On the partial fulfillment of 4th semester of

POST GRADUATE DIPLOMA IN BUSINESS

MANAGEMENT
AT
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)

1
 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

2
 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 GUPTA
SHIVI SAXENA
SHIVENDRA SINHA
SHUBHAM CAHWLA
SIDDHARTH AGARWAL
SMRITI GAUTAM
SONAM AGRAWAL

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Content

1) Introduction to Internal Marketing 5

2) Foreign Banks in India 10
3) About HSBC 14
4) Internal Marketing in HSBC Bank 14
5) About American Express 17
6) Strategies for internal marketing in American Express 25
7) Conclusion 27
8) 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.
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.

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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
‘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

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'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
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

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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
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.

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 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 Words

One 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.
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.

10
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 product
Technology & 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
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 and
custody - franchises, Deutsche Bank has since 2003 gained significant market share in
on-shore investment banking, institutional equities broking, asset and private wealth

11
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 financial
Services 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 restoration
And 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 invited
to 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” by
Asia 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 the
Promotion 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.

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.

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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
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,

13
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
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.

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 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

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.

15
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.

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

16
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

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.

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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 customer
2) Appointment
3) Meet customer
4) Documentation
5) Employee back to office
6) Prepare Dispatch
7) Send an E-mail to the processing department
8) Verification
9) Dump (rejection)
10) Card Approval
11) Card Issue
12) 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.
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.

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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

dirddied
dD

Vice
president

Business Head

Channel manager

Sales Manager

Asst. Relationship Manager

Relationship Officer

Internal Marketing In American Express Bank

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

people :

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 CUSTOMER

TELE - RELATIONSHIP
CALLERS 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.

21
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 - Targets
M – 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

22
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:

23
  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

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  centers for customers to contact for information or queries
 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

25
The Bank shall comply fully with the letter and spirit of laws designed to preserve
free and open competition

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 all
customers 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

26
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
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

27
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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