Completing the mixed marketing strategy at viet a commercial joint completing the mixed marketing strategy at viet a commercial joint

Besides, the supply of products and services for customers at Vietnamese banks is now almost saturated, the products are almost no difference or small difference is insignificant, market

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

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NGUYỄN THU HẰNG

COMPLETING THE MIXED MARKETING STRATEGY

AT VIET A COMMERCIAL JOINT STOCK BANK

HOÀN THIỆN CHIẾN LƯỢC MARKETING HỖN HỢP

TẠI NGÂN HÀNG TMCP VIỆT Á

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN THU HẰNG

COMPLETING THE MIXED MARKETING STRATEGY

AT VIET A COMMERCIAL JOINT STOCK BANK

HOÀN THIỆN CHIẾN LƯỢC MARKETING HỖN HỢP

TẠI NGÂN HÀNG TMCP VIỆT Á

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG

HÀ NỘI - 2019

CAMPAIGNS

I pledge that this is my own research The content referenced and used the documents, information posted on the works, journals and reports are fully annotated in the catalog reference of thesis

Author

TABLE OF CONTENT

LIST OF TABLES i

LIST OF FIGURES ii

INTRODUCTION 1

CHAPTER 1: GENERAL THEORY OF MIXED MARKETING STRATEGY 5

1.1 The concept, goals, functions and role of marketing 5

1.1.1 Marketing concept 5

1.1.2 The goal of Marketing 5

1.1.3 Function of Marketing 5

1.1.4 The role of Marketing 6

1.2 Mixed marketing strategy 7

1.2.1 Product strategy 7

1.2.2 Product pricing strategy 19

1.2.3 Distribution channel strategy 21

1.2.4 Marketing communication strategy 22

1.3 The environment and the factors affecting the mixed marketing strategy 36

1.3.1 Environmental concept in marketing 36

1.3.2 Macro environment 36

1.3.3 Industry environment 38

1.3.4 Micro environment 40

CHAPTER 2: CURRENT SITUATION OF MARKETING STRATEGY AT VIETABANK 42

2.1 Overview of VietABank 42

2.1.1 About VietABank 42

2.1.2 Business results at VietABank 46

2.2 Environment and factors affecting the mixed marketing strategy at VietABank 50

2.2.1 Macro environment 50

2.2.2 Industry environment 51

2.2.3 Micro environment (internal field) 53

2.3 Current situation of mixed marketing strategy at VietABank 55

2.3.1 Product strategy 55

2.3.2 Product pricing strategy 63

2.3.3 Distribution channel strategy 67

2.3.4 Marketing communication strategy 69

CHAPTER 3: SOME SOLUTIONS TO COMPLETE THE MARKETING STRATEGY STRATEGY AT VIETABANK 74

3.1 VietABank's development orientation in the coming time 74

3.2 SWOT analysis of VietABank 75

3.3 Some solutions Marketing strategy at VietABank 75

3.3.1 Solution for product strategy 75

3.3.2 Solution on price strategy 78

3.3.3 Solution on distribution channel strategy 78

3.3.4 Solution of marketing communication strategy 79

3.3.5 Some other solutions 82

CONCLUDE 84

LIST OF REFERENCES 85 APPENDIX

LIST OF TABLES

Table 1.1 Popular promotional communication tools 24

Table 1.2 The content defines advertising goals 32

Table 1.3 Message types and examples 35

Table 2.1 List of mobilized products 55

Table 2.2 Customer satisfaction level for mobilized products and services 56

Table 2.3 List of credit products 57

Table 2.4 Customer satisfaction level for credit products and services 58

Table 2.5 Card transaction limit at VietABank ATM and POS 59

Table 2.6 Customer satisfaction level for card and banking services products 62

Table 2.7 Interest rate of mobilized products 63

Table 2.8 Interest rates for loans to science and technology 64

Table 2.9 Early repayment fee for individual customers 65

Table 2.10 Customer reviews of facilities at the service counter 67

Table 2.11 Staff assessment 68

Table 2.12 Customer reviews of service and transaction processes 69

Table 2.13 The main communication channels at VietAbank 70

Table 2.14 Customer reviews of information provided by the bank 72

Table 3.1 SWOT matrix 75

LIST OF FIGURES

Picture 1.1 Product structure 8

Figure 1.2 Four brand strategies hour 17

Figure 1.3 Illustration of Cocacola product packaging 27

Figure 1.4 Illustration of a Cocacola brand competition 29

Figure 1.5 Steps to define advertising goals 32

Figure 1.6 Process of determining advertising messages 33

Figure 2.1 VietABank's organizational structure 44

Figure 2.2 Chart of total assets growth of Vietbank 46

Figure 2.3 Chart of growth of Vietbank PBT 47

Figure 2.4 Deposit mobilization results 47

Figure 2.5 Lending activities 48

Figure 2.6 Mobilize capital 49

Figure 2.7 Odd debt 49

Figure 2.8 Structure of communication, advertising and marketing department 70

INTRODUCTION

1 The urgency of the subject

The bank is a highly developed industry in Vietnam, and it is estimated that in Vietnam today there are nearly 100 banks including foreign bank VietABank This number is not small compared to a developing country like Vietnam, which partly reflects the picture of the fierce competition of the banking market, not only maintaining existing customers, adding new customers and dominating the market share of competitors is always a top priority for banks

Besides, the supply of products and services for customers at Vietnamese banks is now almost saturated, the products are almost no difference or small difference is insignificant, marketing has become a strategic weapon to help banks create advantages in the market

As a small bank in the banking system, standing in the middle of a fiercely competitive market with many big banks, VietABank has made very solid steps and created its own position in the market In the last three years, VietABank has continuously expanded the system of transaction offices, marketing activities have also been promoted The development and completion of a proper marketing strategy has become a vital factor in the Bank's development

