THE MARKETING-MIX FUNDAMENTALS
Marketing concept
In the age of Internet boom, Marketing is also used to abuse the term Internet
Marketing, Facebook Marketing, Online Marketing But the intrinsic nature of it has largely vanished
Constant exposure to advertisements across various media—such as television, newspapers, and pamphlets—has led to widespread frustration among consumers These promotions often present enticing information about products, yet many customers ultimately receive subpar quality items As a result, marketing can feel deceptive, leaving consumers disillusioned and wary of promotional tactics.
This has little impact on true marketers and marketing strategies that really benefit the customer How to understand and apply Marketing properly?
Marketing Mix (Marketing Mix): Marketing mix is a set of controlled variables of marketing that the company uses to try to get the desired response from the target market.
So, in conclusion, according to Phillip Kotler, Marketing is about working the market to make exchanges that meet the needs and desires of the people.
Marketing Mix concept
According to Phillip Kotler, Marketing - mix is a combination of control elements that businesses use to influence the target market to achieve the planned goals The elements are:
The product encompasses all offerings a company presents to the market, including decisions on type, size, quality, design, packaging, branding, functionality, and services, all aimed at fulfilling customer needs.
Price refers to the monetary amount a customer pays to acquire and utilize a product or service Effective pricing decisions encompass various strategies, including pricing methods and adjustment tactics that respond to market fluctuations and consumer behavior.
Lung distribution involves the strategic delivery of products to customers, which encompasses selecting and establishing distribution channels, organizing and managing these channels, and fostering relationships with intermediaries Additionally, it includes logistics aspects such as transportation and storage reserves to ensure efficient product availability and delivery.
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• Promotion: Promotion is the activity to inform the product, convince the specialty of the product, build the image of the company and the program to encourage consumption.
The role of marketing-mix in the business
To succeed in business, businesses and entrepreneurs need to have a thorough understanding of the market, the needs and wants of customers, and the art of business conduct.
In today's competitive landscape, businesses face constant challenges due to rapid advancements in technology, evolving regulations, and shifting consumer loyalty Companies are engaged in a relentless race, navigating a path filled with unpredictable changes and no clear endpoint To succeed, they must pause and assess their direction, ensuring they are making strategic choices in an environment where victory is fleeting.
The marketing mix is a vital system of tools that businesses can control to influence and attract customers, playing a crucial role in the flow of goods and services from production to consumption In today's complex business landscape, leveraging the marketing mix is essential for success, as it empowers companies to effectively engage customers and outperform competitors A deep understanding of the marketing mix equips businesses to navigate customer interactions wisely, ultimately enhancing their market presence and long-term benefits.
Marketing mix is very powerful for the belief and lifestyle of consumers.
Thus, business people find ways to satisfy the desires of consumers, create products and services at a price that consumers can pay.
The marketing mix encompasses a wide range of factors, including price formation, inventory management, packaging, branding, and sales operations It also involves credit and shipping marketing, social responsibility, retail options, consumer analysis, and the selection of buyers and sellers Additionally, advertising, social relationships, marketing research, product planning, and warranty considerations are integral components of the marketing mix.
The most important job of marketing mix is to create value for customers, make commitments, bring customer satisfaction and create customer loyalty.
The marketing mix serves as a strategic tool that guides product development by aligning it with customer desires and needs Often described as the "voice of the customer," the marketing mix plays a crucial role in ensuring that businesses effectively address what their customers truly want.
The graduation internship topic focuses on the development and execution of processes aimed at understanding customer needs This approach enables the company to deliver high-quality products and services that effectively meet customer expectations.
In today's market, customers wield unprecedented power, influencing when and where they engage with products and services This shift has resulted in increased choices for consumers, leading to decreased brand loyalty as they turn to personal research, friends, and experts for information Consequently, businesses must adapt their marketing strategies, altering how they communicate and connect with customers, while also navigating the evolving landscape of product commercialization.
The internet has profoundly transformed the global landscape, presenting both opportunities and challenges for businesses One of the primary challenges for companies is the need to innovate and enhance their product offerings to stay competitive in this evolving digital environment.
