Luận văn thạc sĩ UEB further understanding on integrated marketing communication (IMC) essential

ĐẠI HỌC QUỐC GIA HÀ NỘI

TRƯỜNG ĐẠI HỌC KINH TẾ

NGUYỄN VĂN VƯỢNG

FURTHER UNDERSTANDING ON INTEGRATED

MARKETING COMMUNICATION (IMC)-ESSENTIAL

IMPLICATIONS TO PLAN AN EFFECTIVE IMC

CAMPAIGN IN VIETNAM AUTOMOBLE INDUSTRY

Chuyên ngành: Quản trị kinh doanh

Mã số:

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. Vũ Huy Thông Th.S

Nguyễn Việt Anh

Hà Nội – 2007

TABLE OF CONTENT

ABSTRACT................................................................................................................................................. 1

TÓM TẮT.................................................................................................................................................... 2

LIST OF ABBREVIATION......................................................................................................................... 3

LIST OF TABLES....................................................................................................................................... 4

INTRODUCTION....................................................................................................................................... 9

1. NECESSITY OF THE THESIS.............................................................................................................9

2. PURPOSE............................................................................................................................................. 9

3. KEY RESEARCH AREA.................................................................................................................... 10

4. METHODOLOGY.............................................................................................................................. 10

a. Research purpose........................................................................................................................... 10

b. Research Approach........................................................................................................................ 11

c. Research Strategy........................................................................................................................... 11

d. Data collection............................................................................................................................... 13

e. Sampling........................................................................................................................................ 13

f. Data analysis method...................................................................................................................... 14

g. Validity........................................................................................................................................... 15

h. Data presentation and data analysis..............................................................................................16

5. CONTRIBUTION OF THIS THESIS..................................................................................................16

6. OUTLINE........................................................................................................................................... 16

CHAPTER 1 LITERATURE REVIEW...................................................................................................18

1.1. PRIOR CONCEPTS TO UNDERSTAND INTEGRATED MARKETING COMMUNICATION.....18

1.1.1 Market....................................................................................................................................... 18

1.1.2. Marketing................................................................................................................................. 18

1.1.3. The Changing Role of Marketing............................................................................................18

1.1.4 Relationship marketing.............................................................................................................19

1.1.5. The marketing mix................................................................................................................... 20

1.2. INTRODUCTION TO INTEGRATED MARKETING COMMUNICATION...................................20

1.2.1. The Integrated Marketing Communication Process Model.....................................................20

1.2.2. Marketing Communication......................................................................................................22

1.2.3. The concept of Integrated Marketing Communication............................................................23

1.2.4. The revolution of IMC............................................................................................................. 24

1.2.5. Major reasons leading to the revolution of IMC......................................................................25

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1.3. APPROACH OF IMC IN AUTOMOBILE.......................................................................................26

1.3.1. The IMC Concept in Automobile.............................................................................................26

1.3.2. History of Marketing Communication in Automobile..............................................................26

1.4. THE IMC PLANING PROCESS MODEL.......................................................................................29

1.4.1. Identifying the target audience................................................................................................30

1.4.2. Determine objectives of communication..................................................................................30

1.4.3. Design the message.................................................................................................................. 31

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Content.................................................................................................................................. 31

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Structure................................................................................................................................ 32

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Format................................................................................................................................... 32

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Source.................................................................................................................................... 32

1.4.4. Selecting Communication Channels........................................................................................33

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Directed communication channel (Personal communication channels)........................................33

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Indirect communication channel (Non-personal communication channels).................................33

1.4.5. Establish the budget................................................................................................................. 33

1.4.6. Deciding on the Marketing Communications Mix...................................................................34

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Selection factors...................................................................................................................... 34

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IMC tools............................................................................................................................... 37

1.4.7. Measure Result........................................................................................................................ 37

1.4.8. Manage the Integrated Marketing Communications Process..................................................37

1.5. MAJOR TOOLS USED IN AN IMC CAMPAIGN...........................................................................37

Overview of the promotion mix..........................................................................................................37

1.5.1. Advertising............................................................................................................................... 38

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Definition............................................................................................................................... 38

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The Five Ms (5Ms) of Advertising............................................................................................38

1.5.2. Sales promotion........................................................................................................................ 41

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Definition............................................................................................................................... 41

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Sales promotion purposes........................................................................................................ 41

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Sales Promotion type and sales promotion tools........................................................................41

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Steps in Sales Promotion Program Development.......................................................................42

1.5.3. Direct marketing...................................................................................................................... 42

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Definition............................................................................................................................... 42

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Direct Marketing Tools........................................................................................................... 42

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Steps in Developing a Direct-Mail Campaign:...........................................................................43

1.5.4. Interactive/internet Marketing.................................................................................................43

1.5.5. Public Relation and Publicity...................................................................................................44

