ĐẠI HỌC QUỐC GIA HÀ NỘI
TRƯỜNG ĐẠI HỌC KINH TẾ

ĐỖ VIẾT DƯƠNG

ORGANIZING MARKETING ACTIVITIES FOR
VIETNAMESE-OWNED AUTOMOBILE ASSEMBLERS IN THE
PRESENT DEVELOPMENT PROCESS OF VIETNAMESE
ECONOMY

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. Nguyễn Ngọc Anh
Th.S Nguyễn Việt Anh

Hà Nội – 2007


ĐẠI HỌC QUỐC GIA HÀ NỘI
TRƯỜNG ĐẠI HỌC KINH TẾ

ĐỖ VIẾT DƯƠNG

ORGANIZING MARKETING ACTIVITIES FOR
VIETNAMESE-OWNED AUTOMOBILE ASSEMBLERS IN THE
PRESENT DEVELOPMENT PROCESS OF VIETNAMESE
ECONOMY
Chuyên ngành:

Quản trị kinh doanh


1.2.2. Integrated factors for successful marketing of VAAs ......................14
1.2.3. Creating value, satisfaction, conserving customer in VAAs ..........14
1.3. Ascertaining the marketing activities contents for VAAs ..................22
1.3.1. Models and marketing management contents for VAAs in
currently market..............................................................................................22
1.3.2. The necessary and principles to evaluate the rational organizing
marketing activities in VAAs ........................................................................34
Conclusion: .........................................................................................................35

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Chapter 2 : Current status of organizing marketing activities of
automobile assemblers in Vietnam ......................................................... 36
2.1. The development process of Vietnamese automobile industry........36
2.1.1. Introduction ...........................................................................................36
2.1.2. Characteristics .......................................................................................38
2.1.3. Vietnam Automobile Manufacturers Association (VAMA) ...........38
2.2. Market status review ..................................................................................40
2.2.1. Automobile market analysis ...............................................................40
2.3. Current status of organizing marketing activities of local
automobile assemblers in Vietnam ...............................................................46
2.3.1. Marketing in Vietnam and Marketing in automobile industry .....46
2.3.2. Appraising the marketing activities of FAAs ...................................47
2.3.3. Appraising the marketing activities of VAAs ...................................62
Conclusion ..........................................................................................................71

Chapter 3: Solutions for improving marketing activities in VAAs ... 72
3.1.1. The changes in Macro-Environment and opportunities, challenges
for local Vietnam automobile assemblers. ..................................................72

Abbreviation & Acronyms

AFTA

: ASEAN Free Trade Area

ASEAN

: Association of Southeast Asian nations

CBU

: Complete Built-Up

CEPT

: Common Effective Preferential Tariff

CKD

: Complete Knock Down

FAAs

: Foreign – Owned Automobile Assemblers

FPT

: FPT Corporation


: Special Consumption Tax

SOEs

: State-Owned Enterprises

TVC

: Television Commerce

USA

: United States of America

VAAs

: Vietnamese-Owned Automobile Assemblers

VAMA

: Vietnam Automobile manufacturers’ Association

VAT

: Value Added Tax

VNPT

: Vietnam Posts and Telecommunications Corporation


3.4. Segment by models………………………………………………...……….88

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List of Figures
Chapter 1
Figure:
1.1. Steps of building plan according to non-marketing orientation………10
1.2. The building process of plan according to marketing orientation.…....11
1.3. Customer’s satisfaction, customer loyalty, value added for customer.15
1.4. Porter's Generic Value Chain………………………………….………......17
1.5. The Value System…………………………………………………………...21
1.6. SWOT analysis fits into a strategic situation analysis……………......24
1.7. Steps in segmentation process, market positioning………………..…...25
1.8. Marketing mix and target marke…………..………………………..….....27

Chapter 2
Figure:
2.1. Sales of automobile volume by years .......................................................42
2.2 . Sales record by months up to October, 2005.............................................42
2.3. Market share in 2005 and 2006 ………………………………..………......43
2.4. Perceived quality of automotive brands …………………………..…….50
2.5. Customer’s opinion of service satisfaction ………………………....…...50
2.6. Price competitive advantage………………..……………………………..53

