ENHANCING MARKETING STRATEGIES FOR HOA BINH

AUTOMOBILE JOINT STOCK COMPANY IN HANOI, VIETNAM

A THESIS PAPER
Presented to
the Faculty of the Graduate Program
of the College of Business and Accountancy
Central Philippine University, Philippines
In Collaboration with
Thai Nguyen University, Vietnam

In Partial Fulfillment
of the Requirements for the Degree
MASTER IN BUSINESS ADMINISTRATION

By

HA TRONG NGUYEN

September, 2015

1
 ACKNOWLEDGMENT

I would like to thank all those people who made this thesis possible and an
unforgettable experience for me.

First of all, I would like to express my deepest sense to Prof. Teodoro C. Robles, Ph.D,
President of the Faculty of the Graduate Program of the College of Business and Accountancy
Central Philippine University, Philippines in the Republic of the Philippines, for his untiring
effort and belief that this collaboration is possible thus enabling us to pursue the MBA degree;

Prof. Dang Van Minh, Ph.D, Rector of Thai Nguyen University of Economics and
Business Administration, for his enormous pursuit to provide the Vietnamese people an
opportunity to grow through education;

Prof. Tran Nhuan Kien my research advisor, for is selfless guidance and assistance
thereby making this paper a scholarly work;

PROFESSORS come from Faculty of the Graduate Program of the College of

Business and Accountancy Central Philippine University, Philippines CPU and Thai Nguyen
University of Economics and Business Administration, who composed the Oral Defense
Committee, for their suggestions, comments and corrections to improve this study;

ICCTS STAFFS, for providing the necessary research materials and useful information
during the course;

MY FAMILY and FRIENDS, for the love and support in one way or the other;

and TO ALL who have contributed to make this study a success.

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 ABSTRACT

The study was carried out to assess the marketing strategies of Hoa Binh Automobile
Joint Stock Company. Based on the result of the study, the research aims to propose the
solutions for improving the marketing strategies of the company.

There were 50 buyers addressed in Hanoi city and 50 buyers from other provinces
serving as the respondents of the study. The respondents were asked to rate the items relating
with five selected variables product, price, promotion, place and people.

The customers are dissatisfied with the product strategy for poor diversification of
shape and color and they want to return the products if not satisfied. The customers want to
buy for cheaper prices and to purchase on credit.

Hoa Binh Automobile Joint Stock Company does not conduct good advertisement on
TV, radio and the internet. The company does not have good showroom network.

The sales person is not qualified for the analytical tasks. There is significant difference
between the respondents place of residence and their perceptions on the marketing strategies
of Hoa Binh Automobile Joint Stock Company in terms of in terms of selected variables.

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 TABLE OF CONTENTS

PAGE

CHAPTER 1: THE PROBLEM AND ITS SETTING 5

1.1 Background and Rationale of the Study 5
1.2 Objectives of the Study 7
1.3 Hypotheses 7
1.4 Conceptual Framework 8
1.5 Operational definition of Variables 8
1.6 Scopes of the Study 10
1.7 Significance of the Study 11
CHAPTER 2: REVIEW OF RELATED LITERATURE AND STUDIES 12
2.1 Review of Literature 12
2.2 Related studies 29
CHAPTER 3: METHODOLOGY 31
3.1 Research Design 31
3.2 Population, Sample size and Sampling technique 31
3.3 Data collection 31
3.4 Data processing and analysis 32
CHAPTER 4: DATA PRESENTATION, ANALYSIS AND INTERPRETATION 33
4.1 Profile of the respondents 33
4.2 The respondents perceptions on the existing marketing strategies of Hoa Binh
35
Automobile Joint Stock Company
4.3 Significant difference of the respondents perceptions on the marketing
43
strategies at Hoa Binh Automobile Joint Stock Company and their profile
4.4 Problems and limitations of the marketing strategies of Hoa Binh Automobile
46
Joint Stock Company
4.5 Proposed solutions for enhancing marketing strategies for Hoa Binh Automobile
47
Joint Stock Company
CHAPTER 5: CONCLUSION AND POLICY RECOMMENDATIONS 49
5.1 Summary of findings 49
5.2 Conclusions 50
5.3 Recommendations 50

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Reference 51
Appendices 52

LIST OF TABLES

PAGE

Table 1: Computed table of frequency and percentage of the respondents place of

residence
Table 2: Computed table of frequency and percentage of the respondents years of
product use
Table 3: Respondents perceptions on the marketing strategies of Hoa Binh
Automobile Joint Stock Company in terms of Product Strategy

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 Table 4: Respondents perceptions on the marketing strategies of Hoa Binh
Automobile Joint Stock Company in terms of Price Strategy
Table 5: Respondents perceptions on the marketing strategies of Hoa Binh
Automobile Joint Stock Company in terms of Promotion Strategy
Table 6: Respondents perceptions on the marketing strategies of Hoa Binh
Automobile Joint Stock Company in terms of Place Strategy
Table 7: Respondents perceptions on the marketing strategies of Hoa Binh
Automobile Joint Stock Company in terms of People strategy
Table 8: Computed F_value on One-Way ANOVA of the significant difference
between the respondents place of residence and their perceptions on the
marketing strategies of Hoa Binh Automobile Joint Stock Company
Table 9: Computed F_value on One-Way ANOVA of the significant difference
between the respondents years of product use and their perceptions on the
marketing strategies of Hoa Binh Automobile Joint Stock Company

CHAPTER 1

THE PROBLEM AND ITS SETTING

1.1 Background and Rationale of the Study

There are many definitions of marketing. The better definitions are focused upon
customer orientation and the satisfaction of customer needs. Marketing is the social process by
which individuals and organizations obtain what they need and want through creating and
exchanging value with others by Kotler and Armstrong (2010). They also have another

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definition of marketing as the process by which companies create value for customers and
build strong customer relationships in order to capture value from customers in return.

Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating, offering, and exchanging products of value with
others (Philip Kotler). Basically, human need is state of deprivation or neediness where the
people require food, shelter, clothing, belonging, esteem to live up their life. These needs are
not created by the society or either the marketers, it is the existing nature of human biology
and human condition. Even though the human needs of the people are few, their wants are
many, this is because they are continuously shaped or reshaped by the social forces and their
environment which include institutions, families, and business corporations. "Wants of the
specific product" is the demand of the people and their willingness to buy them. Companies
should not only measure how many people want to buy their product but also the people who
are willing and able to buy it. This willingness should be created by the company. Here comes
the Marketing principle how well the company sells their product and satisfies the needs of the
customer (Narayana Rao).

Marketing is perhaps the most important activity in a business because it has a direct
effect on profitability and sales. Larger businesses will dedicate specific staff and departments
for the purpose of marketing. It is important to realize that marketing cannot be carried out in
isolation from the rest of the business (Net/business/marketing_role).

Hoa Binh Automobile Joint Stock Company was established in 2005 as a subsidiary of
Vietnam Auto Corporation. The factory is located at No 44 Trieu Khuc street, Thanh Xuan
District, Hanoi city. The company specializes in assembling buses, light trucks and
manufacturing auto parts.

Since the establishment, Hoa Binh Automobile Joint Stock Company has focused on
importing parts from Huyndai Auto Company from South Korea to assemble vehicles such as
29 seated bus, 2.5 and 3.5 ton trucks. Thanks to the good reputation for good and stable
quality of the products, the company achieved very good business performance. The revenue
grew rapidly year after year.

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 The products of Hoa Binh Automobile Joint Stock Company with three brand names
County, Mighty 2.5 and Mighty 3.5 have been known in the North of Vietnam. Many
transportation companies, manufacturing firms and individuals chose these products instead of
buying imported vehicles.

Due to the priority given by the government for companies which import parts to
assemble products such as cars, buses and light trucks, Hoa Binh Automobile Joint Stock
Company became one of the leading auto firms in Vietnam.

However, Hoa Binh Automobile Joint Stock Company has gradually lost its market
share and the revenue dropped by more than ten percent per year since 2008. The international
financial crisis put very high pressure on many industries and auto was one highly affected.

There is one more reason which hindered the development of Hoa Binh Automobile
Joint Stock Company is that many trading companies import second hand autos and sell for
much lower prices. This situation still occurs at present and it is considered one of the most
challenging problems for Hoa Binh Automobile Joint Stock Company in particular and other
auto firms in Vietnam in general.

Moreover, Hoa Binh Automobile Joint Stock Company has been facing with the fierce
competition of many more new competitors who also import auto parts and assemble similar
products. These competitors may threaten the survival and growth of Hoa Binh Automobile
Joint Stock Company. The main competitors can be Truong Hai Auto Company, Do Thanh,
Tracomexco, WIM, Thanh Cong, Ngo Gia Tu and Can Tho Auto Company.

For The past few years, Hoa Binh Automobile Joint Stock Company seemed not to pay
enough consideration to the diversification of the products. It also reduces the amount of
money for advertisements on the public media. There are fewer customer meetings than usual
and the company no more showrooms have been built recently.

There may be some reasons behind the poor business performance of Hoa Binh
Automobile Joint Stock Company. One of the prominent factors may be the poor marketing
strategies which have been used by this company. This is the reason why the study titled

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Enhancing marketing strategies for Hoa Binh Automobile Joint Stock Company is
conducted. The study will assess the existing marketing strategies of this company to find the
problems and then propose solutions for future operation.

1.2 Objectives of the Study

General Objectives

The study was conducted with the purpose to assess the existing marketing strategies of Hoa

Binh Automobile Joint Stock Company as perceived by the customers.

Specific objectives

Specifically, it seeks:

1. To determine the profile of the respondents in terms of

1.1 Place of residence

1.2 Years of product use

2. To determine the point of views of the respondents of the marketing strategies of Hoa Binh

Automobile Joint Stock Company as to

2.1 Product;

2.2 Price;

2.3 Promotion;

2.4 Place and

2.5 People.

1.3 Hypotheses

There are no significant difference between the perception of the respondents on the
existing marketing mix strategies and their profile with regards to product, price, promotion,
place and people at Hoa Binh Automobile Joint Stock Company.

