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PHÂN TÍCH ẢNH HƯỞNG CỦA CƠNG NGHỆ TỚI HOẠT ĐỘNG MARKETING New Marketing Technologies and Their impact Executive Summary Introduction Introduces the readers to a brief idea on marketing and marketing mediums Traditional marketing methods Speaks about the various marketing methods and it’s value before and now Vietnam and the net Here we explain the expansion of internet users in Vietnam with graphs on the expansion New Media Technology - Viral Marketing Viral marketing and an example of a recent viral marketing ‘explosion’ New Media Technology -Social Media Marketing Explains what social media marketing and a comparison between viral and social media marketing Conclusion This concludes the article and chooses which is the best form of marketing References Page of 13 Introduction Marketing is defined in many ways by many people but marketing is when you want someone to know about your product, or you want to get the attention of someone to buy your product or services Therefore marketing is actually a medium to ‘connect’ customers to your product Marketing is very important to any organization and is a process where marketing research is carefully planned out and carried out to bring products to a new customer or an existing customer However, it’s not as simple as it’s made out to be as marketing consist of elements which must be coordinated very carefully for marketing to be successful These elements are called the P's of marketing: product, price, place and promotion and only when these P’s are perfectly coordinated can they successively satisfy the needs and desires of the customers Every time a customer come into a shop or an organization, there is always the opportunity to carry out marketing For example a waiting room in a clinic, there will always be posters of medical products hanging out on the wall When you make a call to a service provider or an organization, and get connected to a voice recorder because the extension is busy, that is marketing In a departmental store where free sample cheese or milk or a drink is offered is marketing In a hotel restaurant when the chef or the restaurant manager come up to you and ask you how was your meal, that is marketing For example in ANZ Hanoi where I work, we have a customer service counter but to improve our service and to market our products, we try to ensure that a personal meets the customer to inquire their needs, and from here we go one step further when we recognize the possibility of selling or up-selling, the customer service personal calls in a sales manager to try and close a deal, may it be in mortgage or deposits or personal loans, that is marketing Good marketing is how we get customers and more importantly how we keep our customer We have to know and understand our customers so that we can sell them a suitable product Page of 13 In short, in marketing we tell the customers, this is my product and this is what the product can for you and how you can benefit from our product but always remembering to cater for the needs and satisfaction of the customer There are many medium to marketing, for example traditional marketing may include online or off line advertising like newspapers, articles, yellow pages, flyers, handouts, direct mails, banners, trade shows, business cards, shout-out etc And online marketing may includes social networks, viral, blogs, emails, company websites, search engines, auction websites, photo sharing websites, mobile marketing (phone calls, SMS, MMS, WAP, Bluetooth etc.) Traditional marketing methods Marketing have been around since the beginning of time, however the method of marketing have changed tremendously Traditional marketing are basically done on newspapers, magazine, catalogs brochures, handouts, TV or radio advertisings During the past years this kind of marketing has proven to be effective and until today they still are These marketing methods still exist today because they are still a very important type of medium For example if the company is targeting a certain group of people who have no access or know how to use the internet, this medium is still important In most countries people spend hours going to work because of traffic jam on the roads, for this situation radio advertisements can play a big part in marketing a product In the trains and stations where people commute to work, we find lots of advertisement poster space to attract the attention of customers Even with news on line, lots of people still prefer to read the newspapers, they have always been part of our life and I suppose will always be Newspapers are also easily accessible to people everywhere, example in a waiting room they are always magazines on racks and not surprisingly you’ll find a current newspaper Billboard too will not go away anytime soon, on the way to any airport or on top of any fairly tall building or open spaces on the highway, you can always see billboards Flyers, signage, banners, leaflets, TV adverts will also not go away Page of 13 (Still a popular means of getting customers to see your products- flyer) Small time business people or street vendors depend on marketing to advertise or