Therefore, to be able to stand firm and grow in the market requires VietABank

to answer the question: How to have a marketing strategy suitable to the market trend and highly effective

Along with the process of working, researching, researching directly marketing activities at VietABank, the author has chosen the topic "Completing the mixed marketing strategy at Viet A Commercial Joint Stock Bank" as his research topic, with looking forward to having a panoramic view of the current status of the mixed marketing strategy at VietABank as well as hitting and offering solutions to improve to enhance the effectiveness of the mixed marketing strategy in accordance with the characteristics of the Bank

2 Objectives of the study

Through mixed marketing tools for customers at VietABank, the project

evaluates mixed marketing tools and proposes some solutions to improve mixed marketing activities at banks effectively To accomplish those goals, the thesis

needs to have the following tasks:

Overview of research on marketing tools, Establishing a rationale for building

a mixed marketing tool

Status of mixed marketing tools of Customers at VietABank

Proposing a number of solutions to build effective customer mix marketing tools at VietABank

3 Research subjects

Research topic of mixed marketing strategy at Viet A Commercial Joint Stock Bank In particular, the topic focuses on 04 basic elements of mixed marketing: product strategy, price strategy, marketing communication strategy and distribution channel strategy at Viet A Commercial Joint Stock Bank

4 Research scope

The research thesis in the space and time is specifically as follows: About the research space of the topic, focusing on mixed marketing strategy towards individual customers at VietABank; Regarding the research time in the thesis, the author focuses on collecting, researching and using secondary and primary data related to activities related to mixed marketing strategy of Viet A Commercial Joint Stock Bank in the last 3 years, from 2016 to 2018

5 Research Methods

5.1 Methods of data analysis

This method is through data collection and information activities at the websites of banks and documents on the world market These data sources include: fundamental theories related to research topics such as marketing activities, marketing activities tools at domestic and international banks, domestic and national scientific studies Internationally on this topic, domestic and foreign articles and conference materials, statistics related to domestic and international marketing activities

5.2 Field survey method

Subjects of the survey: (1) management staff and specialized in marketing activities in departments in VietAbank such as: Individual Customer Division, PR Marketing Department and Public Relations, Relationship Specialists personal customers ; (2) Existing individual customers

Survey sample and sample selection: The selected survey sample ensures full objective and honest factors in the survey process

Survey: The survey to test hypotheses from the research model, the author will design and distribute a quantitative questionnaire to the survey subjects The survey will include general research information, questions around the content of marketing programs and mixed marketing tools

5.3 Professional solution

Use ask, exchange and consult with some marketing experts

5.4 Data analysis method

Using the survey method, interview with survey questionnaires Data is analyzed by a number of statistical methods such as: Descriptive statistics, linear regression analysis, surveys through interviews with experts, Customers

5.5 Group discussion method

Using this method to describe the ideas, views, and arguments of each

individual in the group for the purpose of mobilizing collective intelligence about marketing, marketing programs and marketing tools at banks

6 The expected results of the topic

- Systematizing the basic theoretical issues about mixed marketing strategy at VietABank

- Evaluate the status of mixed Marketing Strategy at VietABank

- Proposing a number of solutions on the mixed marketing strategy of VietABank and helping the bank have the advantages of products, services, competitive prices and highest profits in the target market

7 Structure of the thesis

In addition to the thanks, the opening words, the conclusions, the thesis is structured into 03 chapters, summarizing the content of each chapter is presented below:

Chapter 1: General theory of mixed marketing strategy

Chapter 2: Current situation of mixed marketing strategy at VietABank Chapter 3: Some complete solutions for mixed marketing strategy at VietABank

CHAPTER 1: GENERAL THEORY OF MIXED MARKETING STRATEGY

1.1 The concept, goals, functions and role of marketing

1.1.1 Marketing concept

Along with the general development, according to the marketing timeline, there are many different concepts, the author cites Philip Kotler's concept (2007, p.33): "Marketing is a form of human activity to satisfy needs and wants through exchange Or, Marketing is: Needs, wishes, requirements, goods, exchanges, transactions and markets Philip Kotler's Marketing concept is based on core concepts such as: Needs, wants and requirements, products, values, costs and satisfaction, exchanges, transactions and relationships, marketing School, Marketing and people who do marketing

1.1.2 The goal of Marketing

The important goal of marketing is to satisfy customers' needs, it is also seen

as a vital issue of every business in the current competitive context Marketing efforts to meet customers' needs, make them satisfied, loyal to the business, thereby attracting new customers Besides, marketing is seen as a winning solution in competition Marketing solutions help businesses cope well with competitive challenges, ensuring favorable competitive position in the market Finally it contributes to the organization's long-term Profit target Marketing creates the necessary profit to help businesses accumulate and grow

1.1.3 Function of Marketing

The basic function of Marketing is based on the environmental analysis to manage Marketing, namely: (1) Environmental analysis and marketing research: Forecasting and adapting to environmental factors affecting the success or failure; (2) Collection of information to determine marketing issues Expanding the scope of activities: Selecting and offering ways to penetrate new markets; (3) Consumer analysis: Review and evaluate the characteristics, requirements, and buying process of consumers; Select consumer groups to direct marketing efforts; (4) Product planning: Develop and maintain products, product lines and collections,

product images, brands, packaging, weak product removal; (5) Distribution planning: Building relationships with distribution intermediaries, stockpiling management, inventory, transport and distribution of goods and services, wholesale and retail; (6) Promotion planning: Communicate with customers, the public and other groups through forms of advertising, public relations, personal sales and promotions; (7) Pricing: Determining prices, pricing techniques, terms of sale, adjusting prices and using prices as a positive or passive factor; (8) Implementation of Marketing control and evaluation: Planning, implementing and controlling programs and marketing strategies, assessing the risks and benefits of decisions and focusing on comprehensive quality

