Contemporary Issues in Marketing Management- Assignment 2

A REPORT ON CONTEMPORARY ISSUE IN MAKETING MANAGEMENT OF
HONGKONG AND SHANGHAI BANKING CORPORATION (HSBC)

Prepared for:
Ms. DotiChee (lecturer)
Unit No 41: Contemporary Issues in Marketing Management
Banking Academy, Hanoi
Submission Date: 10th June, 2013
Number of words:

Prepared by: Maple Group
VuongThiQuynhAnh – Lynn
Nguyen ThiKieuAnh – Snow
Nguyen Phuong Thao – Key
Ngo ThiHuyenTrang
Class: F05A


Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
EXECUTIVE SUMMARY
This report accessing information from library, Internet, especially from the own website of
the company and company materials.This report is to reviewimportance of relationship
marketing in HSBC as well as the benefit of CRM and recommendation for the improvement
of CRM.It presents the reason for the increasing on ethics and social responsibility in
marketing such as CSR, pressure group and broadcast media.
Established in Hong Kong in March 1865 and in Shanghai one month later, The Hongkong
and Shanghai Banking Corporation is the founding and a principal member of the HSBC
Group. It is the Group's flagship company in the Asia-Pacific region and the largest bank
incorporated in Hong Kong. HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. HSBC's international network comprises 6,600 offices in 81

countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the
Middle East and North Africa.
In Viet Nam, HSBC opened its first office in Saigon (now Ho Chi Minh City) in 1870. In
August 1995, HSBC opened a full-service branch in Ho Chi Minh City. HSBC also opened
its second branch in Hanoi and established a representative office in Can Tho City in 2005.
With 140 years of experience in Vietnam, HSBC provides a comprehensive range of banking
services including Retail Banking and Wealth Management, Commercial Banking, Global
Banking, Global Markets, Global Payments and Cash Management, Global Trade and
Receivables Finance and Securities Services. HSBC's history in Vietnam and knowledge of
its culture reflects its commitment to delivering excellence in customer service, every time.
The recommendation for HSBC is that the company should do research about market and its
customers to have deeply understanding about them to meet their requirements. Therefore,
the company will gain more achievements in business operation.

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A

Table of Contents

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
INTRODUCTION
In this module – Contemporary Issues in Marketing Management (CIMM), we have chance
to study more about relationship marketing. Within this report, we will give the knowledge

about ethical and corporate social responsibility, the role of marketing in non-traditional
contexts in the case HSBC. This report has ten main contents, included:
•

Describe the benefits of customer relationship management in a selected organization

•

Make justified recommendations for the improvement in customer relationship
management for a selected organization

•

Carry out a stakeholder analysis for a voluntary sector and a public sector
organization

•

Describe the nature of the relationships with customer withintwo selected not-forprofit organizations

•

Compare methods used in marketing within the public, privateand voluntary sectors

•

Explain the key issues involved in marketing in aselected virtual organisation

•

Explain some of the current issues of ethical and social concern to marketers in a
particular industry

•

Explain the concept of CSR with reference to a particular organization

•

Evaluate the role played by a selected pressure group in influencing ethical and social
marketing policies for a selected organization

•

Evaluate the role played by published or broadcast media in influencing ethical and
social marketing policies for a selected organization.

There are many sources of information in this research such as internet, book, article, case
study and some research that study the same topic. In all sources, the main sources of this
research are internet. Especially, information provided in own website of the company HSBC
is very useful for us to carry out the report with various information.
However, because of limitations about time, words, this assignment only gives general
information. The researcher hopes that those disadvantages will be improved in the future.

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A

1.3 Describe the benefits of customer relationship management in a selected
organization
1.3.1 Definition and objectives of CRM
•

Definition: Customer Relationship Management (CRM) is an information
industry term for methodologies, software, and usually internet capabilities
that help an enterprise manage customer relationships in an organized and
efficient manner.

•

Objectives:Using technology to collect, sort, integrate customer data, the
objectives are to understand customer needs better, maintain long-term
customer relationships, be able to pursue a strategy of Relationship Marketing
(Saran, n.d.)

1.3.2 Benefit of CRM in HSBC Bank
Benefits
1. Increase customer satisfaction

Application
By supporting of best communication channel
and CRM tools such as automated social
integration, social search, import social contacts,
status updates…
- Support in receiving feedback and comment
from customer quickly
- HSBC can analyze and keep track of customer
purchase behavior and consumption timing.

