School of International Education ---GRADUATION THESIS Analyze and propose solutions to improve the marketing-mix activities at Mascom Investment and Technology Joint Stock Company Major
THEORETICAL OF MARKETING-MIX
Basic concepts of marketing and marketing-mix
In the fast-paced and evolving landscape of today's industry, marketing varies significantly based on the target audience, media platform, and specific business needs Consequently, it's not surprising that professionals in the field have distinct interpretations of their roles Here are three unique definitions of marketing from experts across different sectors.
The American Marketing Association (AMA) defines marketing as a comprehensive set of activities, institutions, and processes aimed at generating, communicating, delivering, and exchanging valuable offerings for customers, clients, partners, and society as a whole.
Marketing is both a science and an art focused on researching, developing, and delivering value to meet the needs of a target market profitably It identifies unmet wants and desires, assesses the size and profit potential of the market, and defines the most suitable market segments for the organization Ultimately, marketing creates and promotes products and services that align with these identified needs.
Marketing encompasses research, targeting, communications (such as advertising and direct mail), and often public relations It serves as a preparatory step for sales, much like plowing prepares the soil for planting in farming, by priming an audience to be receptive to direct sales efforts.
The marketing mix is a fundamental concept in modern marketing, encompassing the various tools a company employs to meet its goals in a specific market By strategically combining these marketing tools, organizations can effectively adapt to market variations and shifts Essentially, the marketing mix serves as a tailored solution for businesses to navigate their unique market challenges.
The Marketing Mix is crucial to a business's model, serving as a vital link between buyers and sellers It enables sellers to grasp the genuine needs of buyers, allowing them to create effective marketing strategies that optimally satisfy those needs.
4P is the traditional Marketing Mix strategy This model was developed in the 1960s by economist E Jerome McCarthy.
From that point on, the 4P Marketing model became famous and used, as well as taught in businesses, universities, and colleges around the world.
The 4P Marketing mix model is also the foundation for the Marketing Mix concept in general. The Marketing Mix 4P is a collection of marketing domains that include:
For marketers, developing a marketing plan is fundamentally rooted in a basic strategy that is widely utilized by both individuals and businesses However, the effectiveness of this strategy can vary, as the combination of elements and tactics employed may often be imprecise or lacking in strength.
The roles and objectives of marketing and marketing-mix
According to the process of socio-economic development, today's companies are more and more aware of marketing in business.
Marketing is essential for businesses as it involves understanding and fulfilling customer needs, guiding business activities with a customer-centric approach, and fostering innovation within the organization.
- Marketing is a way to help businesses solve relationships and harmonize the interests of their businesses with the interests of consumers and society.
- Marketing is a competitive tool that helps businesses establish their position and reputation in the market.
Marketing serves as the "heart" of business operations, influencing critical decisions across technology, finance, and human resources Key marketing choices determine essential aspects such as product development, target markets, production methods, and quantities.
The marketing mix is crucial for businesses as it enables them to deliver products to consumers efficiently and swiftly Key decisions regarding pricing, product features, distribution channels, and promotional strategies are essential components of this mix.
Effective marketing aims to maximize sales and revenue while minimizing costs by meeting customer needs By ensuring customer satisfaction, businesses can secure a loyal customer base, leading to increased preference for their products Consequently, as customer demand for the company's offerings grows, so do the profits generated by the business.
The primary objective of business operations is to generate profit, which necessitates engaging with the market to consume products Achieving this involves more than just enhancing product quality, designing appealing packaging, implementing innovative sales techniques, setting competitive prices, and advertising The ultimate aim of marketing activities is to ensure the production and supply of attractive products tailored to the target market while effectively coordinating with other functions within the company.
In summary, marketing plays a crucial role in connecting consumers with business products, influencing the lives of individuals in society Effective marketing strategies can lead to business success, resulting in increased revenue and profits.
Element of marketing-mix
Figure 1.1 4Ps of marketing-mix a Product
“Product means the goods-and-services combination the company offers to the target market”
The product is a crucial component of the marketing mix strategy, defined as an item or service created to meet customer needs and desires To successfully market a product or service, it is essential to identify its unique features that set it apart from competitors in the marketplace.
“Price is the amount the consumer must exchange to receive the offering.”
Price refers to the monetary amount customers spend to acquire a product or service Effective pricing strategies encompass various methods, set price levels, and adjustments based on market fluctuations and consumer behavior.
Price is a crucial component of the marketing mix strategy, representing the amount consumers are willing to pay for a product or service Marketing professionals must take into account various costs associated with product creation, including research, development, production, marketing, and distribution expenses.
“Place includes company activities that make the product available to target consumers”
The term "place" refers to the channels or intermediaries involved in the distribution of goods and services from manufacturers or service providers to consumers.
“Promotion includes all of the activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products.”
Promotion encompasses all tools available for marketing communication, forming a crucial part of the marketing mix as outlined by Neil H Borden Although there is no universal consensus on the exact components of a marketing communications mix, it typically includes various elements such as advertising, sales promotions, public relations, direct marketing, online communications, and personal selling.
Marketing-mix strategy
The marketing mix consists of various tools that can be effectively utilized depending on a company's ability to achieve its goals Implementing this strategy ensures that the internal elements of the business align with the market's evolving demands To achieve balance, companies must adopt a flexible and innovative approach to their marketing methods The marketing mix is dynamic, requiring constant updates to respond to market changes and drive positive results Each component of the marketing mix presents its own set of challenges and criteria that need to be addressed.
Success in marketing hinges on the characteristics of the products and key product management decisions The product is the cornerstone of the marketing mix strategy, with product strategy encompassing crucial choices such as the selection of product categories.
Depending on the purpose of the business such as providing a full category or expanding the market, or according to the profit goal, the business can choose in two directions:
- One is the development of the category: expressed by growth downward, upward, or in both directions.
- Second is the addition of goods categories; modernize the variety; category purification (removing some weak products in the category). b Trademark decision
Businesses must determine the branding strategy for their products, including trademark ownership, naming, and potential limitations on brand name usage They also need to consider whether to use multiple trademarks for goods with varying characteristics These decisions are influenced by the nature of the products, distribution channels, and the company's market position Additionally, packaging choices play a crucial role in the overall branding strategy.
