ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2 Marketing Essentials

Submission date 17/08/2019 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Nguyễn Ngọc Uyên Nhi Student ID GBD18320

Class GBD0825.1 Assessor name Ms. Nguyễn Phương Dung

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand
that making a false declaration is a form of malpractice.

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Table of Contents
I.Introduction................................................................................................................................ 5

II.The extended marketing mix (7Ps) ......................................................................................... 5

1.Concept of 7Ps .................................................................................................................................... 5
2.Role of 7Ps .......................................................................................................................................... 7
2.1 In business activities of enterprises ............................................................................................... 7
2.2 Toward consumers ......................................................................................................................... 7
2.3 Toward society ............................................................................................................................... 7
3. Marketing strategy ............................................................................................................................. 8
3.1 Segmentation – Step 1 ................................................................................................................... 8
3.2 Targeting – Step 2 .......................................................................................................................... 8
3.3 Differentiation and Positioning – Steps 3 + 4 ................................................................................. 9

III.How different organizations utilize each elements of the marketing mix .......................... 9
1. Strategic objectives ........................................................................................................................... 9
1.1 Vietravel ......................................................................................................................................... 9
1.2 Saigontourist ................................................................................................................................ 10
2.Compare 7Ps marketing strategy of traveling service of ............................................................. 10
3. Similar and different points of Vietravel and Saigontourist ........................................................ 15

IV.Analyse and evaluate marketing mix tactics ...................................................................... 16

1. Advantages and disadvantages of 2 companies .......................................................................... 16
2. Evaluate ............................................................................................................................................ 17

V.Conclusion.............................................................................................................................. 17

REFERENCES ............................................................................................................................ 18

APPENDICES ............................................................................................................................. 19

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I.Introduction
Purpose of this report is to conduct a small study in order to review the various ways about
using the marketing mix to achieve their overall business objectives.

Understanding what 7Ps mix is, what can it help for the company. Provide 2 companies to
match its 7Ps strategy and draw conclusions.

II.The extended marketing mix (7Ps)

1.Concept of 7Ps

7Ps mix (guru, 2019)

The marketing mix is a mixture of components that a company uses to allow it to satisfy
customers's requirements and expectations. (tutor2u, 2019)

The marketing mix has traditionally been made up of four components: (product, price,
promotion and location). However, adding three fresh components to the traditional advertising
mix has become more prevalent in latest years, making a mixed 7p's. This is what is known as
the expanded marketing mix. (tutor2u, 2019)

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Therefore, the expanded marketing mix of the 7p includes the following aspects:

Product: The service framework item is the services your business will provide to your
customer. (Singh, 2019)

Price: The price relates to the service cost to be paid by the client. The organisation would have
to do a customer value-based survey of the optimal pricing of their service. Through these
factors, a business can consider its service pricing approach: competitor’s reputation, low-cost
service providers, high-cost service providers, number of players in the industry. (Singh, 2019)

Place: This is the physical business address where customers interact with service
professionals. (Singh, 2019)

Promotion: The service promotion is what many consulting firms are focusing on in order to get
more customers. The organization uses the following techniques to promote their services:
business developers, search engine optimization, social media marketing, paid advertising,
public relations, billboard Ads (Singh, 2019)

People: The individuals within the structure constitute the staff, advisors, and freelancers who
provide clients with the service. In offering knowledge-based services, people are the most
critical factor. An organization needs to hire the correct individuals to suit the corporate culture.
(Singh, 2019)

Process: These are the steps needed to provide a client with the service. One of the benefits for
service providers is the design of process maps outlining the following: function, activities,
processes, tasks. Then these businesses will be able to share these process maps with their
staff to ensure that their job is effective and repeatable. (Singh, 2019)

Physical: The physical evidence is a mixture of the setting and branding in which a service
representative provides the service to a client. The physical evidence capital would be: a service
brochure, a request for proposal, social media accounts, a corporate website. Other unique
deliverables from your organization. (Singh, 2019)

