Causes and Limitations in Marketing Activities of Tien Phong Commercial Joint Stock Bank

Mixed promotion and communication activities , especially public relations (PR) and advertising activities, are increasingly diverse and updated with new media trends, accurately grasping market trends to have appropriate communication campaigns, bringing high efficiency, skillfully selecting and using brand ambassador images combined with celebrities to increase brand coverage and impressive results for each product and service campaign.

Human resources: TPBank is currently one of the young banks but owns the most powerful human resources. TPBank has built a team of staff with rich professional expertise, experience and technology knowledge. The core team is good at professional skills, highly responsible, enthusiastic, ready and strive to do well the assigned work.

Process operations : Although still a young bank, TPBank has built a system of standard, methodical, and professional processes for all of its operations to ensure smooth, consistent, convenient, and maximum secure operations.

Activities on tangible evidence : the network of transaction offices, branches, and automatic banks are equipped with modern and spacious facilities with the standard model of a modern bank. In addition, the technology platform at TPBank is always given top priority with the most advanced application system to create convenience for customers and customers can be more proactive in their transactions.

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2.4.2. Causes and limitations in Marketing activities of Tien Phong Commercial Joint Stock Bank

However, in general, TPBank's marketing activities have not been as effective as expected.

Market research activities : Up to now, TPBank has not had a systematic and systematic market analysis process, mainly focusing on subjective comments and assessments from the management board. In addition, TPBank has not focused on potential markets such as household business loans, loan packages

serving activities related to the agricultural sector, ... due to many limitations in understanding customer needs and exploiting potential markets.

Product activities : have not yet launched products with strengths that surpass other banks. For personal credit products, TPBank has not yet developed products for individual business households, has not yet developed specific credit products to support import-export enterprises, etc. The main reason is that the leadership team has not yet had a policy to deploy and develop reasonable products, choosing core products as competitive strengths.

Pricing activities: the service fees and interest rates that TPBank is applying are not really competitive with other banks, partly due to the influence of policies and laws on interest rates and rate adjustments in the market. Operating costs have not reached the optimal level, so TPBank still maintains a fairly high service fee and low deposit interest rates compared to other banks.

TPBank's public relations, promotion and communication activities are still passive and rigid, the style has not been clearly defined, and the communication tools are not completely consistent, so the impression and understanding of customers have not really met strategic expectations. Advertising programs and information provision about TPBank are sometimes not synchronized, and have not created a buzz to attract customers' attention. Limitations in promotion and communication activities come from the selection of implementation campaigns and implementation channels that are not really suitable, leading to difficulties in receiving from customers. In addition, reporting on the effectiveness after each campaign has not been thoroughly implemented, leading to difficulties in measuring work efficiency and summarizing lessons learned.

Human resources activities : With a large number of employees in a young bank like TPBank, there is a lack of uniformity in quality. The working style of some employees is still rigid, the working attitude is bureaucratic. Besides, TPBank also has internal weaknesses such as training and coaching of human resources that have not really received due attention; or training is not considered a useful activity for expertise, profession, serving work needs but only stops at forcing

forced. Products and services are not really diverse, internal information systems are limited, there is no synchronization between Headquarters and branches/transaction offices, requiring more effective and consistent coordination and communication, with a clear and transparent reporting system to be ready to directly recognize outstanding issues.

Process operations : despite many process improvements to adapt to the development of 4.0 technology, TPBank still has certain limitations such as cumbersome procedures, going through many levels of approval, so transactions often take a long time to perform. The credit management system often has errors, causing delays in processing.

Tangible evidence activities : Due to being influenced by many factors, mainly technology and human resources, TPBank's marketing tools are not completely coordinated and have not created a combined strength. TPBank has not yet reached a consensus on the standard model between headquarters, branches, and transaction offices. The LiveBank automatic banking system has not really achieved expectations because there is still support from human resources on duty at the system to minimize risks for the bank.

Chapter 2 Summary

Chapter 2 provides a general introduction to TPBank, including its history, functions, tasks and business results in the period 2018-2021. Factors include economic situation, socio-culture, demographic environment, science and technology, competitors, customers, suppliers, and substitute products. Internal factors include facilities, human resources, technological capacity, and corporate culture that directly or indirectly, positively or negatively affect the bank's marketing activities.

In addition, the content of chapter 2 also delves into analyzing the current status of Marketing activities at TPBank through secondary data collected and synthesized by the author from many sources and internal documents of TPBank.

Thereby, the author draws out the strengths, weaknesses, opportunities, and challenges in marketing activities at TPBank, which is the basis for building specific solutions for TPBank's marketing activities in chapter 3.

CHAPTER 3. SOME SOLUTIONS TO PROMOTE MARKETING ACTIVITIES

AT TIEN PHONG COMMERCIAL JOINT STOCK BANK IN THE PERIOD 2022-2025

3.1. Marketing orientation of Tien Phong Commercial Joint Stock Bank in the coming time

3.1.1. Opportunities and challenges of Tien Phong Commercial Joint Stock Bank by 2025

On May 11, 2021, the State Bank of Vietnam (SBV) issued Decision No. 810/QD-NHNN approving the digital transformation plan for the banking sector until 2025, with a vision to 2030. The development and promulgation of the digital transformation plan for the banking sector is of great importance, both for the SBV to concretize and implement the resolutions of the Party, the tasks assigned by the Government and the Prime Minister, but also to clearly define the orientation and implementation plan of the sector in the digital transformation trend, helping the banking sector seize opportunities and overcome the challenges of the Industrial Revolution (IR) 4.0. Under the favorable momentum of policies, politics and society, along with the orientation of positioning "As the No. 1 digital bank in Vietnam", this is a great opportunity for TPBank to have a solid foundation and great support from the State.

