Luận văn research and recommendations about marketing comunication of securities companies in vietnam

Summary about Vietnam securities market and securities companies 2.2, Research ont communication lols used by securities companics ... B-Marketing 2.3, Survey on efficiency of marketing

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Nguyen Xuan Quynh

RESEARCH AND RECOMMENDATIONS ABOUT MARKETING COMUNICATION OF SECURITIES

COMPANIES IN VIET NAM

MASTER OF BUSINESS ADMINISTRATION THESIS

Hanoi - 2007

Nguyen Xuan Quynh

RESEARCH AND RECOMMENDATIONS ABOUT MARKETING COMUNICATION OF SECURITIES

COMPANIES IN VIET NAM

Major: Business Administration

Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

SUPERVISOR: DR CLIU T1LANIT

Hanoi - 2007

TABLE OF CONTENT ACKNOWLEDGEMENTS

1.1, General about Marketing, Communications

1.2, Setting Marketing Communication Strategy for Service Firms

1.2.1, Define the Target Audience and Objectives

1.2.2 Divide the Communications Objectives and Targel Audiences among

the Channels

1.2.3 Define Communications Messages

1.2.4 Put the Communications Mix Togotlor

3 Marketing Communication Tools

1.3.1 Advertising

1.3.2, Public Relations ceeccseessesssessuiineeseeessseeevensee

1.3.3 Personal Selling .cccccsssscsusssessessssssseesesssasetnssnsnstiae vase

2.1 Summary about Vietnam securities market and securities companies

2.2, Research ont communication lols used by securities companics

3,1,1 Publie relafiONS cọ neo nai

2.1.4 Bales Promotion, wsssssssnseeictenvtnsenessenseet

2.1.5 Direct Marketing

2.1.6 B-Marketing

2.3, Survey on efficiency of marketing communication from securities companies

and customers behaviour

3.1, Define the target audience and objectives of communication

3.1.1 DeGne the target audience of communication slralegy

3.1.2 Define the communication objectives 0 eee

3.2, Divide the target audience and objectives of communication among the

channels

3.3 Define comimunication messaees 5c

3.4 Pụt communication mix together

APPENDIX: Questionnaires for ‘Thang Long Securities JSC

2007

LIST OF FIGURES

Figure 1-1: The Communication Process

Figure 1-2; The tools of the marketing communication mikx

Figure 1-3: Marketing Communication Strategy for Service Firms

Figure 2-1: Percentage of Accounts Opened at Securities Companies

Figure 2-2: One article about SSI when it fust listed on HASTC 00

Figure 2-3: $Si with the event of being listed on HOSL

Figure 2-4: Announcement about the establishment of STB Securities

: Bien Viet Securities with CBV-Index

Figure 2

Figure 2-7: SSI and its CRO Tran Duy Hung

Tigue 2-8: CEO oÍ VndirecL— Ms Phạm: Minh Huong

Tigure 2-9: 'Chưng khoan cuoi tuạn” on VTV1

Figure 2-10: INFOTV

Figure 2-11; Viet Dragon Securities Corp holds training course for customers

Figure 2-12: Advertising of Qcean Securities on InfoTV

Figure 2-13: Advertising of Thang Lang Scourities ov Tnveatmenl Review

Figure 2-14; image of brokers

Figure 2-15: Promotion of Viet Tin Securities Company

Figure 2-1 6: hitp:/Awww bse.com.vn

2007

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INTRODUCTION

1 The Problem

Recently, after the booming from the end of 2006 and beginning of 2007, Vietnam

stock market has had downward adjustment The investors don't rush to the trading

floors like they did before Seourities companies, especially new-born companies

are facing a lot of trouble in attracting customers They really need effective

markeling communication fools to conmmumicate more with customers, undersland

and find the way to attract and maintam them Therefore, this research was

conducted to give out recommendations about market cammunication for securities

compartics to help (hers communicate more

ectively with customers

2 Objectives and aims

Objectives:

Sludy aboul marketing communication Know how securities companies are communicating with customers and

the effectiveness of these activities

- Know how customers gct communication messages from sccuritics

companies

- Know media tools and other communication tools which are being used

by customers to search information about stock market

- Give recommendations about marketing communication for securities

companies

Aims: Help securities companies build up comprehensive marketing siralogies

3 Research Questions

- Which communication tools are use by securities conspanies im Vietnam

- How ctfective are these tools?

- How do customers aware of the communication of securities companies

- By which way do customers find information about stock markel?

- Which media platform do customers prefer and use most?

