LITERATURE REVIEW
Concepts and delimit the content of the research topic
Marketing serves as a vital communication channel between companies and consumers, facilitating the adaptation of commercial activities to influence behavioral change According to the American Marketing Association, marketing encompasses the activities, institutions, and processes involved in creating, communicating, delivering, and exchanging valuable offerings for customers, clients, partners, and society as a whole.
Marketing techniques involve selecting target markets through market analysis and segmentation, along with insights into consumer behavior influence Effective marketing planning develops strategies for companies to effectively position their advertisements to reach dedicated consumers.
According to Dr Philip Kotler, marketing is both a science and an art that focuses on exploring, creating, and delivering value to meet the needs of a target market profitably It involves identifying unmet needs and desires, measuring the size and profit potential of the market, and determining which segments the company can serve most effectively Ultimately, marketing is about designing and promoting the right products and services to satisfy those needs.
The American Marketing Association defines marketing management as the strategic process of planning and implementing the conception, pricing, promotion, and distribution of ideas, goods, and services, aimed at facilitating exchanges that fulfill both individual and organizational objectives.
And other definition about marketing: Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.
The marketing mix, introduced by Professor E Jerome McCarthy in the 1960s, encompasses four essential elements known as the "four P's." The first P, Product, refers to the actual item being offered, while Price involves establishing the product's value Place pertains to the distribution channels and market coverage necessary for delivering the product to consumers Finally, Promotion focuses on strategies to engage the target market and persuade them to make a purchase.
The four Ps of marketing—product, price, place, and promotion—play a crucial role in meeting consumer needs and are classified as controllable marketing mix factors that can be adjusted as necessary Additionally, habits, lifestyle, and diet are identified as controllable risk factors that can influence consumer behavior.
In the 1990s, the concept of four C's was introduced as a more customer- driven replacement of four P's There are two theories based on four Cs:
Lauterborn's four Cs (consumer, cost, communication, convenience) and Shimizu's four Cs (commodity, cost, communication, channel) in the 7Cs Compass Model
The marketing mix: refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.
The marketing mix encompasses the strategic actions a company employs to effectively promote its brand or product Traditionally defined by the 4Ps—Price, Product, Promotion, and Place—it has evolved to include additional elements such as Packaging, Positioning, People, and even Politics, highlighting the complexity of modern marketing strategies.
Description the 4Ps of marketing:
Price represents the assigned value of a product, influenced by production costs, target market segments, consumer purchasing power, and supply-demand dynamics Various pricing strategies align with overall business objectives, serving as a means to differentiate products and enhance their market image.
A product is the item being sold, and it is essential that it meets a minimum performance standard; if it fails to do so, no amount of effort on other marketing mix elements will be effective.
In marketing, 'place' refers to the point of sale, where the primary goal is to attract consumers and facilitate their purchasing decisions A well-executed distribution strategy is crucial for success in any industry, and retailers often invest significantly in securing optimal locations to enhance visibility and accessibility for potential buyers.
In fact, the mantra of a successful retail business is 'location, location, location'.
Promotion encompasses various activities aimed at increasing awareness of a product or service among users and within the trade This includes advertising, word-of-mouth referrals, press coverage, and incentives such as commissions and awards for retailers Additionally, it involves consumer programs, direct marketing efforts, contests, and prize giveaways.
Brand name List Price Sale promotion Packaging Discount Advertising Sizes Allowances Sales force Services Payment period Public relation Warraanties Cresit term Direct marketing Returns
Figure 1.1: The four P components of the marketing mix
1.1.2 Delimitations of the content of the research topic
1.1.2.1 Target market selection and marketing strategy Target market selection
A target market is the market (customers) a company wants to sell its products and services to, and to whom it directs its marketing efforts.
Identifying the target market is crucial for effective marketing plan development This market can be distinguished from the broader market based on factors such as geography, purchasing power, demographics, and psychographics.
Target markets are groups of individuals that are separated by distinguishable and noticeable market segmentation including the following:
Geographic segmentation focuses on the location and climate regions of addresses, while demographic and socioeconomic segmentation considers factors such as gender, age, income, occupation, education, household size, and family life cycle stages Psychographic segmentation delves into consumers' attitudes, values, and lifestyles, whereas behavioral segmentation examines specific occasions and levels of customer loyalty Together, these segmentation strategies provide a comprehensive understanding of target markets.
