Improvement the marketing mix policy for internet banking service (IBank) at agribank cau giay branch

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LÊ QUỐC VÂN IMPROVEMENT THE MARKETING MIX POLICY FOR INTERNET BANKING SERVICE (IBANK) AT AGRIBANK CAU GIAY BRANCH HỒN THIỆN CHÍNH SÁCH MARKETING XÚC TIẾN HỖN HỢP ĐỐI VỚI DỊCH VỤ INTERNET BANKING TẠI AGRIBANK CHI NHÁNH CẦU GIẤY LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2021 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LÊ QUỐC VÂN IMPROVEMENT THE MARKETING MIX POLICY FOR INTERNET BANKING SERVICE (IBANK) AT AGRIBANK CAU GIAY BRANCH HỒN THIỆN CHÍNH SÁCH MARKETING XÚC TIẾN HỖN HỢP ĐỐI VỚI DỊCH VỤ INTERNET BANKING TẠI AGRIBANK CHI NHÁNH CẦU GIẤY Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG HÀ NỘI - 2021 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for abovementioned declaration THANK YOU With deep, sincere affection, The author would like to express my deep gratitude to all individuals and collectives who have facilitated the study and research of this thesis In particular, The author would like to express my deep gratitude to Dr Pham Van Hong, who has directly guided and helped me a lot during the process of researching and completing the thesis The author would like to express my gratitude to all of the Hanoi School of Business and Management (HSB), Vietnam National University who taught, encouraged and encouraged and facilitated me during my time at the University as well as the time to complete this thesis The author would like to express my sincere thanks to the Board of Directors, colleagues, individuals and professional departments for facilitating and helping me complete this thesis Although the author has made many efforts, the thesis is difficult to avoid certain limitations and shortcomings Due to time constraints and professional qualifications, the dissertation is unavoidable We hope to receive the sincere advice and contributions of the Teachers, friends, and colleagues to improve the thesis Once again, thank you very much! TABLE OF CONTENTS DECLARATION THANK YOU INTRODUCTION 1 The urgency of the topic Research objectives and questions 3 Object and scope of the study 4 Research Methods Topic layout CHAPTER THE BASICS THEORETICAL OF MARKETING MIX AND BANKING SERVICE Error! Bookmark not defined 1.1 Overview of services and banking services 1.1.1 Some concepts 1.1.2 Features of services and Banking services 13 1.2 Overview of banking marketing and marketing mix 20 1.3 Marketing mix 27 1.3.1 Characteristics of mixed marketing tools 27 1.3.2 Content marketing policy marketing mixed program 33 CHAPTER CURRENT SITUATION OF MARKETING – MIX POLICY FOR INTERNET BANKING AT AGRIBANK – CAU GIAY BRANCH 44 2.1 Features of Agribank - Cau Giay Branch 44 2.1.1 The process of formation and development 44 2.1.2 Agribank's goals and mission 46 2.1.3 Function 47 2.1.4 Organizational structure 48 2.1.5 Resources of Agribank Cau Giay branch 48 2.1.6 Business situation over the years 49 2.2 Current situation of marketing – mix policy for internet banking services at Agribank - Cau Giay Branch 53 2.2.1 Actual situation of implementing Internet Banking service marketing policy at Agribank Cau Giay branch over time 54 2.2.2 Survey on Agribank Internet Banking service - Cau Giay Branch 60 2.3 Situation of joint promotion activities for Internet Banking service of Agribank - Branch of Cau Giay 65 CHAPTER COMPLETING THE MARKETING MIX POLICY FOR INTERNET BANKING AT AGRIBANK – CAU GIAY BRANCH 79 3.1 Development orientation of internet banking service at Agribank - Cau Giay branch 79 3.2 Combined Marketing Promotion Solution for Internet Banking Service of Agribank - Cau Giay Branch 82 CONCLUSION 91 LIST OF REFERENCES APPENDIX INTRODUCTION The urgency of the topic Vietnam is witnessing strong changes of the market in the process of economic integration and implementing commitments under the roadmap to join the World Trade Organization Many economic sectors have been and will be forced to open the rest of the world to create a very complex picture of business in which competition is indispensable for any business And so, the banking industry is not out of the picture Banks know that maintaining existing customers is not enough Expanding market share will be a difficult challenge but bring many competitive advantages in service scale Commercial banks are trying their best to survive and develop in the context of increasingly fierce competition and are urgently establishing and expanding operations to create a certain position for themselves in the market According to the latest figures from the United Nations, Vietnam has more than 97 million people (survey data 2019) and income levels are increasing but the proportion of people using banking services is still limited The growth of per capita income and the type of business has created a potential market of commercial banks, especially the banking service market Development of banking services is a trend and an indispensable requirement