Packaging serves two main purposes: protecting products and facilitating marketing Therefore, companies need to carefully consider their packaging design, the variety of sizes they offer, and the labeling process to ensure these functions are effectively fulfilled while adhering to legal requirements.
Effective customer service requires businesses to assess customer demand, evaluate their service capabilities, determine costs, and select service formats that stand out against competitors Additionally, decisions regarding new product design and development are crucial for meeting market needs.
In today's fast-paced market, businesses need to focus on innovative product design to keep up with rapidly changing consumer preferences, technological advancements, and competitive pressures Companies can enhance their product offerings by acquiring new products through various means, including purchasing other businesses, acquiring patents, obtaining production licenses, or investing in their own research and development efforts.
Among the marketing-mix variables, price is the only factor that directly drives sales and profits It serves as a powerful competitive tool, particularly in markets characterized by low overall price competition.
The base price refers to the selling price determined at the point of manufacture or sale, calculated under standard terms of sale This price does not account for additional factors such as discounts, shipping costs, or other variables.
- Decision on terms of the sale: Determine the terms of the order, delivery, and payment.
When determining selling prices, businesses must consider various sales conditions, opting for either a flexible or fixed pricing strategy This includes implementing discount rates, rebates, and price adjustments tailored to specific sales scenarios Additionally, life cycle pricing strategies, sales promotions, and product line pricing play crucial roles in optimizing pricing decisions to enhance competitiveness and profitability.
- Decide to adjust prices as competitors and the environment change.
Cost-plus pricing is a straightforward pricing strategy where a predetermined profit margin is added to the cost per unit of a product to determine its selling price The profit margins can differ based on the type of product being sold.
Target return pricing involves setting prices to achieve a desired return on investment (ROI) This strategy utilizes a break-even chart to illustrate total costs and anticipated total revenue across various output levels, ensuring that businesses can meet their profit objectives effectively.
Pricing according to the current price
Distribution is how the producer gets the product into the hands of the consumer to achieve the business goal of selling the product.
A distribution channel is a network of individuals or organizations that facilitates the transfer of ownership of tangible products or the use of services, effectively moving goods from production sites to consumers.
There are 2 main types of distribution channels:
Direct channel: is a distribution channel that does not use intermediaries The manufacturer will sell the product directly to the end-user.
Indirect channels of distribution involve the use of intermediaries to sell products to end consumers These channels can consist of multiple levels of intermediaries, each performing similar functions related to transferring product ownership to the consumer.
Key steps to design a distribution channel:
- Analyze customer needs in terms of channel service level.
- Formulate terms of cooperation with channel members.
Promotion refers to the activities undertaken by a business to communicate valuable and persuasive information about its products to target customers It encompasses key tools such as advertising, sales promotion, personal selling, direct marketing, and public relations.
To build and develop a sales promotion program, businesses need to consider the following steps:
- Clearly define target customers: Customers can be potential buyers of the company's products, users of the company's products, decision-makers, or influencers on purchasing decisions.
- Define communication objectives: It creates product awareness, product knowledge, goodwill, preference, trust, or buying behavior.
To create the perfect message, it is essential to engage the audience by capturing their attention, sparking interest, igniting desire, and prompting them to take action This involves addressing four key aspects: determining the message content, structuring it logically, presenting it in a compelling format, and identifying the source of the message.
- Define the marketing communication mix.
Target to evaluate marketing activities
After each business cycle, companies assess their performance by reviewing sales reports, which allows them to evaluate the effectiveness of their marketing strategies This analysis helps identify the strengths and weaknesses of their marketing policies, enabling businesses to develop measures for improvement.
Revenue is defined as the total earnings generated from product sales, service provision, financial operations, and other commercial activities It serves as a vital indicator of a company's performance and overall health.
Return On Sales (ROS): is a ratio used to evaluate a company's operational efficiency.
This measure provides insight into how much profit is being produced per VND of sales.
An increasing ROS indicates that a company is growing more efficiently, while a decreasing ROS could signal impending financial troubles.
ROS=Net income Net revenue
Return On Investment (ROI) is a key metric used to evaluate the effectiveness and value of an investment It quantifies the gain or loss from an investment by comparing the returns generated to the costs incurred.
ROI is often used along with many other methods for developing important business plans based on collected data.
ROI = (Current Value of Investment - Cost of Investment)
Return On Advertising Spend (ROAS) is a crucial metric for evaluating the profitability of advertising efforts It quantifies the revenue generated for every dollar invested in advertising, making it an essential tool for assessing the effectiveness of marketing campaigns By analyzing ROAS, businesses can gain insights into the performance of their advertising activities across various marketing channels.
Many companies have been concentrating on marketing costs to increase their brand image and business efficiency.
This research will help companies develop a comprehensive understanding of their marketing strategies, enabling them to pinpoint products, distribution channels, and marketing expenses that need to be enhanced, reduced, or eliminated.
When launching a business, marketing expenses can vary significantly based on several factors These costs typically encompass trade events, advertising, public relations, brand strategy, brand management, franchising, marketing materials, direct marketing, and social media efforts Additionally, the budget may cover advertising fees, media operation costs, KOL rental fees, commission fees, and other expenses tailored to specific media campaign objectives It is important to note that this budget does not account for sales expenses.
The marketing expenditure as a percentage of total revenue is a key metric for organizations, reflecting the costs associated with marketing efforts This ratio varies depending on the type of product or service, such as industrial goods, consumer products, or professional services, and also differs across industry sectors Companies that are introducing new products, repositioning existing brands, or entering new markets tend to have a higher marketing expenditure percentage.
Factors affecting marketing-mix activities
The macro-environment encompasses the broader factors that exert a lasting influence on a corporation, characterized by minimal change and significant impact These uncontrollable elements require companies to monitor and respond promptly One key aspect of the macro-environment is the demographic environment.
