Solutions to improve marketing mix strategy in MIKADO ceramic company

Title: Solutions to improve Marketing-Mix strategy in
MIKADO Ceramic Tiles Company

i


ACKNOWLEDGEMENT
We would like to send our many thanks to people, who contributed to this
Capstone project. Especially great thanks to the Faculty from Centre, our supervisor
who helps us a lot from beginning to the end, from choosing the Capstone project
topic, the methodology, to the improvement of our Capstone project by professional
advices.
Thank you very much to teacher from Centre, you not only provide us
knowledge but also have share a lot of works and give us more support to finish our
work.
Our very appreciate to our colleagues and group of friends, who contribute
the very helpful reference for our writing.
We would like to thank MIKADO Managers, who have created the unique
culture that motivates not only our efforts at work but also my inspiration to choose
the graduated topic. We also express our great thanks to managers and staff in
support of survey and study industry and business information.
Thank you very much all of you, we do believe that we can not succeed
without your support and encouragements.

ii


TABLE OF CONTENTS

ACKNOWLEDGEMENT .................................... ii
TABLE OF CONTENTS ................................. iii

LIST OF TABLE ....................................... v
LIST OF FIGURES, GRAPHS ............................ vi
INTRODUCTION ........................................ 1
CHAPTER I: .......................................... 4
ARGUMENTUM
FOUNDATIONS
ON
ORGANIZATION
AND
MANAGEMENT OF THE MIXED PROMOTION SYSTEM ............ 4
I. Organization and management roles of the mixed promotion system ....... 4
1. Overview on the mixed promotion system ........................................... 4
2. Roles of the mixed promotion system in marketing activities of
enterprises ................................................................................................. 5
II. Basic contents of organization and management the mixed promotion
system in enterprises......................................................................................... 7
1. Advertising ............................................................................................ 7
1.1. Identifying advertising objectives.................................................... 8
1.2. Decisions on advertising budget ..................................................... 8
1.3. Decisions on advertising messages ................................................. 8
1.4. Decision on advertising means ....................................................... 8
1.5. Evaluation of advertising efficiencies ............................................. 9
2. Direct Marketing ................................................................................ 10
3. Consumption stimulation ................................................................... 11
3.1. Identification of consumption stimulation objectives ................... 12
3.2. Selection of consumption stimulation tools ................................... 12
3.4. Trial testing program of consumption stimulation ....................... 13
3.5. Implementation and inspection of the consumption stimulation
program ................................................................................................ 13
3.6. Evaluation of consumption stimulation results ............................. 14

4. Public relations ................................................................................... 14
4.1. Identification of Marketing Public relations objectives................ 14
4.2. Selection of messages and public relations means ....................... 14
4.3. Evaluation of marketing public relations results .......................... 15
5. Direct sales .......................................................................................... 15
5.1 Organization of sales forces........................................................... 15
5.2 Management of sales forces ........................................................... 16
CHAPTER II ......................................... 17
CURRENT SITUATION OF ACTIVITIES OF MIXED PROMOTION
SYSTEM IN MIKADO CERAMIC TILE COMPANY .............. 17

iii


I. Overview on ceramic tile market in Vietnam ............................................ 17
II. Reality of business and production of MIKADO Ceramic Tile
Company ......................................................................................................... 20
1. Establishment and development history of Company....................... 20
3. Business and production competence ............................................... 22
3.1. Situations of equipments and materials, technique, material
facilities ................................................................................................ 22
3.2. Financial status ............................................................................. 22
3.4. Marketing’s performance status .................................................. 23
3.4.1 Product policy ........................................................................... 24
3.4.2 Price policy ............................................................................... 24
3.4.3 Distribution policy..................................................................... 25
3.4.4 Mixed promotion policy ............................................................ 26
3. Elements of Company’s Marketing Environment .......................... 27
3.1. Macroscopic environment ............................................................. 27
3.1.1 Cultural environment ................................................................ 28

