Marketing mix at jsc trade and tourism au viet

Lunghwa Universityof Scienceand Technology Department of Business Administration Thesis for a Master’s Degree Marketing mix at JSC Trade and Tourism Au Viet Researcher: Nguyen Thi Minh Thu Supervisor: Assoc.Prof PhD Pham Thi Lien Dr.Wang, Kenneth November, 2018 Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board This is to certify that the Master’s Degree Examinations Board has approved the thesis Marketing mix at JSC Trade and Tourism Au Vietpublished by Mr ／ Ms Nguyen Thi Minh Thu in the Master Program of Graduate School of Department of Business Administration Master’s Degree Examination Board Board Members: Prof, PhD Tsan Eric Dr Nguyen Phu Hung Dr Nguyen Thi Hong Hanh Advisors：Assoc.Prof PhD Pham Thi Lien Dr.Wang, Kenneth Chair：Prof PhD Tsan Eric Date：23/11/2018 ABSTRACT Thesis Title: Marketing mix at JSC Trade and Tourism Au Viet University: Lunghwa University of Science and Technology Graduate School: Department of Business Administration Date: November, 2018 Degree: Master Researcher: Nguyen Thi Minh Thu Advisor: Pham Thi Lien Wang, Kenneth Keywords: Marketing mix, JSC Trade and Tourism Au Viet The thesis systematizes the basic theoretical issues of marketing mix in tourism business, studies and evaluates the current situation of marketing activities at JSC Trade and Tourism Au Vietin the 2015 – 2017 period of time The thesis utilizes research methods such as questionnaire survey method, in-depth interview method to collect marketing mix information, database in JSC Trade and Tourism Au Viet From that point, atable of frequencies is used to process, analyze the data, and provide accurate assessments of the research problem Lastly, the thesis recommends several solutions for the company to improve the efficiency of marketing mix implementation in the upcoming years i ACKNOWLEDGEMENT I sincerely thank the teacher Prof Pham Thi Lien, and corporate officers of Marketing at JSC Trade and Tourism Au Viet devoted to guide and help me complete this thesis Thank you! Author Nguyen ThiMinh Thu ii TABLE OF CONTENTS ABSTRACT i ACKNOWLEDGEMENT ii TABLE OF CONTENTS iii LIST OF TABLE vii LIST OF FIGURE viii INTRODUCTION 1.1 Background of the study Error! Bookmark not defined 1.2 Objectives of the study Error! Bookmark not defined 1.3 Scope of the study Error! Bookmark not defined 1.4 Contribution of the study Error! Bookmark not defined 1.5 Structure of the study Error! Bookmark not defined LITERATURE REVIEW .4 2.1 Overview of travel business 2.1.1 Definition of travel company 2.1.2 Types of travel company 2.1.3 Product - service system 2.2 Marketing and marketing mix 2.2.1 Marketing in general Error! Bookmark not defined 2.2.2 Marketing mix 2.2.3 Product 11 1.2.3.1 Individual product decisions 12 1.2.3.2 Product line and product mix decisions 14 2.2.4 Price 14 2.2.4.1 Pricing objectives 15 2.2.4.2 Major pricing strategies 15 2.2.4.3 Additional pricing considerations 16 2.2.5 Place 18 2.2.5.1 Types of distribution channels 19 2.2.5.2 Types of intermediaries 20 iii 2.2.5.3 Channel design decisions 20 2.2.6 Promotion 22 2.2.6.1 Promotion mix tools 23 2.2.6.2 Developing effective marketing communications 24 2.2.7 People 28 2.2.8 Process Error! Bookmark not defined 2.2.9 Physical Evidence 31 2.3 Overview of Research situation 32 2.3.1 Overview international research situation related to the topic 32 2.3.2 Overview domestic research situation related to the topic 35 RESEARCH METHODOLOGY 36 3.1 Research method 36 3.1.1 Data collection method 36 3.1.1.1 Primary data collection method 36 3.1.2 Data handling method 39 3.2.1 Desk research 40 3.2.2 Customer survey 40 3.2.3 Synthetic method 40 3.3 Time and avenue to the research 40 3.3.1 Research avenue 40 3.3.2 Research time 40 3.4 Results analysis Error! Bookmark not defined MARKETING