4 Scope of work

2007

Research on the communication with individual customers only, not including institutional investors

— Security market in Vietnam in 2005 — 2007

Survey mainly in llanoi

5 Data source & Processing

— Primary data: questionnaires

— Secondary data: newspapers, websites

— Processing: to use MS Excel

‘Theory: understand about marketing communication

— Practice: recommendation for securities coupanics lo communicate more

effectively with customers

8 Limitation:

~ Time 2005 — 2007

- Survey mainly in Hanoi

- Survey only with individual investors

2007

CHAPTER 1 THEORY FOUNDATION ABOUT

MARKETING COMMUNICATIONS

1.1 General about Marketing Communications

Communications is the process of conveying a message to others and require six

elements: a source, a message, a channel of communication, a receiver and the

processes of encoding and decoding The source may be a company or person who

has information to convey The information sent by a source, such as a description

of a new service, forms the message The message is conveyed by means of a

channel of communication such as a sales person, advertising media, or public

relations tools Clients who read, hear, or see the message are the receivers

Figure 1-1: The Communication Process

‘The Communications Process

~“

Source: Managing Service Marketing, John E.G Baterson, K Douglas Hofjiuan

Marketing communications are all the communications between the organization

and all other parties, especially with customers Part of the wider academic research

area of marketing, it encompasses all the traditional forms of promotion including

advertising, sales promotion, personal selling, publicity, public relations, direct

marketing and e-marketing But it aims to be broader than this It includes all points

of contact between the organization and other parties

The Marketing Communications Mix is the specific mix of advertising, personal

selling, sales promotion, public relations, and direct marketing a company uses to

pursue its marketing objectives

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Figure 1-2: The tools of the marketing communication mix

Marketing

Communicati

Miy

1.2 Setting Marketing Communication Strategy for Service Firms

The setting of a communications strategy follows a common pattern in irresponsive

of whether the firm is producing a goods or services The first is to define a target

audience and clear objectives for the complete communication mix The main

elements of the communication mix include advertising, public relations, personal

selling, sales promotion and direct marketing Only personal selling is normally a

two-way process The remainders are one-way communication, from the marketer

to the customer only With services, however, the service providers at the point of

communication can also have an important two-way communication role

Figure 1-3: Marketing Communication Strategy for Service Firms

2007

Source: Managing Service Marketing, John E.G, Baterson, K Douglas Hoffinan

1.2.1 Define the Target Audience and Objectives

Defining the target audience

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‘rhe target audience should flow from the overall marketing plan and from a sound understanding of consumer behavior The target audience for the service needs to

be decided early in the process of the whole services formula may become

malformed, Define the target customer for the service is thus the foundation of the

service formula Unlike goods, however, the target audience has to be much more

precisely targeted

Setting comniunication objectives for services

The preconsumption choice phase

‘rhe objectives must to be ensuring that company’s servive is the one perceived to

be the least nsky allernative Communications could be used to try to influence the

choice process in the following ways:

® To ensure that the fr’s service offering is im the evoked sel

® To aller the weights allached to different attributes by consumers lo favor

those on which the company is strong

® To alter the score on a given attribute for the company, parbicularly Wf there

is gap between performance and consumers’ perceptions

« To alter the score on a given attribute given to a competitor, again

particularly if there is a gap between performance and consumers’

perceptions

If the company is not in the evoked set, to build enough awareness of the

offering 10 arouse inclusion

The consumption phase

During this phase, the services consumer is a more or less active participant in the

produc

mM process Tt is mnporlant thal consumers perform that production role

successfully From the firm’s point of view, successful performance will improve

the efficiency of the operation and the satisfaction of other customers From the

consumers’ point of view, successful performance will ensure a high level of

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perceived control and, in all probability, a high level of satisfaction in the

postconsumption phase

‘therefore, communication in this phase can be used to ensure successful performance by giving the consumer a clear script The nature of this script

depends on the nature of the service operation,

The postconsumption evaluation phase

Consumer expectations come [rom a number of sourees, some wilhin the control of the services firm and some outside its control Expectations arise either from

previous experience with the firm and/or ils competitors or from some form of

communication The objective for this phase is to attompt to match customers’

expectation to the performance characteristics of the servuction system

1.2.2 Divide the Communications Objectives and Target Audiences

among the Channels

Once the overall objectives and target audiences for the whole communication mix

are set, it is necessary to divide the tasks among advertising, selling, public

relations, and point-of-sale messages This is a process of matching the tasks Lo the

capabilities of the different communications channels and to the ways consumers

uses those channels and the different objectives

One way of assigning tasks across the array of communication channels is to

consider the degree to which the message can be targeted at specific audiences

Media advertising itself varies along this dimension 'I'V advertising can reach very

board audiences but it is not very selective except in the variation in audience

across channels by time of day Nation print media such as newspapers and

magavines offer more selective focus, as they themselves tend to be targeted al

more specific segments of consumers

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Trade magazines are even more specific in their readership Direct mail offers the

most focused of the impersonal media, The choice among these media must be able

to make based on the cost per thousand members of the target audience and the risk

and cost of reaching the wrang segment

1.2.3 Define Communications Messages

Key differences in

formation usage between gouds and services

In order to create communications messages for a service, it's necessary to

understand key differences in information usage between goods and services These

differences are crucial to understanding how divide the communications objectives,

target audiences, and budget between the different channels

Consumers of services are less likely lo purchase without information (han Chose

buymmg goods This relates to the increased perceived risk associated with services

and the need for consumer to reduce that risk by collecting information before

purchasing

Consumer of services will prefer personal over impersonal sources of information

Because services are experimental, it is extremely difficult to describe or specify

