THEORETICAL BACKGROUND ON INTEGRATED
Overview about Marketing
Marketing’s boarder importance extends to society as a whole Marketing has helped introduce and gain acceptance of new products that have eased or enriched people’s lives It can inspire enhancements in existing products as marketers innovate to improve their marketplace position Successful marketing builds demand for goods and services, which, in turn, creates jobs By contributing to the bottom line, successful marketing also allows firms to more fully engage in socially responsible activities.
Many organization or enterprises now have a Chief Marketing Officer (CMO), to put marketing on a more equal role with other C-level executive such as CFO or CIO However, making the right marketing decisions is not always easy Marketers must decide what features to design into a new product or service, what price to set, where to sell offerings, how much to spend on advertising, sales, internet marketing or mobile marketing Good marketers are always seeking new way to satisfy their customers and beat the competition. Marketing is meeting needs porifitability.
Marketing is everything a company does to acquire customers and maintain a relationship with them (1)
Marketing are the activities of a company associated with buying and selling a product or service It includes advertising, selling and delivering products to people People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure (2)
(1), (2): http://www.investopedia.com/terms/m/marketing.asp
According to a social definition, marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchang-ing products and services of value freely with others. Peter Drucker, a leading management theorist defines that: “The aim of marketing is to make selling superfluous The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself Ideally, marketing should result in a customer who is ready to buy.”
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (3)
Marketing is the management process through which goods and services move from concept to the customer It includes the coordination of four elements called the 4 P's of marketing: identification, selection and development of a product; determination of its price; selection of a distribution channel to reach the customer's place, and development and implementation of a promotional strategy (4 )
Production orientated Marketing: A firm focusing on a production orientation specializes in producing as much as possible of a given product or service Thus, this signifies a firm exploiting economies of scale until the minimum efficient scale is reached A production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes will not rapidly alter (similar to the sales orientation).
Product oriented Marketing: A firm employing a product orientation is chiefly concerned with the quality of its own product A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.
Selling oriented Marketing: A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such Consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes that would diminish demand.
Modern Marketing: The 'marketing orientation' is the most common orientation used in contemporary marketing It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes As an example, a firm would employ market research to gauge consumer desires, use R&D (research and development) to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.
Holistic Maketing: The holistic marketing concept looks at marketing as a complex activity and acknowledges that everything matters in marketing - and that a broad and integrated perspective is necessary in developing, designing and implementing marketing programs and activities The four components that characterize holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing.
Relationship marketing: Emphasis is placed on the whole relationship between suppliers and customers The aim is to provide the best possible customer service and build customer loyalty.
Business marketing: In this context, marketing takes place between businesses or organizations The product focus lies on industrial goods or capital goods rather than consumer products or end products Different forms of marketing activities, such as promotion, advertising and communication to the customer are used.
Societal marketing: Similar characteristics to marketing orientation but with the added proviso that there will be a curtailment of any harmful activities to society, in either product, production, or selling methods.
Branding: In this context, "branding" refers to the main company philosophy and marketing is considered to be an instrument of branding philosophy.
Integrated marketing communications and the role in Marketing
The first definition for integrated marketing communication (IMC) came from the American Association of Advertising Agencies (4A’s) in 1989, defining IMC as "an approach to achieving the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other” The 4A's definition of IMC recognizes the strategic roles of various communication disciplines (advertising, public relations, sales promotions, etc) to provide clarity, consistency, and increased impact when combined within a comprehensive communications plan. Basically, it is the application of consistent brand messaging across both traditional and non-traditional marketing channels.
The Journal of Integrated Marketing Communication from the Medill School of Journalism at Northwestern University refers to IMC as "a strategic marketing process specifically designed to ensure that all messaging and communication strategies are unified across all channels and are centered around the customer." IMC is used practically to allow one medium's weakness to be offset by another medium's strength, with elements synergized to support each other and create greater impact.
A more contemporary definition states, "True IMC is the development of marketing strategies and creative campaigns that weave together multiple marketing disciplines (paid advertising, public relations, promotion, owned assets, and social media) that are selected and then executed to suit the particular goals of the brand." Instead of simply utilizing various media to help tell a brand's overall story, with IMC the marketing leverages each communication channel's intrinsic strengths to achieve a greater impact together than each channel could achieve individually It requires the marketer to understand each medium's limitation, including the audience's ability/willingness to absorb messaging from that medium This understanding is integrated into a campaign's strategic plan from the very beginning of planning - so that the brand no longer simply speaks with consistency, but speaks with planned efficacy This concept inherently provides added benefits that include: a singular/synchronized brand voice and experience, cost efficiencies generated through creativity and production, and opportunities for added value and bonus.
1.2.1.2 Process model of integrated marketing communication
Most of conventional communication “process models” derive from Schramm’s original 1954 Linear Communication model The basic premise of these communication frameworks is that marketing messages are transmitted from a source to a receiver through some sort of media conduit.
Source or sender can be an individual or organization responsible for identifying a need as a market opportunity who wants to convey this message to the target audtience Effectiveness of commnunication will be a result of whether we feel the source is: credible, attractive and power.
Encoding is the representative element of the brand message or idea used to convey meaning: words, colours, pictures, signs, symbols or music
Media refers to all the communication channels which carry the message from sender to receiver and can effect the meaning of the brand to the target audience This maybe positive or negative.
Decoding is the process of interpreting messages and relies on correct encoding and the ability of the receiver to deconstruct transmitted meaning.
Feedback is crucial since dialogues are two-way and depend on reaction to intended communications This feeds back into the communication process and future messages may be changed and made more appropriate.
