NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESENGLISH FOR BUSINESS DEPARTMENTNGUYEN THI LAM NGOC A STUDY ON THE DEVELOPMENT OF A LONG-TERM STRATEGY TO ONLINE MARKETING IN YOLA
Purposes of the research . + c + k2 x1 1 1111111 1T re 2 4 Research quesfẽOIS - Gv TH.HTHnnHnH nHnHnrkkh 2 5 Scope 1006
The purpose of this study is to research the marketing system of YOLA through collected data from 2017 to 2019 and give recommendations to develop a long- term strategy for online marketing in YOLA Institute The study will analyze and evaluate the effectiveness of different kinds of online marketing in acquiring, maintaining, and developing customer relationships in YOLA Such variables as groups of customers, the content, promotion, frequency of marketing activities, and costs will also be considered.
The objectives of the study are to focus on the following questions:
- How is the status of online marketing strategy in YOLA Institute?
- What solutions can be taken to improve the long-term online marketing strategy in YOLA Institute?
The study will research online marketing activities of YOLA Institute in the last two years on several Internet platforms such as social media (mainly on Facebook), website yola.vn, and email marketing The appliance of online marketing techniques and their effectiveness will also be analyzed to figure out the most suitable developing approach for YOLA to reach their target customers and become one of the market leaders.
A combination of various methods will be used in order to gain research’s aims and objectives.
Data collection and document analysis method will be applied to collect secondary data relating to marketing activities in the company and other documents including previous research about online marketing The data and figures of YOLA marketing activities on online platforms such as Facebook will be provided by marketing apartment to figure out the characteristics and expectation of customers.
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This research also uses a deductive approach, which means that the research starts by general knowledge then narrows to smaller details of the topic In addition, observation method will give the research the detailed description and explanation to compare and contrast the efficiency of online marketing strategy in YOLA.
The method of collecting data by questionnaire will also be utilized to survey on current and potential customers of YOLA Institute The questionnaire will be designed to analyze the effectiveness of YOLA’s online marketing strategy and give some recommendations to improve marketing plans in the future The link to this online survey is attached to every post on YOLA’s Fanpage on Facebook within a week from April 15" to April 22" to inform and convince customers to take participate in The data will be analyzed and discussed through 200 sample of customers’ answers.
The research includes four main chapters:
Chapter 1: Introduction: YOLA Institute and main issues in online marketing system.
Chapter 2: Theoretical framework: Overview of online marketing theory
Chapter 3: Analysis and findings: Real situation of online marketing strategy in
Chapter 4: Recommendations: Some solutions to address current issues an develop online marketing strategy in YOLA Institute
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A
INTRODUCTION OF YOLA INSTITUTE
THEORETICAL FRAMEWORK - cceceeeee 6 2.1 Overview of online marketing - - - - cty 6 2.1.1 Definition and some basic content of online marketing
Role of online marketing for businesses in modern condition
The Internet and modern technology are changing people's behavior, connection,communication, and purchasing Reet (2010) claimed that big data has become not only the business reality but also the reality of each consumer, that has to adapt to
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A the informational age and develop new patterns of behavior Entering the online market is actually taking part in the massive market and new-age audience that cannot be ignored Online marketing therefore has an undeniable role in promoting companies in today’s condition.
Online marketing allows businesses to take advantages of:
- Providing wide access to potential and targeted customers over the world.
- Saving cost and effort for marketing activities.
- Making it able to stay connected with customers on a real-time basis at every moment.
- Measuring and tracking results easily by utilizing online tools.
As a medium of interactive communication, the Internet is the most cost-saving and convenient compared to other media However, the potential of the Internet in marketing is unlimited with its endless virtual space for everyone Therefore,online marketing is defined as the future of marketing As the results, it is necessary for companies to integrate sufficiently online communications strategies.
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According to Rappaport (2007), “the rise of new marketing model was based on advertising-supported revenue models or the assumptions about consumers." Besides, new technologies and broadband adoption allowed marketers to make enormous creative leaps and create landmark campaigns They follow three new models of marketing.
