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Strategy of developing new IT products to the vietnam market case study of dell EMC = chiến lược phát triển sản phẩm công nghệ thông tin mới tại thị trường việt nam nghiên cứu điển hình trường hợp dell EMC

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

NGUYỄN THỊ PHƯƠNG THẢO

STRATEGY OF DEVELOPING NEW IT PRODUCTS TO THE
VIETNAM MARKET. CASE STUDY OF DELL EMC.

CHIẾN LƯỢC PHÁT TRIỂN SẢN PHẨM CÔNG NGHỆ THÔNG
TIN MỚI TẠI THỊ TRƯỜNG VIỆT NAM. NGHIÊN CỨU ĐIỂN
HÌNH TRƯỜNG HỢP DELL EMC

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2018


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


NGUYỄN THỊ PHƯƠNG THẢO

STRATEGY OF DEVELOPING NEW IT PRODUCTS TO THE
VIETNAM MARKET. CASE STUDY OF DELL EMC.

CHIẾN LƯỢC PHÁT TRIỂN SẢN PHẨM CÔNG NGHỆ THÔNG
TIN MỚI TẠI THỊ TRƯỜNG VIỆT NAM. NGHIÊN CỨU ĐIỂN
HÌNH TRƯỜNG HỢP DELL EMC
Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS. NGUYỄN VIỆT KHÔI

Hà Nội - 2018


ACKNOWLEDGEMENT

The decision of pursuing MBA course is very important to me, especially for
my career development. Thank you very much to all efforts that helps me
proceeding smoothly through all the modules and reaching this final one. The
completion of this paper is emotionally appreciated by the support of all
parties.
Firstly, I would like to say thanks to all my lecturers and members of the HSB
that provide me with constructive knowledge and support me with
enthusiastic ideas. Importantly, I would like to send my special thanks to Ass.
Pro. Nguyen Viet Khoi with his constructive and enthusiastic advices,
suggestions and supports during my researching.
Furthermore, I also want to express my warm thanks to all the survey
participants. Thank you for all of you that allocated your schedule to give me
your valuable ideas and opinions. Without yours, the research value could not
be achieved.
Last but not least, I would like to thanks my family who has supported me
with strong encouragements during my studying period.
Thank you.
Hanoi, February 2018.
The Author


i


ABSTRACT

This research, on the understanding of the importance of launching programs
for new IT products in local market, is keen on comprehending demands of
customers and marketing environment in the case of IT industry with the use
of IT products within the Vietnam context. The level of exploiting IT
products for information management including security and backup is
thought to be low by which the space for IT providers is abundant. In the
specific case of Dell EMC Vietnam – the giant in backup and security IT
product industry, the research gets the client-based information, marketing
environment of Vietnam and potential of Dell EMC in launching new IT
products to Vietnam market to propose empirical tactics in projecting
marketing mix plan.
The paper attempts to comprehend components of marketing plan including
marketing environment through PESTEL, Five forces, competition analysis.
Marketing mix of 7Ps are mentioned as the core premise to formulate the
conceptual framework including marketing offerings and efforts. With the
analysis of giving empirical observation and subjective meanings in project
marketing mix plan, the paper is started with firstly the desk-based research
through secondary data to develop the academic framework; secondly the
small-scale survey with the participation of 30 enterprises in Vietnam market
as the empirical client-based information; and lastly after having the picture
of marketing environment, the author with her experiences and discussions
with 5 IT managers to dig deep in each cause for meaningful
recommendations. In the current context of Vietnam, the generalization in
launching new IT products should be focused on small and medium private
and foreign-owned enterprises who have market scope of national-wide or

ii


with import/export/international dealing activities. Manufacturing and
commercial, trading are two pointed focuses. Although the focus is not
mainly involved the market life, the preference is on new businesses with
short-life market. According to research findings, recommendations for
projecting marketing mix plan along with the mentioning of risk analysis is
proposed with the expectations of giving tactics for the successful launching
of new IT products in the Vietnam market.