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1.4 Conceptual Framework

Independent variables Dependent variables

Profile of customers
in terms of
- Place of residence
Improved marketing
- Years of product use
strategies for 29
Perceived marketing seated buses of Hoa
strategies as to:
Analysis Binh Automobile
- Product
Joint Stock
- Price
Company
- Promotion
- Place
- People

Feed back

The study uses the Independent Variable Process Dependent Variable Model.
The first frame, which is the Independent Variable, depicts the profile of the respondents
in terms of their place of residence and years of product use. It also includes the
respondents perceptions on the marketing strategies of 29 seated buses of Hoa Binh
Automobile Joint Stock Company in terms of product, price, promotion, place and people.

The second frame, which is the Process, indicates the data gathering, evaluation
through questionnaire and analysis and interpretation of data.

The third frame, which is the Dependent Variable, indicates the proposed
marketing strategies of Hoa Binh Automobile Joint Stock Company.

1.5 Operational definition of Variables

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 For better understanding of the study, the following terms are conceptually and
operationally defined:

Customer (also known as a client, buyer, or purchaser) is usually used to refer to those who
bought the products of Hoa Binh Automobile Joint Stock Company.

Place of residence is the permanent address of the customers who come from Hanoi or other
provinces in Vietnam

Marketing is an organizational function and a set of processes for creating, communicating,

and delivering value to customers and for managing customer relationships in ways that
benefit the company and its stake holders.

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.

People are the ones who serve as sale people at the showroom of the company.

Place or (Product distribution) is one of the four elements of the marketing mix.

Pricing is the process of determining what a company will receive in exchange for its products.

Products are 29 seated buses manufactured by Hoa Binh Automobile Joint Stock Company

Promotion is one of the four elements of marketing mix. It is the communication link
between sellers and buyers for the purpose of influencing, informing, or persuading a potential
buyer's purchasing decision.

1.6 Scopes of the Study

This research is conducted at Hoa Binh Automobile Joint Stock Company which is located at
No 44 Trieu Khuc street, Thanh Xuan District, Hanoi city Vietnam.

The main goal of this study is to assess the current marketing strategies of Hoa Binh
Automobile Joint Stock Company with regard to selected variables product, price, promotion,
place and people. The study focuses on evaluating the main products of this company 29
seated buses.

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 This study includes of the profile of customers in terms of their place of residence and
years of product use. It also includes the selected variables of marketing in terms of products,
price, promotion, place and people.

The respondents are 100 customers who bought 29 seated buses manufactured by Hoa
Binh Automobile Joint Stock Company. These people come from transportation enterprises in
Vietnam. They will be asked to answer the questionnaire for needed data and information.

1.7 Significance of the Study

This study was conducted to evaluate the current marketing strategies of Hoa Binh
Automobile Joint Stock Company as perceived by the customers. Based on the output, the
study aims to propose solutions to improve marketing strategies of this company in the future.
Specifically, the significance of the study can be seen as follow:

To Hoa Binh Automobile Joint Stock Company, this study enables the company to
evaluate its marketing strategies for 29 seated buses to elicit what are the strong points and
what to be improved to improve its marketing strategies. Further more, this study will help to
enhance their competition ability, expand their market, build up reputation, and to maximize
profit.

To the customers, this study may make the customers to be more satisfied with companys
products.

To other researchers, this study may serve as reference documentation for further
studies relating to marketing strategies.

CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

In this chapter, concepts and theories that have significant effects on the study will be
presented. The study will also present the reviews of related literatures and studies that have
been written about the topic.

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2.1 Review of Literatures

Marketing strategy

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. Marketing strategy includes all basic and long-term activities in the
field of marketing that deal with the analysis of the strategic initial situation of a company and
the formulation, evaluation and selection of market-oriented strategies and therefore
contributes to the goals of the company and its marketing objectives.

The better definitions are focused upon customer orientation and satisfaction of
customer needs. The two definitions are introduced by Kotler Marketing is the social process
by which individuals and groups obtain what they need and want through creating and
exchanging products and value with others and by The Chartered Institute of Marketing
(CIM) Marketing is the management process that identifies, anticipates and satisfies
customer requirements profitably.

Marketing strategy is increasingly important in the shopping centre development when

the competition become keen in the industry as illustrated by Alexander and Muhlebach
(1992). Kolter (1988) states that Marketing strategy defines the broad principles by which
the business unit expects to achieve its marketing objectives in a target market. It consists of
basic decisions on total marketing expenditure, marketing mix, and marketing allocation. It is
an overall marketing plan aiming to achieve the customers needs by influencing the
marketing mix in relation to expected environment and competitive condition (Kotler and 17
Armstrong, 1994). The definitions indicate that there is a close linkage between marketing
works and customers needs.

Walker et al. (2006) explains that the marketing strategy is to effectively allocate and
coordinate marketing resources and activities to accomplish the firms objectives within a
specific product market.

The Middle East Council of Shopping Centers (MECSC), which is a voluntary non-
profit association based in Dubai and established in 1994 representing shopping mall
owners, developers, marketing managers, leasing managers, retailers, property managers
and government officials, highlighted in the seminar for the importance of re-visiting
marketing strategies to the shopping centers under the current intensely competitive

13
environment. It explains that the shopping centre managements have recognized the need
for the re-visit marketing strategies to keep pace with consumer behavior that is constantly
evolving. The re-visiting marketing strategies can increase sales, productivity and
efficiency, and develop insights into marketing trends that will define the future (Feimster,
2007).

As illustrated by White and Gray (1996), Effective marketing strategy requires that
every element of the marketing mix fits together to deliver a coordinated and integrated appeal
to 18 the target customers group. I agree this point of view that the elements of marketing
mix are essential to develop a successful marketing strategy to meet customers needs or
wants and for the company to achieve its goal.

Marketing strategies serve as the fundamental underpinning of marketing plans

designed to fill market needs and reach marketing objectives. Plans and objectives are

generally tested for measurable results. Commonly, marketing strategies are developed as

multi-year plans, with a tactical plan detailing specific actions to be accomplished in the

current year. Time horizons covered by the marketing plan vary by company, by industry, and

by nation, however, time horizons are becoming shorter as the speed of change in the

environment increases. Marketing strategies are dynamic and interactive. They are partially

planned and partially unplanned.

There is a snappy and realistic definition that uses McCarthy's Four Ps The right

product, in the right place, at the right time, at the right price.

This definition considers the economic and social aspects of marketing Marketing is

the process whereby society, to supply its consumption needs, evolves distributive systems

composed of participants, who, interacting under constraints - technical (economic) and

ethical (social) - create the transactions or flows which resolve market separations and result

in exchange and consumption

Marketing is the management process through which goods and services move from

concept to the customer. As a practice, it consists in coordination of four elements called 4P's:

(1) identification, selection, and development of a product, (2) determination of its price, (3)

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selection of a distribution channel to reach the customer's place, and (4) development and

implementation of a promotional strategy. As a philosophy, marketing is based on thinking

about the business in terms of customer needs and their satisfaction. Marketing differs from

selling because (in the words of Harvard Business School's emeritus professor of marketing

Theodore C. Levitt) "Selling concerns itself with the tricks and techniques of getting people to

exchange their cash for your product. It is not concerned with the values that the exchange is

all about. And it does not, as marketing invariably does, view the entire business process as

consisting of a tightly integrated effort to discover, create, arouse, and satisfy customer

needs."

According to American Marketing Association (AMA) (2007), Marketing is the

activity, conducted by organizations and individuals, that operates through a set of institutions

and processes for creating, communicating, delivering, and exchanging market offerings that

have value for customers, clients, marketers, and society at large.The Chartered Institute of

Marketing defines marketing as 'The management process responsible for identifying,

anticipating and satisfying customer requirements profitably Society definition shows the

vital significance of Marketing in the society. Marketing is a social process in which

individuals and groups, by creating, offering and exchanging the value of products and

service, may obtain what they need and desire (NM Kotler). From management point of

view, marketing is normally consider as Art of Selling, however, it is likely surprised that

the most important element of Marketing is not selling product, which is only the top of the

drift ice.

Philip Kotler (2007) defined Marketing is a social and managerial process by which

individuals and groups obtain what they need and want through creating, offering, and

exchanging products of value with others. Kotlers definition bases on core concepts:

Desires, need, request and demand, product, value, cost, satisfaction, exchange, deal,

relationship, market and marketing staffs.

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Marketing Mix

McCarthy (1964) defines marketing mix as a combination of a set variables

related to fulfilling customers needs. McCarthy and Perreault (1990) further define

marketing mix as the controllable variables that an organization can co-ordinate to satisfy

its target market. Marketing mix is also described as the core concept of marketing theory

and as the tools and techniques to implement the marketing concepts (McDonald and

Tideman, 1993).

The traditional concept of marketing mix is 4Ps (i.e. Product, Price, Place and

Promotion), which is proposed by McCarthys in 1964 and focused for product marketing.
Booms and Bitner (1981) extend the 4Ps concept to specific adaptations for service

marketing i.e. 7Ps service marketing mix model by including the additional 3Ps (i.e.

People, Physical Evidence and Process). Then, Kirkup and Rafiq (1999) and Warnaby et

al. (2005) further developed the Booms and Bitners 7Ps service mix to re-label and sub-

divide some 19 elements comprehensively so as to cater for the uniqueness of shopping

centre.

Marketing mix is a planned mix of the controllable elements of a product's marketing

plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are

adjusted until the right combination is found that serves the needs of the product's customers,

while generating optimum income. Sometimes the first P (Product) is substituted by

presentation. See also marketing and mega marketing

(http://www.businessdictionary.com/definition/marketing-mix.html).

