Marketing audit

Viet power marketing communication corporation (abbreviate PMA) is founded in 2000 with two branches in Ha Noi and Ho Chi Minh City. In Hanoi, PMA is one of the most famous companies in events management. PMA provide media Marketing effective and competitive solutions. Their slogan is “PMA is proud of being the element to the company success”. Their mission is Professional consultancy, Creative ideas, Devoted to work, Reasonable costs, Broadwide relation and profession reputation.

Their media marketing service includes Marketing events (Organizing meetings, conferences, opening ceremonies, product introduction, new product launching campaign, road show, ceremony celeberations, parties and annual customer conference, setting up sponsor programs, organizing contests) ; Internal events (Shareholders Meetings, Internal events : company birthday, talk show for staff) ; Media/ Communication (Press Release, Press Conference, Interview & Image Record Arrangement at the company/Show room/ factory, Media Crisis Solving & Managing Plan) ; Strategies consultancy (Marketing Strategy, Brandname Buidling and Promoting Strategy, Organizing Promotion Activities Implementation Management)

Task 1

Appraise the processes and techniques used by the company marketing audit for the marketing environment

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 with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance (Kotler et al, 1988).

In marketing environment, I mean both macro and micro environment. Macro environment is divided into 4 factors: economic, political, social and cultural and technology.

Economic: This two years is bad years for global business in generally and in Vietnam in particularly. Therefore, PMA has also face to economic problems as the other organization. PMA is an events company, they don’t have to worry much about the capital but there are less customer because of economic depression. Economic depression is the direct cause of credit from the customer.

Political: There is still lack of specific policy in PR industry. It means that there is more and more competitors in the market, they are small and bad PR companies, therefore the review about PR will decrease. And because of lack specific policy, some PR companies use this missing to bring some disadvantages things about competitor out.

Technology: There are new trends in PR industry that is virtual conference. More and more company chooses virtual conference instead of real conference because of its comfortable. Besides this, company can save a lot of money when choose this way.

Social and cultural: In Vietnam, PR is not recognized as a specific job. It is still be seen as a part of advertising. Therefore, when company does a PR strategy, they often cost amount of unexpected money. Fortunately, Vietnamese customer lifestyle toward PR is changed within several years. Some Vietnamese company spent one third – one fourth advertising expense into PR.

Besides macro environment, there is micro environment. This environment influences organization directly. In this environment, PMA use Porter five forces to analyze competitive environment. There are five elements: threat of new entrants, threat of substitution, power of customers, power of suppliers and rivalry among existing firms.

Threat of new entrants

* Not too expensive to enter the industry

* Experience needed, but good relationship with customer is more important

* Low barriers to entry

* Take a long time to enter the new market

Threat of substitution

* Low costs of change

* Major substitution: virtual conference

Power of customer

* Some large real estate company and manufacturer at industrial area

* Very large order (national and government events)

* Different service

* High buyer power

Power of supplier

* Many supplier (big hotel, printing company, gift producer, etc)

* Similar product

* Able to substitute

Competitive rivalry

* Very many competitors

* High customer loyalty

* Low costs of leaving market

* Good relationship with some big hotel and newspaper

* Low switching cost

PMA is an events company; therefore they don’t need so much money when they set business up. According to Mr. Dinh Trong, director of PMA, normally when they sign a contract with a customer, the customer will give PMA 30% of total money to spend for PR plan. That’s why the low cost of leaving market. With the other industry, such as hotel or restaurant, when they want to leave market, they lost a lot of money when they sell their fix asset. In PR industry, the asset is relationship and experience. About the barriers, there is still don’t have specific policy about this industry, therefore that’s so easy for a new company enter into this market. As I said, the relationship is the most important factors in this market, hence, it cost a long time for new company as well as PMA officially enter into new market.

About substitution, there’s many hotel and place to rent a conference room as well as printing company. So PMA can easily to find a best supplier with the best price. In this industry, all suppliers provide similar products, so the cost of changing supplier is low. But the new trend in set conference up in organization is virtual conference. It’s more comfortable and cheaper than real conference. In fact, even virtual conference is still not popular in Vietnam; this thing is a challenge for PMA in the future.

PMA is nearly unique in Real Estate industry and manufacturer in industrial area. This is two advantages of PMA in compare to competitor. Besides that, PMA has a good relationship with some newspaper, such as Tien Phong newspaper, a great newspaper in Vietnam and the chief founder of Miss Vietnam, Thanh Nien newspaper, Business Forum, Tiep thi va Gia dinh magazine. Therefore, customer power of PMA is high, each order of PMA can equal few order of the other events company.

According to Mr. Trong, in PR industry, PR company doesn’t need to advert themselves. Instead of that, once PMA make successful events, the customer will find them by themselves. That why the loyalty of customer is high. No one want to give the image, brand name of company to new events company instead of the PR company they used to.

As we see above, PMA is operating in a competitive environment with many competitors and more in the future. But until now, PMA still be a good events company with some national events such as Miss Vietnam 2007, Final National Hiphop 2006 and government events such as ASEAN meetings.

Apply organizational and environment technique to assess the impact on the company in the Vietnam market

Even PMA use Porter five forces efficiently, but they still need to identify their strength, weakness as well as opportunities and threats.