THEORY FOUNDATION ABOUT MARKETING
General about Marketing Communications
Communication involves conveying a message and consists of six essential elements: a source, a message, a communication channel, a receiver, and the processes of encoding and decoding The source, which can be an individual or a company, possesses information to share, such as details about a new service This information constitutes the message, which is transmitted through various channels, including sales personnel, advertising media, or public relations tools The receivers are the clients who engage with the message through reading, listening, or viewing.
Source: Managing Service Marketing, John E.G Baterson, K.Douglas Hoffman
Marketing communications encompass all interactions between an organization and its stakeholders, particularly customers As a key aspect of marketing research, it includes traditional promotional methods such as advertising, sales promotions, personal selling, publicity, public relations, direct marketing, and e-marketing However, it extends beyond these methods to incorporate every point of contact between the organization and its audience.
T he Marketing Communications Mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing a company uses to pursue its marketing objectives
Figure 1-2: The tools of the marketing communication mix
Setting Marketing Communication Strategy for Service Firms
A successful communications strategy follows a consistent pattern, regardless of whether a company offers goods or services It begins with identifying a target audience and establishing clear objectives for the overall communication mix, which includes key elements such as advertising, public relations, personal selling, sales promotion, and direct marketing While personal selling typically involves two-way communication, the other elements primarily represent one-way communication from the marketer to the customer In the context of services, service providers play a crucial role in facilitating two-way communication during interactions with customers.
Figure 1-3: Marketing Communication Strategy for Service Firms
Source: Managing Service Marketing, John E.G Baterson, K.Douglas Hoffman
1.2.1 Define the Target Audience and Objectives
Identifying the target audience is essential for a successful marketing strategy and requires a deep understanding of consumer behavior Early determination of the target customer is crucial, as it shapes the entire service formula Unlike physical products, services demand a more precise targeting of the audience to ensure effective delivery and engagement.
Setting communication objectives for services
To ensure that a company's service is viewed as the least risky option, effective communication strategies should be employed to influence the decision-making process.
To ensure that the firm‟s service offering is in the evoked set
To alter the weights attached to different attributes by consumers to favor those on which the company is strong
To alter the score on a given attribute for the company, particularly if there is gap between performance and consumers‟ perceptions
To alter the score on a given attribute given to a competitor, again particularly if there is a gap between performance and consumers‟ perceptions
If the company is not in the evoked set, to build enough awareness of the offering to arouse inclusion
In this phase, consumers play an active role in the production process, which is crucial for achieving successful outcomes For firms, effective consumer participation enhances operational efficiency and boosts overall customer satisfaction Conversely, consumers benefit from this involvement as it fosters a sense of control and likely leads to increased satisfaction during the post-consumption phase.
Effective communication during this phase is crucial for ensuring successful performance, as it provides consumers with a clear script tailored to the specific service operation.
Consumer expectations are shaped by various factors, both controllable and uncontrollable by the service firm These expectations can stem from prior experiences with the firm or its competitors, as well as from different forms of communication The goal in this phase is to align customer expectations with the performance attributes of the service delivery system.
1.2.2 Divide the Communications Objectives and Target Audiences among the Channels
After establishing the overall objectives and identifying the target audiences for the communication mix, it's essential to allocate tasks among advertising, sales, public relations, and point-of-sale messaging This involves aligning the tasks with the strengths of various communication channels and understanding how consumers engage with these channels to achieve specific goals.
When assigning tasks across various communication channels, it's essential to consider how effectively a message can be tailored to specific audiences Media advertising differs in its targeting capabilities; for instance, while TV ads can reach a wide audience, they lack selectivity, primarily varying by the time of day In contrast, national print media like newspapers and magazines provide a more focused approach, as they are designed to appeal to particular consumer segments.
Trade magazines cater to a highly specialized audience, while direct mail provides the most targeted approach among impersonal media options When selecting between these media, it's essential to consider the cost per thousand members of the target audience, as well as the risks and expenses associated with potentially reaching the wrong segment.
Key differences in information usage between goods and services
To effectively craft communication messages for a service, it is essential to recognize the fundamental differences in information utilization between goods and services Understanding these distinctions is vital for appropriately segmenting communication objectives, identifying target audiences, and allocating budgets across various channels.
Service consumers often require more information before making a purchase compared to those buying goods, as the perceived risk associated with services is higher This necessity for information helps consumers mitigate potential risks and make informed decisions prior to their purchase.
Consumers tend to favor personal sources of information over impersonal ones when it comes to services Given that services are experiential and challenging to define prior to purchase, while TV advertising can showcase the experience, individuals prefer insights from those who have directly or indirectly experienced the service.
