3. Hanoi Bank Marketing Seminar
Marketing Introduction
« a brief historical approach »
PART 1
3
4. Hanoi Bank Marketing Seminar
DEFINITION 1
- 1948: The Marketing concerns the achievement of companies activities
associated to the dissemination of goods and services from the producers to
the consumers.
4
Historical approach of the American Marketing Association
- de 1970 à 2004: The marketing is a function of the organization which
consists in planning and setting up global processes about an idea, a good, or a
service, in order to create a mutually satisfactory exchange in term of value
for people, individuals, actors.
5. Hanoi Bank Marketing Seminar
DEFINITION 2
« The marketing is a policy instrument used by organizations
to influence in their flavor public behavior on which they
depend».
5
An other proposal from the authors of the Mercator...
6. Hanoi Bank Marketing Seminar
DEFINITION 3
"Marketing is the art and science of choosing target markets
and to attract, retain, and develop a customer base by
creating, delivering and communicating superior value to its
customers"
6
Last, a proposal from the authors of the Kotler...
7. Hanoi Bank Marketing Seminar
ISSUES
The role of marketing is therefore create value through
strategies of influence, not manipulation or deception ...
7
... while creating mutual satisfaction!
8. Hanoi Bank Marketing Seminar
CHALLENGES
For marketing people, this is therefore to ensure that individuals
and organizations obtain:
8
- Meeting of their needs
- Satisfaction of their desires...
"While creating sustainable value and not ideology"
9. Hanoi Bank Marketing Seminar
LIMITS
Beyond technics, ethic and legitimacy, what moral?
9
- Professional conduct
- Social consequences
« A difficult balance about shared interests in short and long
term...»
- Ecological consequences
- Economic consequences
10. Hanoi Bank Marketing Seminar
VARIED OBJECTS
Marketing is about more and more objects
10
- Goods
- Services
- Organizations
- Personnalities
- Events and experiences
- Properties (real or movable)
- Informations and ideas
- Places and territories
11. Hanoi Bank Marketing Seminar
Step 1A and 1B
« The Marketing approach:
knowing the market »
11
12. Hanoi Bank Marketing Seminar
MARKETING APPROACH
12
MARKET ANALYSIS
(steps 1, 2 and 3)
STRATEGY
(Swot Step 4A and 4B)
CUSTOMER TARGET
(Step 5)
OFFER Marketing
Mix (Steps 6 and 7)
Perception
Comprehension
Data
Traditional approach Marketing approach
Adaptation
Segmentation
Needs, Desires
OFFER
MARKET
SALE
Creativity
Invention
Technics
Implantation
Penetration
Desire
Influence
Relation
Satisfaction
Efforts
Incomprehension
Dissatisfaction
Creation,
Perception,
Durability Value
15. Hanoi Bank Marketing Seminar
DEFINITION
« A service is an act or a performance that one party can offer
to another that is essentially intangible (unseable) and does
not result in ownership of anything»
(Kotler and Bloom, 1984)
15
16. Hanoi Bank Marketing Seminar
ELEMENTS: PRODUCT TYPOLOGY
• Short terms consumer products:
• Everyday purchase products (daily, recurrent)
• Essentials and necessary products (foods, hygiene)
• Impulsive purchase (small pleasures)
• Last minute purchase (batteries, press)
• Travels
• Long term consumer products:
• Raw materials
• Manufactured goods (computer, furnitures)
• Capital and investment goods
• Supplies and services
• Houses,
• Cars
• Studies
It is quite easy to define product habits
16
17. Hanoi Bank Marketing Seminar
DIFFERENCES BETWEEN GOODS AND SERVICES
• Goods:
• Tangible
• Assessable before owning
• Countable
• Property can be transferred
• Public or private production process
• Available for test before purchase
• Standardized
• Services:
• Intangible
• Not assessable before purchasing
• Non-countable
• Property cannot be transferred
• Customer is a part of the production process
• Hand or taylor made
But Bank offers services and not goods as products
17
18. Hanoi Bank Marketing Seminar
SPECIFICITIES OF SERVICES 1
• Heterogeneity:
• Depend of people => High variability of services
• Need to be adjusted to experience, lifestyle, constraints, etc... of the
customer
• Variability of the quality of the service depending of the people
rendering the service (financial advisor?)
