INTERNATIONAL MARKETING PLAN FOR A BANK

International Marketing can be defined as exchange of goods and services between

different national markets involving buyers and sellers. According to the American
Marketing Association, International Marketing is the multi-national process of planning
and executing the conception, prices, promotion and distribution of ideal goods and
services to create exchanges that satisfy the individual and organizational objectives.
For many years, marketing managers just had to be concerned with learning the
intricacies of marketing in a domestic environment. They had to determine if a customer
in Texas bought and consumed products differently than a consumer in Maine. Today,
the marketplace has expanded in a global nature. For companies to continue to grow
successfully, marketing teams must eventually learn to tackle the global marketplace.
Global marketing occurs when marketing managers use a global plan to effectively
market their goods and services on an international basis.
When a company makes the commitment to go international, it must choose an entry
strategy. This decision should reflect an analysis of market potential, company
capabilities and the degree of marketing involvement and commitment management is
prepared to make. The approach to foreign marketing can range from minimal
investment with infrequent and indirect exporting with little thought given to market
development, to large investments of capital and management in an effort to capture
and maintain a permanent, specific share of world markets. Depending on the firms
objectives and market characteristics, either approach can be profitable. In fact, a
company in various country markets may employ a variety of entry modes since each
country market poses a different set of conditions. Having more than one strategy
allows the company to match its expertise with the specific needs of each country
market.
In the context of retail banking, customer satisfaction has been found to be the ultimate
measure of service performance. Once customer satisfaction has been created, loyalty
is often formed, which in turn enhances firm profitability. Over the past few decades,
retail banks have faced an increasingly dynamic environment that has heightened
standards for attaining customer satisfaction, making it difficult to sustain growth in the
existing marketplace. In response, banks could choose to diversify into new product
lines or expand into new markets. Since customers, however, believe that product
offerings across banks are similar. The option of product diversification would likely be
an inefficient strategy. Many retail banks, therefore, may choose to expand into new
international markets. A retail bank considering international expansion faces several
obstacles including a lack of cultural awareness and understanding of the market, and
language differences that may hinder effective communication. One strategy retail
banks could adopt to overcome these obstacles is to target home country customers in
the foreign market. Although revenue can be enhanced by targeting similar markets,
careful analysis suggests that similarity alone is not sufficient to ensure success.

Customer needs are a function of their socio-economic status, culture, and the
environment of the country in which they are residing. Since these elements are
continuously changing, it will be necessary to adapt certain elements of the retail
banking marketing mix in order to create a more localized approach.

RETAIL BANKING MARKETING FRAMEWORK

A specialized section develops a conceptual framework of the marketing approach that
retail banks may pursue by drawing together the main themes from the retail banking
literature that focuses on the marketing mix and international strategies. Operating
within the services sector, the efficiency with which retail banks conduct their marketing
activities through the 7 Ps of the services marketing mix aids in creating customer
satisfaction. Results are presented in terms of the services marketing mix.

Product
When services offered match the needs of the target customer, satisfaction results.
When applied to retail banks, however, customers have been found to perceive little
difference between banks in terms of product offerings. A study found that the personal
relationships experience with their retail bank outweigh the services offered, and those
banks able to manage the customer experience stand a better chance to develop
relationships, denoting the lesser importance of product differentiation. Furthermore,
banks that enter into a new national market typically offer essentially the same banking
services provided by domestic banks.

Price
Customers are unwilling to pay a price that is perceived as unfair because of the impact
on their financial situation. Previous research has found that banks located in a
geographic region within which customers are able to switch banks maintain similar fee
structures. Furthermore, even though banks maintain divergent pricing policies across
countries, the overall structure manages to converge within a country, including
developed countries where the banks have focused less on pricing as a strategy leading
to competitive advantage. Because of the similarity of competitor offerings, customers
are not likely to switch banks regardless of any dissatisfaction with the pricing policies of
their current bank.

Place
There are several channels through which a bank may offer its services, including
branch networks, automated teller machines (ATMs), telephone banking, and internet
banking. Research within financial services supports the view that convenience is a
criterion customers utilize to select a bank so that they may easily conduct their banking
activities. Banks must consider such factors as target market lifestyle, experience, and
buying habits when deciding through which channels services will be offered, because
customers only adopt those innovations that offer benefits.

