MINISTRY OF FINANCE ACADEMY OF FINANCE Student Nguyen Thi Khanh Ly Group CQ56/51 01 GRADUATION THESIS TOPIC THE SITUATION OF MARKETING ACTIVITIES AT BVTT CONSTRUCTION AND TRADING SERVICE JSC AND SOME[.]
Rationale of the study
In today's volatile market economy marked by intense competition, marketing is an essential tool for businesses to establish credibility and strengthen their position against rivals Effective marketing helps businesses attract customers and promote their products, serving as a crucial driver of growth Without proper marketing understanding, enterprises risk becoming disconnected from market dynamics, comparable to living organisms detached from their environment The marketing-mix—comprising product, price, distribution, and promotion—is fundamental to enhancing competitiveness and adapting to market fluctuations Strategic decisions in these areas are vital throughout the entire production and business process However, many Vietnamese businesses currently lack a deep understanding of marketing's importance, relying on outdated experience rather than strategic insight Consequently, marketing budgets are often inefficiently allocated, leading to wasteful expenditures and reduced effectiveness.
Realizing the importance of Marketing to businesses, along with the internship period at BVTT construction and trading JSC, the writer chose the topic:
“The situation of marketing activities at BVTT construction and trading service JSC and some advanced solutions to improve the performance of marketing work”.
Aims of the study
The topic focuses on researching marketing activities at the BVTT construction and trading service JSC to analyze the strengths and weaknesses of the company.
On that basis, proposing the solutions that can improve the effectiveness of marketing activities.
Scope of the study
- Time: data is collected and used from 2019 to 2021 at BVTT construction and trading service JSC.
Methodology
This study examines the marketing activities of BVTT Construction and Trading Service JSC, utilizing a systematic research approach The research details the sampling procedure and data collection methods to ensure accuracy and reliability Data analysis techniques are discussed to interpret the findings effectively, while the study also acknowledges its limitations Finally, the research offers strategic recommendations to enhance BVTT’s marketing performance and business growth.
Organization of the study
Chapter 1: Theoretical foundations of marketing activities in enterprises.
Chapter 2: The situation of marketing activities of BVTT Construction and Trading Service JSC.
Chapter 3: Some advanced solutions to improve the performance of marketing work at BVTT Construction and Trading Service JSC.
LITERATURE REVIEW
The basic concepts
The term "Marketing" first appeared in a lecture of "Product Marketing" in
The concept of marketing was first introduced by Dr W.E Krensi of Pennsylvania University in 1905 Between 1905 and 1915, marketing became an official subject in California University and other institutions across the United States, prompting many firms to incorporate marketing strategies into their business activities Over the years, the development and refinement of marketing theories have enhanced its effectiveness in driving business success In 1937, the establishment of the American Marketing Association marked a significant milestone, contributing to the advancement of both practical and theoretical aspects of marketing.
After World War II, marketing expanded globally, with many countries adopting it as part of their economic education Socialist nations like Poland, Romania, Hungary, and East Germany began teaching marketing in their colleges since the 1960s By the end of the 20th century, marketing was widely taught worldwide, reflecting its emergence as a distinct scientific discipline The development of marketing can be divided into two main stages: classic marketing theory and modern marketing theory, highlighting its progress in both theoretical and practical aspects throughout the 20th century.
Marketing, as defined by the American Marketing Association (2013), is the activity, set of institutions, and processes involved in creating, communicating, delivering, and exchanging offerings that provide value to customers, clients, partners, and society at large Renowned marketing expert Philip Kotler, S.C Johnson & Son Distinguished Professor of International Marketing at the Kellogg School, emphasizes that effective marketing strategies are essential for building strong customer relationships and driving business success.
Management at Northwestern University has played a key role in shaping marketing theories, notably popularizing the definition of the marketing mix He emphasized that “Marketing is the human activity directed at satisfying human needs and wants through an exchange process” (1980), highlighting the core focus of marketing practices.
Based on material form of exchanging process
Marketing is divided into product marketing, service marketing, and non-goods marketing.
Product marketing is a strategic approach focused on promoting goods and business production, primarily utilized by manufacturing companies It encompasses comprehensive marketing activities that showcase products' features, benefits, and value propositions This form of marketing is widely adopted across industries, emphasizing understanding consumer needs and crafting targeted messaging Key areas within product marketing include product positioning, branding, advertising, and sales strategies, all aimed at driving product demand and market growth.
Industrial marketing plays a crucial role in business production aimed at generating social material wealth It is primarily utilized by companies in the industrial, agricultural, and construction sectors that manufacture tangible products Key business processes in this marketing approach include material purchasing, production, and sales, ensuring efficient operations and market reach for industrial, agricultural, and construction product companies.
Commercial marketing involves the activities of trade organizations engaged in domestic and international commerce, focusing primarily on circulating goods and distributing products Its core functions include facilitating the sales process and promoting products to expand market reach and enhance competitiveness By emphasizing selling and promotional strategies, commercial marketing aims to ensure efficient distribution, increase market share, and strengthen the organization’s position in the marketplace.
Service marketing is essential for service trading firms that generate no material wealth but fulfill human immaterial needs It focuses on industries like insurance, banking, postal services, transportation, and tourism, tailoring marketing strategies to the unique characteristics of services The primary goal of service marketing is to ensure customer satisfaction based on service quality, thereby increasing society's demand for intangible services.
Non-goods marketing is a versatile marketing branch applied in politics, culture, and society, focusing on promoting ideas, messages, or relationships rather than physical products This sector includes diverse marketing types such as political marketing, diplomatic marketing, cultural marketing, and sports marketing, each tailored to specific non-tangible objectives These strategies are essential for influencing public perception, fostering cultural exchange, and strengthening diplomatic relations, demonstrating the wide-ranging applications of non-goods marketing in various societal domains.
