Tiếng anh perfecting marketing mix activities at tan hung trading co ltd

PHAM NGUYEN HOANG BUSINESS MANAGEMENT 2015 2018 NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM BACHELOR THESIS Major Topic Perfecting Marketing Mix activities at Tan Hung Trading Co , Ltd[.]

NATIONAL ECONOMICS UNIVERSITY

EXCELLENT EDUCATIONAL PROGRAM

BACHELOR THESIS Major

HANOI, 2018

NATIONAL ECONOMICS UNIVERSITY

EXCELLENT EDUCATIONAL PROGRAM

HANOI, 2018

First of all, I want to thank Ma Bui Cam Van – my supervisor, for helping

me a lot to complete my thesis, there were times I couldn’t match her deadline orideas but she still encouraged me to finish the job Secondly, I want to thank mr VuDuy Ngoc, the director of Tan Hung, who also supervised my internship,enthusiastically gave me all the helpful numbers and information needed to help mecomplete the report as well as helped and directed me during the internship at thecompany Finally, I want say thanks to Ms Nguyen Thi Hong Dao – my mother,she has been with me throughout the process of completing the report, has takencare of my health and has pointed out the slightest mistake I did not notice

In the process of completing the report, despite the help of everyone, myreport is still unavoidable due to time constraints and my personal level, I expect thejudges to ignore the errors are not worth it

I sincerely thank everyone

STATUTORY DECLARATION

I herewith formally declare that I myself have written the submitted BarchelorThesis independently I did not use any outside support except for the quotedliterature and other sources mentioned at the end of this paper

I clearly marked and separately listed all the literature and all other sourceswhich I employed producing this academic work, either literally or in content

Hanoi, / / 2018

Signature

TABLE OF CONTENT

ACKNOWLEDGEMENTS

STATUTORY DECLARATION

TABLE OF CONTENT

LIST OF FIGURES

INTRODUCTION 1

CHAPTER I: THE MARKETING-MIX FUNDAMENTALS 3

1.1 Marketing concept 3

1.2 Marketing Mix concept 3

1.3 The role of marketing-mix in the business 4

1.4 Components of Marketing-mix 6

1.4.1 Price 6

1.4.2 Product 11

1.4.3 Place 16

1.4.4 Promotion 20

1.5 Factors affecting marketing mix in the business 23

1.5.1 Internal factors 23

1.5.2 External factors 25

CHAPTER II: SITUATION OF MARKETING-MIX ACTIVITIES AT TAN HUNG CO., LTD 28

2.1 Company overview 28

2.1.1 History and background information of the company 28

2.1.2 Function and Mission 29

2.1.3 The results of the company 29

2.2 The marketing mix of Tan Hung Trading Co., Ltd 33

2.2.1 Marketing activities of Tan Hung Trading Co., Ltd 33

2.2.2 Marketing-mix activities at Tan Hung Trading Co., Ltd and achievements 39

CHAPTER III: LIMITATIONS IN MARKETING-MIX ACTIVITIES AT TAN HUNG TRADING CO., LTD AND SOME COMPLETED SOLUTIONS 45

3.1 Human factor in MA 45

3.1.1 Differentiate Sales and Marketing 45

3.1.2 Organizing training 46

3.1.3 Market research work 46

3.2 Management of sales price 47

CONCLUSION 48

REFERENCES 49

LIST OF DIAGRAMS, TABLES AND CHARTS

Diagram 1: Life cycle stages of the product 15

Diagram 2: Direct distribution channel of commercial enterprises 17

Diagram 3: Indirect distribution of business 17

Diagram 4: The mixed distribution channel of the business 18

Diagram 5: Marketing Organization System of Tan Hung 37

Diagram 4: Synthesis of Marketing Proces 39

Diagram 6: Distribution structure of Tan Hung at present 42

TABLE 1: FINANCIAL STATEMENTS OF BUSINESS ACTIVITIES (TABLE 1) .30

TABLE 2: REPORT ON REVENUES OF SOME MAJOR BUSINESS LINES (TABLE 2) 31

TABLE 4: COMPARISON OF THE EQUIVALENT PRICE OF COMPLEX ITEMS BETWEEN TAN HUNG AND THE SUPERMARKET BAC DO 41

Chart 1: The Wholesale rate and Retail rate of key items of Tan Hung in period 2016-2017 32

Chart 2: The rate of marketing cost and business cost of Tan Hung in the period 2015-2017 36