In the realm of personal services, customers tend to trust independent information sources more than those linked to the company due to the high risk involved Consequently, consumers are more inclined to rely on mass advertising from relatable individuals rather than traditional mass advertising methods.
Leveraging word-of-mouth communication through advertising and promotional strategies can effectively encourage satisfied customers to share their positive experiences with others By incorporating testimonials from happy customers into media advertising, businesses can directly enhance their credibility and attract new consumers.
Consumer information sources are generally categorized into internal and external sources, both of which assist consumers in managing perceived risks Internal sources are primarily associated with memory recall, playing a crucial role in the decision-making process.
Marketing Communication Tools
Advertising is a paid, nonpersonal communication method used by organizations to promote goods, services, or ideas, with a clearly identified sponsor This paid nature is crucial, as it requires purchasing space for the advertising message Typically, advertising utilizes mass media channels like television, radio, and magazines, which lack the immediate feedback loop found in personal selling.
There are several advantages to a firm using advertising in its communication mix
Advertising effectively captures attention while highlighting the specific benefits of products or services to potential customers By purchasing advertising space, companies gain control over their messaging and can target specific audiences This strategic approach also allows businesses to choose the timing of their communications Additionally, the nonpersonal nature of advertising offers advantages; once a message is crafted, it can be uniformly distributed to all recipients within a market segment With proper pretesting, companies can confidently ensure that their message will be interpreted consistently by the entire target audience.
Advertising presents challenges, including high production and placement costs, along with the difficulty of obtaining direct feedback, which complicates the assessment of how effectively the message was received.
1.3.1.2 Types of advertisements a) Product advertisements
Focus on selling a good or service, product advertisements take three forms: (1) pioneering (or informational), (2) competitive (or persuasive) and (3) reminder
Pioneering advertisements play a crucial role in the introductory stage of a product's life cycle by educating consumers about what the product is, its functionalities, and its availability The primary goal of these informative ads is to effectively inform the target market, as research indicates that such ads are not only interesting but also convincing and impactful.
Competitive advertising focuses on highlighting the unique features and benefits of a specific brand to persuade consumers to choose it over competitors A prevalent strategy in this realm is comparative advertising, which emphasizes a brand's strengths in relation to its rivals To effectively utilize comparative advertising, companies must conduct thorough market research and gather test results to substantiate their claims legally.
Reminder advertising serves to reinforce existing knowledge of a product, making it particularly effective for well-established products in the mature phase of their life cycle Additionally, reinforcement ads aim to reassure current users that they have made the right choice.
Institutional advertisements aim to create goodwill and a positive image for an organization rather than promoting specific products or services This type of advertising is frequently employed to enhance public relations efforts or mitigate negative publicity There are four common forms of institutional advertisements used in practice.
Advocacy advertisement states the position of a company on an issue
Pioneering institutional advertisements, like the pioneering ads for products discussed earlier, are used for announcement about what a company is, what it can do, or where it is located
Competitive institutional advertisements promote the advantages of one product class over another and are used in the market where different product classes compete for the same buyers
Reminder institutional advertisements, like the product form, simply bring the company‟s name to the attention of the target market again
Because media costs are high, advertising decisions must be made carefully, using a systematic approach The advertising decision process is divided into (1) developing, (2) executing, and (3) evaluating the advertising program
Development of the advertising program focuses on the four Ws:
Who is the target audience?
What are (1) the advertising objectives, (2) the amounts of money that can be budgeted for the advertising program, and (3) the kinds of copy to use?
Where the advertisements should be run?
When should the advertisements be run? a) Identifying the Target Audience
Identifying the target audience is the crucial first step in developing an effective advertising program, as it focuses on prospective buyers for the firm's product This target market is determined through marketing research and market segmentation studies, allowing the firm to tailor its message A deeper understanding of the target audience's lifestyles, attitudes, and values significantly simplifies the creation of a successful advertising strategy Additionally, establishing specific advertising objectives is essential for guiding the program's direction and measuring its effectiveness.
Once the target audience is defined, it's essential to determine the objectives of the advertising campaign Consumers typically progress through a hierarchy of effects, moving from initial awareness of a product to taking decisive action.
Awareness : the consumer‟s ability to recognize and remember the product or brand name
Increase : an increase in the consumer‟s desire to learn about some of the features of the product or brand
Evaluation : the consumer‟s appraisal of the product or brand on important attributes
Trial: the consumer‟s actual first purchase and use of the product or brand
Adoption: through a favorable experience on the first trial, the consumer‟s repeated purchase and use of the product or brand
When introducing a completely new product, the outlined sequence pertains to the entire product category However, for a new brand entering an established market, these steps focus on the brand itself These guidelines can effectively assist in formulating advertising objectives, including the crucial aspect of establishing the advertising budget.
