Chuyên đề thực tập: Some solutions related to marketing mix to promote the consumption of product at Ngay moi commerce & communication Co.ltd

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENTVU THI THUY DUNG SOME SOLUTIONS RELATED TO MARKETING MIX TO PROMOTE THE CONSUMPTION OF PRODUCT A

Trang 1

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT

VU THI THUY DUNG

SOME SOLUTIONS RELATED TO MARKETING MIX TO PROMOTE THE CONSUMPTION OF PRODUCT AT NGAY MOI COMMERCE &

COMMUNICATION CO.LTD

Hanoi, May 2020

Trang 2

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT

VU THI THUY DUNG

SOME SOLUTIONS RELATED TO MARKETING MIX TO PROMOTE THE CONSUMPTION OF PRODUCT AT NGAY MOI COMMERCE &

COMMUNICATION CO.LTD

Supervisor: MBA Le Thi Ngoc Diep

Hanoi, May 2020

Trang 3

Vũ Thi Thuy Dung- 11161005- Business English 58A

her invaluable recommendations and advice, I could not finish this thesis.

My sincere thanks are also sent to all the teachers of the Faculty of English

Language at National Economics University, for their precious and useful lessons during my four year study which have been then the foundation of this research paper.

Last but not least, I would like to give my heartfelt thanks to my family, my friends who always encourage and inspire me to complete this graduation

paper.

Ha Noi, May 2020

Vu Thi Thuy Dung

Trang 4

EXECUTIVE SUMMARY

In the trend of global integration, Vietnam's economy has been making great

strides thanks to the timely application of scientific and technological achievements to production and business Many positive changes have been brought, including the creation of a healthy competitive environment in the

Vietnamese market That is the motivation for businesses to constantly findsolutions and innovate strategies to be able to stand firm in the market Ngay MoiCommerce & Communication Co.Ltd, by the great effort to apply Marketing mix

into practice, has created a solid position for itself in business and contributed

further steps to the Vietnamese economy Therefore, we would like to chooseNgay Moi Company in order to apply the knowledge learned in the lecture hall

and learn more practical experience.

The study has revealed many practical and valuable experiences forentrepreneurs The flexible and appropriate Marketing mix policy applied by

Ngay Moi company is the key to its success Besides, there are still many difficulties that the company has not yet solved That is included as the

diversification of products has not been timely, lacks flexibility andsynchronization in distribution strategy and promotion activities, shortcomings inthe service system and processes, notably, the dissatisfaction of members with

the company's remuneration policy.

On that basis, we have outlined the corresponding solutions The companyshould continue to uphold the potentials built up previously and take advantage

of its current circumstances to continue its momentum In the process of learning and researching, it is difficult to avoid shortcomings, I

look forward to receiving suggestions from teachers and friends.

Trang 5

employees’ point of view 39Figure 5: Results of evaluating Price activities of Ngay Moi company from

respondents 40Figure 6: Data collected of evaluating mixed promotion activities of Ngay Moi

company from respondents 41Figure 7: Results of assessing Place strategy from the loyal customers’ and

employees’ point of view 43Figure 8: Results of evaluating People strategy of Ngay Moi company from

respondents 44Figure 9: Data collected of evaluating Physical evidence activities of Ngay Moi

company from respondents 45

Figure 10: Results of evaluating Process strategy from the loyal customers’ and

employees’ point of view 46

Diagram 1: The organizational structure of Ngay moi 5

Trang 6

TABLE OF CONTENTS

ACKNOWLEDGEMENT i

EXECUTIVE SUMMARY ii LIST OF TABLES iii LIST OF FIGURES iii TABLE OF CONTENTS iv INTRODUCTION 1

1 Research introduction 1

2 Rationales 13 Purpose and scope of work 24 Sources and methods of data collection 2

5 Research questions 2

6 Structure of report 3CHAPTER 1: INTRODUCTION OF THE COMPANY 4

1.1 History of formation and development 4

1.2 The organizational structure and functions of each department 5 1.3 Business operation characteristics of the company 7

1.3.1 Products of the company 7

1.3.2 The company's business fields 7 1.3.3 Production and business results 7 CHAPTER 2: THEORETICAL FRAMEWORK 14

2.1 Marketing overview 14

2.1.1 Marketing concept 14 2.1.3 Function of Marketing 15 2.2 Marketing mix in service business 16

3.1.7 Physical evidence 35

+>

Trang 7

3.2 Analyses and Findings 36

3.2.1 Background Information 36 3.2.2 Results of evaluating marketing mix activities of Ngay Moi company3& CHAPTER 4: RECOMMENDATION 48