1.2.2 The role of marketing communications in Marketing
Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers – directly or indirectly - about the products and the brands they sell They present the voice of the company and its brand and help the firm establish a dialogue and build relationships with consumers Marketing communications show consumers how and why a product is used, by whom, where and when; let consumers know who makes the product and what the firm and brand stand for; and offer an incentive for trial or use The allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things They can contribute to brand equity – by establishing the brand in memory and creating a brand image – as well as strengthen customer loyalty, drive sales, and even effect share holder value.
1.2.3 Activities of integrated marketing communications
1.2.3.1 Definition of the communications mix.
According to Rowley (2001), the communication mix is “the combination of different channels or tools that are used to communicate a massage” The component parts of the communications mix form the structure of the rest of this section and will therefore be discussed separately
Direct Response and Interactive Advertising Direct mail
Telephone Broadcast media Print media Computer-related
Shell talkers Goldola aisle markets Shopping cartads Queue TV
In-store radio and TV
Trade Promotion Trade deals and buying allowances POS display allowances
Contest and dealer incentives Trade shows
Trade Promotion Trade deals and buying allowances POS display allowances
Contest and dealer incentives Trade shows
Arts Causal Marketing Entertainment Fair and festival Publicity / Product Placement
TV Radio Newspaper Magazines Online Viral Marketing
TV Radio Newspaper Magazines Online Viral Marketing
TV Radio Newspaper Magazines Online Viral Marketing
TV Radio Newspaper Magazines Online Viral Marketing
TV Radio Newspaper Magazines Online Viral Marketing
Table 1.1 Marketing mix components (Micael Dahlén, Fredrik Lange, Terry Smith (2010) Marketing Communication, A Narrative Approach)
The communications mix includes two parameters of personal and impersonal communications:
Non-personal communications: aimed at managing image and building the brand These have been traditionally one way, asymmetrcial communications,
Sales, service and customer contact management
Image management and brand building
Two-way communications with dialogue aimed at segments
One-way communications without dialogue aimed at segments Delayed feedback
Cross- boundary communication s transmitted indirectly through a medium like TV for advertising, an event for sponsorship, a pack for sales promotion, or a retailer for merchandising.
Personal communications: aimed at managing sales, service and customer contact These are mainly two way, symmetrical dialogues, transmitted directly through face-to-face sales contact, telemarketing, mail, email, and all the interactive electronic platforms of the internet, intranet and extranet.
Figure 1.2 Two parameters of communications (Micael Dahlén, Fredrik Lange, Terry Smith (2010) Marketing Communication, A Narrative
1.2.3.2 Process of an Integrated marketing communication program
Modern marketing calls for more than developing a good product, pricing it attrac-tively, and making it accessible Companies must also communicate with present and potential stakeholders as well as the general public For most companies, the ques-tion is not whether to communicate but rather what to say, to whom, and how often The marketing communications mix consists of advertising, sales promotion, public relations and publicity, personal selling, and direct marketing, although marketers know that communication goes beyond these five methods The product’s styling and price, the package’s shape and color, the salesperson’s manner and dress,the place’s decor—all communicate something to buyers In fact, every brand contact delivers an impression that can affect a customer’s view of the company Therefore, the entire marketing mix must be integrated to deliver a consistent message and strategic positioning. Today there is a new view of communications as an interactive dialogue between the company and its customers that takes place during the preselling, selling, consuming, and postconsuming stages Successful companies are asking not only “How can we reach our customers?” but, in a break from the past, are also asking “How can our customers reach us?” Increasingly, it is the newer technologies, such as the Internet, that have encouraged more firms to move from mass communication to more targeted communication and one-to-one dialogue with customers and other stakeholders There are eight steps to follow in developing an effective marketing communications program: (1) identify the target audience, (2) determine the communication objectives, (3) design the message, (4) select the communication channels, (5) establish the total communications budget, (6) decide on the communications mix, (7) measure the communications’ results, and (8) manage the integrated marketing communication process.
The first step is to identify a clear target audience: potential buyers of the company’s products, current users, deciders, or influencers; individuals, groups, particular publics, or the general public The target audience is a critical influence on the com-municator’s decisions about what to say, how to say it, when to say it, where to say it, and to whom to say it.
Knowing the target audience and its perceptions, the marketing communicator can now decide on the desired audience response, seeking a cognitive, affective,orbehav-ioralresponse That is, the marketer might want to put something into the consumer’s mind, change an attitude, or get the consumer to act All of these models assume that the buyer passes through a cognitive, affective, and behavioral stage, in that order This “learn-feel-do” sequence is appropriate when the audience has high involvement with a product category that is perceived to have high differentiation, as in purchasing an automobile An alternative sequence, “do-feel-learn,” is relevant when the audience has high involvement but perceives little or no dif-ferentiation within the product category, as in purchasing aluminum siding A third sequence, “learn-do-feel,” is relevant when the audience has low involvement and per-ceives little differentiation within the product category, as in purchasing salt By choos-ing the right sequence, the marketer can do a better job of planning communications.
Having defined the desired response, the communicator moves to developing an effective message Ideally, the message should gain attention, holdinterest, arousedesire, and elicit action In practice, few messages take the target audience all the way from awareness through purchase Formulating the message will require solving four problems: what to say (message content), how to say it logically (message structure), how to say it symbolically (message format), and who should say it (message source).
