A case study of direct marketing of Vpbank in Ho Chi Minh city

A CASE STUDY OF DIRECT MARKETING OF VPBANK IN HOCHIMINH CITY

A dissertation submitted in partial fulfillment of the requirements for the degree of BSc in Business Management

OFF CAMPUS DIVISION

Full Name of Student: Le Ngoc Bao Uyen Student Code: 2124786

Module Title: BAM6001 – Dissertation Module Tutor: Dr David Ratcliffe

Supervisor: Dr Asma Begum Date of submission: 1st May 2023

ABSTRACTS

Currently, all areas of the Vietnamese economy are growing steadily The banking industry cannot be avoided, and it is viewed as a rich potential for both domestic and foreign investment by many Marketing is basically required to tell clients about services Unfortunately, it is also because of this: customers grow overloaded, weary of marketing, stop interacting with businesses, and businesses cease gaining customers' attention or favorable comments This is the justification for the author's choice to focus his thesis on the direct marketing strategy used by VPBank This paper's objective is to describe, examine, and assess a few direct marketing initiatives that VPBank has previously implemented Additionally, this study offered some improved direct marketing initiatives to facilitate interaction Additionally, this study offered some improved direct marketing campaigns to engage clients more and receive quantifiable feedback The author also gained a

deeper grasp of direct marketing via this study, particularly in the banking sector

No other researcher's work is used in this without a citation, which is necessary

No other university or training center has ever received this thesis for a degree

Ho Chi Minh City, dated / /2023

DECLARED BY

Le Ngoc Bao Uyen

ACKNOWLEDGMENTS

With sincere thoughts, I would like to express my gratitude to the teachers at the Institute of International Training and Banking University of Ho Chi Minh City for imparting excellent and useful knowledge as well as for their support, extremely valuable guidance for me throughout my study

The study would want to give my supervisor, who devotedly accompanied me through every stage of this research process with focused direction as well as highly comprehensive and useful criticism, my sincere gratitude and appreciation Without the Supervisor's constant guidance and comments, this report would not have been able to complete the plan and deliver the present outcomes

I would especially want to thank the Board of Directors and Sales Department of the Vietnam Prosperity Bank Ho Chi Minh City Branch for their encouragement and assistance

Despite my best efforts, there will undoubtedly be some limitations given my limited expertise and experience The report was effective in part due to feedback from instructors and friends

1.3.The research questions: 3

1.4.The information of VPBank: 3

1.4.1.The overview of VPBank: 3

1.4.2.The overview activities of VPBank: 5

1.5.Overview of structure: 7

CHAPTER 2: LITERATURE REVIEW: 8

2.1.Description of direct marketing: 8

2.1.1 Concept of marketing: 8

2.1.2 Forms of direct marketing: 9

2.2 The worth of direct marketing at a commercial bank: 11

CHAPTER 3: RESEARCH METHODOLOGY: 14

3.1 Introduction: 14

3.2 Research philosophy: 15

4.3.2 The effectiveness of direct marketing of VPBank to customers: 38

4.3.3 Mechanism of telemarketing activities: 40

4.3.4 The features of direct marketing to customers: 41

4.4 Evaluate the direct marketing at VPBank by using the SWOT analysis module:43

5.2.1 Establish a high-response direct marketing strategy: 55

5.2.2 Enhance positive customer awareness: 56

5.2.3 Develop a direct marketing strategy to enhance competitiveness: 57

REFERENCE LIST 60

APPENDIX 1: 64

APPENDIX 2: 69

LISTS OF TABLES, FIGURES AND PICTURES:

Picture 4 Most popular online activities in Vietnam in 2021 31

Picture 6 Example of getting customers information from VPBank 33 Picture 7 Forecast the number of smartphone users in Vietnam

Table 2 Descriptive statistics of sample by gender 37

CHAPTER 1: INTRODUCTION:

1.1 The necessity of the study:

Due to the banking industry‟s intense competition, businesses have recently focused on developing marketing tactics that would enhance the way they provide services to clients Given the rising importance of the financial and banking sectors, promotion strategies are the main factor that affects marketing management success In the banking field joint commercial banks, place a high priority on marketing as a part of daily operations Therefore, the effectiveness and quality of a modern commercial bank‟s marketing strategies have a significant role in whether the bank succeeds or fails Based on this reason, the author decided to research direct marketing for joint commercial banks in order to deeply understand the efficiency of direct communication in banking