 Help HSBC satisfy customer’s requirements,
improve customer relationship.
HSBC can control effectively customer data for
identifying loyalty customer to focus time and
resources for premium customer
 Maintaining existing customer and built trust
in customer’s mind.
- CRM creates two way communications
between the organization and customers and
departments, teams in organization together.
- All information of customer about account is
secure by using pin code, security device…
Make sure customer receive effective
interaction in providing best services.
Collecting customer’s personal information
online and using online services such as internet
banking, mobile banking…
 Reduce cost which related to support and
services customer such as face to face
transaction, labor…

2. Increase customer loyalty

3. Provide better customer services

4. Costs reduction

5

Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
1.4 Make justified recommendations for the improvement in customer relationship
management for a selected organization
1.4.1 Weaknesses and solutions for HSBC Bank
Despite of achieving many success in business by using CRM, HSBC still exist
weaknesses which need to be improved as follows:
Weaknesses
Training: Employees of HSBC are lack
of knowledge about CRM processes,
CRM system, even have not ever known
about concept of CRM while they interact
to CRM tools daily.
Data warehousing: Collecting and
assessing customer information is difficult
and not effective due to customer
information is not stored in a centralized
way. Poor data warehousing system which
lead to losing control the customer
information.
Website: HSBC’s website does not have
private areas for customer where they can
exchange information each other, give
feedback and ideas for improving
company performance.
Survey: HSBC meet problems in
accessing demand of customers due to
lack ofcollecting customers’ requirement
through survey tools.

Solutions
- Set up training schedule for all their
employees
- Hire professionals to train employees
clearly about concepts, objectives,
benefits, methods of CRM
Help them approach CRM system in
most effective way
- Link data warehousing and data
mining to centralize data
- Assess exactly the pros and cons of
the software which stored customer
information before using it.

HSBC can review for creating forum
on website

Using online survey tools such as
survey tool, survey monkey to know
customer’s needs and wants for
satisfying them.

1.4.2 Recommendations for improvement in CRM for HSBC Bank
In order to set up an effective CRM system, HSBC Bank should identify clearly
vision and mission of organization to establish means and resources for effectively
implementing activities which built long term relationship with customers.
Specifically, company should select appropriate technology (CRM process, data
warehousing, websites…) and recruit as well as train the human resources who have
knowledge in using and manage CRM system.

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
 It helps HSBC quickly identify and provide prioritized response to the profitable
customers to reduce costs, increase customer retention, loyalty, and increase
profitability.
2.1 Carry out a stakeholder analysis for a voluntary sector and a public sector
organization
2.1.1 Definition of stakeholder analysis
Stakeholder analysis is an important technique for stakeholder identification and
analyzing their needs. It is used to identify all key (primary and secondary)
stakeholders who have a vested in the issues with which the project is concerned
(Gawler, 2005)
2.1.2 Background and project of chosen voluntary sector and public sector
organization
2.1.2.1 Voluntary sector organization - UNICEF
a)

UNICEF’s background
-

UNICEF stands for United Nations Children’s Fund is a non-profit
organization.

-

It was created by the United Nations General Assembly on December
11th, 1946

-

The purpose of UNICEF is “to provide emergency foods and healthcare
to children in countries that had been devastated by World War II”.
Nowadays, its purpose become bigger is “build a new world where the
children’s rights are realized”

-

The total staff of UNICEF is in over 199 countries and territories and
more than 200 country offices carry out UNICEF’s mission (UNICEF,
n.d.)

b)

Project - UNICEF Tap Project
-

The UNICEF Tap Project is a nationwide campaign that provides clean
water and adequate sanitation to children around the world.

-

It was created in 2007 by a New York City bases advertising/
communications agency called Droga5 and launched on March 22, 2007.

-

The UNICEF Tap Project funds are raised throughout the different

UNICEF programs such as water, hygiene and sanitation programs with
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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
purposes including drilling of wells, the installation of water pumps to
improve children’s lives, help children access to clean water…
(unicefusa, n.d.)
2.1.2.2 Public sector organization - TRANSERCO
a)

TRANSERCO’s Background
-

Corporation Transport Hanoi (TRANSERCO) is formed in 2001 by the
merge of 4 companies: Hanoi Bus Company, Hanoi Southern Passenger
Company, Hanoi touring car Company, and Hanoi Tramcar Company.

-

The purpose of TRANSERCO is “strengthening relations of production
create the opportunities for development of public transport to meet 2025% of the traveling demand of citizens (Transerco, n.d.)

b)

Project - Rapid Bus System Project
-

After years of gestation, the rapid bus project in Hanoi first began in 3

quarter of 2011.

