Luận văn thạc sĩ marketing plan for certificate authority service of viettel telecom kế hoạch marketing cho dịch vụ chứng thực chữ ký số của công ty viễn thông viettel luận văn

VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Nguyen Thu Phuong MARKETING PLAN FOR CERTIFICATE AUTHORITY SERVICE OF VIETTEL TELECOM MASTER OF BUSINESS ADMINISTRATION THESIS

VIETNAM NATIONAL UNIVERSITY, HANOI

SCHOOL OF BUSINESS

Nguyen Thu Phuong

MARKETING PLAN FOR CERTIFICATE AUTHORITY

SERVICE OF VIETTEL TELECOM

MASTER OF BUSINESS ADMINISTRATION THESIS

Hanoi - 2011

1

VIETNAM NATIONAL UNIVERSITY, HANOI

SCHOOL OF BUSINESS

Nguyen ‘Thu Phuong

MARKETING PLAN FOR CERTIFICATE AUTHORITY

SERVICE OF VIETTEL TELECOM

Major: Business Administration

Code: 603405

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisors: Ph.1) ‘Tran Doan Kim

Hana — 2011

CONTENTS

Error! Bookmark not defined Error! Bookanark not defined

2 Purpose of the Marketing Plan

3 ‘The marketing planning process

2 Forecast aboul public digital signature market in Vietwas ened

3 Market Demand eecnsnitvisieteesienieieensivesieeiet 1

831 Direct distribution network 62

8.4.4 Markctng comununieetions buấp - seo.) 8.5 People

8.6 Process

9 Evaluation of Markeling activities’ fficisney ene T CHAPTER 3 w.sssessssesstetetistiseenieteseesee retentive MARKETING PLAX OF VIETTEL TELECOM COMPANY FOR VIETTEL

CERTIFICATE AUTHORITY SERVICE (VIETTEL CA) ee 9

TS .d|HHằ.ổ

TAST OF FABLES

1 Number of potential CAs in Vietnam in 2011 45 2.2 Number of potential CAs in the market in period from 2011 to 2015-46

2.3 Number of expected CAs im the market in period from 2011 lo 201547

3.1 Schedule of Marketing, plan action of Viettel in 2012 74

3.3 Expense Forecast of Certificate Authority service 79 3.4 Viettel’s number forecasts of CA service from 2011 to 2015 g0 3.5 Viettel’s Sales forecast of CA service from 2011 to 2015 80 3.6 Viettel’s Income statement of CA service from 2011 to 2015 81

LIST OF FIGURES

2.1 Revenue of Viettel Company in period from 2000 to 2010 32 2.2 Profit of Vieltel Company in period from 2000 to 2010 33 2.3 Human resource of Viettel Company in period from 2000 to 201033

3.5 Forecast about global CA market during 2006 — 2012 38

Number of CAs granted in South Korea during, 2000-2008 39 2.7 Order receivement of enterprises during 2006 - 2008 40

28 Percentage of enterprises having websiles during 2004 — 2008 41 2.9 Market share of Certificate Authority service 48

iv

projects to expand e-transaction applications in the administrative services of state

agencies, especially the administrative services of the Minisizy of Finance - typical

is the project of the Department of ‘Taxation With this situation, the government is

crealing an ¢-transaction markel im general and service markel of digital signalure mn

particular

According to Decision 1605/QĐ-TTg by the Prime Minister on “Approval of national program in applying information technology to state-owned organizations during 2011-1015”, the government's target until 2015 is that:

100% of state agencies from the districts, departments or equivalent or higher,

or e-portal site provides full electronic information under Article 28 of the

Law on Information Technology, Supply for all public services online level 2

and most basic public services online at least level 3 to the people and

‘businesses

50% individual and enterprise tax forms will be declared online

% of customs offices do electronic cuslomers procedures

All bidding plan, bidding notices of bidding results, the list of participating

bidders is posted on the national tender, about 20% of package goods

procurement, construction and cousultant services using state funds to be made online

100% of passports issued to citizens of Vietnam serving the immigration as

electronic passports

30% of the records request for a building permit is submitted online.

It can be seen, in Vietnam, the legal framework and social needs of the c-transaction

grows, enabling the service authentication of e-transactions under development, which is lypical services of digital signature (an effective tool for authentication, ensuring the safety and integrity of electronic transaction services)

However, people's awareness of these services is limited Furthermore, the markel

has five service providers supply the Cortificate Authority is VNPT, BKAV,

Viettel, FPT, Nacencom Viettel is the third supplier after VNPT and BKAV

Therefore, no advantage Vietlcl pioneers and ficree competition between providers