Message Content: In determining message content, management searches for an appeal, theme, idea, or unique selling proposition There are three types of appeals: Rational appeals, Emotional appeals and moral appeals Multinational companies wrestle with a number of challenges in developing message content for global campaigns First, they must decide whether the product is appropriate for a country Second, they must make sure the targeted market segment is both legal and customary Third, they must decide if the style of the ad is acceptable or customary in all of the countries And fourth, they must decide whether ads should be created at headquarters or locally
ANALYZING INTEGRATED MARKETING
Overview about VietinBank
VietinBank was established in 1988 after being separated from State Bank of Vietnam Being one of the four largest State-owned commercial banks of Vietnam, VietinBank’s total assets account for over 20 percent of the market share of the whole Vietnamese banking system VietinBank’s capital resources keep on increasing over the years and have been substantially rising since 1996 with the annual average growth of 20 percent, especially up 35 percent a year against that of last year VietinBank has developed an operations network comprising of 01 Transaction Centers, 150 branches, over 1000 transaction offices/ savings offices Has established correspondent relationship with 900 banks, financial institutions of 90 countries and territories all over the world Being diversified with 07 independent accounting subsidiaries: VietinBank Leasing Company, VietinBank Securities Company, VietinBank Asset Management Company, VietinBank Insurance Company, VietinBank Fund Management Company, VietinBank Gold and Jewellery Company, VietinBank Global Money Transfer Company and 03 non-profit making units: VietinBank Information Technology Center, VietinBank Card Center and VietinBank Training Center.
Being the founder of the following Financial Credit Institutions:
- Saigon Bank for Commerce and Industry
- Indovina Bank (the first joint-venture bank in Vietnam)
- Vietnam International Leasing Company – VILC (the first financial leasing company in Vietnam)
Being the official member of :
- Society for Worldwide Interbank Financial Telecommunications (SWIFT)
Being the first bank in Vietnam to apply modern technology and e- commerce in its banking operations.
Mission: To become the leading fnancial and banking corporation in
Vietnam that operates in diverse areas, as well as provides products and services that conform to international standards, aiming to improve the values of life.
Vision: To become one of the most modern and efective fnancial and banking group in and outside the country.
Core Values: Customer-oriented operations; Dynamic, innovative, professional, devoted, transparent, modern; Workers have the right to make their best efort and contribution – they have the right to receive rightful compensation – they have the right to pay homage to outstanding individuals and workers.
- Safe, efective, sustainable, and in compliance with international standards;
- United, ready to cooperate, share, and be socially responsible;
- Your prosperity is our success.
- Slogan: Improving the values of life.
For two consecutive years, 2012 and 2013, VietinBank is the onlyVietnamese enterprise in the top 2000 largest one in the world (based on the ranking of Forbes Magazine, United States of America,www.forbes.com/global2000) Throughout 25 years of construction and development, VietinBank has gotten many achievements in the financial banking of Vietnanm as well as bringing more and more benefit to shareholders, partners, employees, customers and the community In the 25 years journey of construction and development, VietinBank always takes care the lives of the workers, the interests of shareholders, customers and ensure the society’s substainble development.
In 2009, VietinBank officially listed on HOSE stock market with CTG stock The paradigm shift to forms of property ownership has helped VietinBank financial capacity, organizational change model, innovative bank management on all operations, meet international standards on the cornerstone of modern technology VietinBank was the first state commercial bank which selected the foreign strategic investor for quick financial integration with the region and the world The VietinBank partners are IFC (2011) and strategic investors Bank of Tokyo - Mitsubishi UFJ (2012), the largest bank in Japan and the third largest in the world belongs MUFG group VietinBank have become the Vietnamese bank which has the largest capital (capital reached 32,661 billion VND, equity of over 50,000 billion VND) and the biggest shareholder structure in Vietnam It is expected that by the end of 2013, the equity of VietinBank will reach 52,000 billion VND.
VietinBank’s network includes 01 exchanges center, 03 independent units,
07 subsidiaries, 148 branches with nearly 1,000 transaction offices distributed over the country VietinBank invests to 2 banks joint ventures and other organizations in the fields of banking, insurance, investment, finance and foreign VietinBank has established relationship with more than 1,000 banks and financial institutions in more than 90 countries in the worldwide In an effort to implement the strategy of expanding business networks abroad, VietinBank became the first bank of Vietnam presenting in Europe with 1 branch inFrankfurt, Germany; 1 branch in Berlin, Germany and 1 branch in the Vientiane,
Lao PDR VietinBank is actively to expand the network of foreign affiliates in other potential markets such as the US, UK, Poland, Czech, etc.
The VietinBank’s capital is used effectively, bad debt is under control, VietinBank is the healthiest financial situation in Vietnam Not only remarkable growth in size, VietinBank also record impressed result with the efficient business In fact, in the crisis period (from 2012 to 2013), when the economic get much of difficulties, many companies stopp production, dissolution, bankrupt, rise inventories, VietinBank reduces much of activities cost, enhanced governance capabilities to ensure the highest efficiency of the business.
After switching to the structure of Joint Stock Commercial Bank in 2009, VietinBank focuses on expanding and consolidating, reinforce the network to enhance the competitiveness and efficiency of business operations. Located in the strategic direction of the operation of commercial banks versatile, multi-disciplinary activities, multi-sector business, VietinBank expanded financial activities sector and non-financial through the establishment of 3 new companies which were owned by 100% capital by VietinBank, including: VietinBank Gold and Jewelry, VietinBank AMC, VietinBank Global money tranfer VietinBank aslo contributed 50% of capital to establish VietinBank Aviva Insurance with Aviva Insurance (UK)
Along with the selection of successful foreign strategic partner IFC, BTMU, in May 9/2011, VietinBank has opened a branch in Frankfurt, Germany, and become the first bank of Vietnam to open branches in Europe In February
2012, VietinBank opened the branch in Laos and in May 5/2012, VietinBank open the branch in Berlin, May 3/2013 to open representative office inMyanmar Activities of the overseas branches marked the important growthe in the implementation of strategies and regional integration with the world ofVietinBank.
VietinBank established Risk Management Division, with comprehensive management mechanisms operating from headquarters to the branch; the overall risk managing and monitoring activities arise from banking operations, including: credit risk, market risk, operational risk in accordance with the international risk management activities Initially, there was a separation between the Front office - Middle office - Back office.
