Bank of China Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Bank of China through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Bank of China Product Strategy:
Bank of China is one of the biggest Chinese banks, which is owned by the government. Bank of China offers various financial services in its marketing mix and is a platform which is comprehensive. Bank of China offers investment banking, asset management, insurance, commercial banking options, aircraft leasing facilities which cater to the complex needs of customers. Despite not being a central bank, the Chinese government has given a license to the Bank of China to issue banknotes but only in two Chinese Special Administrative Regions. Now the bank issues notes to Macau as well as Hong Kong while until 1942 it issued only to the Chinese Republic.
Image: Wikimedia
This concludes the product strategy in Bank of China marketing mix & strategy.
Bank of China Price/Pricing Strategy:
Below is the pricing strategy in Bank of China marketing mix strategy:
With pricing becoming extremely relevant for retail as well as corporate banking industries, Bank of China has remained at the top of the game by strategically using pricing models best suited for international trade, overseas demand of services as well as keeping prices competitively low for local markets and mainland Chinese operations. Technology has definitely helped in bringing cost of capital down, requirement of less employees for the same amount of working and overall increasing cost effectiveness, which helps in charging much lower prices than competitors for the same services.
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Bank of China Place & Distribution Strategy:
Following is the distribution strategy in the Bank of China marketing mix:
Bank of China has a strong geographic reach. In terms of global activity, Bank of China is the most active of all Chinese banks. Bank of China has branches spread out in all habited continents and in totality operates in over 27 countries. Major businesses come from the following countries Australia, UK, Canada, Ireland, France, Russia, Germany, Italy, Luxembourg, Panama, Hungary, United State, Brazil, Japan, Taiwan, Singapore, Philippines, Thailand, Bahrain, Indonesia, Kazakhstan, Zambia and South Africa, and an office in the Cayman Islands.
All these show how critical the place strategy in its marketing mix has been to become a leading global bank.
Bank of China Promotion & Advertising Strategy:
The promotional and advertising strategy in the Bank of China marketing mix is as follows:
Bank of China’s aggressive promotional strategies and advertising campaigns helps it achieve the accelerated growth it is known for. Bank of China relies on ad concepts which are more visual than contextual. For example it poster ad for a new dual credit card scheme shows a kangaroo and a panda, which symbolize China and Australia. It also ran successful ad campaigns both in print as well as digital media to promote its one card two currencies scheme. Bank of China uses all forms of media like TV, print, online, billboards etc to create a strong brand awareness.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Bank of China.
Process:
As a banking institution, Bank of China strives to expand cooperation with major financial counterparts which assists in product development and also for the inter bank transfer of credit assets of corporates. Bank of China’s worldwide presence and cooperative associations helped it to launch financial services around accounts receivables, for export credit insurance, cargo pledging finance and undisclosed forfeiting and factoring of bank guarantee bills. Joining SWIFTs Trade Services Utility it is keeping up with the mainstreams settlement methods which are constantly changing. By assisting in changing the models on which SME’s based their businesses and by imbibing practices that domestic and the counterparts present overseas use. They also wish to improve the experience strategic investors go through by the revision of credit policies and also easing of loans dispensed for SME’s
Physical Evidence:
Bank of China’s main physical evidence for customers are its branches which are spread across globally as well as within China. Based on various aspects of financial models on which the Bank of China operates it integrates its clearing resources, it became a one of its kind bank in mainland China to combine full payment in services provided by correspondent banks and overseas banks without deduction. With a huge number of offices spread across 27 countries, Bank of China is a well known in the banking and finance sector as one of the most dependable banks. Its ‘Taiwan Remittance’ helped it expand exponentially to overseas market.
People:
With 300,000+ employees, Bank of China has a big manpower force to help it not just sustain but also grow. Attracting the right talent, employing good retention strategies and focusing on better than industry standards for compensation and benefits is key to organizational growth. While Bank of China did face retention challenges in the past, proactive talent management policies have helped it retail its best employees. Its global network of service has attracted the best pool of talent from across the globe. Hence, this summarizes the marketing mix of Bank of China.
About Bank of China:
Bank of China is amongst the top five state owned banks of China. As a replacement to the Imperial Bank of China, in 1912, it was founded by the Republican Govt in mainland China. On behalf of the Chinese government, it issued banknotes along with the other major 4 banks of China including Farmer’s Bank of China, Central bank of Republic of China, Bank of Communications.
Headquartered in Xicheng District of China it was the 2nd largest bank to lend money in China while standing at no 5th worldwide in terms of market capitalization. Bank of China is also the 3rd highest proportionately in terms of interest payable to Chinese companies.
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