Demographic pressures significantly impact society, as demography involves the study of human populations, including factors such as size, density, age, gender, and occupation Understanding these demographics is crucial because people's needs ultimately drive the existence of businesses, making them a key factor in market development As a result, companies encounter both opportunities and challenges stemming from diverse and growing populations For marketers, analyzing demographic trends is particularly vital during periods of rapid global population growth and demographic changes.
To effectively forecast future customer numbers, the company must analyze demographic trends, which provide insights into societal changes in education levels, income, and age distribution Additionally, understanding the political environment and relevant laws is crucial for strategic planning.
The political environment significantly influences trading operations through regulatory laws, impacting business performance A favorable political climate fosters growth opportunities for companies, while an unfavorable one can hinder operations and impede progress.
The corporation can predict buyer pricing based on the economic climate, influencing its pricing strategy and valuation methods for products and services This includes determining market-appropriate pricing to cover costs and understanding customer preferences regarding product quality and packaging with their new income These considerations are integral to the marketing mix, highlighting the importance of marketing-mix research on a company's profitability.
The cultural environment plays a crucial role in shaping a company's present and future growth, influencing consumer attitudes towards their surroundings and specific products Local habits and traditions form the cultural context, making it essential for companies to consider this environment when developing marketing strategies This consideration is particularly vital in communication decisions, as understanding cultural nuances can significantly impact effectiveness.
Researching the science and technology landscape is essential for companies to stay updated on technological advancements and enhance their existing products The influence of science and technology significantly shapes product policies, ensuring that businesses remain competitive and responsive to market demands.
The environmental factors significantly influence a company's performance, particularly in terms of financial outcomes An increase in the costs of rare resources or energy directly raises manufacturing expenses, which can disrupt distribution strategies and lead to delays in delivery and advertising efforts These challenges highlight the detrimental effects of unfavorable environmental conditions on business operations.
The micro environment encompasses the individuals and organizations that a company interacts with on a regular basis, including suppliers, competitors, customers, intermediaries, and employees Each of these stakeholders has a direct interest in the firm's operations and is influenced by its decisions and actions.
- Suppliers: can provide a high quality of products at a good price The suppliers’ side by accessing levels to the internet, propensity to use and integration with existing systems.
- Customers: (Oxygen of business) it is necessary to understand and supply what customers need Identify the buyer behavior, where is to access customers online
Digital tools enable businesses to effectively target potential clients by selecting the right marketing channels The online marketing landscape offers a diverse array of channels, with new options continually emerging To maximize impact, companies should conduct a cost-benefit analysis to evaluate and rank these channels based on their cost-effectiveness.
- Intermediaries: new capabilities, new intermediaries.
In today's digital business landscape, the role of Human Resources is crucial as it empowers employees to adapt quickly and embrace new skills This adaptability fosters a competitive advantage for companies, enabling them to thrive in an ever-evolving market.
- Budget: Cost is a factor no matter what type of marketing campaign you're planning.
Businesses on a tight budget may hesitate to engage in digital marketing due to perceived costs However, affordable strategies like establishing a social media presence, blogging, and producing marketing videos with basic equipment can be effective In contrast, more advanced options such as microsites, pay-per-click advertising, and SMS marketing typically necessitate a larger financial investment.
Big Data plays a crucial role in digital marketing by addressing the what, how, when, and why of strategies It remains a significant focus for business strategists and planners, driving the adoption of Big Data policies and technologies for data collection and integration As companies recognize the importance of consumer behavior and usage data, they are increasingly leveraging these insights to enhance their performance and profitability.
Effective digital marketing strategies demand a significant time investment for planning, implementation, and ongoing monitoring This can pose challenges for small business owners who may lack marketing expertise Continuous assessment is essential to identify successful tactics and make necessary adjustments.
- Competitor: In terms of strategic intention and planning; resources and capabilities; performance; supplier and intermediary relationships.
Process and Analytical methods
Step 1: Finding research problems and objectives
Identifying the correct problem is crucial, as incorrect problem identification leads to flawed research methods and costly inefficiencies Additionally, there are often hidden issues that, if left unaddressed, can result in significant negative outcomes.
When a company notices a decline in customer purchases, the primary challenge lies in understanding how to attract customers back to its products and assessing the perceived value of its offerings.
Businesses should clearly define their research objectives, which can range from exploratory goals aimed at understanding customer data to clarify problems, to descriptive goals that focus on detailing specific phenomena Additionally, these objectives may involve testing hypotheses regarding significant relationships.
Step 2: Select the source of information
Data or data that researchers might obtain are known as information sources.
In general, there are two types of data sources in marketing: secondary data and primary data.
Information gathering is the most time-consuming and costly phase, and also the most error-prone When implementing information collection, there are often the following difficulties:
- Direct access to the people needed to collect data
- Ability to convince customers to participate in providing data
- True trust in the data that customers provide
- Unbiased authenticity of the participants in the interview
Step 4: Processing and analyzing information
The researcher employs advanced statistical methods and models from the marketing information analysis system to analyze the collected data This process involves organizing the data into tables and conducting a thorough analysis to generate the necessary insights for meeting the research objectives.
The culmination of the research process is the presentation of findings, which can take various forms A typical research report generally encompasses several key components.
Presenting research results is a crucial step for marketing researchers, as it aids marketing managers in making informed decisions that drive organizational success.
Marketing research consists of five key stages First, it is essential to clearly define the research issues and objectives Next, a comprehensive data-gathering strategy must be developed, incorporating both primary and secondary data, each with its own collection methods The third stage involves collecting information from various sources, whether in the field, within the organization, or in a laboratory setting Following this, the data must be analyzed and processed to serve as a foundation for reporting Finally, sharing the critical findings enables marketing managers to make informed and scientifically-backed decisions.
To achieve the set objectives, the research topic uses secondary data from different sources:
Internal data of the Company: (1) Report on production and business activities,
(2) Weekly sales report - General month of each store belonging to its system, (3) Other internal documents
The company utilizes a variety of external data sources, including articles from the internet, newspapers, and specialized scientific journals, as well as fashion publications and relevant academic journals Additionally, it incorporates documents, textbooks, and scientific publications that pertain to research topics, along with reports and essays from previous students addressing similar research issues.