iii


TABLE OF CONTENT

ACKNOWLEDGEMENT ................................................................................. i
ABSTRACT ...................................................................................................... ii
TABLE OF CONTENT ................................................................................... iv
LIST OF FIGURES/ TABLES ........................................................................ vi
INTRODUCTION ............................................................................................. 1
CHAPTER 1. FUNDAMENTAL THEORY OF LAUCHING STRATEGY ...... 7
1.1. Marketing plan and its roles ................................................................... 7
1.1.1. Marketing plan .................................................................................. 7
1.1.2. The role of marketing plan ................................................................ 9
1.2. Models of marketing plan..................................................................... 10
1.2.1. Marketing mix of 7Ps ...................................................................... 10
1.2.2. Porter‟s five forces .......................................................................... 13
1.3. SWOT analysis ..................................................................................... 15
1.4. BCG matrix .......................................................................................... 16
1.4.1. Promotion in marketing ................................................................... 17
1.4.2. Segmentation-Targeting-Positioning (STP) .................................... 17
1.4.3. The conceptual framework .............................................................. 18
CHAPTER 2. PROPOSING AND DEVELOPING STRATEGY FOR NEW IT
PRODUCTS TO VIETNAM MARKET. CASE STUDY OF DELL EMC....... 19
2.1. Research mehodology .......................................................................... 19
2.1.1. Philosophy ....................................................................................... 19
2.1.2. Approach ......................................................................................... 20
2.1.3. Research method ............................................................................. 21
2.1.4. Data collection ................................................................................. 21
2.1.5. Data analysis framework ................................................................. 23

iv


2.1.6. Ethical issues ................................................................................... 25
2.1.7. Limitations of the research process ................................................. 25
2.2. Data analysis and findings .................................................................... 25
2.2.1. Market analysis ................................................................................ 25
2.2.2. Meaningful factors when using IT products ................................... 29
2.2.3. Determinants in decision of IT products using ............................... 32
2.4. Interest/ intention and purpose of using IT products ........................... 32
2.5. Dell EMC analysis................................................................................ 39
CHAPTER 3. PROPOSAL SOME SOLUTION TO IMPLEMENT STRATEGY
OF DEVELOPING NEW IT PRODUCTS FOR DELL EMC .......................... 42
3.1. Marketing mix recommendations......................................................... 42
3.1.1. Marketing objectives ....................................................................... 42
3.1.2. Target clients ................................................................................... 43
3.1.3. Marketing mix ................................................................................. 43
3.1.4. Marketing effort control .................................................................. 46
3.1.5. Risk analysis .................................................................................... 47
3.2. Implications for further researches ....................................................... 49
CONCLUSION ............................................................................................... 50
REFERENCE .................................................................................................. 51
APPENDIX ..................................................................................................... 53
Appendix 1: Questionnaire ....................................................................... 53
Appendix 2: Demographic information .................................................. 56
Appendix 3: Reliability test ...................................................................... 58
Appendix 4: Factor analysis ..................................................................... 67
Appendix 5: Descriptive analysis ............................................................. 75

v


LIST OF FIGURES/ TABLES

Table 1.1. Marketing mix 7Ps ......................................................................... 11
Table 1.2. Influencers for marketing in goods and service aspects ................ 13
Table. 2.1. Sample characteristics (N = 30) .................................................... 28

Figure 1.1. Influencing factors of marketing plan ............................................ 8
Figure 1.2. Five forces model in marketing perspective ................................. 14
Figure 1.3. Resource-based SWOT analysis................................................... 16
Figure 1.4. BCG matrix ................................................................................... 17
Figure 1.5. The conceptual framework ........................................................... 18
Figure 2.1: A progressive focusing model in qualitative research process .... 24
Figure 2.1. Purpose of using IT products ....................................................... 33
Figure 2.2. Purpose of using IT products as Business type ............................ 34
Figure 2.3. Purpose of using IT products as Business size ............................. 35
Figure 2.4. Purpose of using IT products as Business field ............................ 36
Figure 2.5.Purpose of using IT products as Market scope.............................. 37
Figure 2.6. Purpose of using IT products as Market life ................................ 38
Figure 2.8. SWOT analysis of Dell EMC ....................................................... 39
Figure 3.1. BCG matrix of Dell EMC ............................................................. 44
Figure 3.2. Risk analysis ................................................................................. 48