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2.Role of 7Ps

2.1 In business activities of enterprises

Marketing-mix helps businesses long-term survive and firmly in the market because it provides
the ability to adapt to changes in the market and the external environment. And shows
businesses that they need to providing the market right with what the market wants, in line with
the wants and affordability of consumers. (Anh, 2019)

Marketing-mix creates the connection of the enterprise's production activities with the market in
all stages of the reproduction process. Marketing provides activities to find information from the
market and communicate information from businesses to markets, research and development of
new products, product consumption, service provision, etc. (Anh, 2019)

2.2 Toward consumers

Marketing-mix helps find and discover the needs and desires of consumers in the present and in
the future. Creating a variety of goods and improve service quality to bring benefits to satisfy
consumers's needs and wants. It can even bring benefits beyond consumers's expectations.
(Anh, 2019)

2.3 Toward society

It helps domestic consumers access foreign's products and services in the fastest and most
efficiently way. In the other hand, it also motivates local businesses to bring their consumer
products to introduce and trade with friends and international customers. Contributing to
improving business performance of businesses and promoting national image in the
international market. (Anh, 2019)

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3. Marketing strategy

Marketing strategy (Claessens, 2019)

A marketing strategy is the general match plan of a company to reach individuals and make
them customers of the product or service provided by the company. A company's marketing
plan includes the value proposal of the firm, important marketing messages, target client data,
and other high-level components. (BARONE, 2019)

3.1 Segmentation – Step 1

Market segmentation can be defined as the method of separating a market into separate groups
of clients who have different features, needs and behaviors and require different products or
marketing programs.
Any company should be aware that in the total market it can not serve all customers.
(Claessens, 2019)
There is too much variation of distinct types of customers and their needs. There are too many d
ifferent customer kinds, features, needs, desires, and behaviors. Consequently, Business must
group consumers based on different factors that are important to the business. These variables
may be based on factors of geography, demographics, psychography and behaviour. But for
each business, not every variable is equally helpful. (Claessens, 2019)

3.2 Targeting – Step 2

The business may pick one or more of these sections to join after distinguishing between the
distinct sections in a market. Before doing this, it is necessary to evaluate each segment.

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Business should therefore focus on and enter those segments where over time we can produce
the biggest client value. It may also rely on its funds whether a business chooses to join one or
more sections. The business should look for sections to overlook or ignore rivals in the best
scenario. (Claessens, 2019)

3.3 Differentiation and Positioning – Steps 3 + 4

Differentiation and positioning are heavily linked and mutually dependent. Positioning, which is
the method of arranging a product in the minds of target clients to occupy a clear, unique and
desirable position compared to competing products, relies on the differentiation. (Claessens,
2019)

First, the business should recognize potential differences in client value that provide competitive
benefits to build on the situation. But it's not enough just to promise those values. If the required
situation is to be considered the cheapest product on the market, an extremely small cost
should distinguish the item. If the desired position is to be regarded as the highest quality
product on the market, the product should be distinguished by delivering that competing
products of exceptional quality are not available. (Claessens, 2019)

III.How different organizations utilize each elements of

the marketing mix
7Ps strategy is a model that all businesses can apply. If they succeed in adopting this strategy,
they will be able to survive and solid in the market. In theory, 7Ps is so, but the way each
business applies and puts it into practice may be different. Still 7Ps but the content is completely
different.

