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Introduction...............................................................................................................

1
2.1. Show macro and micro environmental factors which influence marketing
decisions:...............................................................................................................2
2.2. Propose segmentation criteria to be used for products in different markets:. 6
2.3. Choose a targeting strategy for a selected product/service:...........................8
2.4. Demonstrate how buyer behaviour affects marketing activities in different
buying situations:...................................................................................................9
2.5. Propose new positioning for a selected product/service:.............................10
Bibliography............................................................................................................11

Introduction
DMT JSC has operated in various fields: Investment, construction, business in industrial zones,
residential areas, urban areas, resort and entertainment zones; Leasing land with fully built
infrastructure; Construction, repair, rental or sale of housing, factories and warehouses; Real
estate business, real estate trading center; Investment business of housing serving for workers in
the industrial zones, industrial group; Supervision and consultancy in projects quality;
Consultancy in investment, technology and science; Construction in industry, civil, traffic,
bridges and roads, irrigation, electricity projects up to 35KV; Exploitation of sands and stones;
site levelling.
DMT JSC is a pioneer company to develop this kind of investment and contribute greatly to
serving the citys needs of people resettlement, helping people a stable life, ensuring the citys
social security. Total number of BT projects invested is 12 with 200 ha and nearly 1,000 billion
VN dong, until now DMT JSC has handed over 2,000 fully infrastructure land plots for
resettlement arrangement and handed over 2 apartment buildings with 7 storeys including 210
units for social housing.

2.1. Show macro and micro environmental factors which


influence marketing decisions:
Factors which affects marketing decisions are Macro & Micro, the factors which indirectly
influence the organization and company do not have direct conrol on them is known:
Macro Environmental factors: These factors also knonwn as PESTLE analysis (Political,
Environmental, Social, Technological legal & Economical Factors). (Hanlon, 2014)

Political:
Political issues can be related to stability of political environment, law, taxes, policies on
economy, trading agreement (Political Factors Affecting Business, 2015). Not only DMT but
which ever company want to expand they should take all the political issues in consideration.
Non conformance with legislative obligations can lead to sanctions such as fines, adverse
publicity and imprisonment.
Environmental:
Environmental issue could be related to recycling, energy, water & climate change (Marketing
and the impact of environmental issues, 2015). These generally are micro environmental factors.
On the other hand, micro environment factors are the force which are internal or they can be

controlled the company. The factors generally are company itself, marketing agencies, suppliers,
customers, competitors.
Social:
Society such as friends, colleagues, neighbours and the media. Social forces affects companys
attitudes, interest and opinions. For example within Vietnameases attitudes are changing towards
buying a good piece of land with a moderate price to settle their life. Population will affects the
supply and demand of goods and services within and economy. DMT must be able to offer
products and services that aim to complement and benefit peoples lifestyle. if organisations do
not respond to changes in society they will lose market share and demand for their products and
services.
Technological:
The technological advances have greatly changed the manner in which businesses operate. DMT
use technology in many ways, they have:
1. They use technology to design and advertise the land for sale which they invest for
customers needs
2. Technology systems incorporating a multitude of software which help them manage their
3.

business.
Technology hardware such as mobile phones, computers, photocopiers and fax machines
which transmit and record information.

A faster exchange of information can benefit businesses as they are able to react quickly to
changes within their operating environment. However an ability to react quickly also creates
extra pressure as businesses are expected to deliver on their promises within ever decreasing
timescales. For example the Internet is having a profound impact on the marketing mix strategy
of the company. Consumers can refer land price many hours a day from where ever they want
and however they want via smart phones, laptops and tablets.

Economical:
The economical issues can be the level of infaltion, interest rate, income per capita, long term
perspectives for economy & unemployment rate. If countries economic growth is slow then sale
or growth of the company may suffer. Before entering a new territory all economic related things
should be clear. For example if people do not have good per capita income they would not be
spending money on piece of land that is expensive from DMT.
Legal:
Legal issue will cover employment law, working time, age, minimum wages, health and safety
regulation. These will be different in different countries, so DMT shoul be weel informed about
these before starting a store in Vietnam. Things llike minimum wages or maximum working
hours are important. So it is very important for a company to study and survey well (Shah, 2009).
Micro environmental factors:
These environmental factors are very close to business and having significant impact on the
success and operation of DMT. Micro environmental factors are competitors, media, employees,
shareholders, customers and suppliers and these factors determine organizational resources and
capabilities.
Customers: customers are the key focusing substance of an organization and DMT attracts and
retains customers by providing excellent products and services.
Employees: The employees of DMT are skilled, motivated and knowledgeable and they play
significant role in the success of the DMT and the betterment of sales and customer services.
Suppliers: Another important factor is suppliers and if organization has good supply chain it is
able to achieve competitiveness and to provide quality products to end users.
Shareholders: to expand a business shareholders are needed and good relationship among
shareholders ensures long term success and higher profit. For examole of DMT: An Tam JSC,
DANA-Italia JSC,... (DMT, 2016)