vi


INTRODUCTION
1. Abstract
This research, on the understanding of the importance of launching programs
for new IT products in local market, is keen on comprehending demands of
customers and marketing environment in the case of IT industry with the use
of IT products within the Vietnam context. The level of exploiting IT
products for information management including security and backup is
thought to be low by which the space for IT providers is abundant. In the
specific case of Dell EMC Vietnam – the giant in backup and security IT
product industry, the research gets the client-based information, marketing
environment of Vietnam and potential of Dell EMC in launching new IT
products to Vietnam market to propose empirical tactics in projecting
marketing mix plan.
The paper attempts to comprehend components of marketing plan including
marketing environment through PESTEL, Five forces, competition analysis.
Marketing mix of 7Ps are mentioned as the core premise to formulate the
conceptual framework including marketing offerings and efforts. With the
analysis of giving empirical observation and subjective meanings in project
marketing mix plan, the paper is started with firstly the desk-based research
through secondary data to develop the academic framework; secondly the
small-scale survey with the participation of 30 enterprises in Vietnam market
as the empirical client-based information; and lastly after having the picture
of marketing environment, the author with her experiences and discussions
with 5 IT managers to dig deep in each cause for meaningful
recommendations. In the current context of Vietnam, the generalization in
launching new IT products should be focused on small and medium private
and foreign-owned enterprises who have market scope of national-wide or
with import/export/international dealing activities. Manufacturing and
1


commercial, trading are two pointed focuses. Although the focus is not
mainly involved the market life, the preference is on new businesses with
short-life market. According to research findings, recommendations for
projecting marketing mix plan along with the mentioning of risk analysis is
proposed with the expectations of giving tactics for the successful launching
of new IT products in the Vietnam market.
2. Research background
IT product and service management is attached the prominence in business
environment of today (Wan and Liang, 2012). Majority of companies is
relying on computers and information technology systems to boost up the
efficiency in operating their business activities through the accurate and
secure information management. It brings up the role of IT product service
providers in harmonizing IT services and business (Bon, Picper and Veen,
2005). In the information-driven world, when applying systems or using IT
products to exploit the power of information, the ultimate security and right
methods of management and backup are raised as the top concern.
Vietnam is in the developing phase where the application of IT and
information management functions within enterprises is still poor. Most of
Vietnamese companies, although have realized the increasing importance of
IT application in value creation chain, the investment and implementation are
lax due to the lacking of specialized knowledge or incomplete realization of
IT product availability. According to the Vietnam E-commerce report 2013
(Ministry of Industry and Trade), there has been approximately 18%
enterprises embedding ERP (Enterprises Resources Planning) software or
21% ones using SCM (Supply Chain Management) software in business
administration. Regarding to security measures, solutions applied have not
been intense with measures of firewall (87%), anti-virus (84%) or hardware
(45%). Another point to contemplate is that majority of Vietnam enterprises
2