Utilizing secondary data sources offers significant time and cost savings; however, to guarantee the accuracy and reliability of the information, the author classifies and selects data based on the specific research problem while simultaneously comparing the test data with the original dataset.
The comparison method is an analytical approach that evaluates criteria against a baseline indicator, often referred to as the original index This technique is widely utilized in analysis to identify trends and assess the volatility of the criteria being examined In business analysis, the primary goal of this method is to understand how the analytical target evolves, enabling organizations to adjust their strategies to either accelerate or decelerate in response to challenges.
1.7.3 Data and data source for analysis
Primary data refers to the information collected directly from the source for the first time, tailored to meet the specific objectives of a research study This type of data is essential for addressing particular business issues, and several methods can be employed to gather it effectively.
It is best to devise a unique strategy for gathering primary data Preliminary decisions on research techniques, research tools, sampling plans, and public communication approaches are required for this plan.
Secondary data refers to information that has already been collected and processed for a specific purpose, which marketing researchers can repurpose for their studies This data can be categorized into two main sources: internal and external.
Internal secondary data: data from reports of business functions such as revenue, expenses, distribution, advertising
External secondary data: consists of two main sources: library source and aggregate source.Library source: includes published data in books, magazines, specials, research reports,statistical yearbooks
Combined source: includes composite data made by market research companies available for sale to customers rather than published.
ANALYSE THE CURRENT SITUATION OF MARKETING-MIX
Overview of Mascom investment and technology Joint Stock Company
Vietnamese name : CÔNG TY CỔ PHẦN ĐẦU TƯ VÀ CÔNG NGHỆ MASCOM English name: MASCOM INVESTMENT AND TECHNOLOGY JOINT STOCK
Head office: No.09 Nguyen Hoang street, My Dinh 2, Nam Tu Liem district, Hanoi city,
Representation: Mr Nguyen Trong Dong
Macom, officially known as Ascom Technology and Investment Joint Stock Company, was established in May 2015 and is a subsidiary of Masan Group Corporation The company specializes in telecommunications technology, offering security solutions and financial technology services, and has formed partnerships with several major industry players.
IT units in Vietnam and the world, to advise you on the best IT and Telecom solutions.
In October 2015, Mascom introduced its AI/EDGE AI/IOT technology solutions, initially deploying cameras for airport systems and public spaces Following this launch, the company expanded its offerings by implementing additional technology solutions within the education sector.
• January; 2016 Mascom continued to launch telecommunications and financial technology solutions.
In January 2021, Mascom recognized the dedication of its staff, whose enthusiastic support for customers has solidified the company's strong position in the industry, consistently ranking among the top 100 The company is known for delivering leading technology solutions.
• MASCOM's motto is "Our solution, your pleasure , since its establishment," Mascom has continuously won the hearts of customers for its service quality direction.
• Mission: Mascom brings you the best technology solutions, expanding revenue and potential in the financial market.
• Objectives: Become a leading unit in the field of telecommunications technology to meet all customer needs, bring profits to partners and members.
A well-defined organizational structure enables a company to navigate market fluctuations and maintain operational efficiency Recognizing this need, Mascom has established a management system tailored for small and medium-sized enterprises The company's management apparatus can be effectively summarized in a diagram.
Source: Human Resources Department 2.1.4 2 Functions and duties of departments:
A director is an individual who oversees the company's business and production operations, holding accountability for the overall outcomes of these activities before the corporation's leadership.
• Vice-director: Assisting the director in business operations, promoting financial resources and managing the Company's activities.
• Administration and HRM Division: It is advisable to consult with the Board of Directors to reasonably organizing the company's operation apparatus, to advise on
Head of softwareDevelopment department personnel organization issues such as salary regime, staff management, management assignment online for parts of the company.
The Accounting and Finance Division plays a crucial role in advising the Director on effective financial planning for the company It accurately reflects all business activities through the company's accounting system, ensuring compliance with state regulations while managing accounts and settlements efficiently.
The Sales and Marketing Division is essential for driving the company's sales goals by engaging with both current and potential customers The marketing team focuses on market research, raising product awareness, stimulating customer demand, and enhancing the brand's presence in the marketplace.
SALES: Implement activities to sell SOFTWARE, at the same time convince customers, and bring revenue to the company.
Creating and executing business plans while engaging directly with customers and distributor systems is essential for generating revenue Furthermore, the sales department must collaborate with accounting and administration to ensure a comprehensive service experience for clients.
- Supporting and advising on the company's software services, customer care implementation before and after using the service.
• IT department: is a purely technical department of the company as well as working directly with customers on product technical issues during installation and testing. Head of technical department:
In charge of technical network systems and information technology infrastructure
In charge of the system of peripheral devices, security
Responsible for computer systems, printers, projectors
Head of software Development department:
Research, design and implement software to meet the needs of customers and industry markets.
In charge of the database, working directly with customers
In charge of the telecommunications technology solution software system
In charge of the customer support software system on usage and warranty.
Manage and train programming engineers and testing teams
- Speech to Text: Text and natural language understanding technology relies on artificial intelligence to create a complete synthetic sound with the right rhythm and intonation.
- Voice Brand name: is an extremely convenient and effective image promotion solution that every business should apply in today's technological age.
Mascom provides information security solutions that meet the scope of management “4 layers”
EDR (Endpoint Detection and Response) efficiently stores remote archives and threat properties from monitored systems in a centralized storage facility for quick access Additionally, EDR software enables the seamless updating and deployment of new applications across corporate devices, regardless of their location or type.
- Internet Shield: An effective method to manage and monitor internet usage in enterprises.
System-on-a-Chip (SoC) technology is increasingly favored by developers, particularly ARM, as it allows for the integration of all system modules into a single chip or circuit This innovation significantly minimizes the size of the devices that utilize it.