Product-related segmentation - (relationship to a product)
Factors of influence on marketing strategies:
In addition to the controllable elements of the marketing mix, marketers must also consider uncontrollable environmental forces These external influences play a significant role in shaping marketing strategies, requiring marketers to adapt their approaches accordingly.
Amongst others they include: regulatory, economic, social, political environment, competitive and technological.
Regulatory factors encompass the laws and governmental policies that influence marketing practices For instance, restrictions imposed by the government on the importation of certain products can significantly impact marketers operating within that sector.
Competitiveness and competitive marketing
1.2.1 Definition of competitiveness and competitive marketing Competitiveness: Competitiveness pertains to the ability and performance of a firm, sub-sector or country to sell and supply goods and services in a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the same market
Marketing Competitiveness is the ability of a business to improve continuously marketing process capabilities and deliver better value to customers than competitors."
1.2.2 The views on competition marketing
In economics, competition refers to the rivalry among sellers aiming to enhance profits, market share, and sales volume by adjusting the marketing mix elements, including price, product, distribution, and promotion According to Merriam-Webster, business competition involves multiple independent parties striving to attract a third party's business by providing the most advantageous terms.
Competition is prevalent in the market, where buyers and sellers strive against one another This competitive dynamic creates pressure that directs resources to their most needed and efficient uses, ultimately benefiting the overall economy.
Competition in marketing refers to the rivalry among companies offering similar products and services, aiming for revenue, profit, and market share growth It drives businesses to enhance sales through the marketing mix, known as the four P's: product, place, promotions, and price Understanding your competition is essential for crafting an effective marketing strategy; lacking this knowledge may allow competitors to gain an edge through lower prices or added value Staying informed about competitors' offerings is vital for maintaining competitiveness and ensuring business survival.
There are three primary types of market competition:
Direct competitors are businesses that provide identical products and services to the same target market, striving for profit and increased market share They focus on the same audience, offer similar products, and utilize comparable distribution models, making them key players in your competitive landscape.
Indirect competitors are companies that provide similar products and services as direct competitors but pursue different objectives While their ultimate goal is to increase revenue, they employ distinct strategies to achieve this, setting them apart in the marketplace.
THE STUDY
An overview of Novaon IDC Online Data Joint Stock Company 1
Digital Marketing refers to the strategic use of the Internet for marketing and communication purposes, enabling rapid and effective promotion of products and brands Despite being a relatively young field, Digital Marketing has quickly matured and established itself as a vital component of the economy In recent years, online marketing companies have experienced continuous growth, emerging as a key industry that significantly contributes billions to the national budget.
In today's competitive market economy, international economic integration intensifies the need for businesses to conduct thorough market research and forecasts Companies must develop effective pricing strategies, optimize product offerings, and enhance distribution channels while planning impactful communication programs Marketing is crucial for business survival and growth, as it focuses on creating awareness, attracting customers, and fostering loyalty, ultimately playing a pivotal role in a company's success.
Novaon IDC is committed to its mission of leveraging media and technology to generate surplus value, driving success for customers, society, and its organization members Recognizing the transformative power of the Internet, Novaon IDC aims to empower businesses by providing efficient and convenient solutions that enhance their operations and overall success.
With nine years of experience, NOVAON IDC has established itself as a leader in digital marketing in Vietnam, supported by a dedicated team of nearly 200 professionals The company has successfully executed thousands of online marketing campaigns for over 3,000 diverse clients, utilizing a range of services including Google Ads, web design consulting, hosting, domain registration, servers, and digital signatures Committed to enhancing the quality of life and work for individuals and businesses alike, NOVAON IDC continues to pioneer innovative consulting and technology applications in the industry.
The process of formation and development of the company
The process of formation and development of the NOVA Communication &
Founded in 2006, NovaAds has established itself as a leader in online marketing, gaining recognition from thousands of customers over a decade of dedicated effort In 2013, it became a part of NOVA Communication & Technology Corporation, rebranding as NOVAON IDC.
2006-Established and original called New Star online advertising company.