In order to launch a successful marketing campaign in a very competitive market segment, marketers need to choose an approach that can help banks earn more profit First of all, the author has to clarify two approaches used to connect with customers: mass marketing and direct marketing (Varghese Abraham and Jerin Joseph, 2019) Mass marketing is defined as the way that using the media channels like television, and website… to introduce a product to customers (Lilian Sing‟oei and Jiayang Wang, 2013) On the contrary, direct marketing is concentrated on creating a direct relationship with customers Direct marketing has been an area of marketing that has gained a lot of attention from marketing scholars over the last few years (Varghese Abraham and Jerin Joseph, 2019) emphasis that the extremely important tactic for a bank looking to enhance and maintain a solid client relationship is direct marketing Moreover, the procedure of

establishment direct contact with users has been improved due to the innovation of technology such as 4.0 technology (Alanen and Aleksi, 2016) In addition, direct marketing alters the nature of marketing and it towards to reach a target audience with their information so that bank can easily introduce the new product or service to them Apart from this goal, direct marketing is the method by that marketers can find more potential customers with the previous lists When marketing staff has the information of customers by using direct marketing, they can carefully take care of their clients such as: giving the products that are appropriate to their demands, budget, and gender… Besides that, marketers enhance campaign responses and increase the return on their spending by targeting particular clients with customized communications and promotional campaigns

As a branch of a joint commercial bank operating in Ho Chi Minh City, its main tasks include trading in banking and financial services and finding potential customers in this area Maximizing profit with the large resource of clients is one of the primary responsibilities of the Ho Chi Minh City banking sector in general and VPBank – Ho Chi Minh branch in particular Consequently, the main objective of this study is to find out the way that VPBank‟s direct marketing campaign works and evaluate this campaign based on the SWOT model

The implementation and successful completion of direct marketing have significant implications for customer retention and expansion, market share growth, and really good sales support at Vietnam Prosperity Joint Stock Commercial Bank - VPBank - Ho Chi Minh Branch, developing new customers and supporting customer management, and enriching customer databases That is

also the reason the author decided to write about "A case study of direct marketing of VPBank in Ho Chi Minh City"

1.3 The research questions:

In order to achieve the above goal, the content of the thesis must address the following research questions:

- What are the current direct marketing campaigns of VPBank?

- How effective are VPBank‟s current direct marketing campaigns in Ho Chi Minh City?

- What are the Strengths and Weaknesses of VPBank‟s direct marketing strategies?

- What are the Opportunities and Threats in the banking industry that VPBank should consider when implementing direct marketing?

- What new direct marketing strategies can VPBank adopt to remain competitive in the banking industry?

1.4 The information of VPBank: 1.4.1 The overview of VPBank:

Vietnam Prosperity Commercial Joint Stock Bank – Trading name: Viet Nam Commercial Joint Stock Bank for Private Enterprises – Abbreviated name:

VPBank Formerly known as Joint Stock Commercial Bank for Non-State Enterprises of Vietnam, it was established on 12/08/1993 under the operating license No 0042/NH-GP of the Governor of the State Bank of Vietnam and license No 1535/QD-UB issued by the People's Committee of Hanoi on 04/09/1993 The bank officially went into operation on September 10, 1993

 Head Office: VPBank Tower, No 89 Lang Ha, Lang Ha Ward, Dong Da District, Hanoi City

 Phone: 04.39288869  Fax: 04.39288867

SMEs" in Vietnam by The Asian Banker magazine in 2019 and recognized as the best foreign bond issuer in Asia in 2020 VPBank's stable financial potential and strong track record of growth and profitability make it a reliable choice for those concerned about their money

1.4.2 The overview activities of VPBank:

 Fields: Finance - Banking; VPBank operates according to the regulations of the State Bank of Vietnam such as: Capital mobilization; Credit services; Deal

 For individual customers: open credit card, card services, borrow, thrifty, current account, VPBank NEO, insurance, personal services, VPBank Loyalty, priority customers (for VPBank Diamond customers)

 For business households: unsecured loans, mortgages, insurance, and card services

 For SMEs: account services, corporate loans, card services, payment solutions, trade finance, deposit products, online overdraft, online disbursement, and open EKYC (Electronic know your customer) account

 For Les: guarantee, credit products, import-export services and financing, account services, financial products, online banking, and email transactions

1.4.3 The business results of VPBank in 2021:

( Unit: billion VND )

Quota Implementing in 2021

Planning in 2021

% complete compared to the 2021 plan

% growth compared to 2020

1 Total assets

2 Customer deposits and valuable papers

3 Credit balance

4 Individual bank non-performing loan ratio (According to circular 11)

5 Profit before tax

VPBank has provided preferential credit packages to support businesses and customers, making it one of the top 50 most efficient companies in Vietnam for five consecutive years The bank has a large equity and serves over 20 million customers in all segments, with total assets expected to reach VND 547,409 billion by the end of 2021 In 2022, VPBank repositioned its brand and set a new mission of "For a prosperous Vietnam" after nearly 30 years of establishment and development