After establishing the advertising strategy, a company must determine its budget, which can be challenging due to the lack of precise methods for measuring advertising outcomes This makes it essential to carefully design advertisements that effectively convey the intended message while aligning with the allocated budget.
The core component of any advertising program is the advertisement itself, which includes both the written copy and the visual elements designed for the target audience across various media such as magazines, newspapers, and television, or auditory platforms like radio These messages typically highlight the essential benefits of the product that are crucial for potential buyers when considering trial and adoption.
Advertising messages typically blend informational and persuasive elements, making it challenging to distinguish between the two Essential details such as the product name, benefits, features, and price are often presented in an engaging manner to capture attention and drive purchases Conversely, even the most compelling advertisements must include fundamental information to achieve their effectiveness.
Creative professionals in advertising agencies are tasked with transforming key attributes like quality, style, dependability, economy, and service into compelling and credible advertisements An essential part of this process involves selecting the appropriate media to effectively reach and engage the target audience.
Advertisers face the crucial decision of selecting the right advertising media to effectively reach their target audience Options include newspapers, magazines, radio, and television, each offering unique advantages The choice of media should align with factors such as the characteristics of the target audience, the type of product being promoted, the nature of the message, campaign objectives, budget constraints, and the costs associated with each media option.
RESEARCH ON MARKETING COMMUNICATIONS OF
Summary about Vietnam securities market and securities companies
The Vietnam securities market officially commenced operations in 2000 with the establishment of the Ho Chi Minh Securities Trading Center (now the Ho Chi Minh Securities Exchange - HOSE) in July of that year Initially, the market featured only a limited number of stocks, with a total capital of approximately USD 1.7 million In the first six years, market capitalization reached only USD 0.5 billion However, in 2006 and 2007, the Vietnam securities market experienced remarkable growth, setting a series of impressive records and significantly increasing its market capitalization.
In 2006, the estimated market value was USD 13.8 billion, representing 22.7% of the GDP By April 2007, this figure surged to USD 24.4 billion, approximately 38% of the GDP, marking a staggering 1,400% increase since the year 2000 Currently, the total number of listed companies has reached 213, reflecting a remarkable 704% growth compared to 2000.
Figure 2-1: Chart of VN Index from 2001 to 2007
Source: http://vndirect.com.vn
The above chart describes the performance of VN Index in 8 years from 2000 to
From its inception on July 28, 2000, when the VN Index started at just 100 points, the market saw remarkable growth, peaking at 1,170 points in March 2007 This surge reflects a staggering increase of 146% in 2006 alone, followed by an additional 43% growth in the first quarter of 2007 As of now, the VN Index hovers around 900 points, representing a 90-fold increase since trading began.
As of now, there are 60 securities companies actively operating in the market, with 60 trading on the Ho Chi Minh Securities Exchange (HOSE) and 55 on the Hanoi Securities Trading Center (HASTC) These firms engage in four primary areas of operation: deposit and brokerage services, consultancy, self-trading, and underwriting.
The total number of trading accounts surged from 50,100 in 2005 to 106,393 in 2006, and by September 2007, this figure reached approximately 320,000, marking a remarkable 300% increase compared to 2006 Notably, over 140,000 new accounts were opened in the first half of 2007 alone.
The chart illustrates the distribution of accounts among various securities companies, highlighting that Sai Gon Securities Incorporation (SSI) leads with 21.20%, followed by Vietcombank Securities Company (VCBS) and Bao Viet Securities Company Other significant competitors include Asia Commercial Joint Stock Bank (ACBS), BIDV Securities Company (BSC), Agribank Securities Company (AGRISECO), and Incombank (IBS) Collectively, other securities firms represent only 20.90% of total accounts This data underscores how established brand names of major securities companies attract a substantial customer base, making it challenging for new entrants to compete without effective marketing strategies that resonate with investors.
