Communication Policy, Banking Service Promotion

branch to make deposit transactions. However, in reality, the Branch flexibly adds a transaction method channel " receive money at home " through the Branch's staff for large customers, VIP customers when customers need to receive money at home to prioritize customers, to improve convenience for customers, maintain relationships with customers to maintain HDV sales.

* Physical factors

Transactions on the network environment: Scientific interface, easy to see, easy to understand; fast access speed; fast and accurate transaction processing; customer information security; The bank is responsible for handling incidents and technological risks for customers.

Transactions with ATMs: Always have money in the machine; money in full denomination; easy operation, easy to understand language; security guaranteed; make commitments and promptly handle technical problems; …

In addition to investing in equipment at transaction offices, ATMs, or POS... Vietinbank also invests in additional equipment to perform transaction features for customers using personal devices such as: phones, Ipads, Iphones... which can save time and costs for customers and help customers easily control their personal accounts and when problems arise, they can immediately contact the bank and solving those problems will become easier and faster.

Currently, the ATM system of Vietnamese banks in general and Vietinbank Binh Dinh branch in particular still has many shortcomings such as: ATM errors, online transactions often crash, run out of money, ... causing difficulties for customers, reducing customer confidence. At the same time, due to work pressure, due to management not being really strict, the interactive environment is not really "perfect" for customers. There are still complaints and grievances from customers during transactions with the bank, such as: Slow operations, errors in interest calculation, unprofessionalism, Therefore, Vietinbank Binh Dinh branch needs to regularly monitor and check the electronic distribution system such as: ATMs, POS machines, ... to detect and immediately fix problems to ensure these machines always operate 24/24 hours.

2.2.5. Communication policy, promotion of banking services

* Communication level: Communication, advertising and posting activities are assigned to specialized units for events and service advertising undertaken by the Communication Department, with the main forms being mass media such as television stations, local newspapers, posters, image promotion via the internet in many forms: Onsite, Support online, Public Relation (PR) online, printing banners, X-shaped stands hanging at transaction points, advertising on LED screens at branch offices and computer screens, advertising via electronic screens at transaction offices, ATM screens, machine screens, service advertising via customer emails, distributing service flyers... to social media applications (social networks) have opened up many ways to approach potential customers for banks today.

* Marketing work: Attention has been paid and thoroughly implemented to each officer in the HDV department, to find customers, contact customers directly to introduce products or through associated partners, socio-economic organizations in the province, to introduce products. According to the survey results, the rate of customers knowing about HDV products through bank staff introduction and consultation is not high (32% _ table 2.13), mainly customers know about the Branch and come by themselves or through referrals, proving that the branch is still passive in finding new customers.

* Promotional programs: Vietinbank Binh Dinh branch has implemented promotional programs when customers come to deposit money or save on occasions such as New Year's Eve, April 30th, holidays... during the year, and also has lucky draw programs or gift programs when customers come to deposit money at the branch.

* Customer care: customer service hotline is handled by the Customer Care Center - BIDV Contact Center via hotline 19009247 or 0422200588, or send an email to bidv247@bidv.com.vn, all customer comments will be answered by the Center's staff 24/7 anytime, anywhere with the motto "Dedicated sharing - Accumulating trust".

information”. In addition, the Branch regularly contacts customers (providing information and introducing new products and services, etc.), listening to customers' feedback. However, due to limited funding and the number of staff in the Customer Relations Department who have to take on many tasks, the organization of meetings with customers, monitoring and care is somewhat limited.

Table 2.9: Density of advertising and service promotion activities of Vietinbank Binh Dinh branch in the period 2015-2017

Work

Average density	Note
Post news and articles on newspapers and radio	2.3 posts/month	Including both written and visual media
Set identity image	100% transaction points, ATM	Identification image of Vietinbank
Flyers, posters	1 batch/quarter	When there is a conference, there is a new product, Promotional program,…
Customer Conference	01 time/year	Combine gifts at the beginning of the year
Gratitude program client	01 time/year	Year-end gift combination
Social charity activities	1.5 times/quarter	Award scholarships, build charity houses, disaster relief…

Maybe you are interested!

(Source: Accounting Department of Vietinbank Binh Dinh Branch)

In which, social networking applications are increasingly used by bank employees to expand relationships with the public on the internet environment, overcome the limitations of time and space, and also as a way to lead customers to approach and become familiar with electronic banking services. Currently, Vietinbank Binh Dinh branch has created accounts on social media such as: Google Plus, Twitter, YouTube ... to update customers on incentives, discounts, discounts, promotional programs as a new form of dissemination and approach to its image to customers. Penetrate social media. Bank employees who were previously familiar with sales targets on credit growth, ATM cards, international credit cards ... now have another interesting target: the target of the number of people "responding", sharing the same opinion with a specific product or with the bank's social media page.

