Promotional Activities of Bangladesh Commerce Bank Ltd.
Promotional Activities of Bangladesh Commerce Bank Ltd.
Promotional Activities of Bangladesh Commerce Bank Ltd.
Submitted To
Controller of Examinations
National University Gazipur-1704
Supervised By
Dr. Mohammed Shakhawat Hossain
Principal, Associate Professor
Daffodil Institute of Information and Technology (DIIT)
Submitted By
Nushrat Jaman
Registration No.: 15501003927
Program: BBA, Major in Marketing
Department of Business Administration
Date:
Controller of Examinations
National University,
Gazipur-1704
Subject: Submission of “Internship Report”.
Dear Sir,
I am very pleased to submit my report on an analysis of Promotional Activities of
Bangladesh Commerce Bank. I have prepared this report based on three (03) months
of service experience in Jigatala Branch of Bangladesh Commerce Bank. I have
attempted my best to make it as worthwhile as possible. Despite time constraint and
exhaustive knowledge, I have put my best exertion to represent it in the best way.
Kindly accept my sincerest apology for misrepresentation, if any.
If you have any interrogation about this report kindly feel free to ask me.
I hope your kind judgment to the matter and oblige thereby.
Yours Sincerely,
……………………..
Signature of the Student
Nushrat Jaman
Registration No: 15501003927
Major in Marketing
Session: 2015-2016
Bachelor of Business Administration
Daffodil Institute of IT (DIIT)
Student’s Declaration
I am Nushrat Jaman a student of Department of Business Administration, Daffodil
Institute of IT, proclaims that the Internship Report on an analysis of Promotional
Activities of Bangladesh Commerce Bank shows the result of my own research
works, pursued under the supervision of Dr. Mohammed Shakhawat Hossain
Principal, Associate Professor, Daffodil Institute of Information and Technology
(DIIT)
I further certify that the submitted report is unique and no part or entire of this report
has been submitted to, in any structure, in any other university or institution for any
degree or some other reason.
……………………….
Signature of the Student
Nushrat Jaman
Registration No: 15501003927
Major in Marketing
Session: 2015-2016
Bachelor of Business Administration
Daffodil Institute of IT (DIIT)
CERTIFICATE OF THE SUPERVISOR
This is to certify that Nushrat Jaman, student of BBA, Bearing National University.
Registration Number: 15501003927, Academic session 2015-2016, Major in
Marketing, is a regular student of BBA program, Department of Business
Administration, Daffodil Institute of IT (DIIT), under National University. She has
completed a three month internship program Promotional Activities of Bangladesh
Commerce Bank (Jigatala branch), under my supervision, which is a fulfillment of
particular requirement of BBA degree.
I need to offer thanks to officers and members of staffs of Bangladesh commerce bank
jigatala Branch, for their cooperation without which it would not be conceivable to
finish the report.
Preparing this report was exciting and hard work at the same time. It is for the first
time that I have been able to gather real life experience working on a report.
I’m thankful to all officer of Bangladesh commerce bank Ltd and customer of Jigatala
branch, Dhaka for their sincere co-operation and who helped me to learn about
banking during my internship. It would not possible to prepare the internship report
without their help and valuable advice and instruction.
- Executive Summary
1 1.Introduction
1. Introduction
1.4 Limitations
2 2. Theoretical Framework
5 Findings
6 Recommendations
6.1 Recommendation
7 Conclusion
8 References
9 Appendix
Executive Summary
Banking industry in Bangladesh up to now is leading the financial system. All of the
banks in Bangladesh are introducing new and new products to meet the dimensional
demands of customers. But only adoption of new products is not sufficient. Customers
should get the proper information about the products. For this Banks are now
emphasizing on proper marketing strategy. And of course in this aspect they are
applying different promotion mix. I was given Bangladesh Commerce Bank Ltd. to
analyze their promotional activities. Bangladesh Commerce Bank Ltd. is maintaining
its competitiveness by leveraging on its online Banking Software and modern IT
infrastructure. Different types of promotional activity undertaken by Bangladesh
Commerce Bank Ltd. including: Newspaper advertisement, television advertisements,
advertisements in radio stations, magazines, bill board advertisements and
sponsorship program etc. It is also involved with various types of sponsorship and
donation activities. Different types of promotional techniques that bank used for the
promotion of their product promotion also discussed basis on qualitative and
quantitative strategy. Based on their promotional activities some recommendations
will also suggest that will helpful to increase the product selling and quality of
customer service.
