CHAPTER I: THE MARKETING-MIX FUNDAMENTALS
1.5. Factors affecting marketing mix in the business
Every organization has its strengths and weaknesses in the areas of business.
Internal strengths and weaknesses, along with external opportunities and threats, are key points to be aware of when setting goals and strategies. Therefore, the internal environment analysis (internal environment) is extremely necessary for the Company. Analytical work will help identify the strengths and weaknesses. From there, measures are taken to reduce the disadvantages and promote the advantages to achieve the maximum advantage. This is also the basis for the Company to set
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the optimal strategy to take advantage of opportunities and deal with external threats.
The internal environment includes the human resources, finance, production, research and development, information systems, marketing ... of the company.
1.5.1.1. Human Resources
Human resources are understood to be all people involved in the production and business of the business regardless of their position or position. Man is a very important input that determines the success or failure of the business. Human resources are divided into levels: senior administrators, middle managers and staff.
In order to help businesses run their businesses effectively, senior administrators must have experienced work experience, management style, decision-making ability, ability to build e-kip management, knowledgeable about the business sector, agile in economic contracts and creative ideas.
Administrators are the head of the enterprise if they have the vision, determine the right direction for the business when the product market, select the strategy and marketing solutions appropriate to each segment of the market. Surely the business will win the opponent. In addition, the number and quality of employees also contribute to the competitiveness of enterprises.
The analysis and assessment of human resources of the business should focus on: quantity, skill level, professional skills, sense of responsibility, labor discipline, professional ethics, ... because the main weaknesses This factor will improve the quality of products, lower the price as well as create more unique advantages of the product.
1.5.1.2. Finance
Financial conditions are often considered as a method of assessing the competitive position of enterprises and are attractive conditions for investors.
To plan effective strategies, identify the strengths and weaknesses of the financial sector. Liquidity, liquidity, cash flow, profitability, capital use, cash flow, and so on have a great influence on the planning and implementation of the strategy.
Having a good financial capability will help make the strategies work.
1.5.1.3. Manufacturing
Production activities include the transformation of all inputs into outputs.
Production management processes include: process, capacity, inventory, labor force, product quality. The strengths and weaknesses of a production activity mean the organization's success or failure.
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1.5.1.4. Research and Development
To study the internal environment of a business, research and development (R
& D) activities are considered important. As the business environment is increasingly fierce competition, the continuous creation of new products and services is an essential competitive advantage and a vital element of every organization. Research and development to develop new products before competitors, improve product quality, control costs or improve production process to reduce costs. The quality of R & D efforts can help the company stay ahead or lag behind competitors.
To evaluate the strengths and weaknesses of this activity, one often relies on the cost for them. There are four commonly used methods for determining research and development costs:
Invest in as many projects as possible;
Use the percentage method of sales;
Compared to the research and development costs of competitors;
Determine how successful the new product is and then calculate back to determine the investment needs for research and development.
1.5.1.5. Information system
Information is important in every organization, it bridges the link between departments because it accesses raw data from both the external and internal environment of the organization. Helps track changes in the environment, identifies threats in the competition, and supports implementation, evaluation and strategic control. With the computerization has contributed to the information system is conveyed quickly and smoothly. Today, most of the corporations and enterprises have a specialized department responsible for managing the network system between the components.
In addition, effective information systems allow enterprises to specialize in other areas such as: low cost, service to satisfy consumers ...
1.5.2. External factors 1.5.2.1. Macro environment
Economical factors
The main economic factors are: economic growth (GDP), CPI growth, inflation, unemployment, bank interest rates, investment rates, etc. A growing economy, High GDP, higher national income, improved living standards, they want
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to consume better quality goods, better designs and designs and accept payment at higher prices and vice versa. .
Marketing executives must therefore consider the impact of all these factors when making decisions from strategy to specific marketing measures. The change of these factors affects the operation of all enterprises.
Political factors
Include the legal provisions that affect the business results of enterprises such as corporate law, policies, government economic regulatory instruments ... These factors can create opportunities or threats for businesses.
Regulatory regulations, policy guidelines of the government; administrative management system; the activities of consumer protection organizations; ... may obstruct or facilitate marketing activities or create opportunities or threats for businesses.
Social factors
The cultural environment has a great influence on the marketing activities of the enterprise, including: Social institutions, social values, lifestyle, occupation, population, religion, ethics, customs , ... The social and cultural factors dominate consumer behavior and business behavior.
Natural factors
The main issues that need to be studied are the natural environment for marketing: the tendency to protect the environment; Shortage of raw materials; An increase in energy costs; Government regulations on industrial hygiene.
Natural factors affect the input resources needed for the operation of the business. These factors are both an opportunity for enterprises to exploit and a risk that enterprises have to deal with and adapt.
Technological factors
Scientific and technological factors affect the production and business efficiency of enterprises. It is an opportunity for enterprises to apply and improve the quality of products, increase productivity and risk when the customer demand for products on strict. Enterprises need to pay attention to research investment to develop new products, apply new technologies into production. As a result, businesses have new products and new competitive price
1.5.2.2. Micro environment Competitors
Competitors are the factors that directly affect the competitiveness of enterprise products, competition in the market is indispensable objective, motivation
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to develop. In order to develop effective marketing strategies and plans, businesses must research competitors as a direct base. In order to create a good competitive strategy, businesses have to spend a lot of money on activities such as:
Environmental Analysis, Competitor Analysis, Advertising Strategy, Promotion ....
Determine what competition you must compete with? From there, accurately identify and capture the strategy, development goals, resources of direct competitors.
Potential competitors
Competitors, including potential opponents, are always looking for ways, strategies, and competing with one another to make the profit of the enemy diminished. New rivals in the industry can be a factor in reducing the profitability of an enterprise as they have the ability to put in new production capacities with the desire to win customers, gain market share quickly. Therefore, when analyzing the business environment, businesses need to pay attention to potential competitors.
Customer
The customer is the object that the business serves and is the determining factor for the success or failure of the business. Because customers create products and markets. The size of the customer will affect the supplier's supply.
Consumers are consumers: individuals and households who wish to purchase goods for consumption purposes.
Customers are wholesalers and retailers: Organizations and individuals that buy goods for resale for profit
Supplier
Suppliers are organizations and individuals who provide the necessary elements for businesses and competitors to create certain goods and services.
Any change of the supplier will also affect the business activities of the business. Suppliers can assert their authority by threatening to increase or decrease the quality of raw materials, not delivering on time to the business. Therefore, research and understanding of suppliers is a necessity in the business of any organization. An organization should work with many different suppliers, to avoid being pressured and benefiting from the supplier.
Marketing intermediary
Marketing intermediaries are independent business organizations that support businesses in the various stages of the enterprise value chain. These intermediaries are very important. Therefore, enterprises must choose suitable intermediaries and build up long-term relationships with them.
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