So, to solve these problems, Viettel need te boost the marketing activities to increase understanding of customer service as well as attracting and promoting

customer using Viellel — CA service

While working at the Center for Business customers, Viettel Telecom, I have been

studying the Victlel Certificale Authority (Vieticl — CA) and found these problers

in the process of service development Ibus, 1 decided to chose the topic

“Marketing Plan for Viettel Certificate Authority (Viettel — CA) service in

Viettel Telecom company” for my thesis

2 Objective

‘The thesis attempt to analysis market of Certificate Authority service and current

marketing activities of Viettel for Viettel — CA service, and then built the marketing

plan for this service

3 Scope

‘The thesis concentrates on the Certificate Authority service in Vietnam market In

which, il will specifically build markeling plan to Vieltel Certificate Authority

(Vietel — CA) of Visttel Telecom company (a company belong to Victtel

Corporation), one of the biggest telecommunication companies in Vietnam

4 Methads / Approaches

The thesis focuses on typical methods of economies research such as information gathering, facts and figures comparing and critical analyzing, The author adopts

Doth primary and secondary rescarch methods and uses domestic and forcign material sources to find out basic theories about marketing plan, meanwhile collecting dala through markeling activities, analysis reports of Vieltel Telecom and through survey by email questionnaire and telephone follow up to 100 enterprises at Tlanoi The enterprise selected for the survey has the following criteria: it is small and medium enterprises in many industries to understand their different needs about

CA service, so that classify customers to different segmentation and then have suitable marketing strategy Then, the author uses the systematical, statistical, analytical methods to analyze all collected data

3 Short Introduction

Apart from the introduction, conclusion and appendices, the thesis consists of three chapters:

- Chapter l; An overview of marketing plan

+ Chapter TI: Canrett marketing activities for Victlel Certificate Authority

(Viettel CA) service

- Chapter TI: Markeling plan of Vietlel Telecom company for VieHel

Certificate Authority (Viettel CA) service.

A marketing plan may be part of an overall business plan Solid marketing strategy

is the foundation of a well-written marketing plan While a marketing plan conlains

a list of actions, a marketing plan without a sound strategic foundation is of little use

In other information source by David Parmerlee [11]; “A marketing plan contains information about your company and its products, marketing objectives and siratogies, as well as how you will measure the success of your marketing

activities”

It describes all the marketing activitics you'll perform during a specified time period (usually one year) You'll also include any background information and research results you used to select those marketing activities Finally, you'll document the costs associated with your planned marketing activities as well as the measurements you'll use to detennine success,

‘Most often, a marketing plan is a component of a business plan A business plan basically states how you plan to run your company what your goals are, how much money it will take to achieve your goals and what activities you'll perform to achieve your goals Marketing, obviously, is one of those activities Marketing plans sometimes stand alone but should always support and be closely linked to a company’s business objectives.”

2 Purpose of the Marketing Plan

A marketing plan helps you establish, direct and coordinate your marketing efforts Preparing a marketing plan forces you to assess what's going on in your marketplace and how it affects your business It also provides a benchmark for later measurement Often, simply embarking on the process of preparing a marketing

plan guides you in developing a successful marketing strategy

3 The marketing planning process

In most organizations, "strategic planning" is an annual process, typically covering

just the year ahead Occasionally, a few organizations may look at a practical plan

which stretches three or more years ahead

To be most effective, the plan has to be formalized, usually in written form, as a

formal "marketing plan." The essence of the process is that it moves from the general to the specific; from the overall objectives of the organization down to the

individual action plan for a part of one marketing program It is also an interactive

process, so that the draft output of each stage is checked to see what impact it has

on the earlier stages - and is amended

The marketing process model based on the publications of Philip Kotler [13] It consists of 5 steps, beginning with the market & environment research After fixing the targets and setting the strategies, they will be realized by the marketing mix in step 4 The last step in the process is the marketing controlling Beside this process

of Philip Kotler, there are many other Marketing Plan Model of different marketing specialists So, base on my research I conclude a Marketing Plan Model below

Tl MARKETING PLAN

While the business plan’s executive summary is the first thing the readers of your

‘business plan see, it should be the last part of the business plan you write

The purpose of the executive summary of the business plan is to provide your

readers with an overview of the business plan Think of it as an introduction to your

business Therefore, the marketing plan’s executive summary will inelude

summaries of:

+ Adescriplion of company, includirys products and/or services

+ Mission statement

« Business’s management

¢) The market and customer

» Marketing and sales

+ Competition

+ Business’s operalions

+ Financial projections and plans

The executive summary will end with a summary statement, a “last kick at the can”

sentence or two designed to persuade the readers of your business plan that your

David A Aaker outlined the following dimensions of a market analysis [3]:

« Market size (current and future)

* Market growth rate

* Market profitability

+ Market trends

+ Koy success factors

21.1 Market Size

The size of the market can be evaluated based on present sales and on potential

sales if the use of the product were expanded The following are some information

sources for determining markel size:

« Government data

« Trade associations

© Financial dala from major players

+ Customer surveys

212 Market Growth Rate

A simple means of forecasting the market growth rate is to extrapolate histarical

data into the future While this method may provide a first-order estimate, it does

not predict important tuming points A better method is to study growth drivers

such as demographic information and sales growth in complementary products

Such drivers serve as leading indicators that are more accurate than simply extrapolating historical data