-

Bus is means of transport which can solve 2 major shortcomings of
transportation in Vietnam: pollution and traffic accidents but not many
people use. The reason is that: Moving by bus it takes quite a long time
so this project is created to satisfy demand for rapid transport of high
capacity buses (K.H, 2004)

2.1.3 Identify key stakeholder for voluntary sector and public sector organization

- Managers
- Customers
- Government
2.1.4 The assessment of their interests, needs and expectations for voluntary sector
and public sector organization
2.1.4.1 Voluntary sector organization - UNICEF
Volunteers

Interests
- Join in the UNICEF
Action Center is to be
contributed a small part
for useful society
activities
- Have opportunities for

Needs
They need UNICEF

listen their opinions,
their ideas to improve
organization
performance better

8

Expectations
- Improve healthy lives
for children; help
themhave opportunities to
access to clean water.
- Everyone recognize their
devotion for society


Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A

Donors

Beneficiaries

developing soft skills such
as presentation,
communication skills…
- Support and contribute
to meaning activities of
charity project
- Becoming donors, their

voices become more value
- They have the right to
attend organization’s
meetings
- Have the opportunity to
use clean water to
improve health.

They need to know
information about:
- What and how their
money is used for
- Organization’s society
activities and its large
scale

- Their money can be used
for meaningful activities
- Increase their reputation;
get more benefits from
raising funds for charity.

They need support of
UNICEF in making
their dream is to be used
fresh water come true

Hope that UNICEF can
operate in the future to
have capability for

helping many areas; many
people have the same
situation with them.

2.1.4.2 Public sector organization - TRANSERCO

Customers

Manager

Government

Interests
- Satisfy traveling
demand (quickly and
convenient) of
customers
- Receive high quality
services
- Gain more revenue
from expand bus’s
operation scale.
- Bring benefits for
society and contribute a
part in developing
economy

Many citizens use buses
as a means of
transportation 

government can reduce
problems about
environmental pollution,
traffic jam, traffic
accidents.

Needs
Need TRANSERCO
listen their feedbacks
about service’s quality
and employees’ attitude to
improve it better

Expectations
Expand more rapid bus
system in many areas
across the country

- Need know exactly
about the operation of the
company
- Need positive
contribution of customers
in giving feedback about
service’s quality and share
new ideas to improve,
create project which aim
at bring more benefits for
them.
Need organization have

- Organization become
stronger and stronger
- Bring buses closer to
community.

more positive activities,
project to build beautiful
image of buses in eyes of
foreign people and
Vietnamese people

9

- TRANSERCO will more
and more develop to
contribute more to society
- Improve Vietnam
economy


Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
2.1.5 Prioritize the stakeholder (Power/Interest grid)

•

Volunteers - Keep informed: Volunteers in UNICEF are people work not for profit,
who wants to contribute a small part for meaning society activities. Therefore, they
have low power in organization’s decision making. They only interested in what they

contribute to UNICEF when joining projects.

•

Donors - Manage closely: Donors of UNICEF are organization or individual that
gives a gift for beneficiaries. By their contribution, projects and plans of UNICEF is
implemented so they have high power. Besides, they also high concern about which
purpose their money is used for and scale of UNICEF’s society activities.

•

Beneficiaries - Keep informed:Beneficiaries have low powerbecause they only are
people or other legal entity who receives benefits from donors through UNICEF, they
do not have right to join in any activities of organization. They only high interest in
benefits they are received through projects of UNICEF.

•

Managers - Manage closely: TRANSERCO’s managers are key factor in developing
strategy, project and controlling all activities of the organization. The failure and the
success of the projects depend on their decisions so they have high power. They
interest mainly in plan’s success which will evaluate management’s ability in making
decisions.

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
•

Customers - Manage closely: Customers are people decide whether using services or
not so they have high power. Customers have high interested in project of
TRANSERCO because project derive from their demand and their expectation.

•

Government - Keep satisfy: Government have high power because with changes
from government’s policy also influences significantly on organization’s operation.
However, government does not have interested in carrying out projects of
TRANSERCO.