to make people aware of their products, we can still hear the ice-cream seller with his ring on a bell or a song on his truck The noodle sellers in the streets of HCMC still call out their product, or a cake seller on their bicycles shouting out their wares Vietnam and the net Lets analyze and see how the growth of internet have impacted the new media technologies in Vietnam See below the graphs and statistics in a Report on Vietnam Internet Resources 2012 done by Vietnam Internet Network Information Center (VNNIC) for internet users and internet subscribes From the graphs we can see the tremendous growth of internet users and subscribers Users : From 3.1 million in 2003 to 31 million in 2012 Subscribers : From 9K in 2003 to 4.1 million in 2012 Page of 13 The report also states that this figure means that 34% of the population in Vietnam now uses the internet http://www.vnnic.vn There are a few network service suppliers in Vietnam namely FPT, Viettel, VNPT, NetNam and so on and are always competing with each other for market share, as such because of this, the service have become better (complete with high speed access) and have grown very fast and in a way bringing the subscription price down, this might also be one of the factors of the fast growth in internet subscribers over the past years Page of 13 With the growth and service improvements of the internet together with growth of mobile devices, and also the very much competitive pricing in the mobile market, smartphones users have also grown According to a online survey done by Epinion Vietnam in October 2013, done on 1,200 people (age group 15 to 45) from all socio-economic classes are as follows:66% of those survey used either Smartphones or iPads 90% used the web daily 99% use Facebook and have social network accounts 50% are members of fanpages or clubs with a common hobby or concern The survey also includes that popular activities done on the internet are mainly reading newspapers, checking mails, interacting on social network, chatting, listening to music and searching information Most importantly the survey reports that 50% of those surveyed shop online and the popular products that they buy include, household products, personal care and electronic products Another reason why Vietnamese people spend more and more time on the net is because most cafés offer free internet service and people nowadays love to spend time drinking and surfing Out of 1,200 people surveyed, 50% or 600 people bought some product on the web and the age group range from 15-45 and fifty % were women and the rest men It only goes to show that people are now more comfortable buying products online Another interesting fact from the survey is that 90% of the people use the net daily for any kind of reason Therefore if I have a product and if I can blog about my product and make it interestingly enough or make my message clear enough for people to understand, then I can tap into this 90% market In order to be ‘seen’ in the market we have to create a ‘buzz’, we have to create content that are useful, or enjoyable or funny so that people come back for more, but at the end it must satisfy the customers need Page of 13 Today, we not only have the computers and laptops that can access the internet, but we also have the, mobile equipments like the smartphones, notepads, tablets and even TV’s that access the internet Cost of smartphones and computers have gone down tremendously, for example nowadays you can get a smartphone for about or little less than 100USD, 300USD for a tablet or notepad and about 400USD for a computer or laptop Therefore there is a tremendous penetration of these products into the hands of consumers, seams like everyone has either got a smartphone, laptop or computer Access point in Vietnam can be home, work, 3G or cybercafé or internet shops so accessibility is so easy It has come to a stage where life is faster and the gathering and spreading of information seems to be faster as well The old marketing strategy of advertising our product and waiting for the customers will not produce this effect and people especially the young are getting bored of traditional advertising and if we plan and put out our message properly the digital media advertising can reach every corner of the earth within a couple of hours if not faster Modern marketing has made it way into our lives through these products With 31 million plus internet users and with easy associability to the internet we would be very unwise to ignore new technologies media in Vietnam to attract this group of potential customers New Media Technology - Viral Marketing Viral Marketing is defined as any online media using mainly the services of word of mouth (WOM) to gain popularity and brand recognition, usually with minimum cost Viral marketing is basically, spreading the message across to people and making it grow and grow The effect starts when it interest people and then people start to talk about it and want to share it with others meaning it creates public interest and excitement and this is called ‘buzz’, the WOM (word of mouth) keeps going and going until the craze dies away For example a funny thing happened to me