Figure 2-1: Percentage of Accounts Opened at Securities Companies
Percentage of Accounts opened at Securities Companies
VCBS BVSC ACBS BSC AGRISECO IBS
Source: Statistics of State Securities Committee in Sep 2007
Base on company size, market share, time of establishment and fame, securities companies in Vietnam can be divided into three groups
Group 1 includes big and well-known securities companies which keep the big market share, at least 5% of total market share Besides, these companies have been established and operated in the market for a long time, at least two years Several companies in this group are:
Sai Gon Securities Incorporation (SSI)
Bao Viet Securities Company (BVSC)
Agribank Scurities Companies pany (Agriseco)
Group 2 consists of medium companies These companies are established after the first group for about 6 -12 months and have a relatively well-known market position One common feature of companies in this group is that they are normally a member or closely related to big financial institutions, big banks, big corporation Therefore, they are supported in terms of capital, human resource and customer relationship Some companies in Group 2 are:
Sai Gon Thuong tin Bank Securities Company
An Binh Bank Securities Company
Group 3 is companies opened recently, smaller size and less accounts They are joint stock companies that established by rich individuals who take advantage the development of securities market
Research on communication tools used by securities companies
The research was conducted by using depth interview with marketing managers of
6 securities companies, combining with desk research of the author Securities companies have different market positions, different sizes and uses different ways to communicate with customers
In general, securities companies in Vietnam have used some of 6 tools: advertising, PR, personal sales, sales promotion, direct marketing and e- marketing to communication with customers
Public relations (PR) is the most favored and frequently used tool among securities companies, followed by e-marketing strategies that leverage websites to attract customers These firms are also focusing on enhancing their sales force, particularly through strong brokerage and consultancy departments to better engage with clients Recently, they have introduced various sales promotions featuring appealing policies However, direct marketing and advertising remain infrequent and are typically executed in a simplistic manner.
Effective communication between companies and customers is more frequent and widespread in the first group, primarily utilizing public relations (PR) and personal sales as key tools SSI stands out by leveraging PR activities extensively to engage with its customers.
The second group mainly uses combination of PR, advertising and promotions However, the frequency of communication is still less than the frequency of the first group
The recent market downturn has significantly impacted the last group, making it challenging for them to attract customers To capture the attention of new and potential investors, they primarily rely on sales promotions, while their use of public relations and advertising remains infrequent.
The next parts will present detailed about each communication tools that are using by different securities companies
Public relations (PR) is a vital tool for influencing customer perceptions, particularly in the securities industry Companies typically employ three primary methods for PR: utilizing newspapers, magazines, and websites; engaging through television shows; and organizing conferences and training sessions Among these, the first method—media outreach through print and online platforms—proves to be the most widely used.
2.1.1.1 PR through newspapers, magazines, websites
Many companies publish articles to share news related to their activities, with popular magazines like "Dau tu chung khoan" (Investment Review) and "Dien dan doanh nghiep" (Business Forum) frequently featuring such content Additionally, prominent websites like VietnamNet and Vnexpress provide timely updates on the developments within securities companies Below are some articles focusing on the securities industry.
Figure 2-2: One article about SSI when it first listed on HASTC
Source: http://www.vnn.vn
Figure 2-3: SSI with the event of being listed on HOSE
Source: http://www.ktdt.com.vn
Figure 2-4: Announcement about the establishment of STB Securities
Source: http://www.hochiminhcity.gov.vn
Figure 2-5: VNDirect launches new service
Source: http://www.vnexpress.vn
Figure 2-6: Bien Viet Securities with CBV-Index
Source: http://www.vcci.com.vn
Moreover, by newspapers, magazines and websites, securities companies also do
PR for their representatives such as CEO, Director or Vice-Director, even Manager of important departments like brokerage or research
Figure 2-7: SSI and its CEO Tran Duy Hung
Source: http://www.dddn.com.vn
Figure 2-8: CEO of Vndirect – Mrs Pham Minh Huong
Source: http://www.vietbao.vn
Television programs such as "Ban tin chung khoan" and "Ban tin chung khoan Info" feature representatives from securities companies who discuss the stock market, provide explanations, and promote their firms.
Figure 2-9: ‘Chung khoan cuoi tuan” on VTV1
Source: http://www.mof.gov.vn
Source: http://www.infotv.vn 2.1.1.3 PR by holding conference, training courses for investors
Companies often organize events and conferences to announce updates in the stock market, such as the introduction of a new continuous marching-order system, inviting customers and media to participate Additionally, they offer free training courses for customers, fostering closer relationships and enhancing customer engagement.
Figure 2-11: Viet Dragon Securities Corp holds training course for customers
Source: http://www.vdsc.com.vn
Currently, no securities firms are engaging in large-scale TV advertising campaigns; instead, they primarily rely on simple logo and slogan placements in newspapers and websites Some companies do utilize newspapers to promote their marketing campaigns, but overall, the industry lacks significant television presence.