Media: It can play an important role and it should promote positive matters of the DMT to draw
more customers attractions.
Competitors: DMT has many competitors such as Sun Groups, Nam Viet A JSC, Central Green
Land JSC,... it must aware of the activities and products of its competitors. It should use modern
technology in its production and understand the trading condition and customer behavior (Scribd,
2012).
Five force of DMT company:

Threat of new entrants:

Given the nature of the business, there is always a threat of new entrants as it is relatively less
costly to enter the market and setup operations, (Jim Wilkinson , 2013) especially in Danang that
is continuous economic development the country's highest, increasing people's incomes.
Economic downturn across the globe and increase in the number of real estate construction and
development companies has reduced the profitability of the business. The threat from brand new
entrants remains low to DMT because it would be nearly impossible for a new company to match
the cost advantages.

Bargaining power of buyers:

The products (i.e. real estate space) are standardized. Switching costs are very high. People look
for developers with good track record. i.e. brand identity (DMT, Sun group,..). The bargaining
power of buyers was high. Because temperatures gradually rising real estate market, confidence
in buyers and housing market recovery, land segment remains more customers and selected
target, therefore DMT easily service customer's demand and company alway give a reasonable
price for their customer. The bargaining power of buyers which was low earlier, later on it
increased and now can be termed as moderate.

Bargaining power of suppliers:

Suppliers have a strong position in the commercial real estate market in Vietnam, especially
when the demand in the market far outstrips supply. For example, in the office segment, despite
the global economic crisis and the domestic macroeconomic uncertainties, the number of newly
established organizations continues to increase. DMT increase the demand for new office
buildings with international standards. Even though office space rent slightly decreased, the
demand still remains strong

Competitive rivalry:

Porters intensity of rivalry in an industry affects the competitive environment and influences the
ability of existing firms to achieve profitability (Porters Five Forces for competitor analysis &
advantage, 2012).High intensity of rivalry means competitors are aggressively targeting each
others markets and aggressive pricing products. This represents potential costs to all competitors
within the industry. Because of this DMT have to promote their brands in the best way to attract
customers and bring in profits for the company compared to other competitors such as Phu Gia
Thinh, Sun Group,...

Threat of substitutes:

The residential real estate market in Danang is one of the key growth market where foreign
investors see major potential investment opportunities (Vietnam property market poised for solid
2016, 2016). Due to a rapidly expanding urban middle class, demand for housing, especially

suburban and modern housing has increased strongly. Danang have a leading economy in Central
of Vietnam, therefore people in the neighboring provinces will come to Da Nang to work, so the
demand for housing will increase. DMT has expanded the suburban area of Danang for lowincome workers have a chance to settle.

2.2. Propose segmentation criteria to be used for products in


different markets:
When it comes to segmentation DMT have divided the market on the basis of age and region.
Most of the customers that they target are from urban area. They present themselves as a
premium brand to people who wants good quality services and are ready to pay even if it is little
expensive. When we try to undestand about segmentation of DMT, it can be understood that they
use psychographic segmentation which means they target customers on the basis of their
attitudes and lifestlye.
Income segmentation:
Income segmentation is another strategy used by many organisations. In today's globally
competitive environment brands are specifically developed and positioned within particular
income segments in order to maximise turnover.
Geographic Segmentation:
Geographical segmentation divides markets into different geographical areas (Nair, 2014).
Marketers use geographic segmentation because consumers in different areas may display certain
characteristics and behaviours in that particular region, for example, in Danang the majority of
high-income people are living in the center of the city.
Behavioural Segmentation:
Behavioural segmentation refers to why people purchase a piece of land. Behavioural
segmentation can be broken down into the benefit a consumer seeks from purchasing a product.
How will the product enhance their overall lifestyle. When should a land be purchased? For
example the demand for their children when they grow up or have a place that their family can
settle. Occasion segmentation aims to increase the reason to buy factor and thus increase sales.

Lifestyle segmentation:
Lifestyle segmentation aims to examine the way people live (Lake, 2015). Our lifestyle, our
every days activities, our interest, and our opinions and beliefs dictate who we are. Marketers
aim products and services at particular lifestyle groups and develop lifestyle profiles based on
their target market. If we understand the lifestyle of a particular group we can sell them product
and services to enhance their lifestyle.
Personality Characteristics:
Products can also be aimed at particular personalities. The beautiful and airy area target people
that is hard to buy the land.
Social Class Segmentation:
Social class segmentation divides society into 6 distinct groups based solely on occupation:
Professional staff, Middle management, Junior management, Skilled manual, Semi-skilled and
unskilled workers (Analysing market segmentation and research, 2015). Social class
segmentation works on the assumption that the higher your profession the higher the income and
more affluent the lifestyle.