Concept of Marketing Mix became popular after Neil H. Bordens article in 1964:

Concepts of Marketing Mix. Borden used these concepts in his lectures in late 1940s

after James Cullintion explained Marketing management as Material mix. As Borden,

Material in Marketing Mix contains of product plan, price, trade mark, distribution

channel, promotion, package, service, and behavior control and circumstance analysis.

16
 McCarthy (2003) stated that marketing mix is 4 P: The first "P" in the marketing

mix is the Product. One of the most important aspects of good marketing is to be sure to create

products or services that meet your targeted consumer group's needs, as well as their desires.

Define the characteristics of your products or services, ensure your products or services will

meet the expectations of your targeted consumer group. The next "P" in the marketing mix is

the Price of your product. Price your products or services competitively. Deciding on a pricing

strategy beforehand can really aid in making pricing decisions. How you price your products

or services is just as important as the product itself. If your products and services are priced

considerably higher than similar products and services, you may have a harder time building
clientele. On the other hand, if your price your products or services are too low, you are bound

to loose profits. Developing a pricing strategy, and pricing your products or services

competitively, will likely get you the best results. The third "P" in the marketing mix is Place

of distribution. You must have a place in mind to distribute your new product or service. There

are many places available for consideration including: the internet; home based business; and

on-site facility. Finally, the last "P" in the marketing mix is product Promotion. It is vital to

your new business to promote your products or services. When associated with the marketing

mix, promotion can also include: Advertising; selling; public relations; and sales promotions.

According to Kotler (2007), marketing mix contains 4 main sectors (Product, Price,

Placement, and Promotion) constituting Marketing plan of the firm. These four sectors interact

and decision on this will have impact on the other 3. Product: Management the elements of

product such as planning and creating proper goods and services to be introduced. Pricing:

identify adequate cost basis. Placement: Select and manage the trade channel to obtain the

target market and develop the logistic and transportation system. Promotion: Introduce

products and persuade customers to use.

Product strategy

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 According to P.Kotler, when an organization introduces a product into a market they

must ask themselves a number of questions (1) Who is the product aimed at? (2) What benefit

will customers expect? (3) How does the firm plan to position the product within the market?

(4) What differential advantage will the product offer over their competitors?

We must remember that Marketing is fundamentally about providing the correct

bundle of benefits to the end user, hence the saying Marketing is not about providing

products or services it is essentially about providing changing benefits to the changing needs

and demands of the customer (P.Tailor 7/00)

There is no point in developing a product or service that no one wants to buy, yet many
businesses decides what to offer first, and then find a market for it afterwards. In contrast, the

successful company will find what customers need and want and then develop the right

product with the right level of quality to meet those needs now and the future. The perfect

product must provide value for the customers. This value must be in the eyes of the beholder

we must give the customers what they want, not what we think they want1.

Kotler suggested that a product should be viewed in three levels.

Level 1: Core Product. What is the core benefit your product offers?. Customers who purchase

a camera are buying more then just a camera they are purchasing memories.

Level 2: Actual Product: All cameras capture memories. The aim is to ensure that your

potential customers purchase your one. The strategy at this level involves organizations

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

advantage from their competitors.

Level 3: Augmented product: What additional non-tangible benefits can you offer?

Competition at this level is based around after sales service, warranties, delivery and so on.

John Lewis a retail departmental store offers free five year guarantee on purchases of their

1
http://www.cim.co.uk/filestore/resources/10minguides/7ps.pdf

18
Television sets, this gives their `customers the additional benefit of peace of mind over the

five years should their purchase develop a fault.

When a company wants to create its product strategy, they need to answer the following

questions:

- What does the customer want from the product/service? What needs does it satisfy?

- What features does it have to meet these needs? Are there any features you've missed out?

Are you including costly features that the customer won't actually use?

- How and where will the customer use it?

- What does it look like? How will customers experience it?

- What size(s), color(s), and so on, should it be?

- What is it to be called?

- How is it branded?

- How is it differentiated versus your competitors?

- What is the most it can cost to provide, and still be sold sufficiently profitably?

There is no point in developing a product or service that no one wants to buy, yet

many businesses decides what to offer first, and then find a market for it afterwards. In

contrast, the successful company will find what customers need and want and then

develop the right product with the right level of quality to meet those needs now and the

future. The perfect product must provide value for the customers. This value must be in

the eyes of the beholder we must give the customers what they want, not what we think

they want.

According to Brian Tracy (2004), To begin with, develop the habit of looking at

your product as though you will be an outside marketing consultant brought in to help your

company decide whether or not it's in the right business at this time. Ask critical questions

19
such as, "Is your current product or service, or mix of products and services, appropriate and

suitable for the market and the customers of today?"

He further added that whenever you're having difficulty selling as much of your

products or services as you'd like, you need to develop the habit of assessing your business

honestly and asking, "Are these the right products or services for our customers today?" Is

there any product or service you're offering today that, knowing what you now know, you

would not bring out again today? Compared to your competitors, is your product or service

superior in some significant way to anything else available? If so, what is it? If not, could you

develop an area of superiority? Should you be offering this product or service at all in the
current marketplace?

Products come in several forms. Consumer products can be categorized as

convenience goods, for which consumers are willing to invest very limited shopping efforts.

Thus, it is essential to have these products readily available and have the brand name well

known. Shopping goods, in contrast, are goods in which the consumer is willing to invest a

great deal of time and effort. For example, consumers will spend a great deal of time looking

for a new car or a medical procedure. Specialty goods are those that are of interest only to a

narrow segment of the populatione.g., drilling machines. Industrial goods can also be

broken down into subgroups, depending on their uses. It should also be noted that, within the

context of marketing decisions, the term product refers to more than tangible goodsa

service can be a product, too.

A firms product line or lines refers to the assortment of similar things that the firm

holds. Brother, for example, has both a line of laser printers and one of typewriters. In

contrast, the firms product mix describes the combination of different product lines that the

firm holds. Boeing, for example, has both a commercial aircraft and a defense line of products

that each takes advantage of some of the same core competencies and technologies of the

firm. Some firms have one very focused or narrow product line (e.g., KFC does only chicken

right) while others maintain numerous lines that hopefully all have some common theme. This

20
represents a wide product mix 3M, for example, makes a large assortment of goods that are

thought to be related in the sense that they use the firms ability to bond surfaces together.

Depth refers to the variety that is offered within each product line. Maybelline offers a great

deal of depth in lipsticks with subtle differences in shades while Morton Salt offers few

varieties of its product.

Products may be differentiated in several ways. Some may be represented as being of

superior quality (e.g., Maytag), or they may differ in more arbitrary ways in terms of styles

some people like one style better than another, while there is no real consensus on which one

is the superior one. Finally, products can be differentiated in terms of offering different levels
of servicefor example, Volvo offers a guarantee of free, reliable towing anywhere should the

vehicle break down. American Express offers services not offered by many other charge cards.

Price strategy

Pricing is one of the most important elements of the marketing mix, as it is the only

mix, which generates a turnover for the organization. The remaining 3ps are the variable cost

for the organization. It costs to produce and design a product; it costs to distribute a product

and costs to promote it. Price must support these elements of the mix. Pricing is difficult and

must reflect supply and demand relationship. Pricing a product too high or too low could

mean a loss of sales for the organization. Pricing should take into account the following

factors: (1) Fixed and variable costs; (2) Competition; (3) Company objectives; (4) Proposed

positioning strategies; (5) Target group and willingness to pay

(http://www.learnmarketing.net/Price.htm).

According to Kotler (2005), when a firm sets price strategy, it has to consider the

following factors in setting its pricing policy:

- Selecting the price objectives such as survival, maximum current profit, maximum current

revenue, maximum sales growth, maximum market skimming and product-quality leadership.

21
- Determining demand schedule, which shows the probable quantity purchased per period at

alternative price level. Because each price that company might charge will lead to a different

level of demand and will therefore have a different impact on its marketing objectives. The

more inelastic the demand, the higher the company can set its price.

- Estimating cost: demand largely set a ceiling to the price that the company can charge for its

product, and company costs set the floor. The company wants to charge a price that covers its

cost of producing, distributing, and selling the product, including a fair return for its effort and

risk. The firm therefore, estimates how its costs vary at different output levels and with

different levels of accumulated production experience.

- Analyzing competitors prices: the firm needs to learn the price and quality of each

competitors offer and use them as a basis for positioning its own price.

- Selecting one of the following price methods: markup price, target-return price, perceived-

value pricing, going-rate pricing and sealed-bid pricing.

- Selecting the final price: the firm select its final price, expressing it in the most effective

psychological way, coordinating it with the other marketing mix elements, checking that it

conforms to company policies and making sure it will find acceptance with distributors and

dealers, company sales force, competitors, suppliers and government.

An organization can adopt a number of pricing strategies. The pricing strategies are

based much on what objectives the company has set itself to achieve: (a) Penetration pricing -

Here the organization sets a low price to increase sales and market share. Once market share

has been captured the firm may well then increase their price; (b) Skimming pricing - The

organization sets an initial high price and then slowly lowers the price to make the product

available to a wider market. The objective is to skim profits of the market layer by layer; (c)

Competition pricing - Setting a price in comparison with competitors. Really a firm has three

options and these are to price lower, price the same or price higher; (d) Product Line Pricing -

Pricing different products within the same product range at different price points; (e)

22
Psychological pricing - The seller here will consider the psychology of price and the

positioning of price within the market place; (f) Premium pricing - The price set is high to

reflect the exclusiveness of the product; (g) Cost Based Pricing - The firms takes into account

the cost of production and distribution, they then decide on a mark up which they would like

for profit to come to their final pricing decision.

Promotion strategy

When a company wants to promote its product, they need to answer the following

questions:

- Where and when can you get across your marketing messages to your target market?