1.1.4 The role of Marketing

In an organization's business, Marketing plays a very important and specific role: First, marketing is the bridge between buyers and sellers Marketing helps sellers understand the true needs of buyers in order to satisfy them optimally Based

on the organization's goals, managers will develop an appropriate marketing activity program that includes analysis of marketing opportunities, research and selection of targeted markets, Design Marketing strategies, plan Marketing programs and organize implementation and test marketing efforts

Second, marketing activities engage in solving the basic economic problems

of business operations First, it is necessary to identify the type of product that the company needs to provide to the market Second, well organized product supply process The process of providing products of enterprises with the simultaneous participation of three technical infrastructure facilities, direct staff and customers Thirdly, to harmonize interests between customers, employees and management Good resolution of the above problems is not only a driving force to strongly promote the operation of the business, but also becoming a tool to maintain and develop the relationship between businesses and customers

Third, marketing activities become a bridge connecting business activities with the market One of the important tasks of Marketing is to create a competitive position in the market The process of establishing a competitive position of

enterprises is closely related to the creation of products in the target market Specifically, Marketing needs to create the uniqueness of the product Second, clarify the importance of differences for third visitors, making it possible to maintain the advantage of differentiation Through clearly identifying and maintaining the advantages of differentiation, Marketing helps businesses grow and increasingly improve their competitive position in the market

1.2 Mixed marketing strategy

According to Nguyen Bach Khoa (2011), mixed marketing is understood as a coordinated orientation of controllable marketing variables that businesses use in a continuous and synchronous manner to pursue a selling force and projected profits ants in a key market identified Mixed marketing includes all the coordination that businesses can choose to affect to market demand Thus, there may be different types of mixed marketing In this thesis, the author approaches the mixed marketing strategy based on 4 factors, namely: product, price, marketing communication, and distribution channel Each element in mixed marketing plays a very important role Therefore, combining elements (4Ps) into a consistent and consistent one is a vital issue for planning and implementing the Bank's business strategy in general and mixed marketing strategy in particular

1.2.1 Product strategy

1.2.1.1 Product concept

Product is anything that can be put on the market to create attention, purchase, use or consumption to satisfy a need or desire It can be objects, services, people, places, organizations and ideas

1.2.1.2 Structure of the product

Picture 1.1 Product structure

Most products are structured at five levels: core benefits, general products, expected products, finished products and potential products

a Basic level is the core benefit: The basic service or benefit that customers buy For example, for a raincoat, customers buy "dry"; for a perfume bottle, customers buy "a hope"; For a nature tour, customers buy "relaxation and a fresh atmosphere" The trader must consider himself a supplier of benefits

b General product: The basic form of that product So a hotel must be a building with rooms for rent Similarly, we can recognize other products such as a car, a medical examination, a concert,

c Expected product: Is a set of attributes and conditions that buyers usually expect and approve when they buy that product For example, guests coming to the hotel expect to have a king-size bed, soap and towels, a telephone, a wardrobe for storage and a relatively quiet level Since most hotels are able to meet this minimum desire, tourists are not biased towards any hotel that will enter any of the most convenient hotels

d Finished products: A product including services and additional benefits that make the products of the enterprise different from competitors' products For example, the

hotel can complete more of its products by equipping television sets, replenishing shampoo and fresh flowers, quick check-in and check-out services, etc In developed countries today Competition mainly takes place at the level of product perfection According to Levitt, the new competition is not between what companies produce, but between what they add to their products in the form of packaging, services, advertising, customer advice , sponsorship, delivery agreements, warehousing and other things that people value However, the completion of the product leads to the additional cost of the business So the trader needs to consider whether the customer will accept to pay more to get the finished product and the business can afford the extra cost Moreover, additional finishing benefits will quickly become the expected benefit Guests staying at the hotel expect

to have a television, shampoo and other facilities Therefore, businesses must seek new features and new benefits to complement their products In addition, while companies raise their finished product prices, competitors can return to selling products at a basic level

e Potential products: These are the perfection and transformations that the product can have in the future While the finished product demonstrates what has been included in the current product, the underlying product only points out its possible development direction So businesses actively look for new ways to satisfy customers and make a difference for their products

Thus, the product includes many attributes that satisfy the different needs of customers In other words, when buying a product the buyer desires to satisfy both a chain of needs, and those needs are closely interrelated in the process of deciding to buy from customers

1.2.1.3 Product hierarchy

The products are interrelated and form a hierarchy that spreads from basic needs to specific items used to satisfy those needs

a They demand: Basic needs are the foundation of their products

b Product family: Including all product classes can satisfy a core need with certain efficiency

c Product class: A product group within the same family of products that is

recognized as having a certain functional relationship

d Product type: A group of products in the same product class that are closely

related to each other because they work the same or are sold to the same customer group, or sold at the same type of market, or located in the same price scale

e Product type: These are items in a product category that have one of the possible

forms of the product

f Brand: A name associated with one or more items in that product category, used

to identify the origin or nature of the item

g Item: Is a separate unit in a brand or product type that can be distinguished by

size, price, form or attribute Items are also called storage units or a product plan

1.2.1.4 Product classification

There are many ways to classify products, here the topic introduces two main classification methods: according to the durability of the product (durable goods, unstable goods and services) and the purpose of using products (consumer goods , capital goods)

a Durable goods, unstable goods and services

Durable goods: These are specific goods that are often used many times For example, machinery, clothes, motorbikes Durable goods often require direct selling and more services, higher profitability and require the seller to ensure more Non-durable goods: Specific goods that usually only pass a few times For example, beer, soap Due to fast consumption characteristics and frequent shopping, sellers must ensure that buyers can earn them in many places, carry out strong advertisements for promotion Encourage customers to try and create interests

Services: Various activities or ways of satisfying the needs offered The services are versatile, easy to change, not specific, indivisible, production and consumption take place at the same time For example, hair repair and cutting For this type of product that requires more quality testing, the supplier must have more credit and adaptability

b Consumer goods

Based on the shopping habits of consumers, it is possible to divide consumer goods into