Important inflection points in the market growth rate sometimes can be predicted by constructing a product diffusion curve The shape of the curve can he estimated by

studying the characteristics of the adoption rale of a similar product in the past

Ultimately, the maturity and decline stages of the product life cycle will be reached Some Ieading indicalors of the decline phase inchide price pressure caused by competition, a deorease in brand loyalty, and the emergence of substitute products,

market saturation, and the lack of growth drivers

213 Market Trends

Changes in the market are important because they often are the source of new

opportunilies and Ubreats The relevant trends are industry-deperident, bul some examples include changes in price sensitivity, demand for variety, and level of

aphasis on service and support Regional trends also may be relevant

214 Key Success Factors

The key success factors are those clements that are necessary in order for the Girt to

achieve its marketing objectives A few examples of such factors include:

+ Access Lo osscniial unique resources

+ Ability to achieve economies of scale

+ Access to distribution channels

* Technological progress

It is important to consider that key success factors may change over time, especially

as the product progresses through its Tile cycle

2.2, Competitor analysis

In formulating business strategy, managers must consider the strategies of the firm's

competitors While in highly fragmented commodity industries the maves of any

single competitor may bz less important, in conccntraled industrics competitor

analysis becomes a vital part of strategic planning

Competitor analysis has two primary activities, 1) obtaining information about important competitors, and 2) using that information to predict competitor behavior The goal of competitor analysis is to understand

«+ _ with which competitors to compete,

* competitors’ strategies and planned actions,

+ how competitars might react to a firm's actions,

+ how to influence competitor behavior to the firm's own advantage.

Casual knowledge about competitors usually is insufficient in competitor analysis Rather, competitors should be analyzed systematically; using omganized competitor intelligence gathering to compile a wide array of information so that well-informed strategy decisions can be made

Competitor Analysis Framework

Michael Porter presented a framework for analyzing competitors [14], ‘This frmnework is based on the following four key aspocis of a compatitor

achieving that objective

A SWOT analysis is a Gist, bul critical, stop in developing an organivational strategy By examining the company's internal capabilities its strengths and

weaknesses and its external environment—opportunities and threats, it helps to

create strategies that can proactively contend with organizational challenges

231 Strengths

Strengths, in the SWOT analysis, are a company’s capabilities and resources that

allow it to engage in activities to generate economic value and perhaps competitive advantage A company's strougihs may be in its ability Lo create unique products, 10

provide high-level customer service, or to have a presence in multiple retail markets, Strengths may also be things such as the company's culture, its staffing and training, or the quality of ils managers Whatever capability a company has can be regarded as strength

23.2 Weaknesses

‘A company's weaknesses are a lack of resources or capabilities that can prevent it from generating economic value or gaining a competitive advantage if used to enact the company’s strategy There are many examples of organizational wealmosses For example, a firm may have a large, bureaucratic structure that limits its ability to compete with smaller, more dynamic companies Another weakness may occur if a company has higher labor costs than a competitor who ean have similar productivity from a lower labor cost The characteristics of an organization that can be strength,

as listed above, can also be a weakness if the company does not do them well

2.3.3 Oppartunities

Opportunities provide the orgamivation with a chance fo improve ils performance

and its competitive advantage Some opportunities may be anticipated, others arise

unexpectedly Opportunities may arise when there are niches for new products or

services, or when liese products and services can be offered al diflerent times and

in different locations For instance, the mereased use of the Internet has provided

numerous opportunities for companies to expand their product sales

234 Threats

Threats can be an individual, group, or organization outside the company Lhat aims

to reduce the level of the company's performance Every company faces threats in its environment Often the more successful companies have stronger threats, because there is a desire on the part of olher companies to take some of Ill success for their own Threats may come from new products or services from other companies that aim to take away a company's competitive advantage Threats may

also come from govermucnl regulation or even consumer groups.

3 MARKETING STRATEGY

Following Michael Baker [8], A marketing strategy is a process that cau allow an

organization to conccutrate its limited resources on the greatest opportunities to

increase sales and achieve a sustainable competitive advantage A marketing strategy should be centered on the key comegpl thal customer satisfaction is the main

goal

3.1 Marketing Objectives

Marketing objectives should be based on understanding company’s slrengihs and weaknesses, and the business environment you operate in They should also be

linked to company’s overall business strategy

Objectives should always be SMART:

- Specific - for cxmnple, you might set an objective of getting ten new

customers

- Measurable - whatever your objective is, you need to be able to chock

whether you have reached it or not when you review your plan

- Achievable - you must have the resources you need to achieve the objective

‘The key resources are usually people and money

- — Realistic - targets should streich you, nol demotivale you bevause they arc

unreasonable and seem to be out of reach,

- Time-bound - you should sot a deadhme for achieving Ihe objective For

example, you might aim to get ten new customers within the next 12 months

rarcly is possible to satisfy all customers by treating them alike A good market segmentation will result in segment members that are internally homogenous and extemally helerogencous, [hal is, as similar as possible wilhin the segment, and as different as possible between segments

