Report Marketing (Assignment 1)

This report is made to recommend an overall best practice of marketing approach to successfully launch these exciting new products in Vietnam. Hence, it covers the market for “Beef Jerky”, “Lettuce and Broccoli Chips” as well as a limited number of areas. By using my business skill, creativity and knowledge about marketing, I hope to help promote these new product lines of Vina Mit Ltd. Company to targeted group of customers, commercial users and client businesses within international marketplace in general and national market in Vietnam in particular. Based on that, this report contains the standard practice of Marketing Professionals including explanation of some basic concepts in the first part and its applications and practical analysis on Vina Mit Ltd. Company in the second part of the report as a reference for people who are concerned about this field.

BANKING ACADEMY, HANOI BTEC HND IN BUSINESS (FINANCE) ASSIGNMENT COVER SHEET NAME OF STUDENT REGISTRATION NO UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE Marketing Vinamit Marketing Processes of I, hereby confirm that this assignment is my own work and not copied or plagiarized from any source I have referenced the sources from which information is obtained by me for this assignment _ Signature Date -FOR OFFICIAL USE (Course Administrator) Assignment Received By: Date: Unit Outcomes Outcome Investigate the concept and process of marketing (1) Explore the concepts of segmentati on, targeting and positioning (2) Evidence for the criteria Feedback Assessor’s decision Compare alternative definitions of marketing a Identify the main characteristics of a marketing oriented organisation b Explain the various elements of the marketing concept c Identify and assess the benefits and costs of a marketing approach d Identify and explain macro and micro environmental factors which influence marketing decisions a Propose segmentation criteria to be used for two products in different markets b Outline the factors which influence the choice of targeting strategy c Internal Verification Outcome Evidence for the criteria Assessor’s decision Feedback Explain how buyer behaviour affects marketing activities in two different buying situations Internal Verification d Merit grades awarded M1 M2 M3 Distinction grades awarded D1 D2 D3 Comments by Assessor - Common Skills A B C D E F G Assignment ( ) Well-structured; Reference is done properly / should be done (if any) Overall, you’ve Areas for improvement: ASSESSOR SIGNATURE DATE / / NAME: (Oral feedback was also provided) STUDENT SIGNATURE DATE / / NAME : FOR INTERNAL USE ONLY VERIFIED YES NO DATE : VERIFIED BY : NAME : Marketing report Transmitted to Sales director Prepared for Lecturer: Tutor: Marketing Executive Vinamit Marketing Process Prepared by Student ID: Class: No of words (Excluding executive summary, introduction, conclusion, recommendations, appendix and references) EXECUTIVE SUMMARY Nowadays, more companies adopt a clearer vision of the direction to take their brands and challenge marketing convention through innovation, advertising or some other aspects of marketing Furthermore, they are intention of adopting different approaches to marketing that focuses on stretching limited resources, staying in close contact with customers and creating more satisfying solutions to customers’ needs Facing with harder and harder economic challenges, businesses have to make more and more effort in getting a non-stop development in every aspect especially marketing which is known as an increasingly vital ingredient for business success Taking the responsibilities of marketing executive, I have to bring a professional approach to marketing activities and launch the new products of “Beef Jerky” and “Lettuce and Broccoli Chips” for Vina Mit Ltd Known as the leading company in Co-operating with farmers to develop Agriculture Industry through supports like scientific studies, seeds and plants, modern technology and training, Vina Mit always ensures stable and year-round resources for demand thanks to their Total Complete Supply Chains On the other hand, they would have to deal with various difficulties in launching these new products so that they still can maintain their achievement for their total complete supply chains with new suppliers, process and technology That is why understanding the needs of customers is only the first step before deciding whether the products could be launched and how they would be introduced Therefore, this report is made to recommend an overall best practice of marketing approach to successfully launch these exciting new products in Vietnam Hence, it covers the market for “Beef Jerky”, “Lettuce and Broccoli Chips” as well as a limited number of areas By using my business skill, creativity and knowledge about marketing, I hope to help promote these new product lines of Vina Mit Ltd Company to targeted group of customers, commercial users and client businesses within