans to meet them and managing the various services and promoting them to achieve the plans – all in the context of a changing environment in the market.” Thus the adoption of marketing concept by banks recognizes that customer’s needs are changing and banks must define these in explicit terms to satisfy them at a profit to the bank. The marketing concept basically requires that all activities that have any relation with the customer should be entirely co-ordinated by the marketing element in the bank. In other words, that a way of thinking along marketing lines is permeated into all areas of banking so as to enable the establishment of a marketing – oriented operation. 2.2. The necessity of Bank Marketing towards individual customers 2.2.1. Marketing is effective tool to attract individual customers. Customers play a vital role in banking activities. The demand of individual customers is diverse, especially in the growing and constantly changing society. Therefore, the use of marketing tools to uncover the needs of individual customers can be seen that the initial success of the bank, then banks will conduct research to launch new products to meet customers’ needs. Moreover, individual customers tend to make a comment on the pros, cons and quality of products and services. Therefore, the marketing of improved service will retain customers, create better assessments and have a strong influence on the decision of the group of potential customers. Because those who are satisfied by banking products will become effective advertising tool, banks will pay no cost. At the same time, banks also need to conduct marketing activities to "nourish" the satisfaction of individual customers in order to prevent them from falling into the “marketing trap” of other competitors. On the other hand, a significant amount of individual clients works in corporate, once they are met their needs, the bank have more chance to be introduced to their work, which means increasing organizational customers (in addition to individual customers).

Nguyen Thi Thu Hang

5  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

2.2.2. Marketing connects activity of banks and individual customers Personal customer service is both the object of both the banking market. Meanwhile the bank's operations and market relationships and the impact of organic influence each other directly. Therefore, to understand market needs to be closely linked with the activities of the bank will make the market of banking operations with high efficiency. This will be made possible through a bridge bank Marketing by Marketing help identify market factors, changes varied needs of individual customers about products and services. On the other hand, marketing is a tool to lead the direction of capital flows, exploiting the ability to mobilize capital, transfer the needs of the capital properly. Thanks to marketing, banks can coordinate and orient the activities of all departments and all employees to better meet customer needs. According to R.Brion and J.Staffort in the article named "Myths of Marketing in banking activities", the two-side role of bank marketing is stated: one is the determination of marketing mix methods on the basis of market research to capture the business opportunities; the other is the combination of all banking activities in the desire to satisfy the needs of customers (especially individual customer with diverse desire) at the highest level, which also brings benefits to the banks. 2.2.3. Marketing towards individual customers contribute to the bank’s competitive position One of the important tasks of marketing in banking sector is to create its competitive position in the market. Due to the diverse and complex needs of individual clients, the creation of the distinctive products and services with competitors is the fact that banks have created its competitive position. The process of creating the competitive position of banking is closely related to the creation of distinct products and services and specification of these products and services in target markets to make individual customers realize their benefits. Hence, the creation of the competitive position relies heavily on the marketing ability of each Nguyen Thi Thu Hang

6  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

bank. It requires marketing department must be fully aware of the possibility of the bank, the techniques used, as well as the specific needs of the target market.

2.3. Marketing Mix in Banking - useful tool applied in Bank Marketing Marketing strategy is a plan for selecting and analyzing a target market and developing and maintaining a marketing mix that will satisfy this target market. A target market is a group of consumers at whom an organization directs its marketing efforts. The marketing mix consists of four basic variables: Product, Price, Promotion and Place. A major task of marketing management is to blend together these elements of the marketing mix in such a way that they fulfill the needs of selected target markets.

However as a service is not tangible the marketing mix for a service has three additional elements: People, Process and Physical Evidence.  

2.1.1.

PRODUCT

The products of a bank are essentially services. Under the marketing concept services offered by the banks have to be worked out after taking into account the customer needs and preferences. In this perspective what the customers are buying from the bank is security, convenience, prestige, freedom and a number of other want and need satisfying extensions that are packaged in the form of basic banking services. The product component of the financial services marketing mix is affected by the problem of copying. It is difficult to use specific service attributes as the basic for developing competitive advantage because distinctive attributes are easily duplicated by competitors. By contrast, improvement in the quality of service provision in general and customer care in particular, are recognized as being important strategies for successful product differentiation.

Nguyen Thi Thu Hang

7  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

Product development can serve bank marketing ends by attracting consumers from outside the present market, increasing sales to the existing market and reducing the cost of providing an identical or similar service. The product development strategies include expansion strategy, differentiation strategy and satlelite product strategy. The banking products will be set of different features and functions, which satisfy diverse needs of customers. However, a banking product is usually composed of three levels.

Core Products

Promotion  

Form                                                 Symbol    

Tangible Products

Meet essential demands

Additional Products  

Terms

Image

Additional services

Figure 1: Structure of a bank product (Source: Bank Marketing Textbook, Banking Academy, 2004, p.45)

Firstly, the core product The core banking products usually meet urgent needs (main) of customers. In essence, these are the main benefits that customers look for in a bank, the core values that banks need to sell to customers. Secondly, the tangible product

Nguyen Thi Thu Hang

8  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

The tangible product is the specific part of banking products. This is a form of expression outside of banking products and services such as its name, form, characteristics, symbols, terms of use. It is the base for customers to identify, distinguish, compare and select products and services between banks. Thirdly, the additional product The additional products are other benefits added to the existing products or services, in addition to the primary benefit of the customers. They make banking products and services more complete and satisfy the needs and desires of customers, differentiating themselves from competitors. The additional products are also strong elements of competing banks today because of its versatility. The success of many banks around the world is for the fact that their marketing department realizes the products and services suitable to each segment of customers. When implementing services or products, the marketing department firstly should define the core needs of its customers, create the specific image of the products and services to stimulate customers’ demand. This is also the basis for customer to distinguish the banks from the others. Then the bank should seek to increase the additional characteristics to create a collection of utilities, the benefits that can better satisfy diverse needs of customers than competitors. 2.3.2. PRICE Pricing in banking relates to the interest rates paid by the bankers on deposits, interest charged by the banker on loans and demand draft, charges for various types of transactions and fees for certain services. In the formulation of marketing mix, the pricing decisions occupy a place of outstanding significance. The pricing decision includes the decisions related to interest and fee or commission charged by bank. Keeping in view the level of satisfaction of a particular segment, the bank has to frame the pricing strategies.

Nguyen Thi Thu Hang

9  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

The banks are required to frame two-fold strategies. Strategies concerned with interest and commissions to be paid to the customer and interest and commissions to be paid by the customers for different types of services. 2.3.3. PROMOTION Banks promotional activities have several dimensions like building of image and reputation, differentiate from competitors, generate interest and knowledge, attract new customers and generate customer loyalty. To achieve these objectives the banks develop promotional strategies and tactics, which utilize the usual mix of advertising, sales promotion, public relations and personal selling. Financial services are getting more and more complex and there are many of them to choose. Banks can market current account, savings and fixed deposit accounts without sales people. But in the case

of complex financial services such as portfolio

management, mutual funds, factoring etc. requires interactive dialogue by sales people. Thus there is a real need for developing an ongoing professional and proactive sales program in banks. The role of advertising in banks must be to complement personal selling and not to substitute. Best financial service advertisers will attempt to pave the way for sales people in three ways. It promotes the bank, bring more credibility and send messages to market segments. Public relation strategy will help to publicize a bank and its services so as to maintain favorable images and credibility. Of late banks are practicing relationship banking, where customers are viewed as clients and emphasis is to retain than acquiring new customers. The rationale behind relationship banking is to transform single-service users in to multi-service clients and indifferent customers into loyal clients.