These are the first steps of the company in the young Internet industry but full of potential The company started with 2 HR scale
2010-October: Renamed NOVA Communication & Technology Corporation, brand is Novaads (the predecessor of today NOVAON ADS)
November: Establishment of a branch in Ho Chi Minh City in a bold decision of the CEO, officially "risky" expansion and development of the southern market potential as well as challenges
In 2012, NOVANET introduced Vietnam's first contextual advertising network, leveraging advanced technology to enhance advertising effectiveness By integrating innovative solutions into NOVAON ADS, NOVANET aims to maximize business profitability for its clients.
In 2013, NOVAON IDC established itself as a senior partner of Google in Vietnam, solidifying its brand presence and significance in the market This partnership with the world's largest search engine has significantly elevated NOVAON IDC's brand reputation and the quality of its digital marketing services within the Vietnamese community.
2014-March: Establishment Novaon IDC Online Data Joint Stock Company March: Launched product online travel solutions Bookin.vn July: Formally established NOVAON Internet Corporation; 5 affiliates:
NOVAON ADS, NOVANET, BOOK IN, IDC and NOVAON MOBILE 2015-March: NOVAON FUND Investment Fund was founded with the mission of "Light Potential Start Up".
May: NOVAON IDC wireless services deployment exclusive marketing at Tan Son Nhat airport.
August: NOVAON Mobile has launched products Udoctor, marking a new milestone in the development stage of the official NOVAON engaged Mobility industry trends shared economy.
Novaon IDC Online Data Joint Stock Company, established on May 9, 2013, is a non-state enterprise registered under Tax Registration Number 0106170996 at the Cau Giay District tax department, operating in compliance with the Enterprise Law.
The company's charter capital: 20,000,000,000 VND
2.1.2 The organizational structure of the company and characteristic of business
Lines of business The main activities of Novaon IDC focuses on the field of marketing online, advertising
Online Marketing Services are provided by NOVAON IDC including Google Ads, website design consulting, hosting, domains, servers, digital signatures.
Many big brands have found to NOVAON IDC to implement online marketing campaigns of her, which must mention the "big guns" such as
Vietnam UNILIEVER, Nokia, Panasonic, FPT Online, VTC Online, VDC Online, FPT University, Vinaconex ITC, Toshiba Asia
2.1.2.1 The structure of Novaon IDC Online Data Joint Stock Company v
(Source: Administrative Department, Novaon IDC Online Data Joint StockCompany) Figure 2.1: The structure of Novaon IDC Online Data Joint Stock Company a) Function and duties of Marketing and Communications Department
The Marketing and Communications Department plays a crucial role in shaping the company's marketing strategy by advising the Director on all aspects of the business, from production to consumer engagement This department organizes economic information systems, manages advertising initiatives, and oversees marketing efforts Additionally, it identifies market demands and proposes innovative product ideas to drive company growth Collaborating with the financial accounting department, it conducts economic analyses to enhance operational efficiency and recommends cost-reduction strategies for products.
Customer Service Department Marketing and Communications
Department b) The business activities of the company
To be able to have an overview of business situation of company in the period 2013-2015, I would like to offer statistics the activities of the company are as follows:
Table 2.2: Overview of business situation of company in the period 2013- 2015
(Source: Financial Accounting Department, Novaon IDC Online Data Joint Stock Company)
Figure 2.2: Overview of business situation of company in the period 2013-2015
Recent data indicates a notable increase in business activities, as evidenced by the revenue and profit after tax of Novaon IDC companies from 2013 to 2015, as illustrated in the accompanying graph.
From 2013 to 2015, there was a notable increase in revenue and profit before tax, with revenue starting at approximately 125 billion dong in 2013 Although it dipped to 120 billion dong in 2014, it rebounded significantly to reach 150 billion dong in 2015, indicating a robust growth trend during this period.
2013, the number of profit after tax stood at approximately 450 million dong.
The number was more sharply to 2 billion dong in 2014 and then rose steadily to 2,5 billion dong by 2015.
The size of the company's business is expanded The results of the production reflect the big efforts of the company This is a good sign for the company.
However, the company needs to maximize their ability to promote its growth in the condition of available resources.