Promotion
Promotion is an essential component of a retail bank s marketing mix because although
people may purchase manufactured products from an unknown vendor, they will always
look for a trustworthy bank. Marketing communications, therefore, should maintain a
positive image of the bank and emphasize its financial strength. Value-added
promotions are increasingly a useful means of obtaining customer satisfaction. This is a
legal form of selling in several countries, and consists of offering the customer a gift for
purchasing a product or service. Direct marketing is an effective way to create a regular
dialogue with customers and update them on the latest offerings of the bank. Research
suggests that effective use of direct marketing to an existing customer base will likely
increase customer retention by at least 25 per cent.

People
Customers consider it important to have a relationship with their local bank; a study
found that it makes a difference in customer satisfaction. Strong relationships between
customers and bank personnel benefit the bank because they are difficult for
competitors to replicate. Several personnel-related characteristics are key in helping to
achieve customer satisfaction. These include ensuring the appropriate appearance of
staff by making certain that fitting attire is worn; the need for personnel to be sincere,
demonstrate enthusiasm in solving customer s problems, and appear to be committed
to giving their utmost performance; a requirement for personnel to be competent,
communicate efficiently, and handle conflicts satisfactorily; the need for personnel to
have the authority to make decisions, so as to allow for customization to the particular
needs of the client; perceived employee effort to reduce waiting times, and appropriate
employee interactions with customers (such as attempting to apologies when customers
must wait to be served) and finally, similarity of personnel with customers in terms of
appearance, lifestyle, social class, and education level. When personnel are similar to
customers, interpersonal barriers are reduced and trust is established. To ensure that
these elements are showcased by personnel, banks need to employ internal marketing
to define a culture that emphasizes how every service encounter with a client effects
satisfaction. Employee training should focus on educating service personnel about the

companys services, products, policies and practices, and providing them with the
necessary tools to solve customers problems and respond to requests efficiently.

Physical evidence
Research has found that the physical evidence at a bank branch has an influence on
customer satisfaction, likely because it is one of the few tangible elements available to
evaluate a banks offerings. Modern branch styles are most effective at producing
customer satisfaction since they tend to have more open layouts, a greater emphasis on
self-service terminals and technology infrastructure, glass frontages, greater space for
customers, and limited use of bandit screens. Larger windows are also present, and act
to promote the image and offerings of the bank. Some features inherent in modern
branch styles, however, are associated with customer dissatisfaction, such as the
increased presence of ATMs, and a clear view into the branch. It is thus crucial that a
bank evaluate the preferences of its target market when designing branches.

Process
Process in the services marketing mix refers to the systems used to deliver services.
Customers may not instantly switch banks after experiencing a problem during service
production, but may respond in the form of making a formal complaint. Customer
satisfaction in such cases depends upon the efficient and effective response of bank
personnel. Strategies for establishing and maintaining a robust service delivery process
are predicated on effective communication to develop shared understanding. This is
achieved by implementing an open dialogue with customers, resolving complaints
received, and keeping customers informed of changes to product and service offerings.
Banks need to signal commitment to the customer by showing responsiveness to their
changing needs and by investing in the relationship. For conflicts that arise on a day-today basis, it is important that personnel are empowered to take corrective action. In
unexpected circumstances, the bank should accept responsibility and where possible
offer compensation to the customer.

Strategy of ICICI Bank in Canada

Mode of entry
The Canadian government has established that foreign banks wishing to operate in the
retail banking sector need to enter either as a subsidiary or as a branch. 62 ICICI
Bank elected to enter as a subsidiary, a decision in uenced by several factors. Under
Canadian regulations subsidiaries are able to offer the full range of retail banking
services, allowing the Bank to act as a one-stop solution for the banking needs of new
South Asian immigrants. Foreign bank subsidiaries are also eligible for insurance

provided by the Canada Deposit Insurance Corporation. 62 Canada Deposit

Insurance Corporation (CDIC) is a federal Crown corporation that insures the savings of
Canadians (up to $ 100,000) in case their nancial institution fails or goes bankrupt.
63 Being insured with CDIC enhances the perceived trustworthiness of the Bank,
thereby enhancing its ability to attract market share. By entering the Canadian market
as a subsidiary, the Bank also has greater control over strategic decision making, which
allows for swift response to changes in the external market. 64 A strategy of organic
growth allows for autonomy in decisions pertaining to the marketing mix, which in turn
allows the Bank to differentiate its offerings from the competition. By attracting
customers at the early stages of entry into Canada, or as they are preparing to enter,
the Bank hopes to establish long-term relationships with clients, recognising their
banking needs will change as they integrate into the new society. The organic entry
mode allows the Bank to exploit the long-term potential of its investment in Canada.

