MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF TRANSPORT AND COMMUNICATION
----------

DANG THE HIEN

STUDY ON ESTABLISHMENT OF MARKETING
STRATEGIES FOR LARGE-SCALE
CONSTRUCTION ENTERPRISES IN VIETNAM

Major: Construction Management
Code: 9.58.03.02

SUMMARY OF PHD DISSERTATION IN ECONMICS

HA NOI - 2019


This dissertation is completed at: University of Transport and
Communications
Scientific guidance group:
1. Prof. Dr. Nguyen Dang Hac
2. Assoc Prof. Dr. Dang Thi Xuan Mai
Examiner 1:
Examiner 2:
Examiner 3:

This dissertation will be defended before the Board of Examiners at institute
level at: University of Transport and Communications
at … o’clock on day …… month ……… year ……….


have been implemented in the world for

lessons learned in the process of

proposing the content of management and supervision of construction projects
implemented in the form of EPC general contractors”, Science Research Project at
Ministry level: Research for proposing contents of management and supervision of
construction projects in the form of EPC general contractor, Ministry of
Construction passed by 2015.


1
INTRODUCTION
1. THE NEED FOR THIS STUDY

Science on marketing is one of modern economic theories, associated with the
market economics. In the context of international economic integration and the
development of digital technology, marketing activities are growing strongly with new
knowledge and skills in all areas of an economy. Marketing as a science and art in
business has been widely used and brought success to many enterprises, organizations
and countries around the world.
With the current concept, marketing strategies become a very important strategy of
enterprises in general and construction enterprises in particular. Through the development
of marketing strategies, construction enterprises determine operated directions and how
to achieve development goals of their businesses. Establishments of marketing strategies
become more necessary for large-scale construction enterprises in the context of a
globalized economy.
Production and business activities in large-scale construction enterprises have many
specific characteristics that differ from those of industrial goods and consumer goods
manufacturing enterprises. Therefore, the establishment of marketing strategy

4. RESEARCH QUESTIONS

- The theory basics on establishment of marketing strategies for enterprises and


2
what issues need to be clarified, supplemented and perfected to suit the current economy?
- What is the current situation of marketing activities and establishment of
marketing strategies for large-scale construction enterprises?
- What are prerequisites for establishment of marketing strategies for large-scale
construction enterprises?
- What are procedures and contents of each steps to establishment of marketing
strategy frameworks for large-scale construction enterprises? Components and their
coordination between mixed marketing in marketing strategy frameworks
5. SCIENTIFIC AND PRACTICAL SIGNIFICANT OF THE DISSERTATION

5.1. Scientific Significance
The dissertation has systematized, clarified and supplemented the theoretical basis
for establishment of marketing strategies on enterprises. Provide scientific arguments,
suitable to build marketing strategy framework for large-scale construction enterprises?
5.2. Practical Significance
Assess the status of marketing activities and establishment of marketing strategies
for large-scale construction enterprises in site construction and construction activities
with real estate investment in the period from 2013 to present.
Propose to establish a marketing strategy framework for large-scale construction
enterprises in accordance with two areas of operation, namely: site construction and real
estate invested activities.
6. DISSERTATION STRUCTURE

In addition to the introduction, conclusions and recommendations, references,

serve as a basis for determining the research direction of the dissertation topic.
- General theories on marketing and development of marketing strategies have
been studied a lot [19] [21 [22] [23] [27] [28] [52], contents of these studies focused on
establishment of components for mixed marketing (products, prices, distribution and
communication), has not yet developed a marketing strategy for enterprises. In these
studies, there has not been any study to specify marketing activities and development of
marketing strategies for construction sector with specific characteristics in Vietnam.
- Research projects [6] [50] [52] [31] [32] [21] [40] [70] [75] ... focused on basic
theories of general marketing management activities in the enterprise, including the
marketing strategy management.
- Studies [34] [14] [15] [73] [77] [25] [33] [35] [87] [68] have research contents
on marketing activities, establishment of marketing strategies but limited to only a few
areas and research contents also focus on establishing components of mixed marketing
such as products, prices, distribution, media, people, processes ..., This studies have not
mentioned orders and contents of establishment of marketing strategies for large-scale
construction enterprises.
- Research contents [24] [61] [69] [84] [85] [86] gave the process and content to
set up marketing strategies for enterprises. However, the procedure and content to
establishment of marketing strategies are no longer consistent with modern marketing
trends, need to have additional studies, modify to suit the current economy.
- Application and combination of marketing components to create mixed
marketing of enterprises has been mentioned [65] [50] [55] [24]. However, these studies
are only at the level of questioning, and specific studies of the coordination between these
components in construction enterprises with the characteristics of the construction
industry and the scale of enterprises big is not available.
From above comments, the author defines research gaps and research directions of
the dissertation is to study and develop the marketing strategy of large-scale construction
enterprises, with the following specific contents:
- The trend of international economic integration of our economy is an
inevitable trend in the current context, so the dissertation needs to have researches on