4.1 Solutions for Product strategy at Ngay Moi Company 484.2 Suggested solutions for Pricing activities 48

4.3 Solutions for mixed promotion strategy at Ngay Moi Company 49 4.4 Place - Distribution channel 50

4.5 Suggested solutions for People strategy 504.6 Suggested solutions for People strategy 514.7 Suggested approaches for Process strategy 51

CONCLUSION 53 REFERENCES 54 APPENDIX

Trang 8

INTRODUCTION

1 Research introduction Entering the 21st century - the century of information technology forward the globalization tendency, all scientific and technological achievements are applied in the production of goods and services These are potential goods and

offers great business opportunities for enterprises, especially computerbusinesses

As we all know, needs and satisfaction of human needs are the motivators

of all activities of individuals and organizations in the society As the economy

grows, human qualifications and incomes increase, it leads to the change of a

whole system of needs, especially with the change of characteristics of buying

behavior of customer Customers are increasingly stricter in their choice of

services, while domestic and foreign businesses are growing rapidly in theVietnamese market, which makes customers stand in plenty of choice, of course

those items that meet their individual needs and expectations will be selected for possession For that reason, winning businesses are those who fully satisfy and

really satisfy their target customers more than their competitors Therefore, theappropriate marketing policy is one of the most appropriate solutions for thecompany to consolidate, stand firm and promote a competitive position in the

market.

Information technology services in Vietnam are always evaluated as a market with quite a lot of potential Ngay Moi Commerce & Communication Co.Ltd has also asserted his position in the market, however, it is impossible not

to mention the immediate difficulties that the company is facing This research“Some solutions related to marketing mix to promote the consumption of productat Ngay Moi Commerce & Communication Co.Ltd.” is carried out to find out

how to improve business efficiency and expand the technology market for the

company.

2 RationalesIn order to build up a successful business, it is crucially important tounderstand the nature and benefits that Marketing mix activities bring to thebusiness During the time of internship at Ngay moi, I find out that marketing

mix activities play a crucial role contributing to the company’s success and it

Trang 9

needs to be thoroughly researched The overall purpose of this research is to

apply practicality Marketing mix to the actual situation of the company The research will analyse marketing mix activities at the Company over the years,

from which assess successes and shortcomings that the company hasexperienced, then give some solutions in the future can be achieved for Ngay

Moi Commerce & Communication Co.Ltd.

3 Purpose and scope of work Research purpose of this report is to apply the theory into practice in order to improve marketing mix efficiency at Ngay Moi Commerce & Communication

Co.Ltd The research will systematize some basic theoretical issues about

marketing mix and apply practicality Marketing mix activities to the actual situation of Ngay Moi Commerce & Communication Co.Ltd, specifically we use the 7Ps marketing mix model to evaluate the company's mixed marketing

activities in 2016-2018 These assessments will help to point out its successes aswell as the difficulties and drawbacks in the company Thereby, some solutions

for improving the efficiency of marketing mix activities of Ngay Moi Commerce & Communication Co.Ltd in the near future will be recommended.

4 Sources and methods of data collection

To create reliable research statistics and data, we interviewed 20 randomemployees and 20 potential customers of the company By using the survey

questionnaire, the information that they provide is absolutely confidential and their answers are completely voluntary and honest to facilitate the research This information will solve the real situation finding from the objective views and

attitudes of customers In designing the question, we use two types of questions:assessment scale questions and multiple choice questions

Besides, the data collected from referring to perspectives and documentaryprovided by the company concerning marketing mix activities at Ngay Moi

Commerce & Communication Co.Ltd

5 Research questions Question 1: What is the actual situation of Marketing Mix activities at Ngay Moi Commerce & Communication Co.Ltd?

Question 2: What solutions can be taken to enhance the activities of

Marketing Mix at Ngay Moi Commerce & Communication Co.Ltd?

Trang 10

6 Structure of report The report consists of Introduction, 4 chapters and Conclusion:

s “Introduction” deals with the rationales, purpose and scope of study, sources and methods of data collection and lastly research questions.

s 4 main chapters include:

Chapter 1: Introduction of the company Chapter 2: Theoretical Framework gives theoretical background of marketing in general and 7Ps marketing mix model in particular.

Chapter 3: Findings presents the results from the survey questionnaire

and interviews Some discussion about these results is also given in this chapter

Chapter 4 — Recommendation gives some proposals for the company to

enhance the practice of marketing mix activities.

