AN INVESTIGATION INTO THE MARKETING DEPARTMENT AND SOME SOLUTIONS TO IMPROVING MARKETING STRATEGY FOR TOURISM SERVICES OF THE SANNA JOINT STOCK COMPANY

MINISTRY OF EDUCATION AND TRAINING
DUY TAN UNIVERSITY
FACULTY OF ENGLISH

GRADUATION THESIS
HUYNH TRAN NHU LY

AN INVESTIGATION INTO THE MARKETING
DEPARTMENT AND SOME SOLUTIONS TO
IMPROVING MARKETING STRATEGY FOR
TOURISM SERVICES OF THE SANNA JOINT
STOCK COMPANY

GRADUATION THESIS IN SOCIAL SCIENCES AND HUMANITIES

DA NANG – May 2021


MINISTRY OF EDUCATION AND TRAINING
DUY TAN UNIVERSITY
FACULTY OF ENGLISH

GRADUATION THESIS
HUYNH TRAN NHU LY

AN INVESTIGATION INTO THE MARKETING
DEPARTMENT AND SOME SOLUTIONS TO
IMPROVING MARKETING STRATEGY FOR
TOURISM SERVICES OF THE SANNA JOINT
STOCK COMPANY
Major

: English for Tourism

Code

: 702
Supervisor: DOAN THI DIEU LAN, M.A.

DA NANG – May 2021


GRADUATION THESIS

1

Supervisor: Doan Thi Dieu Lan, M.A.

ACKNOWLEDGEMENT

After the last internship period, I have learned how to successfully negotiate
and interact with many people throughout the working day. I am better equipped to
handle whatever challenges come my way. That is the reason why I would like to
express my sincere gratitude to Duy Tan University and Faculty of English first for
arranging and creating the condition for me to join in an early internship that begins
from 20th of January to 17th of March 2021. Besides, I like to genuinely thank Mrs.
Doan Thi Dieu Lan - my supervisor for not only giving me comments on how to
handle problems but also answering all my questions about my internship.
Secondly, I would like to send my thanks to Sanna Tour Joint Stock Company
for giving me an opportunity to put my knowledge into practice, gaining practical
experience and geting valuable experience while working in the tourism industry.

Especially, Ms. Nguyen Thuy Ngoc Sang - Director of Sanna Tour Joint Stock
Company guided me through my internship process with advice, tips, feedbacks and
shared useful experience despite her busy work.
Thirdly, I could not have achieved great success without my colleagues
support and help. They are amazing co-workers, I have had a lots of fun along the
internship time and I will never forget all the things they have done for me as well.
Last but not least, I truly thank to my friends and especially my family who
caring and supporting me wholeheartedly. The role they have played in my life is
immeasurable. I could not overcome many difficulties without their support.
I am grateful to all of you. I wish all of you good health and success.
Yours sincerely,
Student
Huynh Tran Nhu Ly

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

2

Supervisor: Doan Thi Dieu Lan, M.A.

STATEMENT OF AUTHORSHIP
I certify that except where reference is made in the text of the thesis, this thesis
contains no material published elsewhere or extracted in the whole or in part from a
thesis by which have qualified for or been awarded another degree or diploma.
No other person’s work has been used without due acknowledgement in the
thesis.
This thesis has not been submitted for award of any degree or diploma in any

other tertiary institution.

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

3

Supervisor: Doan Thi Dieu Lan, M.A.

ABSTRACT
This graduation paper focused on the real situation of Sanna Tour Company. It
is an analysis of the strengths and weaknesses of the Marketing Department and
some policy marketing at the Company. In my paper, I give some tables of the
number of guests as well as the business of Sanna Tour Company to make more
clear. Through discussing these problems, I will provide some suggestions to
improve the marketing strategy for tourism services at Sanna Tour Joint Stock
Company

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

4

Supervisor: Doan Thi Dieu Lan, M.A.