Chapter 1
Introduction
1. Introduction
Now a day’s bank reduces interest rate on deposit and increases interest rate on loan.
Some banks are reduces their interest rate on deposit by 1.5%, and some reduces by
2% and so on. On the other hand some banks increase interest rate on providing loan
amount.
The objective of the paper is to analyze the promotion activities of commercial bank
of Bangladesh.
There are several types of research, such as exploratory, descriptive, causal, and
conclusive etc. The research that I conducted to understand the problem clearly is an
exploratory research. I have collected and gathered data from the Annual Reports of
different Banks, articles, internal stored magazine and reports, journals, websites,
articles etc. to accomplish my objectives. Secondary data have collected to get the
present promotional activities scenario of the different banks. This involved searching
the websites of every individual company’s and collected some journals, articles.
To collect the information the design of research could be exploratory and descriptive.
Through exploratory research I have gathered information based on depth interview
of executives of the selected banks. This report paper is based on mainly secondary
data collection as well as primary data also.
One of the sectors within the service industry that has been influenced the most by the
changes in the globalization process, and at the same time has been highly
internationalized, is the banking sector (Sanchez-Peinado, 2003). So today most bank
face a market that is extremely dynamic. In this intense competitive market if a bank
has to survive successfully it needs to attract and retain the customers by offering
them wider range of services. Zineldin further states in his writing that banks are no
longer in the business of buying & selling money. They are rather in the business of
offering complete financial services. Browldh (1989) observes that commercial
banking has expanded its range of products & services into what is known as
universal banking, thus motivating into new areas. According to Goldsmith (1969)
financial development is the outcome of continuous proliferation and diversification
of financial institutions as well as financial instruments. But to sell this wide range of
products & services, a bank needs to employ different promotions to attract the
customers and to make them purchase from the banks.
In recent time, increasing competition in the business world has forced firms to
become more aware of price and costs, which has resulted in a shift in the promotion
mix to a greater use of promotion tools that are cost effective in reaching the
customer. (Boyd et. al. 1998). According to Rowly (1998), promotion is used by
organizations to communicate with customers regarding their product offerings, and
also to ensure that customers are aware of the available products. Boyd et. al.(1998),
describe the promotion strategy as a controlled & integrated programme of
communication methods and materials designed to present the organization and its
products to customers, and to contribute to long run profit.
Grankvist, Kollberg & Person (2004) state that with the growing importance of the
financial sector, pressures are escalating for more effective marketing management of
the financial services. Median (1996) argues that despite the recent recession, the
financial services sector is continuing to grow in terms of turnover and profits and
thus, has a supreme impact on the other spares of the economy. Consequently there is
currently growing interest in applying marketing techniques and tools in financial
services.
The role of promotion has been redefined by Dawes & Brown (2000) into managing
long term relationship with carefully selected customers, including construction of a
learning relationship where the marketer maintains a dialogue with an individual
customer. Due to this fact, the personnel are one of the most important resources of a
bank. Their competence will determine the quality of the bank and how well it
operates (Marquardt, 1994).
Shahid, Banerjee & Mamun (2004) state that the economy of Bangladesh has been
growing gradually, and as such it needs the support of a financial structure, which is
responsive to the needs of development. In the process of development of
Bangladesh, banks will have to shoulder more responsibilities than before meeting the
financial needs of customers of different sectors of the economy. In this aspect the
need of promotion for financial products in banking industry of Bangladesh has
become an emerging issue in this country. Brassington & Pettitt (2000) state that
promotional mixes often have to be adjusted to suit the local environment and reflect
the target markets preferences. Recently a research has been done on the issue by
Ikhtiar Alam & Zahid (2004). They showed that the private commercial banks,
operating in Bangladesh, constantly focus on understanding & anticipating customer
needs. The PCBs in Bangladesh are now feeling the greater importance of marketing
because of increase competition, technological innovations and government
regulations. They are trying to create a vision of marketing with a large number of
promising issues.
We need a long way from time when the banks were deposit taking and money-
lending institutions. The old concepts, attitudes and methods in banking have
undergone a marked change all over the world. Modern banking is an outcome
development driven by changing financial activities and lifestyles. Bangladesh has not
lagged behind. The aim of the research was to investigate the promotional activities in
different private banks in Bangladesh. For all banks, by understanding how
communication works can improve the delivery of their message. Banks must have
good understanding of how their audience interprets words, symbols, sounds and
other stimuli. Targeting the right message receiver will go a long way to improving a
bank’s ability to promote their products and services. Messages are much more likely
to be received and appropriately decoded by those who have an interest in the content
of the message.