and I tell it to my friend, who in turn find it interesting and funny and tells the story to another friend, who later writes the story in Facebook and tells it to her ten friends Seven of her ten friends repost the story to more of their friends and the list goes on and on and the story spreads Page of 13 and spreads with other online medium The beauty of viral marketing is the story now spreads by itself, and it spreads fast and without a cost and this is how viral marketing works So the key to an effective viral marketing is sharing If at first my friend didn’t share the story, then the story ends there, like so many unsuccessful social marketing campaigns However, to share a story it must be interesting or creative or exciting enough to excite people www.eoi.es Like I said above the effect starts when it interest and excites people, remember PSY? The Korean K-pop artist who had millions upon millions of hits on Youtube with his Gangnam Style song and ‘horse dance’ few months ago It did create enough interest, publicity and ‘buzz’ and excitement that even CNN and BBC showed the Youtube clip of the dance on prime news Personally for me, the music, the song and the singer did create a ‘buzz’, the dance and especially the whole presentation was enjoyable, funny, unusual, although the content was not really useful to me, I just want to share it with others and I kept playing the clip over and over again I can safely say here that, this was a clear case of viral social media exposure, in other words new media technology did the trick If Gangnam Style was done on traditional media, the cost would definitely be more and I am very sure the impact would not be as great as this Page of 13 In an interview with Vietnam News, Taruan Dhawan, managing director of Riverorchid Notch said An idea like Gangnam Style didn't simply go viral by itself It was well engineered to go viral It had the right mix – an already popular K-Pop singer, a giant record label (Universal Music Group) behind it, and big production and media investments to promote it I myself is not too sure of if Psy (the singer) or the companies backing him realized that it was going to take the world by storm and how much impact it would have on the people, you get everyone dancing to the song, people doing exercise in the morning and evening in Hoan Kiem Lake playing that tune, very young children to really old folks dancing to the tune But viral marketing is also be inbuilt, for example Hotmail got so popular within a short period of time because that had a advertising message at the end of every email message sent out …… ‘Get your own free email at hotmail.com’ and this message in turned created newer and newer Hotmail subscribers in a very short time Viral marketing is not done by luck, like Gangnam Style as said above, it was after all a well planned idea with the right kind of mix and financial backing and because of this once it started going, it just kept on going Viral marketing does not cost much and the coverage can seen instantly by hundreds and sometimes millions with minimum effort and when the idea picks up and really start to go viral, there is not much to do, as you’ll have instant branding with minimum cost as well That is the time to enjoy the rewards, you’ll have no problem getting traffic, no problem getting new buyers and you can easily get repeat buyers, your branding will definitely increase This may sometime go on for months and very few cases maybe years Although we read about a lot of people who make lots of money by viral marketing but in real life, there are many more who have failed doing this, the reason is like any form of marketing it takes time, hard work and careful planning The products must be offered to the right customer in the right time and also in the right way, with the right medium, there is no shortcut to making it good It must be the right message at the right time, all the P’s have to be coordinated The product itself must be of good quality, to sell cheap and low quality means to never have returning customers Page of 13 again To built a reputation takes time and hard work but to lose a reputation is easy Dr Soren Kirchner in his interview with Vietnam TV, Channel FBNC said, for Vietnam to succeed we must focus on making high quality products and services, to compete, and with branding we can then cut out the middleman and sell direct To lower inflation and to keep it stable we should sell it to the Vietnamese people In his message it’s very clear that in order to succeed we have to turn this dream into a reality not by going ‘cheap’ but by proper planning, preparation and hard work With so many social networking sites like Facebook, Youtube, Pinterest, Flickr, Photobucket, blogs, Twitter and so on, the internet nowadays have become more social then before, and because people by nature are very social and they love to share about themselves or read about others these social network sites have become very popular We share thing because we want people to read or see what we thing is good or funny or interesting With this in mind, we must remember that viral marketing does not focus only on branding, the focus is mostly on the