2.1.6 Stakeholder report
Stakeholders

Volunteers

Voluntary
sector

Donors

Beneficiaries

Managers

Public
sector

Customers

Government

Major
Purposes of
communications
Frequency communications
channels
channels
Information about - Informal meeting Weekly
Report
project
time,
place, - Mailing list
information

activities
of - Websites
help volunteers
organization’s
arrange time for
events
joining.
New project of - Formal meeting
Regularly Introduce donors
UNICEF
Virtual
new ideas about
marketing
charity project 

raise fund for
charity activities
Benefits
they Information
Monthly
Demonstrate
receive
after display:
visual
project process
finish project.
representation of
project process in
public venues
Operation of each - Notice boards
Regularly Receive
data
department
in ICT
tools:
exactly
from
organization
internet…
department,
feedback
from
customers
Services’ quality - Public forum
Daily

Introduce
new
and project aim at Information
project
(Rapid
satisfy
their displays
Bus
System
requirements
- Media releases
Project)
and
- Advertisement
report
project
and
posting:
process
Newspaper,
magazines…
Main concerns of
stakeholders

Level of project’s - Websites
effectiveness
- Media releases
which
bring
benefit

for
community.
11

Quarterly

Demonstrate
activities, project


Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
2.2 Describe the nature of the relationships with customer within two selected not-forprofit organizations
2.2.1 Characteristics and goals of 2 not-for-profit organization
United Nations Children’s
Fund UNICEF

Characteristics

Goals

- UNICEF is a charity group that
is part of the United Nations
- UNICEF works on projects that
help children over 150 countries
around the world. Most of these
projects help to keep children
alive and healthy.
- Money to support UNICEF
projects comes from many

different sources. Many nations
around the world voluntarily give
money to UNICEF… (UNICEF,
n.d.)

Supports child health and
nutrition, clean water and
sanitation, quality basic education
for all boys and girls, and the
protection of children from
violence, exploitation and HIV
(essentialvision, 2012)

International Federation of Red
Cross and Red Crescent
Societies
(IFRC)
- The Federation coordinates
between National Red Cross and
Red Crescent Societies throughout
the world.
- The stated tasks of Federation is
to promote humanitarian principles
and value, support National
Societies,
support
projects
(disaster
response,
disaster

preparedness, and health and
community care)where funds are
available
- The main parts of the budget of
the Federation are funded by
contributions
from
voluntary
donation by National Societies,
revenues from investment, other
organizations, corporations and
individuals (ifrc, n.d.)
Carry out relief operations to assist
victims of disasters, and combines
this with development work to
strengthen the capacities of its
member National Societies (ifrc,
n.d.)

2.2.2 Nature of message in UNICEF and IFRC
Both UNICEF and IFRC also work for humanitarian purposes, however with
different goals, they will have different nature of message.
•

UNICEF: UNICEF is the organization to protect children and create better life
for them
UNICEF’s commitment: Meet the basic needs of children such as survival,
basic education, protectionwith slogan “Children of today - the world of
tomorrow” (UNICEF, n.d.)

•

IFRC: IFRC was established to prevent and alleviate human suffering
IFRC’s commitment:
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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
- Providing assistance without discrimination as to nationality, race, religious
beliefs, class, or political opinions
- Contributing to the maintenance and promotion of human dignity and peace in
the world(ifrc, n.d.)
2.2.3 Method of communication
Stakeholder
Members
and
volunteer

Beneficiaries

Donors

Communication tools
Direct marketing
- Telemarketing
- Text messages
- Letter
Network marketing
- Own website

Interaction marketing
- Social media
- Video clips
- Presentation
- Information display
Network marketing
- Direct mails
- Social network (facebook,
twitter..)
- Own website
Viral marketing

Not-for-profit organization
Provide addresses and contact information
for stakeholders quickly and effectively.

Use social media, video clips, slide
PowerPoint
to
show
campaign’s
information and project process to
community.
- Organization can send, share important
information about project through network
marketing - a quick and cheap way of
communication.
- Meet potential donors by influence of
viral marketing.

2.2.4 Benefits of customers and recognition

Benefits

Recognition

UNICEF
- When taking part in UNICEF’s
activities, customer will have
chance to do charity in over the
world, gain more knowledge in
health
service,
education…
experience for doing in a group.
- Become membership of
UNICEF, customer can receive
benefits.
The recognition of UNICEF as an
organization
support
for
children’s right, basic needs.
Therefore,
with
meaning
activities, huge volunteers, the
success of organization will be
recognized by customers.

13

IRFC
- Having opportunities to take part in
humanitarian activities.
- Learning experiences from National
Red Cross Societies in improving the
lives of vulnerable people worldwide
- Improving skills of teamwork,
knowledge of healthcare…
IFRC activities are recognized by its
customers to be useful and necessary
for promoting humanitarian values,
disaster
responses,
disaster
preparedness; health and community
care so they are willing to join IFRC as
donors, clients, volunteers or staff.


Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
2.2.5 Prioritizing stakeholder’s needs
The Power/Interest grid is a tool which is very helpful in accessing prioritizes
stakeholder’s needs.