Besides, the references and the appendix are attached so as to make theresearch more rational and coherent to follow

Trang 11

CHAPTER 1: INTRODUCTION OF THE COMPANY

This chapter gives background information of the company which is

investigated so that readers can understand the system of the organization andhow it works

1.1 History of formation and development

Ngay Moi Commerce & Communication Co.Ltd, formerly known asVPIT Trade and Services Company, was established in 2014 After a period of

operation, the company has grown quickly and developed strongly In 2018, the

company was officially transformed into Ngay Moi Commerce &

Communication Co.Ltd, located at 501, Song Thao II building, No 140/2, DoiCan street, Doi Can ward, Ba Dinh district, Hanoi

With the motto of the company operation is to best satisfy customers'needs and ensure the quality of products provided, the company always providescustomers with genuine technology equipment to help customers maximize the

great applicability of information technology and enterprise telecommunications solutions with reasonable and effective prices And special attention to enhance

the value of work with integrated technology solutions of high quality These arethe most advanced and guaranteed technology solutions, installed and maintained

with the highest quality of service.

The company's customers are state agencies, schools, production andbusiness enterprises, and individual customers

Through Ngay Moi Commerce & Communication Co.Ltd, businesseshave an environment to promote their products, bring information to partners,

customers and receive market information to guide the business better.

Function and duty of the company:

The company trades in the following fields:

Trang 12

Consulting design, assembly, installation and maintenance ofcomputer network systems, hardware and computer software

Producing and trading informatics software.

Purchase, sale, upgrade, warranty, maintenance of computers,components and computer peripherals

At the same time, the company's duties are set out to include: Studying the market, the demand for informatics services and products in the country, based on the company's resources to formulate

production and business plans

Directing purchase of computers and informatics equipment for

production and business activities

The company brings computer products and informatics equipment

to consumers' hands

" Using capital effectively, invest for the right purpose." Complying with the State's policies and management regime,

rationally employing labor, ensuring effective business and fulfilling all

obligations towards the State

1.2 The organizational structure and functions of each department

Organizing management in any Company is necessary and indispensable

because it ensures strict monitoring of the Company's business situation.Company Ngay Moi Commerce & Communication Co.Ltd is a small company,

so its management organization is very simple, compact and suitable for the model and nature of the company's business.

Managing Director = Consulting council |

|

J J J J 1

Fi ial

Inancia Business Technical

Personnel accounting Warehouse

Department Department

Department office

Diagram 1: The organizational structure of Ngay moi

(Source: Office for Organization and administration) - Managing director is the executive and take highest legal responsibility in all business activities of the company It is the person with the highest

Trang 13

authority to set up the company's operation strategies, the right and flexiblemeasures and the advice of the advisory board and the professional managers in

order to bring the best results Managing director directly sign contracts with

partners or authorize employees Assisting to the managing director is the deputydirector in charge of technical and business activities of the company and who isauthorized by the director to run the company in his absence

- Consulting Council: Advising the director on the business activities ofthe company, helping effectively the director in the administration and

management of the company To advise the director in job innovation, business method innovation, organization of recruitment policy, labor division to get the

highest job performance

- Personnel Department: Having the function of advising the director on the arrangement, staffing, training and classification of labor to allocate the right

people, the right jobs, the settlement of the regime for employees according tothe company's policies and regulations

- Financial accounting office: Taking notes to reflect all production andbusiness activities in the unit, the financial situation of the company as well asthe efficient use of capital, labor and supplies, supervising the observance of the

accounting regime, financial and economic targets according to law provisions, make general reports, determine consumption results, financial results and

business performance of the company

- Business Department: Distributing products, finding customers, marketing and directly supplying goods to all customers In addition, it also has

to manage the money, goods and facilities delivered by the company, make initialrecords and provide information to the accounting department

- Technical Department: responsible for assembling equipment, providingservices of the trading company and product warranty service after purchasing,consulting and answering customers' questions about products, guidingcustomers to use the product

- Warehouse: responsible for fully preparing and arranging each type ofgoods in accordance with the requirements of warehousing, ex-warehousing and

warehousing data and providing data to the finance and accounting department 1.3 Business operation characteristics of the company

1.3.1 Products of the company

Trang 14

Ngay Moi Commerce & Communication Co.Ltd advocates the

distribution of products of the world's leading computer manufacturers, especially those of the US.