Mascom provides financial technology solutions
OCR, or Optical Character Recognition, is a specialized technology designed to read text within image files This digital scanning tool excels at recognizing characters, whether they are handwritten or typed, and is widely utilized for data transmission and entry.
eKYC, or electronic Know Your Customer, enables banks to identify customers entirely online, streamlining the processes of document and biometric verification This innovative approach eliminates the need for face-to-face interactions at transaction offices, making customer identification more efficient compared to traditional KYC methods.
- Credit Scoring: is a scoring system implemented by statistical analysis by lenders and financial institutions to assess the creditworthiness of an individual or an organization or company.
- Solution applying artificial intelligence (AI, EDGE AI, Machine learning, IoT) to cameras, deployed for office systems, airports, public areas, …
Figure 2.2 Some products at Mascom
This model includes the following sequential processing stages:
1 Requirements gathering: this is the stage of determining the functional and non-functional requirements that the software system needs The output of this phase is the requirements specification document This document will be the foundation for the next phases to the end of the project.
2 System Analysis: It is the stage of determining how the software system meets the requirements of the customer This phase performs analysis and design of the software system.
3 Coding: This is the stage of product implementation based on requirements specification and module design document.
4 Testing: The tester will receive the product from the developer and perform testing for the group of components and system testing The last stage of testing will be Acceptance Testing, this phase also includes the participation of customers.
5 Implementation: Deploy the system to the customer's environment.
6 Operations & Maintenance: This is the installation, configuration and training phase for the customer This phase corrects product defects (if any) and develops new changes requested by the customer
2.1.7 Current business activities of the company
Table 2.1 Current business activities of Mascom a Net revenue
Income saw a significant increase, jumping from 209,823,056,113 VND in 2019 to 232,657,089,445 VND in 2020, marking a 10.88 percent rise This growth can be attributed to effective corporate policies and strategies.
After-tax profit was rose, in 2020 the company achieved profit after tax was doubled compared to 2019, equivalent to 99,9% The reason for this is the growth of the revenue. c ROS
Analyze the current marketing-mix activities situation of Mascom Investment and
Mascom specializes in software solutions, targeting businesses of all sizes Its primary customers include individuals and organizations seeking to purchase or trade software The company categorizes its clientele into distinct groups to better serve their needs.
Administrative block, career: Hospitals, kindergartens, schools, universities.
The store has been licensed for business registration.
Mascom is committed to expanding its business activities beyond the domestic market into international markets The company engages in both direct and indirect transactions with local and foreign enterprises, focusing on signing contracts, technology transfer, and investment development By prioritizing customer feedback, Mascom continuously enhances its software quality, enabling businesses to boost their revenue.
Main Products and Services: and Services Note Details 29
Super App Social Gaming Speech to Text Voice Brand name
With diverse solutions, the provision of MASCOM telecommunications solutions has brought many choices to customers and partners in many different segments and met the basic needs of customers.
MASCOM brings convenience in information management with high accuracy and safety with its "4 layers" management scope
The above 3 features of MASCOM have helped its partners optimize the entire process when working with customers, thereby saving costs and time
4 AI/Bigdata AI, EDGE AI,
Solution applying artificial intelligence (AI, EDGE AI, Machine learning, IoT) to cameras, deployed for office systems, airports, public areas, …
Thanks to the application of AI that MASCOM deployed, it has minimized the use of human labor in monitoring, along with quickly detecting and preventing risks
Edtech – Provincial educational database Edtech – Elearning
An extremely attractive segment that MASCOM participates in when the Edtech industry market is growing stronger, receiving more investment and distance teaching and learning becomes more and more popular.
Mascom's technology solutions meet a high standard of quality and accuracy.
Mascom offers the highest quality at a reasonable price.
Always research and provide suitable technology solutions for all difficult problems of customers, Bring convenience to partners and members Help partners increase revenue, save time and costs.
Table 2.2 Summary Revenue by Product Type
From 2019 to 2020, product revenue increased by 10%, with Telecommunication Solutions generating the highest revenue at 36.54% of the total In contrast, Security Solutions contributed the least, accounting for only 9.6% of revenue, as it is not a primary service of the company Additionally, Financial Technology and AI/Big Data services represented significant portions of revenue, at 21.4% and 21.59%, respectively, making them the second main services offered by the company after Telecommunication Solutions.
Utilizing the data table, the company can develop an effective service policy and establish a well-structured service framework for the upcoming years This approach enables the company to align with market demand and optimize its input methods Additionally, as domestic and international technologies evolve, customer preferences shift, prompting the company to adapt swiftly to meet these changing needs.
Mascom's logo with a green color Mascom's logo design has not changed over the years, making it easy for customers to remember, recognize and distinguish from competitors.
The Company prioritizes product quality and design to secure a leading market position and maximize profits By focusing on proper valuation and exceptional services, the Company aims to enhance profitability and maintain its competitive edge.
Below is the price of Mascom's eKYC software service
Service plan eKYC 01 eKYC 02 eKYC 03 eKYC 04 eKYC 05 eKYC 06
Provide API 6 basic API Provide full API functions
Provide SDK Basic SDK Advanced SDKs
The pricing of the company's software products should focus on brand value and customer benefits rather than production costs Consequently, the company employs three primary pricing strategies to determine the product's value.
A competition-based pricing strategy centers on the prevailing market rates set by direct competitors, prioritizing these prices over production costs This approach establishes pricing standards based on competitors, ensuring alignment with market expectations.
Mascom employs a competitive-based pricing strategy, setting its product prices slightly lower than those of its competitors to attract customers This pricing approach does not compromise service quality; instead, it combines affordability with high standards, fostering strong customer trust As a result, Mascom consistently maintains competitive pricing in the market.
Mascom's freemium pricing strategy offers customers a free basic version of the product, allowing them to experience its core features This approach aims to engage users and encourage them to upgrade to premium versions for access to advanced functionalities.
Offering a free trial is always an invitation for customers to build trust and potential before they decide to pay to upgrade for that product.
With the Freemium strategy, the initial Price Barrier created for customers must be low and gradually increased as they need to provide more features and benefits.
