Improving the integrated marketing communication activities at vietinbank

Improving the integrated marketing communication activities at VietinBank 2013 TABLE OF CONTENT Improving the integrated marketing communication activities at VietinBank 2013 Improving the integrated marketing communication activities at VietinBank 2013 LIST OF TABLE FIGURE, CHART Table 1.1 Marketing mix components Figure 1.2 Two parameters of communications Figure 1.3 The Five Ms of Advertising Table 1.4 Profiles of Major media types Figure 1.5 Formular for measuring sales impact of advertising Figure 1.6 AIDA model (Elias St Elmo Lewis, 1898) Figure 1.7 Response Hierarchy Model (Philip Kotler, Marketing Management Millenium Edition, 2000) Table 2.1 Business performance of VietinBank in 2008 – 2012 Chart 2.2 Cost of IMC Chart 2.3 Structure of IMC Cost Figure 2.4 Results of survey minds of customer to banks Figure 2.5 Results of survey minds of customer to brand of VietinBank Figure 2.6 Results of survey minds of customer to logo of VietinBank Chart 2.7 Results of Ebanking activities Chart 2.8 Results of Savings activities by customers Chart 2.9 Results of Savings activities by currency Chart 2.10 Results of Savings activities by maturity Chart 2.11 Structure of advertising cost in 2012 Chart 2.12 Brand Evaluation Index (BEI) of VietinBank compared competitors Chart 2.13 Brand Evaluation Index (BEI) of VietinBank compared competitors in Hanoi Chart 2.14 Brand Evaluation Index (BEI) of VietinBank compared competitors in Ho Chi Minh city Figure 2.15 Analyzing the lelel of customer belief to VietinBank brand (AC Nielsen months of 2013) Improving the integrated marketing communication activities at VietinBank 2013 RATIONALE Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) was established in 1988 after being separated from the State Bank of Vietnam Along with the development of the country, VietinBank constantly confirm the role of the largest commercial bank in Vietnam Vietinbank has built a modern internal management platform, in accordance with international standards, with national network spanning 01 exchanges, 150 branches, over 1000 transactions and independent accounting company VietinBank has the agency relationships with over 900 banks and financial institutions in more than 90 countries and territories over the world After 25 years of construction and development, to this scale of operation of Vietinbank rapid growth, becoming one of the best financial institutions in Vietnam In 2008, the Industrial and Commercial Bank of Vietnam to conduct privatization, conversion brand name from ICB to VietinBank It can be said is the most important milestone for with VietinBank communication activities For the first time, the concept of Marketing Communication appear and be put into the center of communication management proces Along with the addition of personnel and process innovation, communication activities of VietinBank shift from "one-way communication" to "interactive communication" Follow “Customer is Center” communication strategy, VietinBank optimizes the multi-channel communication system with the suitable cost structure To this, VietinBank currently applied model components of modern intergrated marketing communications including PR, Advertising, Direct Marketing, Direct Sales and Promotions From these improvements, marketing communication activities of VietinBank gained more successes in enhancing brand awareness (rate of customer’s awareness without support has increased from 8% in 2008 to 16% in 2011 - Report of Nielsen Vietnam 3/2012) Improving the integrated marketing communication activities at VietinBank 2013 and business results (average profit growth of 20% per year from 2008 to 2011 VietinBank Annual Report) Despite of that, current communication activities of VietinBank are faced many difficulties in the management, especially in four problems The first one is that despite of significant investment for marketing communication activities, the level of brand identity, the number of new customers and business performance after marketing communication programs did not achieve the expected results The second one is that there are no specific mechanisms and processes to manage marketing communications campaigns, leading to overlap communication channels and waste of marketing communication cost for products and services at the same time The third one is that some modern communication channels with low cost are not interested and invested properly make customers’ access ability to shrink And the last one is that the marketing communications function separation is not clear in the organizational structure as well as the uncontrolled level communication activities of the branch That makes the cost communication increased and media messages are not consistent as well as decreasing the effectiveness of every marketing communication campaign Those are the basis for proposing the research “Improving the integrated marketing communication activities at VietinBank” Research objectives - To assess and identify the current state of integrated marketing communication activities at VietinBank and level of their effects to the brand identity and business performance - To propose recommendations to improve the effectiveness of communication activities at VietinBank Improving the integrated marketing communication activities at VietinBank 2013 Research questions - How is the integrated marketing communication activities at VietinBank being executed in fact? What are the advantages and disadvantages of integrated communication activities at VietinBank? - How does the Advertising influence to the customers’ awareness to VietinBank brand and retailed banking products (private deposit, private credit and ebanking)? - How the Public Relations and Personal Selling influence to the customers’ interest and reliability to VietinBank brand? - How the Personal Selling, Direct marketing and Direct Sales influence to the customers’ purchase behavior with VietinBank brand and retailed banking products? - Why the integrated marketing communication activities at VietinBank not to increase the brand identity and sales performance for VietinBank brand and its services? - What should be done to improve the integrated marketing communication activities at VietinBank? Literature review - Previous research:  Al Ries, Laura Ries (2002) The Fall of Advertising & The Rise of PR, translated, printed, published