have no Research and Development department to focus on customers‟
information as sources for new products development. The situation leads to
the own space of security about customer information of each marketers or
salesman.
Dell EMC – the US-based worldwide company – provides the complete
solutions for organizations securing and managing their information-driven
applications. Dell EMC is the leading company in its business sector as the
most trustworthy information-secured partners.
Due to the new emerging feature of Vietnam market and its bright future in
development, the market is reckoned to be potential and more aggressive
when more and more international participants execute their expansion
strategy. As such, it is significant for Dell EMC‟s success to have the right
diversification strategy including market expansion and business share
increase. Following that direction, marketing mix is crucially important for
promoting Dell EMC‟s products with the initial importance of marketing
environment comprehension and the consistent adaptation of marketing mix
of 7Ps on the base of suitable marketing offerings and efforts.
Capturing the increasing importance of securing and managing an
information-driven business world, the research paper to explore the most
effective marketing strategy to develop IT products into market in Vietnam
context – one country in the early developed phase of applying information
management-based systems. Concretely, the topic is exemplified by the case
of Dell EMC Company: “Strategy of developing new IT products to the
Vietnam market. Case study of Dell EMC”.
3. Research aim and objectives
The research paper to study possible methods to develop new IT products in
Vietnam market; and the case that what Dell EMC should adjust its marketing
plan for adaptation. Ultimately, the findings will give implications for IT
3


product providers in creating their promotion and launching campaigns for
reaching and acquiring higher business shares for clients.
As for this aim, the key objectives are:
1. To define the importance of marketing plan to the success of companies
and identify marketing methods being used
2. To explore the ideas of companies about IT products application
3. To project marketing mix plan for launching new IT products
4. To analyze issues that could be occurred when implementing the plan
4. Rationale of the research
Reinforcing the business efficiency is one of the ultimate purpose being
pursued by every company. Internally, for right decisions, it is required for
the accurate data processing, securing and managing. With the modern IT
products and the right IT service management, the function will be settled
down. The topic is chosen as:
Firstly, information management function in Vietnam context is still at low
level, except international big companies. As such, the promotion of new IT
products in Vietnam, especially toward local companies is needed deeper
investigation.
Secondly, the use of right IT products supports the smoothness in operations
and rightness in decision making by which the bottom line of business
performance will be brought up.
Thirdly, this research could provide the new views for Vietnamese companies
about the application of IT products. Also, it provides suggestions for using
them.
Fourthly, IT product providers, not only Dell EMC, could be benefited from
the research in the effort of planning ways to develop their products in
Vietnam market

4


5. Research methodology
The research is gone with Pragmatism philosophy to ensure the observable
and subjective meanings. Deduction approach is used to measure the
empirical meaning of the hypothesized research model which is resulted by
literature review; and with some elements of Induction to focus on unique
features of IT products industry in observation and recommendations. Data
sources are combined by two of primary and secondary. The use of mixed
methods of both quantitative and qualitative data ensures the breadth and
depth of analysis.
Quantitative method
The use of quantitative method is to gain the clients‟ responses regarding to
their preferences and habits in using and applying IT products in daily
operations. This is the important phase and input information of any
marketing or new product launching plans since understanding new markets
and its components‟ expectations helps composing right tactics pinpointing
the general needs. It is considered as the empirical source of information for
bringing up the realistic viewpoints inside the launching plan.
Sampling technique is favoured to probability with cluster sampling with
random samples. Being the B2B-service, the target population of the research
is companies operating in Vietnam market. Particularly, managers including
IT and information management ones in local companies are the ideal choice.
The scope of this research is focused on the intense ideas of 30 enterprises
including 20 Vietnam and 10 international ones. The source of participants is
from the personal relationship of the researcher who have years of experience
in the industry.
Qualitative method
Qualitative data will be obtained along with the attempt of collecting
quantitative data from clients besides the investigation of marketing
5


environment and related theories. Information about marketing environment
and related theories is considered as secondary sources obtained from
academic journals, books, articles, reports and statistical data etc. which are
accessed from online library of the University, Google Scholar and
magazines.
With the mix in use, strengths and weaknesses of single understanding could
be leveraged. If just using quantitative data, broad ideas in terms of the use
and expectations about IT Products could be gained; however the deep
insights regarding to why they are exploited could be dismissed. Additionally,
multi-dimensional viewpoints could be formulated along with a greater
assortment of complementary views. After acquiring the general picture about
IT products using preferences and habit, metaphors will be used in more
focused questions to 5 key IT and IM managers whom the author has the very
good relationships to, to dig deep inside the truly implied motivators.
The quantitative result will be analyzed through SPSS application. Findings
are tested and measured through (1) reliability test to measure items‟
consistency as a measurement set; (2) factor analysis to identify the
appropriateness of item group; and (3) descriptive analysis to understand
related expressions and descriptions of all ideas collected.
6. Research outline
The research is designed in 3 chapters as following:
Introduction
Chapter 1 – Fundamental theory of lauching strategy.
Chapter 2 – Proposing and developing strategy for new IT products to
Vietnam market. Case study of Dell EMC.
Chapter 3 – Proposal some solution to implement strategy of developing new
IT products for Dell EMC.
Conclusion
6