A value-based pricing strategy involves setting prices for products or services based on the perceived value to buyers, which can often exceed their actual cost When implemented effectively, this approach not only boosts sales and profits but also strengthens the relationship between businesses and their customers.
Mascom determines its pricing based on customer perceptions of the product's value The company provides educational management software that boasts high accuracy, enabling customers to enhance their profitability and improve training quality, leading to greater student satisfaction As a result, customers are often willing to pay a premium for the lasting value that Mascom's solutions offer.
Technology solutions businesses offer a unique customer experience by directly addressing their specific problems and providing tailored solutions Clients interact closely with a highly skilled consulting team, ensuring they receive accurate and reliable information After installation, the company conducts thorough checks to promptly resolve any software issues, guaranteeing optimal performance.
Figure 2.4: Distribution of direct channels of Mascom
Mascom's technology solutions business uniquely serves a diverse clientele, including organizations, private enterprises, state-owned enterprises, large corporations, small and medium-sized businesses, and households These customers demand high-quality products, making direct distribution the most effective channel for delivering products and services straight to them.
The company offers customers a hands-on experience, allowing them to clearly identify their issues and receive tailored solutions Customers will interact directly with a highly qualified consulting team, ensuring they receive accurate and reliable information Following installation, the company conducts thorough checks to promptly address any software issues, guaranteeing optimal performance.
Mascom uses an e-commerce site where users can contact them directly
Another method of direct distribution is through catalogs or by phone contact
Customers can easily reach out to the company through advertisements, allowing staff to engage in discussions about service packages and relevant information During this interaction, customers have the opportunity to establish contract terms while utilizing the company's services Following direct communication, customers can make immediate decisions, and throughout the service period, they will benefit from an operational team and after-service warranty support.
Analysis targets to evaluate marketing activities
Overall, the company's revenue has increased significantly from 209,823,056,113VND in
2019 to 232,657,089,445 in 2020 From 2019 to 2020, revenue increased by 10.88% respectively The reason for this phenomenon is due to effective business policies and strategies.
After-tax profit was rose, in 2020 the company achieved profit after tax was doubled compared to 2019, equivalent to 99,9% The reason for this is the growth of the revenue.
The Return on Sales (ROS) indicates the profit generated from every 100 dongs in revenue, expressed as a percentage This metric highlights the connection between the company's net profit and its overall revenue, providing valuable insights for investors.
From 2019 to 2020, ROS is positive, meaning that the company is profitable Moreover, ROS increased 80,37% from 2019 to 2020 showing that the company is organizing better and more profitable.
The cost of marketing a business varies based on several factors and typically encompasses activities like commercial events, advertising, public relations, direct marketing, and social media, among other expenses In 2020, Mascom's marketing expenses are detailed in the following table.
Table 2.5 Marketing expense of Mascom in 2020
2.3.3 Return on marketing expense (ROME)
This indicator measures the revenue the company receives is VND 20.9 every VND 1 spent on marketing This is an impressive number.
2.3.4 Profit on marketing expense (POME)
Although the Revenue on Marketing expense is extremely high, the profit on Marketing expense is only 1.90, it measures that the company receives VND 1.90 profit every VND 1 spent on marketing.
Analyzing factors affecting marketing-mix activities
2.4.1 Macro environment a Demographic environment population structure
Effective business management relies on utilizing human resources to connect with customers and sell products To formulate a successful development strategy, companies must consider the impact of population and its growth in each market This demographic factor significantly influences production management and business administration across enterprises in every country.
Vietnam's current population is estimated at 98,110,338 people In 2021, the population of Vietnam is expected to increase by 830,246 people and reach 98,564,407 people by early
In 2022, Vietnam is expected to experience a natural population growth of 912,801 people, as births will surpass deaths However, if migration trends remain consistent with the previous year, the population could decline by 82,555 individuals, indicating that more people are leaving Vietnam for other countries than those moving to settle in Vietnam.
According to some research, daily change rates of the Vietnam population in 2021 will be as follows:
- 4,234 children are born every day on average
- 1,733 people die on average per day
Vietnam's population will increase by an average of 2,275 people per day in 2021.
Figure 2.6 Population structure by age and gender in 2021 b The political environment
To stabilize the political environment and foster the growth of software companies, it is essential to prioritize policies such as VAT exemptions and corporate income tax reductions However, the current legal framework is incomplete, particularly regarding intellectual property protection, which has significant loopholes Additionally, the minimum wage is lower than in other regions, leading well-trained workers to seek higher-paying opportunities with foreign enterprises or in different areas, resulting in a shortage of quality labor.
The economy has grown significantly, with its size reaching $347 billion at current prices From 2010 to 2020, the GDP increased 2.4 times, rising from $116 billion to $268.4 billion, with a growth rate that outpaced inflation Additionally, GDP per capita rose from $1,331 in 2010 to approximately $2,750 in 2020 The macroeconomic environment remains stable, inflation is managed effectively, and the economic structure is evolving positively, enhancing the demand for business software products.
The current landscape presents a significant opportunity for both domestic and international software technology companies While the market ratio remains balanced and stable, challenges in the primary resource and stock markets hinder substantial investment for expansion Additionally, Vietnam's software sector primarily focuses on outsourcing due to weak IT infrastructure, low wages, and a decline in labor quality caused by the outflow of skilled professionals.
Culture is a multifaceted concept that encompasses various definitions and is recognized as a fundamental aspect of human civilization It influences every individual, organization, and administration, shaping their personality, ethics, beliefs, attitudes, and value systems Each person's characteristics are developed and transformed through the cultural context in which they exist.
Vietnam is a vibrant nation characterized by its youthful population and impressive literacy rate, alongside a swift integration of Western culture However, the software products developed in the country often lean towards theoretical concepts, lacking practical application due to an education system that emphasizes theory over hands-on experience, resulting in challenges for adaptability in real-world scenarios.
Despite the current inadequacies in IT infrastructure and human resources, both are showing steady improvement This positive trend is contributing to the gradual enhancement of quality within the software industry.
Situated in the heart of Southeast Asia, this coastal location benefits from a vibrant economy, facilitating integration and exchange with both regional and global markets amidst the ongoing trends of economic globalization.