Chart 3: Chart of electronic products of Tan Hung in period 2015-2017 40

Lao Cai - as a mountainous northern border province of our country, it islocated at the "bridgehead" linking the vast southwest of China with the northern delta.Lao Cai was re-established on October 1, 1991 After over 26 years of reestablishingthe province, Lao Cai has gradually affirmed its position as the economic and culturalcenter of the Northwest The GDP growth rate in the period of 2011-2015 is 14.1% perannum If in 1991, GDP per capita in Lao Cai was only modest at 680,000 VND, thisfigure would be 39.4 million VND per year by 2015 In addition, state budget revenueshave risen sharply from just VND 19 billion in 1991 to VND 5,500 billion by 2015.These outstanding achievements have made a great contribution to the Lao Caienterprises with the role are the "warriors" of the economy

The objectives and tasks of Lao Cai in the 2016-2020 period are to strive tobuild the province into a socio-economic center and an important center forinternational cooperation and economic exchanges in the region and the wholecountry In order to achieve this objective, there should be more activeparticipation of private enterprises and focus on the key areas that are the strength

of Lao Cai such as: minerals, chemical production; hydropower, agriculture,construction, etc After two years of implementing the target of resolving the 15thprovincial Party Congress, by 2017, it was a successful year of Lao Cai provincewhen it was completed and completed Exceeding the 25 major targets In whichmany targets exceeded such as economic growth rate is estimated at over 10%,average income of people reached 51.2 million, up 11.3% over the previous year,Lao Cai is the province second in the northern midland and mountainous areas, afterThai Nguyen Provincial budget revenue in 2017 reached over 7,000 billion,exceeding the target set by the provincial People's Council

The motto of Lao Cai province is: "Enterprise development, Lao Caidevelopment" For many years, the competitiveness index at the provincial level is inthe top 10 of the country, which has created conditions for businesses in and outside theprovince to operate in business In a favorable business environment In that businessenvironment, enterprises in Lao Cai have been developing strongly in terms of quantityand scale and quality of operations On average, more than 3000 enterprises and a largenumber of individual business households and cooperatives in Lao Cai province havecontributed significantly to the socio-economic development of the locality

Grabbing the opportunity, Tan Hung Trading Company Limited wasestablished from early, registered business for the first time on February 4, 2002

On the first establishment of the company is only a small enterprise of the province,

by 2011, the registered capital of the company is 20 billion, with 20 employeessigned long-term contract The company is active in the field of trade, which has alot of potential for development and dynamic of Lao Cai province With its efforts

in the last 5 years, Tan Hung Trading Co., Ltd has step by step In terms of scale,expressed in equity has reached more than 100 billion, labor of the company up tomore than 100 people Turnover of the company in 2017 reached over VND 150billion, contributing nearly 2 billion VND to the budget The company currentlydevelops strongly in retail business of electronics, furniture and especially thecompany owns Duc Huy Supermarket is the largest supermarket in Lao Cai city

To achieve such achievements, over the years, Tan Hung Trade Co., Ltd hasdeveloped and implemented the right business strategy, exploiting the market inLao Cai and other districts of Lao Cai The company has focused and performedquite effectively marketing in business However, in recent years, the market ofVietnam in general and Lao Cai province in general has become more difficult.Along with the new birth of many enterprises in the province, many enterprises inother localities as well as foreign enterprises have been interested in deployingcommercial business in Lao Cai A series of new supermarkets are being built suchas: American English supermarket, Thanh Do supermarket, Muong Thanhsupermarket and convenience stores in the retail market in Lao Cai market out offierce competition Therefore, in order to develop sustainably, enterprises in NinhHoa Ward in general, Tan Hung Trading Co., Ltd in particular need to invest inbuilding and organizing effective implementation of annual business plans andcustoms Proper attention to the implementation of marketing strategies

Being a trainee student at Tan Hung Trading Company, researching the businesssituation of the company in the period 2015-2017, combining the reality of businessactivities and the theory of marketing research Having received the guidance ofteachers, I realized that marketing activities play an important role in the Company'sactivities The company's leaders have paid attention to this activity Wishing to betterunderstand the implementation of marketing strategy of the Company to draw lessonsfor themselves during the post-graduation process as well as can propose, contributesome small ideas for In the period of 2018 and the following period, I selected thetopic: " Perfecting Marketing Mix activities at Tan Hung Trading Co., Ltd " The thesisconsists of 3 chapters, chapter 1 deals with marketing and marketing-mix theories,chapter 2 introduces Tan Hung Trading Co., Ltd - my practice and Marketing-mixactivities in Tan Hung, chapter 3 is the specific assessment of each marketing-mixactivities in Tan Hung and measures to perfect marketing-mix activities here

CHAPTER I: THE MARKETING-MIX

FUNDAMENTALS

1.1 Marketing concept

In the age of Internet boom, Marketing is also used to abuse the term InternetMarketing, Facebook Marketing, Online Marketing But the intrinsic nature of it haslargely vanished

It is not surprising that people are constantly disturbed by advertisements ontelevisions, newspapers, pamphlets and touts even the time, products and staffshave been touting to each household and promote the products, sell the products tothe people They offer and draw great information about the product, ultimatelywhat the customer receives is a poor quality product, and Marketing becomes afarce, a trick to people who make them misunderstand and allergy to this concept.This has little impact on true marketers and marketing strategies that reallybenefit the customer How to understand and apply Marketing properly?