• High degree of personalization related to the people rendering the
service => important risks in case of changes
• Intangibility:
• Difficulty to feel and to own
• Need a specific strategy of communication to show
the final satisfaction for the customer
• Need consumption to validate the quality
Several points of differences...
18
19. Hanoi Bank Marketing Seminar
SPECIFICITIES OF SERVICES 1I
• Inseparability:
• The production is often merged with the consumption
(same time)
• The production is directly related to the consumption
(part of the process)
• Most of the time, customers expect high level of quality
of service
• Perishability:
• Specific lifecycle (short life)
• Short validity of certain services (seasons,
availibilities, etc...
• Storage impossible
Several other points of differences...
19
20. Hanoi Bank Marketing Seminar
UNCERTAINTIES
• Ten distinctive problems to solve:
• Third-Party accountability
• Client uncertainty
• Demonstration experience
• Limited differentiability
• Maintaining quality control
• Making the «Do-ers» the sellers
• Allocating time to marketing
• Pressure to react rather than be proactive
• Conflicting views about advertising
• A limited marketing knowledge base
Kotler, Ph (2002), Prentice Hall Press
«Marketing Professional Services»
20
Hera are challenges when you sell services
22. Hanoi Bank Marketing Seminar
Step 3
« The vietnamese market globaly »
=> Look for general financial report about
the country
- Evolution of bank services
- Evolution of total incomes
- Evolution of the total assets
- Evolution of the debt
- Evolution of rules and laws
22
23. Hanoi Bank Marketing Seminar
DEFINITION
« Bank marketing consists to provide efficient and effective
services to satisfy customers’ financial needs and wants, while
respecting organizational objectives and challenging
competitors».
23
24. Hanoi Bank Marketing Seminar
Step 4
« Building a strategy with a SWOT
analysis »
24
25. Hanoi Bank Marketing Seminar
BANK SWOT
Banks must know the market, customers, and itself !
25
« Strengths »
(of your bank)
« Weaknesses »
(of your bank)
« Opportunities »
(of the market)
« Threats »
(of the market)
Internal Analysis
(Your Bank
choice)
Based ont the
informations collected
in the step 2B
External
Analysis
(Vietnamese
Bank Market)
Based ont the
informations collected
in the step 3
Give your sources (web sites) !
Give your sources (web sites) !
Give your sources (web sites) !
Give your sources (web sites) !
27. Hanoi Bank Marketing Seminar
FACTORS OF MARKET CHANGES
New market:
• Deregulation
• Competition
• Financial sophistication
Banks must face new challenges
New customers:
• Use of new technologies
• Volatility (changing lot)
• Customer orientation
New services:
• Inter-relation, inter-
operability Data bases
• Diversification of products
• Various offers
27
28. Hanoi Bank Marketing Seminar
PRODUCT STRATEGIES
28
Market/
Product Existing New
Existing Market
penetration
Product
development
New Market
development Diversification
Banks must choose a strategy
29. Hanoi Bank Marketing Seminar
Step 5
« Choosing and define a customer target »
29
30. Hanoi Bank Marketing Seminar
CUSTOMER LIVING HABITS
30
Personnal factors:
Age, gender,
personality,
experience of life
Needs and wants?
Environment
factors:
Family, Social
groups, culture,
job
Constraints
Motivations
Bank has to know his customer target
31. Hanoi Bank Marketing Seminar
BANK MARKETING SEGMENTATION
Psychografic segmentation:
• Lifestyle and environment
• Opinion
• Attitudes, personality
• Expectations, tastes
• Activities, habits, projects
• Loyalty
• Benefits expected, fears
Demografic segmentation:
• Homogeneity (age, gender,
family)
• S e l f - r e f e r e n c e b e t w e e n
customers
Strategy and customer segmentation !
