Luận văn tốt nghiệp đề xuất cải thiện marketing mix ở công ty bestprice

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MINISTRY OF FINANCE
ACADEMY OF FINANCE

GRADUATION THESIS
RECOMMENDATIONS TO IMPROVE MARKETING MIX IN BESTPRICE

Supervisor

:

Ms Mai Mai

Student

:

Vo Thi Thu Hang

Class

:

CQ51/32.01

HANOI – 5/2017
MINISTRY OF FINANCE

Vo Thi Thu Hang CQ51/32.01Graduation

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ACADEMY OF FINANCE

***
GRADUATION THESIS
RECOMMENDATIONS TO IMPROVE MARKETING MIX IN BESTPRICE

Major

:

Marketing

Code

:

Supervisor

:

Ms Mai Mai

Student

:

Vo Thi Thu Hang

Class

:

CQ50/32.02

HANOI - 2017
Declaration

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I hereby declare this is my own research. Data, results stated in the
graduation thesis are honestly come from the actual condition of
company.
Graduation thesis author : Vo Thi Thu Hang

TABLE OF CONTENT
INTRODUCTION..........................................................................................................1

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CHAPTER 1: THE GENERAL THEORY OF MARKETING - MIX IN TOURISM
SERVICE.......................................................................................................................5
1.1
1.1.1

General theories of Marketing in Service Industry...........................................5
The nature and characteristics of tourism services.....................................5

1.1.1.1

Concept of Tourism Service.................................................................5

1.1.1.2

The nature of Tourism Services............................................................6

1.1.2

The types of Tourism service.......................................................................7

1.1.3

Marketing in Service industry.....................................................................7

1.1.3.1

Marketing concept...............................................................................7

1.1.3.2

Importance of Marketing in Services Industry....................................9

1.1.4
1.2

Marketing Mix in Marketing Strategy.......................................................10
The Marketing Mix policy in Tourism Industry..............................................12

1.2.1

Marketing Mix policy concept..................................................................12

1.2.2

Marketing Mix policy in Tourism service..................................................12

1.2.2.2

Price..................................................................................................14

1.2.2.3

Promotion..........................................................................................17

1.2.2.4

Place..................................................................................................22

1.2.2.5

People................................................................................................24

1.2.2.6

Process...............................................................................................26

1.2.2.7

Physical Evidence..............................................................................27

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CHAPTER 2: THE REALITY OF MARKETING MIX POLICY IN BESTPRICE
TRAVEL COMPANY..................................................................................................31
2.1

The formation and development process of Bestprice ....................................31

2.1.1

The birth and development of Bestprice ..................................................31

2.1.2

Introduction about Bestprice ...................................................................33

2.1.3

Organizational structure...........................................................................36

2.1.4

Financial situation of Bestprice................................................................37

2.2
2.2.1

The reality of Marketing Mix policy in Bestprice ..........................................38
Product.....................................................................................................38

2.2.1.1

Advantages of product policy in Bestprice:........................................38

2.2.1.2

Disadvantages of product policy in Bestprice:...................................40

2.2.2

Price.........................................................................................................41

2.2.2.1

Advantages of price policy in Bestprice:............................................41

2.2.2.2

Disadvantages of price policy in Bestprice:.......................................42

2.2.3

Promotion.................................................................................................42

2.2.3.1

Advantages of promotion policy in Bestprice.....................................43

2.2.3.2

Disadvantages of promotion policy in Bestprice................................45

2.2.4

Place.........................................................................................................46

2.2.4.1

Advantages of place policy in Bestprice.............................................48

2.2.4.2

Disadvantages of place policy in Bestprice.......................................48

2.2.5

People.......................................................................................................49

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2.2.5.1

Advantages of people policy in Bestprice.........................................49

2.2.5.2

Disadvantages of people policy in Bestprice....................................49

2.2.6

Process.....................................................................................................50