Strengthen the comprehensive reorganization activities, organizational structure, personnel of the Board of Management, separation of audit functions and internal controlling funntions Internal Audit Division of the Board of Management and Inspection Division moved to Internal control sector of Risk Management Division With the new organizational structure, risk management ensure the standard of Basel II.
VietinBank centralized control stage evaluation and disbursement control, stage separation between customer relations, appraisal for sales and credit decisions, increase professionalism in sales, appraisal and set up blocks business and capital markets, as one of the two main business pillar It is also an important premise to promote investment bank founded in VietinBank; professional specialization, specialized risks and promote sales stage, created effective using of resources, increase operational efficiency, delivering high profits for banks VietinBank now set up blocks and retail banking business, management direction along with each customer segment from headquarters to branch It means that the officer can take care customers better, change thinking and modes of customer service, increase sales and improve business performance.
In 2013, VietinBank transform comprehensive model organization,governance by international rules established International Banking Division,Human Resources Division, Finance Division, Operations Division with the closely linked with the overall business strategy of the bank, creating a connection between the division, personnel, technologies, processes to create the best products and services towards customers The business sector comprehensive management vertically will support and strengthen the branches and transaction offices in sales The branches and subsidiaries is the first direct evidence of sales, with a range of products and best services to all bank customers.
Internal administration regulations of VietinBank officially launched with the principle of governance structure, operating efficiency, ensure transparency of operations and comprehensive control operation, together with the regulation the activities of the Risk Committee, ALCO Committee, Human Resources Committee, Policy Committee, Strategy Committee and organized system of regulation by the activities of the Board of Management and Executive Committee Regulations institutional development and network issued a series of Authorization Regulation, Regulation Title voted good leader, Labour Regulation rules, Culture and Enterprise Management system was clearly the hierarchical authority structure, roles, responsibilities and duties of the General Assembly of Shareholders, the Board of Management, Supervisory Board, and Executive Committee.
In 2012, VietinBank has 19,840 officers and 14,980 employees has the degree of doctors, masters, university certified by universities in Vietnam and abroad (rate of 80% officers) The average age of officers in VietinBank is 35,about 45.4% under 30, 41.4% from 30 to 50 years old, and only 3% of officers over 50 years old The senior managers was consolidated and powerful restructuring, change the selection from basic planning, planning for additional officers appointed to senior managemers The next phase, VietinBank comprehensive event focused on the human resource management by strategic human resource development which was oriented by strategic business development bank, and the whole structure of modern commercial banking;consistent with the core values of VietinBank by the goal of building cultural environment professional, modern and the officers is especially competitive advantage, create distinct values and brand positioning strength VietinBank global.
Table 2.1 Business performance of VietinBank in 2008 - 2012
Total loans and investment billion dong 467.879 429.932 349.353 227.958 181.689
Toal: legal equit billion dong 26.218 20.230 15.172 11.252 7.717
VietinBank has confirmed its position as the leading commercial bank in Vietnam, contributing to the stability and economic development of the country.
Integrated marketing communication activities at VietinBank
2.2.1 The role of integrated marketing commnunication activities in business strategy of VietinBank
Communications keeps the vital role in the system of each business activity Communication is the foundation for improving brand value to customers After 25 years of construction and development, communications activities of VietinBank had major transformation of processes, gradually improving the quality of communication and become "The best Bank on Media" (by Media Tenor International 2012).
At the time of its establishment, VietinBank leaders quickly realized the importance and responsibility of the communication activities Therefore, immediately after separation from the State Bank to establish Vietnam Bank for Industry and Trade, in 1993, the Press and Information Department (formerly of Communication and Information Department today) officially went into operation with the key task of keep the relationship between VietinBank and Media agency and customer.
In 2008, the Vietnam Bank for Industry and Trade conducting equitization, and switch brand name from ICB to VietinBank It was the most important milestone for the communication activities of VietinBank At the first time, the concept of Marketing Communications appeared to be applied in the organization of communication activities.
As mentioned above, in addition to standardize operating model of the organization, Communication and Information Department - the only department in the media of VietinBank - has set up a new process of communication, to ensure the information to provide an accurate and consistent message, image, brand personality to consumers.
2.2.2 Major integrated marketing communication activities at VietinBank and the influences to the brand identity and business performance
2.2.2.1 Major integrated marketing communication activities at VietinBank.
VietinBank oriented building a strong brand in the field of banking and finance in the country and over the world 3 basic goal in building brand VietinBank include:
- Affirming the client's perception of the bank brand "Efficient - Reliable - Modern"
- Synchronising the VietinBank brand to the business philosophy
"solidarity, cooperation, and sharing social responsibility"
- Elevate the brand to "Banking and financial group in Vietnam, versatiling operation, providing the products and services by international standards to enhance the value of life."
Based on the principle of consistent communication, VietinBank has built a structure of multi-media marketing communications, interactive with the client, capable of integrating simultaneously on different channels Thereby, the system creates, connects and positively influence the level of awareness, attention, love and motivation to act for the client.
In addition, awareness of the importance of the transmission of information to customers, the level of investment in marketing communication activitiesVietinBank continuous growth over the years, ensuring long-term stability in the communication channels.
Advertising PR Sales Promotion Others
Chart 2.3 Structure of IMC Cost
2.2.2.2 The influences of integrated marketing communication activities to the brand identity and business performance.
Based on market research reports independently conducted by Nielsen Vietnam in 2010, the level of awareness and assessment VietinBank brand on the market is shown in detail in the following:
In Retail Banking Section, VietinBank bank is ranked 5th in the minds of customers.
Figure 2.4 Results of survey minds of customer to banks (Nielsen Vietnam
- For those who recognize the precursor of VietinBank: VietinBank inherit the strengths of Industrial and Commercial Bank is safe, long reputed, giant, long life, strong in small and medium enterprises.
- For those who are not aware of precursor VietinBank: VietinBank as commercial banks equity, leveraged the strengths of the Bank's new, young, modern, easy procedure.