1.4 Limitations:
Inadequate knowledge in studying reports.
Lack of in-depth understanding of certain terms and concepts prevented me
from going into details.
Lack of research.
Using secondary data in large scale.
Unavailability of updated data.
Lack of information and coordination.
Confidentiality of data was another imperative barrier that was faced during
the conduct of this study.
Power Crisis.
I went to the managers/owners but they did not give me enough opportunity
for my survey. Because they couldn’t manage their valuable time.
Amount of data collection is not very huge.
Chapter 2
Theoretical Framework
2. THE CONCEPT OF PROMOTION MIX & ITS ROLE IN BANK SERVICES
Customers stand in the middle of all the marketing activities. The main objective of
marketing is to establish a strong and profitable customer base to accelerate sale of the
company. For this mission, the company sets a marketing strategy where by it
segments the total market into certain groups, targets the group it wants to serve and
lastly focuses how to satisfy the target customers. Thus marketing strategy comprises
of three elements segmentation, targeting and positioning. Under this market strategy,
a company detects a marketing mix consists of product, price, place & promotion.
According to Kotler and Armstrong (2006), Promotion means activities that
communicate the merits of the product and persuade the target customers to buy it.
Usually under promotion mix a company adopts six tools. They are
ii. Sales Promotion: Through sales promotion a company offers different short term
incentives to customers to motivate the purchase or sell of a product. The incentives
may come in different forms, like discount on price, free gifts, buy one get one free
etc.
Peatti & Peatti (1994) claims that normally coupons, special offers and other forms of
price manipulation are the dominant forms of sales promotion. Meidan (1996) states
that sales promotion within financial services appears to be the most effectively used in
combination with advertising.
iii. Personal Selling: Sometimes companies build up an efficient sales team who
with personal interaction try to motivate potential customers to purchase from the
company. The personal selling may focus initially on developing a relationship with
the potential buyer, but will always ultimately end with an attempt to "close the sale".
According to Julian & Ramaseshan (1994) the relationship between the salesperson
and the customer is perceived as being of great importance for the marketing of a bank.
Verhallen et al. (1997) indicate that banks should see the selling as a problem solving
process in which the sales force engages and co-operates towards the customer, trying
to find a solution to the customer’s problem, rather than only persuading him to
purchase the products or services. Lee (2002) state that personal selling can be
performed either face-to-face or through technological aids such as the Internet.
iv. Public Relations: To establish a good relationship with the different parties of a
company. PR covers a range of activities, like creation & maintenance of corporate
identity and image; charitable involvement, media relation for the spreading of good
news etc. (Grankvist, Kollberg and Persson,2004). Meidan (1996) claims that the
importance of public relation is being increasingly attended, and financial services
often have public affairs officers, working actively to generate publicity.
vi. Event & Experience: The last component of promotion, i.e. event and experience
is a new dimension in promotion activities of companies. By participating in different
events like trade fair, export fair, seminar etc. companies try to make people aware
about themselves. Commercial banks now a day are participating in different events
and thus try to promote their products. Banks participate in SME Fair, Financial
Institutions Fair, and Remittance Fair etc. Besides they sometimes arrange training
programs, seminars, conferences as a part of their promotion.
Chapter 3
Bangladesh Commerce Bank Ltd. is committed to fulfill its customer needs and
become their first choice in banking so that a sustainable growth, reasonable return
and contribution to the development of the country can be ensured with a motivated
and professional work force.
To become a Bank of first choice by the customers with meaningful contributions to the society.
To maintain a healthy growth of business in all core activities with desired image
To acquire state-of –the art technologies and adopt innovative ideas for financial
inclusion.
To expand the customer base and maintain an incremental deposit & reduce the
non-performing assets.
To enrich management capacity & human resources quality and develop a pro-
active work force with a suitable compensation package.
Bangladesh Commerce Bank Ltd. also sponsor many function, play such as cricket,
hockey, tennis etc. they also work with social development organizations, donated
money in different sectors these are as follows
The promotional expense and total profit before tax of fiscal year 2010 to 2012 are
given below:
Table 3.2
In 2012 promotional expense was 17.2 million taka and the total profit before tax was
3841 million taka.
Figure 3.2
Newspaper Frequently
Billboard Frequently
Participation do
in different
events
Findings
5. Summary of Findings
The analysis shows that promotional activities in those private banks are not in a
structured form. The presentation of data can be summarized as of the following
findings:
♦ Form the above comparative analysis I found that, the Bangladesh Commerce Bank
Ltd. are not involved with almost all sorts of promotional activities.