CHAPTER 2: LITERATURE REVIEW: 2.1 Description of direct marketing: 2.1.1 Concept of marketing:

Nowadays, most businesses like to have an open line of communication with their clients in order to fully comprehend their needs and cater a particular product to them Direct marketing is a type of interactive marketing that involves using one or more promotional tools to affect consumers' feelings and behavior (Kotler and Armstrong, 2012) Customers who choose from the database to be targeted for a particular campaign are provided with several sorts of information, including demographic data and details on the customer's personal attributes, such as gender, age, and purchase history Researchers have found that targeting specific groups of customers based on their demographics, behaviors, and preferences can significantly improve the effectiveness of direct marketing campaigns For example, a study by (Berger and Nasr, 1998) found that targeting high-value customers based on their past purchase behavior led to a 20% increase in response rates compared to a non-targeted campaign Similarly, a study by (Kotler and Armstrong, 2010)found that targeting customers who were most likely to respond to a direct mail campaign based on their age, income, and interests increased response rates by 30% With the increasing availability of data on customer behavior and preferences, businesses can use sophisticated analytics tools to target the right audience with personalized messages more effectively A study by Alwi et al (2016)found that data analytics can be used to optimize the timing and content of direct marketing messages, leading to improved response

rates and customer satisfaction Besides that, direct marketing is a direct communication to a customer that is established to create feedback in the form of a direct request for more information to buy specific goods or services

However, some researchers have also highlighted the potential negative effects of direct marketing, such as consumer privacy concerns and the risk of over-saturation A study by (Peppers and Rogers, 1999)found that customers were more likely to opt-out of direct marketing campaigns if they felt that their privacy was being invaded, or if they received too many irrelevant or annoying messages As I mentioned before, consumer privacy concerns can be a major issue, and businesses must be careful to obtain customer consent and avoid using data in ways that may be perceived as invasive A study by Kim and Lee (2017) found that consumers are more likely to accept direct marketing messages if they perceive the messages as valuable and relevant to their needs and interests

2.1.2 Forms of direct marketing:

According to Chris Fill (2011), direct marketing is illustrated to represent the promotion of “through the line” communications For example, “through the line” interactions are represented by the use of direct email, telemarketing, door to door selling On the contrary, some researchers emphasize the form of direct marketing does not just include the three forms above, it includes more than that: such as SMS marketing, social media, … In addition to the theoretical perspective on the forms of direct marketing, it is important to consider empirical research findings For example, a study by Nguyen and Nguyen (2018) found that SMS marketing was the most effective direct marketing channel for banks in Vietnam, followed by email and telemarketing However, social media marketing was found to be less

effective for banks in Vietnam compared to SMS marketing, email, and telemarketing This suggests that banks in Vietnam should prioritize SMS marketing as a direct marketing channel, but also consider using email and telemarketing to reach customers who prefer those channels (Nguyen and Nguyen, 2018)

Based on the theoretical areas of (Kotler and Armstrong, 2012), the author established this theoretical framework to facilitate the implementation of research

Figure 1: The form of direct marketing

In this study, the author focuses on understanding the worth of direct marketing in terms of banking Moreover, the author looked for more information from some previous researchers Direct marketing is used to maintain a direct relationship with their customers and especially it is adopted for financial services:

Direct marketing

Face to face selling Direct email Tele- marketing

Social media Catalog marketing Direct-response

television marketing

Kiosk marketing New digital

marketing

banks and insurance (Sadaf Hossein Javaheri, 2007) Mbugua and Gitau (2021) agree to point out to same conclusion findings They confirm that most banks usually use direct marketing as the main way for advertising and maintain brand awareness Regarding George E Belch and Michael A Belch (2003), direct marketing goes beyond direct email and the techniques of direct marketing

2.2 The worth of direct marketing at a commercial bank:

Direct marketing has been widely adopted by commercial banks as a strategy to attract and retain customers However, the effectiveness of direct marketing may vary depending on the context and target audience Empirical research has shown that different forms of direct marketing, such as SMS, email, telemarketing, and social media, may have different levels of effectiveness for banks in different countries (Nguyen and Nguyen, 2018) For instance, SMS marketing was found to be the most effective direct marketing channel for banks in Vietnam, followed by email and telemarketing, while social media marketing was found to be less effective (Nguyen and Nguyen, 2018)