Easy-to-buy goods: are items that consumers often buy, do not need to worry about thinking and take a little time to compare them Including: goods used regularly are purchased regularly to satisfy essential needs (food, food, .); buy goods are not planned beforehand and are often sold in many places, consumers never have to search (cigarettes, newspapers, magazines .); Buy goods when making urgent demands (umbrellas or rain gear, )

Selected goods: These are items that in the process of selecting and purchasing consumers often compare the suitability, consider the usage criteria, quality, price and style Wallet For example, interior decorations, clothing, motorcycles Sellers must ensure a variety of categories to meet different personal tastes and need well-trained salespeople to provide information and advice to customers

Special products: Is the type of goods with unique or special brand that the buyer is willing to give up his efforts to find it For example, trendy goods, stereo stereos, photographic equipment, etc Special goods do not usually make buyers compare but they only look for sellers who have that item Therefore, sellers must find ways to let future buyers know their location Purchases based on passive demand: These are items that consumers do not know, or know but do not think about buying For example: life insurance, grave land, Encyclopedia,

c Capital goods

Classifying the right means of production will help to design appropriate marketing strategies in the capital goods market The means of production can be classified according to their participation in the production process and their relative value Includes: supplies and removable parts, equipment, supplies and services Materials and removable parts: are goods that fully participate in the manufacturer's products They include two types: materials, materials and parts For agricultural materials often purchased through marketing intermediaries, the collection, sorting, storage, transportation and sale work Mineral materials and spare parts are often purchased directly from manufacturers in large quantities and

at low prices Affordable pricing and distribution are the main factors for buyers to choose

Equipment: These are goods that have a long time of use for the production of products or management of finished products (generators, punches, computers, elevators )

Spare parts and services: These are items that do not enter the finished product Additional supplies such as lubricants, printing paper and ink, etc are often sold through intermediaries and manufacturers often buy them by way of re-ordering Services such as maintenance and repair, legal advice and management advice are usually done under contracts

1.2.1.5 Product brand

a Concept

Brand: is a name, term, sign, symbol or style, or a combination of those that identifies the goods or services of a seller or group of people and distinguishes them from products of competitors

Nickname (Brand Name) is a readable part of the trademark, such as Biti’s, Chervolet, Disney, Hai Van, Halida

The mark (Brand mark) is a part of the brand but not readable, as a symbol, a pattern or a distinctive typeface and color, as the three-pointed star in a circle of Medcedes is stylized car steering wheel, eagle wings and bold strokes with Honda's red legs, or BP yellow on British Petrolium green,

Trademark (Trademark), referred to as a trademark, is a trademark or part of a trademark protected by law to avoid counterfeiting Trademarks protect the legal rights of the seller in using the trademark or registered mark of the seller

b The meaning of the brand

Branding is a promise of a seller to ensure that a buyer has a certain set of properties, benefits and services Reputable brands include a guarantee of quality Brand is a complex symbol Marketers offer six levels of brand meaning:

(1) Properties For example, Medcedes reminds us of very characteristic attributes such as expensive, luxurious, prestigious, perfect design and durable,

(2) Benefit Customers do not buy attributes but buy the benefits they bring Attributes need to be able to turn into benefits For example, durable properties give

a sense of saving, a perfect design attribute for feeling the safety behind the wheel (3) Value For example, the Medcedes brand speaks of the value that many buyers seek, which is perfection, safety, and prestige

(4) Culture The manufacturer's brand represents a certain culture Medcedes represents German culture: organized, efficient and high quality

( 5) Personality Brand represents a certain personality Medcedes gives us an image of an owner not inferior

(6) User The brand also shows customers buying or using a product, if the user knows how to respect the value, culture and style that the product represents Be aware that buyers pay attention to the significance levels of the brand to varying degrees They often value the benefits, values and character more than the attributes

of the product Moreover, along with the time attributes will lose its highly valued value A brand with a high reputation, the higher the customer loyalty to it, the higher the level of known and higher quality As a property, a brand should be carefully managed This requires maintaining or constantly improving the level of brand awareness, quality of recognition and its use These jobs also require constant investment in research and development, effective advertising, ensuring excellent commercial and consumer services

c The need to put a brand on the product

First of all, businesses must decide whether to label their products Historically most of the original products were not branded Producers and intermediaries sell directly and have nothing to determine who the supplier is The first forms of branding were due to the efforts of medieval guilds that forced workers to build manufactured brands into their products to protect themselves and

to prevent consumers from buying quality goods least

Today's branding has become so popular that it is difficult for any product to

be unbranded Salt is also packed into the manufacturer's own package, the orange

is stamped by the grower, and the common canopy-lozenge also plays in the

distributor's cellophane paper, car accessories like spark plugs , tires, filters are all different from the name of the car company

There are a number of issues when considering product branding: why branding? Who does it benefit? Costs for branding? To clarify these issues, consider the views of the parties involved in the labeling

Buyers' point of view, some buyers claim that branding is a tool for sellers to raise prices But most buyers want the product to be branded because it is beneficial Brands help buyers know a part about product quality Branding helps increase buyers' efficiency Brands help buyers identify new products that may be helpful for coughing

The seller's point of view, why does the seller have to think about placing a brand when it is certain that it will increase the cost: packaging, labeling, protection registration? Give the seller many benefits Brands help sellers easily process orders and find problems quickly The manufacturer's trademark and trade mark guarantee

a legal protection for the unique characteristics of the product, which is easily imitated by competitors Branding helps sellers have the opportunity to attract loyal and profitable customers The loyalty to the brand also protects the seller in competition and can better control the mixed marketing planning Brand helps sellers sell market segments P & G instead of selling just one kind of detergent, it was able to launch ten categories, each with different formulas and targeting specific markets Good brands help businesses get a good image in their minds If the product carries the brand of the business itself, it helps to advertise the quality and scale of that business