Developing successful products and services requires not only innovative ideas but also a deep understanding of customer needs Many businesses struggle to align their concepts with market demands, resulting in premature product launches Customer insights are crucial for product success, as they inform the synthesis of market demand and the creation of solutions that address those needs By maintaining confidentiality around marketing strategies and consumer behavior, companies can enhance their marketing mix, positively influencing innovation and product development The process involves transforming customer insights into viable business ideas, which are then developed into new products Ultimately, creating products that resonate with customers significantly increases the company's value.
Long-term success hinges on the ability to innovate, as it is essential for maintaining a product's relevance in a competitive market While investing is profitable, innovation acts as a catalyst for growth by enabling companies to penetrate new markets This strategic approach not only fosters rapid expansion but also lays a robust foundation for sustainable development and enhances the potential for high returns on reinvestment.
The marketing mix is crucial for transforming customer insights into innovative products and services, effectively positioning them in the market As customer preferences evolve, companies must adapt and innovate to meet these changing demands, driving competition The primary function of the marketing mix is to identify and address customer needs, ensuring that businesses remain relevant and competitive.
The role of graduation internship projects is crucial in driving innovation, as many Chief Marketing Officers (CMOs) have acknowledged the evolving significance of the marketing mix This shift was evident at the recent CMO Senior Summit, where annual research papers highlighted that CMOs now recognize their responsibility extends beyond merely increasing sales; they are tasked with fostering innovation within their organizations.
Research indicates that effective communication and coordination between R&D and marketing departments significantly speed up new product implementation Furthermore, integrating the marketing mix with other functional areas, particularly research and development, is crucial for the successful launch of new products.
At times, the role of marketing mix for the development of business is ranked first.
A 1999 study involving 114 high-tech companies in China revealed that an effective marketing mix system significantly impacts new product launches and contributes positively to company development.
Components of Marketing-mix
In the marketing mix, pricing is the sole parameter that generates revenue for a business, vital for its survival and growth While other elements incur costs, effective product pricing not only sustains the business but also facilitates the consumption of goods at that price Therefore, establishing a robust pricing strategy is essential for success.
The price of a product or service represents the amount a buyer must pay to the seller in exchange for ownership and usage rights.
For a seller: the price of the goods or services is the revenue that the seller receives from the buyer through the sale of that product.
In economics, price is understood as the expression of money in the value of goods.
Buyers seek to purchase products at the lowest possible price, while sellers aim to sell at the highest price This inherent conflict of interest is resolved through pricing, which serves as a balance between the cost incurred and the value received by the buyer.
Valuation Objectives: Determining the price level for specific products of an enterprise is not optional The pricing must meet the set objectives of the business.
Businesses can choose a business's pricing goal from one of the following goals:
First: Valuation is to ensure that the income is determined in advance.
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The objective is to secure a specific profit margin from the product's selling price, with a set portion allocated to generate funds that achieve the company's desired return on investment or support reinvestment efforts This profit margin is typically expressed as a percentage of total product sales.
Second: Valuation aims to maximize profits.
To achieve maximum profit when selling, it's essential to determine the optimal price for your product Businesses should aim to set prices at their highest potential during favorable opportunities Rather than simply selecting a price that generates the most sales, the focus should be on identifying the price point that yields the best profit for the business.
Third: Valuing to achieve sales goals.
The pricing objective aims to achieve a specific sales target for the business, prioritizing the quantity of items sold or sales growth over profit margins.
Fourth: Valuation aims to achieve the development of market segments.
Setting prices effectively is crucial for businesses to thrive, expand, and dominate key market segments The pricing strategy should aim to attract target audiences while remaining competitive against rivals Implementing low prices can be beneficial, provided they exceed costs to maintain profitability Additionally, flexible pricing can be tailored to various customer groups and adapted throughout different stages of the product life cycle.
Fifth: Valuation aims to achieve competitive goals.
To gain a competitive edge, businesses should aim to provide customers with more appealing prices than their rivals By maintaining consistent product quality while offering lower prices, companies can significantly enhance their attractiveness to consumers, thereby increasing their chances of outshining the competition.
Sixth: Valuing to achieve competitive goals is not a price.
To effectively compete in today's market, businesses should shift their focus from solely relying on pricing strategies to utilizing a comprehensive marketing mix This approach allows companies to establish prices that reflect the quality of their products, enhancing customer perception and satisfaction.