content, and the medium can by video clip of any interest be hobbies example photographs, computing or anything of interest, funny stories or jokes, forums, games or simply a text The contents must be of interest, usually entertaining, curiosity and sometime controversy creates that ‘buzz’ One way of viral marketing in Vietnam is by brand sms and this is to send messages to handphones advertising their brand, the idea is that the brand name is seen on the screen of the handphone, even though this is very common way to reach a large group of people, this method is not very popular with people who receive it and often this method creates more of a disturbance, there are many complaints about this kind of marketing This is called spamming, where you get a lot of messages on your email or handphone That is why it’s better to have your own database rather than just outsource the database and sending messages that frustrate customers Yahoo Messenger Skype, MSN, Google Talk they used to be very popular before Facebook came along and after a short of period of ban in Vietnam Now the focus is mainly on Facebook, looks Page 10 of 13 like everyone has a facebook account Besides having 31,034,900 Internet users as of June 30, 2012, 33.9% of the population penetration, (according to VNNIC website) Vietnam also has 10,669,880 Facebook subscribers as of Dec 31/12, which is 11.7% penetration (according to website internetworldstats) New Media Technology -Social Media Marketing There is very little difference between social media marketing and viral marketing, they both use the same platform to engage the customers Both media needs the ‘influencer’ to spread and share the message around Even though sometimes well planned viral marketing goes in with an ‘explosion’, and is more of a trial and error way and hoping for the best Social media is a slow starter but with long term gain if planned well Social media marketing usually interacts with the customer, they listen to the customer and more importantly get feedback from the customers in most cases companies tend to act on the feedback This brings a sense of ‘ownership’ and trust to company and product In a sense social media marketing is to keep the relationship for long term and to create loyal and returning customers Popular social media marketing sites in Vietnam include, clip.vn or Youtube for clip sharing or photo sharing sites like Flickr or Photobucket, and the many forum and review site Page 11 of 13 http/onlinemarke tingideas.info Conclusion The traditional media marketing has served us well before, but the world has grown very much more ‘smaller’ than before with the age of the internet and the new media technology is fast catching up Information is getting to the consumer much faster than before and if we delay we will certainly lose out to our competitors Customers nowadays are more curious than before, they want value for their money Instead of just reading what is given to them, the customers want to put out more question to understand the product more They want to check out the best place that they can get the product from, they want to check out if there are sales promotions, maybe a variation of the product and so on Steve Ballmer CEO of Microsoft once said, “All the media will eventually go digital It isn’t a matter of if, it’s a matter of when” Page 12 of 13 Marketing methods are at a crossroads, although the new multimedia technology is fast becoming a great advertising tool which is relatively cheap and can reach a wide segment of society faster than the old media, no marketer is going to say that new marketing technologies will definitely replace the traditional marketing technologies anytime soon, I personally think its still early days for that to happen, however to use only one type of tool would surely be very unwise, for now the best solution is to use both depending on the relevant situations Not sure if Steve Ballmer is right or wrong, it is a matter, only time can tell but one thing is certain, new media technologies put the small businessman on the same level playing field as any mega corporations in terms of advertising, so who would want to overlook an effective and relative affordable means of adverting your product References: http://ezinearticles.com/?Traditional-Marketing -Offline-Marketing-Methods-and-theAdvantages-and-Disadvantages -Part-2&id=4497295 http://vietnamconsult.de/economy http://andromida.hubpages.com/hub/marketing-medium-different-types-of-marketing-advertisingmediums http://www.internetworldstats.com/asia.htm#vn http://www.vnnic.vn Page 13 of 13 ... Bluetooth etc.) Traditional marketing methods Marketing have been around since the beginning of time, however the method of marketing have changed tremendously Traditional marketing are basically... as it’s made out to be as marketing consist of elements which must be coordinated very carefully for marketing to be successful These elements are called the P's of marketing: product, price,... product or services Therefore marketing is actually a medium to ‘connect’ customers to your product Marketing is very important to any organization and is a process where marketing research is carefully