On the partial fulfillment of 4th semester of POST GRADUATE DIPLOMA IN BUSINESS

MANAGEMENTAT

INSTITUTE OF MANAGEMENT STUDIES, Ghaziabad

We the following students submit our report entitled

:: INTERNAL MARKETING IN FOREIGN BANKS::

Under the esteemed guidance of Prof.Timira Shukla

ACADEMIC SESSION

2007-2009

:: Submitted To: Submitted By:

Prof. Timira Shukla SHIVENDRA SINHA (141) SHIVI SAXENA (142) SHIVYA GUPTA (143) SHUBHAM CHAWLA (145) SIDDHARTH AGARWAL(149) SMRITI GAUTAM (150) SONAM AGRAWAL (153)

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INSTITUTE OF MANAGEMENT STUDIES,

GHAZIABAD

CERTIFICATE

This is to certify that this report contains bonafide work of Shivendra, Shivi, Shivya,

Shubham Chawla, Siddharth, Smriti, Sonam during Term IV, session 2007-2009 for the

subject Marketing of Service

DATE: Signature of Faculty

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ACKNOWLEDGEMENT

This report bears the imprint of many people and without their support it

would not have existed. First of all we would like to express our sincere

indebt ness and profound sense of gratitude to our parents whose support in

all manners had made us capable to complete this project.

We acknowledge our deepest thanks to Prof. Timira Shukla for

all her care and encouraging words and giving suggestion at different point

of times. At the outset we would like to put on record our sincere gratitude

to all of our friends for giving us valuable ideas throughout of our project.

SHIVYA GUPTASHIVI SAXENASHIVENDRA SINHASHUBHAM CAHWLASIDDHARTH AGARWALSMRITI GAUTAMSONAM AGRAWAL

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Content

1) Introduction to Internal Marketing 52) Foreign Banks in India 103) About HSBC 144) Internal Marketing in HSBC Bank 145) About American Express 176) Strategies for internal marketing in American Express 257) Conclusion 278) Bibliography 28

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Review of literature

Hitendra Bargal and Ashish Sharma IJSM al(march 2008). The banks are trusted places of customers, and have come across many changes in their functioning. Satisfied customer is crucial for banking organization future.

Philip et al.(2005) Indian rural banks pays more attention on other factors other than market oriented strategy. In India the major emphasis is now been shifted for internal marketing. It is been now become one of the most important factor which is been now used by number of private and foreign bank in order to provide better services to the customers.

A number of factors of services are leads to the efficiency of banking services, taking into account physical and human resources, service quality and performance. Expenditure on quality improvement efforts, and impact of service quality on financial outcomes have long intrigued researchers. Mukherji et al.(2003).

B K Jha, S L Gupta and Puneet Yadav IJSM al(march 2008). Technology access, up gradations and innovation in various functional areas of banking are of highest level in India. Services players major role in Indian economy and financial is fastest growing sectors of Indian economy, where technology is customer-oriented service. Indian banking has moved from a traditional model of customer services to a mordern one where banks can reach the customer at any point with their service.

The optimization triad of resource, service quality and performance is proposed here, there by linking the marketing variable to financial metrics. Sureshchandra et al.(2002) stats that there is an insufficient of knowledge with respect to the banking industry in developing economies. The difference between public sector banking industry in development economies. The difference between public sector, pvt sector and foreign banks were investigated with respect to the total quality services. Multiple discriminate analyses were used to find out those dimensions of TQS which contribute more to the discrimination between the three sectors of Indian banking.

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INTRODUCTION TO INTERNAL MARKETING

Internal marketing (IM) is an ongoing process that occurs strictly within a company or organization whereby the functional process aligns, motivates and empowers employees at all management levels to consistently deliver a satisfying customer experience.An organization thrives on the abilities of its constituents, namely its employees and business partners as they define the company’s ability in optimizing resources and competencies to convert opportunities into revenues. They are called the internal customers as they interact within the organization internally to generate long term value. Like external customers, they too are impacted by the company’s brand and its future plans. An information-armed, enthusiastic work force boosts productivity, minimises turnover costs, creates profitable customer relationships, delivers better customer care while strengthening the corporate brand in the market place. However if your internal customers are not sufficiently aware of your marketing plans, and do not participate effectively in the promises to external clients, the external brand equity is negatively affected. It is very important that internal staffs’ perception of the organisation – your internal brand – matches the external brand positioning for optimum results. There are various techniques and tools that help organisations implement effective internal brand building and marketing communications. These are intranets, extranets (partner communication on the web), newsletters, posters and pamphlets informing about new initiatives, better systems, company stores, company events, internal rules and procedures.