Social and social views have two different types of opinions about branding issues Proponents of branding claim that branding will require higher and more consistent product quality Branding is a promise to customers about satisfying their desires It poses a requirement for sellers to pay more attention to improving the quality of the brand Branding motivates manufacturers to enhance innovation, find new features to improve their products, and create more items, diversifying customer choices The brand increases buyers' performance, as it provides them

with more information about the product and tells where to look for it Some others criticize that branding produces a false and unnecessary distinction between goods, especially homogenous goods Branding raises prices, because increased advertising, packaging and other costs are a burden on consumers Placing a brand deepens the sense of people's status, they buy certain brands just to "dread" with others

In summary, any problem has two sides, but from the above analysis, we see that branding is very necessary due to its benefits for sellers, buyers and society

d Decision on the name of the brand

In deciding on a brand, the producer has three choices of brand names Products can be launched with the manufacturer's trademark Or producers can sell products to an intermediary who will place a private label (also known as a distributor's brand) Or producers can leave part of their branded products and others with the distributor's own brand However, in recent times in developed countries, big wholesalers and retailers have developed their own brands

Distributor-branded goods are usually priced lower than manufacturers' branded goods, thus attracting less-expensive customers, especially during the inflation period The intermediaries are very interested in advertising and displaying their branded goods

As a result, the previous advantage of the manufacturer's brand has weakened

e Decision to choose a brand name

Producers who label their products must also consider brand naming There are four possible brand name strategies to consider:

Name of individual brand

- Common name for all products

- Full name for all products

- The brand name of the business comes with the specific name of the product Each brand name strategy has different advantages and disadvantages for manufacturers, so it should be based on the characteristics of the business, target market and competitive characteristics to make the right decision Choosing a specific brand name for a product is a difficult and complex job due to the importance of brand names in business, marketing and competition Therefore, be

careful and serious when deciding on the brand name Enterprises can refer to the following practices by major firms in developed countries when selecting brand names for products:

- Define goals and standards for brand names - Suggest a list of brand names that can be used - Select some brand names to perform the test - Perform testing and collect customer reactions on these established brand names - Research whether selected brand names can be registered and protected by law - Choose one of the names that has been filtered as a brand name for the product

Equirements for a good brand name:

- It must say something about the benefits and quality of the product

- Easy to read, recognizable and easy to remember

- It must be unique

- Translating into foreign languages is easy

- Can be registered and protected by law

f Decision on brand quality

While deploying a product brand, the manufacturer must choose a quality level and other attributes to support the positioning of the brand in the selected market Quality is one of the major positioning tools of marketers, demonstrating the ability

of a brand to fulfill its role Quality is the combination of durability, reliability, ease

of use, ease of repair, accuracy and other valuable attributes of the product Some of these attributes can be measured objectively From a marketing standpoint, quality must be measured according to buyers' perceptions Most brands, starting with one

of the following four quality levels: low, medium, high and good The fact shows that the profit level increases according to the quality of the brand, and the most effective is at the high quality level However, if every competitor is targeting high quality, this strategy is also less effective Quality must be selected in accordance with each target market segment

g Deciding brand strategy

Brand strategy requires making appropriate decisions about product category expansion, brand expansion, and use of new brands and brands

Figure 1.2 Four brand strategies hour

Expand the product category An enterprise can expand the product category

by adding new product categories under the same brand name, such as new items, new colors, new flavors, new ingredients or new packaging size, Most new product development activities are essentially expanding product categories Due to excess production capacity, some businesses find ways to add new items, and create conditions to meet customers' desires on variety of products Or some businesses expand their product categories to compete with successful competitors to expand their product category

Expanding the product category may also face risks, such as making the brand name lose its special meaning, or the expansion of the product category may not guarantee sufficient cost develop and promote them or reduce consumption of other items of the same type, thus causing business losses

i Brand extension The decision to expand the brand is any attempt to use a successful brand to launch new products or innovative products For example, Honda uses its company name to promote various products from cars, motorcycles

to lawn mowers, boat engines and water pumps Expanding the brand saves manufacturers a costly cost of advertising a new brand, and the new product is still quickly accepted by the market because the brand is known However, if a new product with a brand name has been successful without satisfying the customer, it will lose customers' sympathy for other products of the same brand A multi-brand strategy is the deployment of two or more brands in the same product category

(such as P & G firms that make changes to their soap products) Manufacturers use this strategy for a number of reasons First, they can occupy more space on the store, making retailers more dependent on their brands Second, few customers are loyal to a brand so much that they don't want to try another brand The only way to attract these changing customers is to launch many brands Third, many brands will stimulate productivity and dynamism among those involved in the production and distribution of different brands of the business Fourth, the multi-brand strategy locates different benefits and levels of attraction, in which each brand can attract a number of different supporters

j Use new brands In the case of businesses offering new products but none of the brands in use are appropriate for them, a new brand is required Different from branding for the first time for the product, the company has set a new brand for the new product type to consider whether the number of existing product brands is already large enough, have fully exploited the labels whether or not the brand is available, whether the cost of establishing a new brand is likely to be offset and whether the consumption is profitable,

k Decisive re-positioning the brand

Along with changes in consumer demand, tastes and behavior of businesses and competitors, a product brand, despite being well positioned in the market, then Manufacturers also need to reposition it Competitors may have launched a similar brand and entered the market share of the business Or the customer preference has changed, making the brand demand level no longer high Marketers must think about repositioning existing brands before introducing new brands In this way, they can exploit the recognition of existing brands and customer loyalty created by previous marketing efforts Repositioning of a trademark may require a change of both its product and its image, or it may be possible only by changing its image When repositioning a product brand, marketing managers must be careful, do not lose the trust of customers who are loyal to their brands, so they can retain their old customers while still attracting more customers A new customer A good example

of successful brand repositioning is Seven - Up, a lemon flavored beverage for the

elderly Seven - Up is repositioned as a fresh and refreshing beverage that does not contain cola (cola) to counteract cola So Seven - Up has created a new way of looking for consumers about soft drinks and leads the way in non-cola