The pricing policy of the business.
To achieve their valuation goals, businesses must have a sound pricing policy.
A proper pricing policy will make it easier for customers to accept prices and purchase decisions, improving the image of the business in the eyes of the customer.
Firms often apply one of the following pricing policies:
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Different pricing groups are available to different groups of customers to best meet their demand Includes: one price policy and flexible price policy.
The One Price Policy involves setting a fixed price for all customers under the same conditions and volume, eliminating the possibility of negotiation This approach ensures consistent income, enhances customer trust, and simplifies both sales processes and payment management However, it may result in inflexible pricing, making it less appealing to customers who prefer bargaining.
A flexible pricing policy allows businesses to offer varying prices to different customers for the same quantity of goods, enabling sales around the listing price while accommodating customer negotiations Sales representatives can operate within a defined ceiling and floor price, catering to the unique needs of each customer This approach is particularly common among small businesses dealing with non-standardized products.
Price policy at the product's life cycle.
At each stage of the product life cycle, a different pricing policy applies Detail:
Dilution pricing policy is implemented during the introductory phase of a completely new product with no market competition By setting the highest price, the company aims to maximize market penetration and establish a strong foothold.
Intrusive Price Policy: Apply for new products but are innovative products.
At that time, the company can apply a low price for a long time to sell goods in large quantities in the market.
Introductory price policy: Offer low prices in a short time (trial price) to attract the attention and trial of customers.
Market price policy: Enterprises set prices based on analysis of competitors' prices in the market.
Price policy is calculated according to transportation cost.
To effectively satisfy customer needs, it is essential to transport goods to locations that are advantageous for them However, the high costs associated with such transportation must be factored into the selling price for customers.
The delivery price based on location serves as a key factor in establishing the selling price between the buyer and seller This pricing category is classified into two distinct cases.
The seller establishes a designated delivery location in advance, often setting a published price based on this predefined site Various types of goods are dispatched to specific locations, which are influenced by the pricing structure.
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Factors affecting marketing mix in the business
Every organization has its strengths and weaknesses in the areas of business.
Analyzing internal strengths and weaknesses, alongside external opportunities and threats, is crucial for effective goal setting and strategy development Consequently, conducting a thorough internal environment analysis is essential for organizational success.
Analytical work is essential for identifying a company's strengths and weaknesses, allowing for targeted measures to minimize disadvantages and enhance advantages This strategic approach is fundamental for the company to establish effective goals and optimize overall performance.
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The internal environment includes the human resources, finance, production, research and development, information systems, marketing of the company.
Human resources encompass all individuals engaged in a company's operations, regardless of their roles People are a critical factor influencing a business's success or failure Human resources are categorized into three levels: senior administrators, middle managers, and staff.
To ensure effective business operations, senior administrators should possess extensive work experience, a strong management style, and proficient decision-making skills They must also excel in team management, have in-depth knowledge of their industry, demonstrate agility in navigating economic contracts, and bring innovative ideas to the table.
Administrators play a crucial role in guiding a business by establishing a clear vision and direction for the product market By selecting effective strategies and marketing solutions tailored to each market segment, they can ensure the company's success against competitors Furthermore, the number and quality of employees significantly enhance the competitiveness of the enterprise.
A thorough analysis of a business's human resources should emphasize key aspects such as workforce quantity, skill levels, professional competencies, accountability, labor discipline, and ethical standards Addressing weaknesses in these areas can enhance product quality, reduce costs, and foster unique competitive advantages.
Financial conditions are often considered as a method of assessing the competitive position of enterprises and are attractive conditions for investors.
To develop effective strategies in the financial sector, it is crucial to assess both strengths and weaknesses Key factors such as liquidity, cash flow, profitability, and capital utilization significantly impact the planning and execution of these strategies.
Having a good financial capability will help make the strategies work.
Production activities include the transformation of all inputs into outputs.
Production management processes include: process, capacity, inventory, labor force, product quality The strengths and weaknesses of a production activity mean the organization's success or failure.
