SWOT analysis of the marketing management environment of state-owned commercial banks

Abstract: Marketing environment analysis is the key to successful marketing of commercial banks. Analyzing the marketing environment faced by my country's commercial banks and clarifying the opportunities and challenges as well as the advantages and disadvantages faced by commercial banks is crucial to improving the effectiveness of marketing management of my country's commercial banks.

Keywords: Marketing Management of Commercial Banks

1 Analysis of Environmental Opportunities for Marketing Management of State-owned Commercial Banks

Market opportunities are the focus of marketing management of commercial banks , and also provides the fundamental survival motivation for commercial bank marketing management. Only by being able to distinguish opportunities and seize them can commercial banks remain invincible in the fierce market competition.

1.1 The macroeconomy is operating well and the politics is stable. In the more than 20 years of reform and opening up, China’s economic development has made great achievements that have attracted worldwide attention. In terms of economic aggregate, China's GDP was 10,965.5 billion yuan in 2001 and reached 18,232.1 billion yuan in 2005. Rapid economic growth has greatly improved China's productivity level and national strength. In 2005, China's economy surpassed Canada and Italy to become the sixth largest economic power in the world. It is predicted that in 2010, it will rank fourth in the world, second only to the United States and Japan, and equal to Germany. After more than 20 years of reform, opening up and rapid development, the market supply and demand pattern, economic system environment and foreign economic relations have all undergone major changes. These changes have created good opportunities for the development and marketing activities of my country's commercial banks.

For commercial bank marketing, the next 20 years will be another rare strategic opportunity for the healthy operation of China's politics and economy. Taking the 16th National Congress of the Communist Party of China as a new starting point, our country has entered a more practical and comprehensive period of building a moderately prosperous society and an adaptation period for joining the world organization. Basic industries and infrastructure will continue to maintain growth momentum, the pace of urbanization will accelerate, the regional economy in developed areas will be further consolidated, and the development of the western region will continue to make greater progress. All these have created huge business opportunities for my country's commercial banks to expand the market.

1.2 Small and medium-sized enterprises are facing good development momentum. Enterprises are the most important customers of commercial banks, and establishing a stable bank-enterprise relationship is the key to commercial bank marketing activities. Analyzing the development status and trends of enterprises in our country, state-owned enterprises are still the focus of marketing for state-owned commercial banks. However, in addition, in order to open up the enterprise market, both state-owned commercial banks and small and medium-sized joint-stock commercial banks should turn their marketing attention to small and medium-sized enterprises. and private economy. For commercial banks, this is a market with huge potential. At the same time, the growth of the non-public economy also requires a large amount of financial support and requires financial institutions to actively provide financial services. This provides an excellent opportunity for my country's commercial banks to expand their business market space in marketing.

1.3 The rapid development of emerging industries and advantageous industry markets In the next 20 years, the country will gradually accelerate the adjustment of economic structure and increase policy tilt to promote emerging industries and advantageous industries in the era of knowledge economy rapid development. Generally speaking, emerging industries include industrial groups such as information industry, biology and medicine, new materials, new energy, environmental protection industries and other emerging industries. It has a broad market space and huge potential that is difficult to estimate, and has attracted many attentions. focus on. At the same time, the country's structural adjustment and macro-control have also accelerated the development of some industries. For example, the cancellation of in-kind welfare housing allocation and personal housing credit have promoted the development of the real estate industry and the building materials industry. The country's focus on agricultural industrialization and rural urbanization has also vigorously promoted the development of related industries. At present, the scale of foreign investment in China is constantly expanding. The demand for bank credit in education, scientific research, culture, health, press and publishing, etc. is increasing. The interbank market, securities market, fund market, insurance market, futures market, gold market, etc. have entered During the period of rapid development, the space for cooperation between banks and relevant market entities has expanded. All these provide good development opportunities for the marketing of my country's commercial banks.

1.4 The resident consumption market has huge potential. Judging from the changes in the resident consumption structure, the resident Engel coefficient is declining year by year. In 1998, the Engel coefficient of rural residents was as high as 53.4%, still in the poverty stage. In 2005, it dropped to 45.5%, and they began to move towards a moderately prosperous society. In 1998, the Engel coefficient of urban residents was 44.5%, which dropped to 36.7% in 2005, moving from well-off to wealthy.

On the other hand, the savings deposits of urban and rural residents are growing rapidly. As shown in the figure, my country's current personal consumption market is still in its infancy. As residents increasingly begin to accept credit consumption, installment consumption, and credit cards, As consumption concepts such as overdraft and advanced consumption mature, the marketing potential of the personal consumption market will be huge and should become a main marketing direction of Chinese commercial banks in the future.

Data source: Statistical Bulletin of the People's Republic of China on National Economic and Social Development in 2005, February 28, 2006

The balance of RMB savings deposits of urban and rural residents during the "Tenth Five-Year Plan" period and Growth rate

1.5 The international business market has been further broadened. On December 11, 2001, my country officially joined the World Trade Organization. Economic and financial globalization has also placed China in an open global system through the basic framework of the WTO. middle.