TABLE AND FIGURES DIAGRAM

Picture
Picture 1:Logo of Joint Stock Company Sanna Tour...............................................19
Picture 2: Field trip, learn the tourism market in Da Nang......................................20
Picture 3: Field trip, learn the tourism market in Da Nang......................................21
Table
Table 3.1: Staff structure of employees at Sanna Tour Joint Stock Company..........25
Table 3.2: Information on domestic and foreign package tour services...................26
Table 3.3: Present facilities at the Company...........................................................32
Table 4.1 : Business results of the company in 2017 – 2019...................................33
Table 4.3: Business results of each service of Sanna Tour Joint Stock Company in
2017-2019...............................................................................................................35
Table 4.4. Tour price is for group guests with a quantity of 30 people or more.......37
Table 4.5 :Compare tour prices between high season and low season.....................38
Table 4. 6: Customer evaluation of the Marketing department at Sanna Tour Joint
Stock Company.......................................................................................................39
Table 4.7: Evaluation of service quality of Sanna Tour Joint Stock.........................40
Diagram
Diagram 3.1: Diagram of Sanna Tour Joint Stock Company...................................22
Diagram 3.2: Diagram of marketing development above product...........................29
Diagram 3.3: Diagram of Marketing Department....................................................31

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

5

Supervisor: Doan Thi Dieu Lan, M.A.

TABLE OF CONTENTS
ACKNOWLEDGEMENT.......................................................................................i
STATEMENT OF AUTHORSHIP.........................................................................ii
ABSTRACT............................................................................................................iii
TABLE AND FIGURES DIAGRAM....................................................................iv
CHAPTER 1: INTRODUCTION..........................................................................1
1 Rationale...............................................................................................................1
2. Aims and Objectives............................................................................................2
3. Scope of the Study...............................................................................................2
4. Method of the study.............................................................................................2
5. Organization of the Study...................................................................................3
CHAPTER 2: THEORETICAL BACKGROUND...............................................4
2.1 Tourism............................................................................................................... 4
2.1.1 Definitions of Tourism.....................................................................................4
2.1.2 Classification of the Type of Tourism..............................................................5
2.1.2.1 Classified according to purpose of the Trip...................................................5
2.1.2.2 Classified according to Geographical Features of the Destinations..............5
2.2 Tourists...............................................................................................................6
2.2.1 Definitions of Tourists.....................................................................................6
2.2.2 Types of Tourists..............................................................................................6
2.2.2.1 Domestic Tourists..........................................................................................6
2.2.2.2 International Tourists....................................................................................6
2.3 Some concepts of Marketing and Marketing Tourism....................................6
2.3.1 Definition of Marketing...................................................................................6
2.3.2 Definition of Marketing in Tourism................................................................7
2.4 Factors affecting marketing activities in tourism business.............................8
2.4.1 Macro environment.........................................................................................8
2.4.2 Internal environment.......................................................................................9
2.4.3 The company's internal environment............................................................10

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

6

Supervisor: Doan Thi Dieu Lan, M.A.

2.5 Tourism marketing policy...............................................................................10
2.5.1 Product Policy................................................................................................11
2.5.2 Price policy.....................................................................................................14
2.5.3 Distribution policy.........................................................................................14
2.5.4 Mixed promotion policy.................................................................................16
CHAPTER 3: CASE DESCRIPTION.................................................................19
3.1 General information about Sanna Tour Joint Stock Company....................19
3.1.1 Overview of Sanna Tour Joint Stock Company............................................19
3.1.2 History formation of Sanna Tour Joint Stock Company..............................21
3.1.3 Organization chart of Sanna Tour Joint Stock Company............................22
3.1.3.1 Organizational structure..............................................................................22
3.1.3.2 Functions of each department......................................................................23
3.1.3.3 Personnel structure at the company.............................................................25
3.2 Service at the company....................................................................................26
3.3 Marketing Department...................................................................................28
3.3.1 Functions and duties of the department........................................................28
3.3.2 Structure of Marketing Department..............................................................31
CHAPTER 4: ANALYSIS AND EVALUATIONS..............................................33
4.1 Business results of the company in 2017 – 2019...........................................33
4.2 Statistical results of the number of visitors at Sanna Tour Joint Stock
Company................................................................................................................34

4.2.1 The tourism exploitation situation................................................................34
4.2.2 Quality of products and services is marketed through the use of customer
services.................................................................................................................... 35
4.3 Analysis price policy of Sanna Tour Joint Stock Company.........................36
4.4 Analyze and evaluate the results of customer surveys who have used the
service at Sanna Tour Joint Stock Company.......................................................38
4.5 Evaluate comments on marketing tourism services of Sanna Tour Joint
Stock Company......................................................................................................41

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

7

Supervisor: Doan Thi Dieu Lan, M.A.