Direct marketing can provide banks in Vietnam with a competitive advantage by allowing them to target specific customer segments with personalized offers and messages This can lead to increased customer satisfaction and loyalty, as well as higher response rates and conversion (Trinh and Nguyen, 2017) However, direct marketing is not without its difficulties Recent research has shown that mobile channels, such as mobile banking apps and SMS marketing, can be an effective way for banks to reach customers with targeted messages and offers Banks can use mobile channels to deliver personalized offers based on customers'

transaction history and behavior, and to provide real-time alerts and notifications to customers about their accounts (Kshetri and Vo, 2020) However, to succeed in mobile marketing, banks need to focus on providing value to the customer and developing targeted campaigns that are tailored to the individual needs and preferences of each customer (Karjaluoto, H and Pento, 2015)

Despite the potential benefits of direct marketing, there are also potential negative effects that must be considered Customer privacy concerns and over-saturation of direct marketing messages could lead to customer annoyance and

opt-out (Vuong et al., 2018) Therefore, banks need to carefully manage their direct

marketing campaigns to avoid over-saturation and respect customer privacy concerns (Tran and Nguyen, 2020) Furthermore, personalized direct marketing campaigns may be more effective than non-personalized campaigns in improving customer loyalty and retention for banks in Vietnam Direct marketing can be an effective way to reach customers in Vietnam, but that it requires a customer-centric approach and a focus on providing value to the customer (Nguyen Hong Son and Nguyen Thi Hoa, 2016) Only direct marketing demonstrates consideration, care, and personalization of business connections, resulting in favorable consumer perceptions for organizations Direct marketing maximizes the interactive connection between the bank and the client, it is simple for companies to understand what those demands are Huan and Ngoc (2019) state that direct marketing can be an effective way to build and maintain customer relationships in the Vietnamese banking industry, but that it requires a deep understanding of

customer needs and preferences, and a focus on providing personalized offers and messages

In addition to these factors, the adoption and effectiveness of direct marketing in the banking industry may be influenced by the data analytics capabilities of the banks Recent research has shown that data analytics capability can have a positive impact on firm performance in an emerging market like Vietnam(Alwi, Kitchen and Choudhury, 2016) Banks with better data analytics capability may be better equipped to target their direct marketing campaigns to the right customers and improve the effectiveness of their campaigns While direct marketing is often touted as an effective strategy for commercial banks, there is a need for further research to explore the optimal level of personalization and the most effective direct marketing channels for different customer segments in the banking industry in Vietnam For example, a recent study by (Mbugua and Gitau, 2021) examined the marketing strategies adopted by Equity Bank Limited in Kenya, but further research is needed to explore the effectiveness of these strategies in other countries

In summary, direct marketing can be an effective strategy for commercial banks to attract and retain customers, but its effectiveness may vary depending on the context and target audience Banks need to carefully manage their direct marketing campaigns to avoid over-saturation and respect customer privacy concerns

CHAPTER 3: RESEARCH METHODOLOGY:

3.1 Introduction:

The contents of Chapter 2 are some of the research-related topics, such as theories, influencing factors, and related studies conducted by (Varghese Abraham and Jerin Joseph, 2019), (Alanen and Aleksi, 2016), (Hany A.Elsalamony, 2014), (Chris Fill, 2011), (Alexander Hiam, 2014) and some researchers In this chapter, research methods will be presented and selected to clarify the research status and the belief of the researcher is also an important factor influencing research methodology

Accordingly, the focus of this chapter is on the benefits of interesting concepts and research methodology This research will use the research framework designed by (Saunders, Lewis, and Thornhill, 2009) to ensure that the results are more valid The methods will be shown in the figure below and some of these methods will be used in this study In the study of business and management, every type of research methodology is significant Depending on the kind of research questions that can be chosen and used to guide the use of various approaches, each method has a unique set of benefits and drawbacks To choose the best research approach, it is crucial that we have a thorough understanding of each one, including how it operates and it advantages

As a result, this chapter highlights the benefits of effective design and research methodology The study is gradually initiated with internal-to-external research layers to answer the research questions (Mark Saunders, Philip Lewis and Adrian Thornhill, 2015)

Picture 2: The research onion

(Source: Saunder et al, 2016)

3.2 Research philosophy:

According to (Mark Saunders, Philip Lewis and Adrian Thornhill, 2019), the phrase “research philosophy” describes a set of assumptions and attitudes toward the growth of knowledge Therefore, the research philosophy is essential to the consolidation of the research‟s tactics, techniques, and presumptions The choice of research philosophy is a crucial aspect of any research project, as it shapes the research design, methodology, and analysis In this study, interpretivism and realism research philosophies have been selected to provide a comprehensive understanding of VPBank‟s direct marketing campaigns in Ho Chi Minh City