Computer consists of items as HP, ASUS, COMPAQ, etc., computer

models and data transfer rates from 500MHz to 3.0C GHz; notebook; laptop; server lines conclude server PC server, midrange and mini.

Device: Network devices such as LAN, WAN, MAN, etc., Peripherals:

HP, Epson, Printer, Scanner, etc 1.3.2 The company's business fields

Supporting and consulting for customer:

Give advices to help customers choose the best solution for equipping ITsystem, supporting their business activities, as well as answering customer’squestions in the process of exploiting and using informatics products

Providing Database and application software

* Web design * Providing software Novell, Unix, Lotus Note, etc.

Technical services and distribution of information technology products

In cooperation with many companies distributing information technology

products, Ngay Moi Commerce & Communication Co.Ltd is a distributor ofcomputers and accessories of HP, Microsoft, Asus, Samsung, Lenovo, etc

* Best maintenance service (HP, Samsung warranty), warranty at the

works, periodic warranty

* Repairing and upgrading informatics devices 1.3.3 Production and business results

In recent years, the company has faced many difficulties arising such as fierce race with competitors in the market, prices, sources of goods as well as competition between economic sectors at home and abroad But the business

activities of the company still achieved high results and always exceeded the settargets, ensuring profitable business activities, preserving and developingbusiness capital

Ngay Moi is a small-scale joint stock company, so the capital is very

limited, relatively low compared to other companies in the same industry The

Trang 15

owner's equity as of December 31, 2019 reached 5 billion, an increase of 0.6

billion compared to 2018 The equity increased steadily over the years without any loss of capital The capital structure of the company is mainly equity.

Trang 16

Vũ Thị Thuy Dung- 11161005- Business English 58A

Volatility in 2017 Volatility in 2018 Volatility in 2019 Targets 2016 2017 2018 2019

compared to 2016 compared to 2017 compared to 2018

Value Ratio(%) Value Ratio(%) Value Ratio(%)

total 12.142.091,83

5.075.456.395 5.471.882,395 18.742.221,46 396.426 7,81 6.670.209,444 121,89 6.600.129,621 54,36 assets 9

Table 1: Business results of the company from 2016-2019

(Source: Accounting department of Ngay Moi company)

Trang 17

Based on the table of business results of the company in the last 3 years,

we see the total revenue and profit increase over the years The business scale ofthe business is expanding, especially in 2019, the total assets and working capital

increased by about 53% compared to 2018 As a result, the company hasexceeded the set plan

Looking at the table above, we can see that the business scale of the

company is gradually expanding In 2016, the total revenue of the company was VND 18.86 billion Entering 2017, due to many difficulties such as the price of

computer goods and equipment and components in the country decreased while

the purchase and equipment import of price did not decrease, the company hastried to promote business and preferential services for customers in accordance

with the actual situation and achieved the following results: Total revenue reached 14.7 billion VND, a decrease of 21.99% compared to with the same

period in 2016

By 2018 the company has had many drastic changes compared to before.

Specifically, the total revenue of 2018 has changed by VND 17.3 billion andreached 117.74% over the same period in 2017 All thanks to the efforts toenhance advertising, marketing and business expansion policy that the company

has deployed.

In 2019, the company has received more business contracts, the revenue

increased dramatically, 124.7% compared to 2018 with the company's after-tax

profit of 7.03 times (526,186 %) This proves that the company's business activities have been on the right track, bringing efficiency, fast and stable growth.

Income of officials and employees is increasing along with the increase of profit

after tax.

This fact has proven for a phenomenal growth that Ngay Moi Commerce& Communication Co.Ltd has supplied, installed and supported operations fornearly 100 computer networks and distributed all kinds of computers and

computer components in many parts of Vietnam

10

Trang 18

summation at the end of

the period

the imported

beginning of the periods

Computer Computer

accessories

Computer Computer accessories Computer Computer

accessories

Printer Computer Computer

accessories

Printer Computer Computer

accessories

Printer

Computer Computer | pcs 2 35 37 0

accessories

lãi

Trang 19

Computer Computer accessories

Printer

Computer Computer

accessories

Computer Computer accessories Computer Computer

accessories

Computer Computer accessories Printer

Computer

accessories

Printer Table 2: Summary table of the implementation of the Company's business plan for computers and informatics equipment at Company Ngay Moi Commerce &

Communication Co.Ltd within 12 months of 2019

(Source: Report of Company Ngay Moi Commerce & Communication Co.Ltd)

As we can observe, main products through the years are Import and

Export of computers and computer equipment, and production of computer software for agencies and companies The amount of machines and IT equipment

12

Trang 20

traded is not much different from the plan In most of the months, the company

sells beyond the target, typically in May and October This is due to improvements in sales and the application of reasonable sales policies of Company.