international marketplace in general and national market in Vietnam in particular Based on that, this report contains the standard practice of Marketing Professionals including explanation of some basic concepts in the first part and its applications and practical analysis on Vina Mit Ltd Company in the second part of the report as a reference for people who are concerned about this field TABLE OF CONTENTS Contents Cover sheet……………………………………………………………………… Title page………………………………………………………………………… Executive Summary……………………………………………………………… Table of contents………………………………………………………………… List of figures…………………………………………………………………… Introduction 1a Comparison of the various definition of marketing……… ………………… Page 1b The main characteristics of a marketing oriented organization for Vinamit 1b.1 Marketing oriented organization……………………………………… 10 1b.2 Company’s commitment…………………………………………… 10 1b.3 Company Led activities (7P’s)……………………………………… 11 1b.4 Profitability………………………………………………………… 1c The various elements of the marketing concept 12 1c.1 Marketing philosophies…………………………….………………… 12 1c.2 Elements of marketing philosophies…….…………………………… 1d The benefits and costs of using marketing approach to business in 13 Vietnam 1d.1 Quality issues and their implication for customer relationship……… 16 1d.2 Costs and Benefits of Marketing approach…………………………… 2a The macro and micro environmental factors in Vinamit which might 17 influence Vinamit’s marketing decisions 2a.1 Micro environment……………………………………………………… 18 2a.2 Macro environment……………………………………………… 18 2a.2.1 PEST factors…………………………………………… 2a.2.2 Competitive environment………………………………… 2b The methods the markets for the products (‘beef jerky’ and ‘lettuce and 19 21 broccoli chips’) may be segmented and the benefits/limitations of each method 2b.1 Definition of segmentation…………………………………………… 22 2b.2 Bases of segmentation………………………………………………… 23 2b.3 Targeting……………………………………………………………… 25 2b.4 Positioning……………………………………………………………… 2c Factors influencing the choice of the targeting strategies for the company’s 26 products 2c.1 Market coverage strategies…………………………………………… 27 2c.2 Factors influence choice of targeting strategies……………………… 28 2c.2.1 Attractiveness of a marketing segment………………………… 28 2c.2.2 Suitability of market segment to Vinamit……………………… 29 2c.2.3 Company resources…………………………………………… 29 2c.2.4 Product’s life-cycle stage……………………………………… 2d Explain how buyer behavior for the products might affect the Vinamit’s 30 marketing actiities in the two markets 2d.1 Comparing consumer buying behavior and organizational buying behavior………………………………………………………………………… 30 2d.2 The process of consumer buying behavior…………………………… 30 2d.3 Factors influencing consumer buying behavior……………………… 31 2d.4 The Process of organizational buying behavior……………………… 32 2d.5 Factor influencing organizational buying behavior………………… 32 2d.5.1 Environmental factor………………………………………… 33 2d.5.2 Organizational factor………………………………………… 34 2d.5.3 Interpersonal factor…………………………………………… 35 2d.5.4 Individual factor……………………………………………… Conclusion……………………………………………………………………… Recommendation……………………………………………………………… Reference…………………………………………………………………… 35 36 37 38 LIST OF FIGURES Figures Figure The marketing concept and selling concept contrasted Figure Elements of marketing concept Figure Benefits and costs of marketing approach Page 13 13 19 20 Figure Strengths and weaknesses of Vinamit in term of micro environmental factors 22 Figure Opportunities and threats of Vinamit 24 Figure Bases of segmentation for beef jerky and lettuce and broccoli chips of Vinamit Figure Specific segmentation for beef jerky and lettuce and broccoli chips of Vinamit 25 26 Figure Benefits and limitations of bases of segmentation 26 Figure Marketing coverage strategies 27 Figure 10 Porter’s generic strategies (competitive advantage) Figure 11 Perceptual Mapping of Vinamit Figure 12 Attractiveness of a market segment Figure 13 Comparing consumer buying behaviour and organizational buying behaviour Figure 14 The process of consumer buying behaviour Figure 15 Factors influencing consumers’ purchase actions Figure 16 The process of organizational buying behaviour 27 28 30 30 32 32 INTRODUCTION There are many ways to understand about marketing According to the Chartered Institute of Marketing (CIM), marketing is defined as 'the management process responsible for identifying, anticipating and satisfying customer requirements profitably' CIM’s definition is quite brief and all-encompassing and it mentions about marketing’s function as a management process focusing on marketing objectives Based on that marketing’s duty is to identify the needs and wants of the customer and to try to deliver benefits that will enhance or add to the customers’ lifestyle and then get the satisfaction of these needs result in a healthy turnover Besides, Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process' Instead of referring to management process, Philip Kotler concentrates on exchange process which