4.5.1 Strong points..................................................................................................41
4.5.2 Weakness........................................................................................................42
CHAPTER 5. DIFFICULTIES AND SOLUTIONS...........................................43
5.1 Difficulties........................................................................................................43
5.2 Some solutions to improve marketing strategy for travel services of sanna
tour company.........................................................................................................43
5.2.1 Completing Product policy:...........................................................................43
5.2.2 Completing price policy.................................................................................44
5.2.3 Completing distribution policy......................................................................44
5.2.4 Completing Mixed promotion policy............................................................45
CHAPTER 6. CONCLUSION AND SUGGESTIONS.......................................46
6.1 Summary of the Findings................................................................................46

6.2 Summary of Suggestions.................................................................................46
6.3 Suggestion for Intership Site and University.................................................47
6.3.1 Suggestions for the Internship Site...............................................................47
6.3.2 Suggestions for Faculty of English...............................................................47
REFERENCES......................................................................................................48
QUESTIONAIRE..................................................................................................49
SUPERVISOR’S COMMENTS...........................................................................52

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

1

Supervisor: Doan Thi Dieu Lan, M.A.

CHAPTER 1: INTRODUCTION
1. Rationale
Along with the development of the country, the tourism industry has made
many progresses and achieved many remarkable achievements. The assessment
results through the indicators of the number of tourists, the proportion of GDP and
employment have confirmed the role of the tourism industry in the national
economy. The tourism industry has made important contributions to economic
growth, poverty reduction, social security, preservation and promotion of cultural
values, environmental protection and security and defense. However, the tourism
industry still has many shortcomings and shortcomings, many difficulties and
obstacles have not been satisfactorily resolved, has not had a breakthrough
development step to confirm that it is truly a key economic sector, the results are not
similar is commensurate with the country's potentials and advantages, development

but still contains many dangers and unsustainable factors. For businesses operating
in the tourism sector in Vietnam, the advantage of the beautiful natural landscape,
the abundance of traditional cultural, historical and social values as well as the rapid
development infrastructure and especially the supportive policies from the
Government have helped them to have remarkable growth. However, in the context
of increasing competition in the tourism industry, businesses need to have
reasonable business strategies to continue to make more successful steps.
In particular, tourism companies need to build their own effective marketing
activities, bringing benefits both in the short term (sales, profits) as well as in the
long term (image, brand). Sanna Joint Stock Company is one of the newly
established but active companies in the tourism industry and generates outstanding
revenue. Therefore, it can be said that Sanna Company is one of the typical
companies for the tourism sector in Vietnam - especially in the Central region.
Researching marketing activities at the company will have a deeper view of the
nature of implementing activities in a Vietnamese travel agency so that lessons can
be drawn for other businesses. The internship at Sanna Tour Joint Stock Company
has helped me master the theories learned, checked and contacted with the offices

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

2

Supervisor: Doan Thi Dieu Lan, M.A.

