CIMM exam assignment 1

KM support CRM process - Planning: Knowledge of customers purchase and customers’ behavior, the ability to analyze customers’ data through knowing customer habit, HSBC can approach cust

Outcome 1: Knowledge marketing

Definition of knowledge: a fluid mix of framed experience, contextual information, values and

expert insight that provides a framework for evaluating and incorporating new experiences and

information Knowledge is intangible dynamic, and difficult to measure, but without it no

organization can survive

Type of knowledge: There are two main types of knowledge, including tacit knowledge and

explicit knowledge

Tacit knowledge: knowledge that is stored within an individual and as such is personal and context specific Is documented and public; structured, fixed-content, externalized, and conscious It can be captured and shared Acquired by sharing experiences, by observation and imitation

Explicit knowledge: knowledge which has been “encoded into some media external to a person Is resides in the human mind, behaviour, and perception People’s interactions and requires skill and practice Can be verbalized, communicated, processed, transmitted and stored relatively easily

Knowledge, explicit and tacit, is distributed in the organization, for exploding it and really generates a competitiveness oriented value It is necessary to design KM strategies that position knowledge as a strategic asset in the search for efficiency and transparency

Definition of knowledge marketing: Knowledge management is getting the right information to

the right people at the right time, and helping people create knowledge and share and act upon information in ways that will measurably improve the performance of organization KM is an effort

to increase useful knowledge within organization

Relationship between KM and CRM: CRM and KM have become key strategic tools for all

companies, especially in the current competitive and challenging economic environment For example, by integrating CRM and KM, you can build a robust repository of tested solutions to customer issues Service agents can access this complete library of technical information as well as customer information, which means they can resolve a complicated customer support issues more quickly

The integration of CRM with KM is expected to bring many benefits for the organization such as:

Greater customer insight and knowledge/improve response time/ increased customer satisfaction/ upselling and cross-selling opportunities/ reduce time to market/ fewer escalated inquiries

KM support CRM process

- Planning: Knowledge of customers purchase and customers’ behavior, the ability to analyze

customers’ data through knowing customer habit, HSBC can approach customer and create excellent products and services satisfy their requirement easily

- Assessment: Knowledge of using ICT tools which applying into CRM, the ability to analyze

customer information By applying effective ICT tool in CRM, HSBC can control millions of customer accounts and manage loads of data easily and quickly

- Execution: Knowledge of exhibiting products, communicate skill and ability to negotiate 

Presentation skill is good will make customers believe in company Knowledge of behavior and professionalism in customer care department  Good behavior and high professionalism in receiving customer feedback will increase customer satisfaction for maintaining existing customer and attract new customer

Outcome 2: Service marketing

What is a service?

A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything Its production may or may not be tied to a physical product

Examples of service industry includes: education, health services, banking, real estate (high contact

service), insurance (medium contact service), radio services (low )

Differences between service and product

Product: are produced (physical goods)/ is tangible (product can be felt, seen, tasted or touched)/ can be inventoried, returned, or resold/ Products are homogenous/ There is transfer of ownership in product/ customers do not take part in the process of production/ the life cycle is produced, sold and consumed

Service: is performance (action)/ is intangible (services can’t be felt, seen, tasted or touched)/ cannot be inventoried, returned, or resold/ Services are heterogeneous/ There is no transfer of ownership in service/ Customers can take part in the process of production/ Buyer will sell first, then produce, and consume

Characteristic of service marketing

- Intangibility: can’t be seen, felt, tasted, touched, or stored

- Heterogeneity: Fundamental characteristic of services which results in variation from one service

to another, or variation in the same service

- Inseparability: Services cannot be separated from suppliers

- Perishability: A characteristic of services, describing how service products cannot be stored because they are produced and offered at particular moments in time

s of service

Intangibility - Difficulty in displaying or

communicating services The services of HSBC Bank such as securities service and corporation insurance, transfer cannot be seen, experience prior purchasing and using it

- Lack of protection of patents:

HSBC services can be seen as

an intellectual property

However, it can be copied by another organization

Give physical evidence for customer to them believe that bank can provide excellent services for them

- Use of tangible clues: By using video which interviews people used services

of HSBC to assist potential customer in making service evaluation

- Use of personal source of information: Encourage members to introduce friends to use services and products of HSBC Bank