Based on scope of application
Marketing for company: marketing activity of business production organizations such as companies, companies and trading firms
Marketing for industries: This marketing type implemented by macroscopic management organizations (ministries, branches, directorates)
Country marketing extends beyond individual nations, focusing on how branding and promotional strategies impact global perceptions It is primarily analyzed through the lens of business groups, transnational corporations, multinational trading firms, and import-export companies, which utilize country branding to enhance international trade and investment opportunities.
There are other ways of classification according to different research goals. However, above-mentioned marketing classifications were chosen due its closeness to business production activities of companies.
Classic marketing theory emerged in the early 20th century in the United States, primarily focusing on simple activities like goods distribution and sales It was predominantly viewed as selling products through advertising, promotion, and salesmanship, with little emphasis on understanding or researching market demand The American Marketing Association defined marketing during this period as activities related to the distribution of products from manufacturer to consumer, embodying the philosophy of "sell what the enterprise has." Customers were not the focal point of marketing efforts, which were limited to trading goods and services without extending into broader social dimensions.
Following World War II, rapid advancements in science and technology revolutionized the commodity market, leading to oversupply and saturation This heightened the importance of distribution and sales strategies for businesses facing intense market competition Governments introduced anti-monopoly laws and measures, further intensifying competitive pressures Additionally, economic crises, market shifts, and the development of socialist systems contributed to significant socioeconomic challenges, fundamentally transforming seller-buyer relationships from a "seller's market" to a "buyer's market." Traditional marketing activities became insufficient, prompting companies to rethink and adapt their strategies Consequently, marketing theory evolved into a new phase known as modern marketing theory, reflecting the need for innovative approaches in a changing marketplace.
Modern marketing represents both an inheritance and a revolutionary shift in business strategy compared to traditional marketing theories It emphasizes that marketing activities extend beyond mere market seeking and sales efforts, encompassing all stages from product conception to post-sale services Modern marketing integrates marketing into the production, distribution, and consumption processes, enabling businesses to address critical questions such as "What to produce?" and "How to effectively distribute products to end customers?" This comprehensive approach helps companies align their operations with consumer needs and market dynamics for sustained success.
Modern marketing emphasizes thorough research and prioritizes customer satisfaction as the core of all activities, embodying the principle that "customers are always right." The central focus is on understanding and addressing customer needs and wants, aiming to find innovative and effective ways to maximize their satisfaction This customer-centric approach is fundamental across all marketing domains, ensuring that businesses align their strategies with consumer preferences to achieve success.
Marketing Mix is the set of marketing tools the firm uses to pursue its Marketing objectives in the target market.
Product: includes planning and development of products and services that the company will launch into the market
Price: determine the price policy for the product
Place or Distribution: select and manage distribution channels, bring products to the end consumer effectively, in the right place at the right time.
Mixed promotion involves introducing activities, providing comprehensive product information to the market, and persuading consumers to choose a company's products and services An effective marketing mix combines these elements—product, price, place, and promotion—and adapts them dynamically to meet evolving customer needs and target market conditions By continuously adjusting these factors, companies can enhance their market reach and engagement.
Content of Marketing Mix activities in the business
Market segmentation is the process of dividing a market into distinct groups of buyers with unique needs, characteristics, or behaviors who may require different products or marketing strategies Its primary goal is to identify specific segments within your target audience, enabling you to tailor messaging and marketing efforts that resonate more effectively with each group By understanding these distinct segments, businesses can deliver more personalized and valuable communications, ultimately increasing engagement and sales Effective market segmentation enhances your ability to meet diverse customer needs and create targeted marketing campaigns that drive better results.
Demographic segmentation, often the first concept that comes to mind with market segmentation, remains a powerful method for defining customer groups It focuses on identifiable non-character traits such as age, gender, ethnicity, income, level of education, religion, and profession or role within a company By understanding these demographic factors, businesses can tailor their marketing strategies to specific customer segments, ultimately improving activity efficiency and achieving cost savings.
Psychographic segmentation focuses on understanding your customers' personalities, interests, and values, including traits such as hobbies, life goals, and lifestyles Unlike demographic segmentation, identifying these psychological factors can be more challenging, making thorough research essential When executed effectively, psychographic segmentation enables highly personalized marketing strategies that resonate deeply with consumers, fostering stronger connections and engagement.
Geographic segmentation, which focuses on the "where" of customers, is often the easiest to identify by grouping individuals based on their physical location This approach can be defined using various geographic units such as country, region, city, or postal code, enabling targeted marketing strategies.
Behavioral segmentation is arguably the most valuable strategy for e-commerce businesses, as it focuses on grouping customers based on their spending, purchasing, and browsing habits, as well as their interactions and loyalty to the brand Similar to psychographic segmentation, it requires only minimal data, much of which can be collected directly from your website Understanding these behavioral patterns enables targeted marketing efforts, improved customer engagement, and increased sales.
From the market: a homogeneous product cannot satisfy all customers in the market.
From the company: company’s resources are limited, cannot efficiently exploit the entire market.
From Marketing activities’ performance: for better marketing activities orientation, developing policies that best suits target customers, reduce
Understanding how consumers perceive your product’s key attributes and its position relative to competitors is essential for effective positioning When developing your targeting and positioning strategy, assess the potential and commercial appeal of each market segment Then, craft detailed product positioning strategies for each selected segment, incorporating a tailored marketing mix that aligns with their specific needs and preferences.
To search for a new unoccupied position that is valued by enough consumers and grab it.
To deposition or reposition the competition.
To strengthen a brand's current position in the mind of onsumers.
