A COMPARATIVE STUDY OF MARKETING STRATEGIES FOR EXIM BANKS OF JAPAN AND CHINA

Сафари М.Н.

 Аспирант, каф. «Маркетинга и Коммерции», «Московский государственный университет экономики, статистики и информатики»

СРАВНЕНИЕ МАРКЕТИНГОВЫХ СТРАТЕГИЙ ЭКСИМ БАНКАМИ ЯПОНИИ И КИТАЯ

Аннотация

В данной работе исследуются маркетинговые стратегии ЭКСИМ банков в Китае и Японии. ЭКСИМ банк поддерживает экспорт. Главное внимание уделяется на то, что какие разницы и сходства среди их маркетинговыми стратегиям. Исходя из этого, рассмотрены их годовой учета в течении 1994-2013 гг.    

Ключевые слова: Экспорт, комплекс маркетинга, банковский маркетинг, смешанная модель ЭКСИМ банка

Safari M.N.

Department of Marketing & Commerce, Moscow State University of Economics, Statistics and Informatics (MESI)

A COMPARATIVE STUDY OF MARKETING STRATEGIES FOR EXIM BANKS OF JAPAN AND CHINA

Abstract

China and Japan are among the successful countries in exports, not only in Asia, but in the whole world. Exim bank plays an important role in this domain as a government assistant for supporting exports. The objective of this study is to find out similar and different strategic points between these countries by performing a comparative study of marketing strategies for Exim banks of the two countries. To achieve this, marketing strategies for each of the banks were studied during the time period of 1994-2013 using their annual reports.

Keywords: Export, Mix marketing, Marketing of banking services, Compound model of EXIM bank

Introduction

EXIM Bank is the result of development and its main purposes are permanent and dynamic development, continuous employment through export increase. In compound model (activities of EXIM Bank, insurance companies and export guarantee at the same time), the financial units of export should act as the bases of development and perform the policies of country regarding the support for exports. This is the most commonly used model in Asian countries such as Japan and China. It is evident that each bank has its own marketing strategies based on 7Ps of marketing mix that consist of: product, price, place, people, promotion, process, physical evidence. Unfortunately, we couldn't find any studies related to this subject, but some literature reviews regarding Exim bank and marketing strategies for banks services are as follows: Anahita Baghizadeh and Molouk Partoy Shafagh [3] have performed a study regarding the   examination of EXIM Bank role in export development (the office of monetary, commercial and financial policies research). They showed that EXIM Banks are the results of development and that the countries which have not achieved their goals in this regard support the industries and services they are good at. The main purpose of EXIM Bank establishment is to achieve stability and improve employment that takes place in a compound manner in Iran. By Oke & Micheal Ojo [4] in the paper Marketing Strategies and Bank Performance in Nigeria: Post –Consolidation Analysis, were studied the impact of marketing strategies of different banks on their performance was studied. Fredrick onyango Ali & Patrick B.Ojene , e.l. [7] have performed that, While formulating marketing strategy, a bank should focus attention on consumer sovereignty, attitude receptiveness and personal skills of bank staff, revitalizing the marketing department and participation of marketing personal in key bank decisions.

Methodology

The type of this study is descriptive and the comparative study of marketing strategies for Exim banks of Japan and China was performed using available statistics and library studies and also interview with experts. 7Ps of marketing mix was used for studying marketing strategies of this research.

1. Marketing strategies for Exim bank of Japan

Nippon Export Insurance (NEXI) undertakes the insurance underwriting, while Japan Bank for International Cooperation (JBIC) is responsible for financing.  EXIM bank of Japan or JBIC was founded in 1950. [6]

Marketing strategies of this bank include in based 7p: Place: This bank pays special attention to establishing relationships with countries that are rich with natural resources such as Middle East countries with which Japan has strategic relations.  The major services of this bank are provided to the developing countries in Middle East, after that comes Americas, Asia and Europe.  Overseas branches are located in countries with which Japan maintains favorable business relationships. This bank has a total of 18 overseas branches, the least number of which are located in Africa. [2] Product: Bank's main focus in this regard is overseas investment, warranty service, financing exports and imports (respectively). In addition, this bank has done various researches on Islamic banking and provides the results through seminars, etc., for everyone. Other activities of the bank consist of consulting services for investments and import regulations of the other countries. [2] Promotion: The bank's major strategies for this domain are as follows: Relationships with foreign banks, conducting seminars, meetings and contract ratifications with other Exim banks, supporting environment and climate changes through private sector financing and encouraging this sector for investment in this domain, performing charities in poor countries such as Bangladesh, providing research facilities for students interested in foreign economic policies of Japan. [2] People: The bank has standardized staff and retiree salaries with regards to the economic condition, which is an application of internal marketing. [2] Process: With respect to management and information system necessary for providing services, bank pays considerable attention to maintaining security of the electronic banking system. [2]

