Contents I. Introduction3 II. The Body5 1. The marketing communication mix5 1. 1. Personal selling6 1. 2. Sale Promotion6 1. 3. The relationship between communication mix’s elements8 2. Understanding of buying behavior9 2. 1. Stimulus10 2. 2. Process15 2. 3. Respond17 3. Environmental and managerial forces affecting personal selling for Ginvera products in Vietnam19 3. 1. External Environmental factors19 3. 2. Internal Managerial factors23 4. Main types of personal selling suitable for Ginvera Vietnam26 4. . In Business to Customer market26 4. 2. In Business to business market27 5. Principle of personal selling applicable for Ginvera Vietnam29 5. 1. Sales professionalism29 5. 2. Negotiation skills29 5. 3. Relationship marketing30 6. The stages in the personal selling for Ginvera Vietnam32 6. 1. Prospecting33 6. 2. Planning33 6. 3. Approach34 6. 4. Presentation34 6. 5. Handling Objection35 6. 6. Closing the sales35 6. 7. Follow up35 III. Conclusion36 Appendix37 Table of images37 Table of figure37 References38
I. Introduction From the first day of establishing from 1985 by talented founder L. D. Waxson, Ginvera has climb step by step to the peak of beauty care industry in the South East Asia as the most prominent leader. The company appears as home of more than 500 dedicated employees and thousands others who work in production. The wide ranges of about 90 Ginvera’s products diversify from skin care to bath products, from shampoo to diapers, which are developed sensibly for both men and women, adults and kids.
Furthermore, by taking advantages of modern technology, coupled with strong and strategic foresight along with determination of the talented founders, all products are created, developed and improved in the more effective, much safer and more affordable away. With clear mission, vision and objective as well as appropriate business strategies which help the company keep a constant profitably and grow in stable way, Ginvera has built a significant reputation around Asia, especially South East Asian countries such as Malaysia, Singapore, Thailand, Indonesia and even China.
However, in Ginvera’ point of view, Vietnam does still appears as a brand new and potential market which can help the company not only reinforce its reputation effectively but also a considerable revenue every year. One the other hand, in Vietnamese customers’ perspective, Ginvera still appears as unfamiliar name although their products are sold in most of the supermarket especially in mega cities like Hanoi and Ho chi Minh city. As a result, on the way of market developing, Ginvera has planned to do some researches on Vietnamese market as well as customers’ behavior in order to have a comprehensive overview about this potential market.
Based on this purpose, this report will provide Ginvera an overall best practice of Sale Planning and Operation exclusively for Vietnam market which mostly mention about personal selling, including the principles, types of personal selling, both environmental and managerial forces affecting personal selling, the stages of this process as well as how the understanding of buyers’ behavior can be applied and use effectively in this process. Moreover, before mention all kinds of these issues, the report will bring an overview about communication mix and its roles in relationship with Ginvera Vietnam with wo instant examples: Advertising and personal selling. II. The Body 1. The marketing communication mix Marketing mix as known as 4P’s includes 4 main elements: product, price, place and promotion in which the promotion is considered as the appearance of any marketing campaign. The promotion does not only decide how the images of product are built but also decides partly how the product was sold to the hand of the customers. In order to build an effective and reasonable promotion, Companies often seeks for help from communication mix which includes: personal selling, advertising, public relations, sale promotion and direct marketing.
In order to achieve a distinguish look between two main groups, this report will discuss about two first different types: personal selling and sales promotion, representative for personal and non – personal selling. Figure 1. The Communication Mix 2. 1. Personal selling Personal selling is defined as direct oral communication designed to explain how an individual’s or firm’s goods, services, or ideas fit the needs of one or more prospective customers. This type of selling is often used in high – valuable products’ purchasing such as a house or car.
Naturally, when a people decide to buy a product or service valuable, especially compare with their income, they will consider very carefully with high degree of involvement. On the other hand, this type of selling is also popular in personal product or services which beauty cares appear as instant example. Personal selling is considered as the most intensive but expensive method in the communication mix. While other non – personal selling methods focus on the general public, personal selling as its name, focus on individuals as well as personal aspect.
