Why is marketing essential for businesses?
Globalization is a business development opportunity that large corporations in the world cannot ignore, because they have the advantage of resources and the advantage of being ahead of them through setting the rules of the game.
The development of technology, especially information technology, has removed all spatial and geographical barriers. Customers now have more rights than before. Thanks to technology they have better access to information about products, so they have more choices.
Technology has also helped shorten the time it takes for an idea to become a ready-to-go product. Previously a year car manufacturers could only come up with a new model. Today they can introduce to the market even 5.6 new car models in a year. On the other hand, technology has also posed a challenge for businesses: the lifespan of products on the market is shortened. If in the past it was normal for people to use a mobile phone for 2-3 years, it is normal for young people today, if after a year, you do not change your mobile phone, it is a big deal. strange.
Because the European and American markets have developed to a stage of saturation and stability, large corporations need to find new markets to maintain their growth rate. Vietnam is among the four countries that large corporations are interested in: China, India, Indonesia and Vietnam.
Marketing and Vietnamese businesses
The vast majority of successful Vietnamese businesses to this day have developed and matured from a market context very peculiar to Vietnam’s economic and political situation. Vietnam has gone from a centrally planned economic market where economic activities of enterprises are allocated according to top-down planning rather than supply and demand principles, and the market is clearly divided rather than competitive element. Others are formed from family foundations, entrepreneurs who soon recognized the opportunity and have made good use of it to develop to this day.
In terms of market characteristics, the Vietnamese market in the early years after opening opened up favorable opportunities for pioneers to explore. Why say favorable? The Vietnamese market in the early 90s was a market with a serious imbalance between supply and demand. The more businesses produce, the more people spend. Many businesses even get customers to pay cash before delivery.
Regarding consumer demand, since there is no solution to meet the need, until someone meets the need, consumers easily accept the product/service. They don’t give much consideration to quality and value.
Another point to note is that according to Maslow’s pyramid of needs, due to the low income at that time, consumer demand at that time also mainly stopped at “eat enough, dress warm”.
But the advantages of the early stages of economic development have gradually disappeared. Instead, there is fierce competition, the increasingly high and complex needs of consumers.
Buyers now rarely want to find a seller, but today’s businesses have to find a buyer. They even more refused to advance money as before, but on the contrary also demanded “favorable payment conditions”.
Today’s businesses also have to convince and prove to consumers the comparative superiority of their products compared to other products. Not only that, businesses also have to build relationships with customers to ensure ensure market stability. And to do that they need to build a customer-friendly corporate image.
But the factors that have made our businesses successful in the past are no longer relevant to help businesses continue to grow successfully in a new market condition, a fiercely competitive market, a new and fierce market. The competition is played by foreign companies, multinational corporations with decades of experience, abundant capital, and a staff that is equipped with knowledge to the teeth with battle experience. seasoned from other markets?
It is clear that in order to play effectively in the new market environment, businesses need to be equipped with knowledge to understand the new rules of the game, must have the skills and knowledge that are appropriate to the requirements of the market. new markets, and marketing capabilities are the most important competencies that create a company’s competitive advantage in today’s competitive environment.
We often cry that the world is unfair when the most value-creating stage of the value chain of agricultural products is often in the hands of businesses that do not directly cultivate and fertilize. While we refuse to look at their efforts and investments to create the competitive capabilities needed to help them dominate that high value creation step along the value chain. We need to understand that if a business only invests in production capacity, the best outcome it will have is to “dominate” the supply of raw materials.
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