2.1.3 A glance of online data distributing market
Digital marketing has an important role to play in meeting business objectives In early 2014, the proportion of Vietnam Internet access to about
According to the latest statistics from IDG Leadership Academy, 34 million people in Vietnam spend an average of 1 hour and 23 minutes on social networks Notably, 20% of the population uses smartphones, with 97% utilizing mobile services for location searches, 95% seeking product information, and 60% engaging in direct payment services (Techz.vn - Digital Marketing 2014: Challenges and Opportunities).
Vietnam presents a promising online market with significant potential for growth, particularly in the Digital Marketing Agency sector In a recent interview with IDG Leadership Academy, Mr Ngo Minh highlighted the opportunities available for businesses to capitalize on this thriving landscape.
Thuan, the founder of DNA Digital, emphasized that businesses are increasing their investment in Digital Marketing to stay aligned with emerging trends This shift is fostering a diverse and nuanced landscape, as brands seek to engage users through popular platforms like social networks and mobile devices such as smartphones and tablets This trend represents a positive development for the industry.
Vietnam's businesses focus on using Digital Marketing for two purposes:
Digital marketing plays a crucial role in enhancing brand visibility and driving sales growth, particularly through e-commerce channels As the landscape evolves, it has become a compelling arena for both B2B and B2C sectors In 2013, Vietnam experienced a surge in e-commerce, with 57% of the population gaining internet access and engaging in online shopping This growing demand for online shopping has prompted Vietnamese businesses to prioritize the development of products and services that meet customer needs effectively.
In 2013, the business used email account for 83% to receive orders, whereas
Results of the analysis
Novaon IDC Online Data Joint Stock Company has expanded its business by diversifying into various sectors and product offerings Key among these are web design consulting services, alongside additional services such as hosting, domain registration, and digital signatures Furthermore, the company provides a range of digital marketing products, enhancing its comprehensive service portfolio.
Novaon IDC specializes in web design, offering its own unique services while also collaborating with various brands such as TRUST.vn Web Design Ltd, URL Web Design Company, and V&A Web Design Company to provide a diverse range of high-quality web design solutions.
Web advertising is the most effective solution for businesses today Utilizing internet advertising strategies and eCommerce web design are essential tools that enhance revenue by connecting with diverse audiences and providing them with relevant information at the click of a button These methods not only increase product visibility but also help in building personal brand value.
Trust.vn is a leading web design consulting service in Vietnam, recognized as one of the top three companies in the industry The company specializes in high-quality web design consulting for premium businesses, offering a diverse range of services across over 20 different fields In contrast, Novaon IDC primarily focuses on two types of websites: commerce and brand sites, catering to clients with more basic web design needs As a result, customers tend to prefer larger firms like Trust.vn for their more comprehensive offerings and expertise.
V&A Company offers specialized web design consulting services tailored for large and complex projects, such as Vatgia.com and Nhatcuongmobile This service is ideal for clients looking to invest in high-quality website designs that meet their specific requirements The designs ensure compatibility across all major browsers and include ongoing support for website updates Additionally, V&A provides consultation for achieving top 10 rankings on Google, along with free domain name and hosting services, and a permanent warranty for the website.
URL offers customizable web design packages tailored to client needs, accommodating requests for websites ranging from 5 to over 500 pages Their services include static and dynamic websites, professional SEO, and e-commerce solutions URL specializes in creating large sites with user-friendly content management systems, equipped with diverse functionalities to enhance site effectiveness Additionally, clients seeking smaller websites can also opt for their services.
Hosting, domain, digital signature are considered as other services They are intangible For this types of company’s product, it cannot be tasted, smelled, or stored like physical goods.
The main distance that company usually transports goods are from representative office in Hanoi, Ho Chi Minh, Da Nang to customers at neighboring provinces and districts in the cities.
Novaon IDC offers a diverse range of digital marketing products tailored for enterprise advertising campaigns, providing customers with a significant advantage in their promotional efforts.
2.2.1.2 Price policy i Strong points in Novaon IDC’s pricing strategy
With the mix products of company, Novaon IDC must make a plan of suitable pricing strategies for both website designing and providing other services.
Novaon IDC also sets up its price basing on all the three popular pricing methods: cost plus, value base and looking at the competitors.
The price of products depends on company's trademark of website, the fields website wants to built, scale web want to deploy, other features attached.
Company has invested huge money in web design In comparison with other brands, the price of web designing at Novaon IDC Company is temporarily normal.