Every person has different personality, different characteristics with different objectives and different requirements. In some industries like beauty care, is it necessary for the customers to have personal consults, in this case, personal selling plays the leader role as the most suitable and effective way for both company and customers’ perspective as in the win – win formula. By this way, the salesperson can understand exactly what the customers’ needs and wants, hence, provide some appropriate advices which can satisfy the customer.
In personal selling, selling is not the most important way as its impression; the more important thing is building long – term relationship with the customers. Obviously, even if the customer cannot find her necessary products at this time, however, it does not mean that she will not come back if she still feel satisfy with the services. Moreover, salespeople appear as the face, indicate the spirit of the company, play an important role in building image of the company in the customers’ heart. However, personal selling does not appear as a perfect selling method, where put the customer in the center of sales deals.
Firstly, the cost for this method is significantly higher than these other non – personal selling methods. Secondly, not all products or all market are considered suitable with this method. 2. 2. Sale Promotion Unlike personal selling, sale promotion is defined as any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. In more details, sales promotion activities are temporary changes in the marketing mix, used to achieve tactical objectives. Moreover, this type of selling is also designed to attract not only end consumer as usual but also the sale team and intermediaries.
Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, discounted price, prizes, product samples, and rebates. Among these types, discount, coupon and product samples are the most popular types in Vietnam’s beauty care market, both online and offline. Firstly, Sale promotions often used when the company releases a new line of products as a way to introduce them to the customer and encourage them to try on and feedback to Company. Secondly, companies often use sale promotion as “push and pull” strategy by hitting directly on the customers’ psychology.
Most of Vietnamese housewives or young girls love discount, coupon and so forth. In some cases, they buy lots of unnecessary thing only because of the gift or sales’ percentages. Understanding this behavior, companies often release a lot of sale promotion campaign as a way to stimulus the buying power and increase sale volume significantly. Image 1. Coupon, discount, free gift set, etc is some example of Sale Promotion On the other hand, as other non – personal selling types, sales promotion playing the vital role on creating and maintaining awareness about the products for the customers.
As a new comer in Vietnam market, Ginvera can apply this method to attract customers’ attention and create a friendly image in their mind. However, due to fact that the sale promotion is often used to achieve tactical objective, hence, unless Ginvera plans to use cost leadership or cost focus, the sale promotion should not be used too frequently. 2. 3. The relationship between communication mix’s elements Generally, while personal selling appears as an intensive and expensive method, it is still consider as the most effective way to building desire, changing attitudes and the most important, convert them to sales and revenue.
Furthermore, unlike other non – personal method such as advertising and Public relation mainly focus on creating awareness but does not affect significantly on customer’s action, the sale promotion have one common with personal selling on hitting the mark of customers’ behavior, convert them into sale but in more public instead of personal aspect. In fact, each elements from communication mix has its own strength and weakness, hence, they can support for each other effectively. Normally, the companies often used a combination of these element in parallel way in order to achieve the most effective results.
For example, the customer can know about Ginvera’s skin care products’ line through Direct marketing (e. g. through flyers) or Advertising, at this time, sale persons in showroom or through consulting online system appear to provide them more detail about the products. In this process, the sale promotion as first discount can support effectively as a stimulus factor. Level of effectiveness Advertising, PR, exhibition, etc Personal selling O Awareness InterestDesireAction Decision making process Figure [ 2 ]. The supporting of communication elements to each other in nfluence on decision making process (Sources: course book, page 469) 2. Understanding of buying behavior Selling is an art, and salespeople are artists. Mainly focusing on each individual customer, understanding buying behavior appears as the golden key for any salesperson to achieve the customers’ heart both in short term and long term as well as close the sale. In Vietnam, personal selling is still considered as a new comer with most of the customers. However, in near future, it will be more popular and familiar with the customers due to the improvement of the standard of livings.