CHAPTER 1. FUNDAMENTAL THEORY OF LAUCHING STRATEGY

The chapter gives the review of theories and concepts replying to the topic
and the research objectives. The marketing plan and its roles are mentioned
with the intensive discussions of models of marketing plan and marketing
environment. Ultimately, the chapter is to find out key components in
launching new products to market. The chapter is the fundamental reasoning
for the research value with research hypotheses and conceptual framework.
1.1. Marketing plan and its roles
Marketing plan is important for the business operation at three levels of (1)
business-unit; (2) product and (3) market. Marketing plan is the integral part
of strategy planning in capturing specific market and marketing opportunities
(Kotler and Armstrong, 2012, p. 38). The proper marketing tactics helps
offerings reaching customers by which the achievement of economic and
business objectives is obtained.
1.1.1. Marketing plan
Defined by Kotler and Keller (2006, p.43), marketing plan is “the central
instrument for directing and coordinating the marketing effort”. Two
accountabilities of marketing plan are strategic and tactical. The strategic
level requires the deep analysis of marketing environment so as to adapt
market

opportunities

including

proper

identification

of

target

markets/customers and appropriate values offered. The analysis of marketing
environment

focuses

on

six

elements

of

demographic,

economic,

technological, physical, social, cultural, political and legal which will help
identifying key influencers affecting, modifying or shaping business decisions
(Johnson, Scholes and Whittington, 2008, p.54). Also, the findings are key
inputs for solutions dealing with uncertainties (Wack, 1985).

7


From the marketing strategy, tactical marketing plan elucidates detailed
specifications such as offering functionalities, promotion campaigns,
merchandising solutions, pricing strategies, sales and distribution channels
and service included. By those tactics, the gap between offerings and
customers‟ emotional expectations is reduced that raises purchasing actions.

Figure 1.1. Influencing factors of marketing plan
Source: ‘Marketing Management’, Fig. 1.6, p.27 (Kotler and Keller, 2006)
Marketing plan is, paralleling, impacted by key immediate factors including
marketing intermediaries, suppliers, competitors and publics. Marketing
efforts, ultimately, are to approach target customers. Along with the task of
unveiling competitive market information, marketing efforts are also spared
for building up the collaboration via positive relationships with marketing
intermediaries – the ones develop, distribute and sell company‟s offerings to
customers.

This

plot,

on

the

other

hand,

helps

improving

the

delivery/distribution network (Johnson et al., 2008; Kotler and Armstrong,
8


2012; Kotler and Keller, 2006). Generally, every single marketing effort is
endeavouring to sell offerings to end-users/customers by the creation of
beneficial values and customer satisfaction.
Elementally, a marketing plan is constructed by eight main components of (1)
executive summary; (2) overview of current marketing situation; (3) chances
and challenges exploring; (4) identification of marketing objectives and
related

issues;

(5)

planning

marketing

strategies;