2.2.6.1

Advantages of process policy in Bestprice........................................50

2.2.6.2

Disadvantages of process policy in Bestprice...................................50

2.2.7

Physical evidence.....................................................................................50

2.2.7.1

Advantages of physical evidence policy in Bestprice........................50

2.2.7.2

Disadvantages of physical evidence policy in Bestprice...................51

CHAPTER 3: SOLUTION TO COMPLETE THE MARKETING STRATERY IN
BEST PRICE TRAVEL................................................................................................52
3.1 Development trends in tourism market development in Vietnam in the coming time
...................................................................................................................................... 52
3.2

Orientation of business production in Best Price.............................................61

3.2.1

Business strategy......................................................................................62

3.2.2

Target market and of the company in the coming time..............................62

3.3

Solutions to complete Marketing Mix of the company Best price..................63

3.3.1

Develop product strategy..........................................................................63

3.3.2

Complete pricing policy...........................................................................65

3.3.3

Expand Distribution System.....................................................................67

3.3.4

Diversifying the mixed promotion policy..................................................69

3.3.5

Increase investment in human resources development..............................70

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INTRODUCTION
1.

The importance of the research topic

With the current market economy, the competition is becoming more and
more fierce, marketing in general as well as Marketing Mix in particular is really
playing an important role in the existence and development of each business.
Along with the trend of international and regional economic integration,
consumer trends are increasingly changing. Consumers increasingly pay more
attention to quality, design and convenience in consumption. In order to survive
and develop in that business environment, businesses must constantly improve
their strengths and strengthen their position in the market. One of the most
effective competitions is to constantly improve and develop the marketing
strategy - Mix of the business.
Open door policy, economic integration into the diplomatic world as well
as the transition to a new economic system has brought our country's integration
with the world after a long time closed. Economic and diplomatic relations
Vietnam wants to make friends with "All the countries in the world" has made
international visitors to Vietnam increasingly to learn about cultural customs and

enjoy the scenery. , Leisure and investment opportunities. On the other hand, as a
result of economic reform, the living standards of the people have increased
sharply, which has resulted in increasing demand for tourism. It is these things
that promote the tourism industry of Vietnam to develop at a high speed as well
as create a vibrant and hectic business travel market. In a market economy with
its own rules it requires the entrepreneur to grasp the diverse and flexible use of
new business philosophy, techniques and art that can help business stand stably.
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Management philosophy, art business is Marketing. Marketing is an important
factor that effectively connects company resources and market. The result of this
connection is to enhance the performance of the business on the basis of meeting
the market needs with the best of its ability. Especially for travel business,
attracting customers is a vital condition of the company, so Marketing is very
important in the travel business of the company. However, properly
understanding the roles, functions, tasks and effective use of marketing is still a
problem. And that is also a fundamental factor determining the success or failure
of a business in general and a travel company in particular. Improving the
effectiveness of marketing is one of the most effective measures to improve
business efficiency of enterprises. Actually, the travel business of Vietnam has
the application of business marketing, but most of the company just stopped at
the level of application of division strategies and sporadic operations in a few
policies such as propaganda, advertising, pricing. These activities are often
discrete asynchronous and lead to low effective Makerting, leading to costly
costs. Based on such thoughts, through the practice, research and study at

Bestprice Travel Travel Technology Joint Stock Company, I have chosen the
topic: "Recommendations to improve marketing mix in Bestprice".
2. Research Objectives
Systematize general theories of marketing of tourism services
Evaluation of marketing activities of Bestprice
Recommendations to improve Marketing Mix in Bestprice
3.