Identifying a set of differentiating competitive advantages on which to build a position
Choosing the right competitive advantages
Selecting an overall positioning strategy
Communicating and delivering the chosen position to the market.
A marketing strategy is a comprehensive plan that guides a business in reaching and converting prospective consumers into loyal customers by clearly defining its value proposition and key brand messaging It encompasses essential elements such as target customer demographics and the four Ps of marketing—product, price, place, and promotion—which are crucial for developing effective marketing tactics The marketing mix serves as a vital tool to create and implement a successful strategy, ensuring that each component aligns with the overall business goals The primary objective of a marketing strategy is to establish and communicate a sustainable competitive advantage by understanding and meeting consumer needs and wants Whether through print advertising, social media campaigns, or mass customization, marketing assets should effectively convey the company's core value proposition to resonate with the target audience and differentiate from competitors.
An effective marketing strategy is built around the 4 Ps of the marketing mix—Product, Price, Place, and Promotion—which work together to position a product within its target market The marketing mix comprises controllable tactical tools that influence demand, enabling companies to meet their marketing objectives by delivering value to customers It serves as a vital framework for marketing planning and execution, helping businesses leverage their strengths, reduce unnecessary costs, and proactively address risks By utilizing the 4 Ps effectively, companies can develop and implement strategies that ensure their products or services resonate with target audiences and achieve desired market responses.
Source: The 4Ps of marketing mix (Kotler & Amstrong, 2011)
List prices Discounts Allowances Payment period Credit terms
Advertising Personal selling Sales promotion Public relations
The marketing mix- or the four Ps consists of tactical marketing tools blended into an integrated marketing program that actually delivers the intended value to target customers.
The marketing mix consists of four key factors—product, price, place, and promotion—that are adjusted according to evolving customer needs and target markets From the buyer's perspective, each marketing tool serves a specific purpose, offering distinct benefits to enhance the overall customer experience Effective management of these elements ensures businesses can meet customer expectations and achieve competitive advantage.
According to Robert Lauterborn (1990), 4P marketing is for 4Cs
PI (product) - CI: customer needs and expectations
P2 (price) - C2: reasonable cost for customers
P4 (mixed promotion) suitable) - C4: information for customers
Source: Model 4C of Robert Lauterborn (1990)
Factors Influencing Business Marketing
External factors influencing marketing include political and regulatory, economic, competitive, technological, social, and cultural forces, while internal factors comprise a company's strengths, weaknesses, and competencies Marketers aim to predict future changes by continuously monitoring the marketing environment, recognizing that external forces are largely beyond their control Although managers can control the four Ps of marketing—product, price, place, and promotion—they must also adapt to external factors that present both threats and opportunities, necessitating regular updates to marketing strategies Staying alert to trends and signals indicating environmental shifts is essential for effective marketing planning Understanding each external factor's impact helps firms respond proactively and capitalize on emerging opportunities while mitigating potential risks.
Regulations established by federal, state, and local authorities aim to protect both consumers and businesses While some industries, like patent laws, appreciate certain regulations, others, such as the tobacco industry, adapt to restrictions like bans on TV and radio advertising Recent regulations requiring trans-fat labeling have caused dissatisfaction among food companies, and the broadcasting sector is concerned about FCC fines related to decency standards Telemarketers have notably responded to the creation of “do-not-call” lists by altering their marketing strategies For example, tobacco firms shifted advertising budgets from television to print media to comply with advertising restrictions.
Marketing managers face daily challenges interpreting economic news that impacts their strategies Positive economic indicators like declining unemployment and rising consumer confidence boost consumer spending and ease marketing efforts Conversely, recent economic downturn signals such as declining industrial production, rising jobless claims, and reduced consumer confidence create a cautious environment, making marketing efforts more difficult as consumers have less disposable income When the economy is strong, business thrives, and product promotion is easier; however, economic slowdown or stagnation increases market challenges due to decreased consumer spending power.
Inflation drives up interest rates, making consumers hesitant to take out car loans, which can lead to declining vehicle sales To mitigate the impact of this slowdown, automakers often offer generous rebates and targeted promotions Additionally, for international car sales, it’s essential to monitor economic conditions across all regions where your business operates, as global markets influence consumer demand beyond domestic trends.
A competitive environment is a system where businesses utilize various marketing channels, promotional strategies, and pricing methods to compete within established regulations Understanding the various types of competitive environments is crucial for assessing the economic landscape, analyzing industry trends, and responding to policy changes Effective market analysis requires knowledge of how companies and markets operate, including tracking competitors producing similar or substitute products Market-savvy companies that neglect competitor activities risk falling behind, emphasizing the importance for marketers to continuously monitor both direct competitors and substitute product makers to stay competitive.
New technologies are revolutionizing the marketing mix by transforming how companies promote and sell their products The Internet has introduced a powerful new medium, enabling marketers to reach a vast audience and expand their offering of goods and services To stay competitive, marketers must continuously adapt their strategies to leverage technological advances and address emerging threats Technology can be classified into various types, with highly advanced, capital-intensive technologies playing a significant role in modern marketing efforts.
1.3.1.5 The Social and Cultural Environment
Marketers must stay attuned to evolving social and cultural factors that influence consumer preferences and sales American consumers’ values and attitudes change rapidly, making it essential to update product offerings frequently For example, clothing styles popular five years ago are often considered outdated today, highlighting the importance of adapting to current trends Successfully marketing to teenagers and young adults requires understanding their current desires and preferences, rather than relying on past trends Ultimately, the key to effective marketing is meeting customers’ current needs and ensuring product relevance in a constantly shifting market landscape.