- 82% of respondents in the group is ready to consider using the services of VietinBank used with a slightly higher fee than bank fees cheapest.
- VietinBank successfully convey trust and quality of products for our customers.
Figure 2.5 Results of survey minds of customer to brand of VietinBank
100% of respondents could remember the full name of the bank, VietinBank logo This helps to increase the brand awareness of customers for VietinBank Of these, nearly 50% of the target customers appreciate the level of eye-catching logo VietinBank, just behind Vietcombank.
Most of the customer reviews on their logos are VietinBank feel confident in this bank logo Few can understand the meaning of money, but they are very impressed by the combination of blue and red Prefix "Viet-" this is the impression of the Vietnamese bank.
Figure 2.6 Results of survey minds of customer to logo of VietinBank
Keeping as a key role to broadcast products and services to customers, IMC has significantly contributed to improve the effectiveness of VietinBank business in many different fields.
Number of customers (unit: 10.000 persons) Number of transaction
Amount of transaction (unit: trillio VND)
In the retail sector, IMC has a positive contribution in increasing the market share of deposits and loans of VietinBank Specifically:
Chart 2.7 Results of Ebanking activities (2010 – 2012)
With the effective support of the IMC campaign, started in 2010, there has been active eBanking power The most important indicator is that the number of customers, the number of transaction and amount of transactions increase day by day Regarding the number of clients, for 3 years, has increased 370% from $ 360,000 to over 1.32 million customers The number of transactions increases more than 3 times, from 203,000 to 719,000 transactions per year The most impressive is that the amount of transaction increased continuously from 24.5 trillion to 152 trillion, more than 6 times This is the service which has fee revenues contributed much to the business performance of VietinBank.
Chart 2.8 Results of Savings activities by customers (unit: trillion VND)
Chart 2.9 Results of Savings activities by currency (unit: billion VN)
Chart 2.10 Results of Savings activities by maturity (unit: billion VN)
The frequently used tools, as well as media campaigns to promote IMC effective support for the funding of the Retail Division The data shows that savings activities, especially from resident savings, have increased sustainably In terms of maturity, the maturity deposits grew 200% from 2009 to 2012, from 105,915 billion VDN to 225,956 billion VND, while non-maturity deposits also grew 35% In terms of currency, VND deposits is growth reached 212%, while Foreign currency deposits rose by 8% It should be emphasized that, in the period 2009 to 2012 was a period that VietinBank conduct comprehensive
Non-maturityMaturity operational structure as well as the restructuring of IMC operations by expanding communication channels and enhance communication costs This has contributed to the creation of customer’s trust, make customer fell more assurrance when save money at VietinBank.
2.2.3.1 Roles of advertising at VietinBank
In the early years of the 21st century, VietinBank has much of attention to the advertising activityes In the period from 2000 - 2007, some television commercial spot (TVC) began to launch but rather simple After switching the brand name, advertising activities are investmed and developed more and become one of the most important pillars of Integrated Marketing Communications at VietinBank.
In addition to traditional advertising channels such as television, radio and advertising activities to date of VietinBank extended to more modern forms and more cost effective Based on the characteristics of each type of products and services, VietinBank target customer segments and channel select appropriate ads Therefore, although the cost for promotional activities are not large but the proportion of each customer reach of products and services are at a high level, while ensuring coverage to image all audiences goods Currently, the channel's ad includes full VietinBank 4 areas: Outdoor Advertising - online Advertising -
TV ads, radio - print advertising The interactive information support 4 simultaneous advertising of this field is based on a structure of reasonable advertising budget has promoted the professionalization VietinBank advertising, promotional create competitive than banks on the market.
Chart 2.11 Structure of advertising cost in 2012
Outdoor advertising Television and radio Printing advertising Online advertising Others
Assessment integrated marketing communications activities at VietinBank
2.3.1 The success of the IMC model in VietinBank
As mentioned above, along with the increasingly rapid growth and the growth of the brand in the market domestically and internationally, VietinBank has transformed the traditional media model to model IMC integrated with the the marketing communication tools in various media campaigns, based on the products and services, customer groups and target each time. With the rapid transformation and this time, VietinBank has achieved remarkable success, with positive changes in the process of brand awareness and increase customer business results for the period after equitization.
These successes include the following 2 main items:
- Developing successful brand identity systems VietinBank basically change customer perceptions of the brand ICB delete and move VietinBank remember the brand.
- Developing successful IMC system operating efficiently, saving costs and improving the efficiency of the transmission, management information to clients in a media campaign, thereby ensuring sales targets key products.
2.3.1.1 Establishing successfully the brand identity of VietinBank
Chart 2.12 Brand Evaluation Index of VietinBank compared competitors
Brand Evaluation Index (BEI) was calculated based on the customer’s feedback:
- Brand they would recommend to others.
- Willingness to pay high prices for their people.
BEI strong from 5 to 10, established from 3 to 5, developing from 1 to 3 and immature less than 1.
As shown in the BEI table, VietinBank is located as the growing brand, and in the group of powerful leading brands in banking in Vietnam The index has increased significantly from 2008 when only 1.3 VietinBank BEI and is No 7 in the number of banks in Vietnam BEI index shows increasing in levels of awareness, love and ready to use products and services of VietinBank Not only that, BEI index of leading banking group 3 had a distant, showed significant differences in the level of brand awareness in the consumer's mind between VietinBank with banks remaining opponents.