2. Marketing strategies for Exim bank of China

The EXIM bank of China was founded in 1994. The Bank’s main mandate is to facilitate the export and import of Chinese mechanical and electronic products, and assist Chinese companies in their offshore contract projects and outbound investment. It also aims to promote Sino-foreign relationships and international economic and trade cooperation. This bank is responsible for financing, and SINOSURE undertakes insurance. [5]

Marketing strategies of EXIM bank of China include in based 7p: Place: This bank has three branches overseas and the number of branches have stayed the same for a long time. However, the bank pursues the expansion of its market in compliance with the economic policies of the government for avoiding global crisis. [1] Product: One of the priorities of the bank is financing the environment. In addition, it encourages agriculture and tourism industry that possess export potential. Along with China's economic development, the bank is shifting from supporting exports to supporting both imports and exports. [1] Promotion: It is also trying to increase the number of customers by providing services based on the culture of honesty and helping the globalization of Chinese culture. Other major strategies of the bank are as follows: Charity works, conducting seminars and meetings with the intention of introducing bank in the society, organizing social plans such as concerts, spreading charity works and sacrifices in the society, fighting poverty, establishing relationships with other banks and institutions within and outside China, expanding international relations in order to create international influence. [1] People: In this regard, bank considers internal marketing which includes human resource management. The bank is correcting employee selection system, salary system, productivity measures, and job promotion rules. Furthermore, it puts special emphasis on educating the staff using modern educational approaches. The bank also encourages the staff to join seminars, competitions, etc., in an attempt to develop working culture and increase job satisfaction for them. To achieve this, the bank uses human resource management database. [1] Process: It is developing IT and the infrastructure for security of the systems and also improving IT implementation for risk assessment and electronic commerce. The bank also adjusts its internal structure with China's international economic activities. [1]

Comparative study

• Place: Exim bank of China has only 3 branches overseas, the number of which has been fixed for a long time. Whereas, Exim bank of Japan has a total of 28 branches overseas. In other words, contrary to Japan's Exim bank, Exim bank of china does not feel the need to establish and increase its branches in China's export markets.
• Product: Concentration on financing imports along with exports, is the common point between the two in this domain. Exim bank of Japan is more focused on consulting services for exporters in relation to the Japan's target countries for exportation. On the other hand, Exim bank of China is more focused on potential exportation skills of China such as agriculture, tourism, and so on. In other words, the perspective of Japan's Exim bank is to take advantage of international markets capacity and the perspective of China's bank is to optimally use domestic capacities for increased exports.
• Promotion: In this section, China's Exim bank implements the strategy of developing relations with other Exim banks, banks, etc., similar to the Japan's Exim bank strategy. But in case of charity works, Japan's Exim bank performs them more in poor countries such as Bangladesh, unlike China's bank, which focuses mostly within domestic boundaries. Exim bank of Japan also pays considerable attention to researches on international markets.
• People: Internal marketing, and correcting salary system, etc., are among the common strategies of the two banks.
• Process: Both banks put emphasis on implementing IT and providing security of the systems.

Finding

Marketing strategies for the two Exim banks of the two successful countries have a lot in common. But the main difference between the two banks is that Japan's Exim bank pays special attention to overseas and international markets capacity; number of overseas branches, charity works performed overseas, emphasizing research on different markets such as Islamic banking, etc. However, China's Exim bank focuses mostly on domestic matters and export capacities of China for accomplishing its mission. Comparing marketing strategies of the two countries demonstrates that Exim bank of China is more affected by government policies than its Japanese counterpart, which is understandable considering the communism system in China.

References

1. Annual report of EXIM bank of China (1994-2013)
2. Annual report of EXIM bank of Japan (1994-2013)
3. Baghizadeh A.  Partoy Shafagh M. The role of EXIM Bank of export development // monetary research and policies forum, commerce and services, 2002
4. By O. Ojo M. Marketing Strategies and Bank Performance in Nigeria: Post –Consolidation Analysis // Research Journal of Finance & Accounting, 2012, -№ 5.- vol.3. -P 93-103
5. EXIM bank of china (http://eximbank.gov.cn/en/)
6. EXIM bank of Japan (http://www.jbic.go.jp/en)
7. Fredrick O. A. Patrick B.O., e.l. Influence of promotional strategies on banks performance // International Journal of Business, Humanities and Technology, 2012, -№.5. –vol.2. -P 169-178
8. Rasoulian, M. Conventional models of EXIM Banks and Optimal Model for Iran //Sadat Hejazi, 2012