2.1.2.1Definition of business stagetegies
 Definition of business strategies
A marketing strategy is an important, inseparable functional strategy of a business
strategy. A marketing strategy that clearly defines enterprises’ marketing goals and a set
of marketing measures to achieve that goals. The content of the marketing strategy is to
define marketing objectives, select target markets, determine appropriate marketing
strategy options, establishment of mixed marketing and implementation planning. Thus,
establishment of mixed marketing is an important content of the marketing strategy.
 Strategy plans and marketing plans
Viewpoints on strategic planning and marketing plans are expressed by researchers
such as:
- Strategic planning of an enterprise is essentially an anticipation of the future
(opportunities and risks) from which to set goals and operational orientations to adapt to
the future and to ensure delivery long-term and solid growth in the market [6, p.70].
- Marketing plan is a functional plan, a tool to run marketing activities of enterprises.
A marketing plan is a management document containing instructions for marketing
activities that will be carried out for a brand or a product type and allocate these activities
over the implementation period of the plan.
2.1.2.2Roles and needs for establishment of marketing strategies for enterprises
2.1.2.3Main components of marketing strategies
Enterprise’ marketing strategy is studied by many authors, including similar views
and different views. Through systematizing the theoretical basis of marketing strategy,
from the author's viewpoints, the core activity of modern marketing strategy includes:
market segmentation and target market selection; market positioning; establishment of
mixed marketing.
a. Market divisions and selection of target markets
Market researches and segmentations to determine the target market suitable for
businesses is an important task, requiring marketing departments of enterprises to
perform in a scientific and professional manner. Selecting a target market is one of
important activities and an indispensable factor in the process of developing a marketing

(Policy) [6, p.111]; power (Power), public relations (Public relations), Process, people or
service personnel (people / personnel) or physical evidence of service providers (physical
evidence) ) [24, p.18].
2.1.2.4Methods for establishment of marketing strategies for enterprises
The process of setting up a marketing strategy consists of four stages: determining
objectives for the strategy; analyzing and forecasting on enterprise capabilities and
mandatory requirements; establishing possible strategic options; assessing and selecting
strategies [24, p.53].
2.2 Components of mixed marketing
In Philip Kotler's view on large-scale marketing research, in mixed marketing in
addition to four basic components as mentioned above, he added two components - 2P
which is the power component (Power). and public relations (Public relation) to form
mixed marketing [24, p.12] with 6 components - 6P in accordance with the characteristics
of global marketing [50, p.657] and attributable large enterprises. Power is now a
component of mixed marketing, but at the same time a promotion strategy. In contrast,
public relation is an enticing strategy. Power can push enterprises into a market, while
public relations can entice businesses into that market. Thus, according to the author,
large-scale enterprises need to study the view on large-scale marketing and global
marketing to apply to the development of the marketing strategy of enterprises.
2.2.1 Enterprise products
2.2.1.1Products in accordance with marketing viewpoints
The modern marketing perspective on products and services of enterprises is now
divided into two viewpoints: that are marketing theory according to divergent theory
(marketing scientist Al Ries and Jack Trout) and marketing perspective according to
integration theory (with indirect participation of Philip Kohler).
2.2.1.2Contents and components of products
a. Product types
b. Consolidate the development of current product reputation
c. Develop new products
d. Product brands