In terms of geographical area, the researchers report focuses on two areas of Hanoi and Ho Chi Minh city index BEI instructions as follows:
Chart 2.13 Brand Evaluation Index of VietinBank compared competitors in
Chart 2.14 Brand Evaluation Index of VietinBank compared competitors in Ho Chi Minh city
VietinBank BEI was high in Hanoi, about 3.1, just behind Vietcombank, while in Ho Chi Minh City, VietinBank BEI is about 1.9 This difference stems from two main reasons: Firstly, VietinBank Headquarters in Hanoi, the communication activities are deployed, centraled continuous and frequent managed, while in Ho Chi Minh City is still based in a media representation, resulting in the brand communication activities and not much less widespread. Secondly, the system of commercial banks such as ACB and EAB is headquartered in Ho Chi Minh City and they have much of experiences in business development and communications activities It led to the identification and familiarity in the use of customers to those banks’s service However, with the VietinBank BEI showed increasing more and more, VietinBank IMC activities gradually have a positive impact to customers in Ho Chi Minh City. Along with promoting research and communication channels here, VietinBank target to get in the Top 3 Vietnamese leading banks basing on BEI.
2.3.1.2 Processing effectively the IMC system.
Figure 2.15 Analyzing the lelel of customer belief to VietinBank brand (AC
Based on market reports first 6 months of 2013 (carried out independently by AC Nielsen with 200 divided by 2 client Hanoi and Ho Chi Minh City), the number of communication channels are used VietinBank in the IMC campaign, you can see TV / radio and newspapers to get the trust of customers with the highest levels of respectively 46.5% and 41.5% Meanwhile, the live call may be the lowest confidence rate is only 18.5% However, it is important that these indicators are already pretty good growth compared to the same period in 2012 and 2012 The level of trust for the media VietinBank have to change in a positive direction with the lowest score is 6% (compared to the same period in
2012) and 3-point% (compared with the year 2012) This reflects the positive results in the construction of VietinBank communication channels The trust of customers for increased communication channels also reflect the interest of the customers towards the brand and the products and services have a more positive changes.
In terms of geography, the area of Ho Chi Minh City, the trusted channel for newspapers / magazines and TV / radio while highest in Hanoi, the first place belongs to the world channel us / transmission VietinBank domain and website In terms of age, while older people (over 40) for the trust to participate in the seminar / event of the bank, the young (under 40) more trust in the form of advertising on the network and outdoor advertising In terms of income, the rich(above 15 million per month) trust in newspapers or magazines are poor (less than 3 million per month) to believe in the kind introduction and leaflets.
Based on the results of customer surveys carried out for this study, there are also profound differences between groups loyal customers and new customer groups to evaluate the activity of VietinBank IMC.
For a new group of customers, most customers know VietinBank through channels / radio (54.7%) and outdoor advertising channel (49.5%) The group also spent most of the trust information to third rank respectively first message channels / magazines, acquaintance introduced / word of mouth and television / radio Meanwhile, for customers to use products and services of at least 1 year VietinBank commonly known VietinBank through promotions (68%) and direct phone VietinBank employees (57% ), and for the trust for the bank channel's website, promotions and newspaper / magazine The difference in power of 2 brand awareness clientele comes from VietinBank approach in the transmission of information to customers With the ongoing implementation of the multi- channel media campaigns on social media channels such as popular TV / radio, and outdoor advertising push through system tools both traditional and popular , VietinBank allow access to more customers, attract new customers to use products and services In that communication with customers, VietinBank promote customer care services specific to maintain routine transactions and the favorite for the products and services of VietinBank.
Evaluation of the importance of the media to form trading decisions in VietinBank, up to 63% of customers rated the importance of direct care staff (for from 8-10 points) and 58 % said that the information on the media is important.
In particular, the group of business clients appreciate most direct care workers (about 76%), individual and group valued customer promotions and information in the media (both at 65 %) Survey results show that information on the media (usually done by the PR) and direct care staff (direct marketing) has a positive impact on customers than the channel advertising and promotion.
The majority of customers have asked if seen or heard the ads forVietinBank (about 92%), which primarily through advertising on the internet
(83%) and outdoor advertising (71% ), only 43% know through television ads and 38% through POSM Customers have said that the ads at normal levels of expression of love, but creating (and very proper ratio is like 52%) and trust (trust rate and is believed to be 61 %) This suggests forms of advertising VietinBank proved quite effective in providing information to customers, and have a positive impact on cognitive and emotional development for VietinBank customers.
Of the 65% of customers have ever read or heard about VietinBank articles on media, young people (25-40 years old) usually approached through news sites and radio stations, in the elderly (over 40 age) to access mainly through newspapers, magazines and television This reflects that the efficiency of the increasing cost of VietinBank with internet media forms to attract younger customers, with the potential use of financial services Also among the guests, the majority said they received positive information (85%), confirming the ability to control risk information and orientation information to customers VietinBank quite good, making it conditions for positive information to the public rather than negative information.
Regarding promotions, 87% of customers that participated in the program from attractive to very attractive The reason given is in turn strongly simple form (63%), attractive promotional gifts (51%), reward transparency, clarity (48%), flexibility in the way awards (31 %) and programs in accordance with the actual needs of the clients (22%).
Promoting media for promotions helped retail investors trading activities of investors have impressive growth results The final result shows that, in 2012, customer deposits of volume is 317 714 billion, an increase of 22% over 2011 and 63% compared with 2008 Contributing to this impressive growth is accelerating communications for funding programs such as "Eternal Faith",
"Happy Christmas - Gifts Rinh", "25 years Mounting" The communication concept information has been changed in a comprehensive manner in the direction of modernization and rejuvenation, friendlier, simpler and easier to understand, along with the expansion of the media system, especially exploit multiple channels new media such as outdoor LED, LCD supermarkets, Google adword, has allowed customers to access on a regular basis and continuously over for promotions by retail investors Therefore, the funding programs have results far beyond the original plan For example, the "Eternal Faith" mobilize 34,000 billion, while the plan is set 30,000 billion; program "Christmas Fun - Rinh Gift" reached 18,000 billion as planned is 15,000 billion; programs "25 Mounting" mobilize 43,000 billion while the plan is set 35,000 billion.