- Offering incentive to existing customer for attracting new customer such as 10% discount using credit card

- Creation strong organizational brand:

Do more in advertising in order to transfer the information about services and products to the community  make strong brand to built trust in customer’s mind

Heterogeneity - Inability in controlling the

service quality before it reaches the customers: HSBC Bank cannot know whether services satisfy all customers or not

- Service offered by one employee may differ from the other: The quality of service depend on the service provider

- Customization: HSBC need focus on improve services and products and added vales to customers through do survey or interview to receive customer’ feedback and analyze customer’s needs and wants

- Standardization: Make improvements

in human resource management to HSBC’s employees who provide services directly for customer will services customer in the same ways (good behavior, high professionalism),

or develop more ATM machine.

Inseparability - Physical presence of the

service provider: HSBC’ staff always communicate directly with customer in each transaction

- The involvement of customer

in the service process: HSBC’s service is only implemented when having presence of customer

- Recruit qualified staffs and provide training courses  improve their skills

- Emphasis on customer management: Keep contact with customer,

Perishability - Services can’t be inventories

- Difficulty in matching the demand and supply in service:

Consumer don’t know the service quality before using it

so HSBC will have difficulty in identify demand of customer to supply and satisfy them

- Apply sale promotion: HSBC can discount for specific customers

- Using ICT tools to introduce products and service to attract customer Knowing customer have high demand, HSBC can increase supply

Outcome 3: Describe the use

Product Product is the key in the

development and creation of

customer value, which is

vital for growth in the sales

and the sustainability for the

business

- Core product: HSBC provides clients a

comprehensive range of business banking services including Retail Banking and Wealth Management, Commercial Banking, Global banking, payment and cash management, global markets, global trade and receivables finance, securities services, corporation insurance that aim to bring benefits for customer

- Actual product:

Brand name: “The Hongkong and Shanghai

Banking Corporation Limited” is well-known

brand in term of banking The aims of HSBC are revealed through its slogan “The world’s local bank” and business focus.help customer recognize product and services of HSBC

Quality: HSBC is committed to providing

customer with a first-class service and effectively delivering the products and services

- Augmented product: Hotline, email to

provide customer information about product and services

- Expected product: provide for customer

services for the future such as designing E-wallet, remote payment service

Price Earn revenue/ define the

pricing strategy that will best

attract customers within the

business’s target market

Approach to pricing: Value-Based Pricing:

HSBC launch First Class Banking for Vietnamese business HSBC has applied the model of “Director of Customer Relations” to give personal financial advice for each client using First Class Banking Just one phone call, Director of Customer Relations will serve the financial requirements of customer

immediately All activities are quickly, safe and secure

Price promotion: Loyalty benefits for

customer of HSBC bank Hsbc offer 10%

discount on all service for loyal customer who used service and products of bank during 3 last years

Price expectation & positioning: HSBC issues

diamond credit card for customer who have high demand in using credit card Consumers who spend big dollar on their credit card may

benefit from having a diamond credit card such as fast payment, excellent service and best rewards programs

Place

Place are the means by

which interdependent

organizations

move products or services fr

om the producer to the

person that purchases or

consumes the product Way

to distribution services

- Traditional distribution channels: HSBC built

16 branch sales offices spread around Vietnam and 2 representative offices which is located in center of Hanoi and HCM city HSBC still continue spreading more branches in Vietnam

- Modern distribution channels:

About the number of ATMs, HSBC has more than 300 ATMs throughout the country Besides, there are transactional channels such

as internet banking, mobile baking which can transfer to anywhere only with a simple operation, can perform all transactional anytime, and can get instant cash without directly to the counter of the bank or post office

Promotio

n

Promotion is the business of

communicating with

customers to inform the

existing and potential

consumers about a product,

and persuade consumers to

buy the product

RED HOT promotion: HSBC launch a campaign

using credit card Besides, the exclusive discount up to 50% when dining and shopping

at 14 merchants, with each VND 1 million spent using credit card from 22 Mar to 19 Jun

2013, customers will automatic receive one chance to win VND 3 million cash back from HSBC Great Offers

Sales promotion: HSBC encourage enjoy the

attractive offer when shopping with HSBC Credit Cards at Big C When purchasing electronic and home appliances valued at VND

5 million and above with HSBC Credit Card at BigC, customers will enjoy a 10% cash back