- Maximize sales volume
- Leading in product quality
2.2.2.2 Impacted factors on pricing policies
 Macroeconomic environment and policy, price management regime of the state
 Factors on market side
 Factors on enterprise side
- Structure of production costs
- Quality and reputation of products
2.2.2.3Methods for Price formation
a. Price formation based on production costs
b. Price formation based on dividing costs on fixed costs and variable costs
c. Price formation based on market demands
d. Price formation based on competitive situations
2.2.2.4 Procedures for price formation
- Calculate and analyses costs
- Analyze the market and forecast the volume of products that can be consumed
- Determine the price range and expected prices
- Decide optimal price levels
- Develop price structures
- External quotations
2.2.2.5 Price strategies


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 Strategies for high-price deformation
 Strategies for low-price deformation
 Strategies for market oriented price deformation
2.2.3 Distribution of enterprise products
2.2.3.1 Distribution policies on marketing strategies
Distribution is an important part of marketing strategy. Basic components of

There are 3 special distribution policies: wide distribution, selective distribution and
exclusive distribution [61, p.124].
2.2.4 Marketing communication
2.2.4.1Communication policies on marketing strategies
Marketing communication is in fact all activities to provide information about
products, services, brands and enterprises themselves to customers, to create awareness,
to build trust and to promote purchasing actions. Marketing communication activities
include: advertising activities, sales promotion, public relations, personal sales, direct
marketing and online marketing.
2.2.4.2 Advertising activities
a. Establish advertising programs for enterprises
The process of setting up an advertising program for enterprises consists of 5 stages:


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identify objectives, objects and recipients of advertising, choose forms and means of
advertising, build advertising contents, choose advertising strategies or policies and
advertise program development [61, p.134].
b. Evaluation of advertisements
2.2.4.3 Sale promotions
Sales promotion is an important marketing activity of communication and is often
used in the following cases: a fiercely competitive market; Current products of businesses
are reputable in the market; New products launched on the market [61, p.138].
a. Sales promotion with marketing intermediaries
b. Sales promotion with customers
2.2.4.4 Personal sales
Personal sales is an essential tool of marketing communication and is considered a
personal communication tool, able to adapt to a variety of customer reactions.
 Procedures for personal sales
 Impliment strategies for personal sales

- Public relation with Internet
- Direct marketing on Internet


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3.
CHAPTER 3
PRACTICAL STATUS OF MARKETING ACTIVITIES AND ESTABLISHMENT
OF MARKETING STRATEGIES FOR LARGE-SCALE CONSTRUCTION
ENTERPRISES
The data obtained from interviewed surveys and investigation include quantitative
and qualitative data, so the author collected, analyzed and processed those data to
quantify interview results. Check out to highlight issues that need more researches.
Thereby, the author assesses the status of marketing activities and establish marketing
strategies of large-scale construction enterprises as a basis for proposing measures to
establish marketing strategies for large-scale construction enterprises in Vietnam.
3.1 Overview on large-scale construction enterprises in Vietnam
Large-scale construction enterprises are enterprises that satisfy regulations on the
establishment of enterprises according to regulations and satisfy one of the following
conditions: enterprises with total capital or total assets of over VND 100 billion, there are
more than 200 employees participating in social insurance or having a turnover of more
than VND 200 billion.
In the field of construction today, large-scale enterprises are mainly enterprises
operating in the field of project construction and real estate investment and business, so
enterprise activities in these areas are highly representative for large-scale construction
enterprises.
3.2 Personal surveys for large-scale construction enterprises
3.2.1 Purposes of personal surveys
Detail purposes of personal surveys are as:

large-scale construction enterprises
Through the interview process of 57 different construction enterprises, the author
collected 40 votes to meet the requirements of the interview specifically as follows:
Table 3.1: Summary table on results of interviews with sociological surveys for largescale construction businesses
STT

Contents

Numbers

Total surveyed questionnaire issued
57
Including:
1.1 - Direct surveys:
18
1.2 - Survey through telephones:
16
1.3 - Survey through E-mail
23
Total surveyed questionnaire collected
45
2
Total surveyed questionnaire valid
40
3
Total surveyed questionnaire not valid
17
4
(Survey through E-mail)
- Surveyed questionnaire not reply from

department are mainly assigned to one to two charge departments.
Table 3.2: The department in charge of marketing activities in the organizational
1