Understanding the internal environment in marketing is essential, as it comprises unique internal components that shape the firm's strategy Conducting an internal environment analysis enables businesses to develop tailored marketing strategies aligned with their specific resources, strengths, and goals Ignoring internal factors can lead to generic strategies that lack differentiation, causing the firm to blend in with competitors rather than leveraging its unique competitive advantages for sustained success.
Resources encompass all organizational assets, including product range, brand equity, financial position, customer loyalty, and customer base size Key internal factors also include retailer relationships, access to technology, manufacturing skills, and innovation Assessing these resources provides a comprehensive understanding of what the firm has at its disposal to support its strategic initiatives.
Financial resources like funding, investment opportunities and sources of income
Physical resources like company’s location, equipment, and facilities
Human resources like employees, target audiences, and volunteers
Access to natural resources, patents, copyrights, and trademarks
Current processes like employee programs, software systems, and department hierarchies.
Building on core skill sets and capabilities such as innovation, speed to market, brand building, data and marketing insights, cost efficiencies, customer relationships, and technological adoption is essential for developing a strong marketing strategy These capabilities serve as fundamental building blocks that create sustainable competitive advantages in the marketplace, enabling the firm to differentiate itself and seize opportunities for long-term success.
1.3.2.3 Management values and corporate culture
Management values refer to the beliefs and priorities of an organization’s top executives, shaping its strategic direction For instance, some leaders emphasize innovation and change as key drivers of success, while others may adopt a conservative, risk-averse approach Understanding management’s values is essential, as they serve as the final decision-makers for competitive marketing strategies These values are reflected in the company’s corporate culture, which is influenced and shaped by the management’s perspectives and priorities.
Understanding stakeholder goals is essential, particularly the objectives of owners and shareholders who often prioritize profit and business growth While some organizations focus primarily on financial success, others also pursue social goals alongside profitability Ultimately, shareholders and owners aim to ensure the business's success and are highly interested in assessing its potential for generating returns.
Criteria for Evaluating Your Marketing Activity
Monitoring competitors’ actions is a key indicator of your marketing plan’s success, as their imitation signals that your strategies are impactful If your campaigns are widely ignored, it suggests a need for reevaluation and adjustment Additionally, feedback from marketing partners and vendors provides valuable insights into the effectiveness of your campaigns, as they often experience customer reactions firsthand and can identify success signals earlier than your internal team.
Consumer response encompasses both positive and negative feedback regarding a company's products, services, or business ethics, providing valuable insights into customer perceptions Customer feedback can be solicited directly by the company or initiated by consumers through various channels, such as letters or responses to inquiries, helping businesses gauge the effectiveness of their marketing efforts Analyzing customer service feedback, online engagement, and click-through rates reveals how customers perceive campaigns and identifies which strategies have the greatest impact Utilizing complementary metrics further measures the success of marketing tactics based on the chosen channels To maximize results, companies should select the most appropriate media for their target audience, focusing on online platforms that offer ongoing opportunities for data collection and optimization to enhance customer response.
Expanding market reach is often a sign of effective marketing strategies that resonate with new customer segments Successful growth through customer recommendations or organic expansion reflects a compelling marketing message and a validated value proposition Ensuring that your product or service consistently delivers on its promises is crucial to maintain trust and sustain this growth A strong alignment between your marketing campaign and your actual value offering is essential for long-term success and continued market expansion.
Sales performance measures the effectiveness of your sales team within a specific period, with sales performance management being a key method to track and optimize efforts from the start Common metrics such as sales revenue, customer acquisition, and retention rate help evaluate progress, and an increase in these indicators signifies positive results Analyzing these figures quickly reveals whether your sales strategies are effective, especially when considering external factors like price changes or marketing efforts Ultimately, a rise in sales numbers indicates that your overall plan is successfully driving business growth.
Monitor your sales conversion rate by analyzing historical data to see if your lead-to-customer conversion has improved over time Recognize that different marketing strategies have varying sales cycles; brand-building initiatives often need long-term investment to generate noticeable profits, whereas sales promotions can deliver quicker, short-term results Focusing on effective sales conversion is crucial for business growth—prioritize assessing your success in closing deals rather than just generating leads for a comprehensive growth strategy.
Cost per acquisition (CPA) is a key marketing metric that calculates the total cost required to acquire a customer who completes a specific action It measures how much it costs to convert a lead, click, or purchase from the initial touchpoint through to final conversion, aligning with your marketing goals CPA provides valuable insights into the efficiency and cost-effectiveness of your marketing campaigns by tracking the expenses associated with acquiring each new customer.
To succeed as a top-tier marketer, tracking the most crucial metric—Marketing Cost-Per-Acquisition (CPA)—is essential While all effectiveness metrics are valuable, CPA is the definitive indicator of actual return on investment, revealing whether your marketing efforts are generating revenue Ultimately, regardless of the market or customer response, if your marketing campaign isn't contributing to revenue, it cannot be considered successful.
Marketing CPA is crucial for investors, as it helps assess business profitability by analyzing the difference between customer revenue and acquisition costs Investors focus on the current cost-per-acquisition, not future promises, to optimize their return on investment Improving Marketing CPA reduces overall costs, enhances profit margins, and leads to greater profitability for the company Ultimately, investors aim to allocate resources efficiently, while companies strive to continuously improve their profit margins for sustained growth.
THE STUDY
Overview of BVTT at BVTT Construction and Trading JSC
2.1.1 Process of formation and development of the company
BVTT Construction and Trading Service Joint Stock Company was established on August 5th, 2019, with the goal of becoming a reputable leader in housing construction and design consulting As a joint stock company, it initially capitalized with VND 9.9 billion to support its growth and service excellence in the industry.
