Dissertation

Direct marketing and its application in Vietnam

Table of Content

List of Figures 2

List of Tables 4

Chapter 1. Introduction .................................................................................................................. 5

1.1 Research Motivation .................................................................................................... 5

1.2 Research Aim and Obhectives ..................................................................................... 6

1.3 Research Approach ...................................................................................................... 6

1.4 Research Significance .................................................................................................. 7

1.5 Research Structure ....................................................................................................... 8

Chapter 2. Literature Review......................................................................................................... 9

2.1 Overview of direct marketing ...................................................................................... 9

2.2 History and development of direct marketing ........................................................... 12

2.3 Advantages and disadvantages of direct marketing ................................................... 15

Chapter 3. Research Methodology .............................................................................................. 21

3.1 Research Strategy....................................................................................................... 21

3.2 Research Design ......................................................................................................... 22

3.3 Data Collection Methods ........................................................................................... 24

3.3.1 Qualitative Methods ..................................................................................................... 25

3.3.2 Quantitative Methods ................................................................................................... 26

3.4 Validity and Trustworthiness ..................................................................................... 27

3.5 Limitations ................................................................................................................. 28

Chapter 4. Results and Discussion .............................................................................................. 29

4.1 Purchasing behavior and habit of Vietnamese ....................................................... 29

4.1.1 Familiar shops .............................................................................................................. 29

4.1.2 Product information sources ........................................................................................ 29

4.1.3 Satisfaction with the current purchasing method ......................................................... 30

4.2 Company perspective ................................................................................................. 31

4.2.1 Vietnamese firms’ awareness of direct marketing ....................................................... 31

4.2.2 The situation of direct marketing application in Vietnam ........................................... 32

4.2.3 Status of building customer database ........................................................................... 35

4.2.4 Direct marketing tools being used ............................................................................... 37

4.2.5 Assessment on effectiveness of direct marketing ........................................................ 42

4.3 Firm’s capability to apply and develop direct marketing .......................................... 45

4.3.1 Vietnamese customer’s evaluation on direct marketing .............................................. 45

4.4 Summary .................................................................................................................... 50

Chapter 5. Conclusion and Discussion ........................................................................................ 52

Reference 56

List of Figures

Figure 3-1 Characteristics of a Research ............................................................................. 19

Figure 3-1 Familiar shop ..................................................................................................... 27

Figure 3-2 Customer satisfaction level ............................................................................... 28

Figure 3-3 Aprocess of applying direct marketing in Vietnam........................................... 32

Figure 3-4 Level of participation ........................................................................................ 34

Figure 3-5 Frequency of database updates .......................................................................... 34

Figure 3-6 Rate of using internet matrketing ...................................................................... 36

Figure 3-7 Benefits of internet marketing ........................................................................... 38

Figure 3-8 Disadvanatges of telemarketing ........................................................................ 39

Figure 3-9 Disadvanatges of mass media marketing .......................................................... 39

Figure 3-10 Challenges of internet marketing .................................................................... 40

Figure 3-11 Advantages purchases via direct marketing .................................................... 45

Figure 3-12 Disadvantages purchases via direct marketing ................................................ 46

List of Tables

Table 3-1 Understanding of direct marketing in specific expression ................................. 30

Table 3-2 Awareness of direct marketing ........................................................................... 30

Table 3-3 Level of direct marketing application ................................................................. 31

Table 3-4 Direct marketing tools used by firms ...................................................................... 32

Table 3-5 Ways to collect customer information for database ........................................... 34

Table 3-6 Ratio of firms are aware of direct marketing’s advantages ................................ 37

Table 3-7 Assessing the effective of database use .................................................................... 41

Table 3-8 Effectiveness of telemarketing ........................................................................... 42

Table 3-9 Effects of using advertising T.V with mechanism to receive information ................. 42

Table 3-10 Effects of using internet .................................................................................... 43

Table 3-11 Need to apply direct marketing......................................................................... 44

Table 3-12 Cross analysis: experiences and attitude with direct marketing ....................... 45

Table 3-13 Obstacles in responding to direct marketing programmes ............................... 47

Table 3-14 Number of people intends to purchase through direct marketing ..................... 48

Chapter 1. Introduction

1.1 Research Motivation

Vietnam has approached the market economy for more than 20 years, not a long time but

not too short for firms to apply management methods of the market mechanism (Leung

2010). Tierney (2013) indicated that marketing and marketing management have always been

seen as one of the important business philosophy to help businesses achieve success in the

long term. However, it is essential to consider applying the theory for most of Vietnam’s

firms. In-depth study and application of different facets of marketing need to have universal

orthodox ideology and marketing updates with the right nature. The application of marketing

today in fact is greatly affected by factors such as globalization, technology, techniques,

products and approaches to customers (Kotler, 2009; Czinkota, 2012). The new trend of

marketing application has been widely created by changes of business environment, customer

behaviour as well as the development of business forms on the increasingly wide and diverse

world, which is direct marketing. Direct marketing has basically changed competition forms

in a global business environment full of changes.