represents exchange of value through transactions between customers and suppliers The more satisfied they feel, the greater benefit suppliers get then the more transactions are made Moreover, “marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” — The American Marketing Association Board of Directors The definition which is also as comprehensive and concise as CIM’s but it focuses on encompassing the product development, marketing communications, pricing, and strategic aspects of marketing Another definition of marketing is that “marketing is the process by which companies create customer interest in products or services It generates the strategy that underlies sales techniques, business communication, and business development It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves” — Wikipedia This definition is so focused on both the strategic and functional aspects of marketing, but especially that it’s so customer-focused referring to customer target in marketing Each of the definition above mentions about different aspects of marketing but in conclusion, marketing is a process from analysis to action It is strategy development, then logical and thought-out tactical implementation and finally to reach customer satisfaction and to increase profit 1b.1 Marketing Oriented Organization Marketing Oriented Organization means a business carries out towards the satisfaction of their customers The decisions taken are based around information about customers’ needs and wants, rather than what the business thinks is right for the customer Vinamit aims to be a connection between farmers and consumers Their highest objective they want to reach is when their customers use their products not only for the products’ quality and the favor of Vietnam but also for a more active life Understanding about the needs of Vietnamese people for fresh and nutritional products, Vinamit is the pioneer in dried fruit field to give products which contain a part of Vietnamese tradition with the typicality of tropical fruits and particular favor of Vinamit which is also considered as spice for modern life and a fast food of Vietnam 1b.2 Company’s commitment Besides, Vinamit’s vision is also to aim to Vietnamese customers which is ‘Vinamit want to become the leading company in providing products being good for health in Vietnam and raise the values of Vietnam’s agricultural products to world’ Following this, Vinamit wants to bring products that are good for Vietnamese people’s health and to make Vietnam’s agricultural products recognized in the world Therefore, all of their objectives reach to Vietnam’s values and Vietnamese people Based on that, customers factor is their most important focus of the company whose objective is committed to grow customer and base on Win-Win solution and their mission ‘Sustainable development is built on the platform of values chain from origin to crest, and managed by the decentralized organization with high responsibility and pride of nation’ also makes particular meaning and values With their value chain from origin to crest, they can control and manage their supply as well as the quality of the products in order to meet their aim in the vision to bring healthy products for Vietnamese people Moreover, they make use of the strengths of Vietnam to apply to their products to recognize the Vietnamese value 1b.3 Company Led activities (7P’s) 10 These segmentation can make benefits as well as costs for Vinamit and to make it easier for analyzing and evaluating these segments of these two products, below is benefits and costs of each segmentation that is chosen Geographic segmentation Benefits • Focus on a limited geographic area to achieve concentration of force • The results could be seen soon and it is easier for the company to face any troubles • Provides a quick overview of differences and similarities between consumers according to geographical unit • Distinguish one customer group from others within a given market • Develop marketing offers that are most suited to each group • Easier to measure the size of the market and the media that should be used to reach it effectively • More closely identify and understand their needs, wants and demands Psychographic • Providing rich data concerning the segmentation psychological make-up of consumers • Enabling marketers to better understand the reasons behind consumers' purchases Demographic segmentation Behavioural segmentation Limitations • Restrict the geographic areas which help access easier to consumers • Fail to understand about consumers’ needs, wants and demands • Limited revenue • Shortage of information about how often and how consumers use products and services • Be used to develop customer profiles that will guide promotional efforts and ultimately strengthen a brand • Ensure about consumer’s attitude • Waste much time and to products to give convenient strategies • Easy to get success in the first step money to get information buyer readiness stage