Figure 2-12: Advertising of Ocean Securities on InfoTV
Source: http://www.infotv.vn
Figure 2-13: Advertising of Thang Long Securities on Investment Review
Source: http://www.tinnhanhchungkhoan.com.vn
Advertisements from securities companies tend to be straightforward and often fail to capture audience interest These promotions primarily originate from large firms or newly established companies, focusing on informing potential clients about their offers.
Personal selling in securities firms primarily involves brokerage activities, where brokers not only execute customer orders but also cultivate client relationships and expand their customer network SSI currently employs around 40 brokers, while VCBS has nearly 30 On average, securities companies have between 8 to 15 brokers.
Customer interactions with various staff members, including those in deposits, accounting, and consultancy, significantly influence their perception of the company Positive experiences lead to increased service usage and referrals, aiding brokers in network expansion Furthermore, the communication style of securities company staff directly impacts customer loyalty and is crucial in conveying the company's messages effectively.
Source: http://www.vietbao.vn
During the significant stock market rise from December 2006 to March 2007, securities companies experienced a surge in customers, with trading locations bustling as investors eagerly bought and sold However, following a dramatic downturn in the market over the last four months, both transaction volume and value have plummeted, leading many investors to adopt a wait-and-see approach and resulting in a decline in new account openings In response, newly established securities firms have implemented promotional sales strategies to attract clients, while established firms are enhancing customer service and offering more appealing incentives.
Currently, around 10 companies are lowering transaction fees to enhance their promotional offerings Newer firms are particularly competitive, with Ha Thanh Securities Company reducing fees to just 0.1% on all transactions, while Cho Lon also charges a minimal 0.1% Phuong Dong Securities Company offers a slightly higher rate of 0.2% The most significant promotion is from Viet Tin Securities Company, which provides customers with a remarkable VND 5 million in waived transaction fees.
Figure 2-15: Promotion of Viet Tin Securities Company
Source: http://www.viet-tin.com.vn
Both new and established companies are actively launching promotional campaigns to boost sales For instance, VIB Securities offers essential information on the electronic board prior to trading hours, while Trang An, An Binh Securities, and VNDirect send SMS notifications to update clients on order matching results Additionally, SSI is enhancing its repo services and lowering fees to attract more customers.
Direct marketing encompasses key methods such as direct mail, SMS, and telemarketing In Vietnam, securities firms like VCBS, ACBS, and Vndirect utilize email to update customers on account balances and promote new products and services Additionally, SMS is frequently used to communicate daily trading results and updates regarding fees or special services However, the prevalence of technology often leads to customers receiving repetitive messages, which can be irritating While companies offer phone order services, these do not fall under telemarketing, and currently, no company has implemented this type of marketing strategy.
Survey on efficiency of marketing communication from securities companies
securities companies and customers behaviour
The survey was conducted to aim at the following purposes:
To evaluate the effective of marketing communication of securities companies with customers It must answer the question “whether the customers get the communication message from securities companies?”
To find the media tools that help securities companies to communicate effectively with customers
2.3.2 Scope of survey and some limitations
This survey was conducted via internet Questionnaires are sent to customers via email The respondents were individuals mainly in Hanoi
A survey was conducted involving six representative securities companies, categorized into three groups based on size Group 1 includes SSI and VCBS, representing large firms, while medium-sized companies are Thanglong Securities Company and Vndirect The small and new companies in the survey are Bien Viet Securities Company and Viet Dragon Securities Company Questionnaires were distributed to 50-60 customers from each of these securities firms to gather insights.
Due to limitation of time so the survey is conducted with only 6 companies
Survey respondents are individual customers, not include corporate ones
The area of survey mainly in Hanoi (only Viet Dragon Securities Company in Sai Gon)
2.2.3.1 Findings on the effectiveness of securities companies’ communication with customers
(1) In general, the effectiveness of communication of securities companies is not high This comment can be explained by the following evidences:
Only 47% of customers can accurately recognize the logos or slogans of securities companies While this figure rises to 62% for prominent firms like SSI and 58% for VCBS, it drops significantly for companies in groups 2 and 3, with average recognition rates of just 45% and 33%, respectively.
The effectiveness of advertising is low
The evaluation of customers for service of staffs is just normal
The loyalty of customers is not high, especially with new-born companies
In average, there is 31% respondents find a reason to change from current securities company to another one
Despite the overall performance being moderate, PR stands out as the most effective tool among the four evaluated Publishing PR articles in online platforms and investment newspapers enhances communication between securities companies and their clients Additionally, innovative PR activities like conferences and training courses effectively engage and attract the interest of investors.