(6)

marketing

implementation and action plans; (7) budgets planning and (8) controls
(Kotler and Keller, 2006). These eight parts are composed based on the
comprehension of marketplace and the rational use of methods and/or
solutions that the company are pursuing to accomplish its marketing
objectives (Wood, 2003). Not simply depict or analyse marketing
environment, marketing plan contains tactical solutions and actions plans for
executing programs and allocating budgets over the planning period
(Lehmann and Winer, 2001). Marketing plan is fuelled by the outcomes of
analysis process to get intensive understanding of marketing opportunities,
target market selection, segments, strategies design, program development
and marketing effort management (Kotler and Keller, 2006, p. 27).
Marketing effectiveness is in the turn of marketing strategy into consistent
actions and implementation methods in the implementation phase (Kotler and
Armstrong, 2012, p. 59). Marketing plan on the research work is to answer
questions of what and why things must be gone by specific ways; meanwhile
marketing implementation is critical reply to the queries of who, where, when
and how (Kotler and Armstrong, 2012, p. 54).
1.1.2. The role of marketing plan
Marketing plan owns the different roles according to which level to be
examined – corporate, business and product/market. At corporate level, it
provides core inputs about competitive degree and customers as per outcomes
9


of analysing marketing environment, competitiveness, propensities and
dynamics in external markets. This is the practical source for planning
corporate strategy. At business level, it specifies strategic development plan
for each business unit so as to gain expected achievements in its future course.
Different marketing strategies will be produced at this level. With specified
marketing programs, marketing management and formulation sessions are
designed at a product/market level. The success of the whole plan is relied on
the rationality and effectiveness of each action plan (Jain, 2009).
1.2. Models of marketing plan
1.2.1. Marketing mix of 7Ps
The

expectations

and

requirements

of

customers

are

increasingly

sophisticated by which product-specialized companies have to combine
features of service marketing mix into marketing plans. Theoretically,
different from goods, service has four unique characteristics of (1)
intangibility – offering quality is possible to be evaluated only after being
consumed (Parasuraman, Zeithaml and Berry, 1985; Van Riel, Lemmink and
Ouwersloot, 2001); (2) heterogeneity – offering performance is always
fluctuated since its inherence to people performance, purchase occasions,
experience, etc. (Parasuraman et al., 1985; Friedman & Smith, 1993); (3)
simultaneity – due to the formulation of offering quality during the delivery
stage, people find it difficult in recalling the quality judgment (Martin, 1999;
Brodie, Whittome & Brush, 2009); and (4) perishability – since service could
be stored it has to be created on demands (Iacobucci, 1998). With those four
features, if only relying on 4Ps of marketing mix (Product, Price, Place and
Promotion), companies have missed out chances to serve, meet demands of
customers and make them satisfied. Therefore, the inclination is to use 7Ps
with the supplement of 3 „service‟ Ps – People, Physical evidence and Process
(Booms & Bitner, 1981 as cited in Moorthi, 2002). According to the level of
10


expertise being embedded in the offerings that the combination of marketing
mix and relationship marketing is required. The mixture is customer-oriented
based on flexible practices of product assortments/categories, designs,
features and brand name (Lehtinen, 2011).
Service-scape is the noticeable concept inside the P of Physical evidence. It
pinpoints the important role of artificial surroundings in enhancing
consumption settings (Bitner, 1992). Depending on which kinds of offerings,
service-scape has its own significance in creating service experience; yet
generally it covers both tangible features for example building, office,
facilities and intangible cues such as design style, temperature, smell, etc.
(Hoffman and Turley, 2002). Service competences and quality could be
implicitly considered through the first sight impression about physical
evidence. The more positive this impression, the larger chances that obstacles
to evaluate service quality will be dismissed (Bitner, 1992; Ezeh and Harris,
2007; Paninchukunnath, 2009). As a result, the intangibility could be reduced.
Table 1.1. Marketing mix 7Ps
P

Description

Product

Offering scope; offering quality; offering level; service brand;
offering content; credit warranty; after-sales services

Price

Discount and commission; terms of payment; customer
perceived value; offering differentiation; match between brand
name and price

Promotion Advertisement; promotion; human promotion; public relation;
sales promotion
Place

Location; distribution channels; closeness; distribution scope

People

Employees: training, personal judge, explanation capability,
encouragement, appearance condition, working relationship;