the “product” before purchase T.might be possible to use TV advertising to convey

the experience, but it is clear that consumers prefer to obtain their information from

individuals who have experienced the services directly or indirectly

Liven among personal services, the high level of risk inherent in the process mean

that customers will give greater credibility to independent sources of information

rather than those peresived to be controlled by the fim All this implies that mass

advertising communication from comparable individuals is far more likely than

mass advertising lo be used by consumers as a source of information

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However, it is possible to use advertising and other forms of promotion to leverage

word-of-mouth communication Such as an approach might imply using advertising

and promotional Lools lo persuade salisfied customers lo tell other consumers

Word-of-mouth communication can be used directly in media advertising, in the

form of testimonials from satisfied customers

Consumer information sources can be classified broadly into mlernal and external

sources, Both types can be used to help consumers cope with perceived risk

Tnternal sources are fundamentally linked to memory scan

Define Communication Messages

These guidelines have developed based on the key differences in information usage

between goods and services and features of services including: intangibility,

inseparability, heterogeneity, and perishability inherent in services products

Promise what is possible

In its most basic form, customer satisfaction is developed by customers” comparing

their expectations to their perception of the actual service delivery process In times

of increasing competitive pressures, firms may be tempted to overpromise Making

promises the firm cannot keep initially increases customer expectations and then

subsequently lowers cuslomer satisfaction as those promises are nol met Two

problems are associated with overpromissing lirst, customers have disappointed

and a significant loss of trust then occurs between the firm and its customers The

second problem dircelly alTeels the service firm's employees

Tangibilize the Intangible

In tangibilizing the intangible, the scale of market entities, which reflects the degree

of tangibility among products, should be Inmed on its ends, The advertising of

tangible-dominant products tends to make them more abstract to differentiate them

from one another In contrast, the adverlising of intangible-dominant products

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should concentrate on making them more concrete through the use of physical cues

and tangible evidence

Feature the working relationship between customer and provider

Service delivery is an interactive process between provider and customer, and it is

therefore appropriate that the Gim’s advertising should feature, for example, a

customer and a company representative working together to achieve a desired

outcome The advertising of services, in particular, must concentrate not only on

enconraging customers Lo buy but also on encouraging employees te perform

Reduce consumer fears about variations in performance

The fum’s advertising can also minimize the pitfalls of hetcrogencity in the

customer’s mind ‘fo enbance the perception of consistent quality, the finn’s

advertising should provide some sorts of documentation that reassures the

customers

Determine and focus on relevant service quality dimensions

‘the reasons customers choose among competing services are often closely related

to the five dimensions of service quality: reliability, responsiveness, assurance,

empathy and the quality of the tangibles associated with the services However,

some features are commonly are more important to customers than others; therefore

the company should mare focus on them

1.2.4, Put the Communications Mix Together

If the objective is to reach nonusers of the seivice at the preconsumption phase,

then the choice of communication channels is limited Media advertising can be

used either directly or as way to harness or create word-of-mouth communication in

the market plaoe If the number of largel customers is limited, it might be possible

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to use other means such as personal sales force or direct marketing, ‘Ihe decision

would depend on the cost-effectiveness of the different channels and the

complexity of the message to be conveyed

By the time consumers reach the consumption and postconsumption phases they

are already part of the servuclion process On a cosv/audicnce member basis, il

would seem more logical to use the point-of-sale environment or the service

provider to handle the communication

1.3 Marketing Communication Tools

1.3.1 Advertising,

13.2 Concept of Adverting

Advertising is any paid form of nanpersonal communication about an organization,

good, service, or idea by am identified sponsor The paid aspect of this definilion is

important because the space for the advertising message nonnally must be bought

Advertising involves mass media (such as TV, radio, and magazines), which are

noupersonal aud do nol have an inunediate feedback loop as dovs personal selling

There are several advantages to a firm using advertising in its communication mix

It can be attention-getting and also communicate specific product/service benefits

to prospective buyers By paying for the advertising space, a company can control

what if wants to say and, to some extend, to whom the message is sent Advertising

also allows the company lo decide when to send ils message The nonpersonal

aspect of advertising also has its advantages Once the message is created, the same

message is sent to all receivers in a market segment Tf the message is properly

prclosiod, Ihe company can trust that that Une same mossage will be decoded by all

receives in the market segment

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Advertising has some disadvantages, the costs to produce and place a message are

significant, and the lack of direct feedback makes it difficult to know how well the

message was received

1.3.1.2 Types of advertivements

2) Product advertisements

Focus on selling a good or service, product adverlisements take (hree forms: (1)

pioncering (or informational), (2) competitive (or persuasive) and (3) reminder

‘Used the introductory stage of the life cycle, pioneering advertisements tell people

what a product is, what it can do, and where it can be found The key objective of a

pioneering ad is to inform the target market Informative ads have been found to be

interesting convincing, and effective

Advertising that promotes a specific brands’ features and benefits is competitive