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To study the internal environment of a business, research and development (R
In today's highly competitive business landscape, research and development (R&D) activities are crucial for gaining a competitive edge Continuous innovation in products and services not only enhances an organization's market position but also drives cost efficiency and quality improvements By prioritizing R&D, companies can outpace their competitors in product development, optimize production processes, and ultimately maintain a leading edge in their industry.
To evaluate the strengths and weaknesses of this activity, one often relies on the cost for them There are four commonly used methods for determining research and development costs:
Invest in as many projects as possible;
Use the percentage method of sales;
Compared to the research and development costs of competitors;
Determine how successful the new product is and then calculate back to determine the investment needs for research and development.
Information is crucial for organizations as it connects various departments by accessing raw data from both internal and external environments It enables tracking of environmental changes, identifies competitive threats, and supports strategic implementation, evaluation, and control The advancement of computerization has significantly enhanced the efficiency and speed of information systems Nowadays, most corporations have dedicated departments focused on managing the network systems that link their components.
In addition, effective information systems allow enterprises to specialize in other areas such as: low cost, service to satisfy consumers
Key economic factors include GDP growth, CPI growth, inflation rates, unemployment levels, bank interest rates, and investment rates A robust economy characterized by high GDP and increased national income leads to improved living standards, which is a primary goal for society.
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Marketing executives need to evaluate the influence of various factors on their decision-making, from overarching strategies to specific marketing tactics, as these changes can significantly impact the operations of all businesses.
Include the legal provisions that affect the business results of enterprises such as corporate law, policies, government economic regulatory instruments These factors can create opportunities or threats for businesses.
Regulatory regulations, policy guidelines of the government; administrative management system; the activities of consumer protection organizations; may obstruct or facilitate marketing activities or create opportunities or threats for businesses.
The cultural environment significantly impacts a company's marketing efforts, encompassing various elements such as social institutions, values, lifestyles, occupations, demographics, religion, ethics, and customs These social and cultural factors play a crucial role in shaping both consumer behavior and business practices.
Key factors influencing marketing in the natural environment include the growing emphasis on environmental protection, the scarcity of raw materials, rising energy costs, and stringent government regulations regarding industrial hygiene.
Natural factors significantly influence the resources required for business operations These elements present both opportunities for companies to leverage and challenges that necessitate adaptation and management.
Scientific and technological advancements significantly influence the efficiency of production and business operations within enterprises These developments present opportunities for companies to enhance product quality, boost productivity, and navigate the challenges posed by stringent customer demands It is essential for businesses to invest in research and development to create innovative products and integrate new technologies into their production processes Consequently, this leads to the introduction of new products and competitive pricing strategies.
Competitors are the factors that directly affect the competitiveness of enterprise products, competition in the market is indispensable objective, motivation
SITUATION OF MARKETING-MIX ACTIVITIES AT TAN
Company overview
2.1.1 History and background information of the company
Tan Hung Co., Ltd was established on March 7, 2002 With the relevant information:
Name of Vietnamese company: Tan Hung Trading Co., Ltd
English name: Tan Hung Co., Ltd.
Head office: No 263- Pho Moi ward- Lao Cai city- Lao Cai province
1 Wholesale cars and other motor vehicles.
2 Wholesale of electronic and telecommunications equipment and components.
3 Restaurant and catering services for mobile.
Các mặt hàng kinh doanh chính:
+Interior products My Son brand
+Interior products brand Nga Long
+Interior products brand Duy Canh
+Self-produced furniture-Tan Hung
Viet Com Bank - Coc Leu Branch - Lao Cai
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Since its inception, Tan Hung Co., Ltd has focused on the wholesale of electronic equipment, components, and telecommunications, establishing a foundation for expanding its business ventures This strategic approach, while bold for a small to medium-sized enterprise, has allowed the company to maintain profitability and scale operations effectively In its commercial activities, the company acts as an intermediary distributor for transportation products, generating profit through price differentials and benefiting from substantial contracts with manufacturers Despite limited resources and production experience, Tan Hung Co., Ltd successfully integrates complementary business products to enhance its overall effectiveness.
Tan Hung Co., Ltd operates in three distinct sectors, necessitating a strategic approach to product supply to prevent duplication and ensure customer satisfaction.
Tan Hung Co., Ltd enhances product distribution by integrating additional services, which boosts efficiency and drives higher profits.