1. Strategic objectives
1.1 Vietravel

Become one of the top 10 travel companies in Southeast Asia, with the goal of striving to
achieve 500,000 - 600,000 visitors with sales of over 4,000 billion VND. (xemtailieu, 2019)

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1.2 Saigontourist

Affirming the position of the leading tourism corporation in Vietnam, is one of the famous brands
in the fields of accommodation - cuisine - travel - entertainment, has a positively part in the way
make tourism become a key economic sector of Ho Chi Minh City and the whole country
according to the general development strategy of Ho Chi Minh City and Vietnam tourism
industry. Develop according to the trend of integration, sustainability and efficiency of
enterprises associated with community benefits. (tcdulichtphcm, 2019)

2.Compare 7Ps marketing strategy of traveling service of

To achieve the goal, these 2 companies have adopted 7Ps strategy. Below is a comparison
table of 7Ps strategy between Vietravel and Saigontourist

ELEMENTS

VIETRAVEL SAIGONTOURIST (STS)

PRODUCT ●Package tour program ●Traveling service (domestic and foreign)

●Domestic tourism Traditional tour
●Foreign travel for conditional adults Premium tour
(Hoàng, 2019)
IKO tour (domestic and foreign)
(snownflake, 2019)
PRICE Schedule Fixed costs The variable -Use package package for saving tours
costs -Reduce for domestic tourists
DAY1 -Transport -Hotel -Discount 5% of each ticket with group has
-Tour guide -Eating more than 6 people
DAY2 -Transport -Hotel (123doc, 2019)
-Tour guide -Eating
-Sightseeing -Sightseeing
vehicles tickets

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LAST -Transport -Hotel

DAY -Tour guide -Eating
-Other fee
(Hoàng, 2019)
Example: Tour Nha Trang – Da Lat (5 days, 4 nights)

2 tours are similar but the price is in different norms (Attached in Appendix-1)

(snownflake, 2019)

PLACE Contact domestic and foreign service
systems
Expand hard and soft stool distribution
network
Large distribution system: Vietravel has
20 branches and representative offices in
domestically and internationally
(Hoàng, 2019)
4 offices in the center of Ho Chi Minh City
Many other branches in big cities in the
country
3 main distribution channels of STS:
Channel 1: STS established a branch
system Sell tickets directly to customers
Channel 2: STS sends tickets to travel
agents Dealers will sell to customers to
get commissions

Channel 3: Through the company's

website, customers can buy tickets directly
in the form of bank transfer or home
delivery

(123doc, 2019)

PROMOTION Advertising policy Advertising

Famtrip (familiarization trip) 4 important communication channels that

STS is using:
Presstrip (travel survey newspapers to
introduce and promote) Newspaper: 4 times a week

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Promotion policy Journal: 2 times a month

Discount in cash Outdoor advertising

Discount on % of tour price Internet: advertising on some famous

websites
Give a gift
Community relations: participating in
(Hoàng, 2019)
humanitarian aid programs

Direct marketing: send mail directly to

customers

Promotion

During the holidays, the ticket price will

not change and the company will provide
additional services.

Apply incentive programs to customers

who are members of the company

Organizing big promotions

Give a gift

(123doc, 2019)

PEOPLE Young guide has highly qualified and STS has established its training base
fluent in foreign languages (Tourism Intermediate School and Saigon

Young, creative and dynamic staff, often Tourist Hotel). Since then the company

trained in skills easily selects good and capable human

resources.
(Hoàng, 2019)
Labor recruitment cooperation between
STS and Costa Crociere S.p.A

Creating a favorable condition about matter

and spirit to increase employees's motive,

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serve customers in the best way and for

development goal of business

(123doc, 2019)

PROCESS Tour design process: (Hoàng, 2019) Customers book their certain tours after

Step 1: Market research obtaining data from the organizations of

Step 2: Study responsiveness
Step 3: Determine the goals and ideas of
the tours
Step 4: Determine the price and time
limits
Saigontourist. Customers must pay deposit
for it at that moment. The tour guide will
then provide comprehensive data to
clients. Finally, clients appreciate the trip
and provide for tour guides the feedback
directly.

