VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS NGUYEN VUONG PHUONG AN THE APPLICATION OF INTERNET MARKETING IN VIETNAM STATUS & SOLUTION Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr. NGUYEN THI PHI NGA Hanoi – 2010 CONTENTS Page INTRODUCTION.1 CHAPTER 1: OVERVIEW INTERNET MARKETING. THE CONCEPT OF INTERNET MARKETING.3 Concept of Electronic marketing and Internet marketing. Some of the different characteristics between E-marketing, Internet marketing and traditional marketing.
ACTIVITIES OF INTERNET MARKETING. The Internet produce.2 The channel of Internet direct distribution.3 Price and control of price by Internet. Integrated Marketing Communication.5 Customer Relationship Management. THE ROLE OF MARKETING VIA INTERNET.
For the customer. For the society. For business activities. THE INTERNET MARKETING ACTIVITIES IN OTHER COMPANIES IN THE WORLD.
STATUS OF INTERNET MARKETING IMPLICATION IN VIET NAM. CONDITIONS OF INTERNET MARKETING IMPLICATION IN VIETNAM. Conditions of infrastructure. Human resource conditions.
INTERNET MARKETING ACTIVITIES IN VIET NAM.1 Situation of Internet marketing application in Vietnam. Marketing by searching engine.5 Marketing by “virtual society”. PR on Internet. Assessment of Internet marketing in Vietnam.
Some of the results achieved through Internet marketing activities in Viet Nam. Some shortcomings of Internet marketing in Vietnam. SOLUTIONS TO THE EFFICIENT DEVELOPMENT OF INTERNET MARKETING IN VIET NAM. DIRECTION TO THE DEVELOPMENT FOR INTERNET MARKETING IN VIET NAM.
Direction for the State. Direction to the development of Internet marketing. Training improvement in E – Commerce and Internet marketing 65 3. Extensive use of online advertisement.
Increase PR activities to establish trademark. Internet marketing engines. SOLUTIONS TO THE EFFICIENT DEVELOPMENT OF INTERNET MARKETING IN VIET NAM. Solutions at the governmental level.1 Developing of legal infrastructure.
Developing infrastructure technology. Training and educating, popularization of E-Commerce 71 3.4 Improving a safe system of internet. Co-operating actively in international E - Commerce and Internet marketing area. Solutions at the business enterprises level.
Changing perceptions about the Internet Marketing and Marketing 75 3. Internet Marketing planning. Internet Marketing plan budgeting. Internet Marketing Training.
Internet Marketing engines application. 89 v LIST OF TABLE MAP AND IMAGE Map 1.1: Planning business strategies 25 Image 2.1: Leading search engine in the world 41 Image 2.2: Vietnamworks’ website 49 Image 2.3: Hapro’s website 54 Table 1.1: Customer care supplying channel 22 Table 1.2: The number of people using internet throughout the world 24 Table 2.1: State of development of internet in Vietnam 30 9 LIST OF ABBREVIATIONS VNNIC Viet Nam Internet Network Information Center www World wide web AMA American marketing association B2B Business to Business B2C Business to Customer B2G Business to Government PDA Personal Digital Assistant PR Public Relationship SWOT Strengthen, Weakness, Opportunities, Threaten TCP/IP Internet Protocol Suite VCCI Vietnam Chamber of Commerce and Industries 1 INTRODUCTION 1. The necessary of the research According to Viet Nam Internet Network Information Center (VNNIC) statistics, the number of Internet users in Vietnam in 2007 was 18.5 million equivalents to 22% of the population and the number of Internet subscribers had reached 5.2 millions subscribers; 20-25% of the 150,000 businesses in the nation have its own website. These statistics indicate the Internet’s significant development in Vietnam as well as enterprises’ perceptions about the advantages of the Internet.
Internet does not only criminate distant time but also makes the traditional business activities become more effectively as well as create more opportunities in business. The Marketing concept has just been known in Vietnam since the late 1990s. Although many Vietnamese enterprises have not been accustomed to the new marketing knowledge with the booming of Internet, they saw the extremely interesting variation of this activity. Internet marketing is not only the great advantages but also the exciting challenges to many companies because Internet has its characteristics that are different from traditional business.
Therefore it is not suitable to apply traditional Marketing methods to Internet. Although 20-25% of Vietnamese enterprises have websites, most of them are simple such as establishing website to give information monotonously or advertising on Internet… The general marketing knowledge and Internet marketing methods are not known widely and deeply in Vietnam. Therefore, researching in Internet marketing systematically in Vietnam is really important. Literature Review Marketing activities in general and Internet marketing in particular have been researched by many economic experts such as Philip Kotler, Judy Strauss, Dave Chaffey, etc.
In Vietnam, the issue of Marketing was taught in the universities for about 10 years ago. Though the knowledge of Internet marketing activities are new, many research have been conducted on it as scientific research project. For example, the ministerial research “Solutions to apply e-Marketing for exporter’s enterprises in Vietnam” was implemented by Dr. Pham Thu Huong in 2007 3.
The Objects and scope of the research The research concentrates on the Internet marketing activities in small and medium-sized businesses to shown the strength as well as the shortcomings of these activities. Thus we can propose the solutions and requirements to make the Marketing system more suitable for Vietnam enterprises. For the curent research’s scope, it only focus on the period of 5 years recently when Internet is exploded and the E - Commerce’s appearance creates the necessary of Internet marketing activities in small and medium- enterprises in Vietnam. Research Questions: - How is the situation of internet marketing in Vietnamese Enterprises? Are there any problems in that situation? - How is the trend of internet marketing applications in companies in the world? - What are the solutions to enhance the effecient of internet marketing application in Vietnam in coming years? 5.