- Will you reach your audience by advertising in the press, or on TV, or radio, or on

billboards? By using direct marketing mailshot? Through PR? On the Internet?

- When is the best time to promote? Is there seasonality in the market? Are there any

wider environmental issues that suggest or dictate the timing of your market launch, or the

timing of subsequent promotions?

- How do your competitors do their promotions? And how does that influence your

choice of promotional activity?

A successful product or service means nothing unless the benefit of such a service can

be communicated clearly to the target market. An organization promotional mix strategy can

consist of (1) Advertising - Any non personal paid form of communication using any form of

mass media; (2) Public relations - Involves developing positive relationships with the

organization media public. The art of good public relations is not only to obtain favorable

publicity within the media, but it is also involves being able to handle successfully negative

attention; (3) Sales promotion - Commonly used to obtain an increase in sales short term.

Could involve using money off coupons or special offers; (4) Personal selling - Selling a

product service one to one; (5) Direct Mail - Direct mail allows an organization to use their

23
resources more effectively by allowing them to send publicity material to a named person

within their target segment. By personalizing advertising, response rates increase thus

increasing the chance of improving sales. Listed below are links to organization who's

business involves direct mail; and (6) Internet Marketing - Promoting and selling your

services online.

Promotion is the business of communicating with customers. It will provide

information that will assist them in making a decision to purchase a product or service. The

razzmatazz, pace and creativity of some promotional activities are almost alien to normal

business activities.

The cost associated with promotion or advertising goods and services often represents

a sizeable proportion of the overall cost of producing an item. However, successful promotion

increases sales so that advertising and other costs are spread over a larger output. Though

increased promotional activity is often a sign of a response to a problem such as competitive

activity, it enables an organization to develop and build up a succession of messages and can

be extremely cost-effective.

Integrated Marketing Communication (IMC) involves the idea that a firms

promotional efforts should be coordinated to achieve the best combined effects of the firms

efforts. Resources are allocated to achieve those outcomes that the firm values the most.

Promotion involves a number of tools we can use to increase demand for our products.

The most well known component of promotion is advertising, but we can also use tools such

as the following:

- Public relations (the firms staff provides information to the media in the hopes of

getting coverage). This strategy has benefits (it is often less expensive and media coverage is

usually more credible than advertising) but it also entails a risk in that we cant control what

the media will say. Note that this is particularly a useful tool for small and growing

24
businessesespecially those that make a product which is inherently interesting to the

audience.

- Trade promotion. Here, the firm offers retailers and wholesalers temporary

discounts, which may or may not be passed on to the consumer, to stimulate sales.

- Sales promotion. Consumers are given either price discounts, coupons, or rebates.

- Personal selling. Sales people either make cold calls on potential customers and/or

respond to inquiries.

- In-store displays. Firms often pay a great deal of money to have their goods
displayed prominently in the store. More desirable display spaces include: end of an aisle,

free-standing displays, and near the check-out counter. Occasionally, a representative may

display the product.

Generally, a sequence of events is needed before a consumer will buy a product. This

is known as a hierarchy of effects. The consumer must first be aware that the product

exists. He or she must then be motivated to give some attention to the product and what it

may provide. In the next stage, the need is for the consumer to evaluate the merits of the

product, hopefully giving the product a try. A good experience may lead to continued use.

Note that the consumer must go through the earlier phases before the later ones can be

accomplished.

Promotional objectives that are appropriate differ across the Product Life Cycle

(PLC). Early in the PLCduring the introduction stagethe most important objective is

creating awareness among consumers. For example, many consumers currently do not know

the Garmin is making auto navigation devices based on the global position satellite (GPS)

system and what this system can do for them. A second step is to induce trialto get

consumers to buy the product for the first time. During the growth stage, important needs are

persuading the consumer to buy the product and prefer the brand over competing ones. Here,

it is also important to persuade retailers to carry the brand, and thus, a large proportion of

25
promotional resources may need to be devoted to retailer incentives. During the maturity

stage, the firm may need to focus on maintaining shelf space, distribution channels, and sales.

Different promotional approaches will be appropriate depending on the stage of the

consumers decision process that the marketer wishes to influence. Prior to the purchase, the

marketer will want to establish a decision to purchase the product and the specific brand.

Here, samples might be used to induce trial. During the purchase stage, when the consumer is

in the retail store, efforts may be made to ensure that the consumer will choose ones specific

brands. Paying retailers for preferred shelf space as well as point of purchase (POP) displays

and coupons may be appropriate. After the purchase, an appropriate objective may be to
induce a repurchase or to influence the consumer to choose the same brand again. Thus, the

package may contain a coupon for future purchase.

There are two main approaches to promoting products. The push strategy is closely

related to the selling concept and involves hard sell and aggressive price promotions to

sell at this specific purchase occasion. In contrast, the pull strategy emphasizes creating

demand for the brand so that consumers will come to the store with the intention of buying the

product. Hallmark, for example, has invested a great deal in creating a preference for its

greeting cards among consumers.

There are several types of advertising. In terms of product advertising, the

pioneering ad seeks to create awareness of a product and brand and to instill an appreciation

among consumers for its possibilities. The competitive or persuasive ad attempts to convince

the consumer either of the performance of the product and/or how it is superior in some way

to that of others. Comparative advertisements are a prime example of this. For instance, note

the ads that show that some trash bags are more durable than others. Reminder advertising

seeks to keep the consumer believing what other ads have already established. For example,

Coca Cola ads tend not to provide new information but keep reinforcing what a great drink it is.

Place/ distribution strategy

26
 Two types of channel of distribution methods are available. Indirect distribution

involves distributing your product by the use of an intermediary for example a manufacturer

selling to a wholesaler and then on to the retailer.. Direct distribution involves distributing

direct from a manufacturer to the consumer For example Dell Computers providing directly to

its target customers. The advantage of direct distribution is that it gives a manufacturer

complete control over their product.

Depending on the type of product being distributed there are three common

distribution strategies available

(1) Intensive distribution - Used commonly to distribute low priced or impulse

purchase products eg chocolates, soft drinks;

(2) Exclusive distribution - Involves limiting distribution to a single outlet. The

product is usually highly priced, and requires the intermediary to place much detail in its sell.

An example of would be the sale of vehicles through exclusive dealers;

(3) Selective Distribution - A small number of retail outlets are chosen to distribute the

product. Selective distribution is common with products such as computers, televisions

household appliances, where consumers are willing to shop around and where manufacturers

want a large geographical spread.

If a manufacturer decides to adopt an exclusive or selective strategy they should select

an intermediary which has experience of handling similar products, credible and is known by

the target audience.

When a company wants to place or distribute its product well, they need to answer the

following questions:

- Where do buyers look for your product or service?

- If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or

online? Or direct, via a catalogue?

27
- How can you access the right distribution channels?

- Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or

send samples to catalogue companies?

Place (also known as the distribution variable in the marketing mix, or the 4 Ps)

involves getting the product from the manufacturer to the ultimate consumer. Distribution is

often a much underestimated factor in marketing. Many marketers fall for the trap that if you

make a better product, consumers will buy it. The problem is that retailers may not be willing

to devote shelf-space to new products. Retailers would often rather use that shelf-space for

existing products have that proven records of selling.

Although many firms advertise that they save the consumer money by selling "direct"

and eliminating the middleman, this is a dubious claim in most instances. The truth is that

intermediaries, such as retailers and wholesalers, tend to add efficiency because they can do

specialized tasks better than the consumer or the manufacturer. Because wholesalers and

retailers exist, the consumer can buy one pen at a time in a store located conveniently rather

than having to order it from a distant factory. Thus, distributors add efficiency by:

- Breaking bulkthe consumer can buy small quantities at a time. Small and modest

scale retailers (e.g., the USC bookstore) can buy modest quantities. This service reduces

quantity discrepancy in the supply-demand relationship between manufacturers and end

customers.

- Consolidation and Distribution. It would be highly inconvenient for customers to

have to buy each product at a different store. Most American consumers today also have

limited patience with specialty stores in most categories. Rather than having to go to one

store to buy produce, one store to buy meat, and other stores for other household products,

there is considerable value in having everything available in a supermarket. The consumers

can buy at a neighborhood store, which in turn can buy from a regional warehouse. It would

28
also be very inconvenient for supermarkets and most other retailers to have to receive

deliveries individually from each manufacturer.

Wholesalers consolidate products from different manufacturers so that a large number

of different products can be received in one shipment. This reduces costs by increasing the

efficiency with which products can be (1) delivered and (2) received. Consolidation and

distribution services offered by wholesalers reduce the assortment discrepancy between

manufacturers on the one hand and local retailers and consumers on the other.

NOTE: Some very large retail chains such as Wal-Mart may be able to handle

distribution more effectively than outside wholesalers. Wal-Mart often insists on sales directly
to the chain from the manufacturer rather than sales through wholesalers. This is the exception

to the rule since Wal-Mart is large enough to be able to handle distribution itself rather than

going through retailers. It should be noted that Wal-Mart has made very large investments to

make this possible, and these capabilities have taken a long time to develop. Wal-Mart had a

very difficult time breaking into the grocery businessespecially for perishable itemsand

took several years to perfect this capability.

- Carrying inventory. This service reduces the temporal discrepancy between manufacturers

who may need to schedule production at relatively constant levels and consumers who need

certain products only at certain times (e.g., turkeys needed mostly at Thanksgiving and

Christmas)

- Financing. Certain small manufacturers may have difficulty waiting for payment until goods

are sold to the end-customer. Wholesalers and retailers may negotiate lower prices from the

manufacturer in return for quick payment.

Place or distribution refers to how an organization will distribute the product or service

they are offering to the end user. The organization must distribute the product to the user at the

right place at the right time. Efficient and effective distribution is important if the organization

29
is to meet its overall marketing objectives. If an organization underestimated demand and

customers cannot purchase products because of it, profitability will be affected.

