Marketing Audit Essay Example
Marketing Audit Essay Example

Marketing Audit Essay Example

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  • Pages: 4 (1046 words)
  • Published: January 4, 2018
  • Type: Case Study
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Viet Power Marketing Communication Corporation (PMA) is a company that was founded in 2000. It has branches in Ha Noi and Ho Chi Minh City. PMA is known for its events management expertise, especially in Ha Noi. The company provides effective and competitive media marketing solutions and takes pride in playing a crucial role in the success of their clients' companies. Their slogan is "PMA is proud to be the key element to company success".

The company focuses on professional consultancy, creative ideas, dedication to work, reasonable costs, broadwide relations, and professional reputation. Their media marketing service encompasses various events such as organizing meetings, conferences, opening ceremonies, product introductions, new product launching campaigns, road shows, ceremony celebrations, parties, and annual customer conferences. They also set up sponsor programs and organize contests. Additionally, they handle internal events like shareholder meetings and company birthdays, as well as me

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dia and communication services including press releases, press conferences, interviews, image record arrangements at the company/showroom/factory, and media crisis solving and managing plans. They provide strategies consultancy for marketing strategy, brand name building and promoting strategy, and the implementation management of promotion activities.

A marketing audit is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities. The goal is to identify problem areas and opportunities and recommend a plan of action to improve marketing performance. The marketing environment encompasses both macro (economic, political, social and cultural, technology) and micro factors.Economic issues have affected global business in general, including Vietnam. Consequently, PMA, an events company, has experienced similar economic challenges as other organizations. While capital is not a major concern for PMA, ther

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has been a decline in customers due to the economic depression.

The economic depression leads to customer credit. On the political front, the PR industry still lacks specific policies, resulting in more competitors entering the market. These competitors are often small and of poor quality, which decreases the overall perception of the PR industry. Moreover, the absence of specific policies allows some PR companies to exploit this loophole and engage in unfair practices against their competitors.

Technology: The PR industry is embracing new trends such as virtual conferences. Many companies are opting for virtual conferences over in-person ones due to their convenience. Additionally, companies can significantly save costs by choosing this method.

Social and cultural: In Vietnam, PR is not acknowledged as a distinct profession but rather considered a part of advertising.

When a company implements a PR strategy, it may experience unforeseen costs. Fortunately, the attitude of Vietnamese customers towards PR has changed over time. Some companies in Vietnam now dedicate a significant part of their advertising budget to PR. Furthermore, besides the overall business environment, the specific business climate also has a vital role and directly affects organizations. In this context, PMA employs Porter's five forces model to examine the competitive landscape. These five factors comprise the risk of new competitors entering the market, the possibility of substitution, customer bargaining power, supplier bargaining power, and competition among existing firms.

Threat of new entrants:

  • Entering the industry is affordable
  • Customer relationships are more important than experience
  • Low barriers to entry
  • New market entry takes time
  • Potential for substitution exists
  • Costs of change are low

Major substitution: virtual conference

  • The power lies with the customer
  • Industrial areas house large real estate companies and manufacturers
  • National and government events generate

significant orders

  • Different services offered
  • The buyer holds high power
    < li > The power lies with the supplier
    < li > Many suppliers available, including big hotels, printing companies, gift producers, etc.
    < li > A similar product is available
    < li > The product can substitute for others

    Competitive rivalry:

      < Li > Numerous competitors exist
      < Li > High customer loyalty
      < Li > Low costs associated with leaving the market
      < Li > PMA has good relationships with prominent hotels and newspapers  < / li >
       
    • The switching cost is low.

    PMA is an events company that does not require a substantial amount of capital to establish their business. According to Mr. Dinh Trong, the director of PMA, customers typically provide 30% of the total payment for PR plans when they sign a contract.This clarifies why the exit cost in this market is low, unlike other industries like hotels or restaurants where substantial losses are incurred through the sale of fixed assets.

    The PR industry values relationships and experience as its valuable assets. The absence of specific barriers allows new companies to easily enter the market. However, it takes time for both new companies and PMA to establish themselves in a new market due to the need for building relationships. There is a wide range of hotels and venues available for rent, along with printing companies

  • that PMA can easily find at the best price. Switching suppliers in this industry incurs low costs since all suppliers offer similar products.

    The new trend in conference organization is virtual conferences, which are more comfortable and cheaper than physical conferences. However, virtual conferences are not yet popular in Vietnam, posing a challenge for PMA in the future. PMA stands out in the Real Estate industry and as a manufacturer in the industrial area, providing two advantages over competitors. Additionally, PMA has strong relationships with reputable newspapers such as Tien Phong newspaper (a leading Vietnamese newspaper and founder of Miss Vietnam), Thanh Nien newspaper, Business Forum, and Tiep thi va Gia dinh magazine.

    Therefore, the customer power of PMA is high. Each order of PMA can equal a few orders of other events companies. According to Mr. Trong, in the PR industry, PR companies don't need to advertise themselves. Instead, once PMA successfully organizes events, customers will find them on their own. That's why customer loyalty is high. No one wants to switch to new events companies instead of the PR company they are used to. As we can see, PMA operates in a competitive environment with many competitors, present and future. However, PMA remains a successful events company with national events like Miss Vietnam 2007 and Final National Hiphop 2006, as well as government events such as ASEAN meetings.

    Apply organizational and environmental techniques to evaluate the effect on the company in the Vietnam market. Despite efficiently utilizing Porter's five forces, PMA still needs to determine its strengths, weaknesses, opportunities, and threats.

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