11


attitude; job quit rate; recruitment
Physical

Environment: indoor decoration, colour and arrangement;

evidence

equipment; tangible product

Process

Service decision; procedure; level of automation; employees‟
level of judgment; guidance to the customers; service process;
after-sales services

Source: Adapted Marketing Mix 7Ps (Booms and Bitner, 1981 as cited in
Moorthi, 2002)
The two Ps of Process and People have the direct impact on how perceived
quality is formed. Perceived quality is the outcome of the comparison process
between pre-purchase expectations and post-purchase evaluation based on
consumed experience (Friedman and Smith, 1993). Process contributes to the
formulation of service quality with outcome and process quality (Caruana,
Money and Berthon, 2000). Controllably, process quality emphasizes the
efficiency and accurateness of ways offerings being provided to customers.
Due to the perishability feature, only when customers‟ expectations and
demands are met is process assessed to be good. Mentioning the P of People,
employee service is the integral part of services which refers to what and how
services are offered (Grace and O‟Cass, 2005). Human performance in service
sector is performed through employees‟ expertise level of responsiveness,
reliability and empathy (Backstrom & Johansson, 2006). As per the
heterogeneity, perceptions of customers about offering quality may be
occurred when contacting with employees. As such, variations in quality
provided and perceived risks in purchasing could be reduced in case
employees are qualified and well-trained. During the service delivery stage,
the interaction with employees could overcome constraints of inseparability
and significantly result in customer satisfaction (Martin, 1999).

12


Based on the branding viewpoint, influencers affect customers‟ perceptions
are deemed to be different between goods and services; yet in some extent,
some are common to both (Grace and O‟Cass, 2002) (See Figure 2.2).
Service-scape, feelings, image of typical user, experience with brand, wordof-mouth and employees are reckoned as meaningful factors determining
service-related purchasing decision of customers. While feelings and selfcongruence are the two unique dimensions in branded product buying.
Table 1.2. Influencers for marketing in goods and service aspects
COMMON

TO

BOTH
Branded product

Core product/ service Branded service

Feelings

Experience

Self-image congruence

brand

Employees

Image of user

Word-of-mouth

with Service-scape

communication
Source: Adapted ‘Brand associations: looking through the eyes of the beholder’
(Grace and O’Cass, 2002)
Basically, as per the impact of social influence, customers often rely on word
of mouth to reduce perceived risks and uncertainties in association to
purchase decisions (Murray, 1991). Word of mouth has been claimed to be in
cohesion to satisfaction based consumption experiences. However, word of
mouth is the two-blade knife in case the vigorousness and responsiveness
pinpointing customers‟ complaints are not ensured (Mangold, Miller and
Brockway, 1999).
1.2.2. Porter’s five forces
Marketing environment is obliged to be analysed so as to reveal chances and
challenges facing companies (Kotler and Armstrong, 2012). In the
surrounding environment with the involvement of companies, suppliers,
13


marketing intermediaries, competitors and customers, the application of five
forces model helps understanding strategic resources as ready input for
successful marketing strategies or revealing attractive market segments
(Kotler and Keller, 2006). Basically, depicting the industrial context,
decisions about economic value creation is made and/or modified to gain
long-term profits – strategic directions including tough competition, reshaping
or exploiting white space (Porter, 2008).

The model in this advantage

analyses five forces of (1) threat of new entrant; (2) bargaining power of
suppliers; (3) bargaining power of buyers; (4) threat of substitute products or
services and (5) rivalry among existing competitors.
In marketing, five forces model helps identifying whether the specific
segment is attractive enough. The segment is examined with five threats of (1)
intense segment rivalry, (2) new entrants, (3) substitutes, (4) buyers‟ growing
bargaining power and (5) suppliers‟ growing bargaining power (Kotler and
Keller, 2006; Porter, 1985).