People strategy

People are an essential ingredient in service provision; recruiting and training the right

staff is required to create a competitive advantage. Customers make judgments about service

provision and delivery based on the people representing your organisation. This is because

people are one of the few elements of the service that customers can see and interact with. The

praise received by the volunteers (games makers) for the London 2012 Olympics and

Paralympics demonstrates the powerful effect people can create during service delivery.

Staffs require appropriate interpersonal skills, aptitudes, and service knowledge in

order to deliver a quality service. In the UK many organizations apply for the "Investors in

People" Accreditation to demonstrate that they train their staff to prescribed standards and best

practices.

People are one of the elements of service marketing mix. People define a service. If

you have an IT company, your software engineers define you. If you have a restaurant, your

chef and service staff defines you. If you are into banking, employees in your branch and their

behavior towards customers define you. In case of service marketing, people can make or

break an organization. Thus many companies nowadays are involved into specially getting

their staff trained in interpersonal skills and customer service with a focus towards customer

satisfaction. In fact many companies have to undergo accreditation to show that their staff is

better than the rest.

People are a defining factor in a service delivery process, since a service is inseparable

from the person providing it. Thus, a restaurant is known as much for its food as for the

service provided by its staff. The same is true of banks and department stores. Consequently,

customer service training for staff has become a top priority for many organizations today.

Market segmentation

30
 In marketing it is almost impossible to succeed by handling all the consumers as a big

one size fits for all mass. Market segmentation recognizes that people differ in many ways

like in their needs, attitudes and lifestyles. (Middleton et al. 2009: 97) Through market

segmentation companies divide their market into smaller segments. All of the segments have

specific needs and by dividing the market those needs can be met more efficiently with

products and services that match their unique needs. (Kotler 2004: 239)

There are many ways to segment a market. Different segmentation variables are used,

both alone and together, in order to classify consumers into different segments. Kotler defines

four major variables that are generally used in marketing; geographic, demographic,
psychographic and behavioral variables.

Geographical segmentation divides the market into different geographical units such as

cities, regions, countries or climate and population density. By this way when a company is

deciding which units to operate and market, they can pay attention to geographical differences

in needs and wants. For example a major clothing store chain can pay attention to their

selection in stores in northern areas where it is colder and the need for warmer clothes is

greater than in areas located more south. (Kotler 2004:239)

Demographic segmentation consists of dividing the market into groups based on

variables such as age, gender, family size, income, occupation, education, religion, race and

nationality. Demographic factors are the most popular bases for segmenting customer groups.

This is partly because customer wants are closely linked to variables such as income and age.

Also, for practical reasons, there is often much more data available to help with the

demographic segmentation process. (Kotler 2004: 240-241)

Psychographic segmentation divides the market into different groups based on social

class, lifestyle or personality characteristics. People can be in the same geographical segment

meaning that they may for example live in the same city; they can even be of same age. But

one may be a student and another a worker. This affects their lifestyles greatly and therefore

31
also has an effect on the buying behaviors of the people. Behavioral segmentation divides

buyers into groups based on their knowledge, attitudes, uses and responses to a product.

Behavioral segmentation has the advantage of using variables that are closely related

to the product itself. When a company knows when and why customers are buying their

products, they can link their marketing to that. For example some holidays like on Valentines

Day or at Christmas people tend to buy certain things related to the occasion; many 23

companies prepare special offers and advertisements for those holiday occasions. (Kotler

2004: 244)

Relationship Marketing

Relationship marketing is a form of marketing that emphasizes customer retention and

satisfaction. It switches the focus from the recruitment of new customer to the retention and

recovery of existing ones. Relationship marketing differs from other forms of marketing in

that it recognizes the long-term value of customer relationships and extends communication.

(Middleton et al. 2009: 92) The world of marketing today is more customer-centered. As

companies must compete in a more competitive marketplace they have to know their

customers needs and wants in order to get new customers, then keep and grow them by

delivering greater value for them. (Kotler 2004: 54)

When planning g a relationship marketing strategy one must take into account that not

all customers want a relationship with the company. That is why it must be carefully

considered which types of customers are usually more likely to repeat their visit in a hotel or a

restaurant. Some customers are aware of the wide choice of competitor products and services

and do not want to limit their options and tie themselves only to one company but prefer to

switch their custom accordingly. Other customers are not interested in any type of relationship

with any company; they simply look at the best quality, value and convenience available at the

time of purchase. (Bowie & Buttle 2004: 298-299)

32
 Building close relationships with key customers should be mutually rewarding for

both the customer and the company. For example to companies that have a lot of

employees working on the road and moving constantly hotel accommodation becomes a

major expense. That is why it is profitable for the company to choose a particular hotel or

a hotel chain and arrange a fixed price for their employees staying at the hotel. That price

is usually lower than the regular rate in the hotel so the company saves money and the

hotel gets a steady income from the companys employees staying there. (Bowie & Buttle

2004: 299)

2.2 Related Studies

A study by Nguyen Van Chien (2008) on the marketing strategies of Truong Hai Auto

Company found out that this company had very good promotion strategies for its products.

The company invests very much in advertising their products on TV at right before the News

time so many people know the information. As a result, in 2011 this company ranked the

second leading auto companies in Vietnam in terms of the quantity of products sold.

The study also found that this company did not have very good price strategies when

they set the fixed prices and it will be very hard to negotiate for discounts or gifts.

Another study on marketing strategies relating to auto industry will be conducted by

Tran Van Binh at Hoa Binh Auto Company in 2007. The researcher focused on 4 Ps mix

strategies. Based on the output, he came to the conclusion that this company did not have

reasonable product strategies when most of the items relating to this variable will be given

low points by the customers.

Ngo Quang Vinh (2010) conducted a study to assess the marketing strategies of Gia

Phu Joint Stock Company. Based on the assessments by the two groups of respondents,

the study point out some prominent shortcomings of the marketing strategies: (a) Both of

the groups think that the product does not have a good brand-name; (b) The customers give

negative assessment when the price is not stable; (c) The employees think that the price is not

33
attractive enough; (d) the customers and employees show their low satisfactions with

promotion activities by the company; (e) Both group do not agree with place strategies when

the company has does not attend trade fair or sell their product on the internet.
Chu, Ka-wai (2009) conducted a research paper aims to explore the relationship
between the marketing strategy and the customer retention of shopping centre industry in
Hong Kong and identify the major components of marketing strategy for enhancing and
sustaining the customer retention to the shopping centre.

After reviewing the literatures and further proved by the surveys carried out in three
biggest shopping centers located in different districts of Hong Kong, we find there are a
close relationship between the marketing strategy and the customer retention of Hong Kong
shopping centre industry. Good marketing strategy can help to retain the repeated
customers in the shopping centers. Moreover, the components of Tenant Mix & Leisure
Attractions, Location/Accessibility and Customer Service Provided play the critical
roles for sustaining the customer retention in the shopping centre industry with reference to
the opinions of repeated customers. They put these factors as top three important rankings
to affect their choices of the shopping centre for re-visiting.

The customer shopping behavior has changed a lot over the past century from
purchasing in a general store to the enclosed shopping mall with comfortable atmosphere and
air-conditioning facility. The occurrence of this trend is due to the invention and
popularization of the automobile and the creation of a highway system, which provided the
opportunity to build the out-of-town shopping centre and also encourage the development of
shopping centre industry. Shopping center now represent a crucial element of the social and
economic health of the community. They are an integral aspect of everyday life.

CHAPTER 3

METHODOLOGY

This chapter presents the research methodology. It includes the research design, the
population of the study, sample size and sampling technique, data collection, and data
processing and analysis.

34
3.1 Research Design

This study made use the descriptive method for determining the profile of the customers and
their perceptions on the existing marketing strategies for 29 seated buses of Hoa Binh
Automobile Joint Stock Company.

3.2 Population and Sampling procedures

100 customers who bought 29 seated buses from Hoa Binh Automobile Joint Stock Company
served as the respondent of the study. These customers were selected randomly from the ones
who buy the products in the second quarter of 2015. The customers come from transportation
enterprises in Vietnam.

3.3 Data collection

The research utilizes the questionnaires as the main instrument for collecting primary data. It
consists of two parts. The first part presents the profile of the respondents. The second part is
the respondents perceptions on the marketing strategies in terms of selected variables used by
Hoa Binh Automobile Joint Stock Company. The respondents were asked to rate each item
using the following the 5 point rating scale:

Scale Range Choice of description Verbal interpretation

5 4.20 - 5.00 Strongly Agree Excellent (E)
4 3.40 4.19 Agree Good (G)
3 2.60 3.39 Neither Agree nor Disagree Fair (F)
2 1.80 2.59 Disagree Poor (P)
1 1.00 1.79 Strongly Disagree Very Poor (VP)
3.4 Data processing and analysis

The study applied the following statistical treatment:

35
 To summarize the profile of the respondents, frequency, and percentage distribution
are used.

To determine the perceptions of the customers on the marketing strategies of Hoa

Binh Automobile Joint Stock Company, weighted mean will be utilized. And for further
interpretation, the 5-point rating scale i sused.

To determine the significant differences between the respondents perceptions on the

marketing strategies used at Hoa Binh Automobile Joint Stock Company and their profile,
one-way analysis of variance (ANOVA) is used.

CHAPTER 4

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

This chapter represents the profile of the respondents who are the buyers of Hoa Binh
Automobile Joint Stock Company. This chapter also presents the respondents perceptions on
the marketing strategies of this company in terms of selected variables.

4.1 Profile of the respondents

Table 1: Computed table of frequency and percentage of the

respondents place of residence

36
 Place of residence
Frequency Percentage
In Hanoi city 28 28
In other province 72 72
Total 100 100

Table 1 presents the computed table of frequency and percentage of the respondents
place of residence. As can be seen from Table 1, one hundred customers were chosen to serve
as the respondents of the study.