Marketing Mix (Marketing Mix): Marketing mix is a set of controlledvariables of marketing that the company uses to try to get the desired response fromthe target market

So, in conclusion, according to Phillip Kotler, Marketing is about working themarket to make exchanges that meet the needs and desires of the people

1.2 Marketing Mix concept

According to Phillip Kotler, Marketing - mix is a combination of controlelements that businesses use to influence the target market to achieve the plannedgoals The elements are:

• Product: The product is what the company provides to the market, theproduct decision, including: type, size of the product, quality, design, packaging,brand, function , services to meet the needs of customers

Price: Price is the amount of money a customer spends to own and use theproduct or service, the price decision includes the method of pricing, price, tactics

of price adjustment according to the variable the market and consumers

• Place: lung distribution is the activity of delivering the product to thecustomer, deciding the delivery of the decision: choosing, setting up the distributionchannel, organizing and managing the distribution channel, Establish relationshipswith intermediaries, transportation, storage reserve

• Promotion: Promotion is the activity to inform the product, convince thespecialty of the product, build the image of the company and the program toencourage consumption.

1.3 The role of marketing-mix in the business

To succeed in business, businesses and entrepreneurs need to have a thoroughunderstanding of the market, the needs and wants of customers, and the art ofbusiness conduct

Today, businesses must operate in a fiercely competitive environment, withrapid changes in science and technology, new laws, new trade management policiesand loyalty The decline has been declining "Companies are racing against each other

on a route with ever-changing signs and rules, no destination, no eternal victory Theyhave to stop running and hope they are running in the right direction "

Marketing mix as a synchronized system of tools that can be controlled bybusinesses used to influence and conquer customers is a business science researchbusiness Directly related to the flow of goods and services from the place ofproduction to the consumer, in order to find effective measures to protect, maintainand develop the market In today's complex world, all of our business successrequires the use of marketing mix as it is the most powerful tool to help us wincustomers and win competitors , we have to understand marketing mix Nobusiness can be successful in today's era and do not apply marketing mix in theirbusiness The knowledge of marketing mix allows the business to be wiser whendealing with customers Marketing mix touches on the benefits of your businessthroughout your life

Marketing mix is very powerful for the belief and lifestyle of consumers.Thus, business people find ways to satisfy the desires of consumers, create productsand services at a price that consumers can pay

The scope of marketing mix is very broad, the marketing mix includes manyfactors such as price formation, stockpiling, packaging, branding, operations andsales management, credit, shipping marketing, social responsibility, retailingoptions, consumer analysis, wholesale, retail, buyer and seller selection, advertising,social relationships, marketing research , product planning and warranty

The most important job of marketing mix is to create value for customers,make commitments, bring customer satisfaction and create customer loyalty.Marketing mix is used as a "stunt" for customers, giving direction to productdevelopment and function to express what the customer wants and needs Moreimportantly, marketing mix is referred to as the "voice of the customer", which

includes the deployment and implementation of processes to capture the customer'sneeds Thanks to that, the company can provide products and services to customerswith the best quality.

Today, customers are more powerful than ever They can control where andwhen the products and services are consumed This also means that customers willhave more choices for themselves They will be less loyal to a brand and prefer toseek information from their own research, friends and experts about the product orservice they want to buy This change has led to a change in the implementation ofthe marketing mix: in the way the message is conveyed, in the approach to thecustomer In addition, the commercialization of goods, the emergence of theInternet has contributed significantly to the transformation of the world, this is both

an opportunity and a challenge for all companies and challenges The biggest thingfor them is to develop their business products

However, the ability to develop products and services through theintroduction of new ideas, while also matching the needs of customers, is an easytask Very few business activities after the idea came in the right direction andmore new products were born prematurely Customer's thoughts are important tothe success of the product A new product that wants to grow relies heavily onsynthesizing all the insights into market demand and how to create a product thatmeets those needs If marketing and consumer secrets are kept, marketing mix willhave a positive impact on the innovation and development of new products /services The process is as follows: the mind in the customer is "turned" into abusiness idea, and the next marketing mix turns the business idea into a newproduct And when creating a new product or service that meets the needs of thecustomer, the value of the company increases