Nguyen Thi Thu Hang

10  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

2.3.4. PLACE The place decision mainly deals with selection of a suitable location for the branch. Sound location decisions help in activating the business. The location should have adequate availability of transportation, communication, electricity and other necessary facilities for the smooth functioning of the banks. Technological development, increased customer satisfaction, inadequacy of the traditional challenge to serve all customer segments have brought about ATM, tele-banking, home banking, Internet banking and now SMS Banking. Another significant development is a strategic alliance set up by the private banks to overcome the handicap of limited branch network. In such alliance the branch network of one branch will be used by the other for selected transaction like bill collection, cheque collection, etc. 2.3.5. PEOPLE Banking products cannot be separated from the person (banker) who markets them. The product and the seller together constitute the banking product. Banks should adopt internal marketing in order to make the whole business customer-oriented. The bank products should be marketed to the employees first before they are marketed to customer. The corporate mission should be communicated repeatedly and effectively to all employees by the top management. The placement policy should emphasize that the recruits should not only be conversant with all aspects of banking businesses but also have the skill for social interaction and tolerance for interpersonal contact. The quality for banking sector is an aggregation of all the properties, which are found essential for generating the efficiency and projecting a fair image. Even efficiency essentially is supported by ethical dimension, humanity and humanism. The development of human resources makes the way for the formation of human capital. Human resource can be developed through education, training and by psychological tests. Even incentives can inject efficiency and can motivate people for productive and qualitative work.

Nguyen Thi Thu Hang

11  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

2.3.6. PROCESS It involves all activities right from the product conception stage, to product designing and development down to its marketing at the branch level. Flow of activities: There has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly. a) Standardization: banks have got standardized procedures, got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction. b) Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives. 2.3.7. PHYSICAL EVIDENCE The physical evidences include signage, reports, punch lines, other tangibles, employee’s dress code etc. The company’s financial reports are issued to the customers to emphasis or credibility. Even some of the banks follow a dress code for their internal customers. This helps the customers to feel the ease and comfort. Signage: each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity. Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks, cheque books, etc reduce the inherent intangibility of services. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.

Nguyen Thi Thu Hang

12  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

Most private and foreign banks like ICICI, Citibank and HDFC bank portray a new look to the customers rather than drudgery banking counters. Attractive brand names, logos, symbols, etc. add to the customer’s perception of service quality. A bank with proper marketing policy will ensure to meet its objectives. After chapter II - Bank Marketing for individual customers, we have gained a basic understanding of the marketing in banking, which would be basis for further studying the situation of Bank Marketing activities towards individual customers in VPBank mentioned in chapter III.

Nguyen Thi Thu Hang

13  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

CHAPTER 3. THE CURRENT SITUATION OF VIETNAM ECONOMY AND MARKETING ACTIVITIES IN VPBANK 3.1. The background of Vietnam current economy 2012 can be considered as a gloomy picture of economy for most countries in the world. While USA is still struggling with the policies to deal with the financial crisis, Europe crumbled with prolonged debt crisis. In Asia, China, the 2nd largest economy in the world, is also slowing down with the decline in a series of growth target. Obviously, Vietnam is not out of this spiral when facing many challenges to find a solution for the problem of growth in 2013.

Figure 2: Vietnam GDP growth rate from 2010 – I/2013 Source: Tradingeconomics.com 3.1.1. The stock market set a new bottom The unfavorable factors both in micro and macro economy made most listed companies get into trouble during 2012 right from the beginning. On 6th November, Vietnam's stock market set a dissapointed record when HNX-Index reached its lowest level in 12 years of existence in the market (50.7 points). In order to increase transaction values and stimulate the development of the market, the State Securities Commission of Vietnam has agreed to lengthen the traded time until daily 14.5 pm in HNX and HSX from 5th March. However, these efforts have not brought any positive results yet: low-value transactions, poor performance of stock Nguyen Thi Thu Hang

14  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

companies, layoffs and cut down on salary and bonus. Securities used to be one of the sectors offering the highest bonus in its peak period of the years 2006 and 2007, but at the present, many securities companies have to owe their staff salaries during the past year. 3.1.2. The slump in real estate market According to the statistics, the inventory of real estate market is up to 70,000 apartments in HCMC and Hanoi, not including a series of villas, land in many other cities across the country with values approximately 300 trillion VND. These figures reflect the slack status of the current real estate market. Investors have tried every way in order to stimulate the demand, but they did not work. The reason first stems from the rampant investment without practical and feasible plans. Most businesses and organizations rush to “pour money” into real estate aiming at middle and senior segment. At the same time, a huge amount of this type of goods was produced, even in Hanoi was able to solve the housing problem by 2050. However, as investors and speculators pushed prices up too high, inconsistent with the actual affordability of the majority of the people, real estate has never got difficult as in 2012. Although the real estate market in Hanoi and HCMC have noted the strong decline in all segments in 2012, then the price is still far from the affordability of those wishing to make home-buying in, so in 2013 market likely to adjust downward until they reach their real estate prices reasonable. 3.1.3. Disorder in gold market The introduction of Decree 24 on the management of gold trading activities as a tool to control the gold market, limit the difference between the world price and the home price with the purpose of removing gold speculation and smuggling. However, after officially taking effect on 25th May, the gold market goes against lawmakers’ expectations. Accordingly, SJC gold – the brand of state widened the gap with Nguyen Thi Thu Hang

15  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

world prices, fluctuating at around 3 million per tael. But in the last days of 2012, this gap has to be loosened up to 5 million VND per tael. Then, domestic prices became more and more optimistic with the world price even as government took actions. 3.1.4. Banking sector sinks into troubles “Interest group” still exists in Vietnamese banking system. Some commercial banks are hold and controlled only by a few people in a family in many different forms. Cross-ownership situation also exists as a major problem of the current commercial banks. The owners of this bank may establish subsidiaries, make a contribution and ownership participation in other bank’s operation. This creates a negative situation, which the banks conceal together to circumvent the regulation of credit and banking activities and gain illegal profit. Besides, bad debts are also emerging as a potential danger of the economy. So far, each of the organizations release different figures of bad debt. According to banks’ self-reports, the total bad debts fell to about 100 trillion VND; however, this figure by the State Bank is approximately 202 trillion VND. The ambiguity of the figures makes this situation becomes more complicated. 3.2. Introduction of VPBank Vietnam Prosperity Joint-Stock Commercial Bank (formerly known as VIETNAM JOINT-STOCK COMMERCIAL BANK FOR PRIVATE ENTERPRISES (VPBANK) was established under the business license No. 0042/NH GP issued by the Governor of the State Bank of Vietnam on 12 August 1993 with an operation period of 99 years. The initial charter capital was VND 20 billion. Since then, VPBank has increased charter capital several times in order to meet its growing demand. The current charter capital of VPBank is VND 5,050 billion. Aiming to optimize work effectiveness and solidarity among all members, VPBank is coordinating with consultants to create its unique corporate culture to embody the six following core values: 1. Customer focus Nguyen Thi Thu Hang