1.2.2 Product pricing strategy

1.2.2.1 Pricing concept

Valuation is a key factor for a product to enter and shape the market If valuation is too low, consumers will equate that company's products with poor quality products On the contrary, if the product price is too high compared to the value of use as well as the consumer psychology of the market, it also makes the product impossible to penetrate and survive long in the market There are many different views on prices:

According to the value doctrine, the price is expressed in terms of the value

of goods and represents a great relationship in the economy

From the buyer's point of view: price is the amount of money that they have to pay to receive a certain amount of goods or services to be able to use or possess such goods or services In the opinion of the seller, the price is the income or revenue they receive when consuming a certain unit or quantity of products Product prices are also a powerful force to influence consumers' buying decisions Valuation, therefore, becomes a top concern for businesses In many cases, valuation determines the success or failure of a product of the business

Product pricing is also a direct solution to affect product positioning in the market Price is not constant over time throughout the product life cycle

1.2.2.2 The importance of pricing

The price of products depends on and is influenced by many factors from raw materials, production technology, labor to supply and demand relations, consumer trends, economic policies Pricing of products also affects Product positioning in the market Prices fluctuate throughout the product life cycle and become an important feature in marketing strategy planning Basically, pricing strategy is the choice of selling price in the market This is based on a complete analysis of the supply-demand relationship and payment level of the target

customer Valuation is closely correlated with business positioning strategy The pricing strategy is almost an integral part of the marketing strategy Along products, distribution, marketing, pricing strategies help businesses create a suitable positioning for the long-term development of the company

a Valuation method There are many methods of pricing in marketing, however, they are classified into 3 groups: Firstly, Group of methods of valuation based on production costs: Method of costing plus cost (markup pricing or cost-plus pricing): According to this method, product prices will be calculated according to the formula: Product price = Production cost of 1 product unit + 1 profit margin / each product Advantages: this method is easy to use, but there are disadvantages that users often do not pay attention to supply, demand and competition levels This method is suitable for small businesses Break-even point pricing method: According to this method, product prices will be calculated based on the formula:

Fixed costs Capital

regulation point = Product price - Variable cost for 1 product unit Or:

Fixed costs

Capital regulation point = + Variable cost for 1 product unit Breakeven point

Break-even point is the amount of sales at which product revenue is equal

to the total cost of the product After the sales of that product reached breakeven point, the business started to make profit This method is suitable for businesses that mass produce household goods, garments, in large quantities This method is difficult to use in determining the breakeven point Determining too low a breakeven point will lead to overpricing or too high breakeven points that will lead

to low valuation (underpricing) Enterprises should also calculate the supply, demand and competition level to determine their own reasonable breakeven point in order to achieve the highest profit

Break-right point is the numerical value of the sequence that from the manufacturing business has an integer value of the value After the results of the work have been successfulbreakeven points, the created business to create profit How this method is not valid for agents, can create a row of goods, garments, in large numbers This file cannot be used in defining the scope of entertainment Determining too small an freed range will result in overpric or too high freed points that will be shifted to Low value (Underpricing)

Entrepreneurs should identify offers, Demand and top level to determine option of breakeven option when working to make maximum success

Third, Group of competition-based pricing methods:

Competition-based pricing methods: Under this method, enterprises will consider the price of competitors' products, then set a lower, higher, or equal price depending on the market situation Note: Enterprises can combine many methods to determine the best price, but not necessarily choose a single method

1.2.3 Distribution channel strategy

According to Nguyen Van Thi (2006), the Distribution Channel is a collection of organizations and individuals on duty to bring products from manufacturers to end consumers, including manufacturers, wholesalers, retailers , agents and consumers Here, we need to clarify the difference between the distribution channel and the distribution form If the distribution channel only gathers organizations and individuals, meanwhile, the distribution method is only the way customers buy: buy directly at agents, shops, offices (brick and mortal) to buy through phone or Internet (click and mortal) Regarding the type of distribution channel, there are two main and specific channels: One is the direct distribution channel is the distribution channel in which participants only have manufacturers and consumers Goods produced will be distributed directly to consumers without going through any distribution center Secondly, indirect Distribution Channel is a distribution channel using distribution intermediaries The distribution center here is understood to be one or more organizations and individuals, playing a role as a bridge between manufacturers and consumers in product distribution In fact, the

distribution center can be a retailer, wholesaler / wholesaler, a stork dealer (agent & broker) In fact, the choice of indirect distribution channels comes from optimizing the manufacturer's resources Manufacturers often cannot afford to invest in wide distribution activities in many areas, and when focusing on investing in production, their field of expertise will be more effective Meanwhile, distribution centers, with

a high degree of specialization, will contribute financial, ground, local market knowledge and sales experience to the distribution process, resulting in better distribution results

Depending on the type of production and business of each enterprise, each sector in which business leaders will determine the most appropriate distribution channel strategy There are differences between the distribution channels of consumer products and industrial products, the distribution channels of industrial products do not have retailers because industrial customers often buy in large quantities Meanwhile, service providers often use multiple distribution channels simultaneously to create more sales points for their services The main task of a service delivery system is to expand the number of points of sale or access points, away from the service location to be implemented Another important task of service delivery is to facilitate the purchase

of products before they are manufactured

1.2.4 Marketing communication strategy

a Communication rights concept concept

Communication strategy is an extremely important activity to bring products to consumers When developing a communication strategy, it is necessary

to answer the questions: How does communication work? When building effective

marketing communication programs, what are the main steps? Who is responsible for planning maketing communication?

b Communication target

Awareness building Make potential customers aware of your presence and the product you offer, the purpose of which is when the customer has a need for the product or service you provide, immediately the customer remembers immediately Your brand, product