3.1.2 Demographic environment ........................................................ 28
3.1.3. Economic environment ............................................................. 29
3.1.4. Political environment ............................................................... 29
3.1.5. Technological environment ...................................................... 30
3.1.6. Natural environment ................................................................ 30
3.2.1. Customer .................................................................................. 31
3.2.2. Competitors .............................................................................. 32
3.2.3 Suppliers .................................................................................... 32
3.2.4. Elements and forces inside enterprise. .................................... 32
3.2.5. Intermediaries of Marketing..................................................... 33
3.2.6. Direct public ............................................................................. 33
4. SWOT analysis of strength and weakness, opportunities and risks of
Company ................................................................................................. 33
4.3. Direct marketing ........................................................................... 39
4.3.1 Marketing via catalog................................................................ 39
4.3.2 Marketing via direct letters. ...................................................... 39
4.3.3. Marketing via phones ............................................................... 40
4.3.4. Some another direct Marketing tools, for example:................. 40
4.4. Promotion program: This has been regularly held on occasions of
earlier year and construction season. .............................................. 40
4.5. Participating in exhibitions, fairs................................................ 41
4.6. Relations of public and propagandization .................................... 41
4.7. Direct sale ..................................................................................... 42
5. Company’s business results in last time .......................................... 43
CHAPTER III ........................................ 49

iv


SOLUTIONS AIMED AT ENHANCING ACTIVITIES OF THE MIXED

PROMOTION SYSTEM IN MIKADO ......................... 49
I. Improving operation programs of Marketing ........................................... 49
1. Improving Marketing competence for Company .............................. 49
2. Organizing market research for selecting target market.................. 50
2.1. Market research ............................................................................ 50
2.2. Selecting target market .................................................................. 53
II. Marketing solutions aiming to improve operation of mix-promotion
system. ............................................................................................................. 54
1. Operation objective of mix-promotion system in general goal of
Marketing................................................................................................ 54
2. Building viewpoint and strategic design regulation for mixpromotion system. ................................................................................... 55
3. Decision on budget for mix-promotion system ................................. 56
4. Mix-promotion activities must aim at improving imagine, product
prestige of the Company......................................................................... 57
5. Mix-promotion system is designed in order to transmit information
to customers in the fastest way about business policies and new
products of the Company ....................................................................... 57
6. Mix-promotion system must have flexible self-adaptation capacity to
environmental change. ........................................................................... 58
7. Mix-promotion system supports distribution channel system to
reinforce and extend consuming market............................................... 58
8. Decision on operation of Mix-promotion system .............................. 59
9. Decisions on products, price and distribution channel. ................... 65
9.1. Product policy ............................................................................... 65
9.2. Pricing policy ................................................................................ 66
9.3. Distribution policy ........................................................................ 67
10. Suggestions ....................................................................................... 68
CONCLUSION ......................................... 70
REFERENCE .......................................... 72

LIST OF TABLE

v


Table 2.1 Production capacity of enterprises in tile production and business.

25

Table 2.2: the capital flow of MIKADO

28

Table 2.3 SWOT Matrix of MIKADO Ceramic Company

40

Table 2.4: Costs for advertisement in 2000 of COMPANY

44

Table 2.5: The business results of MIKADO in several years

49

Table 2.6: Business schedule in 2009 of MIKADO

50

LIST OF FIGURES, GRAPHS

vi


Fig.1.1: Decisions in organization and management of advertising activities

16

Diagram 2.1: Distribution channel system of MIKADO Ceramic Company.

32

vii


INTRODUCTION
1. The reason to choose this Article.
Owning the number of crowded population (around 90 million people) along
with high economic growth rate in the last few years, which continuously improve
the living standard of people, increase the needs on construction more and more,
provides good foundation for a series of new urban areas in big centers, Vietnam is
certainly a potential and attractive market to investor and manufacturers of
construction materials nationwide.
MIKADO Ceramic Tile Company has involved in manufacture & supply of
ceramic glazed tile products in Vietnam market since 2004 up till now. Having
experienced 5 years of growth and development, facing brick products of the
Company has won preference of a majority of domestic consumers and some
foreign markets such as France, Iraq, and Taiwan.
Such remarkable results can be attributed to the Company’s continuous
renovations on models, enhancement of product quality services provided to

consumers. Apart from that advertising, promotion, propaganda activities... have
also been attached great importance by the Company, which takes a great part in
continuous growth and development of the Company.
Therefore, on the basis of factual situation of business activities in MIKADO
Ceramic Tile Company in recent years, the research group decided to select the
topic: “Solutions to improve Marketing-Mix strategy in MIKADO