RECOMMENDATIONS TO IMPROVE THE
Solutions group for management of integrated marketing communication 80 1 Establishing the IMC strategy, puisuit ot the business strategy
The IMC activities is linked closely with the business strategy of every business Therefore, to enhance the effectiveness of the IMC operations, business strategy, VietinBank to define IMC as a mainstay, plays an essential role in enhancing brand value, build the foundation from which solid business.
3.1.1 Establishing the IMC strategy, puisuit ot the business strategy
The IMC strategy is very important As discussed in Chapter II, VietinBank currently lack a long-term strategic IMC, IMC makes resources are fragmented and budgets for IMC is not equally distributed in the channel, while difficult to assess operational effectiveness of the IMC Thus, the IMC strategy at the present time should be considered as a top priority IMC strategy should ensure the following:
Firstly, in the strategy of CTG stated, "To Become the leading financial and banking corporation in Vietnam Furniture operates in diverse areas, as well as provides products and services Furniture conform to international standards,Aiming to Improve the values of life." Therefore, the key messages of IMC should also work towards enhancing the value of life From there, determine the image of the bank associated with the lives of our customers, help customers have a stable life, development, and sustainable happiness The media selected should demonstrate friendly and long-term commitment to customers in order to create loyal group of customers, products and services used in the long-termVietinBank IMC strategy would also confirm the development of products and services a diverse way, through innovative media campaigns, resource allocation and costs equally for mainstream products and services (including including retail Division and corporate Banking Division).
Secondly, determine the specific objectives in the long term and short term. The goal of IMC is operating guideline for the IMC plan Based on the common goal, the IMC plans to build specific KPI targets, thereby determining the concept of communication, media, projected budget and effective means of measurement Do VietinBank is a big brand in the market, have a large impact on the entire financial system of banks in Vietnam, so the goal of IMC VietinBank stage 2 to make sure the problem: First is raising on the role and position of VietinBank brand in Vietnam, building awareness level in the international market, which has branches VietinBank The second is branding for specific groups of products as products VietinBank retail financial products business, card services and eBanking services.
Thirdly, the orientation of the IMC plan The IMC plan in VietinBank was built according to monthly and the products and services Therefore, this plan should be directed to ensure the presence of the IMC brand and message in each year, as well as ensure the proper implementation of the strategic roadmap IMC. The IMC plan should be based on the product plans of trading volume as investors Retail, Business Banking, Card Centre to ensure the allocation of resources in a coherent way and science, and create coherence and consistency of the entire IMC plan.
3.1.2 Restructuring the Marketing department to the specialization
Currently, parts of VietinBank Marketing under Information andCommunications Department, traditionally in the field of communications and media relations This is a disadvantage due to parts not guarantee Marketing specialization and not be considered a key part of the bank's activities.Therefore, the need for a separate marketing division into specific functional rooms with high specialization Marketing Division will perform the key functions, including market research and integrated media communication needs of the business sector, media planning and media management, media support and other IMC operations.
IMC Division also need to have specialized personnel in specialized fields such as advertising, PR, market research Besides being the creative groups and media design concept The combination of experts in each field are also important in ensuring the integrity of the image, the progress of communications and timely adjustments necessary in the circumstances.
IMC Marketing Division cPhong room will be the focal point, synthesize information and communication needs of the whole system, in balance with the internal resources and budget is expected to build a complete communications program, consistent with the general business strategy, and business strategy of each particular product The program also proposes the communication media details, in accordance with each product, target customer groups, the channels do not overlap, no overlap in the time implementation and ensure sustainability of brand image.
With the advantages of specialization, IMC Office will also undertake market research communications solutions seeks effective communication and modern being applied in Vietnam and the world Moreover, the reported market data (including self-study and research done independently of other units) will provide sufficient information for the development of marketing plans, as well as a channel evaluate the effectiveness of each of the intensive communications plan KPI targets for each program.
3.1.3 Training and innovating for the IMC executives
IMC system in the world more volatile and constantly shifting with the creation of new media as well as new applications for media communications.Thus, the organization of training and continuous updating information for staff undertake IMC is essential in the current period.
Firstly, VietinBank should clarify the responsibilities and duties of each IMC executives.
Secondly, establishing the standard procedure in planning and managing IMC campaigns.
Establishing and clarifying the procedure of IMC campaigns is very essential and important to get the efficiency management IMC activities It is suggested 3 steps as below:
- Step 1: Making a IMC campaigns adapt with the business goals or the products and services’s sales target
- Step 2: Ensuring the content of IMC campaigns such as communication goals, medias, evaluation method and budget to be suitable with the IMC goals in the whole year
- Step 3: Making decision on IMC campaigns to launch as soon as the products and services launch to the marketing.
Marketing executive must frequently reports to direct manager about the results of launched IMC campaigns, and do daily report about the respond signal from the customers These reports have to express clearly to give solutions if necessary.
Thirdly, Improving in Interaction between Marketing Executives.
Interaction between Marketing Executives is the only way to improve understanding ability It also creates the connection between Marketing Executive to share the communication skill and experiences in launching IMC campaigns And the more important thing is that IMC campaigns can be controlles tightly.
3.1.4 Establish an IMC management software
In order IMC management activities in a professional and efficient,VietinBank need to build and establish appropriate management software This software can be direct bank or building from outside, and integration with CRM system to create effective channel measurement with the actual media.
In fact, due to the IMC program is built largely independently by the expert team of professionals Marketing Marketing or different, leading to duplication in the implementation process communication channels With IMC management software, Marketing professionals can track timeline and a table media and specific details, thereby avoiding channels and avoid the time used by other programs.
Add to that, the IMC management software integrated with CRM software in terms of sales, Marketing enables professionals to identify the actual effect of each of the fees charged for the number of new customers, sales actual revenues and profits from each customer Since then evaluate the effectiveness of the IMC program and have adjusted best to the next program.