Informational (informational) Informing the market, customers know about new products, introduce a new product to the market Introduction, description of services available Bending misconceptions Build a special image

Persuasive Change the perception of the nature of the product Adjust customer attitude and behavior Stimulate demand (convince customers to buy products right away) Convincing potential customers to receive more information

Reminder (remiding) Remind customers that in the future they may need products / services Remind customers where products are sold Maintain customers' awareness of products / services at the highest level Within the product / service group considered, consider

Brand building (brand building) In these types of media, the brand is present very clearly and what people want to say through the brand is also expressed in a very clear way And in addition there may not be any other details (eg address )

Change perception These types of media are responsible for changing the perception of business from one to another If you succeed, you can say: When I think about the XXX brand, I think of YYY immediately They transmit strong messages and positioning assertions Sales (sell a product) There is usually something "right" If it responds, there will be reward and the response is maximized Goals against competitors (competition) Widely used in car advertising, computer advertising any industry where customers are susceptible

to product highlights Be careful with this type of communication because it is easy

to be accused of deceiving customers

c Popular communication / promotion tools

Advertising: Any form of referral indirectly and promotes ideas, goods or services performed by the sponsor to pay

Direct marketing: Use mail, phone and other indirect communication tools

to inform existing customers and prospects or ask them to respond

Stimulate consumption: Short-term bonuses to encourage trial or purchase

of a product or service

Public relations and propaganda: Different programs are designed to promote and / or protect the image of a company or its specific products

Direct sales: Communicate directly with prospective customers for sales purposes

Table 1.1 Popular promotional communication tools

ADVERTISEMENT

STIMULATE CONSUMPTION

OUR RELATIONSHIP

SALES

DIRECT MARKETING

ublications and radio Exams, games,

fishing, lottery

Press Conference Sales

demonstration

Catalog Send mail

Outer packaging Ordinary and gifts Talk Sales

conference

Marketing by phone

Packaging in Offer form Seminor

leaflets

Charitable contributions

Buy and sell via TV

Posters and loose

sheets

and exhibitions Re-advertise Normal votes Relations with the

community

Pan slave Whittle away

financing

Lobby

Display at the store Reception Homogeneous

environment Less money

exchanging old goods

Audiovisual materials Coupon Magazine of the

company Icons and logos Sale with discount Events

Source: Author's synthesis

d Steps in the communication process

Now we will study the key steps in the process of developing a comprehensive communication and promotion program The communicators must:

Detecting target public,

Identify communication goals,

Message design,

Select media channels,

Distribution of total promotion budget,

Decide the system of promotion measures,

Evaluate promotion results,

Manage and coordinate the entire marketing communication process

1.2.4.2 Sales promotion strategy

a Promotional tools

The first is a discount card (coupon):

Help restart a downhill brand

Help increase market share in a short time

Activate customer attention to the brand

Help you reach countless customers in a short time

Minimize loss of customer confidence

Second is a trial product: Distributing a free trial product is a powerful means of boosting sales for an existing product, or for a new brand Even if there are no other promotional or promotional efforts, 33% of people who get a piece of a trial product for a new brand tell their friends and family about the brand

Tuesday is Gift: Gifts are another means to pull guests to the store If the promotion is by giving a gift, make sure it's a surprise gift Curiosity is one of the most motivating motives in terms of human instincts

Fourth is Discount: Product price is a key factor in marketing That is what makes customers decide whether to buy or stay away from your product A study by Cahners Advertising Research Report shows that 98.7% of customers are affected

by the price when they buy a product

Thursday is special packaging: Use packaging to promote your product whenever possible During the holiday period in late 1990, Coca-Cola sold a bottle for that year's holiday in a 6-bottle package, printed with Santa's image on the bottle This form continued to be applied for many years later in the form of cans and large plastic bottles During Christmas, Anheuser-Busch changed its usual packaging design to 12 bottles and 24 Budweiser bottles with images of Clydesdale race horses standing in the snow But "only established brands have the ability to juggle with their registered packaging details," said Howard Alport of Lipson-Alport-Glass & Associates

Figure 1.3 Illustration of Cocacola product packaging

Don't forget to check your product packaging before launching it Magic Summer promotion in 1990 (temporarily translated "Summer wonder"), one of the largest campaigns in the history of Coca-Cola, was abruptly discontinued when

"promotional equipment" was around 750,000 This can of carbonated beverage can

be problematic This device should have sprung up with prizes such as cash or a winning certificate worth $ 5 to $ 200 when opening the can, but at times it had been deflated instead of bursting

The Taco Bell chain had to recall 300,000 plastic bottles after discovering that a child had removed the upper body of the bottle himself and tried to swallow the bottle Hardee’s Food Systems also voluntarily recalled 2.8 million promotional toys after some kids tried to swallow the toy's battery

The latter is free and included: When prices are getting more expensive, ads with free products ("Buy 3 get 1 free") and other special offers (such as donating free conditioner fee with shampoo ") will attract many" gods "

Saturday is the loyalty program:

Saving stamps is one of the first loyalty programs Sperry & Hutchinson Retail Group introduced the S&H - S&H Green Stamps Green Stamp - in Jackson,

Mississippi in 1896 for the purpose of simply rewarding customer loyalty When the number of stamp points is fixed, consumers can exchange items in a catalog according to their regulations without paying Food manufacturer General Mills introduced the way to calculate Betty Cocker bonus points in the 1920s In the 1950s, tobacco manufacturing companies started loyalty programs by including coupons in drug packages

The loyalty program began to flourish in the 1980s Airlines are the first companies to realize the potential of this move The loyalty program was also created and in the mid-1980s by many major hotel chains such as Marriott, Holiday Inn, Radisson and Hyatt A Radisson study found that 70% of all surveyed tourists are affected by promotions under this method