Ceramic Tiles Company” as the big exercise of the group.
2. The research objectives.
Research objectives of the group through this selected the topic include:
- Putting the theory in the practice, clarifying scientific arguments on the use
of mixed promotion.

Global Advance Master of Business Administration

1


- Analyzing current situations of the mixed promotion system in MIKADO
Ceramic Tile Company, thereby evaluating problems unresolved and working out
respective solutions.
3. The research range.
Because of limited time and the Article requires some specialized
knowledge, so this Capstone Project only concentrate on researching some basic
contents. Details: Solutions to improve Marketing-Mix strategy in
MIKADO Ceramic Tiles Company.
4. The research methods.
4.1 The method of data collection.
The data are collected by collection elementary data and reality observations
in MIKADO as well as interview Board of Directors & Departments.

4.2 The method of data process:
* The compared method: Compare data throughout recent years. This
method shows the change of MIKADO business’ capability and result through
reported periods.
* The method of comparison and statistics by table and diagram (statistics to
find out the common trends or features of analysis factors).
4.3 The SWOT Matrix method: Find out the strengths, weaknesses internal
MIKADO and changes, opportunities external MIKADO. This is the key method to
build the strategy of MIKADO.
5. The scientific and practical meaning of this capstone project.
The research Article of our group will contribute a small portion in
completing and improving the marketing-mix as well as apply marketing theory into
business process of Mikado in near future.
The whole capstone project will be presented in 3 Chapters:

Global Advance Master of Business Administration

2


Chapter I: Argumentum foundations on organization and management
of the mixed promotion system
This Chapter will present on argumentum foundations of mixed promotion,
of which an overall introduction on the status, roles of mixed promotion in
Marketing activities is introduce, at the same time basic duties are listed for a
marketing staff to implement the organization and management of an enterprise’s
mixed promotion system.
Chapter II: Current situations of activities of mixed promotion system
in MIKADO Ceramic Tile Company
Within this program, the research group has applied knowledge learnt in

analysis of practical situations of business activities in the Company from the aspect
of Marketing, evaluated advantages and disadvantages of the Company in the
Marketing field, from which shortcomings are found out and respective solutions
are introduced.
Chapter III: Solutions aimed at enhancing activities of the mixed
promotion system in the Company
In this Chapter, the group has applied theories on mixed promotion presented
in Chapter I to introduce some solutions to overcome problems unresolved as
presented in Chapter II.
It is hoped that the studies of the group will take a small part in more and
more effective activities of MIKADO Ceramic Tile Company in the years to come,
as well as in the application of marketing sciences in factual situations of Vietnam.
The first time putting the theory in practice undoubtedly made the big exercise of
the group cover mistakes, defects. The research group would be very grateful and
would highly appreciate instructions, suggestions from teachers and friends so that
the group can be more mature thanks to the source of knowledge learnt.
Thank you!

Global Advance Master of Business Administration

3


CHAPTER I:
ARGUMENTUM FOUNDATIONS ON ORGANIZATION AND
MANAGEMENT OF THE MIXED PROMOTION SYSTEM

I. Organization and management roles of the mixed promotion system
1. Overview on the mixed promotion system
Mixed promotion is a parameter of Marketing-Mix. There are various