This model aims to reach the target customers as satisfied participants Customers now approach the virtual world mainly by watching, reading, or listening on online platforms Therefore, it is necessary for marketers to understand whenever consumers have a desire for their services or products based on their behaviors and regular search on the Internet They need to make sure that the products appear popularly and enable customers to purchase easily at any time.
In fact, many media have enjoyed an unforeseen benefit from the on-demand trend:their archives have become hot properties because consumers seek access to
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A materials from hours, days, weeks, or years ago Storage, retrieval, and on-demand access have transformed the media business and increased the value of its content.
In the On-Demand model, information search tools (such as Google) are considered as an important development to support online marketing strategy This means that if consumers want to seek detailed information about products, they do not need to directly research from the manufacturers, retailers, or distributors for personal purposes Nowadays whenever they are in need, customers can access any kind of information related to the desired products This is the responsibility of marketers to make the services or products available widely on the Internet then the customers can compare and consider different brands 24/7.
It can be seen that the main purpose of this model is to satisfied personalization. When customers search for the brand actively, the marketing strategy will be crucial to help them find out the connection between their own perspectives and the products This is the first step to make the brand become familiar and get sympathy from Internet users They would realize the products meet their demand and be suitable with their personal interests, needs, and tastes It should be relevant and responsive to customers’ desire for purchasing Then search technologies and social media will encourage customers to purchase and rate their experiences, which leads the brands to be viral on the Internet.
The best benefit that the Internet brings to this new model is that it satisfied customers completely, however, companies should balance the choices and amount of information they provide customers Instead of applying too many tools or multiple choices of services that probably confuse customers and create bad impress, companies can implement sophisticated business rules that present the most relevant choices, as Joe Plummer said in 2007, “nobody's really in control, not the brand or the consumer” This means that even when trying to meet all customers’ requirements, companies should keep their control in most parts They need to make customers understand that this is a two-way business activity and a win-win trade is important for both sides.
Therefore, companies in the digital era, especially ones following the On-Demand model, have the possibility to encounter a challenging problem Because customers now are more powerful in choosing and considering products, their expectations for the brands are higher compared to consumers in the traditional era Due to the many media types and the consumers’ behavior become uniquely individual, their
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A choices also become individual choices and therefore cause many complications for the advertiser.
The model also points out the ability the consumers have concerning choices It is crucial that choices are limited; meaning that if the consumers have too many choices, the effect of the brand is only partial Therefore, communication is essential to avoid this With traditional marketing the advertising marketers are more interested in having their brand at as many places as possible, whereas in the
On Demand model it is more vital where and who sees the adverting Not only do the brand marketers need to promote their product on the internet, but they also have to make sure that the consumers include their brand to their favorite choices.
The term engagement in marketing has appeared a long time before, which IAB defined as "a spectrum of consumer advertising activities and experiences— cognitive, emotional, and physical—that will have a positive impact on a brand”.
To be more specific, the engagement model can understand as the process that marketers attempt to communicate with customers through marketing messages and encourage them to take action of purchasing the products Talking about engagement, Rappaport (2007) said: "Consumers want to get involved with brands they care about and give brand marketers explicit permissions, through an opt-in program, to involve them with the brand." If the on-demand model aims to satisfy customers, the engagement model has the purpose of building a close relationship with consumers.
The engagement model is comprehensive and based on two main factors:
- High relevance of the services or products to customers.
- The increasing emotion and relationship between customers and brands.
Only when two mentioned factors are fulfilled, the companies can reach their target customers and convert them to loyal customers This means that the brands not only understand customers, but they also need to be viral, share something meaningful, and raise identification, then the customers may feel they connected to the brands The engagement will become the opportunity when customers encounter their ideal products and share the experience to other consumers. According to Rappaport (2007), " consumers are seizing control Marketers have no choice, but to reframe their perspectives and deliver engaging experiences that
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A inform, educate, or entertain It is about defining an engaging concept Making it come to life and enabling consumers to call it their own".
To outline the essentials of the engagement model, several important issues are notable.
- Distinguishing the brand so the consumers identify themselves in the advertising.