In general, the business results of the company have achieved high results as the targets set earlier, helping the company's capital not only be conserved but

also generate significant profits

Reaching the above achievements must mention the marketing mix strategy that the company is applying Formerly, the first 4Ps comes from the product marketing mix However, the marketing-mix system for goods appears to

be inconsistent with the service's characteristics in today's economy, instead was

that the company has chosen the 7 Ps marketing mix model as the guiding criteria to direct and develop the company This model consists of 7 items:

Product, price, place (distribution), promotion, people, physical evidence andprocess How the company has applied the practice of 7Ps in its businessdevelopment to bring the above successes and the gaps existing when the

company applies this model will be explored in detail in chapter 3.

13

Trang 21

CHAPTER 2: THEORETICAL FRAMEWORK

In this chapter, an overview of common definitions related to the research is presented to make the foundation for the paper in the next part.

2.1 Marketing overview 2.1.1 Marketing concept

In production and business activities, two basic problems that always existmust be focused to solve is the production and consumption of goods These are

the two issues of unity affecting each other.

Production is always the basic and root issue, product consumption is thekey to the existence of businesses Therefore, along with the development of

production and market competition, traders are increasingly interested in

solutions to boost consumption

Currently, there are many different definitions of marketing:

According to the UK Marketing Research Institute: “Marketing is a

management function of the Company in terms of organizing the management of business activities, from the discovery and conversion of purchasing power of

consumers into real needs of a specific item, then to bringing those goods to finalconsumers to ensure that the company is receiving the returns as being expectedbefore

According to Philip Kotler, "Marketing is a form of activity of humanbeings in order to satisfy their needs and desires through exchange.”

From a modern perspective, there are 2 specific ways of defining

Marketing:

- Marketing is an activity aimed at satisfying what customers need and

want through exchange activities in the market

- Marketing is an administrative process which has the duty to detect,

predict and satisfy customer requirements for profit

As such, the different definitions of marketing all emphasize the

importance of the exchange of benefits in order to satisfy the objectives of both

buyers and sellers Customers come to the products and services of businesses tosatisfy the needs of using their products and services, while businesses makesatisfying needs and serving for customers is a business goal to survive and grow

14

Trang 22

2.1.2 The role of marketingAt the macro level - state management, the study of market needs ensuresthe development plan that is practical and feasible, helping the State to guideeffectively the development of industries and the national economy At the same

time, researching the needs and finding all measures to fully satisfy the market demand creates the impetus to promote the development of the production force.

For marketing businesses, it is the most important tool to help them plan market and competition strategies to maintain their sustainability, survival and

long-term development By an effective system of policies, Marketing not only

helps businesses to choose the right investment plan, make full use of business

opportunities, but also help them build competitive strategies and use the most effectively competitive weapons to enhance reputation, conquer customers and enhance market competitiveness.

2.1.3 Function of Marketing

With the main content on the basis of research, Marketing contains many

different functions in it, the following are the main functions

Functionality that satisfies social consumer needs and maximizes the choice of customer.

This is the basic function of all marketing activities This function is done through researching and analyzing market needs including actual needs, potential needs and theoretical needs.

The research process allows to grasp the regularity of demand formationand development as well as the specific and diverse manifestations of demand,

on which basis, marketing activities will be directed to and best meet the market needs.

Function to enhance the adaptability and competitiveness of enterprises.

The market is a mysterious and complex field but it is a reality that is fully

capable of being aware of In the market, the needs of consumers are very diverse The tastes, habits, consumer characteristics and customers' psychology

in each market area are very different Therefore, marketing activities need to bedifferentiated to suit businesses When formulating a joint strategy or designing

solutions and efforts for Marketing, entrepreneurs must base on their adaptability and penetration to specific market and customer circumstances This function is

15

Trang 23

an effective marketing tool of businesses to ensure the suitability for businesssolutions

The function of promoting the consumption of goods and productsproduced by enterprises has a particularly important role vitally

