Third , focus on designing transaction offices located in beautiful, spacious locations with modern equipment systems, attracting customers in the city center and densely populated districts. And is one of the 4 leading branches in developing the transaction office network system in Binh Dinh province after Agribank and Vietcombank.
Fourth , customer development marketing has been focused on and thoroughly implemented in the ideology of each QHKHCN officer. Being implemented uniformly and quickly, it has soon brought the image of the Branch in particular and of Vietinbank closer to the majority of people, creating favorable conditions for the Branch to develop the capital mobilization market through deposits and savings and other accompanying products and services, not only increasing income, attracting more potential customers, expanding the service market but also enhancing the competitiveness of the Branch in the area.
Sixth , the number of depositing customers increased significantly, this customer base is
Stability creates good conditions for branches to exploit new customers.
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Seventh , capital mobilization turnover and income are increasing in total branch income.
To achieve the above achievements, in general, the branch has received large investments in both facilities and technology from Vietinbank, supporting the process of granting credit and managing credit conveniently, effectively and safely. At the same time, the branch owns a team of professional staff who are basically qualified and well-trained. The branch has focused on sending individual customer service staff to participate in training courses on situation handling skills, information processing, and sales skills to best serve and gain high trust from customers. "Choosing the right person to entrust gold" is a favorable condition for the branch to exploit maximum benefits for itself.
2.4.2. Limitations
Firstly, market research has not received due attention.
Although there have been gradual improvements in product research investment and completion,
However, due to the fact that market research and customer segmentation have not been clearly defined and thoroughly researched, the product portfolio that HDV has introduced has not created a prominent difference and market segmentation, nor has it fully developed to cover market demand. Specifically as follows:
- That is to determine what the target market is, from there to propose appropriate policies to bring products to customers who really have needs at the lowest cost; create a difference in Vietinbank Binh Dinh products to attract service consumers.
- Not yet organized a systematic market research investigation based on multi-dimensional information collection, exploring the needs and satisfaction of customers with the products and services provided by the bank.
Second, the capital mobilization product is not yet outstanding.
Meanwhile, Vietinbank Binh Dinh's product portfolio is still largely consistent with some basic traditional product groups such as receiving deposits, lending, money transfer, card payment, etc. The products offered are applied to both individual and corporate customers, and have not created differentiated products for each separate customer group. In addition, Vietinbank Binh Dinh has not yet clearly positioned Vietinbank's products in the market. Customers do not have an idea of the features, differences, utilities or benefits that they need, they get when using the services of Vietinbank Binh Dinh compared to other commercial banks, it includes additional components such as warranty and other after-sales services. In the context of fierce competition in the market for products and services between banks, banks always offer similar products, creating relative differences in products and services is an opportunity for customers to recognize and choose the most suitable product for themselves.
Third, the distribution channel system is thin and inconvenient.
The survey results achieved an average score of 2.92, as the branch only focused on
urban area, not yet expanded to districts, not yet expanded to customers of all economic sectors, only focusing on a number of businesses and customers in the city.
Fourth , promotion and advertising work has not received due attention.
The form of advertising is still passive, not really creative, advertising on a small scale, not creating an impression on customers (average score is 2.55). Advertisements about deposit products, preferential programs for customers who deposit money and save money have not been widely promoted, sometimes customers only know through word of mouth or through billboards placed at bank headquarters.
2.4.3. Causes of existing problems and limitations
In the context of the economy's internal capital resources not being abundant, commercial banks are promoting the development of retail banking services, the competition between commercial banks in the area in capital mobilization is increasingly fierce. In order for capital mobilization marketing to perform its role and tasks well, it is necessary to seriously consider the subjective and objective causes to have effective solutions for marketing work in the coming time.