- Involving the consumer in the process for instance competition or questionnaires.
- Communicating with the consumers, but most important make the consumers feel significant so in the future they may become loyal customers.
To enhance that idea, it is crucial that the consumers identify their own images in the brand and therefore get emotionally attached to the brand The marketers should follow the AIDA strategy, which stands for Awareness, Interest, Desire, and Action, to reach that target This strategy is popular in marketing and sales to describe four stages since customers recognize the brand until they decide to purchase Because many consumers are aware of the brand through advertising or marketing communications, the AIDA model helps explain how advertising or marketing communication messages engage and relate to consumers in brand selection In principle, the AIDA model proposes that advertising messages need to accomplish many tasks to convert consumers from brand awareness to action (purchasing and consumption).
The steps proposed by the AIDA model are as follows:
- Awareness - Consumers know the category, product or brand (usually through advertising)
- Interest - Consumers become interested by learning about products benefits and how brands fit their lifestyle
- Desire - Consumers develop a favorable orientation for the brand.
- Action - Consumers shape an intention to buy, shop around, participate in a trial, or purchase.
These steps of AIDA models follow the consumer decision making process except for the final process off post-purchase Four mentioned steps can be simply
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A understand as the processes of problem recognition, information search, evaluation of alternatives and purchase.
~ => => of ==| Purchase |==>| purchase recognition Search
Moving from step to step, the total number of potential customers decreases This phenomenon is sometimes described as a "purchase funnel" A large number of potential buyers are aware of a product or brand, then a smaller subset becomes interested, with only a relatively small percentage turning to actual buying This model helps companies to identify the exact number of customers who take action compared to the ones who only notice of their products Then the marketers can analyze and design a more effective strategy to increase the figure in final stage.
"Advertising as a service aims to provide consumers with information and capabilities that soften transactions or enhance brand engagement" (Rappaport
2007) Firstly, the companies identify the services and products of the consumers' demand and then create the messages and experiences relevant to those needs.
Designing campaigns often begin by conducted questionnaires to understand consumers’ viewpoints.
ANALYSIS AND FINDINGS 0000 ececcecceecceeeeteeeteeteeeaeenes 16 3.1 Marketing messages of YOLA Institufe - - 525 ccs<<<cc<xe 16 3.2 Target audiences of YOLA Insfitufe - 2Ă SSĂssseeeee 16 3.2.1 CUrrent CHSÍOTHLÔFF HH Hư, 16 3.2.2 Potential CHSÍOFHLCT HH TTHkHnTHkTHkH kHkrrn 17 3.3 Online platforms utilized in the marketing strategy of YOLA Institute ơ—
Chapter 3 illustrates detailed information about the current online marketing strategy in YOLA Some main factors such as marketing messages, target audiences, and online marketing platforms will be analyzed and discussed The figures are provided by collecting the marketing department's documents and taking a survey on customer's feedback.
3.1 Marketing messages of YOLA Institute
The core message of YOLA in every marketing campaign is “awake your power”. YOLA aims to build a professional and prestigious brand image which is always a pioneer in applying the most advanced educational methods The target customer group of YOLA are people who acquire significant knowledge background and high income with modern thinking.
YOLA's unique selling point to compete with other competitors is in the international-quality teaching staff, the national geographic curriculum, and the online homework system.
3.2 Target audiences of YOLA Institute 3.2.1 Current customer
Current customers in YOLA are students studying or used to study in branches of YOLA Because most students are children, current customers are also defined as their parents who directly pay for the institute YOLA now focuses more on marketing online to the parents as the main customers.
YOLA's current customers mainly receive information about new marketing campaigns or promotions through direct contact methods Such activities can be listed as giving presents at school, organizing events on special occasions, or calling directly to inform of promotions There are currently not many campaigns for this kind of customer on the Internet Current customers can communicate with YOLA through popular online platforms such as website, email or social media, but the customer relationship management does not focus there.