The objective of this message is Lo persuade the largel market Lo select the firm's

brand rather than that of competitors An increasingly common form of competitive

advertising is comparative advertising, which shows one brand's strengths relative

to these of competitors Finns thal use comparalive advertising need market

research and test results to provide legal support for their claims

Reminder advertising is used to reinforce previous knowledge of a product

Reminder advertising is good [or products thal have achieved a well-recognived position and are in the mature phase of their product life cycle Another type of

reminder ad, reinforcement, is used to assure current users they made the right

advertising is used to support the public relations plan or counter adverse publicity

Four alternative forms of institutional advertisements are often used:

« Advocacy advertisement states the position of a company on an issue

* Pioneering institutional advertisements, like the pioneering ads for products

discussed earlier, are used for announcement about what a company is, what

il can do, or where it is localed

* Competitive inslilutional advertisements promote Ihe advanlages of one

product class over another and arc used in the market where different

product classes compete for the same buyers

© Reminder institutional advertisements, like the product form, simply bring

the company’s name to the aitention of the target market again

L213 Develop the advertising program

Because media costs arc ligh, advertising decisions must be made carefully, using

a systematic approach ‘he advertising decision process is divided into (1)

developing, (2) executing, and (3) evaluating the advertising program

Development of the advertising program focuses on the four Ws

©) Who is the target audience?

* What are (1) the advertising objectives, (2) the amounts of money that can

be budgeted for the advertising program, and (3) the kinds of copy to use?

« Where the adverlisements should be run?

@ When should the advertisements be run?

4) Identifying the Target Audience

The first decision in developing the advertising program is identifying the target

audience, the group of prospective buyers toward which an advertising program is

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directed ‘lo the extent that time and money permit, the target audience for the advertising, program is the target market for the firm’s product, which is identified

from markeling research and markel segmentation studies The more a firm knows

about its target audience’s profile including their lifestyles, attitudes, and values

the easier it is to develop an advertising program

b) Specific Advertising Objectives

After the target audience is identified, a decision must be reached on what that

advertising should accomplish Consumers can be said lo respond in forms af a

hierarchy effects, which is the sequence of stages a prospective buyer goes through

from initial awareness of a product to eventual action

Awareness: the consumer’s ability to recognize and remember the product or brand name

Tacrease: an increase im the consumer’s desire Lo lear about seme of the [calures

of the product or brand

Evaluation: the consumer’s appraisal of the product or brand on important

attributes

Trial: the consumer's actual first purchase and use of the product or brand

Adoption: through a favorable experience on the first trial, the consumer's repeated

purchase and use of the product or brand

For a totally new product the sequence applies to the entire product category, but

for anew brand eompeling in an established producl category il applies to the brand

itself ‘These steps can serve as guidelines for developing advertising objectives

o} Setting the Advertising Budget

After setting the advertismg, a company must decide on how much to spend

Telermining the ideal amount for the budget is difficult because there is uo precise

way to measure the exact results of advertising

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4) Designing the Advertisements

The central element of an advertising program is the ad itself Advertising

messages consists of advertising copy and the artwork that the target audience 1s

intended to see (as in magazines, newspaper and TV) or hear (as on radio, TV) The

message usually focuses on the key benefits of the produel thai are imperlant lo a

prospective buyer in making trial and adoption decisions

Message content

Most advertising messages are made up of bolh informational and persuasional

elements ‘These two elements, in fact, are so intertwined that it is sometimes

difficull Lell them apart For example, basic information contained in many

advertisoments such as the product namic, benefits, features, and price are presented

in the way that tries to attract attention and encourage purchase On the other hand,

even the mast persuasive adverlisemems have Lo comain ai leash some basic

information to be successful

Create the actual message

‘the creative people in an advertising agency have responsibility to tum appeals and

features such as quality, style, dependability, economy, and service into attention

gelling, believable advertisements

e} Selecting the Right Media

very advertiser must decide where to place ifs advertisements The allornalives are

the advertising, media, the means by which the message is communicated to the

audience Newspapers, magazines, radio, and TV are examples of advertising

media, This media selection devision is related to the target audience, type of

product, nature of the message, campaign objectives, available budget, and the

costs of the allernalive media

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Television

Television is a valuable medium because it communicates with sight, sound and

motion Besides the network television is biggest network thal can reach the most

audience Llowever, television's major disadvantage is cost

Radia

The major advantage of radio is that it is a segmented medium Tach station will

lead to different segment of audience The disadvantage of radio is that it has

limited use for produets that must be seen Another problem is the case with which

consumers can tune out a commercial by switching stations Radio is medium that

compeles for people’s allenGor as the do other activities such as driving, working,

or relaxing

Magazines

Magazines are becoming a very specialized medium because there are more and

more magazines launched ‘The advantage of this medium is the great umber of

special-interest publications that appear to narrowly defined segments Each

mag:

Zine’s readers offen represent a unique profile In addition to the distinct

audience profiles of magazines, good color production is an advantage that allows

magazines to create strong images

Newspapers

Newspapers are an important local medium with excellent reach potential Because

of the daily publication of most papers, they allow advertisements 10 focus on

specific current events, such as a “24-how sale” Local retailers often use

newspapers as their sole advertising medium

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‘two trends are influencing newspapers today ‘Ihe first is a dramatical increase in

their cost of paper In response, many newspapers have attempted to cut cost

through hiring freezes, while olhers have raised prices The second trend is the rush

to deliver on-line newspapers

Outdoor

A very effective medium for reminding consumers about your product is outdoor

advertising The most common form of outdoor advertising, called billboards, often resulls in good reach and frequency and has beon shown to inerease purchase rales

‘A disadvantage to billboard is that no opportunity exists for lengthy advertising

copy

13.14, Executing the Advertising Program

4) Presetting the Advertising

To determine whether the advertisement communicates the intended mes

we oT Lo

select among altemative versions of the adveitiscments, protests are conducted

before the advertisements are placed in the medium

b) Carrying out the Advertising Program

The responsibility for actually carrying out the advertising program can be handles

in one of three ways The {ull-service ageney provides the most complete range of services, including market research, media selection, copy development, artwork and production Limited-service agencies specialize in one aspect of the advertising

process, Finally, in-house agencies made up of the company’s own advertising staff may provide full services or a limited range of services,

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1.3.1.5 Evaluating the Advertising Program

The advertising decision process does not stop with executing the advertising

program The advertisements must be posttested to determine whether they are

achieving their intended objectives, and results may indicate that changes must be

made in the advertising program

a) Protesting the Advertising

‘There five approaches common in posttesting, including:

Aided recall (recognition-readership), After being shown an ad, respondents are

asked whether their previous exposure to it was through reading, viewing, or

listening

Unaided recail: A question such as, “what advertisements do you remember seeing

yesterday?” is asked of respondents without prompling to determine whether they

saw or heard advertising messages

Attitude tests Respondent are asked questions to measure changes in their

attitudes after an advertising campaign, such as whether they have amore favorable

attitude toward the product advertised

Inquiry tests Additional product information, product samples, or premiums are

offered to an advertisement’s readers or viewers Advertisements generating the

most inquiries arc presumed to be the most cifeetive

Sales test: Sales tests involve studies such as controlled experiments (eg., using

radio advertisements in one market and newspaper advertisements int another and

comparing the results) and consumer purchase tests (measuring retail sales that

result from a given advertising campaign)

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bì Making Needed Changes

Results of posttesting the advertising copy are used to reach decisions about

changes im the advertising program TỈ the posllest results show thal an

advertisement is doing poorly in terms of awareness or cost efficiency, it may be

dropped and other advertisements run in its place in the future On the other hand,

somelimes and advertiscment may be se successful, it is run repeatedly or used as

the basis of a larger advertising program,

1.3.2 Public Relations

Public relations is form of communication management that seeks to influence the

feclings, opinions, or belicts held by customers, prospective customers, stock holders, suppliers, employees and other publics about a company and its products

or services,

Many tools such special events, lobbying efforts, annual reports, and image

management may be used by a public relation department, allhiough publicity often

plays the most important role

Publicity is a nonpersomal, indireclly paid presentation af an organization, good or

service It can take the form of a news story editorial, or product announcement A difference between publicity and both advertising and personal selling is the

“mdirectly paid” dimension With publicity a company does not pay for space in a

mass medium (such as television or radio) but attempts to get the medium to run a

favorable story on the company In this sense, there is an direct payment for

publicity in Ural a compeny must support a public relations staff

An advantage of publicily is credibilily When you read a favorable story about a

company’s product, there is a tendency to belicve it, The disadvantage of publicity relate to the lack of the user’s control over it A company can invite a news team to

2007

preview its innovative exercise equipment and hope for a favorable mention on the

hot-time newscasts But without buying advertising time, there is no guarantee of

any mention of the new equipment or that will be aired when the target audience is

watching With publicity there is a little control over what is said, to whom, or

when

Public relations efforts may utilize a variety of tools and may be directed at many

distinct audiences While public relations personnel usually focus on

commumicating positive aspects of the business, they may also be called on to

minimize the negative impact of a problem or crisis

Publ

Ly Tools

In developing a public relations campaign, several methods of obtaining

nonpersonal presenialion of an organization, good, er service without direc! cost —

publicity tools are available to the public relations director, Many companies

frequently use the news release, consisting of an announcement regarding changes

in the company or the product line The objective of a news release is to inform a

newspaper, radio station, or other medium of an idea for a story A recent study

found that more than 10 percent of all free mentions of a brand name occur during

news programs

‘A second common publicity tools is the news conference Representatives of the

media ure all invited lo an informational mecling, and advance materials regarding

the content are sent This tool is often used when negative publicity requires a

company response

Finally, today many high-visibility individuals are used as publicity tools to create

visilility for their compames, their products, and themselves These publicity

efforts are coordinated with news releases, conferences, advertising, donations to