2.1.3 The results of the company
2.1.3.1 The business results of the company in recent years
Tan Hung Trading Company Lao Cai was established on February 4, 2002.
Founded in 2002, the company has evolved over 16 years into a large-scale enterprise in trade and services Initially focused on traditional commerce, it has since diversified into the supermarket sector and recently ventured into the hotel and other service industries The company's revenue has shown consistent annual growth, reaching 107,678 billion VND in 2015 and exceeding this figure in 2017.
Between 2015 and 2017, the company achieved impressive business results, generating a revenue of 150,993 billion VND This growth has enabled the company to provide stable employment for over 150 employees, offering an average monthly income exceeding 5 million VND per individual.
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Tan Hung Trading Co., Ltd
TABLE 1: FINANCIAL STATEMENTS OF BUSINESS ACTIVITIES (TABLE 1)
No Targets Code Present 2017’s number 2016’s number 2015’s number
1 Sales revenue and service delivery 01 VI.25
Net revenue from sales and services
4 Cost of goods sold 11 VI.27
Gross margin on sales and service provision
Net profit from business activities
15 Current corporate income tax expense 51 VI.30
Deferred corporate income tax expenses 52 VI.30
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2.1.3.2 Turnover of some key commodities of the Company in the period 2015-2017
From 2016 to 2017, the company established itself as a top brand in the supermarket sector, leveraging its robust distribution network for electronics and furniture, as evidenced by the data presented in the table below.
Tan Hung Trading Co., Ltd
TABLE 2: REPORT ON REVENUES OF SOME MAJOR BUSINESS LINES (TABLE 2)
No Product group list Sales Profit
1 Interior products My Son brand 1,867,545,254 2,286,547,865 4,154,093,119
2 Interior products brand Nga Long 1,268,758,475 1,917,856,789 3,186,615,264
3 Interior products brand Duy Canh 1,978,568,754 1,857,864,752 3,836,433,506
4 Self-produced furniture-Tan Hung 2,307,586,758 4,586,785,247 6,894,372,005
1 Interior products My Son brand 1,312,854,875 2,542,785,465 3,855,640,340.00
2 Interior products brand Nga Long 1,517,856,175 2,267,854,758 3,785,710,933.00
3 Interior products brand Duy Canh 1,745,875,678 1,900,785,675 3,646,661,353.00
4 Self-produced furniture-Tan Hung 1,975,857,685 5,476,858,745 7,452,716,430.00
1 Interior products My Son brand 667,845,254 4,857,675,842 5,525,521,096.00
2 Interior products brand Nga Long 825,785,684 2,856,874,258 3,682,659,942.00
3 Interior products brand Duy Canh 856,287,658 2,958,768,754 3,815,056,412.00
4 Self-produced furniture-Tan Hung 1,214,526,785 9,975,842,758 11,190,369,543.00
From the table above, we can draw the following two charts to get a better overview:
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Chart 1: The Wholesale rate and Retail rate of key items of Tan Hung in period
The wholesale rate of key items of Tan Hung in the period
Interior products My Son brand Interior products brand Nga Long Interior products brand Duy Canh
Self-produced furniture-Tan Hung Other brands’s products
The retail rate of key items of Tan Hung in the period 2015-
Interior products My Son brand Interior products brand Nga Long Interior products brand Duy Canh
Self-produced furniture-Tan Hung Other brands’s products
Tan Hung's business strategy is clearly oriented towards retail rather than wholesale, as evidenced by the charts This focus is logical given the low volume of wholesale trade, with no exclusive brands offered by Tan Hung Customers seeking bulk purchases can easily find alternative wholesale suppliers By prioritizing retail, Tan Hung is able to maintain competitive pricing and secure a stable market position.
The internship project not only enhances interior design production but also reflects a strategic approach, evidenced by a significant rise in consumption over the years, with figures increasing from over $4 billion in 2015 to more than $5 billion in 2016, and skyrocketing to over $9 billion in 2017 This trend indicates that Tan Hung's direction has been remarkably accurate, as sales in 2017 saw a substantial increase compared to the previous two years.