Research Methodology:

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In order to gather the information needed to carry out the identified
research objectives, to use the general methodology: Methodology of dialectical
material study

Specific methods used for research include:
- Method of gathering information
+ Primary research: Data collection in the company, field observations,
company interviews, visitor surveys.
+ Secondary research: Study materials, materials including the textbooks
on marketing in tourism and the quality of travel services, books and newspapers
from the internet.
- Method of information processing
Using analytical methods, comparative methods, statistical methods,

experience ... the actual survey data is processed on excel software.
3. Research scope:
Research topic within the scope of Best Travel Travel Technology JSC in
the last 3 years
4. The composition of the thesis
In addition to the introduction, conclusions and bibliography, the main
content of the basic topic is presented in three chapters:
Chapter 1: The Basics of Marketing - Mix in Travel Business.
Chapter 2: Marketing - Mix Situation in Bestprice Travel Technology
Joint Stock Company.

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Chapter 3: Solutions to complete the Makerting - Mix policy in Bestprice
Travel Technology Joint Stock Company.
Due to the limited time and materials as well as the practical experience,
the subject matter is wide, despite many efforts, the topic is inevitable
shortcomings. I look forward to receiving the comments of teachers, Board of
Directors, students and interested people. To complete this project, I have been
helped by my consultant Ms Mai Mai, Board of Directors, Business Marketing
Department and other Departments of Bestprice Tourism Technology Joint Stock
Company. I sincerely thank for their valuable support!

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CHAPTER 1: THE GENERAL THEORY OF MARKETING MIX IN TOURISM SERVICE
1.1 General theories of Marketing in Service Industry
The world economy nowadays is increasingly characterized as a service
economy. This is primarily due to the increasing importance and share of the
service sector in the economies of most developed and developing countries. In
fact, the growth of the service sector has long been considered as indicative of a
country’s economic progress.
Economic history tells us that all developing nations have invariably
experienced a shift from agriculture to industry and then to the service sector as
the main stay of the economy.
This shift has also brought about a change in the definition of goods and
services themselves. No longer are goods considered separate from services.
Rather, services now increasingly represent an integral part of the product and
this interconnectedness of goods and services is represented on a goods-services
continuum.
1.1.1 The nature and characteristics of tourism services
A service is any act or performance that one party can offer to another
that is essentially and does not result in the ownership of anything. Its production
may or may not be tied to a physical product
1.1.1.1 Concept of Tourism Service

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Tourism Service is the service industries which benefit from tourism
include transportation services, such as airlines, cruise ships, and taxicabs;
hospitality services, such as accommodations, including hotels and resorts; and
entertainment venues, such as amusement parks, casinos, shopping malls, music
venues, and theatres.
1.1.1.2 The nature of Tourism Services
Firstly, Intangibility
Travel service is intangible. Unlike physical products, they cannot be
seen, tasted, felt, heard, or smelled before they are bought. The person who is
getting a face lift cannot see the exact results before the purchase, just as the
patient in the psychiatrist’s office cannot know the exact outcome before
treatment
Secondly, Inseparability
Travel service is typically produced and consumed simultaneously, unlike
physical goods, which are manufactured, put into inventory, distributed through
resellers and consumed later. If a person renders the service, then the provider is
part of the service. Because the client is also present as the service is produced,
provider – client affect the outcome
Thirdly, Variability
Because the travel services depends on who provides them and where
they are provided, they are highly variable.
Fourthly, Perishability

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Travel services cannot be stored; once an airplane takes off or a tour
starts, any unsold seats cannot be held for future sale. Perishability is not a
problem when demand for a service is steady, but fluctuating demand can cause
problems.

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1.1.2 The types of Tourism service
Firstly, Inbound Tourism: Tourists (non-residents) coming into a country
e. g The French coming into Viet Nam
Secondly, Outbound Tourism: People leaving their country for another
country e.g. Russians going over to China.
Thirdly, Domestic Tourism: Residents of one country travelling within it
e.g. Vietnamese travels to Phu Quoc Island.
1.1.3 Marketing in Service industry
1.1.3.1 Marketing concept
 According to the American Marketing Association (AMA) Board of
Directors, Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
 Dr. Philip Kotler defines marketing as “the science and art of exploring,
creating, and delivering value to satisfy the needs of a target market at a profit.