Business name: BVTT CONSTRUCTION AND TRADING SERVICES JOINT STOCK COMPANY
Head office address: No 20, 32/6, group 8, Duc Thang ward, Bac Tu Liem district, Hanoi city, Vietnam.
Legal representative: Mr Tran Huu Tung
2.1.2 Functions of tasks and business sectors
A developed country is characterized by meeting essential infrastructure requirements, with the construction industry playing a crucial role in this process Construction is fundamental for establishing the necessary infrastructure for individuals, organizations, and society as a whole, enabling technical development across sectors The growth of the construction industry creates favorable conditions for the development of other sectors in the emerging economy It has always played a vital role in shaping the economy's size and technical level and serves as the most effective tool for economic regulation.
In Vietnam, the construction industry is also the largest material manufacturing industry And up to now, the construction industry is still clearly showing its important role because:
– The construction industry helps to ensure and help improve production capacity and service capacity for all sectors of the economy.
– The construction industry helps to ensure a proportional, balanced and reasonable relationship of production capacity for economic development in industries, regions and economic regions.
– The construction industry helps create conditions to improve the quality and efficiency of social activities, people's lives, and national defense.
BVTT Construction and Trading Service Joint Stock Company aims to deliver competitive products and services that satisfy customers, while building a team of qualified professionals dedicated to working with professionalism and cultural integrity The company is committed to continuously enhancing the material and spiritual well-being of its employees, maximizing benefits for both the organization and its shareholders, and establishing a reputable presence in the industry.
No Industry name Industry code
4 Construction of water supply and drainage works 4222
5 Construction of telecommunications and communication works 4223
6 Construction of other public works 4229
10 Installation of water supply, drainage, heating and air conditioning systems 4322
13 Wholesale of materials and other installation equipment in construction 4663
14 Retail sale of electrical household appliances, beds, wardrobes, tables, chairs and similar furniture, lamps and luminaires, and other
4759 household appliances in specialized stores
Architectural activities and related technical consulting Detail
- Construction investment project management consulting;
- Design and construction of works;
- Design of water supply - drainage;
- Ventilation design - heat supply and drainage;
- Design information network - communication in construction works;
- Design of fire prevention and fighting;
- Design of master plan, urban area and industrial zone planning design;
- Design of road bridge construction works, road traffic design, ground leveling design, urban water supply and drainage.
- Supervising the construction of works, the field of construction - finishing;
- Consulting, making bidding documents and analyzing and evaluating bids for construction works;
- Design consultancy for civil and industrial construction works;
(Decree59/2015/ND-CP andDecree100/2018/ND-CP amending and supplement ing a number of articles ofDecree59/2015/ND-CP)
ADMINISTRATIVE COUNCIL 2.1.3 Organizational structure of the company apparatus
Diagram 2.1: Organizational structure of the company apparatus
Effective management entails key functions such as planning, organizing, leading, and controlling This article emphasizes the organizing function, which involves coordinating and allocating a company’s resources to successfully implement plans and achieve strategic goals The organizing process, also known as structuring, ensures that resources are efficiently arranged to promote operational effectiveness and organizational success.
Determining work activities and dividing up tasks (division of labor)
Grouping jobs and employees (departmentalization)
Assigning authority and responsibilities (delegation)
An organization is the structured arrangement of relationships and roles within a company or firm, resulting from a formal organizing process It involves two or more people working collaboratively to achieve common goals, emphasizing the importance of clear design and order Effective organization creates a cohesive framework that enhances efficiency and coordination within the business.
Technica Department emphasizes the importance of a common objective and clarity of purpose within formal organizations Well-defined lines of authority, clear channels for information flow, and effective means of control are essential for organizational efficiency Business organizations deliberately connect human, material, financial, and information resources to ensure coordinated operations Some connections, such as those among finance and marketing departments, are long-lasting, supporting sustained collaboration and organizational success.
The company is governed by a board of directors, led by General Director Mr Tran Huu Tung It is structured into independent departments, each responsible for specific areas, with highly experienced managers holding university degrees Employees are assigned to departments based on their expertise, roles, or shared responsibilities for products, clients, or markets Departmentalization influences management decisions related to authority distribution, resource allocation, performance rewards, and communication channels.
The administrative council serves as the company's management body, possessing full authority to make decisions and exercise rights and obligations that are not under the jurisdiction of the General Meeting of Shareholders.
The board of directors plays a crucial role in setting company policies and overseeing management to ensure effective corporate governance Their primary responsibility is to establish policies that guide the company's strategic direction and make key decisions on major corporate issues By providing oversight and strategic guidance, the board helps ensure the company's long-term success and compliance with regulations.
- HR Department is responsible for formulating human resource development strategy, organization of staff; archived documents; legislation
- Accounting Department is responsible for business financial strategy planning, financial work, accounting work, inspection, monitoring and evaluation of business performance.
The technical department is composed of skilled staff with specialized knowledge in the construction industry, responsible for overseeing engineering activities and ensuring project quality They play a crucial role in advising the board of directors on technical aspects of construction projects Their expertise ensures that construction techniques are properly implemented, aligning with industry standards and project requirements The department's guidance helps optimize technical efficiency and supports successful project outcomes.
- Business Department is responsible for managing sales distribution channels, suppliers as well as sales-related activities and product quality management.
2.1.4 Report on results of production and business activities
4.Cost of goods sold 789,657,154 2,168,802,365 1,988,743,122 5.Gross Profits 1,819,189,385 5,362,810,570 3,658,273,311
Analyzing the Income Statement of BVTT Construction and Trading Service Joint Stock Company over the years 2019-2021 reveals that profit before taxes surged in 2020 compared to 2019, but declined by more than half in 2021 In its first year, the company lacked a proper cost adjustment policy, resulting in low profits substantially below revenue By 2020, BVTT implemented cost stabilization strategies, leading to a significant increase in profit before tax However, in 2021, the company's revenue sharply decreased by 25.1% due to the Covid-19 pandemic, which also caused a rise in selling and administrative expenses, severely impacting the company's operations.