31
32. Hanoi Bank Marketing Seminar
BANK MARKETING SEGMENTATION
Mass market approach:
• Low-profit potential customer
• Low costs financial services
• Price sensitivity
Segmentation or stratification?
32
High-end approach:
• High-profit potential customer
• Customized financial services
• Relationship strategy
• Skilled staff
33. Hanoi Bank Marketing Seminar
CUSTOMER AS A TARGET
• Financial general needs and wants
• Keep money Safe (deposits)
• Get liquidity and withdrawals (desk, Atm)
• Propose different ways of payment (checks, credit cards,
overdrafts and bills)
• Allow Transferability (electronic fund transfers)
• Agree Loans (personal, commercial mortgages) and Debits
• Offer Interest earning on savings and deposits
• Accept foreign exchange services (currency exchange, wire
transfer and remittance)
• Run collective funds (investments)
• Insure (life, health, properties and goods, brokers)
• Facilitate company raise of money (bonds as debts, stocks as
equity)
33
Each customer target, each needs and wants
34. Hanoi Bank Marketing Seminar
Step 6-7
« Creating the offer with a Marketing Mix »
34
35. Hanoi Bank Marketing Seminar
SCOPE OF SERVICES AND MARKETING MIX (OFFER !)
Specific marketing mix
• Product
• Price
• Place
• Promotion
Banks must adapt services and mix for improving quality
35
36. Hanoi Bank Marketing Seminar
PLACE
PROMOTION
PRODUCT
PRICE
- Bank branch network
- Automat Teller Machines (ATMs)
- Electronic funds transfers
- Internet banking
- Telebanking
- Mobile banking
- Fees
- Bank pricing policy
- Interest income
- Regulation
- Mortgages
- Withdraw money
-Deposit tanking (saving,
checking, fixed deposit, et.)
- Remittance
- Lending/borrowing (personal loans,
home equity loans)
- Change Foreign Currencies
- Credit and Debit Card services
- Letter of credit
- Raising capital
- Insurances (life, cars, etc.)
- Foreign currencies
- Wire funds transfers
- Trade finance
- Tool advertisement
- Publicity
- Personnal selling
- Sales promotion
- Events
Bank
MARKETING MIX
36
37. Hanoi Bank Marketing Seminar
PRODUCT LEVELS
• Main benefit (Customer) :
• Level II
• General features of the product
• Detailed value of the product for the
customer
• Future benefit (customer and company) :
• Level III
• Expected value of the product in the future
(evolution, innovation?)
• Main benefit (company)
• Level I
• Priority objective for the company (strategy?)
• Principal value of the product for the company
37
Think your product in terms of level
38. Hanoi Bank Marketing Seminar
TYPOLOGY OF PRODUCTS
• Products and range:
• Leading products (the best product on the market?).
• Call products (a product to attract new customers?).
• Tactical products (a product to change the
customers).
• Substitution products (a product to replace other
product?).
• Regulating products (a product to answer the
evolution of rules or law?).
38
Think your product in terms of strategy
39. Hanoi Bank Marketing Seminar
BANK MARKETING DISTRIBUTION PLACE
• Points of sale
• Remote banking
• ATMs
• Telephone banking
• Internet banking
• Mobile banking
From face-to-face relation to digital bank :
« Any product to anyone at anytime anywhere...»
39
40. Hanoi Bank Marketing Seminar
BANK MARKETING PROMOTION
Advertising:
• Traditionnal press (including specialized)
• Flyers, brochures, posters
• Radio,Tv and cinema
• Shorts films
• Mails
• Exhibitions, seminars
• Internet (Bank website and referencing)
• Call centers (hotline and outsourced selling)
• E-mails
• Social networks
Inform, improve image, and build bank identity !