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charities, volunteer activities, endorsements, and any other activities that may have

an impact on public perceptions

1.3.3 Personal Sclling

Personal selling involves Iwo-way flow ef communication between a buyer and

seller, often ina face-to-face encounter, designed to influence a person’s or group's

purchase decision However, with advance in telecommunication, personal selling

also takes place over the Iclephione, through video (clevonferencing and interactive

computer links between buyers and sellers

1331 Types of personal selling

‘there are three types of personal selling: order taking, order getting, and sales

support activities

Order Taking

An order taker processes routine orders or reorders for products that were already

sold by the company The primary responsibility of order takers is lo preserve an

ongoing relationship with existing customers and maintain sales

Order Getting

An order getter sells in a conventional sense and identifies prospective customers,

provides customers wilh information, persuades customers to buy, closes sales and

follows up on customers’ use of a product or service

Sales Support Personnel

Sales support personne! augment the selling effort of order getters by performing a

variety of services Tor example, missionary salespeople do not directly solicit

orders but rather concentrate on performing promotional activities and introducing

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new products A sales engineer is a salesperson who specializes in identifying,

analyzing, and solving customer problems but often does not actually sell products

and services,

13.32 The Personal Selling Process

The personal selling process consisis of six stages: (1) prospecting, (2)

preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up

Prospecting is the search for and qualification of potential customers If an

individual wants the produet, can afford to buy it, and is the decision maker, this

individual is a qualified prospect

Preapprouch

Once a salesperson has identified a qualified prospect, preparation for the sale

begins with the preapproach The preapproach stage involves oblaining Surlher

information on the prospect and deciding on the best method of approach Knowing

how the prospect prefers to be approached, and what the prospect is looking for ina

product or servic

ls cssenttial regardless of cullural setting

Approach

The approach slage involves Ihe initial mecting between the sales persem and the

prospect, where the objectives are to gain the prospect's attention, stinvulate interest

and build the foundation for the sales presentation itself and the basis for a working

relationship The first impression is critical at this stage, and it is common for the

sales people to begin the conversation with a reference to common acquaintances, a

referral, or even the product or service its self

Presentation

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‘the presentation is at the core of the order-getting selling process, and its objective

is ta convert prospect into a customer by creating a desire for the product or

service Three major presentation formal exit: (1) stimulus-persou format, (2)

formula selling format, (3) need-satisfaction format

Stimulus-response presentation format assumes that given the appropriate stimulus

by a salesperson, the prospect will buy With the formal, the sales person tries one

appeal after another

Formula selling format

‘A more formalized presentation, the formula selling presentation format, is based

on the view thal a presentation cousists of iwformalion that must be provided in an

accurate, thorough, and step-by-step manner to inform the prospect A popular

version of this format is the canned sales presentation, which is a memorized,

standardized m

age conveyed to every prospect

Necd-satisfaction format

The stimulus-response and formula selling formats share a common characteristic:

the salesperson dorminates the conversation By comparison, the need-satisfaction

presentation format emphasized probing, and listening by the salesperson to identify

needs anc] interests of prospective buyers

Close

The close slage in the selling process involves obtaining a purchase commitment

from the prospect This stage is the most important and the most difficult because

the salesperson must determine when the prospect is ready to buy

Follow-up

The selling process does uot end with the closing of a sale; rather, professional

selling requires customer follow-up The follow-up stage includes making, ccrtain

2007

the customer’s purchase has been properly delivered and installed and difficulties

experienced with the use of the item are addressed Attention to this stage of the

Sales promotion is a supplemental ingredient of communication marketing and it

not as advertising but also high effective

13.4.1 Consumer-Oriented Sales Promotions

Directed to ultimate consumers, consumer-oriented sales promotions, or simply

consumer promotions, are sales tools used to support a company’s advertising and

personal selling The alternative consumer-oriented sales promotion tools melude

coupons, deals, premiums, contests, sweepstakes, samples, contuuity programs,

point-of-purchase displays, rebates, and product placement

Coupons

Coupons are sales promotions that usually offer a discounted price to the consumer,

which encourages trial

Deals

Deals are short-icrm price reductions, commonly used to invrease trial among

potential customers or to retaliate agaist competitors’ actions

Premiums

A promotional tcl often used with consumers is the promium, which consists of merchandise offered free or at a significant savings over retail his latter type of premium is called self-liquidating because the cost charged to the consumer covers

the cost of the item

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Contests

Contest is where consumers apply their analytical or crealive thinking to try to win

a prize

Sweepstakes

These sales promotions require participants to submit some kind of entry form but

are purcly games of chance requiring uo analylical creative offort by the

consumers

Samples

Another common consumer sales promotion is sampling, which is offering the

product free or al a greatly reduced price Often used for new producls, services,

that is smaller than the regular package size If the consumers like the sample, it is

hoped they will remember and buy the product

Continuity programs

Continuity programs are a sales promotion tool used to encourage and reward

repeal purchases by acknowledging each purchase accumulate

Rebate

Another consumer sales promotion, the cash rebate, offers the retum of money

based on proof of purchase

Product placement

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‘rhe final consumer promotion, product placement, involves the use of a brand- name product in a movie, television show, video, or commercial for another

product

1.3.4.2 Trade-Oriented Sales Promotion

‘Trade-oriented sales promotion, or simply trade promotion, are sales tools used to