Key concepts of internal marketing include: IM functioning as a continual internal 'upskilling' process. Alignment of the organization’s purpose with employee behavior. Employees internalizing the core values of the organization. Motivation, reframing and empowerment of employee attitude. Inside-out management approach. Retaining a positive customer experience throughout the business

objectives

The following are the features of an internal marketing-oriented business:

1. Creating enabling culture: this is done when employees are empowered by management through allowing creativity, innovation, allowing initiatives and accountability and responsibility of their decisions.2. Practicing participative hiring: that is involving current employees in the process of hiring new employees.3. Ensuring equitable recognition and reward: business must exercise employee recognition with reward to what employee has achieved.

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4. Demonstrating fairness during hard times: fair treatment of employees when faced with hard times and difficult moments like death of the near family members. This can be achieved by setting aside emergency funds.5. Good organization structure that allows learning, total quality management and re-engineering.

Benefits of Internal Marketing

1. Internal Marketing encourages the internal market (Employees) to perform better.2. Internal Marketing empowers employees and gives them Accountability and responsibility.3. Internal Marketing creates common understanding of the business organization.4. Internal marketing encourages employees to offer superb service to clients by appreciating their valuable contribution to the success of the business.5. Internal marketing helps non marketing staffs to learn and be able to perform their tasks in a marketing-like manner.6. Internal Marketing improves customer’s retention and individual employee development.7. Internal Marketing integrates business culture, structure, human resources management, vision and strategy with the employees' professional and social needs.8. Internal marketing creates good coordination and cooperation among departments of the business.

Problems affecting successful implementation of Internal Marketing.

The following are the problems affecting effective implementation of internal Marketing.1. Managerial Incompetence in interpersonal, technical and conceptual skills is some of the stumbling blocks against successful internal marketing.2. Poor understanding of internal Marketing concept.3. Individual conflict and conflict between departments makes the implementation of internal marketing difficult.4. Rigid organisational structure coupled by bureaucratic leadership hinders success of internal Marketing.5. Ignoring and not listening to subordinate staffs.6. The Tendency of ignoring employee’s importance and treating them like any other tools of the business.7. Unnecessary protection of information against employees.8. Resistance to change.

Internal Marketing Approach

To be effective, internal marketing needs to accurately segment internal customers. Like external customers, they too have their own ‘buyer’ behaviour, i.e. identifying with the changes which organizations plan to implement. Broadly speaking there are three segments - supporters, neutral, ‘opposes’. Each segment requires a different internal

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‘marketing mix’ to deliver on internal marketing goals. For example, if the company wanted to relocate closer to new emerging markets; it could target 'supporters' with a customized video on relocation benefits like low cost of living and better amenities. The 'neutral' internal customers could be targeted with incentives like a pay raise; while the 'opposes' could be effectively coerced / forced to accept the re-location regardless of their objection (in the larger interests of the company).Key Success Factors

internal marketing is an ongoing process that needs constant top management support and the process innovations to make it as viable as external marketing. Internal marketing is a dedicated effort across the organization, whereby it aligns, motivates and empowers people at all management levels to consistently deliver a satisfying internal and external customer experience. To ensure that it delivers consistently, internal marketing should:

·         Function as a continual internal 'up-skilling' process ·         Align the organization’s purpose with employee behaviour ·         Internalize core values of the organization by all employees ·         Motivate, reframe and empower employee attitude ·         Facilitate an ‘inside-out’ management approach ·         Retain a positive customer experience across all business objectives ·         Provide role-specific and user-focused information, including           best practices around various organisational policies and processes ·         Increase the peoples’ connections with the external / internal customer           service division’s roadmap by articulating investments, tactics, and objectives. ·         Be available in a self service / portable format that is accessible anytime, anywhere Smart

Internal Marketing Tools

The web offers one of the best platforms for a consistent internal marketing experience across regional, national and international sections of an organization. The web’s self service function and anytime/anywhere accessibility allows employees to leverage internal marketing program without significantly impacting their primary job roles. Besides this, the web allows the employees to form communities based on their personal likings and unofficial designations/department affiliations. This allows effective employee bonding, branding and learning at both the formal as well as informal (cultural) organization levels. Proven web tools include intranets or even an internal facing website that creates online events, e-learning programmers, ‘expertise communities’, discussion forums and e-commerce exchanges. Intranets/websites also serve to keep employees consistently and accurately informed about the latest organisational initiatives and innovations so that they can leverage them when interacting with external customers. As the web enables the building of communities, within the organization, people can leverage them to work faster and better collaboratively. For example a financial department can ask for a copywriter’s (marketing department) skills to draft an attractive costing / budgeting document for customers. Online advertisements can also be an effective tool to increase internal marketing’s reach. Informative advertisements about

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new customer wins, external initiatives, new process/technological innovations and external PR wins (press /analyst reportage) can be made to appear as employees connect to the Internet through the official network. The web is the most potent yet customer friendly internal marketing tool that tracks usage too. So organizations know what is working and what is not, besides enhancing the ability to be internally adaptive – to increase employee satisfaction and the overall internal marketing programmed experience.