From the starting point and its operational content, Marketing is thescience to solve the problem of product sales in the most effective way forbusinesses In view of modern marketing theory, solve the problem of productconsumption of businesses must be associated with the overall marketing

solution Marketing must then have a product strategy that enhances the most

competitive ability, a pricing strategy that is adaptable and stimulating toconsume widely a distribution system, perfect service and a promotion strategy,

support the most effectively consumption In addition, it is necessary to pay

attention to training and fostering to improve communication skills and art of

sales to employees in the distribution system

Function to enhance operational efficiency of business and production The operational nature of Marketing is the basis for discovering and satisfying the interests of the market and customers at the same time to search for the benefits of traders Therefore, the effort to satisfy customers' needs is also the

effort to seek the benefits of businesses All marketing activities are ultimately

aimed at improving the efficiency of production and business 2.2 Marketing mix in service business

The first 4Ps comes from the product marketing mix and 3Ps is expanded

to suit the characteristics of the service business The 4Ps make up a typical

marketing mix - Price, Product, Promotion and Place Service marketing adds to

the human element, taking it as the leading for promotional campaigns to make adifference in the perception of users 7Ps model has expanded to 3 factors in

addition to the 4 traditional elements of the marketing formula - People, Process and Physical evidence.

16

Trang 24

2.2.2 Marketing coordination model - 7Ps

Product

Design

Technology erceiv sefulness

immin

Packaging Brand utility

Accessories

People

Employees Cost plus

market to pay attention to, buy or consume in order to satisfy the desire or needof the user

A product strategy is the definition of a product list, type and its

characteristics such as name: brand, specifications, packaging, size andafter-sales service As such, commodity policy is a multi-dimensional and

complex area of activity that requires the company to make decisions:

Decisions on trademarks of goods: The basic issues that enterprises

must deal with in this decision are: whether or not they affix marks for theirgoods? Who is the trademark owner? Corresponding to the brand chosen, whatare the characteristics of the goods quality? How to name the brand? Should thebrand name usage limit be extended?

Decision on categories of goods: At present, how does the

company always ask to expand the category of goods? The company must makea decision to choose either direction, developing categories or adding categoriesof goods

17

Trang 25

Decisions on packaging and services for products and goods:

Packaging and services for products are one of the constituent elements of

finished products Therefore, this is an serviceable tool of marketing activities

that requires marketing managers to make effective decisions

b, PriceThe price of a service will greatly affect customer satisfaction The pricingof products depends on many factors, such as the actual market at the time,product quality, brand value, customer value, etc

Pricing strategy is the determination of pricing objectives, selection of pricing methods as well as appropriate pricing policies of the company.

There are a variety of pricing methods, including 3C model pricing,

pricing by adding costs, negotiating and perceptual value pricing, by choosingone of the valuations , the company narrowed its price range so that it couldchoose a final price However, the company must not only build a single sellingprice but must develop price strategies to be able to adapt quickly to changes in

demand, costs, and make the most of the opportunities appear in each transaction

and respond promptly to price tricks of competitors

A pricing strategy that the company can apply includes: Determining prices for new products: This is a pricing strategy drafted in association with the early stages of the product life cycle.

Strategy applied to the list of products: In fact, some companies

will gain higher business profits if they follow the view of price

formation-seeing products as only part of the product portfolio

Two-part pricing: This strategy is often used for service companies Valuation according to geographical principles: The company

valuates its products to customers by geographic areas

18

Trang 26

Discounting: The Company can adjust its basic prices through

discounts to encourage customers to buy and pay

Promotional pricing: This is a temporary price adjustment designedto support sales promotion activities

Differentiated pricing: The Company may adjust its basic price tosuit different conditions of customers, products or other factors, not because of

cost.

Chance price: In many cases due to changes in the business

environment, the company is forced to change its pricing strategy, that is, to actively change base prices or deal with competitors’ price changes.

c, Promotion Mixed promotion or marketing communications are activities that

communicate products and business to customers to persuade them throughvarious means

The essence of the mixed promotion is the use of means to communicate

with the target market and customers to inform the availability of the product, toconvince them that the product better in many ways than other similar productsand remind them to buy more when needed When the efforts of the mixed

promotion have been achieved, it means that the company's market share,

quantity of goods consumed and sales will be increased

The main tools of mixed promotion include advertising, sales promotion, public relations and personal selling.