MIX IMPLEMENTATION AT JSC TRADE AND TOURISM AU VIET 42 4.1 Overview of business activities of the company 42 4.1.1 Company introduction 42 3.1.1.1 Development path 42 3.1.1.2 Company structure 43 3.1.1.3 Structure of labor force 46 4.1.2 Features of the major customer source 48 4.1.3 Business results of the company 49 4.2 Analysis of marketing mix current situation 52 4.2.1 Product policies 52 iv 4.2.1.1 Diversity of product 52 4.2.1.2 Seasonality of product 53 4.2.2 Price policies 55 4.2.3 Distribution policies 58 4.2.4 Mixed promotion policies 61 4.2.4.1 Communication through the internet 61 4.2.4.2 Advertisement 61 4.2.4.3 Public relations 62 4.2.4.4 Promotional program 62 4.2.5 People policies 63 4.2.6 Process policies 65 4.2.7 Physical evidence policy 67 4.3 Analysis on statistics of sample information 69 4.3.1 Occupation 69 4.3.2 Income 69 4.3.3 Age 70 4.3.4 Gender 71 4.4 General assessment of marketing mix at JSC Trade and Tourism Au Viet 71 4.4.1 Strong points 71 4.4.2 Weak points 72 4.4.3 Reasons 73 SUGGESTIONS TO PROMOTE MARKETING MIX AT JSC TRADE AND TOURISM AU VIET 74 5.1 Goals 74 5.1.1 Overall goals 74 5.1.2 Marketing goals 74 5.2 Suggestions to promote marketing mix activities at JSC Trade and Tourism Au Viet 75 5.2.1 Suggestions on product 75 5.2.1.1 Enhancing the quality of tour guides 75 5.2.1.2 Enhancing the quality of services 76 5.2.2 Suggestions on price 77 5.2.3 Suggestions on distribution 78 5.2.4 Suggestions on promotion 79 v 5.2.5 Suggestions on people 80 5.2.6 Suggestions on process 81 5.2.7 Suggestions on physical evidence 81 REFERENCES 85 APPENDICES 88 APPENDIX 1: SURVEY QUESTIONNAIRE 88 APPENDIX 2: IN DEPTH INTERVIEW 91 APPENDIX 3: DESCRIPTIVE STATISTICS RESULT 93 vi LIST OF TABLE No Table Content Table Statistics of surveyed customers 37 Table Structure of labor force 45 Table Business results from 2015 to 2017 48 Table Tourist target table from 2015 to 2017 48 vii Page possible It is hoped that the research will partly help the company's business achieve better results in the future 84 REFERENCES Åkerlund, P (2004) Marketing Communications: How is the process? 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The advantages of an alternative description Current Issues in Tourism, 3(4), pp 364–368 Marc (2014a) Marketing Mix – Place in Four P’s [Internet], Marketing,Entrepreneurial Insights Retrieved from: http://www.entrepreneurialinsights.com/place-four-ps- marketing-mix/ Marc (2014b) Marketing Mix – Promotion in Four P’s [Internet], Marketing,Entrepreneurial Insights Retrieved from: http://www.entrepreneurialinsights.com/promotion-four-ps-marketing-mix/ Marketing91 (n.d.) Marketing Mix – The 4P’s of marketing [Internet], Marketing91 Retrieved from: http://www.marketing91.com/marketing-mix-4-ps-marketing/ McCarthy, E J (1964) Basic Marketing Irwin, R D Cited in: Goi, C L (2009) A Review of Marketing Mix: 4Ps or More? International Journal of Marketing Studies.1(1) McIntosh, R W.,Goeldner, C R (1986) Tourism: Principles, practices, philosophies New York: Wiley Perreault, W D., McCarthy, E J (2002) Basic marketing: a global-managerial approach 14th ed McGraw-Hill/Irwin 86 Plog, S C (1974) Why destination areas rise and fall in popularity Cornell Hotel and Restaurant Administration Quarterly, 14(4), pp 55–58 Rafiq, M., Ahmed, P K (1995), Using the 7Ps as a generic marketing mix: anexploratory survey of UK and European marketing academics Marketing Intelligence & Planning 13 (9), pp.4-15 Sheldon, P J (1991) An authorship analysis of tourism research Annals of Tourism Research, 18(3), pp 473–484 Sima, G M (2015) The Impact of Tourism Marketing Mix Elements on the Satisfaction of Inbound Tourists to Jordan.International Journal of Business and Social Science Singh, M (2012) Marketing Mix of 4P’S for Competitive Advantage IOSR Journal of Business