The Research methodology This research combines differentt methods which are the following: 2 Second data using: Because it’s a new matter in Vietnam so the author applied this method to learn the theories and the realities of Internet marketing application in the enterprises so we could have an overview of Internet marketing development. Data analysis: The statistic data will help us consider the Internet marketing development to have more accurate predictions so we can recommend more effective solutions. The structure of the research This research was constructed into 3 chapters: Chapter 1: OVERVIEW OF INTERNET MARKETING Chapter 2: STATUS OF INTERNET MARKETING APPLICATION IN VIET NAM Chapter 3: SOLUTIONS TO THE EFFICIENT DEVELEOPMENT OF INTERNET MARKETING IN VIET NAM 3 CHAPTER 1: OVERVIEW INTERNET MARKETING 1. THE CONCEPT OF INTERNET MARKETING The break-out of internet have created many great changes in every aspect of life and have lead to many excellent things that have never been created before.
Moreover, many new concepts which are related to Internet have appeared such as: E- Marketing, Internet Marketing, marketing online… So what is Internet? What are Marketing and the new concepts was born from a combination between internet and Marketing? In this part, we will bring out the meaning of Internet concept, marketing concept. Then we will consider them in the relationship with new concepts like Internet marketing, E-marketing to find out the differences.1 Marketing concept There are many different notions of marketing. Marketing is a process of organizing sales force to sell the company’s products. Marketing is a process of advertising and selling.
Marketing is the activity of learning about and satisfy the market’s need. Marketing is doing market, researching market to satisfy it. In this research, the author followed this definition: marketing is socioeconomic structures which organization and individuals use to meet their needs and wishes fully by a process of exchanging products on the market. According to Philip Kotler, Marketing is a process of managing that has social characteristics.
Therefore individuals and teams have what they need and want by the activity of creating, selling and exchanging the products that are valuable for other people. This Marketing concept is based on the core concepts: need, want and demand, product, value, expense and satisfaction, exchange, transaction and relationship, marketplace, marketing and marketers. 4 Need, want and demand: Marketing began with human needs and their real wishes. People need food, air, water, clothes and safe place to survive.
Moreover, people want to relax, to study and come in for many other services. They also like models and trademarks of the basic service commodities. It is necessary to distinguish the need, want and demand concepts. Need is a status when they feel lacking of a basic satisfaction.
For example, people need food, clothes, accommodation, safety, property, appreciation. These needs are not created by society or marketers. They have existed as a part of the body and by oneself of that person. Want is a longing for specific things to satisfy the deeper need.
An American need for food and wish to have hamburger, need for clothes and wish to have Pierre Cardin, need for appreciation and wish to have a Mercedes automobile. In another society, these needs are met fully by other ways: The Australian aboriginal satisfy their hungry feeling by penguins; demand for clothing as well as clothes by a loin-cloth, appreciation by a necklace. Human needs are not so many but their wants are much more. Human wants always develop.
They are formed by the forces and social forces such church, school, family and enterprises. Demand is a wish to have the specific products that are supported by ability and readiness to buy them. The want becomes demand when purchasing power supports. Many people wish to have a Mercedes automobile but only a few of them have the ability and ready to buy it.
Therefore, companies not only determine the quantity of people who want to buy their products but also quantify how many of them are ready and afford the car. These different characteristics bring out the critical ideas of the people who accuse marketing of “creating demand” or “those who do marketing lure 5 people to buy what they don’t want”. Marketers do not create demand. Demand existed before marketing activity appearance.
With other social influences, marketers have effect on what they want. However they don’t create the demand on social status. They have the effects on demand by making appropriate, attractive and popular products. Product: People satisfy their demand by commodities and services.
Product term is understood as the consist of commodities and services. We define product as anything that can be sold to satisfy someone’s demand or wish. The significance of buying product is not only to own them but the operation and service that they bring to the human. We buy an automobile because we want to see it all day.
We buy it because it provides transport service. We buy a kitchen not to watch it but to use it. The kitchen is a useful mean to insure our meals. Services are determined by many things such as: human beings, place, activities, organization and ideas.
If we feel sad, we can go to see hilarious films, join singles club or agree with different ideas. Therefore, we use product term to refer to material products, service products and other means that can satisfy a demand or a wish. Sometimes, we use many other terms instead of product, commodities, demand or resources. Cost value and satisfaction: In many products that can satisfy a certain demand, how does the customer choose? Suppose a person must go 3 miles to their office.
There are some products can satisfy this demand: roller- skating, bicycle, motorbike, car, taxi and bus. The plan for this ability to create a product selection. Suppose he wants to meet some other demands on the way to work such as: safety, convenience, speed, economical. We call it as demand set.
Each product can satisfy each different human’s need. Bicycle is slower, not safer but more economical. However, he must decide which product will meet fully all his needs. 6 The main concept is the value to the customer.
He will evaluate the product’s usefulness that satisfies his demand set. He can categorize products from the most useful one to the least. Value is the customer’s evaluation of the product’s function that can meet his needs fully. We can ask him to imagine an ideal product that he would considers most.