16  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

2. Productivity 3. Ambition 4. People development 5. Trust 6. Making the difference As the foundation of VPBank’s corporate culture, these six core values are extensively communicated that help guide the behavior of each and everyone in the bank towards these desired standards. These core values are widely introduced throughout the system that empowers VPBank in its solid steps into the next phase of development. Despite the difficulties from the economy and changing policies which are objective, VPBank will continue to expand and develop its network in 2013, an important year for acceleration in the Bank’s five year development plan to 2017 in order to build stronger competitive advantages and improve its organizational structure. 3.3. The SWOT of VPBank The study applies SWOT model (stand for STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS) to critically analyze the current situation of VPBank. 3.3.1. STRENGTHS A - Organizational structure On August 24, 2011, VPBank officially announced the new organizational structure to build a more effective mechanism to meet its demand for expansion. In particular, sales divisions and distribution channels were independently set up from business and support divisions with a view to better serve the customers of various segments.

Nguyen Thi Thu Hang

17  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

Figure 3 : VPBank’s organizational structure (Source: VPBank’s Annual report 2012)

B - Qualified staff By 31 December 2011, the total number of professional employees of VPBank reaches over 3,000, over 92% of them are under 40 and about 80% of them hold undergraduate and graduate degrees. This is VPBank’s advantage to apply advanced technology into banking activities. Nguyen Thi Thu Hang

18  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

As coming to conduct transactions VPBank, customers will be impressed by young, enthusiastic and friendly working environment. VPBank staff are always: - Responsible for clients - Keep its reputation with customers - Respect and serve customers with all their enthusiasm VPBank tries to build up a strong and distinctive corporate culture, with the guidance of top experts in Vietnam, in order to link all members of the Bank to a common goal. C – Diversified products and services VPBank offers a wide range of products and services with various benefits for clear distinction of three specific customer segments: individual customers, SME customers and big customers. For personal customers: - Providing Current Account and VPSuper Account - Savings Account: Accumulative Savings, Prosperity Savings with Floating Interest Rates, Online Savings, etc. - Issuing cards: Autolink Card linked with payment account T24, Vietnam Airlines – VPBank Platinum MasterCard, Platinum Credit Mastercard - Loans: Loans for overseas education, Personal Installment Loans with Collaterals, Loans Secured by Valuable Papers Issued by VPBank, etc. - E-banking service: SMS Banking, Internet Banking, E-commerce service. For SMEs: - International Payment: Import L/C (issuance, amendment, payment), Authorized Import Collection, International Remittance - Trade finance: project financing package, Finance for Distributors/ Agents, Import L/C Finance Cash Management: Cash Pooling, Authorized Collection over the counter, Domestic money transfer. - Loans: SME Car for Business, Money claim by guarantee, Guarantee Verification, etc. Nguyen Thi Thu Hang

19  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

For Corporate: - Services & Trade Finance: Documents Collection (Documents against Acceptance, Document against Payment), Loans for Import, Issuance of Import L/C - Financial Market Products: Foreign Exchange Forward, Interest Rate Swap, Foreign Exchange Swap. - Guarantee: Performance Guarantee, Tender Guarantee, Shipping Guarantee. - Programs: Full Package Project Financing, Distributors/Agents Financing, etc. D – Stable base of customers The current VPBank’s precusor is Vietnam Joint – Stock Commercial Bank for Private Enterprises, which targeted to serve SMEs and individual customers; therefore, they continuously expand their network, branches and trading offices as well as develop products and services targeting this segment. This share provides VPBank with stable base of customers that builds up enlarge its potential clients. 3.3.2. OPPORTUNITIES A – Potential market Vietnam has a young population structure with 88.87 million people by 2012, in which 52 million is in working age. This is the group of potential customers, who has income, storage needs and the wants of using banking products. The number of students specializing in finance and banking sectors is huge, and their quality is more and more improving. VPBank can take advantage of "gray matter" in order to further promote the available products and services. B – Facilitating capital and Innovation in technology Economic integration facilitates capital, technology and personnel training, develops comparative advantages of VPBank to come up with required international competition, expanding markets abroad. Nguyen Thi Thu Hang

20  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

VPBank learns a lot of experience on management experience, banking services and products quality from foreign banks. 3.3.3. WEAKNESSES A – Promotion policy There are not many forms of promotion and brand promotions. Marketing activities are mainly awarded and give special gifts to customers. VPBank’s website has not been given much attention. Some functions such as online consultants are limited, which cannot meet the customers’ demand immediately. B – Low scope of capital According to Reuters’ data and financial statements of banks in 2012, Techcombank has the largest total assets in private sector and Agribank does among state banks. VPBank ranks eight among listed banks with VND 98,000 billion in total assets. Bank

Total Assets

Charter Capital

Agribank

560.000

29.605

VietinBank

503.606

26.217

BIDV

484.696

23.012

Vietcombank

484.696

23.174

Techcombank

179.732

8.848

ACB

177.011

9.377

Military Bank

175.612

10.625

VPBank

98.000

5.770

Table 1: Total assets and charter capital of some banks by 2012 (unit: billion dong) (Source: From banks’ annual reports) Nguyen Thi Thu Hang

21  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

3.3.4. THREATS A - Competition pressure from foreign and domestic banks The integration of financial markets will increase the number of banks with strong financial resources, technology, management skills, which makes increasingly competitive pressure. Currently, Singapore's OCBC (Oversea-Chinese Banking Corp) Bank is the only strategic partnership. While other banks has signed a strategic commitment about contribution, products and services with large corporations and domestic banks and foreign financial institutions. B - Pressure to improve legislation, monitoring mechanisms and risk management The domestic legal systems are incomplete, inconsistent, many shortcomings still exist compared to the requirements of international banking integration. Economic integration enhance international capital exchange as well as risks of the banking system, while the management mechanisms and system of banking information supervision are still very primitive, not in line with international practices. In response to the difficult period, the government decided to tighten both monetary and fiscal policies and take bolder measures. The SBV applied a ceiling interest rate on both domestic and foreign currency deposits mobilized by credit institutions from their customers. It required credit institutions to apply demand deposit interest rate for customers with early withdrawal and limit the scope of foreign currency lending by credit institutions. In late November 2011, the SBV loosened the regulations on real estate loans. With the removal of four items from the non-production sectors list, banks could easily reach the percentage of non-production loans of 16% at the end of 2011. In 2011, the SBV also introduced measures to strictly control quasi-lending investment activities and limit the licensing of new branches. Nguyen Thi Thu Hang

