The Marketing Strategy of a multinational join stock company
INTRODUCTION
Nowadays, marketing is obviously a more and more vital in the successes of every
enterprise. However, not many of the companies in Vietnam have paid adequate attention
to marketing activities, especially when both domestic and global competition is getting
fiercer and fiercer.
Being one of the companies specializing in selling air conditioners, a multinational join
stock company has achieved certain success in this field. Its sales of air conditioners have
increased over the years since its establishment. However, the company sales growth of
air conditioners has been modest in comparison with other competitors’. The reason for
this partly lies in its marketing. After taking a close look at a multinational join stock
company’s performance, I decide to choose “Marketing strategies of a multinational
join stock company” as the topic for my field study report with a view to examining a
multinational join stock company’s marketing strategy and making some
recommendations to improve it.
A multinational join stock company has a lot of business activities, but because of limited
time, this report focuses only on the company’s marketing activities for one line of its
business, that is air conditioners, on the market in Vietnam.
Apart from the introduction and conclusion, the report is divided into 3 chapters as
follows:
Chapter 1: Theoretical Framework
Chapter 2: The marketing Strategy of a multinational join stock company
Chapter 3: Some Recommendations to Improve a multinational join stock
company s Marketing Strategy.’
Le Kim Hong Tu _ 5D
The Marketing Strategy of a multinational join stock company
Chapter 1:
Theoretical Framework
1.1.1. The concept of marketing
1.1.2. The definition of marketing
Today’s central problem facing business is not a shortage of goods but a shortage of

The writer of the book “The Silk Road to International
Marketing” had another definition as follow: “Marketing is the process by which
decisions are made in a totally interrelated changing business environment on all the
activities that facilitate exchange in order that the targeted group of customers is satisfies
and the defined objectives accomplished ”
3
.
Though there are many definitions, a central
part of any definitions of marketing is the exchange process – the process of giving
something of value in return for something of value. Or in other words, it’s the process of
transferring between two or more parties of tangible or intangible items of value.
Cash, debt, time, votes, behavior, etc
Health, safety, comfort, transportation, beauty, productivity, etc.
Figure 1.1: the exchange process.
For marketing to occur, at least four factors are required: (1) two or more parties with
unmet needs, (2) a desire and ability to satisfy them, (3) communication between the
parties, and (4) something to exchange. Here’s what Berkowitz stated in his book
“Marketing”. As marketing is a kind of exchange, certain conditions must exist before the
exchange can occur.
1.1.3. The goals of marketing.
“Today’s successful companies at all levels have one thing in common; their success is
founded upon a strong customer focus and heavy commitment to marketing”. They
motivate everyone in the organization to deliver high quality and superior value for their
customers, leading to high levels of customer satisfaction. These organizations know that
Le Kim Hong Tu _ 5D
Marketer
Goods, Services,
ideas,
People and Places
Customers

is, the same or similar brand names, advertising. And so on in different countries.
Le Kim Hong Tu _ 5D
The Marketing Strategy of a multinational join stock company
Although most of the multinational companies using global marketing mix-product,
pricing, promotion and place – are standardized. Business can make some elements of
marketing more global and others less so. Accordingly, possible adaptations that firms
might apply to their product, promotion, price, and place when they enter through the
foreign markets will be provided in this part.
1.3.1. Product
There are five international product and promotion strategies for a company to extend its
market base into other geographic markets (See table 1.1).
Straight extension means marketing the product in the foreign without any adaptation.
Top manager asks its marketing people to “find customers for the product as it is”. As a
result, it is seen as easiest product marketing strategy and may be the most profitable one
as well. However, the company should first determine whether foreign consumers use that
product or not. Straight extension has been successful with cameras consumer electronics,
and many machine tools. This strategy is tempting because it involves no additional
product development cost, manufacturing changes, or promotional modification. But it
can be costly in the long run if products fail to satisfy foreign consumers.
Product
Promotion
Do not change
product
Adapt product Develop new
product
Do not change
promotion
Straight extension Product adaptation
Adapt promotion Communication
adaptation

another strategy is dual adaptation. It is changing both the product and the
communication to face local differences.
1.3.3. Price
Global companies face several problems in setting their international prices. Those
problems must deal with price escalation, transfer prices, dumping charges, and black
markets.
Price escalation problem occurs when companies sell their goods abroad. The foreign
prices probably will be higher than their domestic ones because it must add the cost of
transportation, tariffs, importer margin, wholesaler margin, and retailer margin.
Depending on these added costs, the product may have to sold for two or five times as
Le Kim Hong Tu _ 5D
The Marketing Strategy of a multinational join stock company
much as another country to generate the same profit. Since cost escalation varies from
country, companies have three price setting approaches in different countries.
Setting a uniform price everywhere: charging the same price everywhere in the world. By
this method, companies would earn quite different price in different countries because of
varying escalation costs. Also, this strategy would result in too high price in poor
countries and not high enough in rich countries.
Setting a market-based price in each country: charging what each country could effort.
But this strategy ignores differences in the actual costs from country to country. In
addition, it could lead to a situation in which intermediaries in low-price countries reship
to high-price countries. Setting a cost-based price in each country: using a standard
marketing of its costs everywhere. But this strategy might price out of the market in
countries where it costs are high.
Another problem arises when a company sets a transfer price(i.e. the price that it charges
to another unit in the company) for goods that it ships to its foreign subsidies. If company
charges too high a price to a subsidiary, it may and up paying higher tariff duties, even
while paying lower income taxes in that country. If company charges its subsidiary too
little, it can be charged with dumping. Dumping occurs when a company charges either
less than it costs or less than it charges in its home market, in order to enter or win a

intermediaries (agents, trading companies) that will be used, the type of transportation
(air, sea) and the financing and risk arrangements. The third link, channels within foreign
nations, moves the products from their foreign entry point to final consumers.
Channels of distribution within countries vary greatly from nation to nation first, there are
large differences in the numbers and types of intermediaries serving each foreign market.
Long channels of distribution means that the consumer’s price ends up double or triple
the importer’s price. Another difference lies in the size and character of retail units
abroad. Breaking bulk remains an important function of intermediaries and helps
perpetuate the long channels of distribution, which is a major abstaining to the expansion
of large-scale retailing in developing countries.
1.4. The marketing mix strategies
Philip Kotler, in his book “Principles of Marketing”; defines marketing mix as “the set of
controllable tactical marketing tools – product, price, place and promotion – that the
firm blends to produce the response it wants in the target market”. These ingredients must
be manipulated in a manner which ensures targeted customers are satisfied, marketing
strategies are implemented and desired brand positioning is achieved.
Le Kim Hong Tu _ 5D
The Marketing Strategy of a multinational join stock company
Figure 1.2: whole-channel concept for international marketing.
Le Kim Hong Tu _ 5D
Seller’s international
Marketing
headquarters
Seller
Channels between
nations
Channel within foreign
nations
Ultimate buyers
The Marketing Strategy of a multinational join stock company

2.1.3. Company s Organization’
2.1.4. Board of Directors
A multinational join stock company’s Board of Directors includes a Director General and
2 Deputy Directors General.
Director General: Leading the company’s board of management is the Director General
who is responsible for managing the use of capital, human and other resources.
Two Deputy Directors General: These people provide assistance to the Director General.
They would sometimes act on behalf of the Director General in his absence. One of them
Le Kim Hong Tu _ 5D
Board of Directors
Deputy General
Director
General Director
Deputy General
Director
Quality
Acceptance
Department
Technical
Department
Trading
Department
Financial &
Accounting
Department
Planning
Department