2.4.3.1. Subjective causes
- The branch has not properly assessed the role and function of capital mobilization marketing, therefore has not paid attention to directing and investing appropriately in this work. This is reflected in the organization stage, there is no department/division or individual in charge of marketing to research and analyze market demand, select potential target market segments, thereby building a data system to serve the work of planning strategies and capital mobilization marketing strategies. In fact, each employee of Vietinbank Binh Dinh is both a marketer and a salesperson in the traditional way of promoting and selling what Vietinbank has, not bringing what each customer group needs.
- Vietinbank's operating mechanism has not encouraged the initiative and creativity of branches. Normally, the Head Office organizes research and creates new
New products are applied in the whole system, the branches supply those products to the market with common characteristics, the level of use of products and services depends on the reception of customers in each different location. This is also the common situation of other commercial banks in Vietnam. Although the bank headquarters themselves have specialized marketing departments, because these departments operate in the banking sector, it is difficult to have an independent and objective view of the market as well as the expectations of customers like market research companies - those who do not operate in the banking sector, are not influenced by the views and thinking of bankers. Meanwhile, market research requires an objective and accurate view of the market through collecting customer opinions, thereby being able to have strategies to satisfy customers' desires to the maximum.
- The branch is lacking human resources because Vietinbank's labor quota mechanism is calculated based on the average labor productivity of the entire system, and branches do not have the right to take the initiative in the number of human resources. In fact, most branches have quite low quotas but are assigned large targets. Due to the pressure of targets from Vietinbank, the branch often focuses on the growth of the unit, focusing on completing planned targets rather than focusing on developing new, key services. Sales staff mainly spend time developing traditional products and new products, not having enough time for market research, finding solutions to cross-sell products, so they cannot exploit the diversity of retail products and services that Vietinbank is applying to increase the utility of loan products, guarantees, ... to support capital mobilization products.
Lack of human resources is also the reason for limiting the expansion of the branch's distribution channel; the sales process is only carried out in some stages, customer care after selling capital mobilization products and services is therefore not regular and unprofessional, so customer retention is not good.
In this regard, Vietinbank needs to make a comprehensive assessment of the entire system's human resource organization to have appropriate human resource policies, avoiding the situation of chasing growth without sustainable investment.
2.4.3.2. Objective causes
Besides subjective causes, the limitations in capital mobilization marketing of Vietinbank Binh Dinh Branch are also affected by some objective causes, which are:
- About the economic environment
+ Binh Dinh is a locality with great potential for socio-economic development, but it is only in the initial stage to develop that potential. Industrial parks, economic zones, and project programs are in the investment calling period, have not created social products, and have not created many jobs for workers. Although there has been significant growth in recent years, Binh Dinh is still a locality with an underdeveloped economy, low per capita income, and a poverty rate higher than the national average. Although Quy Nhon is the central city of the province, nearly 70% of the population is still in rural areas with unstable income due to the severe impact of natural disasters, epidemics, and agricultural product consumption markets.
+ Some key economic programs such as the offshore fishing program have initially revealed shortcomings in management and capital use, leading to inefficiency and causing losses to both the people and the bank.
+ Enterprises are always in a state of capital shortage and facing many difficulties in production and business. Idle capital in the economy is not much, small and unstable.
- About social environment
+ The habit of buying and storing gold jewelry is quite popular among people. The mentality of using cash is still deeply ingrained in people's habits. A part of the rural population still does not really trust storing money instead of storing gold, so they still save to buy gold to keep in the cabinet, causing a waste of capital. The real estate market is recovering rapidly, especially in areas where the State has invested in social infrastructure, which has also caused a large part of the population to invest money in real estate with the expectation of earning large profits instead of depositing in banks with interest rates of 5-7% / year.
+ The State Bank's policy of reducing interest rates in recent years, along with many cases of money loss due to management of the banking system, the risk of losing money in accounts due to technological crime factors that have not been handled promptly and reasonably by some banks; the deposit insurance level for each customer is currently too low,... are the reasons why people are worried when depositing money in banks. The consumer goods market with installment payment policies also encourages people to consume more than their financial capacity...