12
structure of the management apparatus of construction enterprises was interviewed and
investigated
Enterprise
Corresponding
STT How to organize marketing department
numbers
rate (%)
Organization type 1- The Marketing
1
Department itself is on par with other
3
7.5
functional departments
2

Organization type 2- Organized at a
division of functional departments

21

52.5

Organization type 3- Organized in the
16

enterprises, market analysis and market forecast to capture challenges and opportunities,
through which construction enterprises identify suitable marketing objectives suitable for
the market. Researching enterprises is conducted by surveyed questionnaire, the authors
recognize that the basic enterprises are aware of the role of business and market analysis,
but the forecast and positioning of enterprises is done not exactly lead to the goals that
are not achieved.
Through the process of investment process, the author found that the construction
enterprise managers considered objective factors as factors that greatly influenced the
3


13
marketing activities of construction enterprises. Construction enterprises said that the
construction demand factors, the demand for foreign investment and the State budget for
capital construction investment, the development of the real estate market, economic
growth macro, policy changes related to construction activities ... are major factors
affecting the development of marketing strategies. With enterprises with contracting
activities with real estate business, factors of staff incomes, the demand for buying and
renting apartments, offices, demand for resort real estate, the level of urbanization ,
population movement, the degree of integration and foreign investment in our economy
... are the factors affecting the development of marketing strategies of enterprises.
However, the subjective factors that construction enterprises can change and adjust
flexibly to meet the movement of market changes are not highly appreciated by
businesses and considered as important factors for enterprises to build proactively
develop marketing strategies.
3.3.3 Present condition of establishment of marketing strategies for large-scaled
construction enterprises
The author conducts questionnaire surveys to find out the situation of establishment
of marketing strategy for construction enterprises on the following contents: assessing the
role and necessity of marketing strategies for business activities, order and content of

not good yethọc

Chưayet
xâyestablished
dựng
Not

Figure 3.1: Present condition of establishment of marketing strategies for surveyed
enterprises
Firstly, results of investment in Figure 3.1 show the majority of construction
enterprises do not establish or have not established a completed marketing strategy, do
not consider the establishment of a marketing strategy as a key task to be done. and also
have not concretized the construction of marketing strategies into valuable legal
documents in the process of implementing construction enterprises. Therefore, the
functional departments of enterprises, the officers in charge of marketing and employees
are not properly aware of the role of marketing strategy for business activities of
enterprises.


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Table 3.3: Goals of marketing marketingactivities of large-scaled construction enterprises
surveyed
Enterprise
Corresponding
STT
Goals of marketing strategies
number
rate (%)
1
Goal 1-Profit maximization

Goal 1,3,4
7
23
57.5
Goal 1,2,3
8
15
37.5
Goal 1,2,3,4
Through surveyed results, the author found that construction enterprises fully
implemented the sequence of steps to develop marketing strategies (determine the
objectives of the strategy; analyze and forecast the capabilities of the enterprise; establish
battle plans) possible strategies, strategic plan options and assessments are quite few,
steps are quite sketchy. Construction enterprises mainly define marketing objectives
(usually identify duplicates, similar to the production and business objectives of
enterprises and focus mainly on the maximum profit target) in Table 3.3, followed by
giving marketing measures, so the marketing strategy is built incomplete and not
effective for the operation of construction enterprises.
The establishment and coordination of marketing measures (policies) to form mixed
marketing has not been paid attention by enterprises. Construction enterprises only stop
giving some marketing measures on products, services, prices and marketing
communications. With businesses building construction activities, marketing measures
are reflected in when businesses have new construction technology solutions, using new
materials and businesses also build high valuation policies. in the right time to bring
efficiency to businesses but still ensure competition in the market. With businesses
building construction activities with real estate business investment, offering real estate
products with superiority in geographic location, in terms of utility, and at the same time,
businesses have launched communication policies. (advertise with different means and
forms), price policy (high price policy with specific products) with the aim of
maximizing profits for businesses. The coordination between marketing measures