Marketing identifies unfulfilled needs and desires. It defines, measures and
quantifies the size of the identified market and the profit potential. It pinpoints
which segments the company is capable of serving best and it designs and
promotes the appropriate products and services.”
Stated simply, Services Marketing refers to the marketing of services as
against tangible products.

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As already discussed, services are inherently intangible, are consumed
simultaneously at the time of their production, cannot be stored, saved or resold
once they have been used and service offerings are unique and cannot be exactly
repeated even by the same service provider.
Marketing of services is a relatively new phenomenon in the domain of
marketing, having gained in importance as a discipline only towards the end of
the 20th century.
Services marketing first came to the fore in the 1980’s when the debate
started on whether marketing of services was significantly different from that of
products so as to be classified as a separate discipline. Prior to this, services were
considered just an aid to the production and marketing of goods and hence were
not deemed as having separate relevance of their own.
The 1980’s however saw a shift in this thinking. As the service sector
started to grow in importance and emerged as a significant employer and
contributor to the GDP, academics and marketing practitioners began to look at
the marketing of services in a new light. Empirical research was conducted

which brought to light the specific distinguishing characteristics of services.
By the mid 1990’s, Services Marketing was firmly entrenched as a
significant sub discipline of marketing with its own empirical research and data
and growing significance in the increasingly service sector dominated economies
of the new millennium. New areas of study opened up in the field and were the
subject of extensive empirical research giving rise to concepts such as - the
product-service spectrum, relationship marketing, franchising of services,
customer retention etc.

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1.1.3.2 Importance of Marketing in Services Industry
Given the intangibility of services, marketing them becomes a
particularly challenging and yet extremely important task.
 A key differentiator: Due to the increasing homogeneity in product
offerings, the attendant services provided are emerging as a key differentiator in
the mind of the consumers. Eg: In case of two fast food chains serving a similar
product (Pizza Hut and Domino’s), more than the product it is the service quality

that distinguishes the two brands from each other. Hence, marketers can leverage
on the service offering to differentiate themselves from the competition and
attract consumers.
 Importance of relationships: Relationships are a key factor when it
comes to the marketing of services. Since the product is intangible, a large part
of the customers’ buying decision will depend on the degree to which he trusts
the seller. Hence, the need to listen to the needs of the customer and fulfill them
through the appropriate service offering and build a long lasting relationship
which would lead to repeat sales and positive word of mouth.
 Customer Retention: Given today’s highly competitive scenario where
multiple providers are vying for a limited pool of customers, retaining customers
is even more important than attracting new ones. Since services are usually
generated and consumed at the same time, they actually involve the customer in
service delivery process by taking into consideration his requirements and
feedback. Thus they offer greater scope for customization according to customer
requirements thus offering increased satisfaction leading to higher customer
retention.
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1.1.4 Marketing Mix in Marketing Strategy
The first four elements in the services marketing mix are the same as
those in the traditional marketing mix. However, given the unique nature of
services, the implications of these are slightly different in case of services.
 Product: In case of services, the ‘product’ is intangible, heterogeneous
and perishable. Moreover, its production and consumption are inseparable.

Hence, there is scope for customizing the offering as per customer requirements
and the actual customer encounter therefore assumes particular significance.
However, too much customization would compromise the standard delivery of
the service and adversely affect its quality. Hence particular care has to be taken
in designing the service offering.
 Pricing: Pricing of services is tougher than pricing of goods. While the
latter can be priced easily by taking into account the raw material costs, in case
of services attendant costs - such as labor and overhead costs - also need to be
factored in. Thus a restaurant not only has to charge for the cost of the food
served but also has to calculate a price for the ambience provided. The final price
for the service is then arrived at by including a mark up for an adequate profit
margin.
 Place: Since service delivery is concurrent with its production and
cannot be stored or transported, the location of the service product assumes
importance. Service providers have to give special thought to where the service
would be provided. Thus, a fine dine restaurant is better located in a busy,
upscale market as against on the outskirts of a city. Similarly, a holiday resort is
better situated in the countryside away from the rush and noise of a city.

