Áp dụng marketing mix tại tổng công ty bảo hiểm bảo minh tt tiếng anh

VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES LUU BAO TRUNG MARKETING MIX APPLICATION OF BAO MINH INSURANCE CORPORATION Major: Business Administration Code: 9340101 DOCTORAL DISSERTATION SUMMARY OF BUSSINESS ADMINISTRATION HANOI, 2020 The dissertation has been completed at: GRADUATE ACADEMY OF SOCIAL SCIENCES Supervisors: Dr Nguyen Quoc Chung Dr Nguyen Binh Giang Phản biện 1: Assoc Prof Dr Le Thi Thu Thuy Phản biện 2: Assoc Prof Dr Bui Huu Duc Phản biện 3: Assoc Prof Dr Tran Minh Tuan This doctoral dissertation will be defended before the Panel of Examiners, at Graduate Academy of Social Sciences At…… on…… 20 This doctoral dissertation can be found at: National Library of Vietnam Library of Graduate Academy of Social Sciences INTRODUCTION The nessessary of research topic In the Vietnamese insurance market, Bao Minh Insurance Corporation (Bao Minh) plays a huge role in socio-economic development, improving the quality of life for people, making a major contribution to the total domestic income of the country Business activities of Bao Minh Insurance Corporation have a great influence and influence on the growth of Vietnam's insurance industry Established in the mid-1990s, along with a number of other life and non-life insurance businesses, Bao Minh has contributed to diversifying types of insurance and distribution channels in Vietnam's insurance market In order to stand firm in the market that requires Vietnamese insurance enterprises, especially Bao Minh Insurance, they must formulate an appropriate competitive strategy in which marketing activities have become the salvation for Bao Minh insurance enterprises to maintain Its competitive position in the market In addition, the context of international economic integration poses to Vietnamese insurance enterprises the need to increase their competitiveness in the domestic and international market This requires Bao Minh to pay special attention to building a marketing strategy In fact, the research and application of marketing mix in business activities of Vietnamese insurance enterprises in general and Bao Minh in particular still have many weaknesses: the theoretical and practical system is inconsistent , lack of qualified human resources, operating skills, awareness of business leaders on marketing is not high; Bao Minh lacked a strategy to create new products and had no long-term investment strategy, expanded rampant distribution channels, lacked selection; product orientation lacks creativity; The budget used for promotion is not stable, there has not been a reasonable and unified promotion process Therefore, the author chooses the topic "Marketing mix application of Bao Minh Insurance Corporation" for research With the expectation, when completing the project, it will be a useful reference for Bao Minh to promote business and enhance the position of businesses in the insurance market Research aim and tasks 2.1 Aim Based on analyzing and evaluating the marketing mix application of Bao Minh Insurance Corporation, the dissertation aim to generalize and systematize theoretical and practical issues about marketing mix in insurance business activities and propose solutions to improve the application of marketing mix, contributing to boosting business of Bao Minh 2.2 Tasks To achieve the aim of the dissertation research, it is necessary to solve the following research tasks: - Generalize and systematize theoretical and practical issues about marketing mix in insurance business; - Analyze and assess the status of marketing mix application of Bao Minh Insurance Corporation; - Analyze and assess the status of marketing mix application of Bao Minh Insurance Corporation Research subject and scope 3.1 Research subject The object of the dissertation research is the content of marketing mix and the application of marketing mix in Bao Minh's business activities 3.2 Research scope + Scope of content: Bao Minh's marketing mix application is focused mainly through seven decisions: product, price, place, promotion, people, process, physical evidence + Scope of space: marketing mix application is conducted at the headquarters of Bao Minh Because this is the place to build programs, plans, propose solutions, organize implementation and guide member units to implement marketing mix decisions (the marketing department of Bao Minh is responsible for implementation) + Scope of research time: Duration of research dissertation: 20162019; Time of data collection: From after 2010 Research methods 4.1 Approach method The topic approaches in an interdisciplinary and multi-dimensional direction from the perspective of history, economics, politics and law; a combination of a bottom-up approach (from the workforce working in Bao Minh itself) and a top-down approach (from insurance agencies in general) 4.2 Research method In this dissertation, the author uses qualitative and quantitative research methods Includes comparative analysis, exploratory factor analysis (EFA), syndissertation, descriptive statistics, systematization of documents, comparisons and actual surveys by questionnaires, face-to-face interviews, observations and evaluate These are popular high-quality scientific research methods that allow the author to synthesize, inherit and analyze collected material (both primary and secondary) to perform the given tasks in the dissertation New scientific contributions of the dissertation Firstly, the dissertation has drawn lessons on marketing mix application of some insurance companies (domestic and foreign) doing business in Vietnam The dissertation has pointed out the successes, limitations and causes of the limitations when