There are 28 customers addressed in Hanoi city accounting for 28 percent who bought
29 seated buses of Hoa Binh Automobile Joint Stock Company. These respondents are the
transportation companies who use 29 seated buses for providing services. There are 72 buyers
accounting for 72 percent coming from different cities and provinces in the middle and north
of Vietnam.

As mentioned previously, the market for Hoa Binh Automobile Joint Stock Company
is mainly in the Northern provinces of Vietnam. It is because there is very hard competition
with some big auto firms in the southern cities. One more reason is that the 29 seated buses
are suitable for providing customer transportation in hilly and mountainous areas in Vietnam.

Table 2: Computed table of frequency and percentage of the

respondents years of product use

Years of product use

Frequency Percentage
Below 5 years 50 50
More than 5 years 50 50
Total 100 100

Table 2 presents the computed table of frequency and percentage of the respondents Years of
product use. One hundred customers who bought 29 seated buses from Hoa Binh Automobile
Joint Stock Company were chosen to serve as the respondents of the study. Fifty customers

37
were chosen from those who used the products below 5 years the other have been using the
products for more than 5 years.

4.2 The respondents perceptions on the existing marketing strategies of Hoa Binh
Automobile Joint Stock Company

This part presents the perceptions of the respondents on the marketing strategies of
Hoa Binh Automobile Joint Stock Company based on the weighted means given by the
customers in terms of the selected variables.

Table 3: Respondents perceptions on the marketing strategies of Hoa Binh Automobile

Joint Stock Company in terms of Product Strategy

38
 In Hanoi In other Weighted
Product Strategy city province Mean
Mean VI Mean VI Mean VI
1. The brand name is well known 3.18 F 2.78 F 2.89 F
2. The product is economical 3.54 G 3.5 G 3.51 G
3. The product is diversified in shape 2.25 P 2.25 P 2.25 P
4. The product is diversified in color 2.43 P 2.4 P 2.41 P
5. The product is well decorated 3.14 F 3.04 F 3.07 F
6. The product is well facilitated 3.18 F 2.78 F 2.89 F
7. The product is durable 2.96 F 2.83 F 2.87 F
8. The product meets the requirements for safety 2.93 F 2.69 F 2.76 F
9. Product can be returned if not satisfied 2.46 P 2.31 P 2.35 P
Average 2.90 F 2.73 F 2.78 F

Table 3 shows the respondents perceptions on the marketing strategies of Hoa Binh

Automobile Joint Stock Company in terms of Product Strategy. According to the data shown

at this table, the general mean given by the respondents is 2.78 corresponding with F (Fair)

level. We can infer that the customers stand neutral with the product strategies of the

company. There is not a big gap between the perceptions of the two groups. The buyer from

Hanoi city give mean of 2.90 corresponding with F (Fair) level while the buyers from other

provinces give lower mean of 2.73 corresponding with low F (Fair) level.

The two groups all agree with the item The product is economical by giving mean of

3.54 and 3.5 corresponding with G (Good) levels. It may due to the brand name of the engines

imported from South Korea.

The two groups show their neutral points to items The product is well decorated; The

product is well facilitated; The product is durable; and The product meets the requirements for

safety. It can be inferred that they are neither satisfied nor dissatisfied with these items

relating with the product strategies of Hoa Binh Automobile Joint Stock Company in Hanoi

city.

39
 Table 4: Respondents perceptions on the marketing strategies of Hoa Binh Automobile
Joint Stock Company in terms of Price Strategy

In Hanoi In other Weighted

Pricing Strategy city province Mean
Mean VI Mean VI Mean VI
1. The price of product is reasonable 2.21 P 2.53 P 2.44 P
2. Prices are competitive with similar products 2.43 P 2.39 P 2.4 P
3. Price can be negotiated 2.39 P 2.65 F 2.58 P
4. Price is listed 3.21 F 3.25 F 3.24 F
5. The product is sold on credit 2.11 P 2.33 P 2.27 P
6. The customer has discounts for large quantity 3.36 F 3.35 F 3.35 F
7. The customer has discounts for quick payment 3.11 F 3.18 F 3.16 F
Average 2.69 F 2.81 F 2.78 F

Table 4 shows the respondents perceptions on the marketing strategies of Hoa Binh

Automobile Joint Stock Company in terms of Pricing Strategy. As can be seen from this table,

the general mean given by the respondents is 2.69 corresponding with F (Fair) level. We can

infer that the customers stand neutral with the price strategies of the company. There is not a

big gap between the perceptions of the two groups. The buyer from Hanoi city give mean of

2.81 corresponding with F low (Fair) level while the buyers from other provinces give higher
mean of 2.78 corresponding with F (Fair) level.

The two groups show their neutral points to items Price is listed; The customer has

discounts for large quantity; and The customer has discounts for quick payment. It can be

inferred that they are neither satisfied nor dissatisfied with these items relating with the price

strategies of Hoa Binh Automobile Joint Stock Company.

In terms of items The price of product is reasonable; Prices are competitive with similar

products; and The product is sold on credit, the two groups show their disagreements by

40
giving low means corresponding with P (Poor) levels. They think that the company does not

have good enough price strategies in terms of these items.

Table 5: Respondents perceptions on the marketing strategies of Hoa Binh Automobile

Joint Stock Company in terms of Promotion Strategy

41
 In Hanoi In other Weighted
Promotion Strategy city province Mean
Mean VI Mean VI Mean VI
1. The product is advertised on TV 2.04 P 2.07 P 2.06 P
2. The product is advertised on the radio 2.39 P 2.46 P 2.44 P
3. The product is advertised on the billboards 2.79 F 2.83 F 2.82 F
4. The product is advertised on the Internet 2.25 P 2.17 P 2.19 P
5. The product is advertised in the popular
3.14 F 3 F 3.04 F
newspapers
6. The company organizes customer meetings 3.11 F 2.83 F 2.91 F
7. The products are displayed at trade fairs 3.11 F 3.06 F 3.07 F
8. The company holds events for promotion 3.11 F 2.89 F 2.95 F
9. There are gifts when buying products 3.61 G 3 F 3.17 G
Average 2.84 F 2.70 F 2.74 F

Table 5 shows the respondents perceptions on the marketing strategies of Hoa Binh

Automobile Joint Stock Company in terms of promotion strategy. As can be seen from this

table, the general mean given by the respondents is 2.84 corresponding with F (Fair) level. It

can be inferred that the respondents neither agree nor disagree with the promotion strategies of

the company.

There is quite a big gap between the perceptions of the two groups. The buyer from

Hanoi city give mean of 2.84 corresponding with F medium (Fair) level while the buyers from

other provinces give lower mean of 2.70 corresponding with low F (Fair) level.

In terms of items The product is advertised on the billboards; The product is

advertised in the popular newspapers; The company organizes customer meetings; The products

are displayed at trade fairs; The company holds events for promotion; and There are gifts

when buying products, the two groups show their average points of view when they give

medium means corresponding with F (Fair) levels.

42
 In terms of items The product is advertised on TV; The product is advertised on the

radio; The product is advertised on the Internet, the two groups show their disagreements by

giving low means corresponding with P (Poor) levels. They think that Hoa Binh Automobile

Joint Stock Company does not have good enough promotion strategies in terms of these items.

Table 6: Respondents perceptions on the marketing strategies of Hoa Binh Automobile

Joint Stock Company in terms of Place Strategy

In Hanoi In other Weighted

Place Strategy city province Mean
Mean VI Mean VI Mean VI
1. The product inventory is available to
2.61 F 2.94 F 2.72 F
satisfy the demand of customers
2. The company is willing to deliver the
product directly to customers no matter 3.43 G 3.42 G 3.42 G
where they are
3. The company has wide network of
2.11 P 2.4 P 2.32 P
showrooms
Average 2.56 F 2.92 F 2.82 F

Table 6 shows the respondents perceptions on the marketing strategies of Hoa Binh

Automobile Joint Stock Company in terms of Place Strategy. According to the data shown at

this table, the general mean given by the respondents is 2.82 corresponding with F (Fair)

level. We can infer that the customers stand neutral with the place strategies of the company.

There is a big gap between the perceptions of the two groups. The buyer from Hanoi city

give mean of 2.56 corresponding with P (Poor) level while the buyers from other provinces

give higher mean of 2.92 corresponding with medium F (Fair) level.

43
 The two groups all agree with the item The company is willing to deliver the

product directly to customers no matter where they are by giving mean of 3.43 and 3.42

corresponding with G (Good) levels.

In terms of item The product inventory is available to satisfy the demand of

customers, there is a very large gap between the perceptions on the two groups. While the

buyers in Hanoi city show their dissatisfaction by giving mean of 2.61 corresponding with

low F (Fair) level, the buyers from other provinces stand neutral when they give mean of

2.93 corresponding with F (Fair) level.

In terms of item The Company has wide network of showrooms, the two groups
show their disagreements by giving low mean corresponding with P (Poor) levels. They

think that Hoa Binh Automobile Joint Stock Company does not have a wide network of

showrooms.

Table 7: Respondents perceptions on the marketing strategies of Hoa Binh Automobile

Joint Stock Company in terms of People strategy

44
 In Hanoi In other Weighted
People strategy city province Mean
Mean VI Mean VI Mean VI
1. The sale persons are friendly and
3.21 F 2.89 F 2.98 F
enthusiastic
2. The sale persons are analytical
understand the technical standards of the 2.11 P 2.99 F 2.74 P
products
3. The sale persons are well dressed 3.25 F 3.35 F 3.32 F
4. The sale persons introduce the rights when
3.25 F 3.29 F 3.28 F
buying products such as gifts or discounts
Average 2.96 F 3.13 F 3.08 F
Table 7 shows the respondents perceptions on the marketing strategies of Hoa Binh

Automobile Joint Stock Company in terms of People strategy.