of the departments of the Travel Company, especially the marketing department.
From there, I came up with the idea of wanting to contribute my understanding to
the Company. During the learning and internship process, I realized clearly the role

of the marketing department in the business strategy of the Company, from the
assessment seen under the lens of an intern, I noticed the marketing work. The
company's limitations have many limitations so I decided to choose the topic “An
Investigation into the Marketing Department and Some Solutions to Improving
Marketing Strategy for Tourism Services of the Sanna Joint Stock Company” is the
subject of the graduation thesis.
2. Aims and Objectives
 Systematize theoretical bases related to the strategy marketing tourism
services
 Analyze and evaluate marketing activities at the company
 Plan a suitable marketing strategy in 2020. Propose solutions to develop
marketing activities of company
3. Scope of the Study
 Researching the subject of the topic are some solutions to improve tourism
strategy of Sanna Tour Joint Stock Company
 Space: Study the planning content in the marketing of Sanna Tour Joint
Stock Company
 Time: Study tourism service marketing strategy at the company. Expected in
the range from 2017-2019
4. Method of the study
I used following methods:
 The collecting method
 The statistical and synthetical methods
 The comparative and analytical methods
5. Organization of the Study
CHAPTER 1. INTRODUCTION
Including the Rationale, Aims and Objectives, Scope of the study, Method of
the study and organization of the study in this case.
CHAPTER2. THEORETICAL BACKGROUND

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

3

Supervisor: Doan Thi Dieu Lan, M.A.

Focusing on some basic definitions related to tourism, tourists and marketing
tourism
CHAPTER 3. CASE DESCRIPTION
Introducing general information about Sanna Tour Joint Stock Company
CHAPTER 4. ANALYSIS AND EVALUATION
Focusing on analyzing Marketing activities for tourism services and
evaluating and commenting on Marketing activities of Sanna Tour Joint Stock
Company
CHAPTER 5. DIFFICULTIES AND SOLUTIONS
Proposing some solutions to improve Marketing strategy
CHAPTER 6. CONCLUSIONS AND SUGGESTIONS
conclusing and suggesting improvements for study subjects (intern
companies), study tourism majors of the Faculty of English and Duy Tan University

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

4

Supervisor: Doan Thi Dieu Lan, M.A.

CHAPTER 2: THEORETICAL BACKGROUND
2.1 Tourism
2.1.1 Definitions of Tourism
Since mid 19th century, tourism began to develop strongly and nowadays, it
has become a popular social-economic phenomenon. However, the definition of
"tourism" was understood very differently in different countries and from different
angles.
In 1941, the Swiss Professors Walter Hunziker and Kurt Kraft defined tourism
as "the sum of the phenomena and relationships arising from the travel and stay of
non-residents, in so far as they do not lead to permanent residence and are not
connected with any earning activity".[1]
In 1976, the Tourism Society of England's definition was: "Tourism is the
temporary, short-term movement of people to destinations outside the places where
they normally live and work and their activities during the stay at each destination.
It includes movements for all purposes". [2]
In 1981, the International Association of Scientific Experts in Tourism defined
“tourism in terms of particular activities chosen and undertaken outside the home”.
[2]
According to the Term 4, Chapter 1 of the Tourism Law of Vietnam in 2005,
issued on 14/6/2005, "Tourism is the activities relating to the trip of people outside
their permanent residence to meet the need to visit, learn, entertain and relax in a
certain period of time”. [3]
The United Nations World Tourism Organization (UNWTO) states that
“tourism comprises the activities of persons traveling to, and staying in places
outside their usual environment for not more than one consecutive year for leisure,
business, and other purposes”. [4]
Also, “tourism is frequently considered in terms of the demand side, meaning
the tourists’ motivations, and the supply side, the sectors that satisfy tourist needs.

Other important terms associated with tourism are infrastructure, the components

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

5

Supervisor: Doan Thi Dieu Lan, M.A.

that an area’s residents rely on such as roads, bridges, communications networks,
markets, and supermarkets, and so on; and superstructure, facilities that have been
built to accommodate the needs of tourists such as cruise terminals, airports, and
convention centers (although these also support the area’s residents), hotels,
resorts, restaurants, and car rentals”. [4]
2.1.2 Classification of the Type of Tourism
2.1.2.1 Classified according to purpose of the Trip
To meet the trip needs of customers, the travel company offers suitable tours
and travel services. Tourism is classified according to the purpose of the trip as
follows:
 Ecology tourism
Ecotourism is a type of tourism that combines the natural and cultural
conditions
 Cultural tourism
Cultural tourism is a type of tourism that reflects the historical and human
values, giving you a good view of the cultural history of each region of the country.
 Medical tourism
Medical tourism is the process of traveling abroad for the purpose of receiving
medical care.