3.22 Bases for Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer characteristics:

Geographic, Demographic, Psychographie, Behavioralistic

Geographic Segmentation

The following are some examples of geographic variables offen used in

seginentation

Region: by continenl, county, state, or even neighborhood

Size of metropolitan area: segmented according, to size of population

Population density: often classified as urban, suburban, or rural

Climate: according to weather patterns common to certain goographic

Double Income, No Kids), full-nest, emply-nest, or solitary survivor Some of these

categories have several stages, for example, full-nest I, II, or IIT depending on the age of the children

Psychographic Segmentation

Psychographic segmentation groups customers accarding to their lifestyle

Activities, interests, and opinions (AIO) surveys are one tool for measuring lifestyle Some psychographic variables include

Behavioral seginentation is based on aclual cuslomer behavior toward products

Some behavioralistic variables include:

Behavioral segmentation has the advantage of using variables that arc closcly related to the product itself it is a fairly direct starting point for market

segmentation

322, Bases for Segmentation in Industrial Markets

Tu contrast to consumers, mdustrial customers tend to be fewer im number and purchase larger quantities ‘They evaluate offerings in more detail, and the decision process usually involves more than one person These characteristics apply to organizations such as manufacturers and service providers, as well as resellers,

governments, and institutions

Many of the consumer market scginentation variables can be applied to industrial zmarkets, Industrial markets might be segmented on characteristics such as:

to value ratio, so distance from the vendor may be critical in some industries firms

tend to cluster together geqgraphically and therefore may have similar needs within

In industrial markets, pattoms of purchase behavior can be a basis for segmentation Such behavioral characteristics may include:

© Usage rite

+ Buying status: potential, first-time regular, etc

+ Purchase procedure: sealed bids, negotiations, etc

3.3 Positioning

Following Philip Kotler [14], After a company has decided which market segments

to enter, it must decide what ‘position! it wants to occupy in those segments A product's position is the place the product oceupics in consumers' minds H' a product were perceived to be exactly like another product on the market, consumers would have no reason ta buy it) Market positioning gives a product a clear, distinctive and desirable place in the minds of target consumers compared with competing products Marketers plan positions that distinguish their products from

competing brands and give them the greatest strategic advantage in their target

markets

In positioning its product, the company first identifies possible competitive

advantages upon which to build the position To gain competitive advantage, the

company must offer greater value to chosen target segments, either by charging

lower prices than competitors or by offering more benefits to justify higher prices

Llowever, if the company positions the product as offering greater value, it must deliver greater value Effective positioning begins with actually differentiating the company’s marketing offer so that it gives consumers more value than is offered by the competition

The company can position a product on only one important differentiating factor or

on several Llowever, positioning on too many factors can result in consumer oomfusion or disbelicf Once the company has choser-a desired position, il must take steps to deliver and communicate that position to target consumers

4 MARKETING - MIX

According lo Philip Koller & Gary Armstrong definition [13], marketing decisions

generally fall into the following four controllable categories:

The term "product" refers to tangible, physical products as well as services A

product as anything thal is offered to a market for allention, acquisilion, use or

consumption and that might satist'y a want or need Products include more than just

tangible goods Broadly defined products include physical objects, services, persons, places, organizations, ideas or mixes of these entities

4.1.1 Product level

When a company set a plan for it’s product, the product should be viewed in three levels

= Core product: The most basic level is the core product, which addresses the

question; What is the buyer really buying? The core product stands at the centre of the total product It consists of the problem-solving services or core benofils thal consumers seek when they buy a product Thus when desiguiry products, marketers must first define the core of benefits that the product will provide to consumers

+ Actual product: The produet plamer must next build an actual product around

the core product Actual products may have as many as five characteristics: a

quality level, features, styling, a brand name and packaging Its name, parts, styling, features, packaging and other attributes have all been combined carefully (o deliver the core benefit - a convenient, high-qualily way to capiure important moments ‘the strategy at this level involves organizations branding,

adding features and benefits to ensure that their product offers a differential

advantage from their competitors

- Augmented product: Finally, the product planner must build an augmented

prodncl around the core and actual products by offering additional consumer

services and benefits

Therefore, a produch is more than a simple sel of tangible fealures Consumers tend

to sco products as complex bundles of benefits that satisfy their needs When

developing products, marketers must first identify the care consumer needs that the

producl will satis(y, then design the acluat product and finally find ways lo augmerit

it in order to create the bundle of benefits that will best satisfy consumers

4.1.2 Product strategy

When placing a product within a market many factors and decisions have to be

taken into consideration ‘fhese include:

- Product quality:

Quality is one of the marketer's major positioning tools Quality has two

dimensions- level and consistency Tn developing a product, the marketer must lirst choose a quatity level that will support the product's position in the target market