40
41. Hanoi Bank Marketing Seminar
PUBLIC RELATIONS
• Personal and adapted selling
• Front-line staff strategy
• Identification of the needs of the customer
• Availability for the customer
• Best and suitable service for the customer
(including after sales)
Build a positive publicity for the bank services !
41
Customer acquisition:
• New accounts
• New income
Customer retention:
• Return on investment
• Avoid costly closing account
42. Hanoi Bank Marketing Seminar
NECESSITY OF DIFFERENTIATION
• Variables capacities depending of:
• Kind of product
• Features
• Degree of personalization
• Performances
• Robustness and reliability level
• Life period
• Services offered
42
How to make your bank different
43. Hanoi Bank Marketing Seminar
QUALITY AND SERVICE
Points of improvement:
• Increase employees skills and knowledge
• Increase relationship bank approach
• Increase the range of financial services
• Minimize assembly-line processes
• Increase personalized services
• Increase use of new technologies
• Minimize administrative tasks
• Increase level of employees responsibilities
• Reduce employees specialization
Quality is a way of differentiation...
43
44. Hanoi Bank Marketing Seminar
TWO CHOICES
Short term or long term relation?
44
Transaction:
• Short term
• Isolated sales
• Non constant contact
with the customer
• Product caracteristics
• Low level of service and
contact for the customer
Relation:
• Long term
• Customer retention
• Constant contact with
the customer
• Product value for the
customer
• High level of quality and
contact for the customer
45. Hanoi Bank Marketing Seminar
Customer Relationship Management
(extra bonus course, no evaluation)
PART III
45
46. Hanoi Bank Marketing Seminar
CRM DEFINITION
Transform a simple visit in a long fruitful relationship !
46
- «Consumer is the sole purpose of any business organization», Adam Smith.
- «To constitute a customer, there must be some recognizable course or habit
of dealing in the nature of regular banking business...», Sir John Paget.
47. Hanoi Bank Marketing Seminar
CUSTOMERS
Versus or bounded? Internal or
external customers?
• Customer satisfaction
• Customer loyalty
• Employee satisfaction
• Employee loyalty
First, customers must be very satisfied !
47
1/ Frontline workers are also one of the keys of success of Crm...
2/ Employees, holders, partners, consultants, advertisers, etc.. are
also customers !
48. Hanoi Bank Marketing Seminar
CRM GENERAL STRATEGY
48
Understand
Target
Implement
• Examine customers and market
• Identify highest value of customer’s
segments
Measure
• Profitabylity
• Loyalty
• Adress the customer’s needs
• Take full advantage of database
• Acquisition
• Retention
• Choose segments and media
channels that match the customer
base and preferences
• Efforts
• Difficulties
• Identify service quality
• Verify customers’ level of
expectation
• Effectiveness
• Reactivity
49. Hanoi Bank Marketing Seminar
CRM CATEGORIES
Three categories of CRM !
49
Analytic
Operational
Collaborative
• Customer comprehension
• Statistics, databases
• Information technologies
• Daily customer management
• Call centers, web centers
• Frequently questions and answers
• Long term customer relation
• Inter-operational services
• Internal collaborations
50. Hanoi Bank Marketing Seminar
PROFILING CUSTOMERS
• Understanding needs of the
customers
• Modifying existing services
• Developing new services
• Optimizing processes
Meeting and exceeding the needs of customers..
50
Constantly adapt its strategy to customer needs !
51. Hanoi Bank Marketing Seminar
ELEMENTS OF CRM
Following the customer !!!
51
Acquisition
Retention
Attrition
52. Hanoi Bank Marketing Seminar
CUSTOMER ACQUISITION
• Cross selling (referrals, partners) and up
selling strategy
• Streamline enrollment process
In a world of competition, gaining customers is vital !