 Sports tourism
Sports tourism is a type of tourism in which tourists come to participate in or
watch sports-related activities
2.1.2.2 Classified according to Geographical Features of the Destinations
 City tourism
City tourism is understood as the trips of tourists to cities and urban areas for
the purpose of sightseeing and experience combined with other activities.
 Countryside Tourism

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

6

Supervisor: Doan Thi Dieu Lan, M.A.

Countryside tourism can be understood as a type of tourism where tourists
from other places come to a rural area to relax or experience the lifestyle and culture
of that rural community.
2.2 Tourists
2.2.1 Definitions of Tourists
Tourist is the person who moves out of his/her regular habitat to another place
less than twelve consecutive months with the main purpose of the trip being
sightseeing, relaxation, recreation, entertainment or other purposes except on
activities bringing income and making a living at the destination.
The Tourism Law of Vietnam defines that "Tourist is a person who travels or
combines with travel, except in the case of studying, working or practicing to
receive income in the place of destination".[5]

2.2.2 Types of Tourists
According to Tourism Law of Vietnam, tourists can be divided into domestic
tourists and international tourists.
2.2.2.1 Domestic Tourists
Domestic tourists are Vietnamese citizens and foreigners who permanently
reside in Vietnam that travel within the territory of Vietnam. [6]
2.2.2.2 International Tourists
International tourists are foreigners and Vietnamese people who settle abroad
that enter Vietnam for traveling; or Vietnamese citizens and foreigners who
permanently reside in Vietnam that go abroad for traveling. [6]
2.3 Some concepts of Marketing and Marketing Tourism
2.3.1 Definition of Marketing
Marketing is not just a function of business, it is a philosophy that drives the
entire operation of an enterprise in discovering how to meet and satisfy the needs of
its customers. I would like to give some basic definitions that are commonly used
in the current period:

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

7

Supervisor: Doan Thi Dieu Lan, M.A.

According to Phillip Kotler, “Marketing is working with the market to make
communication with the aim of satisfying human needs and wants. It can also be
understood that marketing is a form of human activity (including organization) to
satisfy human needs and wants through exchange.”[7]

According to the American marketing association (AMA) “Marketing is seen
as an organizational function and a process that includes creating, communicating,
delivering values managing customer relationship and managing customer
relationship in different ways to benefit the organization and its members .”[8]
2.3.2 Definition of Marketing in Tourism
The World Tourism Organization's (UNWTO) definition of tourism
marketing:’’Tourism marketing is a management philosophy through which a
tourism organization researches, predicts and selects based on the wishes of visitors
to brings the product to the market to suit the needs of the target market, and earn a
lot of profits for that tourism organization.”.[9]
The definition of tourism marketing by Michael Coltman:” Tourism
marketing is a system of research and planning to create for the tourism
organization a complete management philosophy with appropriate strategies and
strategies to achieve purpose.”[10]
The definition of tourism marketing by JC Hollway: “Travel marketing is an
administrative function, to organize and guide all business activities involved in the
acknowledgment of consumer needs and transforming customers' purchasing
power. the demand for a particular product or service, passing the product or
service to the end consumer in order to achieve the target profit or goal set by the
business or tourism organization. This definition of tourism marketing has three
important points”.[11]
Travel marketing is a type of method and technique supported by a special and
methodical spirit to satisfy the unspoken needs of customers that may be either an
entertainment or other purposes including family chores, work and meetings.
We can define tourism marketing as follows:

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

8

Supervisor: Doan Thi Dieu Lan, M.A.