Any long-term success is often related to the ability to innovate Althoughinvesting is profitable and innovation is to maintain the product's existence, it is like

a new game and the first thing is to break through the defensive line to make thecompany In new markets, there is the possibility of rapid growth, to create a solidfoundation for sustainable development, and create a high return on re-investment.Marketing mix plays a central role in shifting customer information into newproducts and services, and then positioning these products in the marketplace Newproducts and services are the answer of the company to change the preferences ofcustomers and also the main driving force of the competition As the needs ofcustomers change, companies must innovate to satisfy and change that demand Thetask of marketing mix is to determine the needs of customers, so marketing mix

must play the role of establishing and leading the process of innovation Somemarketing chiefs (CMO) have recognized the new role of marketing mix and haveacted in this direction At the recent CMO Senior Summit, this was clearlydemonstrated in CMO's annual research papers These studies show that CMOsunderstand that they are responsible for seeking innovation, not just selling moreproducts and services.

Various studies have also shown that in many companies, the transmission andcoordination of R & D and marketing activities accelerates the implementation ofnew products At the same time, these studies also show that the integration ofmarketing mix with other functional groups such as research and development hasbecome one of the most important factors affecting the success of a product new

At times, the role of marketing mix for the development of business is ranked first

A study conducted in 1999 at 114 high-tech companies in China showed that themarketing mix system plays a very important role and has a positive influence onthe launch of a new product and the development of the company

1.4 Components of Marketing-mix

1.4.1 Price

In marketing mix, the price parameter is the only parameter that brings income

to the business, ensuring the business can survive and develop Other parameters arecosting businesses The pricing for the product not only ensures that the businesscan survive and develop, but also ensures that the business can consume the goods

at that price It is important to understand and set a sound pricing strategy

Valuation Objectives: Determining the price level for specific products of anenterprise is not optional The pricing must meet the set objectives of the business.Businesses can choose a business's pricing goal from one of the following goals:First: Valuation is to ensure that the income is determined in advance

The goal is to ensure a specific level of profit from the selling price of theproduct, a predetermined amount of which is used to obtain funds to meet thecompany's targeted return on investment or reinvestment It is usually defined inthe sale price as a percentage of product sales.

Second: Valuation aims to maximize profits

The goal is to determine the price so that the maximum profit can be achievedwhen selling You can set the price at the highest level for your product when theopportunity Often, businesses can find maximum profits on the basis of setting theoptimum price For maximum profit, people do not choose the price that brings thegreatest sales, but choose the best profit for the business

Third: Valuing to achieve sales goals

The pricing objective is to give the business a certain amount of sales that theywant In this case, the focus should be on the number of items sold or the increase insales, and the profit margin is less important

Fourth: Valuation aims to achieve the development of market segments

The goal is to set prices to help businesses be able to stand up, expand andcontrol segments in the key market of the business The price requirement is toattract target groups in the key markets and be competitive with competitors Wecan use a low price but the price is still higher than cost to ensure profit Flexibleprices can also be applied to different customer groups, at different stages of theproduct life cycle

Fifth: Valuation aims to achieve competitive goals

The goal is to offer a more attractive price to customers compared to othercompetitors of the business If the product is consistent in quality, offering a lowerprice will create a great advantage for the business in the eyes of customers and canwin the competition

Sixth: Valuing to achieve competitive goals is not a price

The goal of competing with competitors at this point is not to use priceparameter separately anymore, but to use the mix of marketing mix tools In thiscase, it is possible to set the price corresponding to the quality of the productprovided to the customer

The pricing policy of the business

To achieve their valuation goals, businesses must have a sound pricing policy

A proper pricing policy will make it easier for customers to accept prices andpurchase decisions, improving the image of the business in the eyes of the customer.Firms often apply one of the following pricing policies:

Price flexibility policy.

Different pricing groups are available to different groups of customers to bestmeet their demand Includes: one price policy and flexible price policy

One Price Policy: Is offering a fixed price, standard price for all customers inthe same basic conditions and the same volume Goods are sold at listed prices,there is no bargain It helps to ensure a steady income, maintain customercredibility, facilitate sales, facilitate price management and payment However, itcan lead to rigid pricing and is not suitable for bargain customers

Flexible price policy: Give different customers different prices at the sametime and same quantity of goods Can sell at different prices around the listingprice, customers are bargain priced Salespeople can sell in the ceiling price, floorprice Products are not standardized, common in small business

Price policy at the product's life cycle

At each stage of the product life cycle, a different pricing policy applies Detail: Dilution pricing policy: Apply in the introductory stage if the product iscompletely new, there are no similar products on the market Then the company canoffer the highest price to maximize the drop in the market