for commercial banks today to enhance the presence, increase market share and diversify types of banking products and services, contributing to increasing the competitiveness of the bank Therefore, it can be said that types of banking services will thrive in the future Meanwhile, banks will have the opportunity to expand the market, increase the development potential and increase the ability to disperse risks in business The application of Marketing to business activities, especially marketing-mix to promote various types of banking services, has gradually become an important factor for the existence, development and victory in the present time Currently, banks are developing new and multi-utility and socially accepted services such as ATMs, CDM, Internet Banking, Home Banking, Mobile Banking Especially, Internet Banking was born, is a combination of science and technology with banking management technology The introduction of Internet Banking service is a great step forward in payment operations through banks with many utilities, superior features and civilization in payment That fact has marked a new development of the banking service market in Vietnam This will be the basis for thriving banking services and giving customers more and more benefits However, besides the achieved results, Internet Banking still has some limitations such as: Competitiveness and popularity are not high; transactions are limited, not widely implemented, not oriented to customer needs; Risks are still potential for both customers and banks Agribank Cau Giay Branch has more than four trillion VND mobilized capital, outstanding debt is over three trillion VND, finance profit is over seventy billion Dongs In addition, Agribank Cau Giay branch has the most modern IT infrastructure from the World Bank project Therefore, it is said that the banking marketing application at Agribank Cau Giay branch always needs to be reformed quickly to meet the needs of customers so Agribank Cau Giay branch will not lose customers and vice versa, The bank can also enhance its highly competitive services in order to attract more customers Based on that practice, along with the knowledge gained during the course and practical work at Agribank - Cau Giay Branch, I chose the topic "Improvement the Marketing-Mix policy for Internet Banking (IBank) at Agribank Cau Giay Branch” The content of the topic revolves around analyzing, evaluating and proposing a number of marketing mix promotion solutions for Internet Banking services from which through supporting tools to develop customers using the service of Bank Research objectives and questions Research objectives of this thesis are to answer the following question: “How – improve the banking marketing services – Agribank Cau Giay Branch – overcomes – gain more benefits from customers?” (In the interest of helping bankers think more like entrepreneurs) In order to achieve this objective, a list of necessary questions were studied and this thesis hopefully provides all needed information about the current situation of banking services in Agribank Cau Giay branch's bank marketing management evaluations and solutions - If capital were free, what would we differently? (Excessive capital) If capital cost twice as much, what would we differently? (Lack of capital) - Are we a bank that has technology or a technology company that owns a bank charter? - How likely is it that a customer would recommend our bank to a friend or colleague? - What one word we want to own in the minds of our customers, employees, and partners? (For example, Apple = different; Toyota = quality; Google = search.) - Do our customers need more than one thumb to use one click payment method? - What is marketing concept? - What is bank marketing concept? - What is a bank marketing mix in theory? - What to analyse in bank marketing management? - Bank marketing plan in practical situation? Object and scope of the study Research subjects: Modern marketing principles to be applied appropriately at Agribank - Cau Giay Branch Research scope: + Space: the above issues were studied at Agribank - Cau Giay Branch + Time: The proposed solutions in the thesis make sense in the coming years Research Methods Use qualitative and quantitative methods Collecting documents, observing customer behavior, thereby analyzing data on the environment, customers, direct competitors Topic layout In addition to the introduction and conclusion, the thesis content consists of three chapters: Chapter 1: The basics theory of Internet Banking service and Marketing mix Chapter 2: Current situation of Marketing mix policy for Internet Banking at Agribank - Cau Giay Branch Chapter 3: Completing the Marketing mix policy for Internet Banking at Agribank - Cau Giay Branch should have some articles on the bank's official information pages such as the bank's own website, the Vietnam Economic Times, the Banking magazine, the Vietnam Card Association about the situation Bank's business performance over the years with remarkable