In addition, the branch also combines promotional measures such as free card opening, fee reduction for students, fee reduction for businesses paying salaries through card accounts, lucky draw card opening program, saving to win cars, luxury motorbikes, modern TVs, cash rewards, gold... Normally, promotional activities are carried out on holidays, New Year, founding anniversaries or according to the general program of the Headquarters, so they are less innovative and new.

* Customer relations: along with a number of programs that every year the Branch cooperates with the Parent Bank (Head Office) to organize annual conferences, gratitude programs, congratulatory calls and send gifts to VIP customers who deposit over 2 billion VND/year and traditional customers (2 years or more) depositing from 1 billion or more, while regular customers only receive congratulatory messages, holiday greetings for birthdays, International Women's Day March 8, Teachers' Day November 20... specifically according to Table 2.11 as follows:

Table 2.10: Customer relationship activities of Vietinbank Binh Dinh branch in the period 2015-2017

Unit: Billion VND

Year

2015	2016	2017	Rate of increase, decrease (%)		Average growth rate (%)
			2016/	2017/
			2015	2016
Total number of participants	1,856	1,927	2,032	3.83	5.45	4.64
Number of gifts	1,912	2,041	2,133	6.75	4.51	5.63
Total cost	3,021	3,306	3,583	9.43	8.38	8.91

(Source: Accounting Department of Vietinbank Binh Dinh Branch)

2.2.6. Capital mobilization results of Joint Stock Commercial Bank for Industry and Trade - Binh Dinh Branch

The period 2015-2017 is the period when the economy still faces many difficulties, the production and business activities of many enterprises, many large enterprises have not really recovered and stabilized. In that context, Vietinbank Binh Dinh branch has implemented many appropriate solutions, supporting customers to overcome difficulties, strongly promoting

Business activities achieved remarkable results through basic indicators.

Table 2.11 below:

Table 2.11: Performance results of Vietinbank Binh Dinh branch in the period 2015-2017

Unit: Billion VND

Target	2015	2016	2017	Rate of increase, decrease (%)		Average increase and decrease speed army (%)
Target	2015	2016	2017	2016/ 2015	2017/ 2016	Average increase and decrease speed army (%)
1	Total mobilized capital	1,892	2,291	2,608	21.1	13.8	17.45
-	Average capital mobilization army 01 worker	16.17	19.25	21.38	19.0	11.1	15.05
2	Total outstanding debt	2,236	2,644	3,935	18.2	48.8	33.5
-	Average loan head	19.11	22.22	32.25	16.3	45.1	30.7
-	Bad debt ratio/total outstanding	1.16%	0.82%	0.68%	-29.3	-17.1	-23.2
3	Total income	568.36	622.3	753.21	9.5	21.0	15.25
-	Income from operations credit	349.6	391.92	463.37	12.1	18.2	15.15
-	Income from services bank, other income	11.76	13.21	21.84	12.3	65.3	38.8
4	Total cost	553.01	577.53	704.7	4.4	22.0	13.2
5	Profit	15.35	44.77	40.51	191.7	-9.5	91.1

(Source: Business Results Report of the General Department of Vietinbank Binh Dinh Branch) Capital mobilization is one of the main areas of operation of a commercial bank, and is an indicator used to evaluate the level of completion of the annual business tasks of the Branch. Determining the importance of capital mobilization, the Branch always focuses and pays great attention, offers positive solutions, approaches to mobilize capital from many sources of economic organizations and residents, bringing growth results.

Annually achieved high results, improving the branch's market share in the area.

Average growth rate of mobilized capital in the last 3 years

17.5%/year. By December 31, 2017, mobilized capital reached 2,608 billion VND, reaching 95% of the yearly plan, up 13.8% compared to 2016. The average mobilized capital per employee also increased significantly, from 16.7 billion to 21.38 billion/employee (up 28%).

In the context of many economic difficulties, businesses in Binh Dinh province are operating inefficiently, the banking system cannot avoid the general impact of the economy. However, with the orientation of closely following the market, complying with the direction and regulations of the Vietnam Joint Stock Commercial Bank for Industry and Trade, the regulations of the Industry, in the spirit of support, sharing and creating all favorable conditions for businesses and people to access bank capital. The average growth rate of outstanding loans in 3 years reached 26%/year. Outstanding loans to the economy on December 31, 2017 reached 3,935 billion VND, exceeding the plan, increasing 75.98% compared to 2015.