Intrusive Price Policy: Apply for new products but are innovative products

At that time, the company can apply a low price for a long time to sell goods inlarge quantities in the market

Introductory price policy: Offer low prices in a short time (trial price) toattract the attention and trial of customers

Market price policy: Enterprises set prices based on analysis of competitors'prices in the market

Price policy is calculated according to transportation cost

In order to best meet the needs of customers, the goods must be transported toplaces that are beneficial to them Sometimes the cost of transporting to suchlocations is very high and when calculating the selling price to customers, it ismandatory to include this cost Include:

Price of deliveries by location: This price category takes the place of deliverybetween the buyer and the seller as the basis for determining the selling price Thedelivery price by location is divided into two cases:

First: The place of delivery has been pre-determined by the seller Usually, theseller makes a published price at his or her pre-defined delivery location Differenttypes of goods are shipped to different locations, depending on the price

Second: The place of delivery is determined according to the needs ofcustomers The seller will have to transport the goods to the place requested by thebuyer, shipping costs will be included in the price of goods.

Delivery prices by region: The price level is not based on any specificlocation but by geographical area has been determined before It is possible todivide the entire market into smaller areas, in the same customer area, paying thesame amount of money for the same product Often used to create attractiveness toguests away from the sales location of the business

Bulk Price: The seller builds the same price across his entire market

Attractive prices: Use location-based pricing but want to be competitive in thedistant markets and attract new customers As a result, businesses will have to cutprices for customers who are away from their sales locations

Price discount policy

In business it is not always possible to sell at the original published price.Many sellers face certain difficulties either to increase their sales or for some otherpurpose that the business can use price reduction or price-fixing There are cases ofprice reduction or price fixing as follows:

Volume discounts to encourage more purchases Customers who buy largequantities of goods will be discounted from the published price

Seasonal discounts To encourage customers to buy goods earlier than theirneeds to reduce the seasonal nature of the goods

Reduced by time of payment If customers pay before the due date, they may

be discounted from the original price

Pre-order discount When customers pre-order will be discounted from theoriginal published price

Preferential pricing To strengthen the good relationship with traditionalcustomers, important customers, target customers, businesses can lower the pricefor these objects

Reduced prices due to consumption of inventory To reduce the costs ofmaintaining inventory, businesses can lower their selling prices so that they can selltheir inventory

Traditional discount Discounted for intermediate consumers

The pricing policies of the business It is similar to a discount but with thecondition of the seller to the buyer, the buyer must fulfill certain conditions of theseller Include: money difference to stimulate sales; the difference for the

advertising efforts of the customer; recall old products and replace them with newproducts; Give lottery tickets, vouchers for artifacts for customers.

Valuation methods

Factors to consider when calculating prices

First: Customer needs

It is the first factor that a valuer should consider because the product produced

is to serve the needs of the customer If customers do not have the need, the productcan not be sold Between the price and the needs of customers are related to eachother In general, the lower the price, the higher the demand and vice versa Theprice level and customer demand are inversely related to each other

However, there are a number of factors that have diminished the impact ofprices on customers such as: unique value products, less product substitutability,lower product value than income of the customer, due to the quality of the product

or the reputation of the business

Second: production costs

This is especially important when calculating the price Cost is the amount ofmoney that businesses spend to produce or can own the product Therefore, whencalculating the price, it must be higher than the cost that the business can spend to

be able to profit Total cost and average cost are two factors to consider

The total cost is the basis for determining the average cost per unit of product.Average cost per unit of product is calculated as follows:

Average cost = Total cost / Quantity of product.

Third: Competitors in the market

In business in the market, besides enterprises, there are many otherenterprises involved in supplying goods and services of the same kind.Therefore, in order to sell goods well, enterprises must analyze the prices andprices of similar goods of competitors in the market Competitor prices can beset as the standard price so that businesses can adjust their prices around thatstandard price However, compare the price and quality of the competitor'sproduct with your product to make accurate decisions about your price On theother hand, if one is able to understand the competitors' pricing policies, theirmarketing mix and the customer's perception of each competitor in the marketwill make the pricing of the product accurate

Fourth: Legal and social factors

The set price must be legal, must be within the ceiling price - floor price asprescribed, the price must not be higher than the true value of the goods, not set toolow for dumping, not the first About price .