Here, product quality stands for the ability of a product lo perform ibs functions; iL

includes the product's overall durability, reliability, precision, case of operation and

repair, and other valued attributes AHhough some of these attributes can be

measured objectively, from a marketing poinl of view, quality should be measured

in terms of buyers’ perceptions Companies rarely try to offer the highest possible quality level - few customers want or can afford the high levels of Product quality

olfered in producls Tustead, companies choose a quality level hat matches large

market necds and the quality lovels of competing products Beyond quality level, high quality can also mean consistently delivering the targeted level of quality to

c, quality moans 'abscnee of def

Many companies have tumed quality into a potent strategic weapon Strategic

quality Involves gahing an edge over competitors by consistenly offering products

and services that better sorve customers’ needs and preferences for quality As one

expert proclaims: ‘Quality is not simply a problem to be solved: it is a competitive opportunily Others suggest, however, that quality has now become a compe

necessity - only companies with the best quality will thrive

- Product feaiures:

A product can be offered with varying features A ‘stripped-down! model, one

without any extras, is the starting point The company can create more features by

adding higher-level models Features are a competitive tool for differentiating the company’s product from competitors products Being the first producer to introcuce

aneeded and valued new fealure is one of the most effective ways lo compete

Tlow can a company identify new features and decide which ones to add to its producl? The company should periodically survey buyers who have used the product and asked these questions: How do you like the product? Which specific features of the product do you like most? Which features could we add to improve the product? How muuch would you pay for cach feature? The answers provide the

company with a rich list of feature ideas, each of which should be assessed on the

basis of its customer value versus its company cost The analysis should give insight

into features that custorner’s value highly im relation to cosls, and which would truly improve the product's competitive position

- Product Design

Another way to add producl distinctiveness is through product design Some

companics have reputations for cutstanding design, some companies have

integrated design with their corporate culture So design can be one of the most powerful competitive weapons in a company's marketing arsenal

As competilion intensifies, design will offer one of the mosl potent tools for differentiating and positioning products of all kinds Good design can attract

altention, improve product performance, cul production costs and give the product a

strong competitive advantage in the target market

- Product branding

One of the most important decisions a marketing manager can make is about branding Brands have the power of instant sales; they convey a message of confidence, quality and reliability to their target market Branding has become a central issue in product strategy On the one hand, developing branded product

requires a great deal of long-term marketing investment, especially for advertising,

promotion and packaging A brand is a name, term, sign, symbol, design or a

combination of these, which is used to identify the goods or services of one seller or

group of sellers and to differentiate them [rom those of competitors Thus a brand

identifies the maker or supplier of a product

A brand can deliver up to Cour levels of meaning:

« Attributes: A brand first brings to mind certain product attributes

« Benefits: Customers do not buy attributes, they buy benefits ‘therefore, attributes must be translated into functional and emotional benefits

«Values: A brand also says something about the buyers' values

« Personality: A brand also projects a personality

42 Pricing

421 Definition

Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a tumover for the organization Pricing is difficult and must reflect supply and demand relationship Pricing a product too high or too Tow could

mean a loss of salos for the organization, Pricing should take into account the following factors

Fixed and variable costs

Competition

Company objectives

Proposed positioning strategies

Targe! group and willingness lo pay

An organization can adopt a mmber of pricing strategies The pricing strategies are based much on what objectives the company has sel itsell to achieve

422 Types of Pricing strategies

Pengtration Pricing: Here the organization sels a low price to increase sales and market share Once market share has been captured the fu may well them increase their price

Skimming Pricing: ‘The organization sets an initial high price and them slowly lowers the price to make the product available to wider market The abjective

is Lo skim profits of the market layer by layer

Competition Pricing: Setting a price in comparison with competitors Really a firm has three options and those are to price lower price the same or price higher

Product line Priving; Pricing different products within (he same product range

at different price points

Bundle Pricing: The orgenization bundles a group of produels al a reduced price Common methods are buy one and get one free promotions or BOGOF’s as they are now known

Psychological Pricing: The seller here will consider the psychology of price and the positioning of price within the market place.

Premium Pricing: The price sct is high to reflect the exclusivoness of the product

Optional Pricing: The organizations sell optional extras along with the product

to maximize ifs tumover

Cost based Pricmg: ‘he firms take into account the cost of production and distribution, they then decide on a markup with them would like for profit to

come to their final pricing decision

Cost plus Pricing: Here the firms add a percentage to costs as profit margin to

come to their final pricing decisions

4.3 Distribution

Distribution is about getting the products to the customer Distribution channels can

‘be deseribed by the number of channel levels involved Rach layer of marketing intermediaries that performs some work in bringing the product and its ownership

closer to the final buyer is a channel level Because the producer and the final consumer both perform some work, they arc part of every channel

Channel 1: called a direct-marketing channel, has no intermediary levels It consists of a manufacturer selling directly to consumers