Diagram 2.2: The company's revenue chart from 2019-2021
In the initial stages of a new business, generating revenue is more critical than immediate profits In 2021, the company's revenue was significantly impacted by the pandemic, leading to decreased profitability The highest revenue was recorded in 2020, amounting to approximately 7.59 billion VND Additionally, in 2019, after just five months of operation from August 5 to December, the company began establishing its market presence and revenue streams.
31), the company's revenue reached VND 2.63 billion To 2021, this is the year that clearly sees a decline in the company's revenue and profit The company's revenue in 2021 is only 74.8% compared to 2020
Table 2.3: Analysis of total profit structure of the last 2 years (2020-2021)
Profit from finan cial activi ties
Between 2020 and 2021, the company's total profit in 2021 was approximately 3.6 billion VND, representing a significant decline of 142.9% compared to 2020's profit of 5.3 billion VND The sharp decrease in revenue from sales during 2021 was primarily due to the adverse effects of the Covid-19 pandemic Data indicates that the company's income mainly derives from sales activities, while profits from financial and other business activities remain minimal, accounting for only about 3.5-3.6% This profit structure is inefficient, highlighting the need for the company to diversify and optimize its business segments to enhance profitability and overall business efficiency.
Technical and economic effects affecting marketing activities at the company.30
Charter capital of the company: 9,900,000,000 VND (Nine billion nine hundred million VND).
- Capital in cash: 9,900,000,000 VND (Nine billion nine hundred million VND).
- Capital in assets is: None
Par value of shares: 10,000 VND (Ten thousand VND), total charter capital corresponding to 990,000 shares (Nine hundred and ninety thousand ordinary shares).
Total number of ordinary shares registered to buy: 990,000 shares (Nine hundred and ninety thousand ordinary shares).
All shares of the company are ordinary shares Within three years of receiving the Certificate of Business Registration, the company may issue preferred shares to shareholders and strategic partners, subject to approval by the General Meeting of Shareholders and in accordance with the Enterprise Law.
Table 2.4: CAPITAL - STRUCTURE AND CAPITAL CONTRIBUTION
CONTRIBUTION RATE Total value of contributed capital (VND)
With a charter capital of 9.9 billion VND, the company faces challenges in allocating resources for marketing initiatives In the current market climate, especially after nearly three years of pandemic-related disruptions, investing in effective marketing is essential for businesses to remain competitive and stable Success across industries requires not only industry expertise but also vital social skills such as professionalism, honesty, integrity, good manners, and a positive attitude For Human Resources professionals, mastering these general skills is crucial, alongside industry-specific competencies, to excel in their roles and support the company’s growth.
502 Bad GatewayUnable to reach the origin service The service may be down or it may not be responding to traffic from cloudflared
502 Bad GatewayUnable to reach the origin service The service may be down or it may not be responding to traffic from cloudflared
2.2.3 Characteristics of customers and competitors
502 Bad GatewayUnable to reach the origin service The service may be down or it may not be responding to traffic from cloudflared
Customer-centric strategies can target individuals, households, organizations, or entire communities, emphasizing that defining "customer" is often flexible in management theory Typically, customers are those who purchase products or services and generate revenue, including consumers, wholesalers, retailers, and purchasing departments across a company's value chain A successful business model encourages innovative researchers to operate like university scientists—conducting basic research, publishing findings, and presenting at conferences—aiming to discover groundbreaking compounds for commercialization.
Since its inception, the company has secured numerous housing construction contracts and expanded its service distribution channels across many districts in Hanoi However, the majority of its clients still come from brokers linked to familiar customers, with most new acquisitions over the past three years resulting from existing relationships The company faces challenges in attracting new clients, as contract signings from new customers remain minimal, primarily serving surrounding households and retail clients Despite three years of operation, the company has made little progress in reaching out to new markets or actively promoting its products and services, highlighting the critical need for effective marketing strategies to drive growth.
In 2021, the company aimed to expand its market by offering products and services to neighboring provinces such as Thai Binh, Hai Phong, and Nam Dinh; however, the Covid-19 pandemic hindered the success of this expansion These provinces represent a promising market where infrastructure construction services are primarily provided by spontaneous groups of workers, indicating a high potential for growth through an improved supply chain To effectively attract customers in this open and still-developing market, the company needs a strong strategy and a detailed plan for building and strengthening customer relationships Despite several competitors already operating in these areas, the market remains untapped and valuable, offering significant opportunities for growth.
The construction industry is highly fragmented and increasingly crowded, resulting in fierce competition and significant price pressures from project investors Strict regulatory environments and rising raw material costs create substantial barriers for industry players, while a growing workforce combined with slower industry growth hampers productivity Revenue fluctuations are relatively minor, but profit margins are shrinking due to intensified competition, a slowdown in the real estate market, and poor cost control Overall, construction companies face numerous challenges, including declining gross profit margins and the need to navigate complex regulatory and market dynamics.
The retail industry is experiencing promising growth as social distancing measures ease, but new challenges are emerging Competition among retailers is intensifying as businesses strive to attract customers and capitalize on the recent surge in retail sales To stand out, brands must offer compelling value propositions, convincing consumers to choose their business over competitors Since the onset of lockdown measures, consumers have become more willing to experiment with new brands, creating opportunities for retail growth and innovation.
