Services Marketing 2003

8/12/2019 Services Marketing 2003

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Service opportunities at Trade and Development bank

Prepared by:Enkhuulen GantumurSaruulzaya Bayarsaikhan

Enkhjin Erdene-Ochir


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AgendaIntroductionBackgroundTarget market segmentation

Nature of services Analysis of key marketingissues/challengesSWOT analysis

7ps of service marketing mix ConclusionRecommendations


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IntroductionThis presentation focuses on the localleading bank TDB. The banking service isintangible and hard to evaluate forcustomers which of the commercial banks

are the best one.Therefore concentration is on TDBsstrategies, services they offer and the stepshow they become the best commercialbank among its competitorsIntangible nature of banking serviceDifferentiating and positioning


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Background of TDBMEstablished in October 1990The oldest and one of the largest bank inMongoliaPrides itself for its leading position in theuniversal banking offering a full range ofservices70 types of international standardbanking products750 highly qualified staff providingpersonal attention and user friendlybanking services through a network of 41branches and settlement centers, 60

ATMs, 1300 POS terminals, Internetbanking and SMS banking throughout thecountry, and utilizes same technology astheir international partners. In 2004, TDB was the first bank in thecountry to receive the investment fromthe Asian Development Bank andInternational Finance Corporation totalingUSD 11 million (shares and loan)First Mongolian bank to begin treasuryactivities on the international foreignexchange and money markets.


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Target market segmentationPrimary target markets : Individuals, Largecorporations, Small Medium enterprises and otherbusiness sectorsTDB positioning: Leading universal Bank in Mongoliawith a strong international presence dedicated,trusted and responsible financial partner helping allits clients in their pursuit of sustainable financial wellbeing.Competitive advantage : TDB has been continuouslygrowing its assets and provides wide range of

services with the high guarantee. It has bestreputation among the financial sectors and in itsindustry and has been awarded from 2001 to 2009.(Detailed in background section)


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Nature and type of services:Current AccountPayment Card Cool Saving Cheque ServiceCool Lending Bank Guarantee International Transfer

Electronic Banking Service SMS bankingBill paymentCredit Line Collection Service Children's Saving Account Deposit Box Service Money Gram Saving Collateral Loan


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SWOT analysisStrengths

Number 1 bank in MongoliaHave 40 correspondent accounts with the worlds major clearing bank Latest machinery installedIncluded in the Global Trade Finance ProgramMost reliable banking sector in domestic marketsHas good reputation based on its experiences and past performancesNo failure experienced during its operations from 1990s

Weaknesses Has less customers compared to Khan bank and Golomt bankNot enough branches in the city

A lack of communication skills of employeesOverloaded queue even they leveraged they queuing machine

Opportunities Increase the number of branches with 24-hour serviceIncrease number of branchesIncrease number of customer

Threats increasing interest ratesRising cost of wagesLarge and increasing competition


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Issues and challengesThe competitive advantage:

objectives set,present market performance,product/services offered,customer relationship,service performance,employees productivity.

As domestic market has only 14 banks customers have only thin option to choose thebank which is most reliable and accessible. TDB is facing lack of employee communication with the customers and the knowledgesharing of employees. As it is a large banking sector it is hard for employees to knowwho the loyal and major customers are and who the new customers are. The another marketing challenge is customers who are not familiar with TDB bankingservice are confused to choose which service suits them best because there are widerange of services to choose unlike other competitors whose services areunderstandable and short.

Another challenge company is facing is over queue of its branches.TDB is facing the competition from small exchange centers that are buying foreignmoney in a higher price and selling it in a lower price which made the banks exchangecenter to change its exchange rates.


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7ps of service marketing Product elements

For TDB bank the core products are savings and debit accounts and loans. The supplementary services are shown indetails in 2.1. Trade development bank is in its maturity level of a lifecycle because its been for 20 more years inMongolian market.

Place and Time

Trade development bank has 31 branches and settlement centers, 60 ATMs, 1300 Point of sales terminals, internetbanking and SMS banking throughout the country. (most of branches working business hrs and very few 24 hr ones)

Price

For any servicing business it is hard to evaluate the price of its products. To open up a current account individuals need topay 5000 MNT, for Corporations 20,000 MNT. Withdraw foreign currencies form current account free of charges, USD0.25%, EUR 0.3 %, CNY 0.15%, RUB and KRW 0.4 % other currencies 1% , bill payments 500 MNT TUG each,transaction

Promotion

CSR activities: Trade development Banks has given 50 Million MNT to National Emergency Management Agency due toweather extremes causing losses of livestock back in 2009. This is one of the corporate social responsibilities of the bank

which is improving their reputation on society. Back in 2008 TDB sponsored TV transmission of Beijing Olympics andEuro- 2008. The recent years bank has been sponsoring lots of TV programs the Duulian Childrens footballchampionship endorsed by the president of Mongolia.Heavy advertisement campaigns via traditional and electronic meansDiscounts and premium services to its core corporate clients


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7ps of service marketing cont Physical evidence

The bank has 31 branches throughout the country, and the branches which are locatedin the highly business area are concern about their environments. Every branch has itsformal environment and the waiting areas provided by the brochures and introductionsthat are provided by the bank and new offerings.

People

Provides training program twice a year, they are focusing on continuing professionaldevelopment where employees see their professional learning as a lifelong process oftraining and development. TDBs human resource department is working on recruitingits employees and reducing the turnover of employees because of the trainingprograms and the knowledge or experiences of its employees.

Process

TDB keeps connection with its customers is one of the main operative goals, makingsure the money is transferred, the payment card is working, the cheque is issued to theright person, the withdrawals are available in every locations and the loan is paid backon time


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Conclusion As of TDB is the best financial sector in Mongolian marketit has to maintain its current success and continuouslyexpand its services beating up the competitors. ForMongolian market we have only 14 banks and thefinancial sector is very thin these banks are interrelatedand affecting each others operations to win thecustomers attention. So the biggest players such asGolomt bank, Khaan Bank are focusing more on itscustomer service and one on one communication showingempathy to each customer TDB has to improve itscustomer communication of its front line employees andresponsiveness of complaints would be preferred. AsTDBs management system is centralized where topmanagement makes all the decision they should beadaptable and flexible in decision making process wherecertain changes need to be made.


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RecommendationsProvide training for the employeesGet students attention and provide themsufficient understanding about bankingservicesIncrease number of branches with 24-hourserviceFocus more on advertising, reaching thepotential customers attention

Show more empathy to each customersQuick responsiveness to complaints orsuggested loans


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Thank you for your time

Documents

Services Marketing 2003