“Tourism marketing is to conduct research and analysis of customer needs,
tourism products, services and modes of supply and support to bring customers to
products to satisfy their needs and at the same time achieve the goals of the
organization”.[12]
 As a research and analysis process:
+ The needs of customers
+ Tourism products and services
+ Modes of product supply and support of the organization
 To bring customers to products to:
+ Satisfy customers' needs
+ Achieve the goals of the organization (profit)
(Travel products are away from customers and intended, so travel suppliers
must find a way to bring customers to the product).
2.4 Factors affecting marketing activities in tourism business
Successful or unsuccessful corporate marketing is most influenced by
environmental factors. Which is divided into 3 main environments: macro
environment, internal environment (also known as industry environment), internal
environment of the company.
2.4.1 Macro environment
- Macro environment is the environment in which the company seeks
opportunities and is also the risk that affects the business development of the
company. This is a factor that the company cannot control, so it is imperative that
the company comply and adapt to it, including factors such as:
- Population environment: size and rate of population growth, population
distribution and ethnic structure, education level, household model.

- Economic environment: these are economic indicators, the most important
factors affecting the purchasing power of consumers such as income, prices,
savings, consumption index, inflation index play.

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

9

Supervisor: Doan Thi Dieu Lan, M.A.

- Technology environment: this is a place that can generate profits as well as
make it difficult for the company's production and business activities. Therefore,
companies need to track technology development trends, adapt and master new
technologies to better serve and improve business efficiency.
-Political environment: includes factors such as the legal system, the executive
apparatus.
-Natural environment: including factors such as landscape, level of
environmental pollution, weather conditions .
-Cultural environment: Marketing needs to pay attention to cultural change in
order to foresee new marketing opportunities and threats.
2.4.2 Internal environment
Travel business is influenced and be have by suppliers, competitors, marketing
intermediaries, the public and customers. These are also factors that the company
can hardly control. Specifically, the following factors are included:
- Competitors: Understanding the competitive situation and competitors is
extremely important to be able to build an effective marketing solution.
- Suppliers: Changes from the supplier side have a great impact on tourism

companies, so the company needs to understand the important information to be
able to foresee difficulties and plans to timely improvisation replacement.
- Marketing intermediaries: These are travel agency service organizations,
hotels, shipping companies ... These factors are very important in finding customers
and selling products and services to the company.
- Direct public: The activities of travel agencies are surrounded and influenced
by a wide range of public organizations. To be successful a company must regularly
analyze, classify and establish level public relations with each group of the direct
public.
- Customers: including sets of customers in the past, current customers and
potential customers. Marketers need to research their wants, perceptions of their
preferences and buying behaviors.

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

10

Supervisor: Doan Thi Dieu Lan, M.A.

2.4.3 The company's internal environment
Inside the corporate environment, factors in the company greatly influence the
company's marketing. The kernel can and that is:
- Capacity: This is an important factor for the business in general and the
tourist attraction activities in particular of a travel company because it decides for
the bank marketing.
- Quality of facilities, techniques, technology: the heap factor contributes
significantly to creating service quality and improving business efficiency of the

company.
- Human resources: this is a very important factor that does not directly affect
the quality of service, but makes a difference, difficult to start first for competitors.
- The next factor is the organizational management regime of all departments
of the company that directly affects service provision and the company's ability to
satisfy customers.
- Finally, the marketing factor works, it determines the company's business
performance. It ensures to meet the needs and desires of customers.
2.5 Tourism marketing policy
In order to increase the attraction of domestic tourists to the company in
addition to management measures, organizational structure , marketing-related
solutions play an indispensable role for any company. Marketing helps businesses
have an overview of the market they are changing and how to attract customers to
the business. Marketing policies play an important role in creating the desired
position and contribute to improving the quality and satisfaction of target
customers. Beside that, the company needs to have marketing policies such as:
product policy, price, distribution, mixed promotion, people, at the same time
creating product packages and programming. We will go into each marketing policy
to be clear about the roles and the purpose of these marketing policies to help travel
companies in improving the efficiency of attracting tourists.

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

11

Supervisor: Doan Thi Dieu Lan, M.A.