Price calculation methods

First: Cost-based Costing: Based on the average cost to calculate the price, theprice must be higher than the average cost of producing a product to be profitable.For producer: P = Cbq + Ktg

Inside:

P: published price of the product

Cbq: average cost to produce a product

Ktg: price increase per product

For wholesalers and retailers: P = Pm + Ktg

Inside:

P: published price of the product

Pm: purchase price

Ktg: price increase per product

Second: Demand-driven pricing: Cost is still an indispensable factor inpricing However, in reality, objective factors have a great impact on the success ofthe price, such as customer demand, competitors' reaction, substitution of similarproducts on the market, prestige of the business as well as the reputation of thetrademark Therefore, when calculating prices we can also base on the level ofsatisfaction of customers about the value of use of products If the high level ofsatisfaction can be high for your product

1.4.2 Product

Product Concept:

Understanding and describing the right products of the market place is one ofthe important tasks of marketing mix in the business Determining the right businessproducts of enterprises have a great impact on the ability to consume and exploitbusiness opportunities of enterprises There are two approaches to products:traditional product approach - from the perspective of production and access to theproduct from a marketing standpoint

Traditional product access is essentially the identification of a product based

on the underlying function that satisfies one or more of the needs of a person anddoes not take into account the relevant factors that meet the complementary needs.The pulse revolves around satisfying that fundamental need The traditionalapproach and description of the product is a fundamental description that is

indispensable in the commercial operation of the business But nowadays the role ofcustomers is the most important factor and their needs are increasingly high,traditional product descriptions are only necessary but not sufficient.

Product approach from a marketing perspective comes from the perspective ofthe consumer This approach is an improvement, a more complete step in describingthe product of the business in the context of modern market economy Today, inorder to enhance competitiveness and promote product consumption, enterpriseshave access to products from a marketing perspective

Thus, "the product of an enterprise should be understood as a unified system

of closely interrelated factors in order to satisfy synchronously the needs ofcustomers including physical products, packaging, trademarks, services, salesmethods, "(According to Trade Marketing Textbook by Assoc Prof NguyenXuan Quang, National Economics University)

Product Classification:

Depending on the purpose of using the goods of customers, goods in themarket can be divided into two categories: consumer goods and industrial goods.Consumer goods classifications are divided into 4 basic groups

Common goods: goods are consumed frequently, bought in a short time, takeless effort when buying Include: stable products (products are purchased regularly,continuously, serving the needs of customers such as shampoo, cooking oil, );Custom items (those products that customers do not expect to buy in advance,suddenly feel the need and they buy when they see the product); Urgent products(which are purchased as soon as the demand becomes very large, no time to search).Longevity: products are not purchased regularly, the value of products isoften large, customers often spend a lot of time, effort to choose, compare thequality and price between the manufacturers to get the product I like most.Include: durable goods are homogeneous (considering the quality of products isthe same and the prices are the criteria for selection), durable goods are notconsistent (products have no specific standards of quality, then price of goodswill be associated with quality)

Special items: are products that customers really have a need and love, theyspend a lot of time, effort to find, they are willing to pay high prices to own the itemand do not accept the alternative by any other product

Little known: products that customers have no need or need, information aboutthe product is very little for them

Classification of industrial goods: include

Factory land, office.

Equipment: includes main and auxiliary equipment

Components, spare parts, semi-finished products

Raw materials and materials

Additional materials and goods

Product development orientation

New Product Concept: From a customer's perspective, a new product is notnecessarily a brand new product The new product may be an improved product, thecurrent product but has been refined in terms of details, new functionalities, newpackaging, new or brand new, new service, "A very small difference in servicecan make a big difference in terms of having similar products being sold in themarket," says Connie

Product development orientation:

For manufacturing enterprises, the main task is to manufacture products.Therefore, the orientation of the manufacturing enterprise is to focus on the researchand manufacture of completely new products, improve the current products in terms

of style, features, packaging However, to create a better image in the eyes ofcustomers, enterprises can put in and complete the overall structure of products such

as maintenance service, warranty, spare parts replacement, finishing Productdevelopment in this direction is an effective solution to increase the ability toproduct and create good image of the business in the eyes of customers

As for commercial enterprises, the main function is to buy for sale Purchases

of the manufacturer sold to consumers, consumer products received from the tradercan be described as follows:

Consumer products received from the trader = The products whichmanufactured by the manufacturer + The product is made by the trader

For the customer what they need in the business and pay for them is thebusiness can provide synchronized services to help them meet their needs This set

of services has created the products of commercial enterprises in the eyes ofcustomers Basic products of commercial enterprises include:

Help customers obtain quality assurance products selected frommanufacturers to satisfy their basic needs

Help customers order, buy from manufacturers

Carrying goods to useful locations for customers

Help customers stock their goods to satisfy their needs in the long run

Provide favorable conditions for the use of products by customers

.