Figure 1.2. Five forces model in marketing perspective
Source: ‘Marketing management’, Fig. 11.1, p. 342 (Kotler and Keller, 2006)
Threat of mobility – ease of entry and hurdles of exit barriers reduce the
attractiveness of segments.
14


Threat of buyer power - buyer power and segment attractiveness are in
inverse proportion. Buyer power is intensified in case they are in high
concentration, sensitiveness to price; products are less differentiated;
switching costs are low, etc. To protect market positions, the solutions are
focused on beneficial values and satisfied services offered.
Threat of supplier power – if suppliers have power to increase selling prices
and curb supplying quantities, segment attractiveness is vague. Diversity in
input sources is the solution to keep the balance in inputs.
Threat of substitutes – the market with full of substitutions leads to the low
level of attractiveness since the competition would be tougher by which
marginal profit is reduced.
Threats of segment rivalry – The segment is not attractive if the market is (1)
crowded with strong competitors; (2) stable or declining; (3) with high fixed
cost; (4) with high exit barriers; (5) competitors‟ large market share.
1.3. SWOT analysis
To respond effectively to market opportunities, firms crucially have to build
their own business capabilities or core competences (Prahalad and Hamel,
1990). Based on resource-based view, Barney (1991) confirms that once
company has competitive advantages, it has capabilities to take advantage of
environment opportunities and avoid threats.
Threshold resources and competences helps companies surviving in the
competitiveness, while competitive advantage gives them confident positions
with outstanding performance. Depending on internal forces, companies
would follow the appropriate strategies to pose the unified direction of
resources and competences including cost leadership, differentiation or focus
as Porter‟s generic strategies (Juga, 1999) or price-based, hybrid,
differentiation and focused of Bowman‟s competitive strategy (1996).

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Figure 1.3. Resource-based SWOT analysis
Source: Adapted ‘Firm resources and sustained competitive advantage’, pp.
99-120 (Barney, 1991) and ‘SWOT analysis from a resource-based view’, pp.
54-68 (Valentin, 2001)
Resources-based SWOT gives the important attachment on the more
perceptive, reliable and performable gut expressions. Core competences or
[sustainable] competitive advantage and weakness decide and are decided by
environmental base i.e. business chances and challenges (Valentin, 2001).
Strengths and weaknesses of SWOT are revolved around product, human,
financial, marketing, technological and organization aspects. However, the
rapid changes of external environment requires resource-based SWOT to be
examined and re-created swiftly (Teece, Pisano & Shuen, 1997).
1.4. BCG matrix
Based on the analyses of marketing environment and competence of Dell EMC,
market growth and market share could be estimated by which its IT Products
could be priced/ positioned as being „dog‟, „cash cow‟, „star‟ or „question‟.

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Figure 1.4. BCG matrix
Source: ACCA
1.4.1. Promotion in marketing
Currently, promotion expenses consumes approximately a quarter of
marketing budget with the aimed purpose of persuading them to buy and buy
products immediately (Raghubir, Inman and Grande, 2004; Blattberg and
Neslin, 1990). Promotion is not only considered as one of the most
complementary sales channels but an important tactic to build brand
popularity and loyalty, (Lee & Hsu, 2010). Conventionally, promotion is the
powerful technique to bring up direct sales (Bawa and Shoemaker, 1987;
Dodson, Tybout and Sternthal, 1978; Gupta, 1988). In long term, promotion
gives impact on brand perception leading to loyalty and then, bottom-line
success for businesses (Aaker, 1996; Buchanan, Simmons and Bickart, 1999;
Keller, 2003). For new market, the suitable sales promotions and consumer
promotion will gain the sales volume and reputation for the brand.
1.4.2. Segmentation-Targeting-Positioning (STP)
STP is the path to understand customers, competitors and marketplace around
companies. The appropriate STP helps (i) identifying lucrative chances; (ii)
concentrating on strong potential customer segments; (iii) estimating purchase
intention; (iv) exploring new demands; (v) boosting up customer loyalty; and (vi)
improving business performance (IBM, 2009). Strategically, the rational
segmentation opens new conditions since STP process could explore dissatisfied
and underserved groups – hints for companies to conduct expansion directions
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