(3) Advertising is not used frequently; mainly appear on website and newspapers, and the effectiveness of this tool is low
(4) The evaluation for the service of staffs in securities companies is normal This somewhat shows that communication of staffs still needs much improvement
(5) The sales promotion is applied with few of securities companies and it takes more time to evaluate
Direct marketing tools such as websites, email, and SMS messages can be valuable resources for clients, offering significant benefits When used effectively, these tools foster and maintain strong relationships between securities companies and their clients.
Question 1: Identify the exact logo/slogan of securities companies
In conclusion, a significant number of clients struggle to recognize the logos and slogans of securities companies, indicating a low level of brand awareness Since logos and slogans are the primary symbols representing these companies to clients, this lack of recognition suggests that the effectiveness of their communication strategies may be insufficient.
- Have you ever seen/read/watched/heard the advertisement of your securities company?
Have you ever seen/read/watched/heard the advertisment about your securities company?
- What kind of advertisement did you often see/read/watch/hear?
Answers Newspapers Web TV Radio
Advertisement on websites and newspapers that have news about stock market appears most to clients
- Do you feel impressed with the advertisement of your securities company?
Do you feel impressed with the advertisement?
Conclusion: The effectiveness of advertisement is low
Have you ever come across an article highlighting the strengths and achievements of your securities company, discussing its future plans, or providing additional relevant information about the organization?
Have you read the article?
- Do you remember the content of the article?
Do you remember the content of the article?
- You mainly read such kind of article on…?
In conclusion, public relations efforts utilizing articles in both online and print media are notably effective, with 75% of respondents indicating they have read such articles, and 58% recalling their content Notably, the majority of readers prefer accessing these articles online rather than in traditional paper newspapers.
- Have you ever taken part in conference/meeting or training course held by your securities companies?
You mainly read such kind of artle on…?
- Do you find this (these) conference/meeting or training course beneficial?
Do you find this (these) conference/meeting/trainging course beneficial?
In conclusion, participation in conferences, meetings, and training courses organized by securities companies has been limited, likely due to the recent introduction of these PR activities However, those who do attend often find them valuable, indicating that this form of public relations has the potential to be an effective tool for companies to engage with their clients.
- How do you feel about the service of staff in your securities companies?
Answers Very bad Bad Normal Good Very good
In conclusion, most clients perceive the service provided by staff at securities companies as average To enhance customer satisfaction, it is essential for staff to prioritize customer care and engage in more effective communication, allowing them to better understand and meet the needs of their clients.
- Have your ever received the sales promotion of your securities companies?
People who received sales promotion are mainly from new-established securities companies
- What do you think about the website of your securities company?
Answers Not useful A little useful Useful Very Useful
The data show that website is useful, even very useful for investors This can be a very effective communication tool for securities companies
- Have you ever receive email/SMS message from your securities company?
- Do you find these emails/messages beneficial to you?
Conclusion: Besides websites, email and SMS message can be effective direct marketing tools for securities companies
At the moment, is there any reason for you to change from this securities company to another one?
Have you receive email/SMS message from your securities company?
Do you find these emails/messages beneficial to you?
2.2.3.2 Findings on how clients find information about stock market
By which source do you often use to find the information about the stock market?
Answers Newspapers Websites TV Radio Others
Conclusion: The main source that used to find the information about stock market is websites and newspapers Besides, investors use other sources and mainly from friends and relatives
Beside the website of your securities company, list out the 3 websites you use most frequently to get information for stock trading
Website Number of respondent http://www.vir.com.vn 89 http://forum.vietstock.com.vn 72 http://www.chungkhoan24h.com.vn 56
List out the 3 paper newspapers you use most frequently to get information for stock trading
Paper Newspaper Number of respondent
Information documents from HOSE and HASTC 62
List out the 3 TV shows do you often watch?
TV Shows Number of respondent
"Ban tin Tai chinh" on VTV1 34
"Ban tin Tai chinh" on InfoTV 27
“Khoanh khac vang” on VTC1 15
2.2.3.3 Findings on how customer want to communicate and feedback to securities companies
How do you want to get the information from your securities company?
Send email Direct calls Send SMS messages
Letters via post Client meetings
How do you want to get information related to you from your securities company?
By which way do you want to contact with your securities company?
By which way do you want to contact with securities company?
RECOMMENDATIONS
Define the target audience and objectives of communication
3.1.1 Define the target audience of communication strategy
Effective communication in securities companies hinges on clearly identifying both the message sender and the target audience In this context, the senders are the securities firms, while the receivers are primarily their customers By focusing on specific customer groups, companies can enhance the efficiency of their communication Accurately defining target customers using various criteria is essential for successful engagement in the securities industry.