and attitude to in target market products Figure Benefits and limitations of bases of segmentation There are many reasons for Vinamit to segment its market The company's marketing can better match the needs of group customers with its strengths and offerings, when the focus is on 25 segmented markets Besides, market segmentation helps Vinamit focus their resources more effectively, and with a greater chance of success 2b.3 Targeting Associating with marketing segmentation, targeting is the next step for marketing management of Vinamit to determine more clear about their market They may choose one of these following policies: Policy Undifferentiated (Mass) Marketing Differentiated (Segmented) Marketing  Characteristics Identifies common needs of consumers  Appeals to broadest number of buyers   Treats the market as a homogeneous entity Focuses on specific needs of distinct customer groups (market segmentation) or product differentiation (disaggregation)  Utilise accurate segmentation data in creating products and values for customers or modifies the products  Costs increase due to research, product modification, production costs, distributions, promotions and so on Company resources are directed toward one or few chosen market segments  Concentrated (Niche) Marketing  The company attempts to acquire a large share of a given market segment Figure Marketing coverage strategies After analyzing the attractiveness of the segment that may be chosen for new products of Vinamit, the company should select differentiated marketing Although applying this method will make Vinamit deal with the additional costs of marketing and production, it can minimum these costs to get more profits by many strategies Following that, they should invest immediate benefits for long-term benefits by their business size, employees and suppliers 2b.4 Positioning According to two basic types Micheal Porter, there are of competitive 26 advantages including cost advantage and differentiation cost which are divided into four strategies as performed below Figure 10 Porter’s generic strategies (competitive advantage) A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceeds those of competing products (differentiation advantage) With the case of Vinamit, they are convenient with differentiation strategy which reflects premium price and extra value-added features provided for the customer Therefore, Vinamit can capitalize strengths to promote with their reputation of twenty-year brand, product quality recognized by reliable organizations, large distribution network and Vinamit’s mission and objectives for social welfare By providing superior value, Vinamit might get another difference to promote With the analysis, Vinamit could have its perceptual mapping as below High price Nutriworld Company Green highland Company Low quality Vinamit High quality 27 Bao Thanh Company Thuan Huong Company Quynh Anh Company 141 Company Low price Figure 11 Perceptual Mapping of Vinamit With this position in the market, it is a great challenge for Vinamit to compete with its competitors However, Vinamit can use its competitive advantages and its long history to get attraction of consumers with its new products 2c.1 Market coverage strategies Market coverage strategic is a method that helps in evaluating the various segments of the marketplace and deciding which segment to cover in the marketing of a particular product As the analysis above, the market coverage strategies Vinamit should use if differentiation (segmented) Marketing This is determined by many factors and the firs one is the attractiveness of a market segment 2c.2 Factors influence choice of targeting strategies 2c.2.1 Attractiveness of a Market Segment Evaluating attractiveness of a market segment is an essential factor to assess and target the market for the company Identifying factors the attractiveness of the segment will refer to potential advantages and benefits the company could get as well as predictable costs it must face, so that it is one of factors that make them consider about their targeting strategies Factors City people/Vietnamese people = 3/5 Centered-economic areas are the places to attract human resources from other regions Beef jecky Lettuce and broccoli chips Average to high income people People from 11-19 years olds account for 40% city people reach 36%, those from 20-34 get 21% Average to high income people Typicality of 11-34 year-old have large relationship and people are outdoor-oriented particular power in society and 28 High competition with many competitors like Anh Vu company, Van Duc company, Gia Phuc company and so on Average and good Low competition because never before any companies concern about this product line Approximately 30% with its strengths and Vinamit’s advantages About 60% with the most benefit is that Vinamit is the first company to discover and develop this product line Get ½ market share to be leading in the existing market Good sales: About 500 tons in 2011 