52
A/ Balance the loss of
customers by gaining new
one
B/ Customer acquisition is
expensive, need time and is
complex
But, customer needs and expectations evolve quickly...
53. Hanoi Bank Marketing Seminar
CUSTOMER RETENTION
Establish a long term customer relationship !
53
Deregulation
New entrants
Intensive market
• Manage the existing customer
base
• Keep safe customers than
constantly bring new risky
customers
• Provide new services
54. Hanoi Bank Marketing Seminar
LONG-TERM CUSTOMERS
A fruitful customer relationship provides benefits :-)
54
Long-term customers:
• Buy more
• Become referrals
• Stay loyal
• Are less costly
55. Hanoi Bank Marketing Seminar
CUSTOMER ATTRITION
• Set up customer attrition analysis
• Make the difference between gross (associated
revenues) and net attrition (correction with new
similar customers)
• Measure dissatisfaction to prevent and build churn
model
• Try to win-back defecting customers
Customers defection (churn or turnover) is costly !
55
It costs a lot less to retain an existing customer than to acquire a
new one...
57. Hanoi Bank Marketing Seminar
CRM KEY FACTORS 1
Customer informations:
• Identify most important customers
• Use information technologies effectively
• Save maximum datas and harness it
Knowing Customers (current, prospective ans lost)...
57
Customer contract points:
• Plan regular contacts
• Identify core products, and anticipate expected
products or services.
Dialogue with Customers:
• Track changes in customer’s needs
• Evaluate customer’s degree of
satisfaction
58. Hanoi Bank Marketing Seminar
CRM KEY FACTORS 2
Customer satisfaction measurement:
• Understand the buyer-seller relationship
• Set up surveys and provide feedback to the marketer
• Involve customers in the creative process of new products
(included advertisements)
Keeping informed Customers...
58
Customer communication programs:
• Inform regularly customers
• Educate customers about bank’s products, services and usage
conditions
• Give customers a sense of individuality and importance
Customer special events and programs:
• Invite customers to dedicated events
• Send personalized newsletters, videos, product informations
and supports (gold cards, etc.)
• Stimulate cross selling for elligible customers
59. Hanoi Bank Marketing Seminar
SERVICE AND QUALITY
• Quick access to the services (opening time, on line services,
telephone services).
• Good communication and appropriate information between
customers and bank
• Skills and competences required for adapted products and
services (flexibility of the staff)
• Reliability of the product and services
• Credibility of the bank, its products and services
• Respect and consideration from the staff at all levels
• Reactivity and responsiveness of the staff
• Security and confidentiality of the datas
• Up-to-date equipments ans ressources
• Customer knowledge
• ...
Some expected benefits of CRM for customers !
59
61. Hanoi Bank Marketing Seminar
CASE STUDY
• Groups organization:
• 9 groups
• 5-6 students/groups.
• One bank per group
• 7 Steps to solve
61
• Deliverables
• Market Analysis
• Customer Target Profiling
• Marketing mix
• Conclusion and strategy
62. Hanoi Bank Marketing Seminar
CASE STUDY
• Individual evaluation:
• Personal case study
• 40% of the final note
62
• Collective evaluation:
• Google Doc file on the Drive
• 60% of the final note
63. Hanoi Bank Marketing Seminar
CASE STUDY
63
• Steps 1-2 «Introduction»:
• List allVietnamese Banks
• List all Foreign Banks inVietnam
• Choose a bank
• Steps 3 «Service»:
• Get all informations you can about your bank
• List all the bank services you know
• Steps 4-5-6-7 «Bank Marketing»:
• Make a Bank Marketing SWOT for your case
• Choose a Customer Profile and identify his
needs and wants
• Propose a general strategy for your bank
• Prepare the Marketing Mix (Product, Place
and Promotion)
64. Hanoi Bank Marketing Seminar
Contact:
Université de Toulon
IUT de Toulon
France
Département TC
philippe.bonfils@univ-tln.fr
64