marketing mix application in Bao Minh, based on which proposed solutions to improve marketing mix application in Bao Minh Secondly, the dissertation thinks that the specific characteristics of insurance products dominate the business activities of insurance enterprises This is an intangible product and service that customers cannot see, they can only feel and evaluate before buying and customers decide to pay for the product but may not own the translated product if not at risk This feature dominates the buying behavior of customers and for an effective business insurance business must apply marketing-mix well In essence, marketing mix is a tool to create a competitive advantage for insurance businesses if they use this tool well This is a new approach on marketing mix tool placement in insurance business And thirdly, the dissertation shows that the application of marketing mix in insurance business is a complex of seven types of decisions, including: product, price, place, promotion, people, processes and physical evidence Evaluate the effectiveness of this activity through four basic criteria, where the criteria for increasing the number of customers are placed in the number one position This is a new approach because creating a new customer is crucial to the survival of the enterprise This content contributes to enrich the theory of marketing mix application in insurance business Theoretical and practical significance of the research 6.1 Theoretical significance The dissertation contributes to building and perfecting the scientific basis for marketing mix application in insurance business in Vietnam Analyze and evaluate the application of marketing mix in Bao Minh on the aspects of product, price, distribution, promotion, human resources, operating procedures, facilities and facilities logically Analysis and evaluation of impact factors through qualitative and quantitative research models with seven groups of impact factors including economy, politics, law and society, technology, enterprise, customer, risk management, and competion 6.2 Practical significance Firstly, the dissertation results show the status of marketing mix application, performance evaluation criteria and factors affecting the application of marketing mix in Bao Minh in recent years, thereby helping managers have a better understanding of the operating mechanism and how to use the effective marketing mix tool in the race to gain a competitive advantage to further affirm Bao Minh's leading position in the Vietnamese insurance market Secondly, the proposed solutions are directly linked to the seven types of marketing mix decisions that Bao Minh needs to make, both practical and feasible These solutions are implemented without prerequisites and need no roadmap, because these decisions are directly related to Bao Minh's business activities, which are both topical and long-term And thirdly, the findings from Bao Minh's marketing mix can be useful references for other insurance businesses in Vietnam The structure of the dissertation In addition to the introduction, conclusions, references, appendices, the dissertation is structured into chapters: Chapter 1: Overview of research situation Chapter 2: Theoretical and practical basis for marketing mix application in insurance business Chapter 3: Current situation of marketing mix application in Bao Minh Chapter 4: Orientation of business strategy and solutions to improve marketing mix application in Bao Minh CHAPTER 1: OVERVIEW OF RESEARCH SITUATION 1.1 Domestic studies Vietnam's insurance market has been developing strongly since the 1990s It was also the period when marketing began to be researched and taught in our country And this is also the time when domestic enterprises start focusing on investing and applying marketing in their business activities Therefore, there have been studies on insurance business activities, research on marketing of insurance enterprises, and general marketing issues such as basic marketing, service marketing However, in-depth studies of marketing mix in insurance business are rare and even unavailable Here are some typical studies: The theory of marketing mix is mentioned in many domestic authors such as author Ngo Xuan Binh in 2008 on the textbook "basic marketing", Luu Van Nghiem in 2008 on "service marketing", Tran Minh Dao 2008 on "basic marketing"; "B2B Marketing - organized customer marketing" by Luu Dan Tho in 2016; Dissertation: "Solutions to develop non-life insurance market in Vietnam", 2012, Trinh Thi Xuan Dung; "Monitoring financial safety for Vietnamese insurance enterprises", 2013, by Hoang Tran Hau, Nguyen Tien Hung; "Marketing in insurance exploitation activities", Bao Viet Financial and Insurance Group, 2006, Statistical Publishing house 1.2 Foreign studies Up to now, there have been many researches on marketing activities of enterprises abroad, but there have not been any scientific studies on intensive marketing mix in insurance business activities Some of the related research works can be mentioned: Basic marketing theory, the main marketing tools have been mentioned by many authors such as Neil Border, 1964 with "The concept of marketing mix"; McCarthy, E Jerome, 1960 with the work “Basic marketing: A managerial approach”; Phiplip Kotler, 1969, 1972, 1975, 2015, in the project "Broadening the concept of marketing, generic concept of marketing, marketing for nonprofit organizations, marketing management"; Booms, Bernard H and Bitner, Mary J., 1981 with the work "marketing Strategies and Organization Structures for Service Firms"; "Mastering Insurance marketing: Insurance marketing Is Changing Dramatically"; “7P’s of services marketing in insurance and banking services” by G