22  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

C – Uncertainties of economy The difficulties and challenges of 2012 were tougher than expected: prices of food, crude oil and raw materials jumped sharply in the world market; stock market plunged; public debt crisis were witnessed in many countries; the world economic growth slowed down while inflation continued to accelerate in Vietnam. These uncertainties in the world economy exerted negative impact on the Vietnam economy. The local economy faced high inflationary pressure resulting in high interest rates. Gold prices fluctuated dramatically while production activities suffered from various difficulties; the real estate market was nearly frozen; macroeconomic instability became a major challenge. 3.4. The marketing strategies of VPBank In the current market economy, Vietnamese commercial banks are competing fiercely to win their market. In this economy context, VPBank chose the right path, which is consistent with the ability of the bank targeting not only the small and medium enterprises and individual clients but also corporates, with the goal of becoming "one of the five leading retail commercial joint-stock banks in Vietnam". VP always applies flexible marketing policies in each period to meet customer needs. The study analyzes VPBank’s typical products in addition to the marketing strategies that are applied to create their distinctions such as policies in people, distribution, physical evidence, etc. 3.4.1. PRODUCT POLICY VPBank provides currency trading and its banking services such as mobilizing capital (receiving deposit from customers) in VND, foreign currencies; utilizing capital (offering credit, contributing capital, joint venturing) in VND and foreign currencies; providing intermediary services (domestic and international payments, treasury services, overseas remittance and fast remittance via banks); conducting trading in foreign currencies; issuing and providing payment services for credit cards, debit cards, etc. Nguyen Thi Thu Hang

23  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

To better meet customer’s needs, the Retail and SME Banking Division has designed and launched various new products, consolidating sustainable relationship with existing customers while attracting new customers as well. Capital mobilization activities in 2011 faced with difficulties due to fluctuation in interest rates and severe competition among commercial banks. New products like VP Super Account, Online Saving, Foreign Currency Saving Account namely Prosperity, Floating Saving Prosperity, Accumulative Prosperity Saving, etc. have helped stabilize capital mobilization activities of VPBank. The VP Super Account, a package product includes current account, ATM card, Internet banking and SMS banking services. The product has attracted numerous customers. The Bank has designed and launched mechanism, policies and better products for individual customers, especially namely Over – one – month Flexible Savings. This strategic product was specifically designed for individual customers. This Service offers customers highest autonomy and best interest rate. This Service also allows customers to withdraw principal partially and receive interest payment based on the actual deposit time, the remainder of principal will be maintained.

VP Super Account is a whole personal account package with modern banking facilities to help customers to manage the account efficiently, conveniently and safely. The package includes: Flexible Current Account, ATM card with high limit, Online Banking Service - Premier Package, SMS Banking Service - Premier Package. VP Super Account brings many benefits to customers such as: -

Maximum saving with no fee of package opening including account, card and service application; no transactions fee (money deposit/withdrawal, internal/ interbank transfer), Internet Banking, SMS Banking fees.

-

Maximum Convenience with support in transactions over the counter, transactions via SMS Banking, Internet Banking... with the highest transaction limit.

Nguyen Thi Thu Hang

24  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

These are only two of various new typical products as an illustration of VPBank’s continuous effort to make improvements and innovations in their products to better satisfy their customer demand.

VPBank’s products will be a set of different features, functions and satisfy diverse desires of customers. The co-brand card “Vietnam Airlines - VPBank Platinum MasterCard” is an example, which still makes sure three levels of a banking product. Core products The co-brand card “Vietnam Airlines - VPBank Platinum MasterCard” is designed exclusively to fit with high-class lives of elegant and triumphant customers. This card not only helps customers make convenient payment anywhere, anytime but also offers customers with a mechanism to exchange any spending with MasterCard for attractive flight miles. -

Customers can accumulate GLP air miles as exchange for every spending with the card.

-

Credit limit up to VND 1 billion, which allows customers to enjoy a number of luxurious and first-class services.

-

This card uses the chip technology in compliance with the EMV standard in order to reduce card frauds.

Tangible Products The co-brand card “Vietnam Airlines - VPBank Platinum MasterCard is the card for high-class customers and luxury consumers who frequently go on business, tourism. The name itself reflects the high – class of cardholders with the well – known brand (Vietnam Airlines). Moreover, cards are designed with luxurious and elegant style. It is the important base for customers to identify, distinguish and select products and services of VPBank, instead of that of other banks.

Nguyen Thi Thu Hang

25  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

Additional Products Cardholders of Vietnam Airlines - VP MasterCard also can enjoy luxurious offers from VPDiscovery program in the high-class hotels, restaurants, spa such as five-star hotel chains Victoria, Furama, Palm Garden; the leading fashion brands like Chicland, Vania; restaurant chain such as Seoul Garden, Thai Express, King BBQ, etc. In addition to making domestic and international payments with a high limit, safety and security, the cardholders also enjoy the world-class experience from VPBank, which accumulate points in exchange for free air tickets and the chance to upgrade to business class to any location in the world. 3.4.2. PRICE POLICY Prices are expressed in the form of interest, fees and commissions. Interest rates are adjusted in line with the changes of market interest rates. This shows the flexibility and responsiveness of VPBank’s business. Currently VPBank applies rates for deposits, savings deposits normally are:

Nguyen Thi Thu Hang

26  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

VPBank Interest (%)

Techcombank Interest (%)

Marturity VND

USD

VND

USD

Current account

2.00

0.50

0.50

0.10

1 month

7.50

2.00

6.85

2.00

2 months

7.50

2.00

6.85

2.00

3 months

7.50

2.00

6.85

2.00

6 months

7.50

2.00

7.05

2.00

12 months

9.50

2.00

8.85

2.00

24 months

9.50

2.00

8.85

1.55

36 months

9.50

2.00

8.85

1.55

Table 2: Interest rates and the savings deposits (interest paid at maturity) 19/05/2013 (Source: VPBank’s website and Techcombank’s website) For deposits, banks offer different interest rates based on maturities in order to encourage depositors with long-lasting commitment to the bank. Compared with the interest rates of different banks, interest rates are competitive. This is the reason why VPBank usually gains interest from customers. For loans, in order to express their gratitude and support customers in making consumer plans, business, VP Bank launches program in which loans with super preferential interest rates for individual customers are offered from 2nd May 2013 to 30th June 2013. Accordingly, consumer loans for house purchase, home repair and construction, car purchase, business investment, etc. VPBank will offer preferential interest rates from only 6% per year, the maximum loan value of each loan up to 5 billion VND. Nguyen Thi Thu Hang

27  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

A special feature of the program is that many options are suggested for customers. Specifically, customers can choose the interest rate of 6% per year during the first six months, applying for a loan with a minimum time commitment of over 24 months, or 9.99% in the first 09 months for house purchase, home construction and repair, 9.99% in the first 06 months for car purchase; or 9.99% in the first 03 months for business loan. At the same time, Techcombank announces reference rate of 10,69 % per year for new personal loans which were approved from 3rd May 2013. For the fees: the current fees are lower than other banks, so VPBank should adjust to reasonable levels. For example, open a new account will not charge at VP Bank, but other banks like Techcombank will charge customers 100,000VND for personal accounts. 3.4.3. PLACE POLICY Branch: VPBank opened various new branches. By December 31, 2012 VPBank had 205 branches in operation throughout the country. VP Bank's ATMs are also mainly located in the major cities in order to meet the needs of the growing trading customers. Branches are built in the favorable position of traffic and crowded residential areas. This would be a very favorable transaction for all customers at home and abroad, especially in developing foreign exchange operations as many tourists to visit Vietnam every year. ATM: 58 newly installed ATMs, increasing to 291 in total by end of 2012. This figure rises 25 % compared to that in 2011 POS: Successfully linked to Banknetvn and VNBC via Smartlink. This connection allows VPBank customers to use card to make payment at 50,000 POS of 29 member banks of Smartlink-Banknetvn-VNBC nationwide. The bank also transformed its management and business operation from geographic into economic-zone structure. This transformation helped create an appropriate Nguyen Thi Thu Hang