Making Internal Marketing Work

Of all the things CPAs can do to develop new clients and deepen existing client relationships, internal marketing is among the most fruitful. A solid internal marketing system takes you far in your effort to get more and better business. Fortunately, it’s one of the simplest and least uncomfortable business development activities.Practical internal marketing is a process that educates all employees about the firm’s services and who in the firm provides them. Just let everyone in the firm know what services the firm offers and who provides them. Although the process seems simple, at least four obstacles can impede effective internal marketing:

1. Often, the internal marketing process is informal at best. Employees simply talk to each other and develop relationships on their own. When a firm reaches a certain size (probably more than 25 or so) or opens multiple offices that informal system tends to disintegrate unless you foster a culture that values interdepartmental or interoffice communication and cooperation.

2. Adding to the complexity, the possibility of a breakdown in communication and trust increases when a firm hires specialists in a given area. We don’t trust what—or who—we don’t know or understand.

3. 3. CPAs focus most of their efforts on billable work. They usually aren’t interested in yet another meeting that cuts into billable time. Educational sessions on the firm’s services certainly fall into that category.

4. Most professionals won’t make the effort to get to know other team members, particularly in larger firms. They’re busy; they’re often introverted; and they’re rewarded and recognized primarily for racking up billable hours. They can’t see what’s in it for them as individuals when it comes to internal marketing.

Jumping the Hurdles

none of these problems is insurmountable. Here are a few techniques you can use to increase the effectiveness of your internal marketing efforts:

Begin with new employee orientation. Instead of burdening new employees with a recitation of personnel policies they could easily read on their own, introduce them to your firm’s services and experts. Give each department five to ten minutes (no more, because the new folks are already on information overload) to present an overview of what each department does and who does it. Have your most energetic speakers represent each group. Encourage new employees to visit individuals in other departments after they’re settled. If your tax people don’t

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know your financial planning or benefits administration people, how can they possibly recommend their services?

Encourage "cross-eating." Rather than thinking about internal marketing or cross-selling, encourage cross-eating. Food is the best icebreaker among people. Encourage interdepartmental lunches. Consider organizing lunches or providing food. Follow up regularly to see whether employees are participating. (Here’s a hint—they’ll do it if you and other senior people in your firm do it. People naturally emulate what they perceive to be successful behaviors, so if you start the process, they’ll follow. The flip side of this, of course, is if you’re sitting behind your desk 60 hours a week with your door closed, they’ll emulate that behavior, too.) Congratulate employees for getting to know their coworkers and communicate the benefits of doing so to others.

Use star performers. Of course, conduct regular internal training sessions on all your services. The important thing is to have your very best presenter do the training. Too often, internal training is relegated to either a department head or the most technically astute employee. An accurate-but-dull presenter will hinder your internal marketing effort. An energetic, likable, enthusiastic team member will help capture the attention of others, and generate excitement about the service.

Discount new services. Consider allowing employees to offer new services at a discount. Nothing works better than word-of-mouth advertising. If you can make your employees advocates of your services, they’ll be your best referral source for new business.

Cheer on the team. Reward and recognize the people who let clients know about new services. It doesn’t necessarily have to be a financial reward. Sometimes a simple thank-you note or e-mail does the trick.

Use your internal newsletter and intranet effectively. Ask each department to submit information current activities and to provide good news about business development efforts. Remember that the goal in these venues is to inform and uplift.

Discuss results honestly. Conduct your marketing meetings effectively. This is the time for discussions about which internal marketing efforts are working and which aren’t. It’s absolutely not the time for displays of hot air. Trust builds when people are honest with each other. Sharing both successes and failures (call them learning experiences if you want) enables people to understand the complexities of the firm’s different services, what makes them useful, and what services clients are and aren’t accepting. It is also a unique opportunity for problem solving. Honesty in communication is simply invaluable to your firm.

A Few Tough Last WordsOne last suggestion, and it’s the toughest and most important. If you aren’t already doing so, work hard at changing your culture from one that recognizes and rewards only billable time and technical acumen to one that honors business development, training, and mentoring. That means starting at the top and really (not just nominally) changing the criteria for partnership to include all the skills that make a business successful—not just seniority and technical mastery.

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By recognizing and rewarding a balanced set of skills, and by implementing these simple steps, your internal marketing process will be stronger, your revenue will be higher, your clients will be better served, and your team members will be your very best sales force.

Foreign Banks in India

Foreign Banks in India always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and accurative.

New rules announced by the Reserve Bank of India for the foreign banks in India in this budget have put up great hopes among foreign banks which allow them to grow unfettered. Now foreign banks in India are permitted to set up local subsidiaries. The policy conveys that foreign banks in India may not acquire Indian ones (except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will not be able to open branches freely. Please see the list of foreign banks in India till date.