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Publicity and Public Relation.................................................................................................. 44

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Publicity................................................................................................................................. 44

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Public relation........................................................................................................................ 45

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Personal Selling...................................................................................................................... 46

1.6. THE IMC SYNERGY MODEL........................................................................................................46

1.6.1. Consistency.............................................................................................................................. 46

1.6.2. Interactivity.............................................................................................................................. 46

1.6.3. Mission-orientation..................................................................................................................47

1.6.4. Audience complexity................................................................................................................47

1.6.5. Product complexity................................................................................................................... 47

1.6.6. Distribution complexity............................................................................................................48

1.7. CONCEPTUALIZATION AND FRAME OF REFERANCE............................................................48

1.7.1. Conceptualization.................................................................................................................... 48

1.7.2. Frame of Reference.................................................................................................................48

CHAPTER 2 CASE STUDIES.................................................................................................................. 50

2.1. DATA PRESENTATION..................................................................................................................50

2.1.1. Case 1. The IMC Planning Process in GM Daewoo Vietnam..................................................50

2.1.2. Case 2. The IMC Planning Process Ford Vietnam..................................................................57

2.2. DATA ANALYSIS............................................................................................................................ 61

2.2.1. Within Case 1. The IMC Planning Process In.........................................................................61

GM Daewoo Vietnam......................................................................................................................... 61

2.2.2. Within Case 2. The IMC Planning Process of Ford Vietnam..................................................65

2.2.3. Cross Analysis.......................................................................................................................... 67

CHAPTER 3 FINDING AND IMPLICATION........................................................................................69

3.1. IMPLICATIONS FOR IMC PLANS OF GM DAEWOO VIETNAM AND FORD VIETNAM . 69

3.1.1. Implications for IMC Planning Processes of GM Daewoo......................................................69

Vietnam and Ford Vietnam................................................................................................................ 69

3.1.2. Implications for existing IMC campaigns of Vietnam automobile ventures............................73

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Media As A Matter of Communication.....................................................................................79

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Advertising As A Matter of Communication.............................................................................82

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Demography As A Matter of Communication...........................................................................84

3.1.3. Examples of IMC Impacts........................................................................................................86

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An example of IMC impact-Ford Vietnam................................................................................86

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An example of IMC Impact-GM Daewoo Vietnam....................................................................87

3.2. IMPLICATION FOR EXISTING THEORY.....................................................................................90

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Perception of IMC Benefit........................................................................................................90

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Organizations’ (Clients’) perception of IMC benefit.................................................................91

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The agency’s perception of IMC Benefit...................................................................................92

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Audiences’ perception of IMC benefit.......................................................................................93

CONCLUSION.......................................................................................................................................... 97

LIST OF REFERENCES.......................................................................................................................... 98

APPENDIX................................................................................................................................................ 99

APPENDIX 1. ADVERTISING’S HISTORY AND EVOLUTION....................................................................99

APPENDIX 2. VIETNAM AUTOMOBILE INDUSTRY..............................................................................102

APPENDIX 3. GM DAEWOO’S MEDIA PLACEMENT SCHEDULE........................................................111

APPENDIX 4. VIETNAM AUTOMOBILE PROMOTIONAL ACTIVITIES..................................................113

APPENDIX 5. INTERVIEW QUESTIONS-IMC PLANNING PROCESS....................................................118

APPENDIX 6. CONSUMER’S INTERVIEW QUESTIONS........................................................................125

APPENDIX 7. A SUCCESSFUL IMC CAMPAIGN..................................................................................130

APPENDIX 8. LIST OF INTERVIEWEES (HANOI AND HOCHIMINH CITY-EXTRACTED)...............131

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ABBREVIATION

ADV(S) OR AD(S)

AFTA

AIDA

AMA

BTA

CBU

CKD 1

FDI

GDP

U.S OR USA

IMC

MARCOM

PR

SCT

SKD

SOE

VAT

WTO

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LIST OF TABLES

EXHIBIT

Exhibit 1. The IMC process model

Exhibit 2. The promotional mix model

Exhibit 3. Product life cycle

Exhibit 4. Product life cycle and promotion mix strategy

Exhibit 5. Frame of Reference

Exhibit 6. GM Daewoo’s IMC Planning Process

Exhibit 7. GM Daewoo’s IMC tools

Exhibit 8. GM Daewoo’s Promotional Strategies

Exhibit 9. Ford Vietnam’s IMC Planning Process

Exhibit 10. Ford Vietnam’s Major IMC Tools

Exhibit 11. Comparison of Kottler’s and GM Daewoo’s IMC Model

Exhibit 12. GM Daewoo’s IMC Action plan

Exhibit 13. Comparison of Kottler’s and GM Daewoo’s IMC Model

Exhibit 14. Comparison of GM Daewoo’s and Ford’s IMC Model

Exhibit 15. IMC Planning Models Adjusted for GM Daewoo and Ford

Exhibit 16-26. Automobile Consumer Survey on IMC

Exhibit 27. Vietnam Advertising Market, 2004

Exhibit 28. Top ten advertising brands, 2004

Exhibit 29. Customer view of GM DAEWOO (1)