In 2015, the branch's profit only reached 15.35 billion VND, the average profit per employee was only 130 million VND/employee, but in 2017 it increased to 40.51 billion VND, reaching an average of 400 million VND/employee, the average profit growth rate in the period 2015-2017 reached over 88%. In 2017, Vietinbank Binh Dinh branch continued to make a profit, however, the profit decreased compared to 2016, showing that business efficiency was not high, there were many reasons, but the cost of paying interest on loans to the Head Office accounted for a large proportion of the total cost, which was an important reason.

While total lending and outstanding loans of Vietinbank Binh Dinh both increased sharply compared to the previous year (up 48.5%), the difference between income and expenses only increased by 8.3%. The reason for this situation is primarily due to the high average input interest rate, credit activities in 2017 had many fluctuations: Vietinbank Binh Dinh reduced lending interest rates for many programs to accompany businesses according to the policy of the Government and the Provincial People's Committee; some credit programs exposed risks such as the credit program under Decree 67 of the Government... so the risk provision cost is large. This shows that for commercial banks whose main market share is credit business, the risk is always high.

Service income reached 21.84 VND, accounting for only 2.9% of total income, extremely low.

is also small compared to the scale of operations of Vietinbank Binh Dinh. In an increasingly developing economy, this is a potential market that banks need to target to diversify risks and is also a way to maximize the exploitation of idle money sources in society.

Table 2.12: Capital mobilization results of Vietinbank-Binh Dinh by classification

2015-2017 period

Unit: Billion VND

Target	2015		2016		2017
1	By term	Quantity	Density (%)	Quantity	Density (%)	Quantity	Density (%)
	Non-term deposits	458.30	24.22	502.40	21.93	647.50	24.83
	Short term deposits	1,101.10	58.20	1,423.10	62.12	1,599.60	61.33
	Medium and long term deposits	332.60	17.58	365.50	15.95	360.90	13.84
2	By economic sector
	Organizational deposits	494.55	26.14	596.97	26.06	675.98	25.92
	Personal deposits	1,397.45	73.86	1,694.03	73.94	1,932.02	74.08
	Total	1,892		2,291		2,608

(Source: Business Results Report of General Department of Vietinbank Binh Dinh branch)

In terms of term structure, Vietinbank Binh Dinh's medium and long-term capital mobilization still accounts for a low proportion and has decreased sharply compared to 2017. The proportion of medium and long-term capital mobilization decreased from 17.58% to 13.84%, non-term and short-term capital accounted for the majority with 86.16%, which limited the Branch's initiative in lending. This result is affected by many factors, including the psychological factor of customers expecting interest rates to increase, so they do not deposit medium and long-term capital but only deposit short-term capital to have the opportunity to switch to longer terms when market interest rates increase. In terms of capital mobilization structure, residential deposits account for over 70% and the trend remains stable over the years (73.86% in 2015, increasing to 74.08% in 2017).

As of December 31, 2017, Vietinbank Binh Dinh branch's mobilized capital reached VND 2,608 billion, an increase of 13.83% over the same period in 2016 and an increase of 38% over 2015. Vietinbank Binh Dinh branch's mobilized capital has continuously increased in scale, reaching an average annual growth rate of 17.5%.

2.3. Customer evaluation of marketing policy in capital mobilization at Joint Stock Commercial Bank for Industry and Trade - Binh Dinh Branch

2.3.1. General information of surveyed customers

Among the surveyed customers, there were 105 men, accounting for 56.22%, and 81 women, accounting for 43.78%. Men tend to participate in transactions more than women. Customers under 35 years old accounted for 45.41%, from 36 to 55 years old accounted for 37.3%, and over 55 years old accounted for only 17.3%. This basic information shows that the gender and age structure of customers participating in the survey is quite consistent with the reality at Vietinbank Binh Dinh branch. Specific details are shown in detail in the following table:

Table 2.13: Statistics of surveyed subjects

Information

Classify	Number (people)	Percentage
Sex	Male	104	56.22
	Female	81	43.78
	Total	185	100
Age	From 18-23	23	12.43
	From 23-35	61	32.97
	From 36-55	69	37.30
	Over 55	32	17.30
	Total	185	100

(Source: 2017 survey data, Author's synthesis and analysis)

About customer age : People of different ages will have different psychology and needs and their perception of marketing activities of Vietinbank Binh Dinh branch will also be different. We need to learn and classify customers by age.

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