results, because the more transparent and accurate information that target customers receive, the more their trust in the bank increases that much Articles outlining the operation direction and objectives of the bank over the years so that customers can understand the benefits that the bank brings, articles also need to be updated and introduced to the bank's new and unique services … Banks need to strengthen the relationship between banks and customers It is necessary to ensure this relationship is increasingly strengthened and must be closely linked Creating a good relationship with potential customers in the future as well as with existing customers is an important factor in public relations The two sides will understand each other better and can exploit more information to meet customers' requirements in a timely manner, creating the most favorable conditions for the bank and customers This not only assists the bank in asserting its position, but also increases the prestige and trust of customers, and creates a solid foundation for potential customers in the future Vietnam Bank for Agriculture and Rural Development needs to maintain good existing relationships with customers who are currently using its products, such as: giving souvenirs to VIP customers of the bank (both for enterprises and private customers), customers who have used products provided by Agribank for a long time, customers with large monthly sales on special occasions of the year, such as giving Tet calendar, giving souvenirs on holidays, giving gifts on customers' birthdays or having small gifts with customers regularly trading (pens, notebooks, stationery, etc print the bank logo on it) 88 In addition, for these types of customers, the bank may have preferential policies for certain services For potential customers, in addition to increasing media advertising or PR activities, banks can take advantage of word of mouth (word of mouth) This is a form that the bank can take advantage of from its loyal customers, or with new customers The first impression is very important, so when you contact them, try to bring them professional working style, convenience and comfort in trading, courteous service attitude of transactions When customers are satisfied, they will not hesitate to share or introduce their friends to use the services of the bank to get satisfaction and convenience like them It is not natural that the ancients had the saying "good rumors are far and away, and evil sounds are also spread far away" Therefore, "natural aroma" is not enough And this is how to attract potential customers in the future based on good relationships with current customers Internal communication also plays a significant part in the process of building up the image of the bank itself Communication also needs to be done well so that all employees in the bank understand the goals as well as the tasks of each individual in the whole system The deep understanding of the products and services that the bank is providing helps employees to understand their responsibilities at work and will bring high efficiency in product consulting and introduction for customers 3.2.5 Direct marketing solutions A bank can base on its current customers base and list of potential customers to direct marketing This method will help the bank to send the message directly to its target customers, and it will help the bank be able to track or measure customer responses The bank can rely on the database of customers currently using the products provided by Agribank These customers may not currently use the 89 internet banking service Agribank Once a list of these objects is available, the bank can directly initiate a phone call to offer internet banking service with some special offers for those who subscribe via phone call this Next, a bank can print a catalog that introduces the bank and its current services and services, and then sends it to its existing customers or potential customers To create a list of potential customers for internet banking, a bank can find out the needs of existing customers, or ask them to provide information about people they know who are interested in will use internet banking service In addition, the bank can also search for customer address information through the postal information service Once you have all the information on your target customers, a bank can send mail to their homes In addition, the bank also needs to open surveys on the level of customer satisfaction about the bank by sending mail directly to them Another thing that Agribank can is organize annual seminars, customer conferences, especially groups of customers who are large enterprises and customers traditional goods This activity not only helps the bank strengthen and enhances its current image in the eyes of customers by sending gratitude to customers, but also creates more opportunities to contact and listen to suggestions the bank's customers are for the bank Thereby, the bank can know the advantages that have been