28  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

business strategy and adapt the bank’s unique business environment to each area. Region

Branches

Trading Offices & Savings

Hanoi

6

56

Ho Chi Minh

2

36

The North

11

29

North Central

6

26

South Central & Central Highlands

5

12

South East

3

2

South West

6

5

TOTAL

39

166

Table 3: Number of VPBank branches and Trading Offices & Savings by 2012 (Source: VPBank’s Annual Report in 2012) 3.4.4. PROMOTION POLICY This is one of the most effective marketing policies applied VPBank. Marketing activity is indispensable for any business operating in the public sectors. A new product was launched with the advertisement plan on mass media as well as through attractive banners hanging outside branches or trading office. For example, VPBank cooperated with Western Union to launch the promotion “Spring Reunion, Tet Gatherings” from 1st January to 28th February 2013. Accordingly, fund receivers of Western Union at any VPBank transaction office nationwide got a lucky scratch card for each transaction performed during the promotion period. These scratch cards shall be redeemed immediately for various attractive prizes including 03 trips to Korea, 15 trips to Malaysia – Singapore and more than 20,000 in-kind or cash prizes.

Nguyen Thi Thu Hang

29  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

Marketing today includes offline marketing and online marketing (Internet marketing), in which online marketing is becoming increasingly important as the number of Internet users is rapidly increasing. In Vietnam, this figure is 31.1 million by July 2011, an increase of 24% over 2010, accounting for 30% of Vietnam's population. This number of Internet users has become the target customers of many businesses, including banks. VPBank is also aware of the importance of online marketing through onsite Marketing which immediately understand the bank's website. A website is an effective tool to meet the information needs of the customer at any time and anywhere. The interface and layout of the website are logically arranged and attractive with the VPBank’s colors (green and red). Content of newly products and services and information about events and promotions are shown in front page to attract the attention of customers. Customers also can find records and application forms on VPBank’s website, instead of taking them at trading offices or branches. This helps time – saving for both the bank and their clients. VPBank always make efforts to gain social recognition through many meaningful events. This affirms VPBank’s image in customers’ mind, which brings the bank more than profit. VPBank Securities Company (VPBS) is Platinum Sponsor for Charity Program “Hanoi Run For Children 2012”. “Hanoi Run For Children” is a meaningful charitable program, held annually in order to raise money for disadvantaged children suffering from cancer and heart diseases in Hanoi. In the spirit of a good – will for community health and advanced society, VPBS looks forward to building a healthy, civilized community with strong healthcare system. Moreover, in 2012, an exchange event called “Students and Integrity” was held by the Youth Union of Hue University, in which VPBank was the major sponsor. At the event, students had chances to listen to economic experts’ sharing about their experiences and useful knowledge regarding student’s majors and social knowledge, which helps students gain adequate information and take bold steps into the future.

Nguyen Thi Thu Hang

30  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

3.4.5 PEOPLE POLICY On 10 September 1993, VPBank officially started its operation with only 18 staff members at No. 18B Le Thanh Tong Street. The number of VPBank's staff has increased in line with its growth and expansion of operating network. By 31 December 2011, the total number of professional employees of VPBank reaches over 3,000, over 92% of them are under 40 and about 80% of them hold undergraduate and graduate degrees. Recognizing that the quality of employees is the strength of the bank, VPBank has always paid attention to enhancing its human resource management. Internal and overseas training courses are regularly held by VPBank to improve the professional qualification of its employees. The project of comprehensive service quality improvement (Service 100+) was a training/supportive program for service quality at VPBank in order to build up a new image of VPBank as more professional, dynamic and friendly. The program was designed to retrain on products, process, sales attitude and how to gain the best quality, and the best image of teller team. Products: The program has been redesigned systematically to help staff better understand the products of VPBank and competitors. Services: The program focused on service quality and how to make a positive difference for customers. Encouraging policies: The program systemized the remarking process and bonus at branches including index of non-financial work effect, building a professional working team that represents VPBank culture. Mystery shopping project helped review all branches over 7 big cities and provinces including Hanoi, Ho Chi Minh City, Hai Phong, Thanh Hoa, Hue, Da Nang and Can Tho. According to the assessment of mystery shopping project, service quality of VPBank Nguyen Thi Thu Hang

31  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

in 2011 was positively improving with high customer satisfaction. This also helps VPBank assess their staff regularly in order to improve their performance and working attitude.

Figure 4: Average measurement of Teller Service Quality in VPBank in 2011 Source: VPBank’s Annual report 2011 3.4.6 PROCCESS POLICY In 2011, the Process Supervisory Department set up Quality Commitment for 20 Head Office’s divisions under the direction of CEO. This was to create a service quality standard at Head Office’s divisions and aimed to improve the customer satisfaction. After a year of deployment, Service Level Agreements (SLAs) was the foundation of quality service culture across Head Office‘s divisions.

Figure 5: Operating time before and after the project Service Level Agreements (Source: VPBank’s annual report 2011) Nguyen Thi Thu Hang

32  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

In 2011, the Process Improvement Department changed 4 at-the-counter processes including opening savings, current, corporate and secondary account. As stated in the chart, time for processing transactions all shorten significantly after project. This improvement helped time saving and eliminate redundant steps for tellers, supervisors and customers. 3.4.7. PHYSICAL EVIDENCE With the business plan targets annual growth of 20% - 50%, the size of the departments at the Head Office and its organizational structure must also change correlatively to meet the needs of bank’s management. Therefore, banks need a new headquarters, which is large enough to meet not only current needs but to the growth demand in the next 3-5 years. Therefore, VPBank decided to relocate its headquarters from 8 Le Thai To (Hoan Kiem District) to floor 1-7 Capital Tower at 72 Tran Hung Dao street (Hoan Kiem District). 3.5. The achievements of Marketing strategies in VPBank VPBank is on the way to assert its position, expanding its business scope; the public has gradually come to know through photos VP mass media, business results improved over the years recently. By marketing and more customers use the products and services as well as how to use a reasonable cost, the performance of the 2005 Hanoi branch very positive results. Thus, the criteria for funding and loans are rising sharply next year as compared to last year: 3.5.1. Deposit mobilization activities Deposit mobilization activities of VPBank suffered from severe competition, particularly in the last months of 2011. Deposit reduced for a while and leveled off at the end of the year. Still, deposit mobilization activities remained stable and showed better growth than last year. As of December 31, 2011, deposits from customers were VND29,412 billion, an increase of VND5,442 billion or 23% against last year.