International strategy
The international strategy of ICICI Bank in Canada resembles a transnational strategy.
The Writing Lab, located in India, is mandated to make a content quality check on all
written customer communication such as servicerelated responses to customers,
marketing communications, web content, internal promotional e-mails, and welcome
letters to customers sent when an account has been opened with the Bank. ICICI Bank
has implemented a policy for corporate branding entitled ICICI Bank Corporate Brand
Guidelines , which outlines the ways in which the ICICI Bank corporate brand name
and image may be utilised throughout the international operations. The policy helps
ensure a consistent brand image on all marketing communications. The subsidiary
monitors the local market environment to decipher emerging customer needs and
possible opportunities for growth. It then determines the appropriate marketing
strategies it would like to pursue (eg a campaign that promotes money transfer to India
versus a campaign to promote the mortgage business). The subsidiary also has
autonomy in prioritising campaigns. The transnational strategy allows ICICI Bank to
exploit core competencies throughout the subsidiary and parent rm. A centralised
policy for corporate branding, written communications, and creative development allows
the Bank to maintain cohesion with respect to maintaining a consistent brand image.
This allows the Bank to exploit the relationships it has developed with South Asians
back home. The autonomy given to the subsidiary in terms of determining appropriate
marketing strategies allows the Bank to respond to the needs of the local market.

Organizational factors

The human resource policy of the Bank is categorised as ethnocentric, whereby home
country personnel are selected for management jobs. 65 Bene ts of this approach
include enhanced marketing communications managers are largely familiar with the
culture and customs of customers and can implement effective marketing strategies,
and enhanced control employing home country nationals allows headquarters to
replicate its policies and practices. 66 Maintenance of control is necessary because
the subsidiary is currently in its early stages of growth and depends on headquarters for
direction with respect to corporate strategy. According to Hofstede s cultural
dimensions, 67,68 Canada is ranked as a society with a more individualistic attitude,
with the populace being more self-reliant and private. In contrast, India has a high
power distance and is more collectivist. Owing to such differences, it is likely that
employing Canadian managers could result in crosscultural con ict. The
disadvantages to this strategy are that exibility to new management approaches is
reduced, and training expenses increase because because expatriates are unfamiliar
with the Canadian environment. 69 To mitigate the risks, the Bank holds training
sessions throughout the year for new expatriate arrivals. These sessions are hosted by
Canadian consultants and provide an overview of the local business environment, along
with the areas where business practices differ between India and Canada.

Marketing framework of ICICI Bank Canada

Product
ICICI Bank Canada has positioned itself as a full-service bank by offering the full range
of retail banking products. The Bank has attempted to build relationships with new
South Asian immigrants by offering innovative products, such as the Hello Canada
account that allows immigrants coming to Canada to open a Canadian bank account
from a foreign country and transfer funds into the account prior to arrival. 70 A second
product, the Hello Canada Newcomers Account , permits customers to obtain credit
cards, and car and house loans prior to arrival. 71 ICICI Bank Canada targets this
market niche by recognising the credit history of the South Asian immigrants from their
home country. 70 These specialised products allow customers to access money upon
arrival, easing their transition to Canadian society. Although these products may seem
novel, further analysis reveals similar product offerings are available through other
Canadian banks. For instance, the Royal Bank of Canada has implemented a
Secured Visa Option that allows immigrants to build a credit history more easily. The
company has also launched an internet-based account opening procedure that allows
immigrants to deposit funds prior to arrival. 72 Thus, product differentiation is not the
primary basis through which ICICI Bank competes in the Canadian market.