In the period of 2022-2025, along with the control of the COVID-19 pandemic and the gradual stabilization of the market economy, economic sectors are gradually recovering and developing strongly. The banking sector has also had new opportunities when products and services are stimulated with rapid growth. For example, the reopening of international flights and the stimulation of foreign tourism have contributed to promoting and increasing new opportunities for international payments and supporting products and services.

Besides the above advantages and opportunities, digital transformation and digital banking development at banks in general and TPBank in particular still face many challenges and difficulties.

Firstly, the large investment costs for digital technology require TPBank to always have plans and budgets for operational implementation. The nature of frequent improvements, maintenance, system upgrades, updates and technology replacement of the digital transformation process is considered the biggest challenge for the implementation process of a young banking system like TPBank.

Second, the staff and IT resources. Along with the innovation and change of technology in banking operations, the IT human resource factor plays an extremely important role. According to Mr. Tran Anh Tuan, Deputy Director of the Institute of International Economic Research and Training: "In the period of 2020-2025, the demand for high-level human resources in the banking and finance sector will increase by 20% per year." TPBank faces the challenge of building a team of human resources to build and develop digital banking. In addition, TPBank staff also need to improve their expertise, professionalism and have certain understanding in using and operating technology in their work to adapt well and promptly to the general movement of TPBank in the future.

Third, the difficulty and challenge for TPBank in the period of 2022-2025 is the issue of customer information security. In addition to many utilities and conveniences brought to customers in the TPBank digital banking system, TPBank also faces many challenges with the issue of customer personal information security to minimize the leakage of personal information, while minimizing the risk of fraud from some individuals and organizations in order to seize assets. In addition to developing and building a more optimal information security system, TPBank also needs to have practical activities to guide customers to use banking services with maximum security.

Fourth, customers' habit of making direct transactions at the bank is still common, so this is also a big challenge for TPBank in the coming period to position and direct customers closer to digital banking products and services, change customer usage behavior, and at the same time, have campaigns to mobilize, advise, and propagate to customers so that customers have a correct and complete understanding of the bank's transformation in the way it provides and uses services.

3.1.2. Marketing activity orientation at Tien Phong Commercial Joint Stock Bank

In the period of 2022-2025, TPBank's marketing activities will still revolve around the top goal: "Focusing on investing in technology development" to affirm its position as "Vietnam's No. 1 Digital Bank".

TPBank maintains its development orientation to become "Vietnam's No. 1 Digital Bank".

TPBank continues to strengthen and develop the LiveBank automatic banking system, constantly updating digital banking products and services to affirm its competitive advantage and differentiation in the financial market.

- TPBank aims to become the leading bank in terms of customer satisfaction and best risk management.

With the goal of gradually increasing the number and sales of customers, focusing on target customers, TPBank continues to promote product diversification, develop advanced banking services, and manage risks according to international standards based on modern technology to maximally satisfy customer needs.

- TPBank aims to become the leading bank in terms of human resource quality.

TPBank's marketing activities focus on human resource development through innovation in human resource recruitment; building potential human resources through recruitment programs in conjunction with leading universities in the country; promoting training and staff rotation; enhancing cohesion and cooperation between departments, divisions and staff in the bank.

3.2. Some solutions to promote marketing activities at Tien Phong Commercial Joint Stock Bank in the coming time

3.2.1. Solutions related to market research and target market selection

- Market research solutions:

Continue to research the market according to developing economic regions, business products, customer segments by debt group, by agency area, by currency, by loan type, by economic sector. Focus on expanding the market to business households to expand and diversify the types of banking services.

- Solution for selecting target market: Focus on selecting and maximizing potential customers who are young customers, promoting market survey plans

target market to better understand customer needs. In addition, TPBank needs to research to develop appropriate policies for products and services.

3.2.2. Product and service solutions

As analyzed in chapter 2 on TPBank's product and service policies, it shows the popularity of products and services provided to the market, the Livebank 24/7 automatic transaction point system also has a shortage of online support staff, and direct operations on the machine are slow due to the connection, causing customers to have to wait a long time. The only difference mentioned is the use of technology in the process of using and experiencing the product. For product solutions in the coming period, the business division in coordination with TPBank's marketing department needs to develop more solutions to improve the quality of products and services and increase competitive advantages in the market by:

- Focus on building a program to evaluate and measure product and service quality.

- Diversify products, flexibly adjust according to customer needs; research and add products for individual customers who are individual businesses.

- Create a unique image value for customers, demonstrating the class of loyal customers.

- Design products suitable for different customer groups.

- Add online support staff for Livebank 24/7 automatic transaction points, regularly maintain and upgrade the information technology system to avoid network congestion, loss of connection, and inability to contact consultants during the process of customers making online transactions and transactions at 24/7 automatic transaction points.

3.2.3. Price solution - Price.

TPBank needs to be careful when building a reasonable pricing policy for products and services because today, most customers can compare product and service prices themselves.

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