List of Foreign Banks in India ABN-AMRO Bank Abu Dhabi Commercial Bank Bank of Ceylon BNP Paribas Bank Citi Bank China Trust Commercial Bank Deutsche Bank HSBC JPMorgan Chase Bank Standard Chartered Bank Scotia Bank Taib Bank

By the year 2009, the list of foreign banks in India is going to become more quantitative as number of foreign banks are still waiting with baggage to start business in India.

Deutsch bank India

Deutsche Bank started operations in India in 1980. Today, Deutsche Bank is one of India’s most respected financial services providers, widely regarded for its deep commitment to the Indian market, strong client relationships, sophisticated productTechnology & global connectivity, built with strong corporate governance standards. With over Rs. 5700 crore capital and 6000 employees in India, Deutsche Bank operates branches in Mumbai, New Delhi, Bangalore, Chennai, Kolkata, Gurgaon, Noida,Aurangabad and Kolhapur and will soon open new branches in Pune, Salem and Vellore. India is amongst the largest franchises of Deutsche Bank’s presence in 17 markets in

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Asia-Pacific. Embedding inclusively in India Deutsche Bank has successfully launched several new businesses in India - reflecting its desire to engage with a larger population of clients across the country. Building on its dominant global markets - debt and derivatives – and leading transaction banking – cash management, trade finance andcustody - franchises, Deutsche Bank has since 2003 gained significant market share in on-shore investment banking, institutional equities broking, asset and private wealth management (with over Rs.28,000 crore of investible funds, including assets under advisory), retail banking & credit cards (with over 4,70,000 clients) and business processes outsourcing, thus making Deutsche Bank a fully integrated financialServices provider to Indian corporate, institutional and individual clients. A responsible corporate citizen Deutsche Bank is deeply involved with the welfare of the communities it operates in. Focused on empowering the underprivileged sections of society through education, Deutsche Bank has evolved a robust program which includes substantial financial support to leading NGOs like Pratham India Education Initiatives as well as volunteering and payroll contributions by staff through NGOs like Give India Foundation. Deutsche Bank supports heritage conservation including restorationAnd maintenance of two Grade II heritage buildings in Mumbai and has also espoused the cause of environment conservation through support to non-governmental efforts. Deutsche Bank has also repeatedly stepped forward to aid disaster relief initiatives, being among the first entities to contribute to the Prime Minister Relief Fund for Tsunami victims, towards relief efforts in the earthquake affected areas in Kashmir. Believing in strong corporate and regulatory governance standards, Deutsche Bank is regularly invitedto contribute to the development thought in banking and finance in the country through participation in high level committees of regulators – the RBI and SEBI - and leading industry associations. Recognition: Deutsche Bank’s consistent performance and business focus has resulted in it receiving several awards including “The Best Investment Bank in India 2007” and “Best Debt House in India 2007” by Euro money, “Best Private Bank in India 2007” byAsia money Private Banking Polls, “Best Cash Management Bank in South Asia 2007” and “Best Sub Custodian India 2007” by Triple Asset Asian Awards, “Best Trade Bank in India 2007” by Euro money and the “Award for Outstanding contribution towards thePromotion of Indo-German economic relations 2006” by the Indo-German Chamber of Commerce. Key investment banking transaction highlights in 2007: Tata Steel Acquires Corus Steel (Jan ‘07)—Deutsche Bank. The deal created the fifth largest steel producer In the world. DB acted as Financial Advisor and Corporate Broker to Tata Steel ICICI Bank bond (Sept 07) ICICI Bank tapped the international markets for US $ 2 billion. It was the largest ever deal from India and the largest 5-year USD fixed rate deal out of Asia. DB was the joint lead manager to the issue.

American Express Bank

American Express Bank has presence in over 150 countries. It is a diversified travel and financial services company. Established in 1850 in New York, American Express Company was among the first and most successful express delivery businesses to arise during the rapid westward expansion of the United States.

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American Express India was established in 1921 providing high quality travel and financial services. American Express in India is the largest company to have wide network of travel locations in the country. American Express Travels has entered into a Memorandum of Understanding (MoU) with Department of Post to enable the designated Speed Post offices in distributing and encasing American Express Travelers Cheques.

American Express Travellers Cheques are available in the following currencies: Australian Dollar Canadian Dollar Euro Japanese Yen Saudi Riyal South African Rand Swiss Franc Pound Sterling US Dollar

American Express Travelers Cheques have worldwide recognition and are safer than cash. In case of lost and theft, American Express Travellers Cheques are replaced worldwide and usually within 24 hours.

Citibank, India

Citibank has been providing banking services in India since 1902. Citibank is actively lending to individuals in India and is one of the largest consumer finance lenders in the world. Citibank offers host of value added services such as retail banking, investment, insurance, loans et al. Citibank online banking services provide number of customer friendly facilities such as redeeming reward points, payment of bills online, sending demand drafts anywhere in India, mobile banking etc.