Today, it is calculated that up to 60% of the Canadian population has a loyalty card, while nearly 70% of US buyers have at least one loyalty program Loyalty programs are based on a basic argument that 80% of total revenue comes from 20% of total customers, regardless of program form A company can guarantee financial targets if it attracts 20% of these customers

Loyalty programs such as Air Miles, Optimum and Airplane in Canada not only help boost the company's revenue, but also help the company better understand its customers Zellers has maintained its loyalty program for nearly 15 years Club Z has nearly 10 million member customers, of which 7.6 million members make regular purchases every month

Canadian Tire's loyalty program with its own currency Canadian Tire is another example of a unique and effective plan that began in 1958 Customers return to the store and buy up to 80% of the printed money Its special It is estimated that there is a special amount of this printing money worth about 200 million Canadian dollars in circulation Cash can be replaced with stamps In both cases, the idea is still the same: bring customers back to their store or product

Eighth is to organize contests:

Organizing competitions is the most exciting promotion method to apply to customers Contests make people more willing to use newer products and enjoy

them more Even in recent years, many companies have offered specific and valuable prizes such as jewelry, cash, cards, boats to attract a large number of customers to participate

Figure 1.4 Illustration of a Cocacola brand competition

However, if you want to make a promotion like this, don't make the mistake of companies like Kraft, Anheuser-Busch and Maytag, they have printed too many lucky votes In 1993, the UK branch of Maytag could not avoid disaster when it offered free tickets for customers who bought at least 150 dollars - and there were 200,000 customers who submitted registration forms for tickets This free flight

Pepsi-Cola struggled with 800,000 winners in the Philippines when the company put out a winning number in a competition The incident became so serious that the company faced violent protests Pepsi finally solved this problem by paying $ 20 for each person with a winning number

In addition, you must also ensure that there will be a reasonable number of winners in your program For example, Coca-Cola's promotion in 1992 at the Olympics did not have a winner This will cause consumers to lose faith in the competition and be indifferent if your company organizes any contest later

1.2.4.3 Advertising strategy

a Advertising concept

Advertising is a form of paid propaganda to conduct the introduction of information about products, services, companies or ideas, advertising is a direct

communication between people and people in which the person wants The media must pay the mass media to make the information persuasive or influence the recipient of the information

b Types of popular advertising

Brand advertising: Branding advertising to build an image or awareness of

a brand in the long run The content of this advertisement is often very simple because it only emphasizes on the brand itself

Local advertising: Local advertising mainly informs customers that the product is at a certain point of sale to entice customers to the store (such as the opening ad of the store or the advertising of the supermarket)

Political advertising (political advertising): Politicians often make advertisements to convince voters to vote for themselves or to support their opinions and ideas American presidential campaign campaigns are a good example

Directory advertising: This is a form of advertising to guide customers how

to buy a product or service (such as the yellow pages directory)

Direct-respond advertising: This form of advertising is intended to sell goods directly, customers who buy products just call or email, products will be delivered to the place

Business market advertising (Business-to-business advertising): This type

of advertising is targeted at buyers who are businesses and companies, not consumers Such as advertising products that are raw materials for production, or products that are only used in factory offices

Advertising company images (institution advertising): This type of advertising aims to build awareness of an organization, or win the hearts or support

of them for a company or organization (such as advertisements by UN organizations, or advertisements by tobacco companies to make the company's image more public-friendly)

Public service advertising (public service advertising): Usually advertising support for government programs and campaigns (such as birth planning, traffic safety )

Interactive advertising (interact advertising): This is mainly internet advertising activities aimed at individual consumers Often consumers will respond by clicking on the ad or just ignoring it

c Media and advertising

- Advertising on transport vehicles

- Advertising through business directory publications

- Advertising on leaflets, posters, panels or banners

- Advertise on product packaging

- Advertising via direct mail

- Word of mouth advertising

- Advertising from LEDs

- d Advertising goals

- When developing an advertising program, marketing managers must always

start from finding the target market and the buyer's motivation Then, when building an advertising program they can continue through five important decisions, called the M year

d What is the goal of advertising? (mission)

- How much can it cost? (money)

- How to send a message? (message)

- Which media should I use? (media)

- How should the results be assessed? (maesurement)

- Steps to define advertising goals

Figure 1.5 Steps to define advertising goals

The content defines advertising goals

Table 1.2 The content defines advertising goals

INFORMATION

Notify the market about a new product

Describe available services

Point out the new uses of Bending products to correct incorrect impressions Inform the market of the price change

Reduce the fears of buyers

Explain the operating principle of the product Create the company's image Notify the market about a new product

Describe available services

Point out the new uses of Bending products to correct incorrect impressions Inform the market of the price change

Reduce the fears of buyers

Explain the operating principle of the product Create the company's image CONVINCE

Formation of brand preference Convinced buyers to buy now

Based on ability Percent of sales Balance

Decide the message

Message formation Evaluate messages and choose

messages Make the message

p

Decide the vehicle

Range, frequency, impact Main media types Specific means Time distribution for vehicles

n

Ad review

Communicat ion effect Their strength

INFORMATION

Encourage to switch to your brand Persuade buyers to receive offers

Change buyers' perceptions about the

properties of products

REMIND

Remind buyers that they will need to

come to the product in the future

Keep in mind the buyer of the product during the off-season period

Remind buyers where can buy it Maintaining its high level of awareness

e Decide advertising messages

Figure 1.6 Process of determining advertising messages

f Decide the advertising budget

Based on the objectives and tasks of determining advertising budgets Specific factors to consider when determining advertising budgets: First, the stage

in the product life cycle: New products often receive large advertising budgets to

Based on ability Percent of sales

Competiti

ve balance Based on goals and tasks

Decide the message

Message formation Evaluate messages and choose messages Make the message

Decide the vehicle

Range, frequency, impact Main media types Specific means Time distribution for vehicles

Ad review Communicati

on effect Effect on consumption