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Clever marketing vital when consumers tighten budgets
While Vietnamese are tightening their shopping budgets, they continue to buy in a more competitive market that vies for their attention more than ever, several industry leaders have said. The situation calls for a more clever approach to marketing by companies, they stressed at recent seminars and meetings in HCM City.
According to a survey in Viet Nam recently released by the market research company Nielsen, this year’s first quarter saw growth of 4.9 per cent in sales of consumer goods, compared to four per cent in 2008.
The survey, released recently at a seminar on marketing to children, said about 51 per cent of senior officials of production businesses in Viet Nam noted that customers chose to buy items of a smaller size.
Thirty-six per cent of the respondents said customers bought more when promotions were available and 23 per cent had shifted to cheaper items.
However, up to 57 per cent said consumers had purchased items of a higher grade.
According to Yamamoto Manabu, president of Japan’s Yamamoto International Marketing Institute, who spoke at a recent marketing seminar organised by the Viet Nam Chamber of Commerce and Industry, consumer demand continues despite hard times and marketing remains indispensable.
Professor Ho Duc Hung, director for the Institute of Economic Development Research of the HCM City University of Economics, said: "Most of the current global leading brands have grown from the recession. Many other brands and companies have used the recession to maximise their competitive advantage on the market."
Citing P&G, IBM and FedEx, Hung said they all enhanced marketing activities years ago during a worldwide recession, later becoming strong global brands.
"Realities show that when some brands increase their marketing activities in a recession, while their competitors cut spending, they can gain more market share with a lower budget than they did in a stable economy," said Hung.
"The key is how to manage their marketing budgets effectively rather than cut costs in a recession," he said.
Yamatomo stressed that businesses should create appropriate price policies based on the reality of the market, and adapt sale channels for better access to customers.
Research your market
According to other speakers at the seminar on marketing for children, research on the psychology of customers will also greatly help, as manufacturers will know how to adapt their operations and products to best meet customers’ requirements.
Developing marketing products for children, twens and teens, who all represent significant market segments, is important.
"You should understand child development. For example, in their first year they are totally dependent with instinctive observations and simple imitation. Between one to three years old is the period of dependence, acceptance and absorption, and as early as two years old, brand recognition begins," said Bryan Urbick, CEO of the UK’s Consumer Knowledge Centre.
"From four to seven years, they are in a period of acceptance and trust; thus products and communication should be straightforward but full of fantasy. Their choice in products are based upon their senses and experiences," he said.
Speaking at another recent event on marketing, David Mayo, president of Ogilvy & Mather Advertising Asia Pacific, said a downturn offered rare opportunities to outmaneuver rivals.
"But first you need to put your own house in order, and there are certain behaviours that will drive recovery quicker than that of your rivals."
"This would start with a rapid and thorough assessment of your own position in order to minimise your own vulnerabilities. Once aware of your own position, you are better placed to take advantage of the weakened position of others," he added.
He advised businesses to adapt when they needed because brands had to be relevant to their environment, or else they would not sell.
vietnamnews
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