Citibank credit cards offer a range of flexible and personalized credit services. Citibank offers the widest range of 23 credit cards. Credit Card categories include Premium Cards, Extra Value Cards, Special Interest Cards, Basic Cards, Travel Cards, and Diner Cards.

Barclays Bank

Barclays PLC is a global giant in international financial services. Its head office is situated in London City, UK. Being the third largest financial service provider in England, Barclays promises nothing but the best banking and other services to their customers in India. The bank has its head office in India is at Mumbai.

Barclays Bank specializes in global retail and commercial banking services. The corporate banking division of Barclays Bank in India was set up 2006. This handles the

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finance arrangements for leading Indian corporate, small and medium enterprises and offers loans, deposits, payments, cash management services, and finance and treasury solutions.

Barclays Consumer Banking services were launched more recently in May 2007, covering personal loans with lower EMI's and credit cards offering the freedom to the customers to choose the payment dates.

Currently, Barclays Bank India has 4 offices in Mumbai that is the head office, Delhi, Kanchipuram near Chennai and Nelamangala near Bangalore. Barclays PLC is a customer-centered organization offering the much-needed financial assistance for those who approach them. Barclays has also ventured into banking services focusing mainly on the NRI banking that is soon catching up in the Indian banking industry.

Commercial Banking Products Loans Finance and Credit Payments Cash Management Treasury Solutions Trade Finance Loan Barclays Global Credit Card

Barclays PLC has been actively involved in not just the economic but also social assistance in India. They have taken up the task of support the education of 500 underprivileged girl kids in "Project Nephi Kali". Along with this, Barclays has also extended its support to the Red Cross Society in India to assist the National Disaster Response Team in their rescue operations in case of any emergency relief operations during natural disasters like earthquakes or floods.

Barclays boasts of a global presence in over 50 countries with more than 27 million customers. Barclays PLC is one of the leading banking services and investment management providers in the major trade centers including London (UK), Delaware, Dubai (UAE), Dublin, Egypt, France, Ghana, India, Kenya, Manchester, Mauritius, New York (USA), Portugal, Singapore, Spain, Zambia, Zimbabwe etc.

The Barclays website provides any further information you may need about the annual report, company history and current profile, global business centers, share prices, shares news, swift code and working hours. You can also get the latest interest rates for the various national and international banking services like the deposits, loans, foreign currency exchange and the various mortgages offers.

Barclays provides global career opportunities. The jobs at Barclays are of international standards thus making the careers at Barclays PLC a much-demanded vacancy. The news upgrade on the job vacancies are put up on the official website of Barclays PLC.

Besides all this also get online banking facility at Barclays Bank. All you have to do is

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login to your Internet banking account and you get the bank right to your home PC. You can also enquire about the various service charges being charged and the latest banking products like the personal loan, credit cards, insurance, Visa cards etc.

The world's local bank

About HSBC BANK

Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC's international network comprises around 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

History

The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.

Internal Marketing in HSBC BANK

1. Target Base Promotion Offers

Under one of the Policies of the Bank, it provides the promotion depending upon the target which is met by the employees on the quarterly basis. The employees who will achieve the target get the Incentive and the next month foreign tours. For example on the target of the 8account opening, if any employee opens 10 accounts then he is given next month foreign trip. Thus the prompt target based promotion builds up employee’s motivation to give better services to the customer

2. Hierarchal form of Management

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HSBC BANK have a hierarchal form whereby each employee is answerable to one of the senior and this makes the obligation on the employees to motivate one to the other . The burden of business is transferred from one employee to the other in such a way that each one is responsible for the other performance.This way each internal customer is able be keep under the eye of its superior. Moreover the communication link which is important for a service industry is possible with the help of the this management system.

3. Event Management

Under this head various events are organized from time to time in the banks to lure the high professionals for example Sales Tax Advocates, Income Tax Advocates and the Chartered Accountants etc so that external marketing could be more effective. Now the responsibilities of these events are on the internal customers and if they organize these events successfully it add on the credibility and the profitability of the internal customers and they are awarded with the various recognition prizes and awards for there effective leadership skills. This also helps to build up a relationship between the internal and external employees.

4. On The Roll Training High focus is always there on the training aspect of the internal customers. Training of the employees are given due importance from time to time and with the touch points of Human Resources for example whenever Bank want to design training schedule for its internal customers, it design it in the Five –star hotels with all the luxuries there out with all the facilities away from there routine work so this enables the internal employees to be stress-free and grasp the training modules practically. As an HR policy this enables the employees to increase in there efficiency and feel free from the routine work. As a result the employees will be able to add on more practical knowledge to it , when they return to there work. This is one of the prominent factor of the foreign Banks that they stress on the training module of the internal employees , which give them a chance to be more interactive with the other professionals of other branches and if they facing any problem they can sort out with the help of the various training modules

5. Strong Management Information System

Strong MIS base is one of the basic strength of any Foreign Bank, So in HSBC Bank also holds a good MIS system for example here the reporting system is so designed so as to provide no chaos among the internal employees and they can easily report to there seniors online only.