In the market economy, when competition is getting fierce, firms do not want to waste

resources for “marketing towards everyone” investment. Responses are expected to be able to

sense from customers for marketing efforts of the firm and thereby efforts can be measured.

Consequently, direct marketing with the advantages of meeting the expectations is considered

the efficient tool for firms, especially during the period of international economic integration.

Direct marketing is a new form of marketing to Vietnam firms but not new to the world.

Furthermore, there has been no general work and summary of this subject matter

systematically. That is also the reason why application of direct marketing in Vietnam has not

been appreciated and has not assisted firms to perform as expected. How to apply direct

marketing effectively in order to improve competitiveness of Vietnam firms in the market

economy is the question needs answer and “direct marketing and its application in Vietnam”

is the issue selected to be the topic for the dissertation.

1.2 Research Aim and Obhectives

This research is conducted to serve the following objectives:

To clarify definition, nature and application conditions of direct marketing; to

identify pros and cons of direct marketing;

To study tools to be used in direct marketing;

Identify advantages and disadvantages in applying direct marketing in business

activities in Vietnam;

Propose solutions to support and encourage Vietnamese enterprises to apply direct

marketing in order to gain their competitiveness in the context of international

economic integration

1.3 Research Approach

To conduct this topic, many different methodologies are used such as desk research,

survey, meta-analysis, and expert interview etc with dialectical materialism approach. Desk

research is used in collecting primary data. The domestic and foreign data on theories and

application of direct marketing collected, translated and summed up in order to give a

theoretical framework relatively complete about direct marketing as well as the necessary

condition for this marketing type to be applied in business.

A lot of primary data, theories on direct marketing are collected from various sources such

as books, magazines, and internet. Actual state of direct marketing application worldwide and

in Vietnam in research has been on studies such as Emerate, Proquest or Lexis Nexis etc and

been also exploited to have an overview of the direct marketing theory and the actual

application of direct marketing worldwide. It can be confirmed that knowledge from this

dissertation is collected from many sources all over the world.

Stemming from the idea that marketing can change the status of the needs, analysis from

macro to micro, from theory to fact is done to confirm the birth and the development of

marketing as inevitable trend. Primary data on actual state of direct marketing application is

collected at some firms in Vietnam: awareness, attitude, investment, and direct marketing

tools used. The performance assessment of direct marketing tools and the intention to use

direct marketing in the future are also exploited. In addition, a small study is also conducted

to explore the abilities of Vietnamese customers with direct marketing forms used by firms;

then it is expected to clarify conditions for Vietnamese consumers to accept this marketing

form.

The research methodology at field with the questionnaire is done. Three objects above are

approached by three different questionnaires. Questionnaires and specific research results are

presented in appendix. The primary data is collected and processed by computer, SPSS

software.

1.4 Research Significance

Studying a very new topic, it is hoped that the thesis will contribute theoretical and

practical value, enriching knowledge and experiences of marketing application in the rich

marketing tools, in the great business environment in the era of technology and globalization

today. Specifically as follows:

Clarifying the concept of direct marketing by which theories and background of

direct marketing application are systemized: pros, cons, objective and subjective

background of the application of direct marketing, tools and processes for direct

marketing.

The direct marketing models in several countries in two regions are summed up:

developed countries such as the United States, Europe; and developing countries

that have similar economic conditions with Vietnam like Thailand, China and

Malaysia.

A comprehensive picture of the current state of direct marketing application in

Vietnam is introduced; advantages and disadvantages of using direct marketing

which is very powerful in Vietnam. That is the key argument for firms and

management agencies to have accurate and efficient decisions when considering

direct marketing application in doing business in Vietnam.

Identifying issues needed to solve, the ability of application and development of

this tool in Vietnam has been evaluated and solutions are recommended for the

application to perform well in Vietnam, reflecting the absorption and perception of

Vietnam’s firms for modern marketing methods.

Through the research, it is hoped that the awareness of firms doing business in

Vietnam market is assessed the most broadly in the role and the ability to apply

direct marketing here. Several solutions and recommendations are proposed to

promote direct marketing application in business in Vietnam, reducing cost,

increasing competitiveness of Vietnam’s firms on the domestic as well as the

international market under the increasingly fierce pressure of the shared “one

world”. The thesis is performed with the hope to answer to those who doubt of the

ability to apply direct marketing in Vietnam market in particular and for the world

in general.

1.5 Research Structure

Apart from introduction, reference, appendix, the thesis comprises three main chapters as

following:

Chapter 2: Literature review on theoretical and empirical studies related to direct

marketing

Chapter 3: Methodologies used in order to achieve the study purpose

Chapter 4: Main results and discussion on the direct marketing and its adoption in

Vietnam

Chapter 5: Conclusion observed throughout the study as well as basic solutions to

foster application of direct marketing in Vietnam

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