Main customers that YOLA online marketing strategy targeting are the parents who have standard or higher income in the age range from 30 to under 50 years old Most of them are female, housewives, or office workers and have children between 5 and 18 years old These customers have good background knowledge and are interested in educating their children in a modern lifestyle That means
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A they are willing to spend a considerable amount of money on their children's education to get adequate results They are also interested in the spiritual life of their children and understand that learning foreign languages in children needs to be designed creatively, professionally, and focus on practice rather than theory only.
Regarding the online marketing campaign, it should be noted that these customers spend about 4 hours on Internet activities (according to survey) They are interested in social news, entertainment, and regularly updated with interesting new trends In addition, they also have quite high requirements on the reliability and professionalism of businesses providing products and services.
YOLA's potential customers are divided into 2 segments The first group consists of high school students, university students, and working people wishing to take an international English test such as IELTS, TOELF, or SAT These people may have different basic English proficiency levels, which are suitable for the Testprep and EFL courses at YOLA.
The characteristic of people in this segment is that they are mostly studying and working in big cities like Hanoi and Ho Chi Minh They may have a certain income and want to find a reliable institute to study and achieve targeted exam results. They often spend a lot of time on online activities and are open to online marketing campaigns Their goal of learning English is not only to be able to communicate fluently but also to improve academic knowledge and especially gain some "tips" for the test, which is unique selling points of many English teaching centers today.
The second segment is the parents with high income whose children are from 5 to
18 years old This segment has similar characteristics compared to YOLA's current customers mentioned above However, if YOLA only needs to keep a close relationship with current customers, they have to try harder to attract attention and build trust from potential customers.
The purpose of YOLA when approaching this audience is to carry out AIDA marketing strategy and convert them into current customers These audiences often make decision based on the influences from key opinion leaders (maybe their parents, friends, colleagues, and celebrities who succeed in this field) and words of mouth The reason is that they are mostly young (under 45 years old) and have
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A high awareness They have been early exposed to social networks and probably lose trust in mass advertising.
3.3 Online platforms utilized in the marketing strategy of YOLA Institute
Percentage of current customers knowing different online channels of YOLA
Fanpage YOLA on Prolifes of YOLA Website yola.vn YOLA official email YOLA's Youtube
The chart illustrates customers’ awareness of three main online marketing platforms of YOLA which are website, social media, and email To be more specific, social media includes Facebook (with official Fanpage YOLA and several profiles for branches) and Youtube It can be seen that website is the most popular platform of online marketing with 71.2% customers because it appears to be the first result when searching on search engines about YOLA Institute Standing at the second position is Fanpage YOLA on Facebook that is familiar to 62% of current customers.
On the other hand, the other channel on the Facebook platform which is branch’s profile does not receive relative interest YOLA’s official email is well known to
53.3% of customers who remember the initial email sent when they apply
Nguyễn Thị Lam Ngọc — 11163657 — Business English 58A successfully a course in YOLA Surprisingly, only 9% of customers aware that
YOLA has an official Youtube channel.
YOLA’s only official website is yola.vn which provides public information about
YOLA New customers who want to know more about YOLA can get information about the centers, teachers, student's awards, and schedule of upcoming classes there There are also news and events updated frequently to keep the website on the top search of Google or other search engines The website is organized and updated by content marketing staff of the head office in Ho Chi Minh city only.
Customer reviews on the YOLA website
YOLA website updates information frequently
YOLA website updates verified information
YOLA website's content is useful
YOLA website's content is interesting
YOLA website is well designed
YOLA website's authority is clear
They often meet YOLA website on the Internet
MTotally Agree mAgree Neutral MDisagree mTM Totally disagree
The graph above shows customer reviews to evaluate the effectiveness of the
YOLA website It can be seen that when being asked how often they stumbled upon the website, most people said it is rare It means that the YOLA website has not been so familiar to customers and they do not really care about the information the site contains However, it is a positive signal that most of the customers, even those who not visit the site very often, feel that the website has clear authority
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(nearly 90% of customers), are well designed (more than 60%) and updates verified information.
The weakness that decreased the reputation of the site is defined in the content (which more than 40% of customers feel not interesting and not useful) and the frequency of information updating.