3.2.1 Interpretivism:

The finance industry is extremely complicated; therefore, the awareness and complexity of understanding will eventually decline if the author uses the positivist approach (Mark Saunders, Philip Lewis and Adrian Thornhill, 2015) believed that interpretivism is an essential method that helps them comprehend the role that individuals play as social actors Besides that, interpretivism has developed as a subjectivist critique of positivism by the above researchers Interpretivism is a research philosophy that emphasizes subjective experiences, perspectives, and meanings This philosophy aligns with the aim of gaining a deeper understanding of how consumers interpret marketing messages and make decisions about whether to respond to them Interpretivism highlights the importance of the researcher's role in understanding the social world and the need for reflexivity in research(Bryman, 2016) The author claimed that interpretivism methodologies in real society are established by human actors According to interpretivism, it is critical for researchers need to define their objectives and intentions regarding the research and comprehend how people differ in order for us to efficiently play the role of social actors (Mark Saunders, Philip Lewis and Adrian Thornhill, 2012) Empirical research has shown that interpretivism is a valuable approach to gaining a deeper understanding of consumer behavior and preferences in direct marketing campaigns For instance, a study by (Vrontis and Thrassou, 2007)state that interpretive analysis can help identify consumer values, beliefs, and attitudes towards banking services and products, which can inform the design of more effective marketing campaigns In the context of direct marketing, interpretivism can help marketers gain a deeper understanding of how consumers interpret

marketing messages and make decisions about whether to respond to them This understanding can be used to design more effective marketing campaigns that resonate with consumers

However, one limitation of interpretivism is its potential for researcher bias and subjectivity, which may impact the validity and reliability of research findings To mitigate this limitation, the researcher should acknowledge their positionality, biases, and assumptions and use multiple sources of data and triangulation to enhance the credibility of research findings (Bryman, 2016)

3.2.2 Realism:

Realism is one of five philosophies of epistemological viewpoints that researchers use for research related to scientific inquiry Realism is a research philosophy that emphasizes objective reality and the underlying causes and factors that contribute to the success or failure of direct marketing campaigns This philosophy aligns with the aim of analyzing marketing campaigns' effectiveness and identifying best practices for reaching and engaging customers Realism highlights the importance of evidence-based research and the use of quantitative and qualitative methods to collect and analyze data (Bryman, 2016) Empirical research has shown that realism is a valuable approach to analyzing the effectiveness of marketing campaigns and identifying best practices for reaching and engaging customers For example, a study by (Nguyen and Nguyen, 2019)state that realist research methodology can help identify the key factors that influence customer satisfaction with direct marketing campaigns in the banking sector in Vietnam

In this case study of VPBank's direct marketing campaigns in Ho Chi Minh City, a mixed-methods approach will be used to evaluate the effectiveness of the campaigns The study will combine quantitative data analysis of customer satisfaction ratio with qualitative data analysis of customer feedback and perceptions of the campaigns This mixed-methods approach will enable the researcher to identify both objective and subjective factors that affect the effectiveness of VPBank's direct marketing campaigns in Ho Chi Minh City

However, a limitation of realism is its potential to overcome complex social phenomena and ignore the subjective experiences and views of individuals To solve this limit, the researcher should admit the limitations of objective research and consider the role of the social, cultural and powerful context in shaping research results (Bryman, 2016) In short, the selection of real research philosophy can provide an objective understanding of the effectiveness of VPBank's direct marketing campaigns in Ho Chi Minh City However, it is essential to recognize the limitations and potential deviations of realism and use an experimental approach, important to enhance the validity and reliability of the research results rescue

3.3 Research approach:

The claim that qualitative data analysis is difficult, time-consuming, and complex with limited conceptual awareness is made frequently A lack of clear instructions on how to analyze qualitative data using particular approaches can make the process unpleasant According to previous researchers, there are two main types of research approaches, which are often used in searching, the deductive approach and the inductive approach Using deductive and inductive

methods, this section systematically explains the data analysis process Due to the nature of this study, which is considered a study that uses a qualitative approach The author implements the survey or select data and plus uses the company's available information This is a reason for the author to make a decision to choose the deductive approach as the research approach of this study Azungah (2018) states that the term “approaches that largely use intensive readings of raw data to derive concepts and themes” is used to describe inductive analysis Besides that, in contrast to the inductive approach, which aids in the development of new ideas and generalizations, the deductive approach examines the veracity of assumptions or theories under consideration