The price for Web design and other services is clearly at below table:
Trust.vn Ltd V&A Company URL Company Novaon IDC
Hosti ng, doma in, serve r, digita l signat ure
550.000vnd(.vn), c om.vn(650.000vnd(
com.vn), 350.000vnd(.org.vn , gov.vn, edu.vn…
400.000vnd(.com, net, org, info, biz, us, asia…
590.000vnd(.vn), c om.vn(650.000vnd(
com.vn), 250.000vnd(.org.vn , gov.vn, edu.vn…
700.000vnd(.com, net, org, info, biz, us, asia…
550.000vnd(.vn), c om.vn(650.000vnd(
com.vn), 350.000vnd(.org.vn , gov.vn, edu.vn…
350.000vnd(.com, net, org, info, biz, us, asia…
350.000vnd(.vn), c om.vn(350.000vnd(
com.vn), 200.000vnd(.org.vn , gov.vn, edu.vn…
270.000vnd(.com, net, org, info, biz, us),
Table 2.3: The price quotation for Web design and other services of Novaon IDC comparison to other competitors
(Source: Financial Accounting Department, Novaon IDC Online Data Joint Stock
The basic web design package is ideal for small and medium-sized enterprises, particularly those involved in product manufacturing and supply This package is specifically tailored to showcase product information through e-catalogs, enabling viewers to easily access details and contact the business as needed.
The Silver package is ideal for businesses looking to create an online sales website This web design solution effectively showcases product information through e-catalogs while highlighting associated services It streamlines editorial processes and enhances sales and product promotion, making brand management more efficient and convenient for enterprises.
Gold package is suitable for businesses requiring building a online payment website via online portal such as: www.baokim.vn, www.nganluong.vn.
Novaon IDC offers unique Digital Signature services designed for taxpayers, accessible via the Internet This service package sets them apart from competitors who do not provide similar offerings, highlighting a significant competitive advantage in the market.
In the competitive landscape of digital marketing, Novaon IDC offers pricing that is generally lower than its competitors, making it an attractive option for small and medium-sized businesses This strategic pricing advantage allows these companies to tap into a broader customer base and enhance their potential for future growth However, there are some weaknesses in Novaon IDC's pricing strategy that should be considered.
While web design and digital marketing services generally have reasonable pricing, the payment structure can pose challenges for customers Many clients find it difficult to pay the full amount upfront, especially when the cost exceeds one billion This situation often leads them to seek alternatives that offer more flexible monthly payment options As a result, pricing policies significantly influence customer decisions, and companies like Novaon IDC risk losing potential clients due to these financial constraints.
Promotion consists of advertising, PR, direct sales, promotions, customer relations, etc Compared with other P words, marketing is the most important
Promotion is a strategic combination of advertising, sales promotion, public relations, personal selling, and direct marketing that companies use to effectively engage customers and foster relationships Novaon IDC excels in this area by regularly providing customers with updates on products and services through emails or direct communication, allowing them to make informed purchasing decisions from the comfort of their homes or offices The company’s approach to offering new price quotations further persuades customers, highlighting Novaon IDC as a leader in innovative products and attractive policies This proactive strategy is a significant strength in Novaon IDC's marketing mix, as it actively seeks out customers rather than passively waiting for them to arrive.
Beside strong points, Novaon IDC still has to face with many difficulties.
Promotion is one of the most factors in marketing mix that company need to improve.
Without communication from company staff, such as emails or in-person meetings, customers have limited means to learn about the company, often resorting to reaching out to Novaon IDC for information.
Another weak point is limited promotion policies, for example: lack of attractive promotion policy as discount policy in prime time, …
It is very essential to add these ways of promotion-to-promotion strategy.
Novaon IDC offers two main groups of products: web design and a range of flexible services including hosting, servers, and domains Customers seeking digital marketing solutions have two convenient options for engaging with the company: they can either visit the office to sign a contract or simply make a phone call and complete the payment via bank transfer.