concepts on promotion.
According to theorists in capitalist countries, mixed promotion a relation
form identified between the seller and the buyer, an activity field oriented at
offering the goods the most actively and effectively.
Economists in Western European countries believe that: mixed promotion is
a tool, a policy of business activities aimed at activating and making influences on
orientations between the seller and the buyer, a propaganda activity form aimed at
drawing attention and showing benefits of potential customer group in terms of
goods and services.
According to the text book “behavior theories and arts in business” of the
Marketing faculty the National Economics University, mixed promotion is artistic
measures used by businessmen to provide information on the goods, making
impacts on the buyer, luring the buyer toward their sides, at the same time it is also
a measure to support sales of goods.
According to the text book “administration of the distribution channel
system” of the Marketing faculty- the National Economics University, mixed
promotion is a cooperative program and is controlled in terms of methods and mass
media designed to introduce a company and its products to potential customers,
transmit information on products and enterprises to satisfy customers, create
favorable conditions for sales of goods and as a consequence, make long-term
profits.

Global Advance Master of Business Administration

4


According to the text book “Marketing services” mixed promotion is an
information activity on Marketing to potential customers. For enterprises activities
services, information on Marketing is empowerment, transfer of necessary messages

on enterprises, on products of enterprises, on serving methods, on benefits
customers will get when purchasing products of enterprises, as well as necessary
information from customers, whereby enterprises find out the best way to satisfy
customers’ needs.
Originating from concepts on the above-mentioned mixed promotion, we can
find that: mixed promotion comprises of activities intended in the Marketing field
of enterprises aimed at finding, promoting opportunities of goods purchase and
sales and business supply services. Mixed promotion includes main activities such
as: advertising, direct marketing, consumption stimulation, public relations and
propaganda, direct sales.
2. Roles of the mixed promotion system in marketing activities of
enterprises
According to previous opinions, mixed promotion has some important roles
such as: stimulating effectively sales force, stimulate customers by price reduction
of products or retaining the price but increasing the quality of products. In Vietnam,
since 1990s up till now, mixed promotion is important activities that are
indispensable in business activities of enterprises.
Mixed promotion activities will help enterprises have good opportunities to
develop business relations with domestic fellow traders as well as foreign fellow
traders. Through mixed promotion activities enterprises have good conditions to get
mutual understandings, set trading relationships with one another. Furthermore,
through mixed promotion activities enterprises as well as customers have additional
information on the market, have good conditions to quickly develop business and
integrate in the regional economy.

Global Advance Master of Business Administration

5

Thanks to mixed promotion activities, enterprises have good information on
customers as well as competitors, whereby enterprises have tendency to renovate
their business, invest new technology in business activities.
Mixed promotion is an effective tool to occupy the market and increase the
competitiveness of goods, services of enterprises in the market. Through mixed
promotion activities, enterprises get access potential markets on their necessary
information, provide potential customers with necessary information, preferential
services with a purpose to continue conquer customers and lure customers of
competitors. Mixed activities promotion will create a good image on enterprises in
the eyes of customers; thereby competitive advantages of enterprises keep
increasing.
Mixed promotion activities is the bridge connecting between customers and
enterprises, through mixed promotion activities enterprises will have good
conditions to judge their advantages and disadvantages of goods, services, from
which enterprises will have sound foundations to make timely and suitable
decisions.
Promotion facilitates sales of goods and makes it more active; putting the
goods in the distribution channel irrationally, stimulate sales forces effectively.
Mixed promotion is an effective tool that helps supply and demand meet
with each other, especially thanks to the art of mixed promotion, these activities
stimulate consumers to buy products enterprises are now offering.
Through mixed promotion activities, businessmen not only sell more goods
but also take part in changing consumption structure, guiding tastes of customers.
It also helps enterprises build up a good image on enterprises and products of
enterprises.
As a result, in order to get business objectives set forth, enterprises must
organize well mixed promotion activities.

Global Advance Master of Business Administration

6


II. Basic contents of organization and management the mixed promotion
system in enterprises
In business activities of enterprises, the Marketing executive must identify
targeted markets, introduce general marketing strategies, product- identifying
strategy needed to be put into business, service forms needed to promote sales of
goods, establish distribution systems, price identification methods..... Furthermore
the activities must be promoted to people related to procurement in targeted
markets. This promotion field is an important one in marketing activities. In
business activities nowadays enterprises will not achieve high efficiencies if only
thinking that: “high quality, cheap price goods is enough for sales of goods”. Values
of goods, services, even benefits achieved when consuming products must be also
informed to current customers, potential customers, as well as people that have
influences procurement.