•

Donor - Manage Closely

Donor’s needs are prioritized first because they have affected significantly on the success of
project. Their contribution to project is the basis for the project comes into operation so they
have high power. Both non-profit organization satisfy donor’s needs in increasing their
reputation through introducing their company logo on TV advertising…Donors interested in
purpose their money is used for and scale of society activities.
•

Volunteers - Keep informed

Volunteers are people work not for profit, who wants to contribute a small part for meaning
society activities. Therefore, they have low power in organization’s decision making. They
only interested in what they contribute when joining projects.
•

Beneficiaries - Keep informed

Beneficiaries have low powerbecause they only are people or other legal entity who receives
benefits from donors through not-profit organization, they do not have right to join in any
activities of organization. They only high interest in benefits they are received through
projects.

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A

2.3 Compare methods used in marketing within the public, private and voluntary sector

Marketing
concept
Objective
Marketing
perspectiv
e
Marketing
approach
Marketing
method

Private Sector
(HSBC)
Marketing

Public Sector
(TRANSERCO)
Societal marketing

Voluntary Sector
(UNICEF)
Societal marketing

Make a profit

Provide high-quality
transportation systems
- Transactional
marketing

Diverse on no profit
basis
- Relational marketing

- Transaction marketing
- Database marketing

- Interaction marketing
- Network marketing

- Direct marketing
- Mass media
- Social media

- Direct marketing
- Mass media
- Social network

- Relational marketing
- Transactional
marketing
- Transaction marketing
- Database marketing
- Network marketing
- Interaction marketing
- Direct marketing
- Mass media
- Public relation
- Partnership marketing

2.3.1 Marketing concept
•

Private sector: HSBC use marketing concept. Success of HSBC can be
achieved only throughmeet customer’s requirement. Therefore, HSBC use
marketing concept to analyzing consumers’ needs and wants for satisfying
customer’s demand better than their competitors.

•

Public sector and voluntary sector use the same concept is societal
marketing. Voluntary sector are focuses on making money for charitable
activities, it means that they work for not profit and with public sector, money is
not the goal. Therefore, they use societal marketing which use marketing
principles for purposes of societal benefit rather than commercial profit (mba,
2013)

2.3.2 Objective
•

Private sector: HSBC run a business to make a profit, provide best service
banking for customer to maintain existing customers as well as attract new
customer to maximize profit and become the leader in banking sector (Reeher,
2013)

•

Public sector: TRANSERCO aims to provide high-quality transportation
systems and increase service frequency on the model bus lines which bring
benefits for community and not to maximize profits (TRANSERCO, 2013).

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
•

Voluntary sector: The main objectives of UNICEF could be diverse on no
profit basis such as protecting children from violence, exploitation, and abuse;
free, compulsory quality education for all children (UNICEF, 2013).

2.3.3 Marketing perspective
•

Private sector: HSBC use both relational marketing and transactional
marketing. With both perspective, HSBC can seeks to establish long term
relationship and also emphasis is on maximizing the efficiency of sales.

•

Public sector: TRANSERCO use transactional marketing. TRANSERCO can
“make a sale” in short term transactions with buyer. However, besides making
profit, TRANSERCO focus more on bring benefits for community.

•

Voluntary sector: UNICEF use relational marketing. UNICEF can create
long-term relationship with their stakeholders. The fact is that UNICEF havea
interaction with their stakeholder with high frequency such as provide
information about the new project…

2.3.4 Marketing approach
Base on marketing perspective, each sector also have the similarity and differently
marketing approach
•

Private sector: Transaction marketing, Database marketing, Network
marketing, Interaction marketing

•

Public sector: Transaction marketing, Database marketing

•

Voluntary sector: Interaction marketing, Network marketing

2.3.4.1 Relational marketing
Relational
marketing

Private Sector
(HSBC)

Voluntary Sector
(UNICEF)

Public Sector
(TRANSERCO)

Both of them have their own website; expand it to This sector not
attract new member/customer.
apply
this

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
Network
marketing

Interaction
marketing

HSBC:
/>Attract customer by
linking their address to
other bank’s website.

UNICEF:
approach
/>Pay attention by linking
their address to the subwebsite and forum to
attract more members take
part in charities activities.
Both of them have their own website, email.
Media
Social network

Public relation
Call center
Telemarketing

2.3.4.2 Transactional marketing
Transactiona
l marketing

Private Sector
Public Sector
(HSBC)
(TRANSERCO)
Both of them need to collect feedback from customers
by Telemarketing, Direct mail, Email marketing, CRM,
B2B and B2C database to improve and develop
services/product better and better.
HSBC collect data from TRANSERCO receive data
customers by themselves from customer
Both of them try to provide for their customer the best
quality service/product to meet customer’s
satisfaction.
Price
Price
HSBC offer an attractive The price of all transaction
price, it not only need to of TRANSERCO is very
attract customer but also cheap which is suitable for
maintain profit for HSBC customer’s
financial
situation. Besides, there are
discount for student..