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6. Online Tests/Quizzes/Learning Modules

These tests are specially designed for every class of the employees in the HSBC so as to increase the handling efficiency of the internal customers with the help if of the case studies and the real life examples. Some of them are basic modules and they have to be cleared by the internal customers and some are there just to give them ranking by the HR professional which add-on to the character sketch of the employees and help them to be rated accordingly.

7. Systematic Employees coding

Under this head the internal customers (employees) are given the Employee Code and the People Shop Code. Employee code is given to the employees so as to assess their performance, rating grading whereas the PS is given to the facility of the HR department so that the various online tests, HR activities n be handled conveniently. Thus we can see that how effectively the separate identification no for the Human resource convenience is given which benefit each and every internal customer separately.

8. Excellent Information Technology

HSBC Bank has tied up with SAP in Asia to enhance the financial institution's bank corporate client integration system targeted for use globally. The improved system also has the potential to enable the exchange of richer information between HSBC and its business customers, according to the bank. HSBC currently offers a service that provides corporate clients access to an automated host-to-host system to facilitate secure transactions. Called HSBC Connect, the service enables the back-end systems of the bank and its enterprise customers to communicate seamlessly and securely.

9. Recreational Activities

Time to time recreational activities are designed for the internal customer so as to decrease the stress of the employees. For example visit to Jim Corbett Park with full fledged facilities are provided to the employees. Thus as a foreign Bank internal marketing strategy they always focus on the Human resource aspect of the internal employees by provided the employee friendly environment with the help of the various recreational activities.

10.Employees Rating

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HSBC BANK has full-proof rating system whereby the employees are divided into the four categories as 1st 2nd 3rd and 4th .The level of the employees are rated according to this rating. Currently 1st batch rating is not given in HSBC India but it have been achieved by the international HSBC superiors.

11. Customer Friendly Environment

As a internal customer friendly environment the internal customers are given flexible time allotment which makes the environment of the Bank more friendly. Basic amenities being a service sector is well considered in the foreign banks which actually amounts to the total increased efficiency

American Express Service India Ltd

Certain facts: A survey wad conducted by India Today in which 20 most reputed foreign banks

were surveyed on certain parameters and American Express ranked 6th in Employee Satisfaction.

(Source: India Today , June 2008 issue)

American Express ranks 9th in the list of Fortune 500 companies.It comes under the A++ Category.

Service Blueprint of American Express. Following are the steps involved in making their credit cards available to their customers:-

1) Call to customer2) Appointment3) Meet customer4) Documentation5) Employee back to office 6) Prepare Dispatch 7) Send an E-mail to the processing department8) Verification9) Dump (rejection)10) Card Approval11) Card Issue12) Payment 1) Call to customer :- A prior database is prepared of the prospective customers and

they are called randomly by the tele callers of American Express. The details are narrated to them over the phone and those interested are promptly followed up.

2) Appointments :- The tele callers fix an appointment of the Relationship Officers with the interested customers.

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3) Meet Customer :- A venue and time is decided according to the convenience of the customers and the Relationship Officer meets the customer as per the appointment fixed.

4) Documentation:- The Relationship officer asks the pre-requisites like personal details, type of credit card desired , what all are previously held by the prospect, etc. and the Relationship officer is required to verify all the details.

5) Employee back to office:- The relationship officer comes back to the office after collecting all the relevant details and prepares a summary of the case.

6) Prepare Dispatch :- The Relationship officer prepares a soft copy as well as a hard copy to be sent to the processing department.

7) Send an E-mail to the processing department :- The soft copy is mailed by the Relationship Officer to the processing department.

8) Verification:- The processing Department checks for the authenticity of the prospective client. They search their past records as to whether or not they have had any prior contact with the prospect. If in case it is revealed that their has been a prior association and the prospect was a defaulter in that case then they come in the category of “Cibil” clients.

9) Dump (rejection) :- The Cibil clients are simply rejected.10) Card Approval:- A list of those customers is prepared who can be granted the

credit cards.11) Card Issue:- Thereafter, the card is issued to the customers.12) Payment :- The bank sends the statement to the customers after one month and

the customers are supposed to make their payment within a span of 45 days.

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Hierarchy of American Express

Internal Marketing In American Express Bank

The responsibility of dealing with the customers at American Express is on two people :

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dirddieddD

Vice president

Business Head

Channel manager

Sales Manager

Asst. Relationship Manager

Relationship Officer

Recruitment:-

Both the telecallers and Relationship Officers are hired through consultants. However, holding an M.B.A. degree is a must for the Relationship Officer. In case the person does not hold an M.B.A Degree then he is expected to have served in the same industry for a period of not less than 3 years.

The Relationship Officer is expected to have a dynamic personality, excellent Communication skills, good motivator, should have good convincing powers, etc.All these attributes are necessary because the Relationship Officer is the person who makes the direct contact with the prospective customers. He has the maximum “Encounters” with the customers.