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 Promotion: Since a service offering can be easily replicated promotion
becomes crucial in differentiating a service offering in the mind of the consumer.
Thus, service providers offering identical services such as airlines or banks and
insurance companies invest heavily in advertising their services. This is crucial

in attracting customers in a segment where the services providers have nearly
identical offerings.
 People: People are a defining factor in a service delivery process, since
a service is inseparable from the person providing it. Thus, a restaurant is known
as much for its food as for the service provided by its staff. The same is true of
banks and department stores. Consequently, customer service training for staff
has become a top priority for many organizations today.
 Process: The process of service delivery is crucial since it ensures that
the same standard of service is repeatedly delivered to the customers. Therefore,
most companies have a service blue print which provides the details of the
service delivery process, often going down to even defining the service script
and the greeting phrases to be used by the service staff.
 Physical Evidence: Since services are intangible in nature most service
providers strive to incorporate certain tangible elements into their offering to
enhance customer experience. Thus, there are hair salons that have well designed
waiting areas often with magazines and plush sofas for patrons to read and relax
while they await their turn. Similarly, restaurants invest heavily in their interior
design and decorations to offer a tangible and unique experience to their guests.

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1.2 The Marketing Mix policy in Tourism Industry
1.2.1 Marketing Mix policy concept

The marketing mix refers to the set of actions, or tactics, that a company

uses to promote its brand or product in the market. The 4Ps make up a typical
marketing mix - Price, Product, Promotion and Place. However, nowadays, the
marketing mix increasingly includes several other Ps like People, Process and
Physical Evidences.
1.2.2 Marketing Mix policy in Tourism service

The Travel and Tourism industry is still one of the largest single
businesses in world commerce and its importance is widely recognized. The
tourism industry is now one of the largest sectors earning foreign exchange. In
the face of many benefits, many countries have started assigning due weight age
to the tourism industry in their national development agenda. Tourism is an
industry that operates on a massively broad scale: it embraces activities ranging
from the smallest sea-side hotel; to air-lines, multi-national hotel chains and
major international tour operators. Originally, non-traditional industries such as
tourism emerged as a solution to strike a balance between ecology and industry
Tourism is one of the world's fastest growing industries at present and
holds the status of the world's no. 1 industry. Spending on tourism amounts to
5%-10% of total consumer, spending in a year worldwide. The industry creates a
job every 2.4 seconds with every one of those direct jobs creating another 11
indirect ones. The tourism industry as a whole is presently estimated to earn over
US$ 3.5 trillion worldwide. India's share of the total market is a pittance at
0.51%. The non-tourist countries like Malaysia and Indonesia get much more
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tourists than India. India's share of the total market is a pittance at 0.51%. The

non-tourist countries like Malaysia and Indonesia get much more tourists than
India.
1.2.2.1 Product
The tourism product is a complex set of different physical resources,
activities and services. By buying this combination of natural resources,
activities and services, the guest buys a desire for experience, for certain
experience. It can be freely said that it is leading, carrying instrument in the
business and tourism industry. It can be defined as the sum of various details,
goods and services, which serve to satisfy the travel needs of customers out of
their travel places and residence in resting places . If there are generally five
levels of products: product at substantial utility, a generic product, expected
product, enriched product and potential product, from the standpoint of
marketing in tourism it can be distinguished:
 The main product - the main goal of marketing is in discovering the
basic utility that consumers expect from the product, based on that the accent
should be placed on features.
 Expected product - includes goods and services that must be present in
order for underlying product to be used by guest, and it depends on the target
market and present expectations.
 Additional product – what makes a product different from the
competition's product is an additional product that enriches the core product