Personal criteria Criteria related to investment
Place of living and working
Time spending for investment follow-up
For example securities companies can draw a table with criteria and describe theirs customers Here are recommendations for 3 groups of securities companies
Gender Both but more focus on male
Both but more focus on male
Both but more focus on male Place Hanoi, Ho Chi Minh, and other big cities, provinces nationwide
Hanoi, Ho Chi Minh and nearby cities
Job Those are working in areas that relates to enterprise business, especially kinds of investment and have high position in companies
Those are working in areas that relates to enterprise business, especially kinds of investment
Everybody in different working fields,
Education High education Medium and high education
Every level of education Foreign
Foreign and domestic Domestic Domestic
Characteristic Very active, high risk tolerance
Active, medium and low risk tolerance
Income Rich, high income High and medium income
Knowledge Have much knowledge related to investment
Experience Much experience Not much experience Not much experience
Time A little time More time Much time
The target audience for each communication campaign can vary significantly, often representing only a small segment of a company's overall target group Additionally, the specific audience for each communication tool may differ based on the campaign's objectives.
Communication objectives should be set up following 3 phases of service consumption
The communication objectives of securities companies can be set up base on the consumption phase as following:
Pre-consumption To introduce about company and services
To inform the customer about preference they can have if they use service of securities companies
To emphasize on the strength of company, such as very good at OTC brokerage or strong analysis team, ext
To build up a image of company in the mind of customer, that can help company position itself in the market
Consumption To increase the volume of consumption, for example, increase trading value, frequency of using value-added service
Post-consumption To show the customer that the company is doing to enhance customers satisfaction
To tell customer what they can get from keeping using the services (to strengthen the loyalty of customers)
Divide the target audience and objectives of communication among the
After identifying the target audience and objectives for the communication strategy, it is essential to segment the audience into smaller groups based on various channels, such as advertising, public relations, personal selling, sales promotion, direct marketing, and e-marketing Securities companies typically accomplish this by utilizing a structured table to organize their approach.
Define communication messages
In the theory foundation, the guideline to define communication messages is presented Securities companies can apply these guideline to design their communication messages:
Guidelines Applications for securities companies
In the securities market, credibility and reliability are crucial for brokers and securities companies Brokers who make unrealistic profit promises risk losing customer trust and future business, while companies must communicate within their capabilities to maintain transparency Therefore, it is essential for securities firms to convey trustworthy messages that reflect their credibility, ensuring that their audience can have confidence in their communications.
Securities companies possess valuable intangible assets, including exceptional service quality, expertise in analysis, and extensive networks that create investment opportunities for clients To effectively communicate these intangible benefits to customers, it is essential for securities firms to translate them into tangible expressions through various non-verbal cues.
Good customers care: quick order- matching, frequently send information about the market and favoured stocks
Holding events, conference to demonstrate analysis ability
Suggest investment opportunities in both listed and OTC market
Feature the working relationship between customer and provider
The messages which are sent out should show that the relationship between securities companies and customers is featured by main characters like high creditability, mutual benefit
Reduce consumer fears about variations in performance
To ensure long-term and sustainable growth, securities companies must demonstrate reliability and compliance with regulations Customers are unlikely to trust or deposit their funds in firms that face regular fines from the State Securities Committee or frequently encounter transaction errors.
Determine and focus on relevant service quality dimensions
To enhance service quality, it is essential to streamline account opening procedures, optimize the trading process, and offer personalized consultancy for customers Providing valuable information and insights can significantly improve the customer experience, while implementing special preferences for VIP and loyalty customers fosters lasting relationships and satisfaction.
To ensure a cohesive communication strategy, it's essential to detail messages across all communication tools, maintaining a consistent link to the overarching messages Key elements such as the logo, slogan, imagery, specific colors, and presentation formats must remain uniform across all communication activities.
Put communication mix together
Base on the theory foundation and the survey result, general recommendations for securities companies in implementing communication mix include:
Different marketing communication tools must be associated to each other in a planed and consistent way All tools must show the message designed in marketing communication strategy
Managers prioritize tools based on their company's specific conditions Startups should focus heavily on sales promotion and advertising to establish their presence, while medium-sized companies can bridge the gap with larger competitors by leveraging e-marketing strategies, including the use of blogs and forums to engage with investors.