Deductive is defined as a research strategy built on natural science that has undergone extensive testing to offer the fundamental justifications for research challenges (Mark Saunders, Philip Lewis and Adrian Thornhill, 2019) Gill and Johnson (2002) confirm that the deductive approach plays a significant role in clarifying the causal relationships between variables in the research Mark Saunders, Philip Lewis and Adrian Thornhill (2019) state that deductive is the predominant study methodology in natural sciences It entails the creation of a theory that is then put to the test using a number of assertions According to Mark Saunders, Philip Lewis and Adrian Thornhill (2007), deductive can be used not only in qualitative data but also in quantitative data Generally, studies using a deductive approach following five stages:

Picture 3: The process of deductive

 First and fore more, the author has to make assumptions based on theory  Secondly, researchers have to formulate in operationalizing and putting forward links to between particular variables

 Thirdly, the author has to test the hypothesis while putting applicable techniques to use

 Fourthly, evaluating the result and either supporting or disproving the idea  Finally, comparing the study findings with those from the literature review is crucial when analyzing test results when a hypothesis is not supported or changing the way

Consequently, the deductive strategy to be employed suggests that the thesis will consider the concepts and use them as the framework The results of the research, as well as the operational effectiveness and direct marketing performance of the VPBank branch, are used to support and serve as the basis for recommendations aimed at enhancing the marketing strategy

3.4 Research strategy:

The research strategy for this study is descriptive, as it aims to describe and analyze the effectiveness of VPBank's direct marketing campaigns in Ho Chi Minh

City The study uses a mixed-methods approach, which involves using multiple methods of data collection and analysis, such as surveys and personal observation

The survey questionnaire is created in two steps The first step involves conducting preliminary interviews with a variety of consumers and bankers to decide on the survey's subject matter The interviews help to identify key factors that affect the effectiveness of VPBank's direct marketing campaigns, and the questionnaire is designed based on these factors and the study's goal of maintaining uniformity The questionnaire is sent to the respondents with a link to access it, and they are instructed to complete it on their own time

The data collected from the survey questionnaire and interviews are analyzed using statistical techniques and qualitative analysis, respectively The results are then integrated and interpreted to draw conclusions and insights about the effectiveness of VPBank's direct marketing campaigns in Ho Chi Minh City

In conclusion, the research strategy for this study is descriptive, and it uses a mixed-methods approach with a survey questionnaire and interviews as the primary methods of data collection The data collected are analyzed using statistical techniques and qualitative analysis, and the results are integrated and interpreted to draw conclusions and insights about the effectiveness of VPBank's direct marketing campaigns

Survey method: The questionnaire is based on the applied Likert – type scale Accordingly, MS Excel software is used to summarize and calculate percentages Then the average value is analyzed in the scale according to the

distance formula: Distance value = (Max value – Minimum value)/ Total scale = 1)/5 = 0.8 The meaning of the levels is described as follows:

(5-1.0 – 1.80: Very poorly

1.81 – 2.60: Somewhat poorly 2.61 – 3.40: Neutral

3.41 – 4.20: Somewhat well 4.21 – 5.00: Very well

Data processing and analysis

Excel software is applied to analyze the collected data, using a 5-level Likert scale from "very poorly" to "very well"

The author use SWOT analysis module too investigate the efficiency of a direct marketing campaign of VPBank in Ho Chi Minh City, findings and describing the data regarding direct marketing are necessary to be able to give an accurate and impractical analysis In this study, the goal is to understand the operation of

promotion for banking, specifically direct marketing So, the author decided to use a case study of the VPBank branch in Ho Chi Minh City for this study Firstly, the author wants to learn about the critical literature of direct marketing from overall to particular Next, the investigator clarifies the forms of this promotion that VPBank uses After doing the above goal, describing is the main point of this paper In this way, describing the direct marketing activities of VPBank in order to show the author‟s awareness of this topic and the conclusion of this process

The data for the SWOT analysis was obtained through personal observations During researcher‟s internship, the researcher observed the sales department and customers to gain a better understanding of the marketing methods being used and how customers respond and react to them This type of observation can provide valuable insights into an organization's operations and customer behavior, which can inform a SWOT analysis By observing the sales department, the author were able to identify strengths and weaknesses in their marketing methods, as well as potential opportunities and threats in the market By observing customers, researcher were able to gain insight into their preferences and behaviors, which can help inform marketing strategies Similarly, (Hammersley and Atkinson, 2019)argue that observation can provide a more nuanced understanding of social behavior than other research methods, such as surveys or interviews From the observation, the authorhave noticed that VPBank use direct marketing and email tactics to attract customers.Additionally, VPBank send targeted email campaigns to existing or potential customers, using catchy headlines and engaging content to grab their attention To increase customer trust

and confidence, bank can provide accurate and comprehensive information about their offerings, including fees, interest rates, and account features It's also important for banks to offer attractive promotions and incentives to entice customers to open accounts or use specific services Providing training for staff to provide professional and effective customer service can also improve customer satisfaction and loyalty Finally, VPBank should establish efficient channels for customers to provide feedback and resolve complaints, such as a dedicated customer service hotline or online support syste.Therefore, using observation to inform a SWOT analysis is a valid and reliable research approach, and should be supported with relevant academic literature