Twenty years ago, the only thing Vietnamese people care about is how to fulfill their starving stomach, now everything has changed positively. As a result, salespeople are required to understand how the customers think and behavior. One of the models which reflect this process briefly is SPR. Figure 3. SPR model 3. 4. Stimulus 3. 5. 1. Marketing Mix Marketing mix is one of the most popular tools which are used for analyzing about products, price, place and promotion in order to build up an effective marketing campaign. Basically, all these elements influence in customers’ behavior and buying process in a comprehensive way Figure 4. elements of marketing mix * Product: Ginvera’s products diversities from skin care for both men and women, products for kids to households’ products. Living in a tropical country, most of Vietnamese women own an oily or combination oily skin with blemishes. Fortunately, the main rocket of skincare line from Ginvera is exacted from green tea, which is very suitable for working with Vietnamese skin’s problems. Therefore, the company can hope for the welcome from potential Vietnamese customers. Moreover, the salesperson can also base on this competitive advantage to attract customers and persuade them to buy Ginvera’s products.
On the other hand, other product in skin care like such as bio – essence or white radian are also received a lot of positive comments from consumers which can help the salesperson effectively in attracting customers and selling. Image 2. Some products of Ginvera * Place: In Hanoi, the only popular product which can be seen in supermarket and cosmetic stores is Bath products. Beside other popular brands come from Unilever, Ginvera’s products are arranged with other foreign brand such as The Body Shop (UK), Shiseido (Japan), Queen Helen (US), etc.
Obviously, on the reputation’s aspect, Ginvera cannot compare with such brands, however, in the customers’ mind; it partly determines the origin as well as the quality of Ginvera’s products. When Ginvera comes to Vietnam, beside the regular selling in supermarket chain such as Citimex, Intermex, Co – op mart, etc, the company should consider about establishing its own showrooms in shopping malls and plaza not only as way to determine the quality and enhance the reputation of this brand in Vietnam but also provide the effective consult through salesperson team for the customers.
Image 3. Ginvera’ bath products are arranged with other products in Star Supermarket 36, Cat Linh Street, Hanoi (Photo taken in March 27, 2011) * Price: According www. ginvera. com, Ginvera’s product price is pretty high than other popular brand in Vietnam, in both skin care and body bath line. In fact, the price of skin care line is almost equivalent with other famous brands from UK and Korea which is very popular in Vietnam these recent years. Product| Origin| Capacity| Price| GINVERA Green Tea Jade Dark Eye Circles Roll Away| Malaysia| 15ml| S$18. – 320,000VND| Pond’s Age miracle Eye cream| Thailand| 20ml| 200,000VND| Skin food Salmon Brightening Eye cream| Korea| 30g| 350,000VND (portable way)| The Body shop Vitamin E eye cream| UK| 15ml| 299,000VND (showroom)| Moreover, in Vietnamese perception, UK or Korean appears more trustworthy rather than one coming from Malaysia. Therefore, the salesperson should point out some convincible features of the product to persuade the customer that the money they given worth with the effectiveness that the product will bring them. * Promotion: At this time, the products from Ginvera in
Vietnam are imported directly from Malaysia through import countries with limited kind of product and quantity. Because this reason, the products are not got the promotion in an appropriate way, except the discount from the supermarket chains where it is sold. As a result, even the Ginvera’s bath products are presented in most of big supermarkets, it does still appear hardly for customer to notice and give them a try. Moreover, promotion also plays an important role in stimulus customers open their pocket, even in case they do really need the products or not.
Image 4. In Malaysia and Singapore, Ginvera ask some famous artist to be their spokesperson in promotion campaign 3. 5. 2. The social influences The social factors which have the most powerful influence on customers’ buyer behavior as well as buying process include: culture, social class and reference groups (family, friends, etc). * Culture: One culture factor that effect on the Vietnamese customers’ choices is preferring – foreign – product mind. Accept Chinese products, every product which have foreign label are welcomed in Vietnam.
Coming from Malaysia, Ginvera can expect for the similar welcome from potential Vietnamese customer. On the other hand, Ginvera’s products are produce locally in Malaysia, where some famous cosmetics companies such as Maybelline (US) established their factory. The salesperson can focus on this point to persuade the customer buy the products. Another factor coming from the preconception about the price of the products: the higher must be the better which can appear as an advantage for Ginvera. Beside, the different buying culture between the geographic areas should be care about by salesperson in order to win customer heart.