2.4.2 Microenvironment a Threat of new (potential) competitors is high: potential competitors include start-up
IT enterprises, along with companies from sectors like outsourcing, web development, and foreign software, are gearing up to enter the highly competitive Vietnamese market Key barriers to entry for these businesses include a deep understanding of sales activities, effective management and business skills, adequate time investment, advanced technology, skilled IT personnel, and robust IT infrastructure.
- As a leading information technology enterprise in Vietnam, available customers are largely domestic and foreign corporations, corporations, ministries, agencies, and government organizations.
- Having the strength of a team of engineers, experienced experts in technology, and practical experience
- Less competitive on price and cost compared to other businesses in the industry
- Because it has developed very strongly without focusing on exploiting the niche market, this is an opportunity for MASCOM as well as its competitors.
- Diverse and long-term customer files
- Not understanding the new market
New way - Good price This is a strong competitive point for Masscom because of the price strategy that
- Haven't created a strong brand yet
The analysis of market competitors reveals that the threat from substitute products and services is relatively low, primarily due to high switching costs associated with personnel and the limited performance of alternatives like bookkeeping and Excel calculation tools Additionally, the bargaining power of buyers is notably high prior to purchase, although it diminishes slightly after the transaction is completed.
Products purchased with low-value account for a very small, almost insignificant portion of the input costs of the buyer;
The number of businesses providing software is very large, the price is very competitive; The cost of switching suppliers is almost negligible;
The customer is not capable of making software;
High switching costs primarily arise from the management and effort required after a purchase, as they are influenced by the user's habits and the specific usage scenarios of the software Additionally, the supplier's bargaining power is either absent or low in this context.
There is no supplier because the company produces the software itself, temporarily considered as an IT staff who programmed the software;
The number of IT workers in the market is very large;
IT staff are less likely to run their own software business;
This is a strategic product of the enterprise;
The cost of converting IT labor is very high due to training and time-related issues. e The level of competition in the industry is very fierce, because:
The barriers to exit the industry are less important due to limited fixed investment, mainly related to psychological and emotional factors;
The number of competitors is more balanced and stronger in size and resources; Product differentiation is very diverse, many success factors;
The diversity of competitors in terms of strategies, views, actions, etc is low, so it is easy to predict the opponent's actions to set up a reaction mechanism;
Screening status in the industry is very high.
SWOT analysis
- Management capacity, company reputation is increasing day by day
- There are quality certificates and prestigious awards
- Have a good relationship with existing customers
- Trusted by many big partners
- Focus on the Hanoi market
- Activities are not deployed synchronously and continuously.
- Don't focus on finding customers
- The target audience is too broad and general
- Marketing budget is not much.
- Marketing policy has many limitations
- Additional services have not been focused
- Customers who buy on the market are less volatile.
- Increasing technological demand the use of information technology is growing in popularity, and programming technology is widely used.
- Customer demand is increasing every day, and technology has become a vital aspect of
- High customer expectations for functionality helping businesses increase income.
- The state's policy of support is excellent.
Chapter 2 highlights key features of Mascom, providing an overview of the company's business activities and achievements over the years An analysis of the current marketing-mix policies reveals both successful and ineffective strategies The research identifies the strengths and weaknesses of Mascom's marketing-mix approach, leading to the proposal of targeted solutions aimed at enhancing the effectiveness of its marketing tools.
PROPOSE SOLUTIONS TO IMPROVE THE COMPANY’S
Solution 1: Solution on mixed promotion activities for Mascom Investment and
3.1 Solution 1: Solution on mixed promotion activities for Mascom Investment and Technology Joint Stock Company to attract customers' attention
In today's competitive market, companies recognize the importance of the marketing mix in driving comprehensive and sustainable growth Modern consumers are discerning; they won't purchase a product without first understanding its brand reputation, quality, and essential features.
The customer's buying decision process requires comprehensive information about the software, a fundamental understanding of its functionalities, and a careful evaluation of how well it meets their specific needs, preferences, essential features, and budget.
The jobs mentioned are primarily influenced by the marketing promotion mix, which is essential for driving effective promotional activities This integrated approach will be bolstered by other elements of the marketing mix, ensuring that overarching objectives are successfully met.
Mascom's promotion mix policies currently rely heavily on direct marketing and personal selling, but they are expanding their approach to attract more customers The company has introduced additional promotional methods, including advertising and public relations (PR), to enhance its existing strategies.
In order to improve the company's business activities, attract customers' attention, brand recognition with high coverage.
Development cooperation to promote revenue through the proposed improvement of policies of promotion mix.
Given the broad reach and limited audience targeting inherent in advertising, it is advisable for the company to adopt this approach With a modest capital investment, the company should concentrate on effective methods to maximize its impact.
Advertising methods such as: Magazines, fairs, outdoor activities,
When advertising in print media like newspapers and magazines, companies should focus on specialized publications, such as technology magazines, to effectively reach their target audience Crafting compelling communication messages is essential to capture customer attention and leave a lasting impression.
Outdoor billboards are an effective form of advertising that reinforces the message delivered by primary media, particularly print While they serve as a supplementary method, these billboards play a crucial role in reiterating messages to target audiences and enhancing brand visibility Additionally, outdoor billboards reach not only potential consumers but also a broad audience, making them a valuable marketing tool.
Billboards strategically positioned on busy main roads capture the attention of a large audience, effectively introducing products to potential consumers in a subtle manner This unintentional exposure allows for ongoing engagement with a broader audience.
Internet or online advertising today is the most cost-effective method of a marketing promotion campaign, it is recommended to use this medium specially to create brand awareness.
Facebook has emerged as the leading online community, driving significant growth in advertising opportunities With its vast user base, Facebook advertising effectively reaches a wide audience, making it an essential platform for marketers.
YouTube is a highly visited platform that offers significant opportunities for attracting customers Mascom leverages this platform for advertising, effectively reaching potential clients through engaging content To enhance brand recognition, Mascom focuses on creating concise promotional videos that showcase the company's strengths and capabilities.