Established in an industry where competitors have already built strong brand recognition and possess limited charter capital, small companies face significant challenges in competing effectively The Hanoi market is highly segmented, with numerous firms vying for consumer attention, but successful companies are those with strong financial resources, strategic marketing, and effective promotional activities that enhance brand reputation and create a lasting impression on customers Larger companies actively leverage diverse marketing channels such as social media, websites, and economic publications to boost their visibility Investing in professional websites with comprehensive company introductions and product details helps build credibility and trust within the community — an area where BVTT has yet to develop its online presence.
Understanding and analyzing competitors is crucial for business success, especially in challenging economic conditions Failing to identify key competitors can significantly undermine your long-term strategic plans, putting your business at risk Staying informed about competitor activities enables companies to adapt and stay ahead in a competitive market, ensuring sustained growth and resilience.
Organizational culture, the unique personality of a company, is a complex and vital aspect that shapes its identity It is the holistic integration of values, vision, and mission that defines how employees communicate, collaborate, and achieve operational goals Corporate culture influences the organizational atmosphere and directly impacts your employer brand, making it essential for attracting and retaining talent.
A company founded on the mutual capital contributions of friends with shared expertise fosters a strong, cohesive corporate culture and seamless interdepartmental relationships This collaborative foundation ensures alignment in goals and values, creating a positive work environment Such a startup benefits from trust and understanding among team members, driving innovative growth within their local community The strong interpersonal connections among founders and employees contribute to a unified organizational identity, promoting long-term success and stability.
Effective communication is essential for fostering an open and transparent company culture, regardless of whether messages originate from the CEO or the mailroom manager Clear, concise, and courteous communication helps prevent a culture of fear and backbiting, encouraging employees to speak up and share their concerns Strong internal communication channels make employees feel heard and valued, reducing feelings of isolation and hesitation to provide feedback Utilizing business communication tools allows management to engage with employees easily and provides a platform for feedback Additionally, social networking groups and annual team-building trips help facilitate employee-manager interactions and strengthen workplace relationships To create a comfortable yet professional environment, the company offers various gestures of appreciation, such as gifts on birthdays and special occasions like International Women's Day, promoting employee satisfaction and camaraderie.
Marketing status at the company
Market research involves collecting valuable insights about customers, competitors, market trends, and industry dynamics to inform strategic decisions It includes primary methods, such as surveys, interviews, and focus groups, which provide tailored data directly from sources, often enhanced by online survey tools for greater convenience Secondary research, the most common approach, utilizes publicly available data from websites, magazines, trade associations, government reports, census data, and search engines In the construction industry, market research is crucial due to its influence on economic outlooks and the high cost of poor decision-making Understanding whether to leverage primary or secondary research, along with quantitative or qualitative methods, enables businesses to accurately assess market conditions and customer preferences.
Construction market research provides valuable insights into consumer and business behaviors, emerging materials, competitive landscapes, and evolving regulations Effective planning and strategies based on comprehensive research are essential for managing large construction projects, minimizing costs, and maximizing returns Due to the industry’s complex decision-making processes, developing successful strategies in construction markets can be challenging Additionally, strategy research evaluates a company's competitive position relative to industry players, supply chains, and distribution channels, ensuring informed decision-making.
Established in the second half of 2019, BVTT entered a competitive market where existing companies had already built strong customer bases and gained significant recognition Recognizing the importance of market research, BVTT conducted thorough customer surveys and targeted market analysis to better understand its audience This strategic approach allowed the company to narrow its focus, efficiently allocate resources, and set clear short-term goals alongside long-term strategic planning for sustainable growth.
In over two years of operation, the company faced a significant challenge due to the Covid-19 pandemic, which caused a complete halt in economic activities and construction projects during government quarantines As a result, the company experienced a decline in new contracts and customer demand, leading to revenue deficits The company's main market is in Hanoi, focusing on housing construction, consulting on construction works, and selling materials, but it faces intense competition from established industry giants with extensive networks, reputation, and capital These major competitors dominate the market share, making it difficult for the company to expand To overcome these challenges, the company recognizes the need to develop a tailored marketing strategy to improve its position and sustainability.
The company's market research efforts have been unfocused due to the absence of a dedicated marketing department, relying heavily on the sales team with limited expertise in marketing strategies This lack of specialized knowledge and experience among staff has resulted in ineffective market research over the past two years Consequently, poor market insights have hindered promotional activities and complicated market expansion efforts.
Construction activities are distinct from other industrial projects due to their unique features, including involvement of multiple stakeholders and agencies The industry faces inherent complications such as reliance on contractors and seasonal labor forces, creating complex linkages with various other sectors Additionally, productivity and safety hazards are particularly prevalent and pose significant challenges within the construction industry.
Identifying and understanding your target customers is a crucial component of an effective marketing plan, as it directly impacts your company's revenue and profitability All marketing strategies should be driven by the core characteristics of your target audience to ensure that your products and services align with their needs and preferences To be effective, your target customers must meet two essential conditions: they should represent your ideal market segment and have the purchasing power to buy your offerings Crafting products and services tailored to these specific customer groups maximizes engagement and drives business success.
Customers must have a need for the product or service that the business is producing or providing.
The customer's economic condition can afford the products and services of the enterprise.
Identifying the right target customers offers numerous benefits, including reducing marketing costs and achieving sales targets as planned Well-executed marketing content, sales strategies, and incentive policies effectively influence customer purchasing decisions This precision allows for quicker implementation of marketing plans, ensuring profits meet or exceed expectations Additionally, it minimizes the need for extensive personnel deployment, enabling businesses to increase profits and attract more customers to their brand.
The company's primary target audience is divided into two key groups: agents specializing in selling construction materials and individuals or businesses seeking housing construction or related services This strategic focus allows the company to effectively serve both distribution partners and end-users in the construction industry By catering to these two customer segments, the company aims to strengthen its market presence and drive growth in the construction sector.