2.5.1 Product Policy
Product policy is one of four important factors in Marketing strategy. Below
are some of the definitions about the product policy.
Products from the marketing point of view are all factors that can meet the
needs and wants of customers, bring benefits to them, and can be offered in the
market. It includes 2 factors that are physical factors and non-material factors. Thus
products are understood as all goods and services that can be offered for sale and
are capable of satisfying a human need or desire, attracting the attention, stimulating
the purchase and consumption of surname.
In other words, a tourism product is a combination of different elements in
order to provide guests with a complete travel experience and satisfaction.
Product policy is understood as the overall rules that govern the creation and
launch of products into the market to satisfy the needs of the market and the tastes
of customers in each business period of the business or is the enterprise's policy on
limiting, maintaining, developing, expanding and innovating the commodity
structure in order to promptly meet the market's demand with efficiency consistent
with the life cycle stages of the product. Product policy is the lifeblood of a business
strategy. If this policy is not correct, it means bringing to the market the types of
tourism products that do not meet the needs and tastes of customers, regardless of
the marketing policy.
Tourism products are travel programs, accommodation services, dining ...
Therefore, the characteristic of tourism products is that they must be used to know.
Travel products must be sold to customers before they can consume and see the
product. So customers need to be throughly informed about everything . On the
other hand, tourism products cannot be stored and pre-produced, so it is difficult to
regulate supply and demand.
So the company needs to formulate a suitable policy for the following
contents:
 Product category policy

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

12

Supervisor: Doan Thi Dieu Lan, M.A.

Nowadays, businesses do not trade in a product that normally consists of many
different products and services grouped into a mixture of products. For businesses
doing business in the tourism sector to satisfy the needs of their customers, having a
diversified product mix is a must. The diversification of services is judged through
the length, width, depth and uniformity of the product portfolio. A product portfolio
is a collection of product or service categories that are offered by certain sellers for
sale.
Different products and services of the enterprise's product portfolio interact in
the sense of self-competition, but also complement each other, so determining the
size of the product portfolio is a product policy key content.
Categories of products and services related closely to each other by being
similar in function or by being sold together to the same group of customers, or
through the same type of commercial organization or within the framework of a
price range. Enterprises can expand or narrow their products on the market
depending on the level of competition or consumer needs of customers. Product
portfolio width is the total number of services in the company's product portfolio.
Length of product portfolio is the number of different products in the same
category but at different levels of quality.
Homogeneity is reflects the degree of closeness and harmony of goods
belonging to different categories in terms of end use or requirements on production
organization, distribution channels or a target certain standards.

Defining a product portfolio is to decide on its basic parameters to satisfy the
needs and wants of the customer.
 Decide to extend product categories
A business can extend a product category by extending products within the
category or adding new products within the current range of that category.
Downward: Companies add lower-priced, lower-priced products to attract
customers. The company that stretched its product portfolio downwards could be
due to being attacked by a competitor at the top end so it decided to counterattack

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

13

Supervisor: Doan Thi Dieu Lan, M.A.

on the bottom end, growth on the top end was slower than the bottom, the company
wanted add products at the bottom end to seal the market gap.
Stretching upwards: Companies servicing a medium or low affordability client
market that consider entering a more affordable guest market, due to the
attractiveness of the growth is higher or for other reasons.
Extending on both sides: Companies that can target the middle part of the
market can extend their product or service range to both sides. Deciding can extend
product and service categories to help the company reach out and attract more
customers.
 Research and develop new products
New products can be completely new, innovative products, innovative
products and new brands that the company develops through its own research

efforts. In order to develop new products, companies need to go through the
following steps:
- Forming ideas
- Choice of ideas
- Project drafting and appraisal
- Drafting a marketing strategy for new products
- New product design
- Tested on the market
- Commercialization
Researching and creating new products are necessary, but it also brings high
risks to the company because of the high failure rate and high costs. Therefore,
when developing a new product the company needs to strictly follow the steps of
creating a new product and bringing it to market. Because the needs of customers
are always changing along with the advancement of science and technology and the
fierce competition in the market, each product has its own life cycle, so it is
necessary to improve and change to make new products to replace outdated
products.

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

14

Supervisor: Doan Thi Dieu Lan, M.A.

2.5.2 Price policy
Price has a great influence on sales volume and profit of the company. Price is
a specific factor in marketing, price is also the basis for customers choose your trip.