Channel 2: contains one inlertuediary level In consumer marke , ibis level is

typically a retailer

Channel 3: contains two intermediary levels, a wholesaler and retailer This

channel is offen used by manufacturers of food, drugs, hardware and other

products

Channel 4: contains three intermediary levels

Channel 1 | Manufacturer }——— » Consumer |

Channel 3 [Manufacturer |» Wholesaler » Retailer |—of Consumer

Channel 4 [Manufacturer |—» Wholesaler |» [Jobber }-» Retailer | sf Consumer

Channel systems often cvolve to mect market opportunitics and conditions 1lowever, for maximum effectiveness, channel analysis and decision making should

be more purposeful Derigning a chanel system calls for

- Analyzing customer service needs

Like most marketing decisions, designing a channel begins with the customer

‘Marketing channels are viewed as customer value delivery systems in which each channel member adds value for the customer Thus designing the distribution

chamnel starts finding out what values consumers in various target segments want

from the channel

- Defining the channel objectives and constraints

Channel objectives should be stated in terms of the desired service level of target

customers Usually, a company can identity several segments wanting different

levels of channel service The company should decide which segments Co serve and

the best charmels to use in cach ease In cach segment, the company wants to sninimize the total channel cost of supplying customers, while also meeting their

service requirements

The company's channel objectives are also influenced by the nature of its products,

company policies, marketing intermediaries, competitors and the environment

- Identifying the major channel alternatives

Having defined its channel objectives, the firm then idenlifies its major charmcl alternatives in terms of the types and number of intermediaries to use and the

responsibilities of each channel member

- Evaluating those alternatives

The firm must evaluale each allernalive againsl ecomemic, control and adaptive

criteria

« Dconomic criteria: the company compares die likely profitability of different

channel alternatives It estimates the sales that each channel would produce

and the costs of sclling different volurnes through cach charmel

¢ Control criteria: the company must also consider control issues Using

inermediaries usually means giving them some control over the marketing of

the product, and some intermediaries take more control than others Other

things being equal, the company prefers to keep as much cantrol as possible

« Adaptive criteria: finally, the company must apply adaptive criteria Channels often involve Jong-term commitments to other finns and loss of flexibility, making it hard to adapt the channel to a changing marketing environment

4.4 Promotion

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of gonerating a positive customer response Marketing communication decisions include

- Promotional strategy (push & pull strategy): Marketing theory distinguishes

between two main kinds of promotional strategy - "push" and "pull"

« Push: A “push” promotional strategy makes use of a company's sales force and bade promotion aclivilies Lo create consumer demand for a product The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers It tries to sell directly to the consumer, bypassing other distribution channels, With this ype of strategy, consumer promotions and advertising are the most likely promotional tools

« Pull: A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product, If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers

- Advertising: Any non-personal paid form of communication using any form of

mass media (elevision, newspaper, magazine .)

- Personal selling & sales force: Selling a product service onc to one

- Sales promotions: Commonly used to obtain an increase in sales shart term

Could involve usmg money off coupons or special olfers

- Public relations & publicity: Involves developing positive relationships with

the organization mecha public ‘The art of good public relations is not only to

obtain favorable publicity within the media, but it is also involves being able

to handle successfully negative attention

- Direct mail: Direct mail allows an organization to use their resources more

effectively by allowing them io send publicity materia! to a named porson

within their target segment By personalizing advertising, response rates

inorease thus increasing the chance of improving sales Listed below are links

to organization whose business involves direct mail

- Intemet Marketing: Promoting and selling your services online

4.5 People

People are the most important element of any service or experience Services tend

to be produced and consumed at the same moment, and aspects of the customer

experience are altered to meet the ‘individual needs! of the person consuming it

Most of us can think of a situation where the personal service offered by individuals

has made or tainted a tour, vacation or restaurant meal Remember, people buy from

people thal they like, so the attitude, skills and appearance of all staf need to be first class Ilere are some ways in which people add value to an experience, as part

of the markeling mix - training, personal selling and customer service

- Training

All cuslomner facing personnel need to be trained and developed to maintain a high quality of personal service Training should begin as soon as the individual starts

working for an organivalion during an induction The induction will involve the

person in the organization's culture for the first time, as well as briefing him or her

on day-to-day policies and procedures At this very early stage the training needs of

the individual are identified A training and development plan is constructed for the individual which sets out personal goals that can be linked into future appraisals In

practice most traming is either 'oreihe-job’ or ‘olf-the-job.! Onthejob training

involves training whilst the job is being performed e.g, taining of bar staff, Off-the- job training sees learning taking place at a college, training centre or conference

facilily Altention necds to be paid (o Continuing Professional Development (CPD)

where employees see their professional learning as a lifelong process of training and

development

- Personal Selling

There are different kinds of salesperson There is the product delivery salesperson His or her main task is to deliver the product, and selling is of less importance e.g fast food, or mail The second type is the order taker, and these may be either 'imlemal' or fexternal.! The internal sales person would take an order by Ielephone, e- mail or over a counter ‘The external sales person would be working in the field In both cases little selling is done The next sort of sales person is the missionary:

Here, as with those missionaries that promote faith, the salesperson builds goodwill with customers with the longer-term aim of generating orders Again, actually closing the sale is not of great importanee at this carly stage, The forth type is the technical salesperson, 2g a technical sales engineer ‘heir in-depth knowledge supports them as they advise customers on the best purchase for their needs Finally,

there are creative sellers Crealive sdllora work to porsuade buyers to give Ihe arr

order This is tough selling, and tends to offer the biggest incentives The skill is identifying the needs of a customer and persuading them that they need to satisfy their previously unidentified necd by giving an order

~ Customer Service

‘Many products, services and experiences are supported by customer services teams Customer services provided expertise (e.g on the selection of Ciancial services), technical support(e.g offering adviec on IT and software) and coordinate the

customer interface (e.g controlling service engineers, or communicating with a salesman) he disposition and attitude of such people is vitally important to a

company The way m which a complaint is handled can mean the difference

between retaining or losimg a customer, or unproving oF ruling a company's

reputation Today, customer service can be face-to-face, over the telephone or using

live

the Tnlernct, People Iend to buy from poople that they like, and so offi

customer service is vital, Customer services can add value by offering, customers

technical support and expertise and advice

Another view is thal marketing bas a number of processes thal integrate Logether to

create an overall marketing process, for example - telemarketing and Internet

marketing can be integrated A further view is that marketing processes are used to

control the markeling mix, ic processes thal incasure the achicvernent marketing objectives All views are understandable, but not particularly customer focused

For the purposes of the marketing mix, process is an element of service that sees the customer experiencing an organization's offering I's best viewed as something, that

your customer participates in at different points in time Here are some examples to

help your build a picture of marketing process, from the customer's point of view

At each stage of the process, markets:

+ Deliver value through all elements of the marketing mix Process, physical evidence and people enhance services

+ Teedback can be taken and the mix can be altered

+ Customers are retained, and other serves or products are extended and

marked to them.

+ The process itself can be tailored to the necds of different individuals, experiencing a similar service at the same time

Processes œsscnlinlly have inpuls, throughputs and outputs (or onicomes) Marketing adds value to each of the stages Take a look at the lesson on value chain

analysis lo consider a series of processes al work

+ The building itself (such as prestigious offices or scenic headquarters)

* Mailboxes and many others

5 FENANCIAL FOREC

A firemeiat forevast is simply a financial plan or budget or your business This an estimate of two essential future financial outcomes for a business — your projected income and expenses You can then creale a cash flow forecast by adding when the income and expenses are due so that you know cxactly how much you need to make

every month for a profitable business

A financial forecast is ihe best guess of what will happen io your business

8 8

financially over a poriod of time, Usually, timaneial forecasts are an estimate of future income and expenses for a business over the next year and are used to develop the projections of profit and loss slatemenis, balance sheets and, most

critically, the cash flow forecast

Predicting the financial fulwe of your business is nol easy, especially if you are starting a business and do not have a trading history Initially, your financial forecasts will be inexact and inaccurate However frequent forecasting with adjuslmanis as required will promole more accurate Lor

ting,

6 IMPLEMENTATION

Also following to Philip Kotler [13], marketing implementation is the process that

turns marketing strategies and plants into marketing actions to accomplish strategic

marketing objectives Implementation involves day-to-day, month-to-month activities that effectively put the marketing in to work Whereas marketing planning addresses the what and why of marketing activities, implementation addresses the who, where, when and how

Successful implementation depends on several key elements

Firsl, if requires au action program that pulls all the people and activilies Logether

Marketing strategies become specific action programs that answer the following

questions: Whal will be done? When will it be done? Who is responsible for doing

it? How much will it cost? For cxample, the manager may want to inorcase sales

promotion as a key strategy for winning market share A sales promotion action

plan should outline spoeial offers and their dates, ade shows crtered, new poinl-ol- purchase displays and other promotions ‘he action plan shows when activities will

start, be reviewed and be completed

Sccond, the company's formal organization structure plays an important role in

implementing marketing strategy

Another factor affecting successful implementation is the company's decision-and-

reward systems - formal and mformal operating procedures that guide planning,

Dudgeting, compensation and other activitics For example, if a company compensates managers for short-run results, they will have little incentive to work towards long-run objectives Companies recognizing this arc broadening their incentive systems to include more than sales volune

Fifective implementation also requires careful plaming At all levels, the company must fill its stucture and systems with people who have the necessary skills, motivation and personal characteristics In recent years, more and mare companies have recognized thal long-run hunwm resources plannitys can give the company a

strong competitive advantage

Finally, for s

ssful implementation, the firm's markeling stralegies must 1 with

its culture Company culture is a system of values and beliefs shared by people in an

organization It is the company's collective identity and meaning The culture

informally guides the behavior of people al all company levels Marketing strategies that do not fit the company's style and culture will be diffioult to

implement Because managerial style and culture are so hard to change, companies

usually design stralegics (hal (il their current cultures rather than trying lo change

their styles and cultures to fit new strategies."