and Management 3(6), pp.40-45 Smith, V L (1977) Hosts and guests: The anthropology of tourism Philadelphia: University of Pennsylvania Press The Chartered Institute of Marketing (2009) Marketing and the 7Ps: A briefsummary of marketing and how it works [Internet], The Chartered Institute ofMarketing Retrieved from: http://www.cim.co.uk/files/7ps.pdf Urška, B et al., (2016).Marketing Mix and Tourism Destination Image: The Study of Destination Bled, Slovenia.Organizacija, Volume 49 Vargas, R D (2005) Integrated Marketing Communications - Effective,Comprehensive Approach Business Venture Website http://auviettravel.vn/2016/03/gioi-thieu-ve-cong-ty-cp-tm-va-du-lich-au-viet/ http://auviettravel.vn/lien-he/ http://vietnamtourism.gov.vn/index.php/docs/436 87 An APPENDICES APPENDIX 1: SURVEY QUESTIONNAIRE Hi, everyone! My name is Nguyen Minh Thu, major in Business Administration I am conducting a survey to find out suggestions to develop Marketing-mix at JSC Trade and Tourism Au Viet I am looking forward to your help so that I can complete this survey Sorting out Have you heard about JSC Trade and Tourism Au Viet? Yes (Continue interviewing) No (Stop) Have you used the company’s products before? Yes (Continue interviewing) No (Stop) Main contents Please express your opinion with the following statements according to this convention (1: Not at all Satisfied; 2: Partly Satisfied; 3: Satisfied; 4: More than Satisfied; 5: Very satisfied) No Not at all Satisfi ed (1) I Service Product Au Viet provides a wide range of new, attractive tours 88 Partly Satisfi ed (2) More Satisfi than ed (3) Satisfi ed (4) Very satisfi ed (5) Tour duration is appropriated designed according to tourist group Tour services are attractive, diversified Hotels, motels have good facilities Tour guides are experienced and professional II Price Product price is competitive Price matches product quality Willing to pay even if the price increases III Distribution The company is conveniently headquartered Easy to buy travel tours Use a wide range of distribution channels IV Promotion Product information is detailed, clear, easy to access Company image is widely promoted Promotional programs are diversified and regular Frequently finance social activities V People 89 Employees understand and show interest to customers Employees are qualified Employees are polite, friendly to customers Employees frequently contact customers When you encounter problems, Au Viet expresses sincere attention, helps you resolve complaints VI Process Employees consult the tour in great details The procedure of tour operation is simple and fast Taking good care of customer before, during and after the company tour VII Physical evidence Au Viet provides a detailed brochure of the tour Au Viet provides useful glossary on foreign tours Au Viet has a good spatial layout Au Viet give customer practical souvenirs and meaningful mementos VIII Overall assessment 90 Au Viet is a priority when you go on a tour Ready to introduce Au Viet to others Satisfaction level when using Au Viet’s services Survey participant’s information Full Name……………………………………………… Address………………………………………………… Occupation? 1.Student 2.Civil servants 3.Businessman 4.Worker 5.Lecturer 6.Other Age? 18 - 25 26 - 35 35 - 45 >45 Gender? Male Female Income? 