Price decisions affect all participants in the marketing channel (customers,
competitors, distributors, the public), so the company needs to have a flexible and
reasonable pricing policy to attract customers.
- Pricing targets
Profits maximization: Usually set out with companies with great reputations,
good service quality and prices that are often above the normal level of peers.
- Market domination: The first stage of market entry requires a company to
have a safe foothold. Therefore, the company chooses to set prices equal to or lower
than the average price in order to access the market, to attract customers' attention.
However, that price will change to ensure long-term profit for the company.
- Quality leadership: For companies that cchaast their quality and service to
the level of professionalism or with unique distinctive features, the price is often
very high.
- Existence goal: Regression companies choose to set their prices to ensure
survival. Therefore, the price is often much lower than normal and remains for a
very short time.
- Valuation methods: Valuation by adding profit to costs, pricing by target
profit, pricing by value, priced by current price.
2.5.3 Distribution policy
Distribution is about giving consumers the products they need at times,
quality, types, and desires. In other words, it is the direction to show the measures
and tips to bring products and services to customers, in the end, to ensure service
civilization.
From the general point of view, a distribution channel is a collection of
businesses and individuals that are independent or interdependent, participating in
the shipping process.
A system of distribution channels in tourism is a set of suppliers or individuals
engaged in activities aimed at bringing customers to tourism products or supply.

Student: Huynh Tran Nhu Ly Code: K23.702

GRADUATION THESIS

15

Supervisor: Doan Thi Dieu Lan, M.A.

providing information on tourism products to customers. The process of bringing
created travel products to customers is called product delivery. The decisions
associated with that process are the product distribution strategy.
Bases for building and selecting distribution channels:
- Location guests
- Characteristics of customers
- Characteristics of products and services
- Types of intermediaries
- Based on the competitive situation in the market
- Based on the characteristics of the company
From the above bases select distribution channels , distribution system in
travel includes 2 main types of distribution: direct distribution, indirect distribution.
Direct distribution:
Producer => Consumers.
Indirect distribution:
Producers => Intermediaries => Consumers.
In the tourism distribution system, there are 3 main distribution channels:
- Travel companies
- Tourist offices or travel agents
Specialized companies
In addition, travel businesses can also sell goods through many other forms
such as catalogs, mail, phone, fax, internet ...

Distribution channel management.
- Selection of channel members
- Discount policy
- Conflict management
- Manage the practical effectiveness of channel members
- Modify distribution channels
2.5.4 Mixed promotion policy
Including main promotion - advertising
Process: is a special area of marketing that operates and has a master goal
oriented towards offering, selling, and defining the most favorable relationship
between a company and its partners with the weight of the goods. The point to
coordinate program strategy implementation and marketing has been selected by the
company. The company proceeds to improve information of the company with
customers through communication tools to activate the customer's demand to buy
products of the company, facilitate customers to choose products to use, create

Student: Huynh Tran Nhu Ly Code: K23.702


GRADUATION THESIS

16

Supervisor: Doan Thi Dieu Lan, M.A.

conditions for tourism production are many times, contributing to product
improvement.
The process steps catalyze too
To set up plan to the process, includes 4 steps:
- Determine the focus of the school

- Establish relationship communication system
- Browse and select the process catalyst method
- Emotional progression fixes time
Progress must be timely and appropriate after fixing, designing in print and
choosing other combination tools ... We need to know the outcome of our
communication, whether we are effective or not. If you want to know this, list it
with the field title.
Some key catalyst factors are:
Advertising: is the format that promotes the introduction of non-human
products or services as a paying company.
Promotion: is a job that applies a discount discount in a short time to increase
sales.
Direct marketing: is a form of promotion without intermediaries and the
process of marketing through direct marketing between customers and employees of
the company.
Also according to M. Belch and A. Belch and both Philip Kotler add the
Internet, the media and Philip Kotler alone add direct marketing.
In tourism promotion tools include 6 main tools that are:
- Advertising
- Sales progress
- Public relations / media
- Direct marketing
- Direct sales / personal sales
- Internet / Communication integration

Student: Huynh Tran Nhu Ly Code: K23.702