Kalaimani, Dean of Business Administration University of Sri Vasavi College Erode… 1.3 Assessing the success and limitations of domestic and foreign studies and research gaps 1.3.1 Assessing the success and limitations of domestic and foreign studies With the research presented above, it is allowed to draw some outstanding achievements of these works as follows: The domestic and foreign studies have shown the basic theoretical framework of marketing mix Identify and analyze the application of 7P in the insurance sector in general in some countries including Vietnam This 7P includes products, pricing, distribution, promotion, operating procedures, human resources and facilities and facilities They are analyzed based on correlation with market and business environment Limited points in these studies include: Studies on marketing mix in foreign insurance enterprises are still very qualitative or low quantitative, very few works have actual surveys and surveys on markeing mix activities of Insurance enterprises whose results are mainly published based on the reports of insurance enterprises It is important to emphasize that foreign insurance companies have entered Vietnam insurance market very early and are occupying a great advantage in terms of revenue and market share in Vietnam's insurance market This is a big challenge for Vietnam insurance enterprises, including Bao Minh right in the domestic market, requiring Vietnamese insurance enterprises to have an appropriate business strategy 1.3.2 Research gaps Thus, there are a number of domestic and foreign scientific studies on marketing mixes and insurance companies' activities on the Vietnamese market However, there has been no scientific research on marketing mix in business activities of Bao Minh Insurance Corporation in the Vietnam insurance market This is the biggest gap in the research and application of marketing mix into specific insurance businesses in Vietnam 1.4 Research questions Question 1: Does the application of Bao Minh marketing mix inherit the experience of marketing mix application of other insurance enterprises? Question 2: In the process of marketing mix, what difficulties does Bao Minh encounter? Question 3: How does the operation of marketing mix applicationof Bao Minh happen? Question 4: What factors affect the application of Bao Minh's marketing mix? Question 5: What are the solutions to improve the application of marketing mix for Bao Minh in the period 2020-2025? CHAPTER THEORETICAL AND PRACTICAL BASIS ON APPLICATION OF MIXING MARKETING IN INSURANCE BUSINESS 2.1 Overview of insurance and insurance businesses 2.1.1 Concept, insurance classification Insurance is understood as a transaction, expressed by the terms, in which the individual or organization will be financially protected or entitled to compensation for damages from an insurance enterprise Insurance enterprises will consider customers' risks to pay reasonable expenses to insurance buyers Insurance is used to protect against risks such as financial losses that may cause damage to the person or property of the buyer or may be liability when the buyer causes damage to the third party There are many different types of insurance mechanisms, and almost any individual or business can find an insurance company that is willing to guarantee them depending on the price To manage these types of insurance, people are classified into groups based on different criteria, specifically as follows: Classification by subject of insurance; Classification by the mode of management; Classification by operational purposes; Classified by insurance techniques 2.1.2 The role and characteristics of insurance 2.1.2.1.The role of insurance 2.1.2.2 Characteristics of insurance 2.1.3 Insurance business activities Insurance business means an operation of an insurance enterprise for profit-making purposes whereby an insurance enterprise accepts the risks of the assured, on the basis that the insurance buyer pays insurance premiums to the insurance enterprise to get beneficiary or indemnify the assured when an insurance event occurs 2.2 Marketing mix application in insurance business 2.2.1 Overview of marketing mix application It can be said that marketing mix applicationin insurance business is a complex of decisions on products, prices, place, promotion, people, process and physical evidence that enterprises actually carry out to obtain the desired response from the target market In fact, this marketing mix system describes a specific combination of the above seven types of decisions and the implementation of those decisions allows the insurer to meet market needs and achieve business goalst The marketing manager is responsible for designing and selecting the best combination of them In order to organize business activities well, insurance enterprises need to first identify the contents of the marketing mix well 2.2.2 The implication content of marketing mix applicationin insurance business The content of marketing mix in insurance business is a set of inclusion: 2.2.2.1 Product 2.2.2.2 Price1 2.2.2.3 Place 2.2.2.4 Promotion 2.2.2.5 People 2.2.2.6 Process 2.2.2.7 Physical evidence 2.2.3 The criteria to evaluate the effectiveness of marketing mix application Here are some criteria to evaluate the effectiveness of marketing mix application used by many insurance businesses 2.2.3.1 Increase the number of customers 2.2.3.2 Return rate (ROI) 2.2.3.3 Sales 2.2.3.4 Profits on advertising costs (ROAS) 2.2.3.5 Feedback from staff and partners 2.2.3.6 Action of competitors 2.3.3.7 Customer satisfaction level on marketing mix application Trong kinh doanh bảo hiểm giá sản phẩm bảo hiểm đồng nghĩa với phí bảo hiểm 3.2 Marketing mix application of