Core customers: customers who have needs for construction works
Secondary customers: agents selling building materials.
The company focuses on identifying its target customer group to strategically develop a network of service providers and tailor its products accordingly To effectively reach and engage customers, it has launched numerous promotional campaigns targeting building material dealer stores, encouraging bulk purchasing to attract more clients and foster customer loyalty These initiatives aim to enhance brand recognition and provide a competitive edge in the market.
This key customer group is the least loyal, frequently driven by discounts, which challenges long-term retention To retain these customers, the company offers special preferential policies, such as increased discounts through agents, to meet market demand Since this group also contributes significantly to the company's revenue, maintaining their loyalty is essential for sustained business success.
Understanding customer wishes and providing high-quality service are central to the company’s mission Despite regularly conducting surveys and gathering customer feedback to improve service quality, these evaluations have often lacked impact due to their subjective nature The company is now focused on developing a strategic approach to customer segmentation and product positioning to achieve more effective and constructive improvements.
2.3.4 Market segment and target market
Understanding customer psychology and behavior is essential for deploying successful marketing campaigns and increasing sales Identifying and targeting specific market segments allows businesses to accurately understand their customers’ needs and preferences This strategic focus enables businesses to develop tailored marketing and sales strategies that effectively meet customer demands, ultimately boosting conversion rates and profitability.
Market segmentation is a crucial component of a successful marketing strategy, enabling companies to identify their target market effectively By dividing the market into well-defined segments based on common characteristics, businesses can tailor their products, services, and messaging to meet the diverse needs of different customer groups This approach is essential because it is not feasible to serve all customers with a single offering or uniform communication, as preferences, interests, and objectives vary widely Ultimately, market segmentation allows companies to adopt targeted strategies that cater to specific customer traits, enhancing overall marketing effectiveness.
There are primarily four ways in which the market may be segmented These are:
Demographic segmentation is a straightforward and widely used approach that categorizes consumers based on age, race, gender, nationality, religion, income, occupation, social class, and family status, enabling quick analysis of customer data Retailers particularly benefit from using income and family structure to target specific groups likely interested in their products or services In just two years, the company has incorporated demographic insights into its marketing campaigns to deliver personalized messages, make customers feel the product is tailored for them, and address their specific needs However, due to a small customer base and limited research in this area, the company has yet to see substantial results from demographic marketing strategies.
Assessing the successes, limitations of existence and causes
2.4.1 The success achieved in the company's marketing activities
Our highly qualified and skilled staff ensure exceptional quality in every project, reflecting our commitment to excellence We prioritize thorough market research to understand our customers' needs and monitor competitors’ activities, enabling us to develop strategic policies that create a competitive advantage Recognizing our limited capital as a challenge, we actively seek to attract more investors to strengthen our financial resources and support sustainable growth.
The company actively seeks new suppliers to diversify its product offerings, enhancing its market reach It implements various promotional strategies to effectively introduce products to customers, boosting brand awareness These efforts aim to accelerate sales growth and increase overall company revenue.
The company continuously expands its product distribution network by employing strategies such as offering discounts, running promotions, and deploying sales staff to engage with consulting agents These efforts aim to attract new customers and increase market share.
2.4.2 Causes and limitations exist in the company's marketing activities
Over the past two years, the company's product distribution network has been a key focus for the board, but it remains primarily reliant on dealers The current pricing policy is limited, lacking specific provisions for large orders, which discourages customers from purchasing in bulk Additionally, with limited capital, customers are required to pay within 7-14 days of receiving goods, creating hesitation for large-volume orders The absence of dedicated storage facilities hampers inventory management and affects the company's ability to handle urgent orders efficiently Furthermore, delays in receiving goods from suppliers extend delivery times to customers compared to competitors, weakening the company's market position and reducing order volume.
The company has overlooked the importance of ongoing promotion and communication with customers, focusing only on collecting feedback during the order process Post-purchase customer care is neglected, with no dedicated staff to advise or survey customers afterward This lack of continuous engagement prevents the company from understanding customer needs, identifying problems, and addressing concerns effectively Consequently, the company struggles to enhance service quality and build stronger customer relationships.
The role of marketing often lacks clarity and consistency, leading to ineffective campaign strategies Many marketing efforts set numerous goals but focus on only a few, resulting in an imbalance that diminishes the overall success of marketing initiatives This fragmented approach hampers the effectiveness of marketing campaigns, reducing their impact on company growth Optimizing marketing strategies by aligning goals and maintaining focus can significantly enhance campaign outcomes and overall business performance.
The company underinvests in marketing efforts, particularly in professional PR and branding, despite allocating substantial budgets for mass advertising Insufficient market research and a lack of strategic planning in areas such as pricing and positioning have negatively impacted the effectiveness of their marketing initiatives This inadequate investment and poorly executed strategies have hindered the company's ability to build a strong, recognizable brand and reach target audiences effectively.
Due to the limited financial situation, the implementation of the company's marketing strategy has not been clearly defined, and the budget allocation for marketing is not reasonable
Our company's flexible pricing policy aims to accommodate both agents and customers Agents often face challenges due to limited capital, making it difficult to import large quantities of goods since they cannot sell immediately and must sell gradually Additionally, customers tend to hesitate when purchasing from less well-known companies in the industry, which can impact sales.
The current lack of dedicated sales and customer service personnel before and after product purchase hampers effective engagement with potential customers This staffing gap makes it challenging to fully exploit local market opportunities and build lasting customer relationships Ensuring dedicated teams for sales and post-purchase support is essential for expanding reach and driving business growth.