by Saigon Times Group, Youth Publishing (2005) Study by Al Ries and Laura Ries focused on functions of advertising and PR - two important components of marketing communication for the branding, which clearly states: PR build “brand” and Advertising protects “brand” The study also confirms that Advertising is more and more expensive and unreliable while PR with cheaper cost provides much more reliable information to customers Since then, the study analyzes the effectiveness of each tool in the overall communication activities of the enterprise and the trend of communication activities in the future Improving the integrated marketing communication activities at VietinBank 2013 Thus, the study clearly shows how to build the trust of customers from the communication activities However, appliying this theory in Vietnam particularly (when “branding” definition is just taken seriously for a few years) and the developing countries in general, the study have not provided a solution to build integrated marketing communications directed to build awareness and interest of customer, and also not to mention of purchasing behavior of the customers This can make it difficult for developing communications programs for products and services  Luu The Long (2010), Research Marketing communications activities for the Tiger beer brand in the North of Vietnam In this study, the author analyzed the current status of the marketing communication activities in the enterprise (which emphasizes three major activities as advertising, sales promotion and public relations), which assess the effects of these activities to improve the brand identifying level of Tiger beer in Vietnam However, the study have not analyzed the relationship between the structure of communication components (here is the ratio of the budget) and the effectiveness of marketing communication activities (through market research data about the level of the awarenes, interest, desiration and action) At the same time, the author's research focused on the FMCG (fast moving consuming goods) sector, with high differentiate from the service sector, especially banking and financial services Chris Fill, Barbara Jamieson (2011) Marketing Communication, Edinburgh Business School The study’s authors analyzed the relationship between each communication activity to the level of effectiveness of the communication process, which applies 4Cs framework and model the level of effectiveness of each communication activities This help enterprise can evaluate the effectiveness of communication activities However, the applied research is mainly in the FMCG Improving the integrated marketing communication activities at VietinBank 2013 sector and not have specific solutions in the field of banking and financial services  The remaining questions and their interlocking logic: What theoretical background on communication activities at banking and finance?  How to manage the communication to pursuit marketing goals and busines goal? - Reprises the research questions in this context:  How is the integrated marketing communication activities at VietinBank being excuted in fact? What are the advantages and disadvantages of integrated communication activities at VietinBank?  How does the Advertising influence to the customers’ awareness to VietinBank brand and its services?  How does the Public Relations influence to the customers’ interest and reliable to VietinBank brand and its services?  How the Sales promotion, Direct marketing and Personal selling influence to the customers’ purchase behavior with VietinBank brand and its services?  Why the integrated marketing communication activities at VietinBank not to increase the brand identity and sales performance for VietinBank brand and its services?  What should be done to improve the integrated marketing communication activities at VietinBank? Improving the integrated marketing communication activities at VietinBank 2013 Research methodology 4.1 Research Process Theorical framework Theoretical background Requirement of integrated marketing communication activities Data, report of company Group Discussion Effectiveness of integrated marketing communication at VietinBank to customers Recommendation and Solution Shortcomings and Causes In-depth interview Current circumstances of integrated marketing communication at VietinBank Questionaire Survey Input data Output data 4.2 Data collection The data is collected from sources are secondary and primary data Secondary data is collected include:  Monthly, yearly reports of VietinBank and Marketing Department  Internal progress and marketing campaigns’s final reports  Regulation, circular…from the State related to this research Primary data is collected include:  In-depth interview: Improving the integrated marketing communication activities at VietinBank 2013 Interviewee Objective Information to be collected Manager / Deputy Manager of Departments of Head office Director/Deputy Director of Branches in Hanoi and HCM city Identify the role of integrated marketing communication, Demands of marketing communication - Do you care about the integrated marketing communication? - How you access about the role of integrated marketing communication in your business/work? - What should VietinBank to develop the integrated marketing communication in the future?  Group discussion:  Objective: Discuss to find out the current situation and solutions for integrated marketing communication activities at VietinBank  Number of groups: group with persons (who are in-charged of integrated marketing communicaition directly)  Process: create group, prepare content to implement, write the content of discussion  Questions in discussion: i What is the current integrated marketing communication now? ii What are the causes make the shortcomings of integrated marketing communication? iii What will you after knowing the reasons? iv In your personal point, how to improve the effectiveness of communication activities at VietinBank?  Data analyzed by Excel tool  Questionaires Survey:  Objective: Measure and assess the impact of integrated marketing communication activities to the level of awareness, favorite and reliability of the customers for VietinBank brand and its services  Object: Customers of VietinBank, include group: i New customer (just open VietinBank account or using VietinBank’s service at the first time) ii Loyal customer (using VietinBank’s service at least year) 10