RECOMMENDATIONS
Nova’s development direction
Novaon IDC enhances its business through a diverse product mix that combines both products and services, allowing the company to stand out in the market This approach provides customers with a comprehensive solution, eliminating the need to purchase products and services from different sources The unique adaptability of Novaon IDC's offerings makes it challenging for competitors to replicate their product mix, thereby securing a competitive advantage Additionally, by integrating consulting and services with their products, Novaon IDC delivers customized options that equip customers with the necessary knowledge and skills to maximize product usage Furthermore, opting for a total package not only streamlines the purchasing process but also offers significant cost savings compared to buying individual components separately.
Novaon IDC is able to add value in several ways by delivering quality, features and a superior performance in a different way than its competitors.
This company is quite unique on the market by providing transportation and selling trucks By working together with their suppliers and customers Novaon IDC is able to add value
In certain instances, companies fail to implement an effective marketing strategy, resulting in significant drawbacks Novaon IDC's marketing mix strategy is suboptimal, adversely impacting the company's value-adding processes To enhance performance, it is crucial to focus on improvements in product development, pricing, promotional efforts, distribution channels, physical evidence, personnel, and overall processes.
Basing on the findings of previous sections, I would like to suggest some measures that could help the company give some business direction in the future
The company's service quality falls short compared to its competitors, limiting its ability to secure significant contracts To enhance its marketing efforts and attract larger clients, the company must focus on improving its service standards.
The company must increased investment for advertising
Recommendations aimed at improving the competitiveness of NOVAON
3.2.1 Products Improving the 4Ps of the company
Products and services are essential offerings from a company aimed at meeting customer needs Their success hinges on customer acceptance and the ability to effectively satisfy those needs.
To enhance its market position, the company must focus on developing and improving service quality, ensuring flexibility to meet customer needs effectively.
There are two main products which company provides: website design consulting and other services: hosting, domains, servers, digital signatures.
Both of them are needed to improve.
To enhance website design consulting, companies must focus on improving their website's functionality and performance across various areas High-quality products are essential for customer satisfaction, as poor product quality often leads to dissatisfaction Therefore, ensuring product excellence is a primary concern for most customers.
To build customer confidence in web services, it is essential for the company to maintain and strengthen its existing product offerings The board of directors must enforce strict penalties for instances of overweight transportation to ensure reliability and uphold service quality.
For the other services, company should care about the models and sizes.
To effectively meet diverse customer needs, Novaon IDC should adopt a customer-centric approach, thinking from the customer's perspective By diversifying product models and sizes, Novaon IDC can enhance its offerings and better serve its clientele.
In today's competitive market, pricing plays a crucial role in attracting customers, making it a key factor for a company's success To enhance its pricing strategy, Novaon IDC can implement several approaches, such as offering discounted rates for the first five customers who purchase products each month Additionally, the company could introduce flexible payment options, allowing customers to pay monthly for website design services and split payments for other services Lastly, Novaon IDC might consider covering the full cost of product registration for customers during special promotions.
Promotion seems to be the most necessary factor that needs to be improved.
Novaon IDC should implement long-term strategic and research plans while boosting investments in advertising and consumer engagement To enhance customer confidence, the company can publish annual reports highlighting key information about its operations Additionally, offering beautifully packaged gifts with the company’s branding on special occasions can further strengthen customer relationships and loyalty.
Novaon IDC can effectively reach potential customers by utilizing various advertising channels such as the Internet, telephone, and email Additionally, offering free services can help attract a larger audience and generate more leads.
Novaon IDC's limited distribution channels hinder its ability to reach potential customers The company's offerings, which include web design and flexible services like hosting, servers, and domains, could benefit from a broader operational footprint, especially with offices strategically located across the country to reduce costs Currently, customers must visit the head office to purchase products, which can be inconvenient; therefore, providing detailed product information online and offering delivery options would enhance customer experience To meet increasing demand, it is essential for Novaon IDC to expand its operational areas, improve warehousing, and upgrade service quality, making future office expansion a priority.
To effectively evaluate its staff, a company must establish clear standards that identify each employee's strengths and weaknesses By conducting thorough evaluations, Novaon IDC can implement targeted training and management strategies to enhance employee capabilities It is crucial to cultivate a team of experienced professionals with strong communication skills who can effectively engage and persuade customers Additionally, careful consideration during the hiring process is essential to ensure that the right candidates are selected for each position within the organization.
After that, it is need to take time to conduct training to avoid disruption in personnel because the damage of the personnel change can be very large.