Step 5: Select the route point (Nguyen, 2019)

Step 6: Develop transport plans

Step 7: Develop plans for accommodation

and meals

Process of providing services:

(kymfashion, 2019)

Customers can visit Vietravel's branches,

contact the phone number of the
branches or can book a tour directly on
the website travel.com.vn to receive
advice to plan, or choose the destination.
After that, customers make a deposit
according to the company's regulations
when confirming the purchase of tour
tickets.

Staff will provide experience for

customers before going. For group

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visitors, Vietravel has a meeting before

the tour starts.

When experiencing the tour, customers

will experience services commensurate
with the expectations through enthusiastic
and experienced staff. If an accident
occurs, customers will be satisfactorily
resolved and compensated according to
regulations.

After the trip, Vietravel always hears

feedback from customers.

Complaint resolution process: (Hoàng,

2019)

Step 1: Request for settlement of

complaints

Step 2: Verify, record, save and transfer

Step 3: Feedback solutions

Step 4: Statement for comments

Step 5: Review and approve

Step 6: Answer

Step 7: Request a re-settlement

PHYSICAL Not only the head office located in the city STS has a main office system and
EVIDENCE center, Vietravel also has 20 branches branches, exhibitors have simple, modern
distributed throughout the country designs, convenient for information
(Thailand, Cambodia, America) for easy exchange between employees and
access with customers. customers.

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Most airport systems have houses waiting Information about the tour is clearly posted
of Vietravel, which has created great on the website so that customers can
conditions for customers. easily find information online.

www.travel.com of Vietravel is the first (123doc, 2019)

tour network in Vietnam, contributing to
connecting customers with multi-
dimensional information channels and
many convenient facilities to satisfy
customers's needs.

(kymfashion, 2019)

3. Similar and different points of Vietravel and Saigontourist

From the above comparison table, these 2 companies have the same points at:

+ Business in tourism services.

+ Pricing by age.

+ There are branches and representative offices.

+ Depend on the community to advertise for the company. Offer promotions about reducing %
the ticket price.

+ Having a staff of dynamic, experienced and enthusiastic at work.

+ Having a tour process; receive and process complaints from customers.

+ Having a website to easily receive comments from customers and exchange with them.

In the other hand, they also have some different points at:

+STS clearly classifies the kind of tour.

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+About the price, Vietravel offers a fixed price for tourists. But on the STS side, there are
discounted tickets according to conditions. STS assesses a ticket on age and star rating of
customers, while Vietravel according to age and type of visitors.

+STS has 3 main channels for easy access to customers.

+Vietravel's advertising campaign is still sketchy compared to STS. Vietravel mainly advertises
thanks to the community, not interacting with customers like STS. Regarding promotions, STS
has organized many newer and more attractive promotion events than Vietravel.

+STS staff are trained directly in the center of the company. But Vietravel directly recruit staff
through direct interviews outside.

+Vietravel's working process in a certain order, including the tour design process and the
complaint process. STS does not clarify these procedures.

+Vietravel has representative offices in foreign countries, larger scale than STS, so it is easy to
reach many domestic and foreign customers.

IV.Analyse and evaluate marketing mix tactics

1. Advantages and disadvantages of 2 companies
STS offers 3 tour options for customers (Traditional tour, Premium tour, IKO tour) for customers
to choose depending on their own economy.

On weekdays, STS offers a discount on conditional fares but Vietravel does not. This will make
the number of tourists choose STS because the price is quite different, adverse effect about
economic.

Vietravel's advertising campaign does not depend on their customer. Therefore, the interaction
with customers is very low. Vietravel does not develop the company's advertising campaign. It
doesn't invest much in marketing.

STS opened many big promotion events for customers. This makes the company attract
customers.

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The recruitment of STS is much more invested than Vietravel. This will create a quality staff, the
belief for customer.

Currently, Vietravel is larger than STS. STS only has domestic branches. This helps Vietravel
easily access many domestic and foreign customers.