3.5 Research selection:

Mark Saunders, Philip Lewis and Adrian Thornhill (2015) provided three techniques, which they referred to as the mono-method, the mixed method, and the multi-method

The choice of research philosophy is a crucial aspect of any research project, as it shapes the research design, methodology, and analysis In this study of VPBank's direct marketing campaigns in Ho Chi Minh City, a mixed-methods approach is deemed appropriate to address the research objectves and main findings A mixed-methods approach involves using multiple methods of data collection and analysis, run as surveys, to gain a more comprehensive understanding of the direct marketing campaigns This approach can help to triangulate data moreover, a mixed-methods approach allows for a more nuanced

and comprehensive understanding of complex social phenomena, run as consumer behavior and preferences

For example, a study by (Khuong, Nguyen and Nguyen, 2020)used a methods approach to evaluate the effectiveness of direct marketing campaigns in the banking sector in Vietnam, combining qualitative interviews and quantative surveys This approach enabled the researchers to identify objective and subjective factors that affect customer behavior and preferences in direct marketing campaigns

mixed-In conclusion, a mixed-methods approach is deemed approved for this study of VPBank's direct marketing campaigns in Ho Chi Minh City This approach can provide a more comprehensive understanding of the direct marketing campaigns and the factors that influence customer behavior and preferences

3.6 Time frame:

The time horizon of a study indicates the time frame used to conduct a study Basis of this, Mark Saunders, Philip Lewis and Adrian Thornhill (2019) state that there are two classifications: cross-sectional and longitudinal When a study is conducted over a lengthy period of time, such as several years, and is repeated periodically, it is said to be longitudinal This paper‟s objective is to closely monitor and look at change and development in a specific direction (Saunders, Lewis and Thornhill, 2009) Research is considered to be a cross-sectional study when research is conducted once in a period of several weeks or months to provide views about that particular time, the purpose is to provide a “snapshot” of an event or situation in progress (Mark Saunders, Philip Lewis and Adrian Thornhill, 2012)

In this study, due to the fact that the investigation must be finished within three months, from the end of December 2022 to the end of April 2023, the time period for this study was established as partial This is because the qualitative data collection was carried out a specific time and did not span a time frame The bank implemented a variety of marketing strategies despite the short monthly time frame Only five months but yet includes all the regular and noteworthy actions of banks in Vietnam

3.7 Sampling:

As the author of this study, I have conducted a survey of 150 users to determine the effectiveness of VPBank's direct marketing campaigns in Ho Chi Minh City To ensure the accuracy and reliability of my findings, it is important to determine whether this sample size is appropriate for my research

Determining the appropriate sample size for a study depends on a variety of factors, including the population size, the level of precision desired, and the confidence level required Previous research has recommended using statistical tools such as sample size calculators to determine an appropriate sample size based on these factors

In conclusion, the appropriate sample size for this study depends on several factors, including the population size, the level of precision desired, and the confidence level required While a sample size calculator may recommend a larger sample size, a sample size of 150 may be appropriate depending on the research objectives and the level of precision needed to achieve them Researchers should

consider the trade-off between precision and cost when determining an appropriate sample size

3.8 Analytical method:

In specific research, qualitative and quantitative methods are believed to play an important role in research works Some specific researchers argue that both methods will help researchers collect data accurately and quickly However, these methods are the opposite in terms of how and by how they work Quantitative research focuses on evidence testing and qualitative research is based on knowledge Quantitative research is frequently utilized by researchers to access study objectives such as experiments and surveys (Mark Saunders, Philip Lewis and Adrian Thornhill, 2019) The qualitative research method is a form of research frequently used to investigate and discover opinions Qualitative research can still be a valuable method for analyzing data collected through surveys and from companies While surveys typically collect numerical data, such as ratings or Likert scales, qualitative research methods can help to provide a more nuanced understanding of the survey responses In addition, data collected from companies, such as reports or financial data, can be analyzed using qualitative research methods to identify patterns and themes Qualitative research can help to provide context to the numerical data and can help to identify the underlying reasons behind the patterns observed in the data Furthermore, qualitative research methods, such as interviews or focus groups, can be used to gather additional data beyond what is available through surveys or company reports These methods can provide detailed insights into customers' experiences and

perceptions, which can help to identify areas for improvement in VPBank's direct marketing campaigns