The marketing mix of Tan Hung Trading Co., Ltd
2.2.1 Marketing activities of Tan Hung Trading Co., Ltd
The company's success stems from a robust business strategy and well-defined, achievable investment and operational objectives, supported by a scientifically managed organizational structure This approach emphasizes targeted marketing activities that drive results.
Each year, a comprehensive Marketing Plan is developed alongside a joint Business Plan, emphasizing the integration of both strategies This plan outlines the specific programs to be executed throughout the year, details the necessary resources for marketing activities—including human resources and budget allocations—provides estimated timelines for each initiative, and identifies priority geographical areas and target markets.
2.2.1.1 Organizing marketing activities of the Company
The company has strategically focused on capitalizing on the lucrative market of Lao Cai city, known for having the highest average income in the province To enhance its market presence, the company has established robust distribution channels via retail stores and invested in the development of furniture supermarkets, culminating in the launch of Duc supermarkets in 2013.
By the end of 2016, Huy Plaza commenced operations, marking a significant investment in the Duc Huy Hotel and Duc Huy Supermarket, creating a hotel and supermarket complex in Bac Cuong Ward, Lao Cai City The supermarket's launch has enabled the company to capture a substantial market share in Lao Cai's retail and entertainment sectors Currently, Cai Vo town features three supermarkets of similar size, not accounting for smaller trade centers and convenience stores.
Product policy is a crucial strategy for Tan Hung Trading Co., Ltd., focusing on the development of new products and leveraging well-known brand names The company prioritizes partnerships with leading electronics brands, including Sony, Panasonic, Sanyo, and LG, to enhance its market presence and product offerings.
Huy supermarket always have the latest products of famous electronics companies.
Other commodities are also very rich with high quality, to meet the tastes of consumers.
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Duc Huy supermarkets implement a strategic promotional and pricing policy, especially during significant occasions such as the company's anniversary, Christmas, and New Year They frequently organize promotional campaigns, including giveaways, gifts, and lucky draws, to express gratitude to their customers These initiatives not only enhance customer loyalty but also expand the customer base, providing a strong foundation for increased sales and business growth.
The company engages in diverse advertising and promotional activities, utilizing media and online platforms to enhance visibility In addition to digital marketing, it organizes cultural events such as product launches and company celebrations, featuring performances by singers and celebrities Each year, at least one major event is held, with expenditures reaching hundreds of millions, demonstrating the company's commitment to impactful promotions.
Effective budgeting for marketing is crucial to a successful marketing strategy, significantly impacting overall success As a result, the Company allocates a substantial budget each year to enhance its marketing efforts The following table presents the budget data for the Company's marketing activities from 2015 to 2017.
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Tan Hung Trading Co., Ltd
TABLE 3: REPORT ON EXPENSES FOR MARKETING AND SALES
Period 2015-2017 Currentcy unit: Vietnamese Dong
TT Khoản mục chi phí Marketing Business Total
2 Printing Document, profile, leaflet cost
4 Cost of organizing events, seminars
2 Printing Document, profile, leaflet cost 386.785.247 298.275.486 685.060.733
4 Cost of organizing events, seminars 527.845.274 189.247.654 717.092.928
2 Printing Document, profile, leaflet cost 587.486.275 346.875.486 934.361.761
4 Cost of organizing events, seminars 886.245.742 346.874.254 1.233.119.996
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The data table reveals a consistent yearly increase in numbers, highlighting a notable trend in the cost ratio between marketing and business, as illustrated in the accompanying chart.
Chart 2: The rate of marketing cost and business cost of Tan Hung in the period
The rate of marketi ng cost and business cost of Tan Hung in the period 2015-2017
Looking at the chart, it is easy to see that the investment cost of marketing has increased significantly compared to investment in Tan Hung's business period 2015-
In 2017, Tan Hung experienced a significant increase in sales, attributed to strategic investments in marketing, highlighting its crucial role in business success during the era of information technology development.
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Tan Hung Company adopts a flexible approach to organization, consistently researching and proposing effective solutions for adjustments and responses Additionally, the company places significant emphasis on efficient marketing management and cost control.
Along with the specific job assignment by Job disliption, there is a sharing of information between the various components that have created the first stage of performance and effectiveness.