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CUSTOMER

TELE - CALLERS

RELATIONSHIP OFFICER

Training:-

The American Express bank has hired an International body, which provides training in Bangalore and Delhi in the five star hotels. The duration of training is 10-15 days. Training is provided at all the levels. The new employees are told about the history of the company, the company profile, their services, customer profile, area/location, market share, competitors and industry associates. It is basically a knowledge enhancing session.

The trainer asks the new employee to deal with him as a customer. These will provide relevant insight as to how he reacts to customer queries and such training prepares him for crucial service encounters.

Appraisal:-

The Appraisal System at American Express is Target - Achievement oriented. The KPAs and KRA’s are predefined.

A target of 21 points is given to them in a month on the basis of their dealing with the Externals and Internals. Externals are first time users and Internals are those that had a previous association.

If a deal is done with Externals they get 3 -1/2 points and if with Internals they get 1 point. In the end their appraiser combines all the points and on the basis of that they are given rewards, promotions, demotions, counseling, training, etc, as the case may be.Employees are also appraised on the basis of the category they belong to:

G - TargetsM – Interpersonal Skills

G1 M1 – Targets over achieved and excellent interpersonal skills.G2 M2 – 100% achievement of targets and good interpersonal skills. G3 M3 – 50%– 60% achievement of targets and average interpersonal skills.G4 M4 – Targets not achieved and poor interpersonal skills.

Culture :- Core Culture :- Quality, cleanliness, service and price.“ The paramount idiom in American Express is total customer satisfaction”.There is no job pressure and since the employees are highly satisfied and motivated so they service they provide to the customer is also very satisfactory.

Strategies for Internal Marketing Adopted By American Express Bank Ltd.

FAIR PRACTICES CODE FOR CREDIT CARD OPERATIONS

American Express Bank Ltd. (hereinafter referred to ‘the Bank’) has a reputation for customer service and sound compliance. The Bank has various policies and procedures that govern its business activities and operations. Further, the Bank has compliance and other internal programs designed to ensure compliance with laws and regulations of countries where it does business. This Fair Practice Code (hereinafter referred to as ‘the

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Code’) for credit card operations is designed to guide and demonstrate the Bank’s commitment to fair and ethical management of its business activities operations related to issuance of cards, customer service and other related activities.

BANK’S VISION AND OPERATINGPRINCIPLES

Vision:

To become the world's most respected service brand.

Operating Principles:

We must provide a superior value proposition to our customers We must achieve Best-in-Class Economics Everything we do should support the American Express Brand

BUSINESS ETHICS AND COMPLIANCE WITH THE LAW

The Bank and its employees shall ensure that ethical conduct shall permeate all our business dealings and relationships.

In a rapidly evolving credit card business, the Bank and its employees shall ensure ethical conduct in offering products and services, business activities, operations and customer services.

The Bank shall conduct its business in accordance with applicable laws and regulations

The Bank has competent individuals managing regulatory affairs and advising business leaders about compliance requirements. The Bank has a sound compliance program to ensure high level of compliance to applicable laws and regulations.

CARDS – SALES AND MARKETING

The Bank shall provide full and complete disclosure of products and services, their features and costs to enable a prospective customer to make an informed decision / choice

The Bank shall provide information on:

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Key features of our products and services Applicable fees and other charges Documents required with regard to identity, contact particulars, employment, financial standing, etc. How a customer’s personal information shall be used Details of Bank contact for seeking additional information Terms and conditions related to fees and interest charges, billing and payment, renewal, termination procedures and other aspects related to maintenance and management of card accounts.

The Bank’s advertising and marketing campaigns shall use truthful and whole statements about Bank’s products and services

The Bank shall ensure that the whole of an advertisement is truthful, shall inform customers of costs and obligations as well as benefits and features. The advertisements may not mislead by using tricky or clever wording.

The Bank shall have a Code of Conduct for its agents and others who sell, distribute or otherwise market Bank’s card products.

The Bank shall ensure that all agents who sell, distribute or otherwise market Bank’s card products have a Code of Conduct for their dealings with prospective customers and Cardmembers. The Bank shall have monitoring process in place to review the agent’s compliance to this code, at regular intervals.