Three forms of communication including advertising, direct marketing and e-marketing should be applied more frequently and more creatively
It‟s necessary to set up a system to evaluate the effectiveness of each tools and of the mix, so that company can have experience for future application
Effective communication programs must be extensively promoted throughout the organization, ensuring that all managers and staff members are skilled communicators This collective effort is essential for conveying the right messages to the appropriate audience, ultimately enhancing organizational communication.
3.4.2 Recommendations for particular communication tool
Base on particular conditions, securities companies can choose its advertising objective among five following objectives:
Creating brand awareness is essential for customers to recognize and remember a company's name, logo, and products It is vital to present key information, including the company's name, slogan, and contact details for both the head office and branches Advertisements should aim to create a unique and memorable impression that captures customers' attention instantly For newly established securities companies, prioritizing brand awareness is crucial for long-term success.
Advertisements for securities aim to boost trading account sign-ups and promote services like brokerage, OTC brokerage, portfolio management, and investment delegation To achieve this, the advertisements must clearly highlight the benefits customers can gain from opening an account or utilizing these services Companies in groups 2 and 3 can effectively target their advertising efforts to meet this objective.
To effectively evaluate and advertise their services, securities companies should highlight their unique strengths compared to competitors For instance, a company with a long-standing history and extensive relationships can showcase its productive OTC services as a key selling point By emphasizing these distinguishing features, companies in Group 1 can enhance customer perceptions and strengthen their position in advertising campaigns against larger firms.
(4) Trial: This advisement must create a interest to test the service of securities companies The content can be announcement of sales promotion Group 3 need to implement such kind of activity
Adoption advertising emphasizes the strong relationship between companies and their customers, encouraging ongoing use of services It is advisable for companies in groups 1 and 2 to prioritize this objective to enhance customer loyalty and engagement.
Once the objectives are defined, securities companies should establish their advertising budget This can be guided by the marketing ratio of advertising to total revenue or by using competitors' budgets as a benchmark for necessary adjustments.
Companies should explore more innovative advertising methods, as TV commercials can leave a lasting impression, especially since few securities firms utilize this approach Instead of relying on simple and basic content in newspapers and websites, companies should enhance their advertising with impactful visuals and effects Utilizing celebrities from the investment sector to represent their brands can significantly boost their appeal and effectiveness.
About advertising on newspapers, as the survey results, securities companies can choose three following papers
Information documents of HOSE and HASTC
To advert on news websites, best options are:
http://www.vir.com.vn
http://forum.vietstock.com.vn
http://www.chungkhoan24h.com.vn
Three T.V shows that can be used to post advertisement are:
“Ban tin tai chinh” on VTV1
“Ban tin tai chinh” on InfoTV
“Khoanh khac vang” on VTC1
To enhance brand visibility and engagement, companies should continue leveraging public relations (PR) as their primary strategy while diversifying their efforts across various platforms, including newspapers, websites, interviews, events, and conferences Organizing more conferences and training courses can effectively attract customers, as they often perceive these activities as beneficial Additionally, establishing "Investment Clubs" can foster relationships among customers and investors, providing opportunities for networking and information sharing Furthermore, engaging in charitable activities after achieving significant profits can enhance the company's image and reputation in the community.
Sales promotions are a powerful tool for newly established companies to attract customers To maximize their effectiveness, it is essential to complement these promotions with targeted advertising, ensuring that a wide audience of potential investors is informed about the sales and encouraged to take advantage of the offers.
To enhance sales promotion strategies, securities companies should diversify their approaches beyond traditional methods like coupons and reduced transaction fees They can implement contests that reward the 1,000th customer with a high-value gift, and offer samples of value-added services such as portfolio management Additionally, providing access to a "special broker" for personalized investment advice can further engage customers and enhance their overall experience.
To enhance customer attraction and satisfaction, companies must effectively organize their human resources It is essential that not only brokers but also staff from various departments receive training on customer service and behavior This comprehensive approach ensures that all employees contribute to a high level of customer satisfaction.
The brokerage team is divided into two specialized groups, with one focusing on VIP customers Each broker is assigned specific targets, including the number of accounts managed, transaction value, and customer satisfaction levels.
Managers must establish policies to mitigate negative behaviors exhibited by brokers, such as soliciting money from clients, earning excessive commissions, and favoring certain clients based on personal relationships while neglecting others While it's expected that brokers will prioritize their own investments, managers need to impose reasonable limits on this behavior to ensure that brokers remain focused on their professional responsibilities and client needs.
To enhance customer engagement, companies should prioritize the use of direct mail and SMS for timely updates Providing customers with relevant information about their accounts, market trends, and company operations fosters a stronger connection with the brand Additionally, establishing a dedicated phone line for customer inquiries can further improve communication and support.