♦ Bangladesh Commerce Bank Ltd. is not involved with most of those activities. It is
only involved with various types of sponsorship and donation activities.
♦ Bangladesh Commerce Bank Ltd. doesn’t even participate in many kind of fairs.
♦ Bangladesh Commerce Bank Ltd. usually applies all the six different tools of
promotion though the extant of applying a particular tool.
♦ Bangladesh Commerce Bank Ltd. must have good understanding of how their
audience interprets words, symbols, sounds and other stimuli.
♦ Targeting the right message receiver will go a long way to improving a bank’s
ability to promote their products and services.
Chapter 6
Recommendations
6. Recommendations
After studying the total scenario the following recommendations may be offered for
improving present condition of the market as well as its prospects.
If banks have a direct marketing strategy then they should keep a database of
customer information .They do so by means of Internet marketing, SMS
(telemarketing), and telephone (telemarketing). The other businesses could
easily make use of direct marketing by phoning or contacting customers via
SMS to share with them any information regarding their skims. This is a
personal and direct means of low cost communication with potential
customers, which banks could use to keep the cost of promotional activities
low. The banks could also make more use of the Internet. Many advantages
exist for Web advertising. These advantages include the facts that Web
advertising can be interactive and that it can be used to build up the banks
customer database. Potential customers also have the opportunity to provide
feedback, which results in two-way communication. This advertising medium
can also be used to target a more executive niche market due to the strong
correlation between Internet access and personal income.
Digital marketing can also be used for customer retention strategies by means
of loyalty clubs and special offers. This promotion variable is very effective,
especially for people who are short on time and need quick information.
Market research can provide the necessary information to the bank about the
current market situation in which they operate. Market research should
become part of the culture of banking sector in the business area. This
approach can help the banks to discover new market opportunities, which can
be used to their advantage and strategy formulation. Market research will also
enable the banks to customize their skim offering & advertising.
Chapter 7
Conclusion
7. CONCLUSION
From the every inception of banking history in our country, Bangladesh Commerce
Bank Ltd. banks are playing a vital role in the economic development. Till now banks
are the major drivers in the financial sector of our economy. After the privatization
trend, Bangladesh Commerce Bank Ltd. have taken over major part of business among
all commercial banks. In 2012 PCBs disbursed the highest amount of term loan
compared to others (Bangladesh Bank, 2012). But to survive in the competitive world
of globalization and to make them up to date with the modernization trend, banks are
introducing new products based on new technologies which will meet up the demand
of their customers. To make these new services informed by the customers, the banks
are also focusing in different promotion tools. According to marketing discipline
promotion tools bring a product and service under customers’ knowledge and induce
them to purchase it. Banks usually applies all the six different tools of promotion
though the extant of applying a particular tool may vary bank to bank. In this paper I
have analyzed the different tools applied by the sample banks to promote their
products to potential customers. We need a long way from time when the banks were
deposit taking and money-lending institutions. The old concepts, attitudes and
methods in banking have undergone a marked change all over the world. Modern
banking is an outcome development driven by changing financial activities and
lifestyles. Bangladesh has not lagged behind. The aim of the research is to investigate
the promotional activities in different private banks in Bangladesh. For all banks, by
understanding how communication works can improve the delivery of their message.
Banks must have good understanding of how their audience interprets words,
symbols, sounds and other stimuli. Targeting the right message receiver will go a long
way to improving a bank’s ability to promote their products and services. Messages
are much more likely to be received and appropriately decoded by those who have an
interest in the content of the message.
However through this paper I get an idea about the different promotion tools applied in
private commercial banks in Bangladesh and their importance in the operation of
banking business. And there is no doubt that the proper application of promotion tools
will play an important role to make the banking products more acceptable to the
people. So I can conclude that promotion activities have immense significance for the
banking industry in Bangladesh to adopt new dimensions of promotion to utilize this
tool efficiently. I wish a prosperous future for these banks.
9. Appendix
Questionnaires:
A. Yes B. No
A. Build Awareness
B. Create Interest
C. Provide Information
D. Reinforce the Bank
6. What is the Budget amount for the Promotional activities in the Bank?
7. Do you think Promotional activities are main factor for the success of the
Bank?
A. Yes B. No C. No Comments
A. Yes B. NO C. No Comments
9. Is Promotion important for ensuring higher public awareness & higher
market share of the organization.
10. Under promotional activities what types of activities are undertaken by your
bank? You can give several answers.
E. Others.