CARD OPERATIONS AND CUSTOMER SERVICE

The Bank shall have effective processes and systems to ensure quality in operations and customer service

The Bank shall maintain effective processes and systems to maintain quality in following card operations activities:

Timely processing for applications and communication of decision to customers Dispatch of credit card in a secured mode and follow-up communication to inform about issuance of card Availability of contact centers such as telephone service centers for customers to contact for information or queries

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on products, services and related subjects Timely dispatch of credit card statements Timely processing of payments received from credit card customers Receipt and satisfactory disposition of customer correspondences and complaints

The Bank may have processes to honor customers’ choices and preferences during the period of customer relationship

The Bank may have processes to honor customers’ choices with regard to the following, subject to certain terms and conditions:

Change of payment modes within types offered by the Bank Opting out from receipt of Bank’s marketing and promotional materials Voluntary termination of credit card facility

The Bank shall treat customers with respect and dignity during collection efforts

The Bank has policies and employee training programs to guide employees to exhibit courteous and fair behavior during collection efforts. The Bank shall ensure that all collection and recovery agents have a Fair Practice Code for their dealings with the customers.The Bank shall have monitoring process in place to review the agent’s compliance to this code, at regular intervals.

CUSTOMER PRIVACY

The Bank shall safeguard the privacy, confidentiality and security of customer data entrusted with it.

The Bank has privacy principles to ensure that the customer information collected is relevant, accurate and confidential. The Bank has adequate standards to protect customer accounts and information. These standards allow customers to remove their names from lists used for mail, telephone and online marketing. All employees shall be trained in customer privacy principles as appropriate to their work.

FAIR COMPETITION

The Bank shall comply fully with the letter and spirit of laws designed to preserve free and open competition

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The Bank strongly supports vigorous but fair competition.

The Bank shall make completely factual and truthful statements about our own products or those of our competitions, whether in advertising or in speaking to customers or others

The making of false or misleading statements about our competitors is inconsistent with our reputation for integrity. The Bank and its employees shall deal fairly and honestly with allcustomers and suppliers.

COMPLIANCE WITH THE CODE

This is a non-statutory code and the Bank shall take efforts to adhere to it during normal operating environment. The Bank shall not be held responsible for non-compliance due to force major conditions and other reasons for which the Bank enjoys privilege and right over the code. This code does not in anyway prevent the Bank from exercising its rights and discharging its duties and obligations under law, regulations, agreement, terms and conditions, etc. in force and varied from time to time.

Process Of On-Line Marketing through excellent Internal Marketing Practices At American Express Bank

Information Collection

If the customer is not registered for any online service from American Express, he can browse the Site anonymously. They do not collect personal information -- such as the customer’s name, address, phone number or e-mail address -- if you are only browsing this site. American Express does, however, use "cookies" to collect information about how our site is used. Information, such as the server your computer is logged onto, the customer’s browser type (for example, Netscape or Internet Explorer), and whether the customer responded to an American Express banner ad or e-mail is collected and tracked in aggregate and not linked to you personally. They use this information to measure response rates to banner ads and e-mail offers.

Registration for Online Products and Services

If the customers want to apply for or take advantage of our online products or services, the Bank will need them to give us some personal information, including their e-mail address and account number. The bank only collect information about the customer, which they need to process application, to service accounts and other needs, to offer new products and services, and to satisfy legal requirements. The Bank will also use this

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information for purposes such as correspondence, site registration, allowing customers to check your statement or other account details online, to make a purchase, or to participate in online surveys etc. The Bank will also share such information with our affiliates and other for the purposes described elsewhere in this Statement.

Quality of Information

The Bank uses advanced technology, documented employee procedures and internal monitoring to help ensure that the personal information is accurate and up-to-date. In addition, they require high standards of quality from credit reporting agencies and others who provide us with information about prospective customers or other services.

Security

Before you can send confidential personal information or account information to us on an American Express Web site, we require that a "secure session" is set up using Secure Socket Layer (SSL). About SSL and the safety and confidentiality of personal information transmissions over the Internet. They use a range of security processes to protect the confidentiality and security of your personal information

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CONCLUSION

In this section, we attempt to review the important and role of internal marketing in foreign banks of India. Service sector contributes major part of gdp of India. And is one of the most sectors which have too much potential in the sector. There is approx 10% growth in financial sector every year. And hence it’s very important to have continues reforms in that area.

India’s leading bank is SBI, there are number of public and private banks too having good market. Still a number of people didn’t want to go on for banks because of fear of all the different technicalities and other factors. It’s in mind of customers that they have to run from 1 place to other without any result and there money in not secure. So now banks are paying more stress in internal marketing.

With the liberalization of economy few foreign banks have entered in India and with that new techniques of marketing are growing. This study is to know the internal marketing of foreign banks especially American bank and HSBC. Foreign banks pays quite stress on the internal marketing because in services customer have to deal with employees directly and its quite important to have a proper selection process too. In service sector more than marketing word of mouth plays important role, a satisfied customer will lead to many more customers. And foreign players are quite good in implementing this concept in there work process. Now Indian banks are laso using the concept of internal marketing effectively.

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Bibliography

WEBSITES

www.online.citibank.co.in www.hsbc.co.in https://home.americanexpress.com/corp www.db.com www.deutschebank.co.in www.teachermarketing.com www.poolonline.com/archives/iss5fea2.html

JOURNAL

Vol. VI No. 1 (March 2008) The Icfai Journal Of Services Marketing

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