achieved, the shortcomings of the bank's products and services to make new effective policies, more feasible The results of these face-to-face sessions will help customers and banks get to know each other better, promoting long-term relationships in the future 90 CONCLUSION As Vietnam's economy has truly become a market economy and international integration, the development of banking services is an indispensable objective, especially new types of services Therefore, the requirement for the banking system is to be constantly and completely renovated Agribank has grasped the trend of innovation in the country's financial sector and has made certain contributions in banking operations Agribank Cau Giay branch also realized the indispensable role and position of Marketing activities for a commercial bank, in fact, has proved the business results of Agribank Cau Giay branch in recent years thanks to applying Marketing policies Through this thesis, the author hopes that the proposed solutions will be applied at Agribank Cau Giay branch in the near future, and can be used as a reference for other commercial banks in the selection the right strategy for the development of services, contributing to a dramatic change for the development of Hanoi financial market on the way of economic integration During the research period, with all efforts and efforts, the devoted support of all Agribank staffs in Cau Giay branch; the enthusiastic guidance of the Teacher Dr Pham Van Hong and the help of teachers from HSB Vietnam National University, Hanoi, the dissertation has performed on schedule Due to the limited time of the research, the thesis cannot avoid the shortcomings, the author is looking forward to receiving more comments to improve the topic 91 LIST OF REFERENCES Assoc Prof Dr Le The Gioi - Dr Nguyen Xuan Lan (2008), Marketing Management, Education Publishing House Dr Nguyen Thi Minh Hien (1999), Marketing of financial services, Statistical Publishing House Dr Nguyen Dai Lai (2016), "Key contents of the banking service development strategy to 2017 and vision to 2020" Assoc Prof Dr Nguyen Thi Nhu Liem (2011), Basic Marketing, Education Publishing House Dr Ho Ngoc Luat (2016), "How to limit cash payment in the economy?", Banking Computer Magazine (Xuan Binh Tuat issue), p.6-7 TS Tran Hoang Ngan (2014), "A brief introduction on the development of electronic banking in the world", Banking Magazine (5), 10-11 State Bank - Hanoi City Branch, Summary report on banking industry 2017, 2018 Peter S Rose (2001), Commercial bank governance, Financial Publishing House, Hanoi Philip Kotler (2008), Kotler on Marketing, Tre Publishing House 10 Philip Kotler (2006), Marketing Management, Statistical Publishing House 11 Pierre Eiglier - Eric Langeard (1995), Servuction - Marketing services, Science and Technology Publishing House, Hanoi 12 Dr Nguyen Thuong Thai (2016), Basic Marketing Textbook, Information and Communication Publishing House 13 Dr Nguyen Thuong Thai (2006), Textbook of Service Marketing, Post Publishing House 14 Nguyen Xuan Thanh (2005), "The most current issues of concern for modern banking managers", Banking Magazine (2) 15 Dr Trinh Quoc Trung (2007), Banking Marketing, Statistical Publishing House Ho Chi Minh City 16 www.marketingchienluoc.com 17 www.internetmarketing.vn APPENDIX SURVEYS I am Le Quoc Van, a graduate student at HSB - Vietnam National University, Hanoi, and now I am conducting a survey on Agribank's Internet Banking service We hope to receive your cooperation The information that you provide through answering this questionnaire will be kept confidential, research results will be published in aggregate form and will be used in proposing Marketing solutions for translation Internet Banking at Agribank - Cau Giay Branch PART I - BASIC INFORMATION Age: ☐ 18-35 ☐ 35-50 ☐ ☐ Female ☐ College / University ☐ Over 50 Sex: ☐ Male Academic level: ☐ High school Other Which of the following subjects you present? ☐ Business ☐ Going to school ☐ Civil servants ☐ Housewife ☐ Other Your income: ☐ Under VND million ☐ From to 10 million dong ☐Over VND 10 million Which channels you know about Agribank? ☐ Acquaintances ☐ Internet ☐ Sign ☐ Television, newspaper, radio ☐Charitable activities ☐ Other How long have you used Agribank's services? ☐ Under year ☐ From to year ☐ Over years PART II - YOUR COMMENTS ABOUT INTERNET BANKING SERVICES AT AGRIBANK The purpose of using your Internet Banking service is: ☐ Look up account information ☐ Open / close savings deposit transactions ☐ Perform money transfers domestically ☐ Other Please rate the satisfaction of the criteria after choosing the bank's Internet Banking service: Targets Very Dissatisf Very Normal Satisfac dissatisfa- -action satisfac-tion -ction tion Agribank's Internet Banking service has many utilities O O O O O The transactions are made quickly and accurately O O O O O Flexible and competitive service charge O O O O O Suitable transaction limit O O O O O The security system of the service is secured and