- About the financial market
+ The increasing appearance of credit institutions, financial companies, and technology companies has created a more fierce and complex competitive environment than before. Some joint stock commercial banks participate in the market only to mobilize capital to invest elsewhere, willing to pay higher capital usage fees, creating a shift in capital mobilization sources between commercial banks. Meanwhile, the difference in products has not been focused on by commercial banks; credit institutions and financial companies are still oriented towards independence, not aiming for financial linkage to complement and exploit each other's advantages under permitted conditions.
+ Due to the characteristics of the organizational model and operation of the banking system in general, and the Vietnam Joint Stock Commercial Bank for Industry and Trade in particular, all activities of the branches are basically coordinated from the Head Office, including marketing activities. Therefore, the division of marketing tasks between the Head Office and the branches is not clear, the awareness of marketing work of the branches is not complete, so the implementation is still confusing.
CHAPTER 3. SOLUTIONS TO IMPROVE MARKETING POLICY IN CAPITAL MOBILIZATION AT JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE, BINH DINH BRANCH IN THE COMING TIME
3.1. Marketing policy orientation of Joint Stock Commercial Bank for Industry and Trade - Binh Dinh Branch in the coming time
3.1.1. Development orientation of Joint Stock Commercial Bank for Industry and Trade - Binh Dinh Branch
To become a leading bank in the region by improving competitiveness, management capacity, developing strongly in all aspects of operations, expanding the network to reach regional and international levels, becoming an important bridge in promoting strategic economic relations between Vietnam and countries around the world. At the same time, VietinBank strives to enhance its brand value domestically and internationally.
VietinBank clearly identifies that transforming its business model and sales methods is a breakthrough factor to ensure sustainable growth and enhance the bank's competitiveness in the face of the integration wave that is forecast to become increasingly stronger in the coming time. At the same time, VietinBank flexibly and promptly grasps financial trends of developed economies in the region and the world along with the development of technology in the Finance - Banking industry to promote modernization, accelerate digital banking activities, develop modern products and services with high technology content, meeting market demand.
Continue to affirm its position as a leading bank in fulfilling its obligations to the community and social security work, accompanying businesses in implementing green projects and environmental protection projects, while promoting investment in education, healthcare, and infrastructure towards the goal of sustainable development, demonstrating the philosophy of "Improving the value of life".
3.1.2. Orientation to perfect the marketing policy of Joint Stock Commercial Bank for Industry and Trade - Binh Dinh Branch
Sticking to the goals and orientations for perfecting Vietinbank's marketing policy and the socio-economic development plan of Binh Dinh province, Vietinbank Binh Dinh strives to become the leading retail bank in Binh Dinh province, with diversified operations, rich products and services, diverse distribution channels, based on modern industry, safe and effective business, sustainable growth with specific goals:
- Develop a diverse and multi-utility banking service system oriented to the needs of the economy. Prioritize the comprehensive development of full-package financial services to serve small and medium-sized enterprises in the private and foreign-invested economic sectors, especially enterprises concentrated in industrial zones in some industries with development potential. Focus on developing investment banking services, corporate financial services through investment fund management activities, restructuring and business acquisitions, and capital market services.
- Continue to improve the quality and efficiency of traditional banking services, while quickly approaching modern banking activities with high technology content.
- Develop a diverse distribution channel system, increase access to banking services for all people, focusing on promoting the provision of diverse, quality and competitive financial services for urban residential customers, especially middle and high income, young and successful customer groups, who have demands and are adaptable to financial banking services.
- Strengthening the connection and cooperation with credit institutions and non-credit organizations in market research and product development, technology transfer, and providing new banking services according to market demand.
- Make a difference through the efficiency of business processes, the richness of products and services, the professionalism and friendliness of the Bank's staff. Develop sustainable growth, a team of staff with high professional ethics and expertise.