10m - Head of Marketing department of JSC Trade and Tourism Au Viet Full Name:…………………………………………………… Position:…………………………………………………… Telephone Number:…………………………………………… Date of interview:……………………………………………… Interview question Speed of growth of JSC Trade and Tourism Au Viet in the last years? (2015 – 2017)? Does your company have marketing department? How many employees are there? Does your company have marketing strategy to enhance marketing effectiveness? If yes, how has this strategy been built and implemented? If no, how has your company dealt with market and marketing activities? Please provide information on your company’s marketing activities: a How have your company’s marketing activities been implemented? b Does your company have periodic marketing strategy? c Does your company have any plans or promoting activities? How does it work? d Please express your opinion about your company’s recent marketing results (via elements: product, price, place (distribution) and promotion) e Does your company have policies on product, price, place and promotion? How they work? f Do your company assess marketing effectiveness? g What is your company marketing strategies in the near future? Who are your company’s target customers? From your point of view, what are advantages and disadvantages of your company’s marketing implementation? Ways to overcome the difficulties? Thank you for your precious time! 92 APPENDIX 3: DESCRIPTIVE STATISTICS RESULT Occupation 93 Percent No Occupation Frequency Civil servants 93 46.5 46.5 Student 33 16.5 60.3 Teacher 74 37.0 100.0 Total 200 100 age Accumulated percent Gender No Gender Frequency Percentage Accumulated percent Male 75 37.5 37.5 Female 125 62.5 100 Total 200 100 Income No Income Frequency Percentage Accumulated percent 10 million 3.5 100 Total 200 100 94 Age No Age Frequency Percentage Accumulated percent 18 – 25 years old 46 23 23 26 – 35 years old 102 51 74 36 – 45 years old 40 20 94 >45 years old 12 100 Total 200 100 95 APPENDIX 4: CUSTOMER FEEDBACK ON ELEMENTS Product Product N Average Score 200 3.910 200 4.080 Tour services are attractive, diversified 200 3.635 Hotels, motels have good facilities 200 3,815 Tour guides are experienced and professional 200 3,560 N Average Score Product price is competitive 200 4.045 Price matches product quality 200 4.615 Willing to pay even if the price increases 200 2.285 N Average Score 200 3.500 Au Viet provides a wide range of new, attractive tours Tour duration is appropriated designed according to tourist group Price Price Distribution Distribution The company is conveniently headquartered 96 Easy to buy travel tours 200 3.605 Use a wide range of distribution channels 200 3.350 N Average Score Product information is detailed, clear, easy to access 200 3.370 Company image is widely promoted 200 3.945 Promotional programs are diversified and regular 200 3.745 Frequently finance social activities 200 3.815 N Average Score 200 2.855 Employees frequently contact customers 200 2.600 Employees are polite, friendly 200 2.715 Employees understand and show interests to customers 200 2.635 Employees are qualified 200 2.375 N Average Score 200 3.375 Promotion Promotion People People When you encounter problems, Au Viet expresses sincere attention and helps you resolve complaints Process People Take good care of guest before, during and after the 97 company tour The procedure of tour operation is simple and fast 200 3.590 Employees consult the tour in great details 200 3.450 N Average Score Au Viet provides a detailed brochure of the tour 200 2.600 Au Viet provides useful glossary on foreign tours 200 2.715 Au Viet has a good spatial layout 200 2.375 200 2.635 Physical evidence People Au Viet give customer practical souvenirs and meaningful mementos 98 ... questions: What is the current situation of marketing activities in JSC Trade and Tourism Au Viet? What are recommendations to improve marketing activities at JSC Trade and Tourism Au Viet? 1.2... improve marketing mix performance at JSC Trade and Tourism Au Viet 3.3 Time and avenue to the research 3.3.1 Research avenue The research has been carried out at JSC Trade and Tourism Au Viet 3.3.2... method to collect marketing mix information, database in JSC Trade and Tourism Au Viet From that point, atable of frequencies is used to process, analyze the data, and provide accurate assessments