While Northern people have to consider carefully before buying anything, the Southern people tend to open the pocket easily when they feel that they like the product. Therefore, understanding these behaviors will help salesperson deal with customer more effectively. However, there is a very negative preconception about personal selling exist in Vietnamese mind. Some years ago, when the personal selling started in Vietnam, a lot of deceptions happened in which swindles play salesperson and took a lot of money from unluckily customers.
This fact lead to antipathy eye look stares in any salesperson that rings the door bell. Therefore a direct marketing type like this should not be deployed in Vietnam. More details will be discussed later in this report. * Reference groups: In fact, reference groups can be family, friends, etc. Obviously, the review of products coming from other users, especially acquaintances, will appear more trustworthy rather than the introduction from salespeople. In recent year, Google has made information become more accessible.
As a result, women do not need to wait the salesperson provide information about the products. Just by a click, they can find out a lot of comment about the products through beauty blog, products’ review pages from magazine and the most popular now is forums. The beauty forums where women gathered to exchange information about products, beauty methodology always receives a lot of care with considerable high views. Naturally, women do easily fall in love with some products just because of positive feedbacks from other women.
In this case, the relationships of customers as well as peer group’s pressure should be taken advantages by salesperson. One of the effective ways is referencing policy which means after selling the product to customers, the salesperson of Ginvera should ask them for feedbacks but also recommending for other friends. * Social class: Actually, about twenty years ago, investing money on the beauty care appears as something very luxury and dreamy that only high – class women can think about. Now, everything has changed due to the improvement of living standard.
Understanding the potential demand, cosmetic companies given out various line of products from popular line to luxury one, which can satisfy any women who care about beauty. In Ginvera situation, the target segment can be middle and high income women who live in mega cities and cities like Hanoi, Ho Chi Minh City. 3. 5. Process The next element of SPR model mentioned about the process. While the first S mostly focus on external factors influence on buying behavior of customers, the P elements mostly focus on the internal ones where the personality of the customers as well as psychological influences play important role. . 6. 3. Personal Influences There are many personal factors can influence on the buying behavior of the customers, includes ages, income, gender, living style and so forth. These factors divide customers to different segment with different target products. In this situation, the salesperson needs to understand deeply and comprehensively about these differentiations, hence, they can satisfy every customer by their appropriate consults and also close the sale. The different between ages lead to different thinking and mind and different care.
Jumping out from sour purity, a lot of Vietnamese girls from 18 – 24 years olds meet with oily and blemishes skin problems. Unfortunately, the pollution environment in Vietnam pushes everything in significant worse situation. Givera’s green tea skin care line can working well with these problems. One positive thing that, these girls are young and free to trying new thing, even they coming from Malaysia rather than other famous brand of Korea or Europe. One the other hand, women who walks over 30 years old keep their attention to wrinkle and anti – aging problems where the bio – essence can uphold their power.
However, these women often consider very carefully before open their pocket for products coming from Malaysia due to the preconception. Income is another factor that the salespeople should care about. High income does not means that they are always ready to burn their money immediately after listening palatable consult from salespeople. According to the price of Ginvera products, the target segment should be middle and high income customers. However, it does not mean that the salesperson only care about one high – income lady who comes to the showroom after an low – income young student who comes first.
Obviously, the student can earn high income in the future and become a potential customer. More dangerous, after being ignoring, the young student can leaving negative comment about the sales team of Ginvera with other people she know and burn the reputation of the company. 3. 6. 4. Psychological Influences Why people buy? They buy for both practical and emotional reasons. Everything is presented by the golden word “motivation”. People buy something they need result from a lack of something desirable. For example, a girl with dry skin needs moisturizer cream in the winter.
In other situation, some other girl wants are need learned by other person; hence, they use a lot of products so that they can give them an appropriate review on. In this aspect, the influences from reference groups also uphold their power as this report discussed above. For example, a girl who need to find a whitening cream, she find out a lot of recommendations from Internet through beauty blogs, beauty forums, etc. Obviously, these recommends appear more trustworthy than consult from salesperson, in spite of the fact that everybody has different skin.