Chapter 3
Figure:
3.1. Forecasting the automobile market demand in period 2005-2010..…....77
3.2. SWOT analysis model……..…………………………………………..…...85

few protectionist policies can be implemented.
Thus the scope of thesis I would like to study and propose some new

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model of organizing marketing activities for VAAs in currently and for next
period. To build Vietnamese brand name and gain more and more in sale
and market share and become the big automobile corporation in Vietnam.
2. Objective of the research
To systematize the basis marketing theory in automobile industry,
research and establish the basis contents of marketing activities for VAAs
now, figure out the role of marketing activities in auto development process
in current Vietnamese automotive market.
To quantitative the result of marketing activities of FAAs and VAAs
achievements, and identify the successes, weaknesses and find the main
reasons to improving.
And then, suggest applied solutions to improving the organizing
strategic marketing for Vietnamese automotive industry up to 2010 and
overview 2020, together submit some requests to government to create favor
environment for these model developing.
3. Key research area
- Object of study: The organizing marketing activities in automobile
industry in generally, and especially in member of VAMA. The main
contents are including organizing the marketing activities and organizing
marketing resources of above object.
- Research area: Automobile assemblers in Hanoi area limited.
4. Methodology
The methodology gives us the guidelines for how we should gather
information for our research and work with it.


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must focus on marketing activities for next period.
- A comprehensive realize of role, position, function of marketing in
automobile industry, clarify the natural of objective environment factors
impact to marketing activities, thence ascertain the basis request for a
marketing program to premises for applying in VAAs.
- Establishing the detail content and implemented model of
marketing activities in order to the development trend of automobile
industry in the near future. Also, systematize and develop the theory of
marketing in VAAs in Vietnam now.
6. Thesis structure
Beside introduction and conclusion, the thesis consists 3 chapters:
Chapter1: Literature review is given to providing theories relevant for
automobile marketing activities area.
Chapter 2: Current status of organizing marketing activities in FAAs
& VAAs
Chapter 3: Solutions for improving marketing activities in VAAs
Introduction

Chapter 1
Literature Review
Chapter 2
Current automotive
industry
Chapter 3
Solutions for Improving


organizational objectives.
1.1.2. Fundamental concepts
1.1.2.1. Concept and differentiation between demand and expectation
The difference between “demand” and “expectation” is always
getting more attention of marketing in the automobile industry. In the facts,
what are the customers want maybe it is not their need. Demand is defined
that “the deficient impression for something but we are can feeling” and
demand are wants for specific products backed by an ability to pay and it
can be satisfied by marketing activities system of automobile manufacturers.
Expectation is defined that “wish for or aspiration for something”.

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1.1.2.2. Market demand
Demands, expectation we have just defined above were make clearly
about products, services to satisfy those demands and expectation. So
market demand is the attraction, attention, buying, using or consumption
for products or services that will satisfy the expectation and market
demands.
1.1.2.3. Determine customer and customer satisfaction
Whether the buyer is satisfied after purchase depends on the offer’s
performances in relation to the buyer’s expectations. In general, satisfaction
is a person’s feeling of pleasure or disappointment resulting from
comparing a product’s perceived performance in relation to his or her
expectations.
1.1.2.4. Exchange and transactions
Exchange: This is the core concept of marketing, “is the process of
obtaining a desired product from someone by offering something in return”.
The concept of exchange is including some conditions potential to exist, and

the case of famous auto company: Ford Motor Corporation, the second
biggest auto manufacturer in the world.
Ford Motor Corporation, headquarter office in Detroit, chief city of
US automobile manufacturing industry, and it has been produced
automobile since eighteen century. At that time, the most important
objective of company is the producing automobile with high quality. So that
the revenue they have and customer habit they get depend on the quality of
automobile which Ford was produced.

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That status also happened with other famous auto manufacturers in
the world. They have just only focused on producing cars with quality but
have not understand what are their customers wants or expects for their
products and desires for their support service.
1.1.3.2. Sales oriented period.
As other traditional enterprises, production oriented period well
operated until the end of eighteen century, early of 19th century. But in the
1920s, car was becoming indispensable of the life in the developed countries.
At that time, customers were more flexible, more active, and market was not
focus as before. Thus, for almost company, they changed strategy by
organized or hired big mobile sales teams. Competition is expressed by
capability of building mobile sales teams. And auto manufacturers were not
exceptionable, such as: Ford had been changed their strategy by building
mobile sales teams and in whole US and expending their showroom system.
1.1.3.3. Marketing period.
Marketing oriented period beginning after World War II, in the en of
1940s, many companies recognized that they were the technology
development epoch and have been started with restructuring their economy

factors:
-

Customer oriented: understanding and thoughtful of target
customers for providing surpassing service for customer

-

Competition oriented: define the competitors (Current and
potential) and analysis their strengths, weaknesses and strategy.