supporl a company’s advertising and personal selling direcled to whole sellers,

retailers, or distributors Some of the sales promotion just reviewed are used for this

purpose, but there are other common approaches targeted uniquely to these

intermediaries: (1) allowances and discounts, (2) cooperative advertising, (3)

training of distributors’ sales force

1.3.3 Direct Marketing

Direct marketing is a sub-discipline and type of marketmg There are two main

definitional characteristics which distinguish it from other types of marketing The

first is that it atlempis to send ils messages dircelly to consumers, wilhout the use of

intervening media ‘This involves unsolicited commercial communication with consumers or businesses The second characteristic is that it is focused on driving

purchases that can be attribuled to a specific "call-to-action." This aspect of direct

marketing involves an emphasis on trackable, measurable results regardless of

medium

The most common form of direct marketing is direct mail, where the marketers use

a reduced "bulk mail’ postal rate to send paper mail to all postal customers in an area or all customers whose addresses have been taken Jom a list

Tarect mail allows the greafest degree of audience selectivily Direct-mail

companies can provide advertisers with a mailing list of their targct market Direct

mail has an advantage in providing complete product information, compared with

2007

that provided in 15-second, 30-second television or radio spots Mass media are

used to create awareness, while direct mail builds a relationship and facilitates a

purchase One disadvardage of direct mail is that ristag postal cosls are making i

more expensive ‘'he major limitation is that people often view direct mail as junk,

and the challenge is to get them to apen a letter Databases, which help marketers

send (hem targel market only mail that 1s relevant lo them, are improving

consumers’ response to advertising they receive in the mail

The second most common form of direct marketing is tclemarkeling, where

marketers call selected (or random) telephone numbers mail Marketing,

incluchry spam may have passed telemarkeling im frequency at this poimt, ancl iL 1s a

third type of direct marketing

1.3.6 E-marketing

E-marketing means using digital technologies to help sell your goods or services

These technologies are a valuable complement to traditional marketing methods

Though businesses will coninuc to make use of traditional marketing methods,

such as advertising, direct mail and PR, e-marketing adds a whole new element to

the marketing mix Many businesses are producing great results with e-marketing

aud its (exible and coslf{cctive nalure makes il parucularly suitable Lor small businesses

Tools of e-marketing include:

2 Websites

* Search Engines

«Blogs, Foruns

13.6.1 The benefits of e-marketing

L-marketing gives businesses of any size access to the mass market at an affordable

price and, unlike TV or print advertising, it allows truly personalised marketing

Specifie benefits of e-marketing inolude

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Global reach - a website can reach anyone in the world who has Internet

access This allows you lo find new markels and compele globally for only a

small investment

Lower cost - a properly planned and effectively targeted e-marketing

campaign can reach the right customers at a much lower cost than traditional

marketing methods

Trackable, measurable results - marketing by email or banner advertismg

makes it casicr to establish how effective your campaign has been You can

obtain detailed information about customers’ responses to your advertising

24-hour marketing - with a website your customers can find out about your

products even if your office is closed

Personalisation - if your customer database is linked to your website, then

whenever somcone visils the sile, you can gree! thern with targeted offers

‘The more they buy from you, the more you can refine your customer profile

and market effectively to them

One-to-one marketing - e-marketing lets you reach people who want to know

about your products and services instantly For example, many people take

mobile phones snd PDAs wherever they go Combine this wilh the

personalised aspect of e-marketing, and you can create very powerful,

largeled campaigns

More interesting campaigns - e-marketing lets you oreate interactive

campaigns using music, graphics and videos You could send your

customers a game or a quiz whatever you think will interest them

Better conversion rate - if you have a website, thon your customers are only ever a few clicks away from completing a purchase Unlike other media

which require people to get up and make a phone call, post a letter or go to a

shop, e-marketing is seamless

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+ Together, all of these aspects of e-marketing have the potential to add up to

more sales

1.3.6.2, Stages in developing e-marketing plan

It is important to recognize that planning for e-marketing does not mean starting

from seratch Any online e-communication must be consistent with the overall

imarkeling goals and current marketmg clforls of your businass

The main components of an e-marketing plan will typically inckade the following

stages

Identify target audience - if you identify multiple targets, rank them in order of

importance so thal you can allocate resources accordingly Profile each target group

and understand their requirements and expectations so that you can pitch your costs

and benefits at the correct level

Sct objectives - possible objectives could include awareness raising (of your business or disseminating information about your products or services),

entering new markets, launching a new product, focusing on sales (building

Intemet sales of a product or increasing the frequency of sales from regular

customers), or internal efficiency (decreasing marketing costs, reducing order-

taking and fulfillment costs, or improving customer retention rates)

Decide upon the marketing mix - you should choose a mix of e-marketing

acl s that will help you achieve your cbjectives and fit, with any existing

tvaditional marketing activities you already have planned Agree a budget - careful

budgeting allows you to prevent costs spiraling out of control By identifying the