Advertising:

Advertising includes all forms of indirect introduction and promotion ofthe idea of specific goods or services that are implemented at the request of the

advertising subjects and they must pay the costs Advertising is essentially the

operation of using the mass media marketing that the company uses to introduce

its goods and services to the target market and customers so that it can createimpressively products of the company to customers Advertising transmits

information to the market through mass media These can be radio (radio, television, etc.), print media (newspapers, magazines, live publications), outdoor vehicles, on the street and some other means, and depending on the advertising

goals, they can deliver messages with content that is consistent with that goal If

19

Trang 27

they want to create and maintain a company's image in the minds of their

customers with the goal of long-term effectiveness rather than immediate increase in sales, they will focus on advertising for their reputation If they want

to inform their target customers and drive them towards the purchase, then theywill focus on advertising the product However, the adoption of advertisingdecisions depends very much on other factors such as product life cycle,

company strategy, marketing strategy.

Increased sales (number of sales) is a basic standard to evaluate theeffectiveness of ads But to be able to evaluate the effectiveness of advertising in

a more comprehensive way, one must also rely on other direct quantities such as

the corresponding change in favor of consumers in attitude, psychology,behavior, etc

Sales promotion is a short-term, immediate impact measure to

encourage the purchase of a product or service Sales promotion has a direct andpositive impact on increasing sales with additional physical benefits to buyers,which can be bonuses, discounts, etc Advertising does not mean that consumers

will respond immediately to buy, so sales promotion activities will support advertising to encourage and motivate them to buy faster.

Deriving from the company's strategic marketing goal for goods and products in the target market, the company is be able to determine the objective of sales promotion:

For consumers: encourage them to consume more, buy in larger quantities and open up new customers.

For intermediaries: encouraging this distribution force to strengthen distribution activities, promote trading activities, consolidate and expand

distribution channels, perform market reserves, and regularly and continuouslydistribute to expand the market

In essence, this is a stimulating tool to promote the supply, distribution

and consumption stages of one or a group of products of the company

Trang 28

services of a salesperson through a conversation with one or more customers forthe purpose of selling

Using personal sales has its own advantages because customers can betterunderstand the product When the sales team is highly qualified, customers willbe guided clearly by them on how to use them correctly and fully, convince on

product value In addition, through sales activities, employees can obtain

customer information about products, companies and competitors accurately andquickly

Public Relations Public relations is an indirect stimulus to increase the demand for goods, services or reputation of a business unit by giving commercially significant

information about them in publications, Mass media in a convenient and free

way.

Public relations is a form of organizing public - market public opinion.

The public opinion organization has a number of tasks, including ensuring thecompany has a good reputation, good image, handling rumors and adverse

images that have spread to the outside This can be through forms such as a live broadcast of the presenter during the meeting or indirectly through journal

articles It can be commercial like sponsoring programs, social activities, sports

* Content of public relations includes:

Propagating products: including various efforts to make the public know about a certain product.

Propaganda cooperation: This activity includes internal and

external communication so that people can understand their organization, in order to create a good image and increase the company's advantages.

Lobbying is the communication with lawmakers and governmentofficials to support or obstruct a certain law

Propagating about handling an adverse event for the company: isspreading out Propaganda activities are also conducted in many areas to solve

specific tasks set by the company.

Public relations are rarely used, but it has the potential to create a level of

market awareness and interest, redefine product placement and protect them.

21

Trang 29

While it is a free activity, when companies do this, they often invest a certain amount of money to maintain good public relations with the media.

d, Place — Distribution channel Distribution channel is a collection of businesses and individuals

independently or interdependently participating in the process of bringing goodsfrom producers to consumers

There are 3 modes of distribution in business: Wide distribution: bringing goods to retailers as much as possible, for example: confectionery, cigarettes, medical equipment, etc.

Unique distribution: choose a retailer in a certain geographical areaand ask the retailer not to sell competitors’ goods

Selective distribution: located between Distributing widely andUnique distribution, select a number of retailers in certain geographical areas

O Basis for choosing distribution channels:

+ Based on the goal of the channel: consider which channels themarket reaches and sell to whom, in what geographical areas, what the goals are

to achieve

Characteristics of goods: consider goods of high or low value,

compact or bulky, easily damaged or not For goods of high value, perishable andbulky, it is advisable to choose the short channel organization

Consumer characteristics: whether they live focused or scattered,

buy more or less, often or infrequently If they live focused, buy more, often do not need more agents and narrow channel is better.

Based on the characteristics of intermediaries: characteristics ofagents, wholesalers and retailers, each intermediary has certain advantages and

disadvantages in the exploitation of goods, advertising and promotion Depending on the characteristics of each intermediary, the enterprise should

decide on which intermediary

Characteristics of the enterprise itself: large-scale, strong financial

or small-scale, limited financial.