Solutions group for innovation the quality and excuting methods of every
3.2.1 Solution to improve advertising activity
As discussed in Chapter 2, the ads play an important role in the overall activities of the IMC at the cost VietinBank % Therefore, improving ad effectiveness will contribute greatly in enhancing the operational efficiency of the IMC.
To improve the efficiency of advertising, VietinBank need to focus on solving two problems: one is the quality of print advertising, as selected two advertising channels.
Due to the influence of many factors, including procedures and business perspective, most current publications still VietinBank ads by domestic partners perform Although these are experienced partners, however limited creativity has reduced the quality of VietinBank print advertising Furthermore, with the absence of a message throughout 1 year led to the publication of the advertisement is not uniform in terms of concept and production style, affecting the quality of publications advertising, thereby reducing their ability to attract attention and create a love for the customers To change this, it is important to
VietinBank thinking changed from advertising, updates trends in the manner set, messages and build new advertising style, especially in the banking sector. Accordingly, the philosophy of "Simple is the best" can be a good option when the advertisement's current VietinBank quite tangled, colorful, no striking differences as well as the lack of a breakthrough in image Another factor may improve the quality of print advertising is changing the way of thinking advertising content, using a single message, concise, consistent and customer focused.
VietinBank multichannel principles applied in its advertising activities. Most of the channels are selected after determining the product, target customer groups, the media's ability to channel and projected budget However, due to budget limitations, VietinBank to identify a number of channels in each focus IMC campaign to increase advertising effectiveness based on cost.
It is possible to define a specific number of channels as follows:
- For product groups to mobilize savings and loan products for individual clients: focus on television advertising in the primetime evening when the family has enough of winter, or the sheets newspapers have circulation of major network or newspaper VnExpress large amount of pageviews, AP
- For product groups for corporate clients: focus on radio advertising frames morning rush hour, or the pages related to network investment
- financial - business as cafef.vn, vneconomy.vn , may be advertised in newspapers or business magazines such as Vietnam economic Times, Saigon economic Times, Entrepreneur,
- For Internet Banking product groups: focus on promotional mobile banner advertising systems or network news sites have large amount of pageviews.
- For product groups of Cards: advertising focuses on the system of public transport such as buses, advertising and in-store POSM.
3.2.2 Solution to improve PR activity
PR is a strong degree of VietinBank with deep ties to media agencies as well as the ability to solve the crisis, timely information quickly and accurately. However, in the current period, the customer needs a multi-dimensional interaction more information now, VietinBank need to continue to improve PR activities to maintain their position in the IMC activities in Vietnam
With the philosophy of "safe, effective, sustainable and international standards", VietinBank always build yourself a sustainable development strategy tied to goals, business strategies through annual programs specific PR can, with a goal to define public objects clearly and effectively evaluated Some solutions are as follows:
Firstly, VietinBank to create unity, consensus of the cognitive system and implement PR activities PR activity derived from the first corporate culture and internal political awareness about the impact VietinBank and the importance of brand Thus, with the participation of tens of thousands of officers and employees with the circumstances, personality, age, different regions, but the overall goal is to build a brand VietinBank stronger, will create be the best starting point for PR activities to clients Besides, the addition of human resources with the PR department through the recruitment and selection of staff and professional qualities required professional skills are essential.
Secondly, really interested in the effectiveness of PR subjects This includes two main target groups are the media agencies and clients The PR of each program is not only associated with business development and investment, but also an awareness of the impact, the impact of the business community, to clients
With a philosophy of "the prosperity of our customers is the success ofVietinBank", besides maximize profits, VietinBank to perform one of the following issues:
- Set close connections with the media system, especially the staff reporter array intensive monitoring banks - financial, define roles, responsibilities and rights of the press in cooperation with VietinBank information In particular, the expansion of comprehensive relations with the leaders of the press is also seen as an advantage of VietinBank
- For customers, taking jobs VietinBank customer satisfaction as their targets In other words, VietinBank always guaranteed to provide the right product to meet demand, high quality, good value to use, safe, and will fight for the interests of consumers VietinBank also need to promote activities for social communities, implement its social responsibility by protecting the environment, reduce social evils, enhanced charitable activities, thereby contributing to reduce the burden severe social, narrowing the gap between the regions and between the rich and the poor.
3.2.3 Solution to improve sales promotion activity
In fact, sales promotion activity keep an important role in attracting customers regularly using the products and services of VietinBank after having the acknowledge and belief of VietinBank brand The sales promotion activities are attractive or not directly affect the frequency of customer’s service using. Thus, for sales promotion activities, VietinBank need to improve some solutions as below:
Firstly, it is necessary to change the form of gifts by increasing the number of prizes and gifts to customers, which can reduce the cost of each award or gift.
So a lot of opportunities for people to receive gifts and prizes, creating more excitement for our customers In fact, current sales promotion programsVietinBank largely based on lucky draw forms, as such, will only have a few clients receive the award Meanwhile, many depositors have more or larger number of transactions is not present, this can affect psychological customers feel uncomfortable The decrease in value of the prize may affect the reduced attractiveness of promotions, but increase the number of awards that will result in the most satisfied customers, thereby encouraging them to continue using the product VietinBank services in the next phase.
Secondly, the form and content of gift should also change frequently, distinctiveness compared to the program's competitors For example, according to the survey, in the period from April to July 2012, Vietcombank, BIDV, ACB and VietinBank have made deals with the content of deposits lucky draw for a special prize Diamonds Meanwhile, from September to December 2011, VIB, VietinBank, BIDV EAB and promotions are also deposits with the car especially value of 1 billion The similarity of the promotion does not create a competitive advantage for VietinBank As a result, parts of products designed to suit the program but there is a difference in awards presented.