Telus you expect {o make from your investment in e-marketing activities you can

compare these with the costs in order to develop a cost/benefit analysis

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Action planning - identify the tactics for implementing the selected e-marketing

activities The plan should also cover other non-Intemet marketing activities that

are being undertaken

Measure success - build in feedback mechanisms and regular reviews to enable

you lo asseas the sue

eas of your c-narkeling aclivilics, parti

ularly as e-commerce

is such a dynamic and fast-changing area

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CHAPTER 2 RESEARCH ON MARKETING COMMUNICATIONS OF SECURITIES COMPANIES

2.1 Summary about Vietnam securities market and securities

companies

Vietnam securities market official has officially operated since 2000, when Ho Chi Minh

Securities Trading Center - HOSTC (now changed to Ho Chi Minh Securities Exchange —

HOSE) was established on July 2000 At that time, there were only few stocks traded with

total capital about USD 1.7 million Through first 6 years, market capitalization only

reached USD 0.5 billion In two year 2006 and 2007, Vietnam securities market has

developed significantly with series of impressive records Market capitalization in Dec

2006 was estimated USD 13.8 billion, account for 22.7% GDP This number in April 2007

reached USD 24.4 billion, approximately 38% GDP, increased 1400 times comparing to

the year 2000 Currently, the number of listed companies is 213 companies, increase 704%

20 ise

108

ss JA-IIUE CSep-AMĐE NALEOME - lan - MALAMG —_ Mạ¿30Ơ — ĐM-BMU7- Sep-lĐM - Mm-Đ9Đ7.- Jan-300E

The above chart describes the performance of VN Index in 8 years from 2000 to

2007 If in the first session on 28 July 2000, VN Index only got 100 points, then in

March 2007, it reached the peak of 1170 points It’s obvious that the market has

grew tremendously in 2006 and 2007 In 2006 only, VN Index grew 146%, while in

2007

the first three months this year, the Index made another 43% growth Currently, VN

Index fluctuates around 900 point, 90 times higher from the beginning day of

trading

‘Up to date there are 60 securities companies operating in the market There are 60

securities comparnics lading in Ho Chi Minh Sccunties Excharyse (HOSE) and 5S

securities companies trading in Ila Noi Securities Trading Center (IASTC) These

companies operate in four main areas including (1) deposit and brokerage, (2)

consultancy, (3) self-trading andl (4) under wriling

The total wading account have increased from 50,100 accounls m 2005 lo 106,393

in 2006 and up to Sep 2007 is about 320,000 account, increase 300% against 2006,

in which there are more 140,000 new account were open in first 6 months of 2007

‘The chart below describes the percentage of accounts that were opened at different securities companies The leader currently is Sai Gon Securities Incorporation (SSI)

with 21.20%, the second is Vietcombank Securities Company (VCES), the third

position belongs to Bao Viet Securities Company The other big players are

Securities Company of Asia Commercial Joint Stock Bank (ACBS), Securities

Company of BINV (BSC), and Securities Company of Agribank (AGRISECO) and

Incombank (1135) The others securities companies only account for 20.90% of the

total accounts These statistics show that the brand names of experienced and big

securities companies help them altract a lot of customers Ts rather di(Ticull for

new-born securities companies to compete with the existing players if they don’t

have marketing policies that suit their status and affect the awareness of investors

Figure 2-1: Percentage of Accounts Opened at Securities Companies

2007

OTHERS

Source: Statistics of State Securities Committee in Sep 2007

Base on company size, market share, time of establishment and fame, securities

companies in Vietnam can be divided into three groups

Group 1 includes big and well-known securities companies which keep the big

market share, at least 5% of total market share Besides, these companies have been

established and operated in the market for a long time, at least two years Several

companies in this group are:

Sai Gon Securities Incorporation (SSI)

Vietcombank Securities Company (VCBS)

Bao Viet Securities Company (BVSC)

ACB Securities Company

BIDV Securities Company (BSC)

Agribank Scurities Companies pany (Agriseco)

Group 2 consists of medium companies, These companies are established after the

first group for about 6 -12 months and have a relatively well-known market

position One common feature of companies in this group is that they are normally

a member or closely related to big financial institutions, big banks, big corporation

Therefore, they are supported in terms of capital, human resource and customer

relationship Some companies in Group 2 are:

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‘Thang Long Securities Company

Sai Gon Thuong tin Bank Securities Company

An Binh Bank Securities Company

YnDirect Securities Company

Trang An Securities Companies

Group 3 is companies opened recently, smaller size and less accounts They are

joint stock companies that established by rich individuals who take advantage the

development of securities market

Dai Viet Securities Company

Bien Viel Securities Company

Tan Vict Scowities Company

Viet ‘Tin Securities Company

Viol Dragon Securities Company

2.2 Rcscarch on communication tools used by securities companics

The research was conducted by usiryy depth imferview with warkeling managers of

6 securities companies, combining with desk research of the author Securities

companies have different market positions, different sizes and uses different ways

to communicate with customers

Key finding:

In goneral, securities companies in Vietnam have used some of 6 tools

adverlisinys, PR, personal sales, sales promotion, direct markeling and e-

imarketing to communication with customers

2007