China's capital, goods, materials, and trade will have freer access to the world market, and China's economy will be full of vitality due to the expansion of the market. At the same time, foreign capital and commodities will enter the Chinese market faster, which will bring fierce competitive pressure to China's domestic market economy entities while giving China's economic vitality.

Through various exchanges and cooperation with foreign enterprises, financial institutions and government departments, the rapid increase of foreign-funded enterprises and Sino-foreign joint ventures will make domestic commercial banks face new corporate customer groups. On the other hand, opening up to the outside world has also accelerated the development of international business of domestic commercial banks. So far, my country's four major state-owned commercial banks have carried out international business to varying degrees.

2 Analysis of threats to the marketing management environment of state-owned commercial banks

Economic and financial globalization and my country's accession to the WTO have caused profound changes in the marketing environment of my country's commercial banks. While facing more development opportunities, it also faces great threats.

2.1 Challenges of foreign commercial banks Under the WTO framework, the geographical restrictions on foreign banks setting up branches in China are gradually being lifted. The speed of foreign banks entering the Chinese market will be further accelerated, which will have a negative impact on the business development of Chinese commercial banks. It poses a huge threat: First, foreign banks will compete with domestic commercial banks for funding sources. Secondly, foreign banks have obvious advantages in foreign exchange business and international business. Since foreign-funded banks have strong financial strength, flexible service methods, extensive global distribution networks, high levels of bank marketing management, and perfect systems, many international settlement businesses and foreign currency businesses with profit growth points will be lost to foreign-funded banks in the future. . In the short term, foreign banks will compete for a considerable portion of the foreign exchange market. Finally, foreign banks will compete with Chinese commercial banks for human resources. At present, the wages of Chinese commercial banks are much lower than those of foreign banks, and foreign banks also provide employees with opportunities to train abroad. The employment system is flexible, competition is fair, rewards and punishments are clear, and talents have many opportunities and space to display their talents. This will inevitably As a result, much of the business of Chinese commercial banks has flowed to foreign banks.

2.2 Limitations of business philosophy and mechanisms Table 1 shows the comparison of the business philosophy and mechanisms of Chinese commercial banks and foreign banks. Under the planned system, the separate operation system of my country's commercial banks has played a good role in rectifying the financial order, protecting the interests of investors, improving the overall efficiency of the financial system, and preventing financial risks. However, from a practical point of view, the separation of banks will lead to a lack of operating means, limited space for business expansion, and concentrated operating risks. Under the WTO framework, coexistence with the mixed operating system of foreign-funded banks is not conducive to Chinese commercial banks' flexible and effective asset portfolio and risk diversification, and the establishment of internal stability mechanisms; it is not conducive to banks' entry into international market competition and the formation of certain advantages in the international market. Banking Enterprise Group. If my country's separate operation and management system is not reformed, the mixed operation of foreign banks will pose a huge institutional challenge to the development of Chinese commercial banks.

Table 1 Comparison of the business philosophy and mechanisms of Chinese commercial banks and foreign-funded banks

Chinese commercial banks and foreign-funded banks

Supervision model: separate operation and mixed management Business operation

The main branch branch system of the operation management system focuses on network management

The standard total assets for determining the size of the bank and the bank's tier-1 capital

The business philosophy is based on Bank-oriented, sales-oriented Customer-oriented, sales-oriented

Business focus: deposit deposits and loan disbursement: key customers

Loan guarantee method Third-party guarantee of borrower's credit and economic strength

Data source: Hu Haiou et al. "Comparison of the operating concepts and mechanisms of Chinese and foreign banks", "City Finance News", January 20, 2002

2.3 Shrinking operating space and spread space From the perspective of operating space, non-bank financial institutions and The development of the securities market will bring about tremendous changes in social financing channels, which will inevitably lead to further shrinking of the operating space of commercial banks. On the one hand, my country's non-bank financial institutions have developed rapidly. The development of these non-bank institutions has diverted a large portion of social funds, further shrinking the funding sources of commercial banks. With the further development of non-bank financial institutions, this shrinkage will gradually deepen. On the other hand, my country's securities market is in the process of continuous deepening and development. In the past 20 years, my country's securities market has developed rapidly. Therefore, bank loan business will inevitably shrink with the increase in financing channels. This poses a huge challenge to the business operations of Chinese commercial banks that mainly focus on traditional business. According to a summary of the National Urban Depositors Questionnaire Survey by the People's Bank of China in the fourth quarter of 2006, residents' intention to save has weakened and bank deposits have tended to be short-term. In addition to stocks, the number of residents purchasing financial assets such as treasury bonds, insurance, and funds has increased significantly. One fifth of residents have purchased financial assets such as government bonds, insurance, and funds. Residents intend to change the existing financial asset structure and further increase the proportion of investment.

To sum up, only by analyzing the macro and micro environmental changes in the economy and finance can commercial banks firmly implement the bank's marketing management work. Firmly grasp strategic opportunities and our own advantages, seek advantages and avoid disadvantages, and enhance the systematic, forward-looking and successful nature of marketing management.

Reference materials:

1 China National Power Report [M]. China Times Economic Press, 2005, pp. 1:23-24

2 Hu Haiou. Comparison of operating concepts and mechanisms of Chinese and foreign banks [J]. City Financial News, 2002,1,20