For construction activities that have invested in real estate projects later for business
of construction enterprises, results of investment projects show that construction
enterprises mainly focus on investing in real estate projects in urban areas for living and
mixed apartments (for living, commercial centers, offices for rent). In addition, these
enterprises may also invest in villas and resorts for tourist services at famous travelling
locations. With the type of activity mainly selling and leasing real estate, construction
enterprises have captured the market's demand to develop products suitable for different
customers and in accordance with the capabilities of each construction enterprise.
3.3.4.2 About prices of products and services
With the role of pricing products and services in production and business activities of
construction enterprises, the establishment and management of the right price policy is an
important condition to ensure enterprises can penetrate and dominate market and improve
business performance of construction enterprises. However, the price of construction
products is affected by many factors, its formation and movement is very complicated,
requiring the administration of valuation to be done synchronously and with
consideration and consideration. dynamics of other measures.
Through surveys, the author found most of construction enterprises were asked to
assess the development of proper valuation policies will bring very high efficiency in
production and business activities. In a market economy, price competition is competition
that brings immediate and very effective results, but construction enterprises have not
built appropriate price policies to promote efficiency in order to achieve the set
objectives.
3.3.4.3 About distribution of products and services
In the field of construction, product distribution of construction enterprises has
differences compared to other industries. This phase begins before the product is finished
(i.e. before the construction is completed), it starts from signing the contract between the
investor and the construction contractor until the end of construction and handover.
construction. At the stage of product distribution, construction companies do not have to
transport products to consumers and do not have to wait for sale.
Through interview results in Table 3.16 below, the product distribution and

associations real estate; create and establish mutual understanding and brand reputation
of enterprises with the market; in social relations, government relations, international
relations and between peoples, industrial and financial relations, relations with mass
media.
3.4 Limitation and shortcomings of marketing activities and establishment of
marketing strategies for large-scaled construction enterprises
3.4.1 Limitation and shortcomings of marketing activities for large-scaled
construction enterprises
Through surveyed results on large-scale construction enterprises and construction
contractors with construction investment business, the author found the establishment and
deployment of marketing tools in the practical operation of construction enterprises still
have many problems, managers of construction enterprises do not have enough skills to
implement marketing activities, there are no reliable scientific documents for managers
of construction enterprises to apply in practice. These existences include:
- In terms of institutional law and macroeconomic policies
- The level of awareness and application of marketing activities in production and
business of construction enterprise managers is much different from that of developed
countries, mainly based on the main business experience.
- The implementation of marketing activities is still limited, the concept of marketing
is just advertising, introducing company capacity, competing on bid prices, selling prices
of real estate products, discounting real estate products ... this is The views are no longer
consistent with the new perspectives on modern marketing.
- In organizing the operational management apparatus of the enterprise, the business
executives are not yet devoted to the research department and implement the marketing
strategy to operate the business in a desirable position.
- The analysis of the construction market, forecasting the development of the market


17
in the future in order to determine the target market for business and production activities

business and business fields according to the value chain of the industry.
- Construction enterprises operate with contracting activities and construction
enterprises with contracting and real estate investment are high specific enterprises
(characteristics of construction, distribution, advertisement and sales ...).
- The current construction market has very fierce competition, associated with the
socialist-oriented market economy.
Marketing strategies need to be studied in the trend of the 4.0 industrial revolution (in
the development of internet of all things, digital technology and artificial intelligence ...).
4.2 Premises on establishment of marketing strategies for construction enterprises
4.2.1 Marketing from the perspective of economic globalization
- Current marketing activities cover all business relationships with partners and
external environment, need to combine traditional marketing tools with marketing tools
based on digital technology, internet and artificial intelligence. The uniqueness in the
market mechanism decides customers to dominate the entire production and business
strategy of the enterprise.
- Marketing activities require creativity, find differences, discover new ones.
Creativity, newness, difference can start from many aspects: from production,
distribution organization, from approach to customers, from marketing communication
activities ... Modern marketing is the complex of Many factors such as product, price,


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distribution, promotion, power, profit, public relations, efficiency.
- Large-scale enterprises (multinational economic groups, large corporations) when
entering any market must study and consider consumers' customs, practices and culture in
these markets. Business activities of enterprises are less narrowed in national borders, but
instead are merging with globalization trend.
4.2.2 Positions and importance of marketing activities for enterprises today
Marketing activities of enterprises increasingly affirm an important role in the process
of production and business activities of enterprises. The failure in the production and

resources, subcontractors, commercial intermediaries (real estate trading floors, real
estate brokerage centers), competitors. These factors are studied in specific conditions of
large-scale construction enterprises with specific areas of business activities.
Components of the micro environment have a direct impact on the drafting and
implementation of marketing decisions on construction enterprises. Developers identify
needs, have the ability to pay will create the market of finished construction products;
suppliers create material and physical conditions of construction production, which affect
construction techniques and technology; Subcontractors to a large extent determine the
market capabilities of construction enterprises, the quantity and quality of construction
products; competitors by their behavior in the market predetermined marketing
conditions, selected marketing strategies and tactics of construction businesses;