Effective product promotion strategies significantly boost store sales Unique and appealing promotions attract a larger customer base, increasing awareness of your products and services.
Unreasonable promotions can lead to negative reactions from customers, ultimately harming your product or service To effectively impress and attract a larger customer base, it is essential to implement well-thought-out promotional strategies.
Mascom will apply some types of promotions:
For customers who have never used the service: give a voucher to use the service for free for 1 month.
Provide upgrade: when customers choose technology solution services, customers will be supported with product upgrade packages, which can be upgraded to be better or add additional functions.
Provide warranty: Warranty increases customer confidence and emphasizes company integrity.
The company has promotions and discounts for regular customers.
Mascom rewards its regular customers by offering a complimentary gift with their service package Additionally, customers will receive a membership card that provides a discount of 5-10% on service packages, based on whether they hold a silver or gold card.
Free Trial: Offers a free trial of a company's product so that potential customers can become more familiar with it.
Buy 1 get 1 free : On holidays, the company will have gifts for customers suitable for those holidays for example: moon cakes, mugs, calendars…
Public relations are crucial for effective communication, as they build customer trust in a company's services Strong public relations foster confidence among potential customers, encouraging them to choose and remain loyal to the company's products over the long term.
Building strong relationships with media outlets and press is essential for effectively sharing valuable information that highlights the company's products and services, ultimately attracting greater attention and engagement from the audience.
Solution 2: Training to improve the expertise and skills of employees
The survey results show that Mascom needs to correct its working style and improve the professional qualifications of its employees transactional salespeople, as well as marketing staff.
To enhance business efficiency and expand market reach, companies must bolster their marketing efforts Achieving systematic and effective marketing requires professionalism from managers, employees, and the business department, encompassing image, style, creativity, and expertise When individuals collaborate effectively, they not only meet customer expectations but also foster a sense of professionalism and comfort, encouraging customers to engage with the company.
Recent studies over the past three years highlight significant deficiencies in the company's human resources, particularly in professional and technical knowledge, foreign language communication skills—especially in English—and overall capabilities These shortcomings stem from a lack of focus on training and development within the organization.
All employees have bachelor's and master's degrees.
Understanding customer psychology is crucial for effective customer care, as it directly impacts customer satisfaction and loyalty Many customers express dissatisfaction with the staff's attitude and their approach to handling issues, highlighting the need for improvement in service quality.
The company has not conducted annual training to enhance marketing skills, which is essential for sales employees They must possess in-depth knowledge of the company's products and services, demonstrate creativity and dynamism, and consistently research the market and customer needs Additionally, maintaining a professional service attitude is crucial for fostering customer satisfaction and trust.
Training, fostering and developing human resources is a decisive condition for the company to survive and develop in today's market.
Increase labor productivity, promote service quality development.
Improve the stability and dynamism of the company.
To enhance customer service, it is essential to collaborate with partners to develop training programs focused on negotiation, persuasion, and basic software skills for sales staff Additionally, a strategy for recruiting and training qualified new employees is crucial to meet customer needs Ongoing monitoring and evaluation of training outcomes will ensure that all personnel involved in the service delivery process are adequately equipped to provide excellent customer support.
Training sessions are essential for equipping transaction staff with fundamental software knowledge, enabling them to effectively advise and guide customers on new products and services Additionally, these training programs enhance the skills of sales personnel, ensuring they can meet customer needs more effectively.
- Improve the ability to explain and convince customers, telephone communication skills for employees, encourage them to improve their professional skills and foreign language skills.
- Develop a salary regime suitable to the level and labor effort.
- Continue to promote the training of human resources because this is a key factor related to the existence of the company, having a talent compensation policy.
- Motivating and raising awareness of employees who have a sense of building and developing company culture towards meaningful goals.
- Promptly encourage and reward capable and enthusiastic individuals at work, help employees get excited about working, thereby bringing higher work efficiency, contributing to improving service quality.
To establish and uphold a strong reputation for service in the after-sales department, it is essential to build a dedicated team of employees Fostering a professional corporate culture and creating positive working conditions will enhance employee satisfaction and performance, ultimately benefiting customer relations.
In addition, Mascom also offers a number of training methods:
1 Coaching: Through bringing up a problem or task with a manager, employees can find a solution or get a better way of working
2 Online learning: Employees study online
3 Evening Classes: Conduct training through holding evening classes
4 Discussion: A group of staff members self-training each other under the supervision of a coach – engaged in specific teaching, such as giving skills and methods, reviewing what likely to happen, consider the changes.
5 Study leave : Employee is paid a fee for attending the course and has received the course fee
6 Induction : The formal and informal method of helping a new employee to quickly settle into a job by introducing them to others, to the company.
7.Job shadowing : An employee observes other employees getting on with their work
8 Mentoring: In particular, many senior managers support an executive/manager/director by providing advice, support, and a forum for discussion.
9 Networking/seminars: Employees attend a seminar on a specific topic – this could be in- house, on the occasion of an industry event, or hosted by a training expert.
Number Form of training Time Training content
Training on products,policies, business strategies of the company, working style with customers, caring services before, during and after sales.
Business strategy, marketing strategy,customer psychology.
3.2.4 Estimated implementation cost and results
- Expense for Mr Nguyen Hoa Binh:
- Other expense (Food and beverage, documents ):
Training with Dr Pham Thanh Long at his center:
VND 500,000/person/session * 2 sessions * 20 employees = VND 20,000,000
With all the benefit this solution bring to company have been mentioned above, the profit is expected to increase 2% equal to VND 132.653.429
The rapid advancement of technology presents both opportunities and challenges for Vietnam, intensifying competition among businesses To thrive in this dynamic market, companies must enhance their capabilities and focus on effective marketing strategies that quickly inform consumers about their products After analyzing Mascom's marketing activities, I identified both strengths and weaknesses, leading to several proposed solutions aimed at boosting the company's competitiveness against established brands Acknowledging the limitations of my experience and knowledge, I welcome feedback from my teachers to refine my thesis, which has been greatly supported by Ms Pham Thi Thanh Huong.