Nguyen Thi Thu Hang

33  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

Deposits and loans from credit institutions went up by 86%, from VND 13,782 billion at the end of 2010 to VND 25,588 billion at the end of 2011. VPBank continued to issue valuable paper in the year of 2010 and at the end of 2011, the balance increased by VND 5,411 billion, which was equivalent to 56% as compared to previous year that reached VND 15,042 billion. The total mobilized capital by end of 2011 reached VND 71,059 billion, increasing by 46% as compared to the previous year, which was equivalent to VND 22,340 billion.

Table 4: Deposit mobilization structure in 2010 – 2011 in VPBank (Source: VPBank’s annual report 2011)

Figure 6: Deposit mobilization from customers in VPBank from 2007 – 2011 (Source: VPBank’s annual report 2011) Nguyen Thi Thu Hang

34  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

3.5.2 Credit activities Credit and investment activities have encountered difficulties in changing the targeted customers since the Resolution No. 11/NQ-CP and Instruction No. 01/ CT-NHNN of the SBV were issued. With features of a retail bank that serves small and medium enterprises as well as individual customers, loans to individual customers account for a considerable proportion including mortgage loans and car loans and other personal loans. Almost non-production loans were long and medium term; therefore, it is difficult to quickly reduce the ratio of non-production loans as required by the SBV. In this context, VPBank adjusted several business targets to adapt the situation, in which credit growth was reset within 20% to meet the SBV’s requirement. The total outstanding loans at December 31, 2011 were VND 29,184 billion, increasing by 15% or equivalent to VND 3,860 billion, adapting the credit growth roadmap and putting the non production loans proportion to below 16% credit growth as required by the SBV. High interest rate creates difficulties to enterprises and interest rate cut also had significant impacts on profit of commercial banks. However, in response to the policies of the Government and the SBV, VPBank offered designed supportive packages with interest rate ranging from 17% to 19% which have proved effectiveness for agricultural, forestry, and aquatic producing and exporting companies. Together with ensuring reasonable growth, the Bank also paid special attention to credit quality, loan control and credit classification, provision for credit risks as required by law. At December 31, 2011, bad loan ratio was 1.82%, matching the target of under 2% and well below the average bad debt ratio of other banks.

Nguyen Thi Thu Hang

35  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

Figure 7: Outstanding loans to customers in VPBank from 2007 – 2011 (Source: VPBank’s annual report 2011) VPBank’s Return on Equity (ROE) was 16.36%, a decrease by 6.29% from 2010. Its Return on Assets (ROA) declined slightly to 1.09% as compared to 1.15% in 2010 due to sharp increase in total assets.

Figure 8: Some financial indicators in VPBank from 2007 – 2011 (Source: VPBank’s annual report 2011)

Nguyen Thi Thu Hang

36  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

3.5.3 Customer satisfaction VPBank has been awarded the title "Bank with the most satisfactory service quality" by Vietnam Economic Times in Ho Chi Minh City on November 4, 2012. Voting program for the service of Trust & Use has been launched annually by Vietnam Economic Times based on direct surveys and opinion polls of readers of various publications, namely: Consumer Advisory Magazine, The Vietnam Economic Times, etc. This year's voting program, held for the fourth time, is based on the aquisition of feedbacks from readers on three criteria: quality of products/ services; after-sales services, choice and future plans of consumers regarding purchases and use of services, consumer products. Being voted the best bank for satisfactory service quality has affirmed the advantages of VPBank's product and service quality, its position in customers' hearts, at the same time, a valuable source of customers' encouragement. VPBank, therefore, could make constant efforts in improving service quality, diversifying product ranges, expanding the service network, and further promoting the advantage of being a modern commercial bank in Vietnam.

3.5.4. Awards In 2011, the Bank earned many valuable prizes including: Excellent Brand Award in 2011; Global Payments Excellence Award given by Citibank and Bank of New York; Top 100 Reliable Services and Products; Top 500 Vietnam Largest Enterprises (VNR500); Top 500 Fastest Growth Enterprises (FAST500); Enterprise of Community, Products and Services for Community, Entrepreneur of Community. 3.6. The problems of Marketing activities in VPBank Taking use of many advantages both objective and subjective in the market, many commercial banks and joint – stock banks have made great progress over VPBank. The banks are really focused on customers, proactively designing modern products and services in accordance with customers’ demand and the development trend of the Nguyen Thi Thu Hang

37  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

world economy. Until now, VPBank has made certain achievements, however, the existing restrictions still need to be overcome:

3.6.1. PRODUCT No product brings VPBank’s typical "impression". Only recently are new banking products launched such as VP Super Account, Vietnam Airlines - VPBank Platinum MasterCard, Accumulative Savings, Household Business Loans, etc. The products of VPBank are not as various as other joint-stock commercial banks such as: Techcombank, Sacombank, ACB, Eximbank, VIB, etc. The products and services are quite traditional and not linked with modern technology. On the other hand, bank products are not named to distinguish with the same products of other banks, thus causing less attention and customer care. For example, Techcombank offers a wide range of savings products with impressive name such as: Boi Thu Savings, Phat Loc Savings, Tai Hien Savings Account, Tai Tam Savings Account, etc. With the same segment of customers, VPBank has no specific business strategy to create product differentiation (price, service time) from other banks.

3.6.2. PRICE The interest rates are not different between residents or organizations in order to stimulate deposit activities of each object.

Nguyen Thi Thu Hang

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ATCA – K12

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Banking  Academy  

Table 5: Interest applied for Phat Loc savings in Techcombank (Source: Techcombank’s website, 2013) As stated in two above tables, with the same product to individual customers, while Techcombank offers different interest rates based on the amount of deposit and geographic regions, VPBank doesn’t. This can limit the customers’ willing to deposit as they have to choose between VPBank and the other bank. 3.6.3. PLACE VPBank was establish for a quite long time, but compared to the state-owned commercial banks, the bank is limited in network operations as well as experience in the retail market, including individual customers. This can be clearly seen by the fact that VPBank is lack of service delivery channels of retail banking, few branches and transaction offices to better serve individuals customers, as well as the lack of experience about products and management models to retail banking.

Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

Region

 

Banking  Academy  

Branches & Trading Offices

ATMs

Agribank

3359

1702

VietinBank

1272

1217

BIDV

644

1295

Vietcombank

381

1700

ACB

325

366

Techcombank

307

1205

VPBank

205

291

Table 6: Number of ATMs and Branches &Trading Offices by 2011 (Source: From banks’ annual reports and Western Bank statistics) VP lacks a consistent policy for individual clients across the entire system, so the customer management and development of retail products are also dispersal. In VPBank, especially sub – branches, the credit department has not been divided into objects for individual customers and corporate clients separately. This will interfere the branch performance in marketing activities because an employee cannot simultaneously take charge of two customers with the highest efficiency. 3.6.4. PROMOTION Since its establishment, VPBank has carried out a lot of advertisement, sponsorship, promotions, etc. but brings few results. The programs simply introduced the bank to the public. VPBank has not taken full use of mass media and online marketing tools. Some banks successfully popularize their images on TV such as ACB, Maritime Bank, VIB, HSBC… The impressive clips with beautiful melody in accompanied with their core values impress and make the banks’ image become familiar with customers. Nguyen Thi Thu Hang

40  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

Although VPBank is aware of the importance of online marketing, they have not take advantages of other tools beside website yet, say, S.E.O (Search Engine Optimization), Support Online, Email Marketing, Social Media, Online PR, Promotion or Online Ad. 3.6.5. PEOPLE Staff does not meet the professional requirement in retail banking, the customer relationship management is not really closely and logical, so bad debts are still a serious problem. Furthermore, the bank staff has no capabilities of cross – selling or providing necessary advices to customers. Bank staff is young and enthusiastic, but lacks experience. VPBank does not have potential and talented staff to prepare for the bank’s expansion. All in all, in a year of difficulties and challenges from local and global economies, VPBank reaffirmed and demonstrated its strength in quantity and quality. With top class consultants on strategy, again, the bank confirmed its position among the leading banks in Vietnam with positive business results. However, the bank still faces many challenges stemming from both inside and outside. VPBank should promote their strengths to make use of opportunities as well as overcome their weaknesses and existing problems. After learning about the situation marketing activities towards individual customers at VP Bank, the study would recommend a number of measures to promote activities.

Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

CHAPTER 4. SUGGESTED SOLUTIONS TO IMPROVE BANK MARKETING IN VPBANK 4.1. Setting a dynamic and effective competition strategy Competition strategy needs to create the uniqueness of products and services. The uniqueness will bring the advantages of the distinction, which is a key factor to attract customers to the bank, but it must be practical or within the customer's perception. The difference here is not necessarily to be created throughout the whole process of providing products or services, but only involved in one related aspect. For example, VPBank can make its distinction through advertising, especially VPBank’s brand promotion. In fact, they have a newly strong brand. The new brand of VPBank with the motto "Take actions for your dreams" is built up from the four following personalities: professionalism, commitment, uniqueness and simplicity: PROFESSIONALISM: using our knowledge and experience, together with a professional, accurate and timely working style, we offer customers banking products and services that are advanced, reliable and suitable to their specific needs. COMMITMENT: we give out advice, guidance, and respond to customers' enquiries to help them clearly understand VPBank's products and services. UNIQUENESS: we always seek innovative ideas in order to create the uniqueness, thus providing high quality products and services with lots of benefits to our customers. SIMPLICITY: we focus on building our banking service systems with simple and convenient procedures, relying on advanced technology to serve our customers in a timely and effective fashion. The new logo is a stylized image of a lotus in blossom, the symbol of Vietnam, implying VPBank's desire of contributing to the sustainable, prosperous and perpetual development of Vietnam. The design of this logo indicates the image of hands holding a raising hope, implying the nonstop improvement, which is a solid and reliable basis for development and prosperity.

Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

The bright red color of the petals shows the enthusiasm, dedication to work, creativity, prosperity, and luck as well as responsibilities for the community from every VPBank's activity. The clear and simple font brings along a modern look and feeling; besides, it implies the distinctness in VPBank's activities. The smooth curves show the flexibility, commitment and simple procedures. The green color shows a fresh vitality with a meaning of bringing sustainable success to customers, as well as success and development of the bank itself. Especially, letter "k" at the end of the logo shaped by upward red petal expresses VPBank's determination to offer customers unique products/services with the best quality, the most modern, professional and reliable style; with a desire to make customers' dreams come true through our efforts. Together with the image of the lotus, the petal in letter "k" brings along a feeling of the consistence in sustainable development and orientation of the bank, creating the image of VPBank as a trustworthy partner and mutual development with customers.

However, competition strategy needs to clarify the importance of distinction in banking products from its competitors. If making a difference is not enough, it is important that distinctions bring the actual value to customers and are given the their appreciation. Such a competitive strategy will bring efficiency to VPBank’s performance. Simultaneously, the bank needs to build flexible competition strategy in each period to ensure that they always go ahead competitors. Therefore, banks should always strictly follow the market moves, analysis changes in demands of products and services by customers, especially individual ones who easily are affected by psychological factors. In the banking sector, products and services are vulnerable to be copied by competitors. Therefore, VPBank’s competition strategy should take this into account to bring about measures against the copyright threats from the competitors. Solving this problem also means that banks are gradually asserted its position in the market. 4.2. Developing product policies towards diversification and modernization In the context of Vietnam economy witnesses the slump in other investment areas such as gold market, real estate and securities market, banking seems to be a safe place, which is favored by individual clients. Moreover, the income per capita of Vietnamese Nguyen Thi Thu Hang

43  

ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

is gradually rising. VPBank should quickly launch new products to take advantage of the opportunities. This may be another form of savings accounts, loán or cards. However, the current market has a lot of products of well – known and experienced banks such as Connect 24 by Vietcombank, F@st Access and F@st Savings by Techcombank, etc. with the dominant characteristics and attractive forms of promotions. So this requires the further uniqueness, safety and distinction from VPBank’s products, which is better than available products by other banks. At the same time, the bank should enhance the development of new products based on modern technology such as personal accounts combined with value-added services such as payroll cards, statements, bill payment, investment products, asset management, centralized capital management, co – brand cards, etc.; accumulate savings, insurance savings, mortgage lending products, etc. This work requires the efforts of VPBank, especially marketing department of the bank. In the future, when the VPBank’s capital increases, ahead of over 1,000 billion VND, the bank has more conditions for diversification and specialization of products. The other joint – stock commercial banks like Techcombank, ACB, Habubank, etc. have applied modern technology in providing customer services. When the bank offers information technology, they can apply the basic addition products supporting for the core products, which help reduce the travel time of the customers such as getting account balance, transferring money, making bill payment, etc. through Internet Banking at any place with Internet connection. 4.3. Adjusting price strategy in line with market moves Prices of products and services are the main source of bank’s income. The price should ensure both to be competitive with other competitors and covers all costs of the bank. In such a competitive market, the current cost of the products and services between banks has no clear difference, competition on price (interest and fees) occurs fiercely. So, in addition to adjustments in accordance with market prices in order to attract more customers, VPBank should add a number of additional services supporting for the core products.

Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

4.4. Developing distribution channels For individual clients, VPBank must always pay attention to a system of diverse distribution channels, enabling customers to make transactions anytime, anywhere. Diversifying distribution channels is to harmoniously combine between the effective traditional channels and modern one using modern information technology. This also means diversifying customer choices. The highly developed technology more likely has allowed banks to communicate with their customers in more effective ways, resulting in a decrease in cost per transaction and transactions are conducted anywhere at any time. The reduction of transaction and operating costs, enhancing transactions and service efficiency for individual customers is one of the main reasons for accelerating the implementation of diversified distribution channels. And of course, the diversification of distribution channels will expand the VPBank's appeal to wider public areas. Bank may conduct diversified distribution channels by: - Strengthen sales activities of the sales team. - Develop specialized group serving customers in branches and transaction offices. - Expand the network of branches and transaction offices, especially in the city center, residential areas, etc. Branch will become an important factor in penetration strategies of products and services. For banks, the physical appearance in the every street brings customers the confidence and belief that their money is stored in a safe place. VPBank also must create a friendly and polite environment as well as always maximize needs of customers. It is recommended to expand customer care centers and Internet banking, as well as develop retail banking system: improve automated trading, Internet Banking, Phone Banking, etc. Using modern information technology in banks in Vietnam today is more and more popular. But the investment in information technology requires huge capital sources, so VPBank should have an appropriate strategy and right investment choice between modern or traditional distribution channels. With card products, banks can design plan to place ATMs and POS at amusement parks, supermarkets, recreational facilities and even the beauty centers, restaurants to

Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

attract more customers. By this way, VPBank will confirm its position and popularize its image. 4.5. Improving promote policy VPBank can focus on increasing marketing strategies to potential customers, frequently updating information about new promotion programs to customers, sending greeting cards if possible. By the time, they will become sympathetic to VPBank and it is a good time that they will transact with the bank and appeal more customers. Suitable promotion policies for depositors with large volume and customer who makes repayment for the loans on time will bring more benefits to the bank in the coming time. VPBank also should concentrate on further take use of online marketing tools, such as S.E.O (Search Engine Optimization), Support Online, Email Marketing, Social Media, Online PR, Promotion or Online Ad.