From the constituent parts to the products of commercial enterprises, thepolicy of product development of commercial enterprises needs two basic elements: The first is the need to develop products in kind Include tasks such as: searchenhancement, selection of products manufactured by the manufacturer to catalog thebusiness goods of the business

Second is the development of private business products It is the development

of service elements to be able to satisfy the needs of customers from the productthat the business enterprise Therefore, it is necessary to improve the efficiency ofthe operations of purchasing, generating sources, stockpiling goods, selling andpaying methods

Product life cycle: The product life cycle is usually divided into four stages:Stage 1: Introduction

It's time for the new product to hit the market As new product informationabout the product is little, less known and used, customers have doubts about thefeatures and effects of the product At this stage the business can suffer losses due

to not selling the product

Marketing guide: If the new product is completely exclusive, so the businesscan use the policy "price shredding" to achieve maximum profit If an innovativeproduct can use intrusive pricing policy to attract customers On the other hand,promotion and advertising of images and information about products is veryimportant The proper distribution of the product distribution network is also veryimportant so that the product can reach the customer quickly

Phase 2: Developed markets

Customers preferred products Sales increase rapidly and can peak Highprofits and can reach maximum

Marketing guidelines: promotion costs decrease, pricing and distributionpolicies continue to consolidate to strengthen market share

Stage 3: Market saturation

It was a phase that was less attractive in business At this stage, sales areslowing down, profits are declining, and many competitors are in the market

Marketing guide: Use high cost solutions such as: discounts, promotion costs.Continue to research new performance features to further improve the product.Stage 4: market decline

Is the last stage in the life cycle of the product Sales and profitability aredrastically reduced due to the sharp drop in demand for products, the emergence of

many competitors, and the emergence of new products of the same type in themarket that are more effective than their current counterparts enterprise.

Marketing guide: continue to research, perfect new functions for your currentproduct or research new products

The four stages of the product life cycle can be described in the figure below.

Diagram 1: Life cycle stages of the product

Stage 1 Stage 2 Stage3 Stage 4

Profit Sales figure

Trademark: Identification and development of trademark strategy is a veryimportant content of the product strategy of the business Because brands have agreat influence on the consumption of products in the market

Brand concept: A brand is a word, phrase, symbol, sign, design, orcombination of all these elements to create a complete product

Trademark: A trademark that is protected by law under the use of the businessthat produced it

5 famous brand level

The mark is removed

Popular brands.

Trusted brands

The basic content of the brand strategy includes:

Labeling: The name of the label should be short and simple, easy to spell,easy to read, easy to remember and easy to remember, with a legal basis for use andconsistent with all advertising media

Trademark protection: registration of protection before the law, regularmonitoring to prevent violations, focus on protecting the reputation of thetrademark

Build programs to exploit brand reputation in business

Ensure favorable conditions for brand development and efficiency whenintroducing new brands

1.4.3 Place

The concept of Place

According to Professor Nguyen Xuan Quang’s Marketing curriculum,National Economics University: "A distribution channel can be understood as asystematic collection of elements involved in the transfer of goods from theproducer (or head office) to the user "

According to Philip Kotler: "A distribution channel is a set of companies orindividuals who take on themselves or help transfer ownership of a particular good

or service from the manufacturer to consumers "

The functions of the distribution channel The distribution channel is the pathwhere goods flow from the producer to the consumer The members of thedistribution channel do particularly important functions:

First, research, gather the information needed to plan and facilitate theexchange of goods

Second: stimulate consumption and dissemination of information about the product.Third: Find, create and maintain long-term, sustainable relationships with customers.Fourth: improve the product to better meet the needs of customers

Sixth: Negotiate with each other on price to continue transferring ownership oruse of products

Seventh: Organizing the circulation, transportation, storage and stockpiling of goods.Eighth: Find and use funds for channel activities

Ninth: Responsible for channel activities.Các dạng kênh phân phối

First: Formal channel directly, indirectly Includes channels:

Direct distribution channel: A distribution channel in which an enterprisedoes not use intermediary buyers to distribute goods Salespeople areemployees of the business.

We have a diagram of the direct distribution channel

Diagram 2: Direct distribution channel of commercial enterprises

Indirect Distribution: The type of distribution channel in which an enterprise usesintermediary buyers to sell goods to the enterprise

We have a diagram of this type of channel:

Diagram 3: Indirect distribution of business

Mixed distribution channel: A combination of two types of direct and indirectdistribution channels

We have a diagram of this type of channel:

STAFFSENTERPRISES

CUSTOMERS ENTERPRISE

Diagram 4: The mixed distribution channel of the business

Second: Channel type is long, short

Short-form distribution channel: The form of direct distribution channel fromthe business to the customers or also the intermediary buyer but not too much,usually only one intermediate buyer involved in the distribution process

Long distribution channel: A type of distribution channel that involves manyintermediate buyers in the process of distributing the products of the business toconsumers

Design the distribution channel of the business To design the distributionchannel system should do the following:

The first: Study the factors affecting the selection of distribution channels Thefactors are:

The key customer groups of the business: their characteristics, requirements

of the product, the level of response of the business on the needs of customers The geographical limit of the business market: the distance from the business

to the customer groups, the means of transport used by the enterprise, the cost oftransporting the goods to the distribution channels

The current state and potential development of the sales force of the business The intermediary forces in the market

The objectives of the business in terms of satisfying the needs of customers, profits, Second: Define the goals and standards of the distribution channel system

CUSTOMERS

AGENCY

CUSTOMERS

PERSONAL BUYER

SALES STAFFS

ENTERPRISE

Satisfaction of customers' needs in terms of time, location, services of the business General sales and sales of each product group.

Improve market access, market control, and market development

Measures to reduce sales costs, transportation costs

Third: Determine distribution channels and distribution channels From theabove distribution channels, each type of distribution channel has its advantages anddisadvantages Depending on the characteristics, objectives and capabilities of theenterprise, the enterprise can choose the appropriate distribution channel

Fourth: Select, develop elements in the distribution channel of the business.The key elements in the distribution channel of the business consists of twobasic types:

Sales team of the business

Intermediary buyers of the business

Depending on the type of distribution channel that the business has selectedfor their business but decide whether to use the middleman or not

Fifth: sales force of the business In all types of distribution channels, the salesforce of enterprises plays a very important role, directly affecting the efficiency ofdistribution channel Sales force of the business usually includes:

Sales force of the enterprise Is all members of the business have a directimpact on the sale This force can be divided into two parts: sales force in the officeand sales force outside the business Each of these sections has different roles andresponsibilities within the enterprise

Sales agents with contracts of the business Individuals or organizations thatare independent of the enterprise selling goods to the enterprise in order to receiveagent commissions under the contract signed between the two parties Using thissales force brings a lot of benefits to the business As:

First: help businesses expand their sales capabilities to their customers.Developing sales to remote areas, which is not convenient for deploying the salesforces of the enterprise there

Second: Help your business stay strong, strengthen your control over yourdistribution system across the entire distribution system

Third: Help businesses reduce the cost of traffic compared to using otherintermediaries

Fourth: Agents often understand the needs and characteristics of the market,good relations with the authorities in the market place to place agents will makeeffective consumption of goods there better

However, the use of agents also have many inadequacies, affecting thebusiness efficiency of enterprises such as:

First: Intermediaries can also join the distribution channel but can leave thechannel if their own interests are not satisfied

Second: if agent management is not tight, agents can take advantage ofopportunities to act as agents to pursue their own interests

Third: if the goods are hard to sell, the sales force for business will not be high.Fourth: agents can limit the technical basis, sales skills, understanding of thegoods they sell

In different types of distribution channels, the type of middle buyer in thedistribution channel will also be different Therefore, depending on thecharacteristics of the business, the choice of the distribution channels and the type

of intermediary buyer suits them

Select intermediate buyers for the distribution channel of the business

Each type of middle buyer usually has a lot of independent traders Depending

on the characteristics and requirements of the business, the buyer selects theappropriate intermediary

Adjust the distribution system of the business

A distribution channel system is not invariant, depending on the specificsituation of the market, which makes decisions to select the correct and effectivedistribution channels

In the book "Marketing Trade" by TS Nguyen Bach Khoa: "Trade promotion

is a special and targeted field of marketing that is geared towards offering, invitingand establishing the most favorable relationship between the company and itscustomers with a focus on key customers to coordinate the strategic deploymentand marketing mix of the company chose "

 The role of trade promotion in the marketing mix of the business

First: It helps businesses to develop trade relationships with domestic andforeign partners

Second: Through trade promotion activities, enterprises will have moreinformation about the market, favorable conditions for business development,integration into the world economy.

Third: Through trade promotion activities, enterprises will gather informationabout customers and competitors, can reach the market potential of enterprises,provide customers The information about the product and the business, creatingbeautiful images of the business in the eyes of customers

Fourth: Trade promotion activities are a bridge between customers andbusinesses

Fifth: Trade promotion makes sales easier, a useful tool for meeting supplyand demand

Sixth: Through trade promotion activities enterprises not only sell more goodsbut also contribute to change the consumer structure and guide the tastes ofcustomers

Content of trade promotion activities

Second: On the perspective of the way the impact is: ad-sensible advertisingand impact

Third: Based on the method of rendering ads with hard ads and soft ads

Fourth: Based on the advertised audience that promotes and promotes theproduct

Advertising vehicles Include:

First: Advertising through mass media such as newspapers, television, outdooradvertising, radio and other media

Second: direct advertising as catalog mailed, brochures,

Third: advertising at the place of sale