Database
marketing

Transaction
marketing

Voluntary Sector
(UNICEF)
This sector not
apply
this
approach

2.3.5 Marketing method
2.3.5.1 Private sector - HSBC
•

Direct marketing
Telemarketing: by using telephone, HSBC can get customer information,
problem, and solve them.
Direct mail:Send information about products and services for customers
regularly

•

Mass media
In Media, HSBC use Press. Press reaches large numbers of people in short
way because people can read anywhere, in the free time, or waiting
something. HSBC adverts in economic and baking categories in many

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
newspapers, especially in economic and banking magazine “Vietnam
economic”, “Kinh ten ngay nay”.
•

Public relations
HSBC sponsored for many events:‘Future First - Local Schemes’,
‘Working Group’, and ‘SaigonCyclo Challenge’.HSBC is now in its fifth
year of sponsoring the HSBC FEI Classics™.

•

Partnership marketing
Base on partnership relation, HSBC can advertise all their product/service
in partner event.For example, HSBC is Official Banking Partner to The
Wimbledon Championships tennis tournament.

2.3.5.2 Public sector - TRANSERCO
•

Direct marketing
Call center:TRANSERCO have a call center to solve the problem of
customer directly. It is: 04.38.43.63.93
Direct selling: TRANSERCO sell product such as bus tickets through
form of sales (face to face) - customer buy products directly through sales
staffs.

•

Mass media
Newspapers:Almost Vietnamese people like to read newspapers.
TRANSERCO adverts in newspaper such as ‘giao thong Viet Nam’.
Radio: Viet Nam has channel for transportation ‘VOV giao thong’ where
share information about all aspects of life, especially updatedlastest
information about traffic situation.

•

Social network: TRANSERCO have a fan page in Facebook name: Hoi
nhungnguoi

di

xe

bus

(the

communication

of

busser)

/>2.3.5.3 Voluntary sector - UNICEF

•

Direct marketing
Email, letter, telephone: Provide useful information about project, events
for stakeholders quickly.

•

Mass media

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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
TV channel, magazine, newspapers:

UNICEF is a voluntary

organizationwhich aims to help and protect children, therefore, their
program advert in many TV channel over the world. Besides, their activity
•

is promoted in first press of many famous magazine and newspapers.
Social network
Link Exchange: In UNICEF website places a link for other website in
exchange for its link on that site.
Facebook: UNICEF use Facebook to share information about project and
event, appeal people in over the world to support and participate in
meaningful charitable activities.

2.4 Explain the key issues involved in marketing in a selected virtual organization
2.4.1 Definition
Electronic commerce (E-commerce) refer to business conducted through the use
of computers, telephones, fax machines, credit cards, automated teller machines
(ATM) or other electronic appliances without the exchange of paper-based
documents. It mainly involves the buying and selling of products and services over
electronic

system

such

as

the

internet

and

other

computer

networks(BusinessDictionary, 2013).
E-marketing refers to the application of marketing principles and techniques via
electronic media and more specifically the internet to help sell goods and services.
These technologies are a valuable complement to traditional marketing methods
(quirk, n.d.)

2.4.2 E-commerce revolution
The three stages in the evolution of e-commerce are innovation, consolidation, and
reinvention.
•

Innovation: It took place from 1995-2000 and was characterized by excitement
and idealistic visions of markets in which quality information was equally
available to both buyers and merchants. However, e-commerce did not fulfill
these visions during its early years.

•

Consolidation: After 2000, e-commerce entered its second stage of
development: consolidation. In this stage, more traditional firms began to use
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Contemporary Issues in Marketing Management – Assignment 2
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the Web to enhance their existing businesses. Less emphasis was placed on
creating new brands.
•

Reinvention: In 2006, though, e-commerce entered its current stage,
reinvention, as social networking and Web 2.0 applications reinvigorated ecommerce and encouraged the development of new business models (edu,
2010)

Nowadays, e-commerce revolution has involved virtually every type of business.
2.4.3 Advantages of E-commerce
By development of E-commerce, it brings many benefits for the business, customers

and society.
•

The business can operate on a global scale: The internet is global. There are no
distance barrier

•

E-commerce will save the company money: The cost of operating online can
be cheaper than having a shop, office. It can automate sales, meaning a
reduction in staff. Advertising is cheaper. Any saving can be passed on to the
customers.