- S.E.O (Search Engine Optimization) SEO (stand for Search Engine Optimization) is a set of methods to bring the website to TOP 10 positions (first page) of the results pages of search engines. Currently, most of the sites selected Google.com to deploy SEO as nearly 90% of global internet users use Google and Google offers many tools for website owners to implement and measure SEO effectiveness. However, because SEO is also a new field to banks in Vietnam, there are currently no specialized departments to perform SEO, so banks often use Google Adwords service to replace SEO. To use the Google Adwords service, banks have to spend an expense to be displayed at the top of the search results, if not, it will disappear. So VPBank should be pioneer to deploy SEO, which is lower-cost than Google Adwords but generate effectiveness in the long run. On the other hand, when searching on google, customers are also easy to distinguish advertisement from the search results and normally customers will trust in the search results better than commercials. Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

- ONLINE SUPPORT: Online Support includes online chat and support via emails. Because many customers want to keep secret of his transactions from colleagues, relatives, even his wife or husband. Thus, customers often surf websites to find out information or personally go to trading offices. Online chat allows customers to make questions and freely learn about the bank's products and services. With this tool, counselors can directly marketing about their products and promotions quickly. But more importantly, this is the two-way marketing tool in which there are exchanging information, giving and taking feedbacks between clients and the counselors. In fact, the team to answer online customers’ questions is often combined with consultants at the customer support center (contact center). - EMAIL MARKETING: Email marketing is favored by many banks today as this helps them reach the right target customers. Banks can actively adjust the time to send and receive email as well as commercialize (integrated website link), vary in its style and content. Otherwise, email marketing saves at least 75% compared with other forms of advertising, allowing customer leave their feedbacks and correctly measure effectiveness. Email marketing should be sent once a week to make certain habits of receiving emails, often called the weekly newsletter (Newsletter). The emails which are indiscriminately sent will make customers uncomfortable, and these emails (spam emails) may cause adverse effects. The content of the emails is the most important issue needed careful research by the bank. Currently, most banks only focus on email marketing to promote a new products and services, but combine much more information about different products in one email. The bank can logically arranged information on promotions, the highlight utilities of products or add the bank’s news to promote its brand etc.

Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

- SOCIAL MEDIA The social network (social media) is now no longer so strange to Internet users and the applying of social networks in marketing is becoming increasingly popular. Banks can create accounts on social media and make friends with many targeted customers, or you can create Fan page and try to attract more customers to participate. Once the bank launches promotions program or wants to convey a certain message, they simply insert the contents on the wall (wall), that information will immediately appear in the targeted customer's home page. - PROMOTION The online event is also a very effective way for banks to promote the bank image. By joining as a partner or sponsor for the online event (online auctions, online fashion fairs etc.) or organize their own online events, banks are able to attract the attention of Internet users. 4.6. Developing and improving workforce performance Staff are the key factor in the implementation of marketing strategy. To meet the development needs of banking, human resources is one of the significant issues needed top concerns. VPBank should develop their workforce both in quality and quantity, that is, qualifications, experience and enthusiasm. Marketing is the new aspect of the commercial banks in Vietnam for the past few years, so those who are well – experienced in marketing, especially banking sector are not sufficient. Thus, VPBank need training potential officers to implement marketing activities. The joint-stock commercial banks as Techcombank, ACB, Sacombank ... all have marketing departments, VPBank need to quickly set up the marketing department in branches in order to meet customer needs at highest level. VPBank should raise training programs in order to help staff further understand new products. Besides, banks can use the reward policy towards employees who have high productivity as well as creative ideas and incentives, which is combination of benefits, responsibilities and contributions, with the purpose of further enhancing their sense of working attitudes.

Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

CONCLUSION Vietnam 's economy continues to face many challenges, significantly affecting to the banking and financial markets in general and VPBank in particular. In 2012 VPBank carried out the most powerful and smart moves in the construction of important foundation, creating momentum for the following period with ambitious growth. In the context of the current economy, marketing is an effective tool for banks to attract and maintain its customers base. Among business and management strategies, VPBank has specially focused on marketing programs, which helps to ensure its powerful development and sustainability in the future in effort to reach the goal of becoming one of the Top 5 Commercial Bank and Top 3 retail bank in Vietnam by 2017. After detailed research, I would like to offer some solutions to contribute to the development of the bank based on enhancing their strengths and improving their weaknesses. The solutions mainly follow the marketing mix tools concentrating on strategies in Products, Price, Place, Promotion and People. In conclusion, subject matter set out to solve is mentioned above. Due to the time constraints and the student’s limited reasoning level, it is inevitable that shortcomings still exist which needed to be completed by teachers, the bank’s managers and those interested in this topic.

Nguyen Thi Thu Hang

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ATCA – K12

Graduation  Thesis  

 

Banking  Academy  

REFERENCES  

Alka Shukla. (2008). A comparative study on Role of Marketing in Banking sector. Rugta College of Engineering and technology. (p.66-67). Vietnam Prosperity Joint Stock Bank. (2007-2011). Annual Report. Hanoi Banking Academy. (2004). Marketing in Banking sector. (p.45) Peter Geldart. (2005). Money for the bank: A banker’s guide to Marketing. Philip Kotler, Kevin. L. Keller. (2012). Marketing Management. Pearson. USA. Khilji Shahnaz. (2011). Service marketing in banks. Juhu College of Arts, Commerce Scienc. (p.20-22) Dr. R.K.Uppal. (2010). Marketing of Bank products – Emerging chalenges and new strategies. DAV College, Malout DAV College, Malout Ngo Minh Tien. (2011). SWOT analysis of VPBank. Hanoi Truong Giang. (2012). The emerging economic issues in 2012. Retrieved May, 2013, from http://www.songmoi.vn : http://songmoi.vn/kinh-te-kinh-doanh/nhung-van-dekinh-te-noi-com-2012 Vietnam Prosperity Joint Stock Bank. (2013). Vietnam Prosperity Joint Stock Bank. Retrieved May 2013, from http://www.vpb.com.vn: http://www.vpb.com.vn/document/lai-suat-va-bieu-phi/bieu-phi?language=en Techcombank. (2013). Techcombank. Retrieved May 2013, from https://www.techcombank.com.vn:https://www.techcombank.com.vn/Desktop.aspx/L STK/TK-phat-loc/Tiet_kiem_phat_loc/

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