To get this done, enterprises must organize good

implementation and management oft mixed promotion activities.
Mixed promotion includes the following sections:
1. Advertising
Business is a basic activity of the market economy. Advertising is an
indispensable activity of an enterprise, an important tool to exploit the market.
Advertising will take part in faster and more sales of goods and as a like human
being history. As a consequence, many definitions were introduced advertising and
have been elaborated from time to time.
According to The American Marketing Association (AMA), advertising is
introduced as follows: Advertising is any models of indirect presence of goods,
services or thoughts, actions that people must pay to identify the advertiser.

According to Philip Kotler’s, Advertising is any paid form of nonpersonal
presentation & promotion of ideas, goods, or services by an identified sponsor.
As a result, advertising is an indispensable activity in business activities of
enterprises. However, a part form that advertising activities also retails enterprises
spending a big costs for this activity. This affects costs and profits in business

Global Advance Master of Business Administration

7


activities of a company. As a result, when building up an advertising program,
marketing managers must always begin from discovering targeted markets and
motives of the buyer. After that, they can continue go through five important
regulations called five M.
1.1. Identifying advertising objectives
Advertising objectives must be achieved with such purposes as: informing
customers of new policies, products of the Company, creating image of the
Company with targeted customers, and then persuading customers to consume
products of the Company, finally reminding to maintain the product image of the
Company in customers’ mind.
1.2. Decisions on advertising budget
After identifying advertising objectives, the Company can start building up
the advertising budget for each product. Identification of the advertising budget
must base on objectives and tasks, since it requires advertisers to identify specific
objectives of advertising campaigns, after that to estimate costs of necessary
activities to achieve such objectives.
Four main methods are herein used to build up the advertising budget
including:
- Method based on capabilities.

- Method to calculate the percentage rate of sales turnover.
- Method to balance competition.
- Method based on objectives and tasks.
1.3. Decisions on advertising messages
When marketers build up and make decisions on advertising messages for
each type of product as for each mode of advertising means, the design of
advertising messages must be different, which entails high creativeness, draws
attention from customers.
1.4. Decision on advertising means

Global Advance Master of Business Administration

8


The next task of the advertiser is to select advertising means to transmit
advertising messages. This process depends on advertising scope, frequency,
intensity, modes....
1.5. Evaluation of advertising efficiencies
Communication efficiencies of the advertising mean the measurement of its
potentials impacting on levels of popularity, understanding and preferences of
customers. But currently the evaluation of advertising efficiencies have been not yet
measured since it is often characterized by high generalization. However, the
evaluation of advertising efficiencies before and after advertising has great
influences, helping Marketing activists implement better the advertising program
and draw attention from customers.
In summary, organization and management of advertising activities is
summarized in five important decisions as follows:
Decisions on message
Visualize the message,

Evaluate and select, implement

Identification of
objectives
Target at
industry
Visitors

umption

Decisions on
budget
Compete in balance based
on the capability of sales
turnover percentage,
objectives and duties

Evaluation of
advertising
Affect
communication,
consumption

Decisions on advertising means
Scope, impacts, main advertising means,
specific means, time distribution for
Advertising means