80-100% to be the unique sale position and get higher future Good sales: About 1000 tons in 2011 Average profit margin after the success to compete in the market High profit margin with its attainable market of 60% and 80-90% required market share Average and good Figure 12 Attractiveness of a market segment By the attractiveness of the chosen market segment, Vinamit could have particular information and direction for their choice However, There are other factors influencing choice of target strategy and one of them is Suitability of Market Segments to Vinamit 2c.2.2 Suitability of Market Segments to Vinamit This factor helps Vinamit to consider how it fits its objectives, resources and capabilities so that the firm could make their strategies more realistic to match their abilities To make dominant in the market, Vinamit performs to offer superior values to the customers in the segment Apart from providing beef jerky and lettuce and broccoli chips for consumer’s needs and make them have more choices for daily life, it brings connection between farmers and city people to make Vietnamese people in all region of Vietnam get closer and closer Moreover, with natural materials which come from countries, these products bring the call of home village to the busy life of the city dweller and make life slower Therefore, Vinamit’s products are considered as a part in making life value In addition, serving the segment makes a positive impact on the firm’s image This makes consumers have a good impression about a firm that is really interested in consumers’ psychology and aims to customers Another aspect in this factor is the distribution channel of Vinamit In this term, Vinamit can be proud of their large and efficient distribution channel in all 64 provinces of Vietnam Following that, they have opportunities to access directly to consumers through their main 20 branch system in cities Besides, they also use one-stage distribution channel by providing supermarkets the products and this is also a effective distribution method 29 By differentiation of products for each types of customers, Vinamit has to be ready for many costs for product designs, storage and promotion which requires a high investment in both time and money With its total annual sales volume is US$2.5 Million - US$5 Million and 90% market share, Vinamit can ensure about their financial ability for developing this segment Also, the experiences and failures in the past helped Vinamit’s CEO understand about failure, patience and even challenges they need to face, so Vinamit is able to develop this segment without performance difficulties 2c.2.3 Company resources By its own resources, Vinamit is a good example for the significant influence of this term on targeting strategies Following that, Vinamit was famous for its product diversity which can meet the needs of many people in different segmentations The diversity is also shown by the weight of Vinamit packs which is could be convenient for anyone and any activities in many ages Drawing from this advantage, Vinamit could continue to develop its new products based on the direction that they are going with many experience and achievement Moreover, its capital also matches with its requirements for this segment and the evidence is that up to now, Vinamit is one of the biggest size business in Binh Duong province which have great potential development with the concern of many other businessman and the government More than 3000 employees is also a factor for Vinamit to be proud of because this may be fundamental for Vinamit’s widening and implement their strategies for controlling the market 2c.2.4 Product’s life-cycle stage The next factor that should be discussed is product’s life-cycle stage which also plays an important role in deciding targeting strategies As far as product’s life-cycle stage is concerned, beef jerky and lettuce and broccoli chips are new products which are firstly bought to the market According to benefits and costs the products could bring to the firm, in the first stage, it is said that differentiation for new products will costs a lot of money with unforeseen risk along the time On the other hand, producing new products spread to everybody will also waste much time and effort to wait and get the result Also it is really difficult for Vinamit to collect the accurate the result because, the products not focus on any thing, they not have any standard or trace to so Therefore, before giving the last decision, Vinamit should care about every aspect of target strategies 2d.1 Comparing consumer buying behaviour and organizational buying behaviour Definition (Marketing Consumer buying behaviour The decision processes and acts of individuals involved in buying and Organizational buying behaviour The decision-making process by which formal organizations 30 Concepts and Strategies, 2001) using products or services Decision-making By individual Purposes of buying Reason for buying Volume For personal