Topic: The effect of Vietnam macro environment on marketing activities
In general, marketing strategy plays an important role in production process of the organization and how to give the valuable marketing decisions always is one of the hard mentioned questions for all organizations. Micro and macro environment are factors that influence on the marketing decision of the organization. Thus, the organization wants to make marketing activities in Vietnam, this organization should understand about Vietnam before making decisions. In this exercise, topic will be talked about the effect of Vietnam macro environment on marketing activities of the organization/company in Vietnam as below:
Macro environment: there are four factors of macro environment, it also calls PEST. PEST stands for: political, economic, and social/cultural and technology.
Political/legal factors: the politics of Vietnam takes place in the framework of a single – party socialist republic. The central role of the Communist Party of Vietnam was reaffirmed in the current constitution, adopted in April 1992. Vietnam is the member of the United Nations, Asian, APEC, and became a member of World Trade Organization in January 11th 2007. Joining in the World Trade Organization on January 11th 2007 will continue to profit for the exporters of Vietnam by gradually moving the market barriers and trade restrictions were established to increase competition. With the integration of Vietnam and the population of Vietnam are 87.28 million people, the organization/company will have opportunities to open their business outside Vietnam and enter in the international market. Besides that the organization will also meet many difficulties when integrating in the international markets. For example: the company/the organization will have strong competitors with high technology in production process of the product in that market, so the organization/company will must focus on marketing activities to advertise their brand in the international market.
Legal factors: legal factors are very important in doing business in Vietnam. Doing business in Vietnam, the organization/the company must understand about laws of Vietnam such as: the labor law, the law safety of production process. The organization should comply with laws of Vietnam.
Economic factors: economy of Vietnam is in the high growth, the countries with the highest growth rate in the region from which stimulates the purchasing power of society, especially the upper world when they are interested in the product innovative and unique products more.
Economic factors: Economy of Vietnam is in the high growth, the countries with the highest growth rate in the region from which stimulates the purchasing power of society, especially the upper world when they are interested in the product innovative and unique products more.
Vietnam’s economy is growing too fast. Emerging market investors tend to gravitate towards countries that have accelerating economic growth prospects. In Vietnam, which has been battling regular bouts of economic instability, is one of the few- fast growing countries in the world where investors want to see growth slow down. When Vietnam joined World Trade Organization, there are some advantages and disadvantages of competitors. We can see about some advantages as below:
- The organization/company can find new international market to export their products and introduce their products for international markets and international customers.
- Besides that, the organization/company can import the best materials for production process of product to increase quality of products.
- The organization/company can learn many experiences about doing business from international organizations.
Next some advantages, there will also have some disadvantages which the company/organization must meet when Vietnam integrates into World Trade Organization:
- There will have many competitors who the company meets in the new market. The new market here means that this is the international market if the company wants to export their products.
- The organization/company can meet some difficulties with local markets because there will have some international competitors to penetrate into Vietnam markets.
- Sometimes the organization/company can also meet many difficulties in doing marketing activities with international markets.
Social/cultural factors: Vietnam is a country where has wide and deep traditional culture, there are so many potential markets that the company can research and develop. Moreover, the large population is also the features that effect on the marketing decisions of the company.
Technological factors: nowadays, the technology is developing and plays an important role in any kinds of business from industries, agriculture to commercial and production, etc…it can help manufacturers enhance the productivities save time and money, save employees, reach to customers easier, improve the revenues efficiently catch up with globalization. As a market leader, in the production of product, the company always focuses on investing high technology in manufacturing process and improves quality of products, research and development about many new products. On the other hand, the organization/company also should care about quality of materials to produce products such as: sources of materials.
Có thể bạn quan tâm: Dịch vụ viết thuê Assignment