Exhibit 30. Customer view of GM DAEWOO (2)

Exhibit 31. Client’s Perceived Benefit of IMC

Exhibit 32. Agencies Beliefs about IMC Benefit

Exhibit 33. IMC Planning Process Proposed for Automobile Ventures

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INTRODUCTION

1. NECESSITY OF THE THESIS

Compared with other industries, Vietnam automobile industry is a very fresh one,

only over ten-year since foreign ventures jumped into the market. Despite of the fact

that current market size is small and certain disadvantages, Vietnam automobile

market is promising; the industry is predicted to be one of the key industries of the

nation in near future. Beside familiar ventures, such as GM Daewoo, BMV,

Mercedes, Ford, and Toyota that operate as different legal economic entities…the

market also attracts emerge domestic assemblers.

Even though ventures are leading automobile manufactures around the world,

experienced on different markets, they now meet certain difficulties in Vietnam-the

market is described as a particular environment. How to plan an effective marketing

communicational campaign? How to communicate with consumer in most effective

way? Is current promotional program appropriate? These always matter to

automobile marketers

This thesis was written with the subject of “Further understanding on Integrated

Marketing Communication (IMC)-Essential implications to plan an effective

IMC campaign in Vietnam automobile industry” expected to ease up above

questions. The thesis partly fulfills requirements for the degree of master of

business administration.

2. PURPOSE

The main purposes of this thesis are: ―Further Understanding on Integrated

Marketing Communication‖ and the exploration of how Integrated Marketing

Communication campaigns have been planned and developed by Vietnam

Automobile ventures. From analysis and comparisons, findings and implications are

drawn; these can be references for automobile marketers and marketing

communication agencies as implications to plan an effective integrated marketing

communication campaigns.

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3. KEY RESEARCH AREA

This thesis presents basic concepts of Integrated Marketing Communication.

Especially, the thesis focuses on two automobile ventures, GM Daewoo Vietnam

and Ford Vietnam, which have been chosen as two case studies. To affiliate the

studying purpose, it is also essential to see consumer‗s perception of automobile

IMC campaigns as well as to take a look on Vietnam Advertising Industry. Major

data in this thesis were collected in the first half of 2005

4. METHODOLOGY

a. Research purpose

Generally, due to studying purposes, there are three correspond types of techniques

to carry out a research: Exploratory, Descriptive and Causal1

Exploratory is especially necessary when don‘t understand the issue at hand

very well or there is no clear theory for it. Exploratory helps develop ideas,

issues, and possible answers to questions and finally it defines constructs of

interest. The aim of exploratory is to acquire basic knowledge within the

problem

Descriptive research simply describes, but does not directly link outcomes to

particular causes, for example 95 percent of online consumers are satisfied with

their online shopping experiences

Causal research seeks to relate specific outcomes to the variables that are causal

of the outcomes. Three following conditions must be satisfied for a causal

research:

One variable must precede the other in time

Alternative explanations for findings should be ruled out

Nomic necessity -- The ―causal link‖: ―Do we have reason to believe that

the relationship makes sense‖

Due to the fact that I do not intend to explain reasons behind IMC planning

decisions of Automobile manufactures; instead of that, I focus on describing how

1Causal sometime called Explanatory

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IMC is planned in some Vietnam automobile firms and used it as material to

compare with marketing theories and from that general findings and implications

drawn out. As the result, descriptive research is mainly in use. This is the

appropriate way to further understand on IMC as presented in introducing page:

―Further understanding on Integrated Marketing Communication (IMC)-

Essential implications to plan an effective IMC campaign in Vietnam

automobile industry”

b. Research Approach

There are two ways to address a problem when conducting a research; they are

qualitative research and quantitative research. According to Yin, the focus of

qualitative research is ―not numbers but on words and observations, stories, visual

portrayals, meaningful characterizations, interpretations and other expressive

descriptions‖. On the other hand, quantitative research usually used to determine the

quantitative or extension of some phenomena with numbers. Qualitative research

uses a coded identifier to assist in checking and cleansing the data set. Code

responses logically, include codes for non- responses, refusal to answer, and non￾applicable

Qualitative ―purists‖ argue that their research may be less ―precise,‖ but it

increases understanding, allows for complexity and depth

In response, quantitative ―purists‖ find qualitative research to be ―fuzzy‖ and

―subjective‖, (Wolfinbarger). In this thesis I used both quantitative method and

qualitative method, they can support each other to affiliate the researching purpose.

c. Research Strategy

Strategy is the way to conduct the research. There are many research strategies;

according to marketing statisticians, these following strategies are often in used:

Experiment, Survey, Archival Analysis, History and Case Study.