consumption Whether the products meet personal needs, wants and demands or not Small establish the need for purchased products and services and identify, evaluate and choose among alternative brands and suppliers By group of people or the organization For further production, operation or resale Whether the products help the organization get much profit or not Large Figure 13 Comparing consumer buying behaviour and organizational buying behaviour 2d.2 The process of consumer buying behaviour Figure 14 The process of consumer buying behavior As the figure 14 above, there are six steps in the process of consumer buying behaviour following generic model of consumer decision making For example, supposed that you were in charge of making a soft party for your lecturer’ birthday and you needed to buy food stuffs and birthday cake for the party, but you had no idea about what to buy (problem recognition) Then you asked your mother and friends for recommendations regarding food stuffs (information search) After visiting many stalls in Big C supermarket, you decided to buy fried fruit of Vinamit although you had not tasted before After the party, you saw people really liked the food stuff especially fried fruits and got many praises from them Since then you often bought Vinamit products to enjoy Later on, many companies emerged in the same field but you not concern or notice but just keep buying Vinamit product At that time Vinamit was succeeded in delivering their value to you and got your loyalty 2d.3 Factors influencing consumers’ purchase actions Factors Cultural - Culture The influence - Refers to the set of values, ideas, and attitudes The growing child acquires a set of values, perceptions, preferences, and behavior through his or hr family or other key institutions - includes nationalities, religions, racial groups, and geographical regions 31 - Sub-culture Many sub-cultures make up important market segments, and marketers often design marketing programs tailored to their needs - Relatively homogenous and enduring divisions in a society Social classes reflect income and other indicators such as occupation, education, and area of residence - Social-class Social - Reference group - have a direct or indirect influence on the person’s attitudes or behavior (group of friend) - Family - Is the most important consumer buying organization in society, and has been researched extensively Family members constitute the most influential primary reference group For example, if your parents tell you that Vinamit is really great and they often buy for you then increasingly it becomes a habit, then you like it and also want to be bought usually - A role consist of activities that a person is expected to perform Each role carries a status Marketers are aware of the status symbol potential of products and brands - Roles and statuses Personal • - People buy different goods & services over their lifetime They eat baby food in the early years, most foods in the growing & mature years & special diets in the later years - A person’s occupation also influences his or her consumption pattern Marketers try to identify the occupational groups that have above – average interest in their products and services A company can even specialize its products for certain occupational groups - Product choices are greatly affected by one’s economic circumstances Economic stability consist of their spendable income, saving and assets, debts , borrowing power, attitude toward spending versus saving - People coming from the same subculture, social class & occupation may lead quite different lifestyles A person’s lifestyles the person’s pattern of living in the world as expressed in the persons activities, interests & opinions -Each person has a distinct personality that influences his or her buying behavior Personality can be a useful variable in analyzing consumer behavior - Age and stage in the life cycle - Occupation - Economic circumstance - Lifestyle - Personality and self-concept Psychological Motivation • • - A person has many needs at any given time A need becomes motive when it is aroused to a sufficient level of intensity Motivational researchers hold that each product is capable of arousing a unique set of motive in consumers 32 Learning • • Perception • Beliefs and attitudes • - When people act they learn Learning involves changes in an individual’s behavior arising from experience Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivating cues and providing positive reinforcement - Perception is the process by which an individual selects, organizes, & interprets information inputs to create a meaningful picture of the world A motivated person is ready to act How the motivated person actually acts is influenced by his or her perception of the situation - Through doing & learning, people acquire beliefs & attitudes These in turn influence their buying behavior Particularly important to global marketers is the fact that buyers often hold distinct