As can be seen from the data shown at this table, the general mean given by the

respondents is 3.08 corresponding with F (Fair) level. We can infer that the customers stand

neutral with the people strategies of the company. There is not a big gap between the

perceptions of the two groups. The buyer from Hanoi city give mean of 2.96 corresponding

with very medium F (Fair) level while the buyers from other provinces give higher mean of

3.13 corresponding with high F (Fair) level.

In terms of item The sale persons are analytical understand the technical standards

of the products, there is a very large gap between the perceptions on the two groups. While

the buyers from Hanoi city show their dissatisfaction by giving mean of 2.11 corresponding

with P (Poor) level, the buyers from other provinces stand neutral when they give mean of

2.99 corresponding with F (Fair) level.

In terms of other items The sale persons are friendly and enthusiastic; The sale

persons are well dressed; and The sale persons introduce the rights when buying products such

45
as gifts or discounts, the two groups show their fair perceptions by giving means

corresponding with F (Fair) levels.

4.3 Significant difference of the respondents perceptions on the marketing strategies at

Hoa Binh Automobile Joint Stock Company and their profile.

In this section, One-Way ANOVA is used to test whether there is significant difference
between respondents perceptions on the marketing strategies at Hoa Binh Automobile Joint
Stock Company and their profile.

46
 Table 8: Computed F_value on One-Way ANOVA of the significant difference between
the respondents place of residence and their perceptions on the marketing strategies of
Hoa Binh Automobile Joint Stock Company

NOVA

Sum of Mean
df F Sig. Ho VI
Squares Square

Between 0.55 12.0 0.00

0.551 1 Reject Sig.
Groups 1 4 1
Product Within 0.04
strategy 4.486 98
Groups 6
Total 5.037 99
Between 0.30 0.04
0.304 1 3.84 Reject Sig.
Groups 4 3
Pricing Strategy Within 0.07
7.75 98
Groups 9
Total 8.054 99
Between 0.37 5.35 0.02
0.377 1 Reject Sig.
Groups 7 6 3
Promotion Within
Strategy Groups
6.892 98 0.07
Total 7.269 99
Between 2.63 22.5
2.639 1 0 Reject Sig.
Groups 9 74
Within 11.45 0.11
Place Strategy 98
Groups 5 7
14.09
Total 99
3
Between 0.60 8.02 0.00
0.604 1 Reject Sig.
Groups 4 2 6
People strategy
Within 0.07
7.381 98
Groups 5
Total 7.985 99

Table 8 shows the Computed F_value on One-Way ANOVA of the significant

difference between the respondents place of residence and their perceptions on the marketing
strategies of Hoa Binh Automobile Joint Stock Company.

According to the data shown at the Table 8, for all selected variables relating to the
perceptions of the respondents on the marketing strategies at Hoa Binh Automobile Joint
Stock Company, the Sig. is lower than 0.05 which allow us to reject the null hypotheses (Ho)
and accept the alternate hypotheses (H1). We can infer from the data that there is significant

47
difference between the respondents place of residence and their perceptions on the marketing
strategies at Hoa Binh Automobile Joint Stock Company in terms of the selected variables.

Table 9: Computed F_value on One-Way ANOVA of the significant difference between

the respondents years of product use and their perceptions on the marketing strategies
of Hoa Binh Automobile Joint Stock Company

ANOVA
Sum of Mean
df F Sig. Ho VI
Squares Square
Between 0.26 5.36 0.02
0.261 1 Reject Sig.
Product
Groups 1 1 3
Within 0.04
4.776 98
strategy Groups 9
Total 5.037 99
Between 0.26 3.32 0.07 Not
0.264 1 Accept
Groups 4 8 1 Sig.
Pricing Strategy Within 0.07
7.789 98
Groups 9
Total 8.054 99
Between 0.37 5.30 0.02
0.373 1 Reject Sig.
Promotion Groups 3 8 3
Within
6.895 98 0.07
Strategy Groups
Total 7.269 99
Between 11.1 0.00
1.44 1 1.44 Reject Sig.
Groups 53 1
Within 12.65 0.12
Place Strategy 98
Groups 3 9
14.09
Total 99
3
Between 1.11 0.29 Not
0.09 1 0.09 Accept
Groups 7 3 Sig.
People strategy Within 0.08
7.895 98
Groups 1
Total 7.985 99
Table 9 shows the Computed F_value on One-Way ANOVA of the significant
difference between the respondents years of product use and their perceptions on the
marketing strategies of Hoa Binh Automobile Joint Stock Company.

According to the data shown at the Table 9, for variables product, promotion and
place relating to the perceptions of the respondents on the marketing strategies at Hoa Binh
Automobile Joint Stock Company, the Sig. is lower than 0.05 which allow us to reject the null

48
hypotheses (Ho) and accept the alternate hypotheses (H1). We can infer from the data that
there is significant difference between the respondents years of product use and their
perceptions on the marketing strategies at Hoa Binh Automobile Joint Stock Company in
terms of these selected variables.

For variables price and people relating to the perceptions of the respondents on the
marketing strategies at Hoa Binh Automobile Joint Stock Company, the Sig. is higher than
0.05 which allow us to accept the null hypotheses (Ho) and reject the alternate hypotheses
(H1). We can infer from the data that there is no significant difference between the
respondents years of product use and their perceptions on the marketing strategies at Hoa
Binh Automobile Joint Stock Company in terms of these selected variables.

4.4 Problems and limitations of the marketing strategies of Hoa Binh Automobile Joint
Stock Company

This section presents the problems and limitations with regard to the marketing strategies of
Hoa Binh Automobile Joint Stock Company as perceived by the customers.

Product Strategy

1. The product diversification in terms of shape is poor.

49
2. The product diversification in terms of color is poor.

3. The customers can not return the purchased products if not satisfied.

Pricing Strategy

1. The prices are not very affordable.

2. The prices are not competitive in comparison with those of others.

3. The products are not sold on credit or the company does not accept deferred payment.

Promotion Strategy

1. There is not good advertisement on TV.

2. The products are not well advertised on the radio.

3. The company does not care about advertising the products on the internet.

Place Strategy

1. The company does not have wide network of showrooms.

People strategy

1. The sales person lack of analytical knowledge to give good advice and consultation.

4.4 Proposed solutions for enhancing marketing strategies for Hoa Binh Automobile
Joint Stock Company

Based on the problems and limitations revealed from the previous sections, here are the
proposed solutions for enhancing marketing strategies of Hoa Binh Automobile Joint Stock
Company in the coming time. The overall strategies can be separated as follow:

Product Strategy

50
To enhance the competition with other auto firms in Vietnam, Hoa Binh Automobile Joint
Stock Company should design or import models to diversify the products in terms of shapes
and colors to satisfy the requirements of increasing different choices of customers. To make
the customers not hesitate to buy or not, the company can invite the buyers from other
provinces to use in advance or have driving tests. If the customers are not fully satisfied, the
can return the products. This may be costly and time consuming but it will help to attract more
and more customers in the future.

Pricing Strategy

Increase the productivity to reduce the costs of goods sold so that Hoa Binh Automobile Joint
Stock Company can reduce the prices to compete with the competitors. For those who are in
difficulties paying at sign but have good financial condition, the company can let them buy on
credit to facilitate their investments.

Hoa Binh Automobile Joint Stock Company can cooperate with commercial banks and
financial companies for making loans to the buyers who are presently in difficulties of paying
for the products.

Promotion Strategy

Promotion plays a very important role in marketing the products for any company. Hoa Binh
Automobile Joint Stock Company has not done well some of these practices. In the future, so
as to attract the attention of the potential customers, the company needs to advertise its
products on TV, radio and on the internet like many other auto companies. Hoa Binh
Automobile Joint Stock Company can also set up its own website for delivering information
to the buyers as well as promoting its products.

Place Strategy

Invest more to increase the number of network of showrooms in big cities in Vietnam to
attract the attention and provide spare parts as well as other servicing. This can be done by
integrating with large garages in the cities for making use of their existing amenities which
can save much money and time.

51
People Strategy

Hoa Binh Automobile Joint Stock Company needs to retrain the sales persons to have good
knowledge of the products so that they can give full information about the products. This is
very important because it is very difficult for a customer to decide to buy if he can not have
enough information about the product.

CHAPTER 5

CONCLUSION AND POLICY RECOMMENDATIONS

This chapter presents the summary of findings, conclusions and recommendations which are
based on the problems announced in the previous chapters of this study.

5.1 Summary of findings

52
 The study was carried out to assess the marketing strategies of Hoa Binh Automobile
Joint Stock Company. Based on the result of the study, the research aims to propose the
solutions for improving the marketing strategies of the company.

There were 50 buyers addressed in Hanoi city and 50 buyers from other provinces
serving as the respondents of the study. The respondents were asked to rate the items relating
with five selected variables product, price, promotion, place and people.

In terms of variable Product Strategy, the respondents give low means to items The
product is diversified in shape; The product is diversified in color; and The product can be
returned if not satisfied.

In terms of variable Pricing Strategy, the respondents give low means to items The
price of product is reasonable; Prices are competitive with similar products; and The product is sold
on credit.

In terms of variable Promotion Strategy, the respondents give low means to items
The product is advertised on TV; The product is advertised on the radio; and The product is
advertised on the Internet.

In terms of variable Place Strategy, the respondents give low means to item The
company has wide network of showrooms.

In terms of variable People strategy, the respondents give low means to item The
sale persons are analytical.

For all 5 selected variable, the Sig. is lower than 0.05.

5.2 Conclusions

The customers are dissatisfied with the product strategy for poor diversification of shape and
color and they want to return the products if not satisfied.

The customers want to buy for cheaper prices and to purchase on credit.

Hoa Binh Automobile Joint Stock Company does not conduct good advertisement on TV,
radio and the internet.