2. Evaluate
According to objective evaluation, these 2 companies are using one 7Ps strategy but the
evolutions are different. Currently, Vietravel is larger than STS and this business has many
branches all over the world. But Saigontourist will defeat Vietravel some day. Because the
marketing of STS is better, the application about 7Ps is more clearly and can be effective for the
company. Vietravel have many malfunctions in the way applicate the 7Ps strategy, marketing of
this company is very low. Therefore, the chance of success of STS is higher than Vietravel.

Vietravel should invest more in marketing, advertising and promotion. This makes the company
able to attract a large number of customers, helping it grow and stay in the top travel services.

V.Conclusion
From the above report, each business should choose for itself a business strategy suitable for
its products and services. Enterprises must understand the importance of 7Ps for the company
and must apply it appropriately. That will bring high efficiency for the company.

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REFERENCES

Marketing Strategy. (2019). Retrieved 19 April 2019, from https://www.investopedia.com/terms/m/marketing-

strategy.asp

The Marketing Strategy: Segmentation, Targeting, Positioning. (2019). Retrieved 9 February 2015, from
https://marketing-insider.eu/marketing-strategy/

Saigontourist Marketing Plan | Market Segmentation | Tourism. (2019). Retrieved 19 August 2011, from
https://www.scribd.com/doc/62651429/Saigontourist-Marketing-Plan

Xây dựng chiến lược cho công ty vietravel - | XEMTAILIEU. (2019). Retrieved 16 August 2019, from
https://text.xemtailieu.com/tai-lieu/xay-dung-chien-luoc-cho-cong-ty-vietravel-1766952.html

What are the 7Ps of Marketing. (2019). Retrieved 6 August 2018, from https://medium.com/the-startup-growth/what-
are-the-7ps-of-marketing-ad2572f7eb16

nghiệp, K. (2019). Khái niệm và vai trò của Marketing Mix đối với Doanh nghiệp. Retrieved 4 March 2019, from
https://luanvan1080.com/khai-niem-va-vai-tro-cua-marketing-mix-doi-voi-doanh-nghiep.html#mcetoc_1d7fa4ko42

Extended Marketing Mix (7P's) | Business | tutor2u. (2019). Retrieved 7 September 2015, from
https://www.tutor2u.net/business/reference/the-extended-marketing-mix-7ps

Xây dựng chiến lược cho công ty vietravel - | XEMTAILIEU. (2019). Retrieved 17 August 2019, from
https://text.xemtailieu.com/tai-lieu/xay-dung-chien-luoc-cho-cong-ty-vietravel-1766952.html

guru. (2019). Retrieved 22 November 2018, from https://guru.edu.vn/cach-ung-dung-marketing-mix-7p-vao-kinh-

doanh-hieu-qua-nhat/

Phân tích chiến lược marketing dịch vụ (7p) đối với tour IKO travel của - Tài liệu text. (2019). Retrieved 16 August
2019, from https://text.123doc.org/document/3085769-phan-tich-chien-luoc-marketing-dich-vu-7p-doi-voi-tour-iko-
travel-cua-saigontourist.htm

NGHIÊN CỨU CHIẾN LƯỢC MARKETING 7P CỦA CÔNG TY DU LỊCH VIETR. (2019). Retrieved 23 March 2016,
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CHIẾN LƯỢC PHÁT TRIỂN KINH DOANH SAIGONTOURIST 2017-2020 | Tạp chí Du lịch TP.HCM. (2019).
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GIỚI THIỆU, ĐỊNH VỊ, 4P CỦA SAIGONTOURIST. (2019). Retrieved 7 January 2015, from
https://www.slideshare.net/Snownflake/gii-thiu-nh-v-4p-ca-saigontourist

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APPENDICES
Appendix-1: Compare the tour price list of Vietravel and Saigontourist (snownflake, 2019)

Vietravel Saigontourist

Valuation by age and type of visitors Valuation by age and star rating of customers

Price from: Price from:

4,790,000 - 9,150,000 VND/customer 3,470,000 – 8,350,000 VND/customer

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