Fig.1.1: Decisions in organization and management of advertising activities

Global Advance Master of Business Administration

9


2. Direct Marketing
Direct Marketing is often considered as subsidiary with primary advertising
and direct sales tools. However, it can still take a big part in marketing
achievements and is now playing some big roles.
In business activities, in order to speed up consumption of products and
services, almost all companies primarily base on advertising, consumption
stimulation and direct sales. They use advertising to create popularity and attention,
consumption stimulation to stimulate sales of goods, and direct sales to finalize sale
of goods. Direct Marketing strives to combine 3 factors to make sale of goods
direct, not through intermediary.
Direct Marketing appeared at the first time under the form of directly
sending letters and order catalog of goods through telephone, in recent years, thanks
to booming of electronic sciences and technologies, many other forms are added,
such as Marketing through telephone, direct answer on radio and television,
purchase of goods through electronic system.... Marketing tools of great
diversification have one thing in common that is they are all used to get orders of
goods directly from targeted or potential customers.
Currently in the world Direct Marketing is now being attached importance
and developed by enterprises. Primary reason is that the cost to get access to
customers is much cheaper with the use of sales forces, capabilities of controlling
needs and responding more promptly and sensibly to needs of changes from
customers when it must be carried out through intermediary forces. The use of
Direct Marketing also brings about some benefits to customers such as: saving time
for customers, introducing customers a variety of goods to select and new living
style, saving costs for customers when going directly to shops for sales of goods.

Global Advance Master of Business Administration

10


But application of Direct Marketing tool in our country has not been attached
importance and has not been widely popularized. Since the infrastructure of our
country has still been under-developed, therefore; the application of Direct
Marketing in enterprises remains low. Besides, the direct purchase of goods at
shops of consumers has hanged on the mind of people due to previous consumption
lifestyle. To get this changed, in the years to come enterprises must quickly apply,
put Direct Marketing tools in business activities aimed at reducing expenses,
increasing competition capabilities among enterprises and introducing attractive and
persuasive advertising items to customers on benefits achieved when using Direct
Marketing in sales of goods.
3. Consumption stimulation
Consumption stimulation includes a great number of different tools to
stimulate, which are often short-term, aimed at stimulating consumers or
commercial sectors to buy more specific products, services quickly.
Consumption stimulation includes tools to stimulate consumers such as:
offering samples, bonus coupon, deduction in case of cash payment, especial price
reduction, gifts, awards, higher rewards to regular customers, free-of-charge trial
products, warranty, performance , competition, trade promotion such as: price
reduction for goods, the goods given free-of-charge, price support for goods,
subsidy for advertising cooperation, goods advertising and exhibition, money given
to retail sellers, competition in sales of goods between agencies and stimulation of
sales force such as: bonus, conferences of sales of goods.
Consumption stimulation tools are used by most of organizations, from
manufacturers, distributors, retail sellers, commercial associations to non- profit

organizations. Consumption stimulation tools are often preferred and selected by
consumption goods enterprises
As we all know, consumption stimulation aims at adjusting short-term
vibrations of supply and demand. Therefore organization and management of

Global Advance Master of Business Administration

11


consumption stimulation activities requires enterprises to have detailed and
meticulous implementation plans, program, so that consumption stimulation
activities can bring about high efficiencies. When formulating plans for
consumption stimulation activities enterprises

must identify consumption

stimulation objectives, selected tools, build up the program, carry out trial test of the
program, implement and inspect, evaluate the results.
3.1. Identification of consumption stimulation objectives
Consumption stimulation objectives are drawn from wider promotion
objectives. Such objectives are drawn from basic Marketing objectives set forth for
respective products. Specific objectives of consumption stimulation change
depending on types of targeted markets. For consumers, the objectives are to
stimulate the purchase of more product units, create some trial users among nonusers, and lure consumers to get rid of brands of competitors. For the retail sellers,
the objectives are to stimulate them to do business in new items of goods and to
preserve the goods with higher level, to stimulate the purchase of old-fashioned
goods, to stimulate preservation of items of concerned goods, to balance promotion
measures of competitors, to create the loyalty with brand among retail sellers and to
penetrate in new retail shops.

For sales forces, the objectives are to stimulate supports to products or new
models, to stimulate the finding of more potential customers and to stimulate the
consumption of old-fashioned goods.
3.2. Selection of consumption stimulation tools
After building up consumption stimulation objectives, we must select
consumption stimulation tools to finalize consumption plans. To get this done, the
promotion plan formulator must consider market types, consumption stimulation
objectives, competition situations and effective costs of each tool. Main
consumption stimulation tools used include:

Global Advance Master of Business Administration

12


+ Trade Promotion.
+ Tool to stimulate consumers.
+ Speed up business.
3.3. Building-up of consumption stimulation program
Marketers must base on decisions to identify and build up the whole
promotion program. Based on consumption stimulation objectives, tools for each
type of different products, marketers must make decisions on building up respective
stimulation program. Basic decisions on building up consumption stimulation
program include:
+ Decision on training time of Program promotion.
+ Decision on rewards for customers.
+ Decision on selection of means of reward distribution.
+ Decision on the total budget for consumption stimulation.
3.4. Trial testing program of consumption stimulation
The implementation of trial testing applied for consumption stimulation

program is necessary to identify whether the designated tool is conformable or not,
whether the stimulation level is optimal or not and whether the introduction method
is effective or not. It enables us to restrict at the maximum problems, shortcomings
that may arise during the implementation. As a result, the testing of marketing
activities in general, of the consumption stimulation program in particular is of great
necessity to which Marketing activist must pay attention.
3.5. Implementation and inspection of the consumption stimulation program
During the implementation of the program, due to unintentional or deliberate
causes, implementing staff may have wrong attitudes, behaviors affecting the
consumption stimulation program of the Company, therefore; inspection,

Global Advance Master of Business Administration

13


supervision work is very necessary to discover and handle timely aforesaid
performances and behaviors to make the program more efficient and effective.
3.6. Evaluation of consumption stimulation results
The evaluation of consumption stimulation results an important need. It
reveals that after the program how many products the Company has consumed, how
many customers to be increased, how the profit-making capability is....But currently
the evaluation of results is only superficially implemented since many people
believe that the increase in sales turnover, increase in profit-making capability much
depends on a variety of factors, not only depending on consumption stimulation.
4. Public relations
Public relations are a traditional/ another important promotion tool. Despite
less used, it has great potentials to create the level of popularity and preference in
the market. It is required to re-identify the position of products and protect them.
Primary public relations tools include publications, events, news, talks, public

interest activities, writing materials, audio-visual materials, identification means and
via- telephone information services. The formulation of public relations plans
includes the identification of public relations objectives, selected messages and
suitable means, and evaluation of public relations results.
4.1. Identification of Marketing Public relations objectives
Objectives must ensure the following requirements:
+ Create the popularity.
+ Create credit by transferring messages in articles.
+ Stimulate sales forces and agencies.
+ Reduce promotion costs.
4.2. Selection of messages and public relations means

Global Advance Master of Business Administration

14


This work requires marketers have creativeness in creating interesting
stories, articles as well as using various events to draw attention to their products
and services.
4.3. Evaluation of marketing public relations results
Of all three above-mentioned mixed promotion tools, public relations
marketing are the most difficult to measure. But with the prior use of other tools, it
can be easier to evaluate its contributions.
5. Direct sales
Nowadays, almost all companies use their sales representatives and many of
them put them on high priority in the marketing – mix. Sales staffs are very
effective in the implementation of specific marketing objectives. At the same time,
they also cost much. The leadership must organize and manage tightly natural
resources of direct sales.

5.1 Organization of sales forces
This entails basing on decision on target, strategy, structure, and scale and
remuneration system. Objectives of sales forces are to explore, find mew customers,
provide information, sell goods and do services, collect information and distribute.
Strategies of sales force are related to decisions on what combination types and
ways of sales methods are the best effective (individual or collective sales....). The
structure of sales forces can be organized under territories, products, markets or
under the combination of such factors and the rational scale, shape of areas is
identified. The scale of sales force entails estimating the total work volume, the total
sales time, the necessary number of sales staff. Remuneration regulations of sales
forces entail identifying the remuneration levels and sections of remuneration, such
as salary, commission, bonus, trip allowances and auxiliary welfare fee.