The company does not have good showroom network.

53
The sales person is not qualified for the analytical tasks.

There is significant difference between the respondents place of residence and their
perceptions on the marketing strategies of Hoa Binh Automobile Joint Stock Company in
terms of in terms of selected variables.

5.3 Recommendations

The marketing strategies of Hoa Binh Automobile Joint Stock Company can be improved as
the followings:

Hoa Binh Automobile Joint Stock Company should design or import models to diversify the
products in terms of shapes and colors.

Increase the productivity to reduce the costs of goods sold to reduce the prices. The company
can let them buy on credit to facilitate their investments.

The company needs to advertise its products on TV, radio and on the internet.

Hoa Binh Automobile Joint Stock Company needs to increase the number of network of
showrooms in big cities in Vietnam to attract the attention and provide spare parts as well as
other servicing.

Hoa Binh Automobile Joint Stock Company needs to retrain the sales persons to have good
knowledge of the products.

REFERENCES

Nguyen Van Chien (2008) Solutions for improving the Marketing Mix Strategies of Truong

Hai Auto Company

Tran Van Binh (2007) Enhancing the Marketing Strategies of Hoa Binh Auto Company

Dao, Tran Minh (2009) Basic Marketing, Publisher National Economics University

54
Hanh, Duong Huu (2005) Marketing Research, Statistical Publishing House

Kotler, Philip (2007) Marketing Essentials, Publisher labor Activities - Aocial

Lan, Nguyen Xuan. Marketing Management, Education Publishing House, 2007

Tai, Do Anh. , Curriculum Data Analysis System Statistics, Statistics Publishers, 2008.

Chu, Ka-wai (2009) A study of marketing strategy of shopping centre for customer

retention in Hong Kong

Kotler, Philip & Armstrong, Gary. 2004. Principles of marketing. Tenth edition. United States.
Pearson education Inc.

Kotler, Philip. 1997. Marketing management; analysis, planning, implementation and control.
Ninth edition. United Sates. Pearson education Inc.

Goeldner, Charles R. & Brent, Ritchie J.R. 2009. Tourism; Principles, Practices, Philosophies.
United States. John Wiley & Sons Inc.

INTERNET SOURCE

http://tutor2u.net/business/gcse/marketing_role_in_business.htm

http://heidicohen.com/marketing-definition/

http://en.wikipedia.org/wiki/Marketing

http://marketingteacher.com

http://www.learnmarketing.net

http://www.hocmarketing.edu.vn

http://en.wikipedia.org/wiki/Marketing_mix

http://marketingteacher.com/lesson-store/lesson-marketing-mix.html

http://www.netmba.com/marketing/mix

http://www.vnedoc.com/2011/04/chien-luoc-marketing-mix.html

http://www.quickmba.com/marketing/mix

http://tailieu.vn/tag/tai-lieu/marketing%20mix.html

55
 SURVEY QUESTIONNAIRE

Directions: Please answer the following questionnaire by putting a checkmark on the item
that corresponds to your choice or by filling in the answer on the space provided. Rest assured
that any information will be treated with trust and confidentiality.

PART I: PROFILE OF RESPONDENT.

1. Place of residence

56
 ______in Hanoi city
______in other provinces

2. Years of product use

______Below 5 years
______more than 5 years

PART II: PERCEPTIONS OF THE CUSTOMERS ON THE EXISTING MARKETING STRATEGIES

OF HOA BINH AUTOMOBILE JOINT STOCK COMPANY

Please rate the following items that describe the marketing strategies currently used by
Hoa Binh Automobile Joint Stock Company. Please use the following scale below for your
rating.
5 Strongly Agree;
4 Agree;
3 Neither Agree nor Disagree;
2 Disagree;
1 Strongly Disagree

1. Product Strategy

Product Strategy 5 4 3 2 1
1 The brand name is well known
2 The product is economical
3 The product is diversified in shape
4 The product is diversified in color
5 The product is well decorated

57
 6 The product is well facilitated
7 The product is durable
8 The product meets the requirements for safety
9 The product can be returned if not satisfied

2. Pricing Strategy

Pricing Strategy 5 4 3 2 1

1 The price of product is reasonable

2 Prices are competitive with similar products

3 Price can be negotiated

4 Price is listed

5 The product is sold on credit

6 The customer has discounts for large quantity

7 The customer has discounts for quick payment

3. Promotion Strategy

Promotion Strategy 5 4 3 2 1
1 The product is advertised on TV
2 The product is advertised on the radio
3 The product is advertised on the billboards
4 The product is advertised on the Internet
5 The product is advertised in the popular newspapers
6 The company organizes customer meetings
7 The products are displayed at trade fairs
8 The company holds events for promotion
9 There are gifts when buying products.

58
4. Place Strategy

Place Strategy 5 4 3 2 1
The product inventory is available to satisfy the
1
demand of customers
The company is willing to deliver the product
2
directly to customers no matter where they are
3 The company has wide network of showrooms

5. People strategy

People Strategy 5 4 3 2 1
1 The sale persons are friendly and enthusiastic.
The sale persons are analytical understand the
2
technical standards of the products.
3 The sale persons are well dressed
The sale persons introduce the rights when buying
4
products such as gifts or discounts

59
 SURVEY QUESTIONNAIRE/ CU HI KHO ST

Directions: Please answer the following questionnaire by putting a checkmark on the item
that corresponds to your choice or by filling in the answer on the space provided. Rest assured
that any information will be treated with trust and confidentiality./ Hng dn: Hy tch vo
thch hp cho bit quan im ca bn v cc mc trong bng hi. Nhng thng tin s c
bo mt tuyt i

PART I: PROFILE OF RESPONDENT/ Thng tin v i tng kho st

1. Place of residence/ a ch
______in Hanoi city/ H Ni
______in other provinces/ cc tnh khc

2. Years of product use/ thi gian s dng sn phm

______Below 5 years/ di 3 nm
______more than 5 years/ tren 7 nm

PART II: PERCEPTIONS OF THE CUSTOMERS ON THE EXISTING MARKETING STRATEGIES

OF HOA BINH AUTOMOBILE JOINT STOCK COMPANY/ QUAN IM CA KHCH HNG V
CHIN LC MARKETING HIN TI CA CNG TY T HA BNH

Please rate the following items that describe the marketing strategies currently used by Hoa
Binh Automobile Joint Stock Company. Please use the following scale below for your rating./
Hy nh gi nhng tiu ch lien quan n chin lc marketing hin ti ca Cng ty t
Ha Bnh.

5 Strongly Agree/ rt tn thnh; 4 Agree/ tn thnh; 3 Neither Agree

nor Disagree/ trung lp; 2 Disagree/ khng tn thnh
1 Strongly Disagree/ rt khng tn thnh

60
1. Product Strategy/ chin lc sn phm

Product Strategy 5 4 3 2 1
1 The brand name is well known/ thng hiu ni ting
The product is economical./ sn phm kinh t - tit kim
2
nhin liu, t phi sa cha
3 The product is diversified in shape/ SP a dng v hnh thc
4 The product is diversified in color/ SP a dng v mu sc
5 The product is well decorated./ SP dc thit k p
6 The product is well facilitated./ Sp dc trang b tin nghi
7 The product is durable./ Sp bn tt
The product meets the requirements for safety./ SP p
8
ng cc tiu chun v an ton
The product can be returned if not satisfied./ SP c th i
9
li nu khng hi lng

2. Pricing Strategy/ Chin lc v gi

Pricing Strategy 5 4 3 2 1

61
 1 The price of product is reasonable/ gi bn hp l

Prices are competitive with similar products/ gi cnh

2
tranh vi cc sn phm tng t

3 Price can be negotiated/ gi c th thng lng

4 Price is listed/ gi dc nim yt

The product is sold on credit/ sn phm c dc bn vi

5
hnh thc thanh ton chm (bn chu)

The customer has discounts for large quantity/ Khch

6
hng c dc gim gi khi mua s lng ln

The customer has discounts for quick payment./ Khch

7
hng c dc gim gi khi thanh toan ngay.

3. Promotion Strategy/ chin lc qung b xc tin hn hp

Promotion Strategy 5 4 3 2 1
The product is advertised on TV/ SP dc qung co
1
trn TV
The product is advertised on the radio/ SP dc qung
2
co trn Radio
3 The product is advertised on the billboards/ SP dc

62
 qung co trn bin hiu
The product is advertised on the Internet/ SP dc
4
qung co trn Internet
The product is advertised in the popular newspapers/
5
SP dc qung co trn nhng t bo uy tn
The company organizes customer meetings/ Cty c t
6
chc hi ngh khch hng
The products are displayed at trade fairs/ SP c dc
7
gii thiu cc hi ch
The company holds events for promotion./ cty c t
8
chc cc s kin qung bn SP
There are gifts when buying products./ Cty c tng
9
qu cho KH mua SP

4. Place Strategy/ chin lc phn phi

Place Strategy 5 4 3 2 1
The product inventory is available to satisfy the
1 demand of customers./ SP lun sn c p ng
ngay nhu cu ca khch hng
The company is willing to deliver the product
directly to customers no matter where they are./ cty
2
sn lng a sn phm n tn tay khch hng cho d
h bt c u
The company has wide network of showrooms./ sty
3
c mng li showroom rng

5. People strategy/ chin lc v con ngi

People Strategy 5 4 3 2 1

63
 The sale persons are friendly and enthusiastic./ cn
1
b bn hng c thn thin v nhit tnh
The sale persons are analytical understand the
technical standards of the products. / Nhn vin c
2
nm bt y thng s k thut cng nh nhng
thng tin khc v Sp
The sale persons are well dressed./ Nhn vin n mc
3
lch s
The sale persons introduce the rights when buying
products such as gifts or discounts/ nhn vin c
4
gii thiu cc quyn li ca khch hng nh qu tng
hay chit khu

64