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2.2.1.3.The operating mechanism of Marketing Department
Diagram 5: Marketing Organization System of Tan Hung
Producs manager: (1) - Manager of Consumer Electronics
(n) - Management of the automobile and motorbike industry
Marketing Disigner: (1) General programming design
Marketing Director: Direct Marketing and Sales Dept Manager
Together with the Board of Directors, the Company has set the overall strategic objectives for investment, production and business development in the long and medium term.
Decision-making on strategy level, general goal orientation for MA,
Resolve issues arising during the operation
Balance resources, balance the company's overall development investment plan, based on departmental data that provides planning, presentation, and protection of the Marketing Plan and Business Plan before Director Boad.
Data manipulation during the planning period, control and control activities to regulate operations MA and business
Marketing Department is divided into 3 groups:
1 Products manager: Depending on the nature and scope and scale of the industry, each product line will have one to two people: For example, Audiovisual and Interior (2 ng) people)
Functions and duties: Responsible for market research for the industries in which they are in charge, including competitors, equivalent items, in-depth research
Chuyên đề thực tập Tốt nghiệp of product specifications to find out the strengths and weaknesses of Each of the SP from that proposed marketing plan for the industry
Proposing to exploit new products and brand names after having a full evaluation of potential as well as efficiency and market demand for products.
To propose price policies for each type of goods under their management
Suggest the presentation at the showroom as well as recommend sales channels for each product line.
Research and propose sales policies, promotions, events (in Promotion plan)
Coordinate with the Disigner to design the program and implement the approved program
Assisting assisted by Director to synthesize data, monitor marketing activities, evaluate the performance of plans and programs in each reporting period.
Collaborate with other departments including the Business Department to implement the MA program
A collection of expert design and marketing director.
After receiving the requirements, purpose, scope, scale and other resources have been approved from Product Manager, the Designer must have the task of planning, implementation plan
For example, to launch the September 2 National Day Promotion program:
Designer design leaflet printing, leaflet planning, media content planning mass media, banner advertising, flag
As the interior decoration industry continues to grow alongside societal advancements, customers are increasingly seeking unique designs for their home decor and furniture.
The group's mission is to meet the interior decorating needs of customers by considering their housing and income conditions, enabling them to select the styles and materials that best suit their preferences.
Tan Hung Company, though new to Lao Cai, has confidently assembled a skilled team of interior designers and decorators This strategic move aims to effectively cater to high-end clients and those seeking luxury apartments, rapidly establishing a strong presence in the premium market segment.
A review of revenue structure research found that revenue trends increased
In 2017, the interior furniture industry experienced significant growth, with an impressive 124.6% increase compared to 2016 Notably, retail furniture sales surged by 170.3%, highlighting the initial success of this sector This growth can be attributed to retailers benefiting from the furniture selection provided by the design department of Tan Hung.
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LIMITATIONS IN MARKETING-MIX ACTIVITIES AT TAN
Human factor in MA
MA of Tan Hung and the Board of Directors need to clearly distinguish the functions, the scope of responsibilities of the Business Division and the MA.
Overlapping task functions will cause duplication of tasks, deployment of MA activities
MA's mission is to pull customers back to Tan Hung, while the task of the sales department is to push products to customers
In fact, Tan Hung is not only confused when performing the functions and tasks of these two parts but most of the businesses in the country are entangled.
Sales prioritize the seller's need to generate revenue, while marketing emphasizes understanding and fulfilling the buyer's needs Sales are driven by the urgency to convert products into profit, whereas marketing is dedicated to ensuring customer satisfaction through effective product creation, delivery, and consumption.
The primary distinction between sales and marketing lies in their focus; marketing prioritizes customer satisfaction as a pathway to achieving business objectives, while sales is primarily concerned with maximizing product sales without regard to market needs.
Effective marketing involves the implementation of integrated and coordinated strategies, known as mixed marketing, rather than relying solely on sales tactics To succeed in customer marketing, businesses must identify customer needs and convert that demand into actual purchases of their products.
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The primary distinction between marketing and sales lies in their profit targets; while sales focuses on boosting profits through increased sales volume, marketing aims to enhance overall profitability by aligning business strategies with customer needs.
Marketing extends beyond just customers and the market; it plays a crucial role within the internal structure of a business The primary objective is to enhance customer satisfaction continuously This ongoing process involves every department and position within the organization, highlighting the interconnectedness of marketing with all aspects of the enterprise.