•

The business has no time barriers: An online business is available for
customers 24 hours a day.

•

The customer has greater power: Better buyer decisions, more choice

•

Environmental benefits: The customer stays at home and orders goods from
internet. Goods can be delivered directly from the warehouse. Staff can work
from home (Hutt, n.d.)

2.4.4 Key critical resources issues in HSBC bank
Being a virtual organization, HSBC must face many critical resources issues

•
-

Personnel/ Staff:
Staff have less experiences and knowledge when implement online transaction
such as transfer money, checking account balance… HSBC need have
training program to improve the quality of employees

-

HSBC is lack of human resources who is talent and strong attachment to
organization HSBC need have benefit and reward programs to help
company attract and maintain talent person.
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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
•

Communication: There are many difficult in communication via email due to
using email slang, informalities, lack of face-to-face interaction, and the
absence of body language which lead to misunderstand meaning of sentences
 influences seriously on job effectiveness  HSBC need set up “Formal
Skill Training” Course to develop their skills.

•

Managerial issues
- Time: Due to lack of interaction with employees which lead to waste more

time in non-work activities Applying employee self-motivation, selfdiscipline to enhance and raise awareness of staff
- Security: Many customers do not trust in the internet due to their credit card
detail, personal information can be stolen via online transaction  Build trust
in customer’s mind by security system such as pin code, anti-hacker software…

2.4.5 Benefits, costs and risks

Benefits

Costs

Risks

HSBC
- Reduce advertising cost
- Increase the satisfaction of
customer with the services of HSBC
- Attract new customer
- Easy to manage and keep all
customer’s information
- Over the limit of space and time

Customers
- Saving time
- Convenience
- Easy to implement transaction
- Easy to update HSBC program
such as discount rate, interest for
loyalty customer and promotion
program

- Lower transaction fee
- Staff training cost
- The high cost of accessing internet
- Extra cost for buying protection - Extra deliveryfee for products and
software such as BKAV Pro (Anti- services
virus software), Spyware, Trojan
Horse, etc
- Upgrade software cost to increase
the security of HSBC’s software.
- Can be hacked by hacker
- The security of company is not
- Can have some software problem highPersonal information, credit
such as error of software, virus and card can be stolen
so on.
- The limitation of employees
knowledge in using internet and
software

2.4.6 Relationship between HSBC bank and customers
In “internet” organization, main factor of relationship between HSBC bank and
customer is trust. In other words, online transaction of HSBC is only implemented by
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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
customer belief. Therefore, in order to exist long-term under form of virtual
organization, HSBC need built good relationship with customer. To do that, the
company need identify exactly customer’s requirement to satisfy them, set up
reasonable strategies in providing products and services for customers to maintain

loyalty customer and attract new customers.
2.4.7 E-marketing mix
With virtual organization as HSBC, e-marketing mix is very important, it helps HSBC
increase the level of customer satisfaction with HSBC and attract new customer.
4Ps
Product
Price

Place
Promotio
n

HSBC
HSBC have e-banking services and use ATM to help customer do
transaction more convenience.
The fee of doing transaction online is very cheap. For example, if you use
ATM of HSBC to transfer money from other account of other bank, you
have to pay 3000 VND for every transaction but if you go to the bank and
send money, the fee that you have to pay is about 5% for each transaction
(HSBC, 2013)
Customer can send money, check account balance in everywhere and at
every time they have network or ATM of HSBC.
HSBC use television and internet as main tools to bring their reputation
with customers and help HSBC become more and more popular with
customer.

2.4.8 Trend
In the survey of CitiGroup show that seventy-five percent of those polled said that
they now implement almost all banking transaction from their computer, tablet,
mobile phone and only 9 percent said that they have yet to try it (citigroup, 2013).

This proves that using online banking is so prevalent. It means that the demand for
implement transaction through internet is large so HSBC need concernthis fieldto
improve quality of services better and better to maintain existing customers and
attract new customer.

4.1 Explain some of the current issues of ethical and social concern to marketers in a
particular industry
4.1.1 Definition
Ethical issue: A problem or situation that requires a person or organization to
choose between alternatives that must be evaluated as right (ethical) or wrong
(unethical)(BusinessDictionary, n.d.)
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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
Social issues: are those social conditions identified by scientific inquiry and values
as detrimental to human well-being(Manis, 1976)
4.1.2 The current issues of ethical and social concern to marketer in HSBC
4.1.2.1 Ethical issue
•

Labor standard

If the remuneration policy of company is not good and especially employees is
treat unequally (labor abuse) as well as working environment do not create
conditions for talent employees develop their ability  Talent employees will
leave the company and work for rival company.
Therefore, human resources is always concerned first of HSBC. The key to
succeed in HSBC’s enterprise is not only service and product’s quality but also

creating work environment and enhancing human resources’ role to motivate
their employees:


HSBC always try to create environment where the managers treat
their employees equally, there are no gaps between managers and
employees.