Bao Minh 3.2.1 Product As is well known, Bao Minh is the third insurance company in the market which carries out non-life insurance, reinsurance and financial investment activities The company's product policy is expressed through decisions about product categories, product quality and brands The objective of Bao Minh's product policy is to provide customers with increasingly completed quality products, rich and flexible products, helping the company to enhance its position in the market 3.2.1.1 Product categories Currently, Bao Minh provides hundreds of insurance products of all kinds (for details see the table of insurance types of Bao Minh) These products are divided into Bao Minh's main insurance product groups including: 1) motor vehicle insurance, 2) human insurance (life insurance), 3) property and technical insurance, 4) marine insurance, 5) aviation insurance, 6) agricultural insurance Box 1: Evaluation of products in marketing mix application Consider marketing mix is a complex system of types of decisions as known in insurance business in Bao Minh is a new problem Is it common here to focus on the type of product decision rich? And how to promote it? Le Anh Tuan, Director of Bao Minh Marketing Department Phone number: 0908240540 3.2.1.2 Quality of insurance products and brands Bao Minh especially attaches special importance to the quality of product and service shown by improving the quality of customer service with the most complete and convenient service system today Bao Minh has a complete brand identity system from (Bao Minh) quite simple and easy to remember, the logo is designed based on the national flower of Vietnam, with the motto of "dedicated" In recent years, Bao Minh brand has affirmed its position in the market 3.2.1.3 Customer reviews about Bao Minh's insurance products The survey showed that customers' satisfaction with the product diversity of Bao Minh is not high, with an average of 2.73 and 42.11% of the votes for average satisfaction Although Bao Minh has tried hard to diversify its products, this shows that Bao Minh needs to try harder in the future When the product is diversified at a high level, it will create a competitive advantage for Bao Minh The remaining four observed 11 variables are at an average level of> This shows that the quality of Bao Minh's insurance products, customer care, the differences of Bao Minh's products and brands are assessed highly by customers Bao Minh needs to develop this advantage in the future 3.2.2 Price 3.2.2.1 Price policy of Bao Minh Bao Minh has built a relatively reasonable price list for each product group over the years Bao Minh implements the preferential price policy applied to customers who have a period of insurance policy in Bao Minh for a long time, customers who have a history of low losses when renewing have policies of discount and discount In fact, the current pricing policy of Bao Minh, despite being competitive in the market, has not met the expectation of reasonable costs for insurance customers 3.2.1.2 Customer reviews about insurance product prices Survey results show that the level of customer satisfaction on flexibility and in accordance with customer needs is not high The average score is only 2.64 and 62.63% of the customer’s votes rated at average This shows that the customer satisfaction level of Bao Minh's product price corresponds to the actual product pricing of this business mentioned above The remaining observed variables achieved an average score of> This is an advantage, Bao Minh needs to promote in the coming years 3.2.3 Place 3.2.3.1 Distribution channel of Bao Minh Box 3: Evaluation of Bao Minh's distribution channel So far, the plan to implement the decisions associated with 7P is made by the corporation, and the implementation is assigned to member units This reduces the activeness of the member units, corporations need to adjust accordingly Need to build the main and priority distribution channels The determination of this plan requires the participation of a number of units based in big cities with many customers such as Ho Chi Minh City, Hanoi, Da Nang To be fair, the diversity of decisions Bao Minh's distribution plan has not been as expected Pham Thanh Hai, Director Bao Minh Dong Do Phone number: 0904038669 3.2.3.2 Comments of customers about the distribution of Bao Minh's insurance products 12 Survey results show that the level of customer satisfaction about the diversity of distribution channels that Bao Minh is using is low; the average score is only 2.63 and 52.63% of the rating 52, 63% on average This suggests, in the future, Bao Minh needs to diversify the types of product distribution channels Moreover, the level of customer satisfaction with the observed variables PD3.2, PD3.3, PD3.4 PD3.5 are all high This is an advantage, Bao Minh needs to promote 3.2.4 Promotion 3.2.4.1 Promotion activities of Bao Minh Bao Minh has used many ways to promote products, where people often focus on advertising and public relations through which to position the brand Bao Minh has used the official website to advertise and link with other websites to make advertising banners for products In addition, Bao Minh is also a sponsor of many programs, events such as sponsoring insurance for the "Red Journey" program, giving gifts to Nguyen Duc Canh scholarship students By these activities, Bao Minh aims to target potential customers in the retail market segment and affirm its position in Vietnam's insurance market 3.2.4.2 Customer's opinion on promotion activities of Bao Minh The survey showed that most of the interviewed people said that the promotion policy of Bao Minh was not diversified This is reflected in the average score of only 2.62 (