Essentials of Marketing for Working in Vietnam

Since April 2023, we have often seen news of an economic slowdown in Vietnam.

The slowdown in consumption in Europe and the U.S. seems to have had a negative impact on demand in the construction and real estate industries, which has accompanied the cooling of demand in Vietnam’s textile industry.

In light of this situation, it is expected that competition for market share in the Vietnamese market will intensify in some industries, and it will be more difficult than ever to attract new customers.

In fact, until now, we have often heard this kind of idea when we have consulted with our clients.

• At any rate, if we had a website, people would recognize us, wouldn’t they?
• I’m sure our products and services will sell as long as we can gain recognition.

 

However, in a situation of declining demand in the future, it will become increasingly difficult to achieve results with only these point measures.

Therefore, I would like to explain the essential marketing concepts that will be important in the upcoming Vietnamese market.

By reading this article, you will be able to develop a strategy that is not just a series of dots, but a line that connects them, and will bring results to your marketing activities in Vietnam.

Understand the basic structure of marketing initiatives (The Purchase Funnel)

First, let’s take a bird’s-eye view of the roles and overall structure of each of the basic marketing initiatives for marketing in Vietnam.

The process from the time people become aware of a product or service to the time they take purchasing action can be summarized in one framework, as shown in the image above (top row).

“Awareness”→”Understanding & Interest”→”Desire”→”Action”

It is impossible for people to understand things without recognizing them, and once they understand them, they start to become interested in them, right? And once they are interested in a product or service, they will research it in detail on the Internet or social networking sites, and if they can identify with the benefits that it will meet their concerns and needs, they will take action to purchase it.

Basically, marketing has a suitable measure for each of these five processes.

 

Areas where web advertising and SNS are suitable

Web advertising and social networking are ideal for expanding awareness to potential customers who have never heard of the brand before.

Of course, it is important to take into account content that is highly attractive and arouses interest, but the limited amount of information that can be posted makes it difficult to convey the details and appeal of products in a systematic manner.

 

Areas where Youtube is suitable

Youtube is well suited for the process from acquiring awareness to generating interest.

Videos can contain a large amount of information, making it easy to convey the features and appeal of a product, and by strengthening SEO within Youtube, you can reach potential customers who have never heard of the brand before.

On the other hand, the current specifications make it difficult to have users take actions such as purchases or inquiries on Youtube alone, so the mainstream usage is to link the videos to the website by directing users to the website or embedding the videos in the website.

 

Areas where Website is suitable

Because it is characterized by the ability to systematically post a large amount of information, it is suitable for promoting understanding of the product, explaining its features, and promoting its benefits in order to deepen interest and gain sympathy.

Since there are various means of contact available today, it is possible to have people inquire or purchase directly through a web form or cart, or, for BtoC, through Zalo, Facebook, LINE, and other means.

 

What should be emphasized in future marketing activities in Vietnam?

Having understood the basic structure of marketing, we will now discuss three elements that will be more important in marketing in Vietnam in the future.

 

Benefit and uniqueness of products and services

The first key element is to make sure that the benefits and uniqueness of your product are well articulated.

Basically, people buy goods and services to solve a problem they have or to satisfy a need. This is because people pay for the benefits they receive from obtaining them.

If the product that solves their problems and issues is a commodity product that is available in the market, they will make a purchase decision based on its uniqueness that other companies do not have.

Even if there is not much difference in the functionality of products and services, advantages other than functionality, such as price, after-sales service, and brand reliability, can also be uniqueness.

For consumers, the strongest reason to purchase a product is that its benefits and uniqueness are aligned. Conversely, there is no reason to purchase a product for which neither benefits nor uniqueness are clear.

This is why it is important to clearly articulate benefits and uniqueness when developing products.

 

Customer communications

Second, it is also important to communicate the benefits and uniqueness of your product to the appropriate target audience without omission.

Even though you have an attractive product, if consumers are not aware of it or do not understand its appeal, it will not lead to sales.

That is why it is important to utilize appropriate media and tools for each process, such as “awareness,” “promotion of understanding,” and “arousal of interest,” as explained in the previous section, and to communicate the appeal of the product without omissions.

Quality can be improved in customer communication by being especially aware of the following five points.

1. Does the product benefit match the concerns of the target audience for whom you want to sell the product?
2. Are you taking appropriate measures in response to the purchase funnel?
3. Have you selected the appropriate media and tools to convey the appeal of the product to the target audience?
4. Are the benefits and uniqueness of the product expressed clearly?
5. Is the information conveyed in a positive manner that inspires the desire to purchase?

 

On the other hand, there are some points to note in customer communication.

That is, if the benefits and uniqueness of the product or service are weak, no matter how much communication is measured, it will not contribute to sales.

The benefit and uniqueness of the product or service is a prerequisite before customer communication.

 

Comprehensiveness of marketing measures

The third is the comprehensiveness of marketing measures.

It is highly likely that one-off measures will no longer be sufficient for marketing in Vietnam in the future.

• Let’s start social networking or web advertising for now to let many people know about your products.
• Inquiries will increase once the website is renewed.

If you still have these ideas, we recommend that you rethink your marketing strategy from the ground up.

From now on, tools and means will be multiplied according to the purchase funnel, and the benefits and uniqueness of the product will be appropriately communicated through line measures, which will finally lead to true results.

• Tools for Awareness
  = SNS and web advertising
• Tools to promote understanding and interest
  = Websites and Youtube videos
• Tools to get people to take action, such as making inquiries
  = Web sites and messaging apps such as LINE and Zalo

 

Summary

This time, we have explained the essential marketing concepts that are important in the Vietnamese market.

I feel that in Vietnam today, there are still many companies that offer each measure as a stand-alone, such as creating a website or web advertising on behalf of their clients.

However, in order to achieve marketing results in a highly competitive market, it is necessary to develop a strategy in which customer understanding, communication design, content design, information flow design, UI/UX design, and design elements are all connected along a single line.

We, ALIVE Vietnam is able to provide services that encompass all of these elements.

If you are interested in strengthening your marketing in Vietnam or enhancing your company’s brand power, please contact us for a consultation.

We will listen to your company’s issues in detail and propose the best solution.

 

Thank you for reading!

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