19
Commercial intermediaries will be representatives of the business when introducing the
company's products to buyers.
4.2.3.3Internal environment of construction marketing
When the concept of the internal environment of marketing establishment as the
overall production and social environment of the construction business, it can be assumed
that marketing has gone deeply into all components of the production apparatus..
- Production environment of the internal environment of marketing construction
includes the following basic components (Supply activities; Business operation planning;
Finance; Consumption)
- Social environment of the internal environment of marketing construction includes
the following components (Employees; Organization; Motivation, stimulation; Social
protection).
4.2.4 Characteristics of construction marketing
The construction industry has many unique characteristics so construction marketing
is also different from industry and service marketing on the principle issues of economic
and legal relations, In terms of valuation, efficiency standards and forms of competition,

4.3.1 Viewpoints on establishment of strategic marketing strategies for construction
enterprises
4.3.1.1General viewpoints on strategic marketing strategies for construction enterprises


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The marketing strategy framework of construction enterprises that the thesis presents
here is an important document with a scientific and practical basis to help the
management and administration of large-scale construction enterprises become effective
and achieve the items. business targets set out. Therefore, the marketing strategy
framework of large-scale construction enterprises is proposed on a number of points of
view as follows:
- Marketing strategy is built to manage and operate construction enterprises in a more
efficient way, helping the development of enterprises to be sustainable, consistent with
each period of operation and ensure inheritance and long-term development, long and
stable construction enterprises.
- The objective of the marketing strategy is primarily to optimize profitability, ensure
stable development, create power and improve competitiveness for construction
enterprises.
- Measures to manage business operations in general need to be associated with the
marketing strategy of enterprises, appreciate the role and position of marketing strategies
in business activities of construction enterprises.
- The foundation to apply the marketing strategy framework of construction
enterprises is: to ensure a suitable and stable legal corridor for development enterprises;
construction market and real estate business ensure fair competition and increasingly
expanded especially in international markets; competitive environment of construction
enterprises.
With these points of view, the marketing strategy framework of construction
enterprises becomes a very important base to help construction enterprises managers
overcome weaknesses in research and implementation of marketing measures of

specific research contents of these marketing strategy frameworks are detailed by the
author in the following sections.
4.3.2 Strategic marketing strategies for construction contracting enterprises
4.3.2.1Set up goals of marketing strategies
Specific goals such as the expected profit level, the rate of return on the completed
construction value, the number and value of signed construction contracts, making a
difference in exam technology construction works, improving the quality of construction
works, ensuring jobs for employees in the enterprise, maintaining and improving
relationships with investors, subcontractors and suppliers…
4.3.2.2Analyze, predict and SWOT analysis for construction enterprises

The content in this step needs to study the specific characteristics of
construction activities: characteristics of the construction project itself,
characteristics of construction bidding activities, negotiation to sign construction
contracts between the winning bidder and the investor, signing a contract between
the general contractor and subcontractors and suppliers ... to serve as a basis for
analyzing and forecasting the market and determining the strong and weak points
of the enterprise.
The SWOT analysis is essentially a combination of data analysis on the status of
business operations, the status of marketing activities, the impact of marketing and
market environment on strategy formulation. The SWOT analysis of large-scale
construction enterprises needs to clarify the following contents: Determine the strengths
and weaknesses of construction enterprises; Identify opportunities and challenges for
businesses
4.3.2.3Stage market segments and select target markets for construction enterprises
The segmentation and market selection should be based on the above SWOT analysis
as a basis for selecting target markets. When conducting market segmentation, enterprises
building construction activities need to give some criteria to segment market. Based on
the market segmentation, business managers need to select the target market in
accordance with the conditions of enterprises and the general context of markets.