Characteristics of the economy: economic growth, economic recession

Level of channel control: businesses want to control the channel or

not

22

Trang 30

After determining the distribution goal, selecting, setting appropriate distribution channel types, choosing intermediaries to establish a contact within the channels and the entire distribution network, the company makes its

distribution decisions including the following activities:

Processing orders Warehousing.

The volume of goods stored in the warehouse

Transportation In conclusion, the distribution of goods has an important meaning, is the

basis to meet the market demand, to strengthen the reputation of the business Atthe same time, the accurate distribution process ensures that goods of enterprises

are rationally mobilized, reduce circulation costs, help businesses seize opportunities to occupy and expand the market.

e, ProcessService process is the process of providing a service that takes placebetween the supplier and the customer at the same time and place It is the most

important and decisive process.

The actions or benefits brought by suppliers for customers are the process

of interacting with each other, essentially the merging of two processes: delivery and receipt The management of the full level of cooperation among the parties here is very necessary, in which it is necessary to emphasize the reception role of

customers in terms of awareness as well as spirit, psychology and trust in order toachieve the same goal: outstanding quality, good satisfaction and high fidelity.There are four types of service processes that business is directed as follows:

The process is directed at individual consumers (customers)

This type of process stands out in service marketing Currently, customers

are looking for services that directly target the human body, from health services,international travel, international aviation, restaurants, beauty salons, hospitality,

etc.

In order to receive benefits from these services, consumers and serviceproviders must meet at the same place and at a specific time to carry out twoprocesses of giving and receiving services

Process towards goods

23

Trang 31

This type of process arises from tangible actions and is directed toward

the goods as stated above These are service processes in the cargo transport (sea,

air, rail, pipeline), sales services (wholesale, retail), packaging, and International

storage of goods, assembly parts, warranty, etc These processes do not requirethat parties (customers and service providers) strictly meet in the same place and

time However, the need for information and coordination between the parties needs to be guaranteed in the most timely, convenient and effective manner

within the expanded business scope

b The process aims to stimulate the spirit of customers

This type of process arises from intangible actions and towards the mentalelement of service consumers These are the radio, television service, advertising,education, etc processes mentioned above In service marketing, the process of

encouraging customers’ spirit is of great importance in creating a spirit of

comfort and excitement, psychological stability and trust in service quality

The fact that success from this process makes customers change

traditional habits or practices and become loyal customers of the business

J, Physical evidenceThe physical environment of a service delivery company is where theservice is created with the customer and service provider communicating

To lessen the intangible nature of the service, marketers in the servicebusiness must try to provide physical clues to support the location and enhancefor the surrounding service Therefore, it can be affirmed that physical evidence

of the service provider is very important It helps in creating the position of the company and tangible assistance to the service.

Therefore, businesses have to spend large sums of money to create

architectural designs of interior decoration, uniform for employees, etc in order

to impress the reputation and prestige of the company's position

g, People " The human role in the service In the service business, the human element holds a very important

position It is the force that directly creates the service, is the center of serviceactivities in the business It determines the quality of the service and greatlyinfluences the success of service marketing The people in the service delivery

24

Trang 32

include all civil servants in the business, from directors to the most ordinary

employees In service delivery, each person plays a different role depending on

the position they are in charge We are divided into four groups:

- Group of contacts: They are the decision makers and organizers of

programs, business strategies, marketing strategies, etc such as director, deputy director, manager, etc.

- Group of marginal activists: This is the regular contact team and directly

to customers This group holds a very important position in service marketing

because they establish and create relationships between business organizations

and customers For example, this group in a hotel includes room service,receptionist, housekeeping, etc

- Impact group: This group includes people who do not directly performthe service, do not impact customers But they impact on the implementation ofbusiness services such as marketing research, development of new services, etc

For example, members of the P&R department, marketing research department,

etc.

- Independent group: They do not directly contact with customers nor

participate in the process of providing services but are supporters, directly

affecting the implementation of services

Human position in service provision

In service creation, there are always two associated flows: technology

flow and governance flow.

Technology flow is the process of performing service activities accordingto a certain process or scenario In this flow, individual people play a certain role

in a service, they receive information from the script to perceive the role they play, then perform service skills according to the behavioral model of yourself to provide services to customers.

In the governance flow, people receive information from the management system This system consists of internal organizations, which operate under

functions under the command of senior administrators, then the governancepower is transferred to lower levels Through such an organization's command

system, the management circuit is operated continuously, synchronously and smoothly throughout the production process to provide services to customers.

25