disbeliefs about brands or products based on their country of origin People have attitude toward almost everything: religion, politics, clothes, music, food, and so on Attitude put them into a frame of mind of liking or disliking objects, moving toward or away from it Figure 15 Factors influencing consumers’ purchase actions 2d.4 The process of organizational buying behaviour Figure 16 The process of organizational buying behaviour With the process of organizational above, it can be applied with a case of Big C supermarket is seeking for new dried fruits for requirement of its closed customer Problem Recognition begins when the management team could not refuse the requirement Later on, after recognizing their customers’ needs, Big C prepared a general need description of characteristics and quantity of the needed item The team may want to rank the importance of reliability, durability, price, and other attributes desired in the item Big C next develops the item’s technical product specifications, often with the help of a value analysis engineering team The team decides on the best product characteristics and specifies them accordingly By showing buyers a better way to make an object, outside sellers can turn straight rebuy situations into new-task situations that give them a chance to obtain new business 33 This stage is the second step in the process which develop product specifications to solve the problem Supplier Search: Big C now conducts a supplier search to find the best vendors by phoning other companies for recommendations and in the recommendations, a company suggest Vinamit Proposal Solicitation: Big C invited qualified suppliers to submit proposals In response, some suppliers would send only a catalog or a salesperson Business marketers must be skilled in researching, writing, and presenting proposals in response to buyer proposal solicitations Supplier Selection Then Big C reviewed the proposals and selected a supplier or suppliers During supplier selection, Big C drew up a list of the desired supplier attributes and their relative importance Then Big C would rate suppliers against these attributes and identify the best suppliers and they chose Vinamit Order-Routine Specification Then Bug C prepared an order-routine specification It included the final order Vinamit and lists items such as technical specifications, quantity needed, expected time of delivery, return policies, and warranties Performance Review: Big C reviewed supplier performance by contacting their customers and ask them to rate their satisfaction The performance review may lead the buyer to continue, modify, or drop the arrangement 2d.5 Factor influencing organizational buying behavior 2d.5.1 Environmental Factors Buyers are influenced heavily by factors in the current and expected economic environment, such as the level of primary demand, the economic outlook, and the cost of money As economic uncertainty rises, business buyers cut back on new investments and attempt to reduce their inventories An increasingly important environmental factor is shortages in key materials Many companies now are more willing to buy and hold larger inventories of scarce materials to ensure adequate supply The buyers also are affected by technological, political, and competitive developments as well as culture and customs The business marketer must watch these factors, determine how they will affect the buyer, and try to turn these challenges into opportunities 2d.5.2 Organizational Factors Each buying organization has its own objectives, policies, structure and systems The business marketer must know these organizational factors as thoroughly as possible to have convenient strategies to them and to the company as well 2d.5.3 Interpersonal Factors The business marketer often finds it difficult to determine what kinds of interpersonal factors and group dynamics enter into the buying process Participants may have influence in the buying 34 decision because they control rewards and punishments, are well liked, have special expertise, or have a special relationship with other important participants Interpersonal factors are often very subtle Whenever possible, business marketers must try to understand these factors and design strategies that take them into account 2d.5.4 Individual Factors Each participant in the business buying decision process brings in personal motives, perceptions, and preferences These individual factors are affected by personal characteristics such as age, income, education, professional identification, personality, and attitudes toward risk Also, buyers have different buying styles Some may be technical types who make in-depth analyses of competitive proposals before choosing a supplier Other buyers may be intuitive negotiators who are adept at pitting the sellers against one another for the best deal 35 Conclusion This report provides an overview about the concept and process of marketing in general as well as the application on