Experimental research systematically changes the level of one or more

independent variables and seeing the impact on the outcome variables

Survey are the same information (variables) collected from a number of cases

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and form a data set or grid

Archival Analysis is based on secondary data collected by someone else for

other purpose. The problem with Archival Analysis is that the data used for other

purpose. However, Archival Analysis is proven if current research purpose close

with previous research purpose or current researcher fairly understand about the

previous research

History Analysis is most alike with Archival Analysis because both of them are

used historical data but History Analysis use data collected with the same

purpose by some one else. The problem with History Analysis is timely issue

and concerns about the reliability of the research.

For Archival Analysis and History Analysis, there are necessary questions used

to evaluate secondary data are:

Who collected it?

Why was it collected?

How was the data collected?

What data were collected?

When was the data collected?

Do multiple sources indicate the same conclusions?

Case Study is often used when the research less involves in complex objectives

and phenomena. Case Study let researcher easy to compare among cases to find

out the most appropriate solution for the problem. However, if the purpose of

the research related to a larger field which involves many variables and objects

in different areas, case study is no longer proven because a case study

considered as a single observation

According to the research purpose, to further understand on IMC Planning Process

in a typical industry like Vietnam Automobile Industry, the appropriate strategies for

the research are: Case Study and Archival Analysis since the problem addressed is

not complicated and there are only over ten automobile ventures in Vietnam. In

addition to that, to fulfill the purpose of the research, other strategies also employed.

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d. Data collection

There are different sources of evidences for data collection. They are: Observation,

Focus Group, In-depth Interview, Projective Techniques, Grooming Study, Survey,

Documentation, Market check, Artifact and Archival Record…

Since strategies of the research are mainly Case Study and Archival, appropriate

data collection methods correspondingly are Interview, Archival Record and

Documentation

Interview considered as main source of data collection. Three common ways to

conduct an interview are:

Open-end: the respondent freely answer the question

Structured interview: Respondents are asked about certain issue

Focus group: A loosely structured interview conducted by a qualified

moderator among a small number of informants simultaneously. There are

often six or more persons involving in a focus group; they freely to talk about

an issue exchanging their ideas for certain time and after that they can move

to another issue

Archival record is the data collection method that use data form previous

researches as a source for reference. This is also reliable source but used

selectively

Documentation is the data collection method that uses letters, written report,

memoranda, articles, news that presented in mass media and internal document.

The advantages of documentation is the credibility of the source because these

data are posted on mass media which recognized as reliable sources

e. Sampling

Sampling will show where and why data are collected. Follow the researching

purpose and researching strategy, samples need to be taken in relevant sources;

otherwise, it becomes incompatible and unmatched with designing purpose. For the

purpose of further understanding on IMC Planning Process in Vietnam Automobile

Ventures, samples can be taken from any company. In addition to that, Vietnam

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automobile has six teen ventures only; therefore, there is no doubt that sampling

meet statistical standards. After considering researching strategy and statistical

standards, my focuses are GM Daewoo Vietnam-VIDAMCO and Ford Vietnam.The

accuracy of sampling is strengthen despite of the fact that both GM Daewoo

Vietnam and Ford Vietnam are American automobile firms since Daewoo originally

was a Korean automobile firm and GM acquired Daewoo after GM Daewoo

Vietnam had established for years; further, managing philosophy including IMC

planning of GM Daewoo Vietnam nearly unchanged after the acquisition. About

consumer‘s sampling as presented in data collection method above, I used archival

record; it means that most data about consumers are collected by the two companies

for the same purpose of exploring consumer‘s insight. Consumer sampling used for

reference since as said in studying onjective, my focus is how IMC planned in

Vietnam automobile. To affiliate the purpose of the research, it is also necessary to

take a look on Vietnam advertising industry and media firms.

f. Data analysis method

According to research purpose, there are two suggested strategies for data analysis:

relying on theoretical proposition and developing a case description

Relying on theoretical proposition: this strategy is often used when researching

strategy is to select one or more cases then compare it with theories; in addition

to that, cross comparisons also employed2

. The main ideas of this strategy are to

develop Case Study or collect data form previous studies to make comparisons.

As matter of fact, to match with designing study purpose, relying on theoretical

proposition strategy is most appropriate strategy; from comparisons and analysis,

findings and implications will be addressed

An alternative for relying on theoretical proposition is developing a case

description. This strategy is usually implemented when there is no previous

research available thus, it leads to develop multiplied full case studies and it

focuses on cross analysis rather than relying on theoretical proposition approach.

2In this thesis, different IMC theories of different authors are employed as a method to enhance validity

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