Price

In order to attract new immigrants, the Bank promotes its money transfer business by
allowing customers holding a chequing account to transfer money to South Asia without
any charge. In comparison, ICICI competitor Bank of Montreal charges between $ 15
and $ 125 Cdn for wire payments. 73 This is a viable strategy because in the rst
few years after arrival customers are more focused on transferring money back home.
In order to maintain relationships with new South Asian immigrants during phase two of
the immigration lifecycle, the Bank maintains competitive prices for various investment
and mortgage products by offering a higher interest rate than other Canadian banks.
71,74 Speci cally, mortgages are priced lower, whereas investment products such as
term deposits and GICs are priced higher. Table 1 illustrates the interest rate offerings
of ICICI Bank Canada, as of 17th October, 2007, vis- -vis the average for major
Canadian nancial institutions. For each product, the price of the Bank is more
attractive than the average. The Bank s competitive pricing is made possible by the
cost savings it realises by retaining some of its workforce in India, where wages are
lower. While international banks such as HSBC and Citibank save approximately 30 per
cent by outsourcing low-end functions of data entry, call centre jobs, and payment
processing to India, ICICI Bank claims to save as much as 70 per cent with both lowand high-end jobs such as product innovation and technology development based in
India. 74 Additional bene ts to ICICI s pricing strategy can be observed. By offering
free money transfers, the rm creates customer satisfaction during the initial phase of
immigrants adjustment to Canada. Thereafter, competitive mortgages and investment
product pricings help maintain satisfaction during phase two. After this, immigrants enter
into phase three, by which time they have integrated and settled into Canada. At this
stage, the Bank has also been able to develop customer loyalty, and therefore,
customer switching is less likely to occur allowing the Bank to focus on other variables
to maintain satisfaction. Consider the pricing strategy the Bank pursues for traditional
banking products. From phase three of the immigrant lifecycle onwards, a savings
account or chequing account would be the primary focus. 76 At least one competitor,
President s Choice Financial, provides a higher interest rate on savings accounts and
charges no daily banking or account maintenance fees on chequing accounts. 77
Pricing is one variable through which ICICI Bank Canada maintains customer
satisfaction. By focusing on immigrants changing needs, the Bank is able to develop
customer loyalty with the aim of building relationships for the long term. The Bank, in a
sense, defers pro t taking until immigrants enter phase three when it is able to charge
more and not lose customers.

Place
The Bank offers its products through various channels. It has strategically established
seven branches in Canadian cities that have a prominent South Asian community.
24,74 Moreover, the South Asian population in these areas is expected to increase, 57
which makes the branch strategy viable and sustainable. The Bank has ATM machines
located at each of its branches which can operate in English, Hindi, Tamil, Punjabi,

Chinese, and French. 78 Operating machines in diverse South Asian languages

enhances customer satisfaction. Customers are also allowed to utilise ABM machines
with the Interac or Cirrus logo located worldwide. This is an excellent strategy for
satisfaction since it is likely that customers travelling to their home country will need
access to their accounts. The Bank offers credit card products, and clients are allowed
to transfer funds to South Asia via their credit card, enhancing customer convenience.
As a sales tactic, kiosks are placed at various South Asian grocery stores in the Greater
Toronto District. These kiosks are staffed by South Asian sales personnel whose
primary role is to attract customers to open accounts with ICICI. Although the
multichannel strategy enhances market coverage, customer convenience, and allows
for cross-selling opportunities, similar channels are also being pursued by other banks
to target the South Asian immigrant market. For instance, the Canadian Imperial Bank
of Commerce (CIBC) has located several branches in South Asian neighbourhoods and
also offers ABM services in ethnic languages. 79 Bank of Montreal is also increasing
branch penetration in the ethnic communities to deepen relationships with the local
population. 80 Thus, channel of distribution alone is not a key source of competitive
advantage and is largely utilised as the foundation to enhance market penetration and
customer convenience.
Promotion
A strong corporate identity is seen as an effective means for differentiation in retail
banking. 81 The Bank creates and maintains a strong image through marketing
communications and event sponsorship. To create a trustworthy image, ICICI Bank
Canada showcases Shahrukh Khan, a wellknown Indian actor, in its marketing
communications. Khan is currently ranked as one of the most famous and in uential
celebrities in South Asia. Since the target markets of the Bank are those people
preparing to immigrate, and those that have recently immigrated, the audience is largely
familiar with, and likes, the actor. This makes ads featuring Khan both persuasive and
effective. 82 Research on the use of celebrity endorsers nds that the symbolic
properties of the celebrity are transferred onto the product, and thereafter onto the
customer. 82 Shahrukh Khan is believed to embody the Indian winning spirit in terms
of energy and innovation. 83 This image may t with the aspirations of the audience
as they migrate to a new nation. In addition, the Bank is able to utilise Shahrukh Khan
in the explicit mode of I endorse this product . For instance, as a commercial on
money transfers to India concludes, the actor states, Take my word for it . Utilising a
trustworthy source enhances the trustworthiness of the product, implying that it is safe,
secure, and stable. 84 The Bank emphasises television and radio in its promotion
strategy. These media are effective for image advertising because they enhance
awareness and improve customers attitudes toward the advertiser. 37 In print
advertisements, the headline and illustration are emphasised, highlighting Shahrukh
Khan and providing a broader appeal. 37 The ads are large sized, which has the
effect of making the audience feel that the Bank is stronger and large and hence
trustworthy. 37 The Bank s membership in CDIC is also stated, adding to the