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-

Diagonal function integrated: integrating and promoting resources
of company focus on creating the value for customer.

-

Strategic management oriented: finding solution for promoting
value by right investment and suitable.

-

Profit: having revenue enough to compensate for long -run
expense and satisfy stockholders

-

the firm can not know that strategy is favored by customers or not?
1.1.4.2. Marketing orientation
The building plan process according to marketing orientation
completely differentiated with non-marketing orientation as described in
follow model 1.2:
Figure 1.2: The building process of plan according to marketing
orientation

Identify Mission and objective
Define requests for advanced different
Evaluate market demand
Building strategy
Test
Implementation
Marketing

The first step of both models are the same, for every company must
define the clearly their mission and objective. The differentiation appears
from second step, when the market demand is evaluated as the factor effect

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to activities of company: what model of car is favored by customer currently,
what service is now successful, and how many potential customers in the
future?
1.2. Environmental marketing of VAAs in the market economic conditions
1.2.1. Macro-Environment factors
As however, every marketing strategy has impacted by macroenvironment factors, they are mainly including: political and policy,
economic, social, technological, and competitiveness factors. In basically,

 Impact on value chain structure
 Rate of technological diffusion
1.2.1.4. Economical factors
Those factors are GDP per person, financial conditions, interest rate
inflation rate, growth rate, labor cost, infrastructure quality< can effect to
investment decision of company.
1.2.1.5. Competitiveness factors
Competitiveness factors are always can not control in every
marketing plan, and marketing plan is built base on these factors exist in the
market
The number of macro-environmental factors is virtually unlimited. In
practice, the firm must prioritize and monitor those factors that influence its
industry. Even so, it may be difficult to forecast future trends with an
acceptable level of accuracy. In this regard, the firm may turn to scenario
planning techniques to deal with high levels of uncertainty in important
macro-environmental variables.

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1.2.2. Integrated factors for successful marketing of VAAs
To organizing successful marketing activities in the market, we must define
very clear the integrated factors for marketing in the new market or current
period, there are many automakers. There are four integrated factors for
successful marketing of VAAs and described as follow:
- Pressure form market oriented: the first factors that company get
pressure is market oriented, so that every automaker must unity in a
marketing program to get more efficiently. In there, not only senior
management but also every member in company must thoughtfully and
meet the market demand. Every objectives of each department must engage

Customer loyalty

Customer’s satisfaction
- Providing the
products/services that
customer expect

- Conserving customer
- Customer suppose the
solution for improving
products or services

- Operating more efficiently
than competitors
- Create new value, unique
for customer

- Feedback of customer

1.2.3.1. Customer’s satisfaction
Whether the buyer is satisfied after purchase depends on the offer’s
performance in relation to the buyer’s expectations. In general, satisfaction
is a person’s feeling of pleasure or disappointment resulting from
comparing a product’s perceived performance (or outcome) in relation to his
or her expectations. If the performance falls short of expectations, the
customer is dissatisfied. If the performance matches the expectations, the
customer is satisfied. If the performance exceeds expectations, the customer
is highly satisfied or delighted. Most of automakers provided the basis
satisfaction for customer and they will increase the satisfaction for customer
in yearly.

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we can call model value chain. Michael Porter of Harvard proposed the
value chain as a tool for identifying ways to create more customer value
including the same activities in most of business organization. He divided
activities of business organization into two kinds: primary activities and
support activities and described as follow figure:

Support Activities

Figure 1.4: Porter's Generic Value Chain
Firm Infrastructure

Technology Development
Procurement

Inbound
Logistics Operations

Outbound Marketing
&
Logistics
Sales

Services

M
AR
GI


Marketing & Sales: the identification of customer needs and the
generation of sales.

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