Thus, successful markeling implementation depends on how well the company blends the five elements - action programs, organization structure, decision-and-

reward systems, fuman resources and company culture - into a cohesive program

chat supports ils stralegies

L

CHAPTER 2 CURRENT MARKETING ACTIVITIES FOR VIETTEL CERTIFICATE

AUTHORITY (VIETTEL-CA) SERVICE

AN OVERVIEW OF VIETTEL GROUP

Viettel Group established under decision 2097/2009/QB-1T¢ signed on December

14, 2009 by the Government Prime Minister is a tutional delonse economics enterprise with 100 % state-owned capital Viettel Group has many sectors in business include: Providing telecommunications services, Transmission, Post; Distributing Dala terminal equipment; Financial investment, Communication; Real

state Investment; Import and Export; Foreign Lavestment

1 History

- In 1989: Llectronic communication Equipment Company, the predecessor of

the Vieitel Group was established

- In 1995: Electronic communication Equipment Company renamed to Viettel

Corporation, recogrized as (he second telecommurtications in Vietnart and got

the operation license

- In 2000: Viettel got the license to provide testing long-distance telephone

service which use VoIP techrique rout, Hanoi — Ho Chi Minh with 178 brands and got the success That was the first time in Victnam, one more

telecommunication-services company has the opportunity to be selected

- In 2001: Viettel began offering international VOIP service

- In 2002: Viettel began providing Intemet access service

- In 2003: Implementation of investment policies on basic telecommunication

services, Viettel installed operator to bring fixed line telephone services

(PSTN) aio the business market Vital also made fixed line telephone universal to all regions in the country with the increasing quality of services

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In 2004: Determining that mobile phone services would be the basic telecommunication services, Viettel used all resources to construct the

network and launch the service on 15/10/2004 with brand 098 As the

appearance of mobile phone 098 brand in the market, Viettel again made a huge reputation by service lower of costs, improve the quality of customer

care, and make the farmess of the mobile information market im Vietnam Tt

was voted as one of 10 information technology and communication events in

2004, and continues from the following year to now Viettel, was always

evaluated as the subscriber growth mobile network and the faslesl nelwork,

and got the attention and support of customer with the bold policies and

business strategies

In 2008: Prime Minister Phan Van Khai signed a decision to establish Viettel

Group on 02/3/2005 and Bureau of Mimstry of Defense had 45/2005/BRQP

/2005 about the establishing of Viettel Group Vital also

started providing virtual network services

decision on 06;

In 2006: Viettel expanded the services to Lacs and Cambodia

In 2007: Viettel Telecom (belang to Viettel Corporation) was established as

the multi-service company in Lelecommunication markel on the merged of

companies: Internet Viettel, Mixed line telephone Viettel and Mobile phone

Vital Corporation’s revenue reached 1 billion USD in 2007

In 2008: After only one year, Corporation’s revenue was double (2 billion USD) At the same time, Viellel Corporation was ranked as 100 Iargest telecommunication brands in the world Viettel also became the number one in

Cambodia market about telecommunication infrastructure

In 2009: Viettel Group established under decision 2097/2009/QD-TTp signed

on December 14, 2009 by the Govermment Prime Minisicr is a nationat defense economics enterprise with 100 % state-owned capital and the

Authorized capital was 50.000 billion VND

31

In 2010: Viettel started investing in Haiti At the same year, Mozambique

Government granted a license to provide mobile telecommunication services

for Movitel — the subsidiary of this corporation Viettel competed with 22 companies in the bidding to become the third mobile supplier in Mozambique

In 2011: On 27/1/2011, Developed Private Investment Agency of Peru

announced that Viettel Group of Vietnam won in the bidding to get the fourth

licenses of telecommunication in Peru

The growth chart

Figure 2.1 Revenue of Viettel Company in period from 2000 to 2010

Figure 2.2 Profit of Viettel Company in period from 2000 to 2010

Sroups and h

mảphmlb§ sanhg Ministries sales tarparatlon§

dlapartment sales department depirevat đhpxtmAn department l

- Viettel Telecom: is the subsidiary of Viettel Group, in charge of providing

telecom and information technology services The structure of Viettel Telecom

includes 6 departments, 5 centers and 1 steering unil which monitor branches

> Company departments:

> Regional steering unit: is the Unit which monitors 64 branches in selling

services’ products

® Products strategy center: is the Unit which monitors all Viettel Telecom's

services, and is in charge of setting up policies, business strategies and

targets

> Content development center: is the Unit which produces and sell the content

services such as: program production, phone number leasing,

> VAS center: is the

which produces and sells value added services on

the mobile phone platform

34