Vinamit in particular Besides I also explored concept of segmentation, targeting and positioning on the two new products including beef jerky and lettuce and broccoli chips Conducting this report helped me have more deeply knowledge on Marketing and have particular understanding on analyzing the market to propose convenient strategies for widening the business size in term of marketing I spent much of my time and effort on this field to complete my tasks but it does not void limitations The period of time for this research is only one month that is only enough for me to make a general review of Vinamit to give them recommendations based on their weaknesses If I have more time to analyze and understand more deeply about the business, I could give a more perfect report for this part Moreover, because of some recent troubles about environmental violation exposure, Vinamit has to deal with and they stooped operating almost one month, I could not update their statistics and information during that time After overcoming these difficulties, Vinamit has more experience to develop more and more strongly so that if I have opportunities next time to research about this firm, I could make the best I can Hopefully, after reading and assessing this report, the sales director could give right evaluations so that I can improve my skills and knowledge to make the next report better and better 36 Recommendation With all the knowledge I have gained in the process of doing this report, I recommend that Vinamit should focus more on their marketing concept which plays an important part in finance, operation, accounting and other functions of a business Following that, the scope of marketing should be performed in more ways like marketing experience, celebrity marketing, place marketers, properties, the strength and unique image of an organization, information technology and brand-new ideas As a result, Vinamit will determine their position in Vietnamese market and leave a memorable image in consumers Also, with the new products, Vinamit should invest to marketing research to get better result after dividing and analyzing segmentations References 37 1, Bobette Kyle, (nd), The Definition of Marketing Has It Changed? http://www.websitemarketingplan.com/marketing_management/marketing_change.htm 2, Công Phiên, (22 July 2008), Vinamit: Doanh thu tăng 60% so với kỳ năm ngoái [Online] Available: http://www.vinacorp.vn/news/vinamit-doanh-thu-tang-60-so-voi-cung-ky-nam-ngoai/ct-404576 [Assessed 27 March 2011] 3, Mike Thimmesch, (2010),What Is Marketing? How 10 Experts Define It [Online] Available: http://www.skylinetradeshowtips.com/what-is-marketing-how-10-experts-define-it/ [Assessed 03 April 2011] 4, Definition of Marketing http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx [Assessed 04 April 2011] 5, Susan Ward, (nd), Marketing, [Online] Available: http://sbinfocanada.about.com/od/marketing/g/marketing.htm [Assessed 02 April 2011] 6, Marketing Executive http://www.skillset.org/photo/careers/manufacturers/article_6727_1.asp 7, What Is Marketing Oriented Organization? http://www.blurtit.com/q120509.html 8, Marketing Oriented Business http://www.freebizplan.org/business_strategies/marketing/marketing_oriented.htm 9, Chiến lược Vinamit http://www.365ngay.com.vn/index.php? option=com_content&task=view&id=3810&Itemid=13 10, Phan Thanh, (2010), Ông Nguyễn Lâm Viên – Tổng giám đốc Vinamit : Người đưa thương hiệu VINAMIT giới [Online] Available: http://vccinews.vn/?page=detail&folder=86&Id=236 [Assesses 02 April 2011] 11, Huỳnh Duy (26 August 2008), DOANH NGHIỆP, [Online] Available: http://cafef.vn/2008826151931546CA0/vinamit-doanh-thu-thang-7-8-duy-tri-muc-tang-40.chn [Assessed 19 March 2011] 12, James Henley (nd), Marketing concept and philosophy, [Online] Available: http://www.enotes.com/management-encyclopedia/marketing-concept-philosophy [Assessed 23 March 2011] 13, Kevin Lane Keller and Philip Kotler, Marketing management, 12th edition, Pearson education, (2006) 38 14, Tom Egelhof, (nd), Small Business Marketing: How To Use The Eight Basic Marketing Functions, [Online] Available: http://www.smalltownmarketing.com/eightbasic.html [Assessed 29 March 2011] 15, Vnbrand, (nd), Trần Bảo Minh đánh thức tiềm Vinamit?, [Online] Available: http://www.vnbrand.net/Cau-chuyen-doanh-nhan/tran-bao-minh-se-danh-thuc-tiem-nangvinamit.html [Assesses April 2011] 39 ... http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx [Assessed 04 April 2011] 5, Susan Ward, (nd), Marketing, [Online] Available: http://sbinfocanada.about.com/od /marketing/ g /marketing. htm... elements of the marketing concept 12 1c.1 Marketing philosophies…………………………….………………… 12 1c.2 Elements of marketing philosophies…….…………………………… 1d The benefits and costs of using marketing approach... main characteristics of marketing that Vinamit is applying, it can be concluded that Vinamit is an oriented -marketing organization 1c.1 Marketing philosophies There are five marketing philosophies