credibility of the Bank. ICICI Bank also sponsors various highbrow South Asian cultural
events. Immigrants who are in phase two and onwards would be attracted to these
shows, because they have the nancial capability and leisure time to attend. Linking
the event experience to the brand results not only in favourable publicity and increased
brand awareness but also enhanced brand image, 85,86 as an impression of
sophistication and seriousness is formed. 87
Participants
There are three primary ways through which the Bank ensures that personnel are
competent, communicate effectively and reliably, and handle con icts satisfactorily.
First, upon selection, personnel are exposed to various materials outlining the bank s
history, industry overview, market reach, and strategy. Second, training and guidance
are given on a regular basis to existing employees, so as to instil a culture focused on
customer satisfaction. And nally, an internal marketing programme has been
implemented which consists of distributing internal newsletters to update staff on the
latest company developments, future objectives, and success factors for customer
satisfaction. Similarity of personnel with clients also effects customer satisfaction. The
Bank recruits South Asian personnel and ensures that as a whole the staff speaks
various South Asian languages such as Arabic, Gujarati, Hindi, Punjabi, Tamil, and
Urdu. 70 This raises comfort levels, 70 and helps in changing attitudes and opinions
of the clients. 46 Other Canadian banks, however, also recruit ethnic personnel in
order to attract ethnic markets. For example, Toronto Dominion Bank ensures that the
branches located in communities with high ethnic populations are staffed with personnel
able to speak minority languages, 72 and CIBC pursues a similar strategy. 78 These
examples illustrate that the element of personnel on its own is not likely to allow ICICI to
achieve differentiation.
Physical evidence
Several components of the Bank s branch environment enhance its competitiveness.
Branches have a fairly modern layout with open-space designs and limited use of bandit
screens. Spacing between the desks is suf cient to ensure privacy. These elements
help to enhance perceived trustworthiness, prevent robbery / fraud, and serve to reduce
emotional stressors. Brochures and posters featured in branches focus primarily on
money transfers and investment products. This is in contrast to other Canadian banks,
where posters designed to support cross-selling activities focus primarily on traditional
retail banking products.
Process
Although ICICI strives to perform its activities accurately, customers may sometimes
experience a problem during the service process. Upon receipt, complaints are
reviewed by the Customer Service Group located in India, who strive to address the
issue within two to three business working days. In case the issue needs a localised
response, it is transmitted to the Customer Service Team located in Canada. Customers

may be compensated for an error whose fault lies with the Bank. And in cases where
the customer has signi cant business with the Bank, a gift may be offered and senior
managers may also get personally involved. These gestures show that the Bank is
trustworthy and has accepted responsibility for its faults, 53 and allow stable
relationships to be built. 88 To summarise, ICICI Bank is able to leverage its cultural
insights and knowledge so as to successfully attract the South Asian immigrant market
in Canada. To create the foundation for sustainable growth, the Bank established itself
as a subsidiary, operating as a full-service bank and maintaining autonomy in key areas
of strategic decision making. An ethnocentric staf ng policy maintains control with the
parent rm, necessary as the subsidiary is still in its early stages of growth. In terms of
the services marketing mix, the product variable has been found to not be a source of
differentiation. On the other hand, place and personnel are variables through which the
bank is able to enhance market penetration and customer convenience. In order to
attract and retain customers, the primary differentiators are pricing, promotions,
processes, and physical d cor. Speci cally, a competitive pricing strategy allows the
Bank to attract its target market at its early stages of entry into Canada, creating the
opportunity to form long-term relationships. By emphasising the trustworthiness of the
Bank in promotions, and establishing stringent processes for addressing customer
complaints, the Bank is able to maintain clients. In terms of physical d cor, use
facilitators and the presence of ICICI Bank brand name and image, allow for customer
attraction and cross selling, while modern branch styles help in enhancing
trustworthiness and prevent robbery / fraud. The strategic blend of these elements
allows the Bank to achieve customer satisfaction, which in turn generates loyalty and
bank pro tability. The following model summarises the ndings from this section