From the right understanding of MA, senior management will have solutions in staffing, assignments, depth training for each position so that the MA will be professional.
Over the past three years, an analysis of the costs associated with doing business and mergers and acquisitions (M&A) in Thailand revealed significant overlapping expenses, including conferences, seminars, and commissions Interviews with board members and marketing leaders indicated that urgent decision-making often leads to neglecting the assigned functions within the treatment process, resulting in management approvals that bypass necessary consultations with relevant departments.
Many local companies, including Tan Hung, often neglect comprehensive market research, focusing only on year-end assessments to plan for the following year This approach relies heavily on historical data and management experience, which can result in plans that fail to align with current market realities Consequently, such oversight can lead to significant challenges, including financial difficulties or even bankruptcy, as the market is constantly evolving.
To enhance data utilization, companies should consider investing in independent consultants or conducting surveys to gather accurate information Many organizations face limitations due to insufficient manpower or lack of experience in market research, making the option of hiring independent consulting and surveying firms a practical solution.
Data as the basis for MA planning:
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+ Information related to state policies, competitors
+ Can use PEST or SWOT model to analyze data Once the results are analyzed, new plans are developed and implemented in line with market practices and balanced with resources.
The MA Plan is indispensable The method of measurement and evaluation of results, the effectiveness of the implementation according to each section, according to each strategy, the deployment.
Example: After the event associated with the Christmas and Tet holiday, the results should be quantified so that the comparison can be checked.
This paper, while not extensively evaluating the design and implementation of the MA plan due to constraints, acknowledges its significance The planning aspect is crucial as it fundamentally influences all MA activities within the enterprise.
Management of sales price
Derived from the lack of clear awareness of functions and duties between MA and KD leading to the management of selling prices are still limited.
CTY has a price policy that applies to all groups of goods, but by the passive
MA dept or Sales Dept may also propose to lower the price for the reasons inherent: o Slow consumption
Large inventory o Competitors lower the price o Keep the relationship
• Results: Despite the increase in sales, the main business lines still suffer losses in 2017 (Figure 1 - Profit statement)
Modern marketing strategies emphasize the importance of self-deprecation and corporate branding in discount sales To enhance sales effectiveness, businesses can implement increased wholesale discounts, offer more points for customer loyalty programs, and incorporate gift incentives for retail purchases.
Chuyên đề thực tập Tốt nghiệp
Located in Lao Cai province, the frontier province of the homeland in the border region, directly adjacent to China, where the economic situation is developing strongly;
Tan Hung Trading Company Limited has significant potential for growth into a large-scale enterprise To realize this potential, the company must concentrate on enhancing its sales and market development strategies, with a particular emphasis on the marketing-mix approach, which is well-suited to its current situation This article explores the operational benefits of the marketing-mix for Tan Hung and highlights its marketing strategies Notably, the company has made continuous improvements in its business and marketing practices, especially by focusing on retail distribution through supermarkets since 2013.
Huy Plaza was put into supermarkets ), resulting in a significant leap in sales (2017).
Tan Hung prioritizes competitive pricing and strategically implements promotions to attract customers, particularly in the retail furniture sector By offering reasonably priced products, the company appeals to budget-conscious shoppers In addition to importing well-known brand goods, Tan Hung also produces its own branded furniture, enhancing its product range and market appeal.
Although the first time has not really attracted customers, in recent years, the number of
Tan Hung furniture holds a significant market share in the company's overall revenue, effectively utilizing distribution channels like Duc Huy supermarket and social media for promotions The implementation of marketing-mix strategies has contributed to revenue growth in recent years; however, there are limitations that need addressing To enhance its market presence, Tan Hung should diversify its product range, strengthen brand development, and expand distribution channels beyond Lao Cai province to reach other localities Additionally, improving communication and organizing more professional events will provide customers with a better understanding of the company's product offerings, an area where Tan Hung currently falls short.
To enhance market competitiveness, Tan Hung must refine its pricing strategy by strategically timing promotions By effectively implementing the discussed measures, the company can achieve significant growth and fulfill the expectations of both consumers and leadership.
Chuyên đề thực tập Tốt nghiệp