2.3. Choose a targeting strategy for a selected


product/service:
Target marketing is done in 3 ways: Undifferentiated, differentiated and concentrated. (Kolb)
When DMT started its operation they use undifferentiated marketing strategy and they created
the marketing mix for single segment.
DMT gave their products without compromising on quality. Besides, DMT just has only one
office in Da Nang, they still remained very good in their product standards. By creating the land
area nice and airy, close to the important locations they have forced people are attracted by these
land. DMT emphasize on customers satisfaction, they want their customers have a great piece of
land from the time they buy companys products. Instead of spending money on various

advertisement like other competitors, they have been successful on Word of mouth advertising
they work hard in all area and let their product do talking.
Huge sales will turn out huge profit. Generally organizations conduct marketing for all segments
of the market. In differentiated marketing strategy, organizations concerned with targeting each
segment with a product with its own marketing mix designed to match the needs of the
customers within the segment. In this process organizations can increase customer satisfaction
and customer loyalty and allow organizations to spread risks. Generally DMT follow mass
marketing strategy; For example, DMT sell many piece of land with reasonable price for many
different classes.

2.4. Demonstrate how buyer behaviour affects marketing


activities in different buying situations:

The power of buyer is very high and its buyers choice in Danang (batdongsanfuwing, 2016)
that they can buy. In Danang, customer have many opinions to buy a plot, if company want to
succeed they need pland according to requirements of the customers because customer is the
king.
Problem or need recognition:
How do customer decide which particular product or service to purchase? It could be that new
plot because where customer live is not convenient to do business and customer have to look for
a new piece of land. This is first step in the consumer buying process.

Information search:
Customer have a problem, their land can improve their business and they need to buy new one.
What is the solution? They go out and refer new plans, but which bands? Buyer often go on an
information search to help them to chose the products. Source of information include family,
friend, broker and internet. The internet contains information about products. Consumer also
aquire and store information for future purchases. Company will take such consumer into
account when designing their market strategies, in the hope that when such a consumer is ready
to buy they will use the "stored" information about their product into account and buy their
products.
Evaluation of different purchase options:
Where will customer purchase? Because brand may be more important then price and for another
customer product appearance may be important. In the case of a piece of land, consumer may be
reviewing the direction of land. An evaluation system is particularly useful when there is a large
number of options. Marketing strategies will try and influence this stage of the process by
highlighting product quality that they think will affect to consumers.
Purchase decision:
After the evaluation process consumers will select the product they would like to purchase. The
job of the company is to ensure that the purchase process is simple and effective. Even at this
stage the purchaser could change their mind and select a competitor product or cancel the
purchase altogether. Therefore sellers need to make the buying process as simple as possible to
safeguard this and future purchases.
Post Purchase Behaviour:
Ever have doubts about the product after customer purchased it? this feeling is a common post
purchase behaviour. Seller clearly want purchaser to feel comfortable of their purchase, so that
they will recommend their friends purchase from company again. It is there fore just as important
for companys promotions, as it is for them to attract new customers. Promotions should make
purchases feel that they have bought their plot from a strong and reputable organisation with
"good" piece of land.

2.5. Propose new positioning for a selected product/service:


The product of DMT is being a leader in the field of real estate business (Cng ty C phn u
t Nng Min Trung, 2015). They need to make a positioning strategy for this product to
make it popular among a target market. Because it helps to generate business loyalty.
The target market will be everyone for this product but especially the people who have low
income. They are customers that are worried about not having a place to settle stabilize with their
incomes. The most important condition of people who go to work to earn money. Company
creates message regarding its products and deliver the message to target buyer through different
mediums such as leaflet, magazines, television, radio, etc.

Bibliography
Porters Five Forces for competitor analysis & advantage. (2012, September 7).
Retrieved from rapidbi.
Analysing market segmentation and research. (2015, March 23). Retrieved from
ukessays.
Cng ty C phn u t Nng Min Trung. (2015). Retrieved from
khudothiphuocly: http://khudothiphuocly.com/cong-ty-co-phan-dau-tu-danang-mien-trung/
Marketing and the impact of environmental issues. (2015, March 23). Retrieved
from ukessays.
Political Factors Affecting Business. (2015). Retrieved from pestleanalysis.
DMT. (2016). Retrieved March 27, 2016, from member companies.
Vietnam property market poised for solid 2016. (2016, April 01). Retrieved from
vir.
batdongsanfuwing. (2016, March 3). housing prices soar. Retrieved March 26,
2016, from batdongsanfuwing.
Hanlon, A. (2014, December 17). Using the PESTLE analysis model. Retrieved
March 27, 2016, from smartinsights.
Jim Wilkinson . (2013, July 24). Threat of New Entrants. Retrieved from
strategiccfo.
Kolb, B. M. (n.d.). Undifferentiated, Concentrated, and Differentiated Targeting
Strategies. Retrieved March 27, 2016, from globalspec.

Lake, L. (2015, November 30). What is Lifestyle Segmentation? Retrieved from


marketing.
Nair, S. (2014, June 12). Geographic Segmentation. Retrieved from buzzle.
Shah, N. P. (2009, July 11). Legal issue in real estate sector. Retrieved from
lawyersclubindia.
Scribd, Marketing environment [online], 2012, Available from
http://www.scribd.com/doc/22543929/Marketing-Micro-and-MacroEnvironment[Accessed: 7/4/2014]

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