Effort in creating friendly atmosphere to help employees feel
comfortable and encourage employees to speak out their ideas, give
their opinion which create opportunities to promote the capability of
individual and motivate their creativity.



Applying a great deal of welfare policies such as insurance (including
health..), bonus, reward…(HSBC, 2013).

 HSBC implement exactly labor law with their employees, moreover they
create high living standard for employees by welfare policies which help HSBC
keep employees and attract more talent people for company as well as increase
the performance and reputation of company.
•

Lending

Banks play an intermediary role in the economy where have enough ability to
lend individual or organization with big money. However, important issues

which HSBC concern when lend concern money to others; the bank can
indirectly enable and promote wrong actions of illegal company. In other
words, banks’ lending money to evil-doers are facilitating their activities
(fidelisin, n.d.)Before lending, HSBC bank need understand deeply about
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Contemporary Issues in Marketing Management – Assignment 2
Maple Group – F05A
form of business or aims of borrowing from bank  Decrease risks in
approaching and loans as well as implemented enough responsibility with
society of HSBC.
•

Investment

HSBC have a clearly investment policies and all their investment have to
follow this policies. Before HSBC decide invest in a company, HSBC always
concern about many aspects such as type of company product, effect of
company with social, financial situation and so on. In the fact that, HSBC do
not invest in the arm trade company, tobacco manufacturing company,
company that have harmful effect with environment…HSBC cares about
investment policies to earn more money for HSBC, make more profit, reduce
risk and increase the fame of company in social.
4.1.2.2 Social issue
•

Environment

Environment is a key focus amongst ethical banks (in this field specially called

sustainability or green banks). Therefore, HSBC is concerning this and tryingto
be recognized as a green bank by using online banking instead of branch
banking, set up project allow customers to open money market accounts at
online bank, instead of large multi-branch banks… This promote
environmental-friendly practices and reducing the carbon footprint from the
banking activities (Schultz, 2010)
•

Social responsibilities

HSBC is always interested in doing social responsibilities. They donate and
support social enterprise in building house for homeless people, create many
volunteer programs such as teaching for children or take care of old people in
hospital. To care about social responsibilities help HSBC increase the image of
company in customers’ mind and government, raise the level of customer’s
belief with company and make HSBC become more and more close with
customer and social. It can bring more new customer for HSBC.

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Contemporary Issues in Marketing Management – Assignment 2
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4.2 Explain the concept of CSR with reference to HSBC
4.2.1 Definition
•

According to Baker (2004), Corporate Social Responsibility (CSR) is about how
companies manage the business processes to produce an overall positive impact

•

on society.
Other definition for the Social Responsibility, CSR operating a business in a
manner that meets or exceeds the ethical, legal, commercial and public

•

expectations that society has of business(Baker, 2004).
Corporate Social Responsibility includes 3 levels: Social obligation, Social
responsibility, and Social responsiveness.
HSBC achieved all 3 levels
 Social obligation: Meet minimum regulations, do what is required by law, no


more
Social responsibility: Go beyond what is required by law, mitigate negative



effects
Social responsiveness: Practice approach, promote positive change

4.2.1 Concept of CSR in HSBC
Corporate Social Responsibility (CSR) is critical to HSBC’s long-term success in
Viet Nam. CSR is not only about charitable donations, the environment or society,
but also about making decisions that maintain the right balance between the
environment, society and the Bank’s business.

Level of CSR

Investigation

Analysis

People in HSBC just have to work in office time (8 hours per
day) and receive extra- paid for out of hour(HSBC, n.d.)
Social obligation

Social
responsibility

Responsibilitie
s of employees

Monitoring
education

→

It is good ways because it builds up the trust of employee
in HSBC. Moreover, in an internal survey of HSBC staff
conducted in 2008, more than 98% of respondents replied
that they would like to participate in HSBC (HSBC, n.d.).

The main social responsibilities of HSBC is education, they
support education initiative that not only benefit students, but
also society as a whole. There are some activities of HSBC
which they use to support social: Staff volunteering, HSBC
Eco-School Climate Initiative, Early Childhood Development

program.(HSBC, n.d.)
→ Good CSR because HSBC has high awareness about
25