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 Expanded product - Expanded product consists of circumstances for

offering a service to the customer. These circumstances are the atmosphere, the
interaction of a customer with the serving system, customer participation in the
production and mutual interaction of clients. The atmosphere itself is a
contributing factor in the marketing product offer of tourism, because it attracts
the attention of potential customers by sending message and influencing their
behavior.
 What will be the quality of the tourism product; will depend on the
imaginary and creative human work as well as the direct contact between guests
and the direct executors. Under the tourism product is considered a tourism
destination, and by this it is meant a place or series of places that tourists visit,
where they can stay, which is also the main goal of their visit In this case, the
characteristics of such a defined product are:
 Destination attractiveness - it makes a whole range of natural and
social characteristics to a destination;
 Destination accessibility - it refers to the distance expressed through
travel costs and not the literal geographical distance between a fixed place of
tourists and tourist destinations. Certainly, the competitiveness of bidders tourist
offer is much better if a tourism destination is closer to the domicile of tourists
 The condition to stay on site - includes a set of additional assumptions
whose presence and quality conditions a stay quality in a tourism destination.
Such a defined product is the basis for defining the price.
1.2.2.2 Price

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Pricing in tourism is a complex process. Pricing includes the prices of
other services like Air travel, Bus, Railways, Hotels, etc. All are included in
tourism package. Pricing also depends on the Geographic location of the
destination. Pricing also depends on Seasonality. Seasonality is the most
important factor in pricing. To match demand and supply tourist managers try to
get either discount. E.g. Taj is the tourist attraction in India. Pricing is also based
on competitors pricing. Pricing is also subject to government regulations. E.g.
Air price changes tourism package also changes, if Hotel charges change then
also tourism package changes.
Pricing of the tourist product is a complex matter because of its
composite nature. Geographical location of the destination affects the pricing
decision. At the same time, seasonality factor and varying demand cannot be
overruled. The objective of pricing in any other firms is to fetch a target market
share, to prevent competition, and to take care of the price elasticity of demand.
A very important way, in which the travel and tourism business
responded to their highly complex pricing circumstances, is to operate at two
levels. The first level is corresponds with the marketing strategy, which concerns
with the product positioning, value for the money, long run return on investments
etc. The second level corresponds to the marketing operations or tactics where
the prices are manipulated to match the current demand and competition.
When we talk about the price, as the element of marketing mix, it should
be emphasized that only it, unlike the other elements that imply costs, generates
income. Pricing of tourism products (and indeed every other) is a very sensitive
job. Under the conditions of intense competition, higher prices could cause a

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decline in sales and thus influence the total income. On the other hand, the price
has to cover production costs and ensure a profit. What will be the price for a
particular product will depend primarily on the objectives to be achieved by a
defined price?
Due to changes and increased competition, changes in the requirements
and tastes of tourists, extensive unused capacities, tourism companies can define
and establish rates that will primarily allow surviving in such adverse conditions.
If Tourism Company is disposing with modest business capabilities, it can define
goals that will ensure maximizing of short-term profits. In this way, it will define
prices that will ensure the highest possible profit, and in view of the current
constellation of favorable demand. Low initial cost can be defined by the tourism
companies seeking to secure high market participation. This is especially valid
when the company is entering in a new geographic market, aiming at high
market positioning based on participation. In this instance, the so called
penetration rate comes to expression. When a tourist company places in the first
line the high quality product, then such a quality of its tourism product is defined
with a very high price, which for this specific reason is called “price which
removes the cream. "These prices will cover the high cost of production of such
a quality product; on the other hand it is based on the assumption that a high
price creates a costumer’s perception on a high quality product. One thing is
certain. Product price has to cover the costs of production, which represents the
lower limit of its definition. What will the ceiling price be, it all depends on the
market itself...
A market that is expanding will condition the creation of prices at a
higher level, while the opposite situation will be in a market that is in a stagnant
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