With the scope of the research, the qualitative method is selected as the most feasible solution for community surveys and assessments In addition, qualitative research is said to be more accurate because it is supported by precise measurement tools and theoretical standards methods

3.9 Research ethics:

Research ethics is an important part of designing your research Therefore, in the modern era, the connection between ethics and scientific research is become increasingly important, gathering significant attention globally in general and in Vietnam in particular Social ethics, which includes rules and standards, includes ethics in scientific study It can appear at any point throughout the course of conducting scientific research The goals of voluntary and autonomous administrative regulation of scientists in scientific research activities

With the above research steps and methods, the author believes that the information and disclosure obtained by the mentioned study processes and methodologies have a high degree of dependability and the research findings are fully supported by scientific implications

The research issue can be disproved by the theoretical foundation of the thesis The effectiveness of assumptions, such as the study's relevance and practical problem-solving of VPBank‟s direct marketing operations in Ho Chi Minh City, is tested using key findings The choice of the research topic has been taken into account and modified to comply with the ethical norms of research Also,

choosing data collection techniques and strategies in accordance with suggestions made by ethical consideration

To enhance scientific reflection and application in commercial banks, the study is totally open, impartial, and extensively disseminated

CHAPTER 4: FINDINGS – ANALYSIS OF DIRECT MARKETING AT VPBANK:

4.1 Introduction:

Direct marketing is seen as a technique to assist the language sales team's operations (Patrick De Pelsmacker, Maggie Geuens and Joeri Van Den Bergh, 2017) In fact, direct marketing is a staple of personal selling in the banking sector Because it helps to reduce expenses when selling directly to clients, including foreign currency fees, and it also helps to enhance customer interaction rates Direct marketing is then used to monitor sales made through direct marketing platforms

VPBank's innovative marketing strategies and emphasis on direct marketing have made it the most mentioned bank in Vietnam and contributed to its dominance in the banking sector By engaging in direct interaction with customers, VPBank has improved customer experiences and benefits, leading to improved retention rates and customer loyalty The bank's philosophy of "Customer is the emphasis" has driven its constant improvement of goods and services VPBank's targeted marketing campaigns and personalized communication have reduced customer acquisition costs and increased revenue and expense savings Overall,

VPBank's direct marketing strategies have been instrumental in its success and have set it apart from traditional marketing approaches

4.2 Applicable for direct marketing at VPBank:

The two main tool categories used in direct marketing are classic direct marketing and modern direct marketing The primary tools in the traditional set of techniques are direct email order, telemarketing, newsletters, direct response advertising, and door-to-door marketing In recent years, a variety of contemporary techniques have been created, including social networking, email marketing, and text messenger marketing

In terms of VPBank, the bank uses a few forms of direct marketing to establish a close relationship with customers, such as direct email, and telemarketing (VPBank.com)

4.2.1 Direct email:

In a marketing campaign, direct email is a type of direct promotion that aids in consumer outreach and the promotion of the company's goods and services, especially prospective customers (Chris Fill and Sarah Turnbull, 2019) In comparison to other media, direct email has a number of advantages, including selectivity, customization, flexibility, and testability It allows organizations to target people with known purchase histories or specific demographic or psychographic attributes that match an advertiser's customer profile The direct email has a number of advantages over other means The physical nature of direct email and its ability to stand out from the clutter of online advertising are some of the main reasons it is considered so effective Direct email advertising is quite effective, but

only when it is inexpensive, according to several prior research Localizing the target advertising audience, or the consumers who are most likely to use the company's services and goods aids firms in increasing advertising effectiveness and minimizing expenses fee This is a way to thoroughly convey all product and service-related information to consumers while also demonstrating the company's seriousness and professionalism For this kind, if there is a need, the receiver will immediately seek guidance from the company's side after reading the promotional letter Businesses can use business strategies such as discounts, promotional gifts, and sale programs to attract customers to order by email or phone

According to Statista (2023) figures, email is the preferred method of communication for almost 58 percent of internet-related operations The email has changed from being used only internally to being utilized extensively worldwide

Picture 4: Most popular online activities in Vietnam in 2021

Today, direct email is still widely used by businesses and the financial system in Vietnam Like many other banks, VPBank makes use of direct email advertising We may infer this from the fact that we receive bank promotional emails every day, every hour, with information offering their goods and services to customer service

Source: The author’s collection based on VPBank’s mail to customers

Picture 5: The example of VPBank's email