(maximum VND500, 000) Offer period:

18March - 22 April 2013

Sponsor: HSBC coordinates with

non-governmental organizations (NGOs) to sponsor for street children, orphans by supporting about education, livelihood training and rehabilitation

Advertising: HSBC always advertise by using

internet such as Youtube, official website, and Twitter…

People People are the most

important element in

maintaining transactional

marketing and create

customer relationship

-Transactional marketing:

People are the transactional

interface between the

company and its customers

so people deliver the service

and they collect money

- Relationship marketing:

People underpin the

customer relationship

between the company and

the consumer; and add much

value to the transaction

HSBC always interested in using people factor because recruiting and training the right staff is required to create a competitive advantage Way to use people of HSBC Bank is the right people for the right jobs

- HSBC recruits new employees who are well-trained about what job requires, have positive attitude and willing to learn new knowledge

- HSBC’s employees are encouraged intensive training about specialized knowledge which suit for job function in order to implement the various services of bank and prepare for jobs with higher responsibilities

- Front the transaction (Front-line staff), front relationship: Front-line staff is people

who work directly with customer such as teller, customer service staff, direct sale officer Therefore, their performance and attitude is critical in the customer’s perception about the quality of services Based on job requirement, besides having basic specialized knowledge, HSBC select people who work quickly, flexible accurately, carefully, and especially have

friendly attitude when communicate with customers

- Behind the transaction, behind relationship: They are people who don’t

communicate directly with customers but they play an important role in business run such as accountant, auditor, product development experts…HSBC select people who have high team work skills, logically thinking skills, especially have deeply knowledge about job Process Process includes the various

mechanisms and procedures

which help the product to

finally reach its target

market It play role as

means to achieve an

outcome

A bank wire transfer

Step1: To request a wire transfer, bank requires specific information from the sender such as sender’s personal identification information and all the account information for the payee

 to ensure that the funds are deposited into the proper bank account

Step2: Pay the bank for the transfer  Banks collect payment for the service from the sender

as well as from recipient The sending back typically collects a fee separate from the finds being transferred

Step3: Wait at the bank while they send the message via the SWIFT network (society for worldwide interbank financial

telecommunicationsThe fund transfer will take a few hours for domestic wire transfer and about 5 business days for international wire transfer

Personal Internet Banking registering process

Step1: Visit www.hsbc.com.vn and click on

“register” icon on the right hand side toolbar to access HSBC’s Personal Internet Banking

Step2: Select the appropriate number (ATM/debit card, credit card or Phone Banking number) and fill in the required details such as username and password and set up your security questions and answers, read and accept the Personal Internet Banking Services

Home loan process

Step1: Initial Loan Application: provide information related to income, liabilities, and assets  help loan officer ensure that you can pay money back after transaction

Step2: Underwriting  a loan decision is made

Step3: Processing  Prepare the loan for funding

Step4: Loan Closing Document and Funding  check approval conditions and disburses the loan

Physical

Evidence

Packaging the services,

facilitates the flow of the

service delivery process,

socializes employees and

customers, provides a means

for differentiation

Brand name & logo

- HSBC stand for “The Hongkong and Shanghai Banking Corporation Limited is the holder of the top spot on a list of 500 bank brands

- Logo: HSBC has an elongated red hexagon which is an agglomeration of three symbols that signify the national flag of Scotland to portray the Scottish origin of its founder Thomas Sutherland, the red color symbolizing China, and the triangles at the side depict two doors portraying opening the doors of the globe

to the customers, symbolizing the bank being

“open for business”

Uniform: Staff wears uniform neatly, look

them very professional

Design of webpage: Webpage is designed very

logic, creative, and looks very professional

Besides information related to products and services, website also provides information about history and prize, awards which company achieve during 17 years

Building: large building is located at PhoCo

-center of business in HN city where is crowed, design of building very impressive, parking at building is very large, the landscaped surround the building is beautiful

Outcome 4:

Pro

duc

t

Effort on developing

customer value creation:

understanding what

customers needs and

wants in order to create

products and services

satisfy customer’

requirement

Feel comfortable when using products and services which meet their demand

Attract potential customers, reinforce the brand name into the minds of customers

Develop the product

(Product differentiation):

create high quality

They can buy high quality products at discount prices

Built the belief in customer’ mind, gain competitive advantage over existing and