safe O O O O O The procedure for performing simple transactions O O O O O The process of service registration is simple and quick O O O O O Please indicate the priority of the following factors when you choose to use Internet Banking at Agribank: (In order of priority: 1: least priority, 5: highest priority) Targets Big and reputable bank O O O O O Good service quality O O O O O Information about transactions is always confidential O O O O O Luxury branches and transaction offices O O O O O Wide network operation O O O O O Nice website interface, attractive, always updated information O O O O O Simple procedures, fast O O O O O There are many other transactions at Agribank O O O O O Do you use any other products or services at Agribank? ☐ No ☐ Yes, if yes, what services you use? ☐ Savings deposit ☐ Credi ☐ Guarantee ☐ Other Do you use the Internet Banking service of other banks? ☐ No ☐ Yes, if yes, please name the banks you are using: ………………………………… Will you introduce Agribank's services to relatives and friends? ☐ Yes ☐ No Your input on Agribank's Internet Banking service (if any) ………………………………………………………………………………… Thank you for your cooperation! APPENDIX SURVEY RESULTS PART I - BASIC INFORMATION The age of customers surveyed The age of customers surveyed 12% 18-35 years old 35-50 years old Over 50 years old 52% 36% Customer gender surveyed Customer gender surveyed 46%male 54% Female Educational level of the people surveyed: Other 4% High school, 34.67% Colleague/ University, 61.33% Occupation of people surveyed: Occupation of people surveyed Business Officer 9% 0% Going to school Housew ife 11% 13% 67% Other Income of the people surveyed: Income of the people surveyed 15% 26% 59% Under VND millions From to 10 millions Over VND 10 millions 0% 50% 100% Information source to help customers access Agribank's services: Sign 17% Charitable activities 3% Other 0% Internet 6% Television, Newspaper 15% Acquaintance 59% 14 Time to use the service of customers surveyed Time to use the service of customers surveyed Used Time 10% 70% 0.2 3 years PART II - CUSTOMER'S COMMENTS ABOUT INTERNET BANKING SERVICES AT AGRIBANK Purpose of using Internet Banking services of customers Other 0% Perform domestic money transfers74% Look up 10% Open / close money transactions saving 16% N Minimum Std Deviation Variance Maximum Mean Statistic Statistic Statistic Std Statistic Error Criteria Criteria Criteria 150 150 150 3.00 4.00 3.00 5.00 5.00 5.00 4.4133 04456 54572 4.4467 04073 49881 4.4867 04410 54015 298 249 292 Criteria Criteria Criteria Criteria Valid N (listwise) 150 150 150 150 3.00 3.00 3.00 4.00 5.00 5.00 5.00 5.00 3.9067 4.1200 4.1867 4.3733 273 147 314 236 04267 03126 04575 03963 Statistic 52260 38285 56028 48531 Statistic 150 Compare the average review score of customer satisfaction with the Bank's Internet Banking service The procedure for performing simple transactions The transactions are made quickly and accurately Competitive service cost level Suitable transaction limit The security system of the service is secured and safe The procedure for performing simple transactions The process of service registration is simple and quick 3.6 3.7 3.8 3.9 4.1 4.2 4.3 4.4 4.5 4.6 The priority bases of customers when choosing to use Internet Banking service at Agribank Criteria Criteria Criteria Criteria Criteria Criteria Criteria Criteria N Missing Valid 150 150 150 150 150 150 150 150 Mean Std Error of Mean Median 2.9667 4.7467 4.1267 4.0667 3.3133 4.0467 4.7133 3.9933 03053 03563 03819 04885 04743 04266 04160 03344 3.0000 5.0000 4.0000 4.0000 3.0000 4.0000 5.0000 4.0000 Std Deviation Variance 37393 43638 46770 59828 58087 52247 50946 40956 140 190 219 358 337 273 260 168 Range 2.00 Minimum Maximum Percentiles 50 75 25 1.00 2.00 2.00 3.00 2.00 2.00 2.00 2.00 4.00 3.00 3.00 2.00 3.00 3.00 3.00 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 3.0000 4.0000 4.0000 4.0000 3.0000 4.0000 4.0000 4.0000 3.0000 5.0000 4.0000 4.0000 3.0000 4.0000 5.0000 4.0000 3.0000 5.0000 4.0000 4.0000 4.0000 4.0000 5.0000 4.0000 Compare priority points of customers when using Internet Banking service at Agribank There are many other transactions at Agribank Simple and fast procedures Exterior design at easily recognizable transaction points Wide network operation Luxury branches and transaction offices Information about transactions is always confidential Good service quality Big and reputable bank 0.5 1.5 2.5 3.5 4.5 ... Content marketing policy marketing mixed program 33 CHAPTER CURRENT SITUATION OF MARKETING – MIX POLICY FOR INTERNET BANKING AT AGRIBANK – CAU GIAY BRANCH 44 2.1 Features of Agribank - Cau Giay. .. The basics theory of Internet Banking service and Marketing mix Chapter 2: Current situation of Marketing mix policy for Internet Banking at Agribank - Cau Giay Branch Chapter 3: Completing the. .. of Agribank Cau Giay branch 48 2.1.6 Business situation over the years 49 2.2 Current situation of marketing – mix policy for internet banking services at Agribank - Cau Giay Branch