Global Advance Master of Business Administration

15


5.2 Management of sales forces
It covers recruitment and selection of sales representatives, training, guiding,
encouraging, and evaluating them. It is necessary to recruit and select carefully
sales representatives to reduce costly expenses due to hired people that fail to meet
requirements. The sales training program introduces new sales staff the history of
the company, products and policies of the company, characteristics of the market
and of competitors and the sales art. Sales staff should be instructed on such things
as: developing customers, building up potential customers, normalizing visit levels,
and using effectively their time fund. Sales staff should be stimulated by such forms
as: economic awards and reorganization of achievements as they often have strong
forceful decisions and overcome obstacles. The main purpose is to satisfactorily
encourage them, which makes them endeavor more, make higher achievements, get

bigger rewards, make higher level of

satisfaction and make stronger

encouragements. The final management step entails periodically evaluating
achievements of each sales staff in order to help that person work well.
The purpose of sales forces is to sell goods and sale of goods can be
considered as an art. The sale of goods is a process of 7 steps: exploring, finding,
screening get access preliminarily, approaching, introducing and performing,
overcoming objections, ending the commercial affair, monitoring and maintaining.
Another aspect of the sale of goods is the negotiation- and art to reach transaction
conditions that can be satisfactory to both sides. The third aspect is public relation
marketing- an art to create closer relationships and the independence between
people of the two organizations.

Global Advance Master of Business Administration

16


CHAPTER II
CURRENT SITUATION OF ACTIVITIES OF MIXED PROMOTION
SYSTEM IN MIKADO CERAMIC TILE COMPANY

I. Overview on ceramic tile market in Vietnam
Under impacts of the market mechanism and the growth rate on construction,
urbanization in recent years, ceramic tile products have been supplied by over 40
enterprises nationwide with the current designed capacity of app. 250 million m2.
Besides, a big number of smuggled goods from China are imported with cheap
price, diversified, abundant models, which makes the domestic production

encounter a number of difficulties, face harsh competition on prices and models of
products. According to factual investigations, the annual yield of the ceramic tile
consumed is around 130 million m2 in 2008. This number is less than the supply of
manufactures since the living standard of people is more and more improved, which
crates a variety of selections for needs of interior and exterior decorations.
In the domestic distribution network, at present, there are over 6000 building
material shops. Only some companies such as Dong Tam, Bach Ma, and Prime
…can organize well the direct domestic distribution network in big cities due to
their strong economic potentials and good management experiences, whereas other
enterprises remain weak in this stage. Such activities as: Advertising, promotion,
direct sales …are also being paid attention and invested by these companies.
In the years to come, the ceramic tile sector requires more satisfactory
attention to marketing activities right in the domestic market and it must be
considered as the potential market to develop in the right direction, meeting
demands of consumers.

Global Advance Master of Business Administration

17


Currently, the ceramic tile production sector holds a worthy position in
Vietnamese consumption goods industry, attracting a great number of labor forces
and collecting a lot of foreign currencies for the State budget. However domestic
enterprises are now encountering big challenges including the competition with
foreign direct investment enterprises, and items of smuggled goods imported from
China. Considering from the competitive advantages, Vietnamese enterprises are
now weaker than FDI enterprises on such conditions as: capital, production
management experiences, techniques, technologies and especially market
conditions. Therefore, in the years to come, in order to ensure the exploitation of

market potentials, move forward to occupy the domestic market served for domestic
demands, enterprises need further investment to make increase in both quality and
quantity of products with diversification in models and types, aimed at meeting
demands of consumers. The Vietnam Government need to implement consumption
demand stimulus measures in general and demand stimulus measures of facing
brick products in particular. Besides, enterprises need to enhance the relationships
between manufacturers and consumers through product introduction and sales
system in provinces, cities, rural areas, high and remote areas, mountain areas…
In terms of today’s export market, Vietnam’s ceramic tile has been exported
to more than 40 countries in the world. Main markets are in Asian region such as
Korea, Iraq, Thailand, and Taiwan which occupy about 80% of exported ceramic
tile value. This is a market having big demands but requiring high quality and
design. Therefore, in order to penetrate into these markets, the industry of tile
production is required to promote their capacity to satisfy market’s requirements.
Table 2.1 Production capacity of enterprises in tile production and business.
No

Company names

1

Northern Prime

2

Middle Dai Loc Prime

Locations

Capacity of

production (m2)

Vinh Phuc

35

Quang Nam

15

Global Advance Master of Business Administration

18