Therefore, salesperson needs to get a good hold of information through Internet in order to handle in every situation and satisfy the customer. The next factor is “Economic needs” which means the best value for the money. When people consider buying something, they will wonder if the money they pay worth the product they purchase, especially in the inflation storm in this time. However, in some cases, some girls and women cannot control how much they spends on beauty care stuff such as clothes, shoes, skin care stuff and so on. As a result, they are willing to open pocket even they does not really need the products or not.
In this case, the salesperson from Ginvera can use some special techniques to close the sale before the customers change their mind and burn their money on something else. The most important factor under psychological influences is buyer’s perception. This perception can come from customers’ past experiences or from the knowledge they learnt. The modern women have more chances to understanding bout beauty care rather than the women who come from last decades. As the development of the Internet, the customer can access information about the product only by one click.
Therefore, salespeople always have to keep in mind that, the customer are testing their knowledge about beauty care as well as the products and close the sale or not depend on the quality of their consultation. The most important thing is the salesperson should providing the disadvantages instead of hiding them in order to provide consult effectively. 3. 6. Respond Figure 5. Buying process Each step in buying process is influence significantly by both internal and external factors. As this report discussed above, for example, the first step – problem recognition is influence by the psychological factor named motivation.
Meanwhile, the next two steps: information search and evaluation of alternatives are influence by social influences such as culture and especially the references groups. After these stimulus and process steps, customers will respond by making decision, buying or not buying. The respond behavior can be expressed through buying behavior as well as buying practice or post purchase behavior. Normally, the customers, especially women are easily to fall in love with the products after hearing lots of positive review from other users or palatable sentences from salesperson.
It is the golden time that the salesperson hold in order to close the sale before the customers can change their mind. However, in this time, instead of convince the customers that the products is 100% perfect and they need to buy it, the salesperson better use the technique named “push and pull”. Obviously, “You do not need to buy it immediately, but I am not sure that this amazing moisturizer will be still available or not when you come back” appears more effective than “You must buy this moisturizer before it is out of stock”.
Ginvera’s salespeople need to keep in mind that the decision belongs to customers instead of them. Therefore, the customers will feel that they are respected and will not feel regret after buying products. After buying and using the products, customers will have feedback for the products, even if the product works for them or not. It is the time for company to collect information and provide after sale services. One call asking about the feedback will satisfy any customers because they can feel that their opinion is valuable with the company.
In these call, the salesperson should ask the recommendation for other customers. Maybe, this product does not work well with the customers, but it does not mean that they will not say something positively about the product or the service to other people or even comeback to Ginvera to choose another products. Therefore, it appears as golden chances for the salesperson to build up long – term relationship with customers and develop other new relationships. 3.
Environmental and managerial forces affecting personal selling for Ginvera products in Vietnam In order to establishing effective marketing planning for enthusiastic sales team, Ginvera Vietnam must be identify what environmental factors that effect on salesperson as well as personal selling process. Basically, the marketing environment can be divided into two parts which are external environment and internal management. 4. 7. External Environmental factors 4. 8. 5. Macro factors In order to analyze macro factors effectively, this report will use the PESTEL model by Michael Porter. Figure 6. PESTEL model Politic and Legal: Vietnam is a socialist republic country with only one Party: Vietnamese Communist Party. The unity in political system makes Vietnam appear more potential with a political environment stably without any significant signs of terrorism or civil war. In addition, Vietnamese government has built a Law on Foreign Investment which occurred from 12/11/1996 in order to help foreign firms like Ginvera can approach the Vietnam’s business environment easily. However, the import tax for cosmetic and skin care product still stay in 36%, higher than other South East Asia countries from 4 to 5 times.
Therefore, the cosmetic price in Vietnam still stays in high place compare with customer pocket. * Economic: In 2010, Vietnam’s GDP increased 6. 78% compared to 2009 while the number of the first quarter in 2011 decreased to 5. 43%. According to the delighted number, Vietnam stills a potential and charming destination for foreign investment. However, the inflation still maintain in high peak which is forecasted at 9. 5% according to the World Bank. Moreover, the increase in dollar exchange rate, the petrol and the electricity make the population tighten their belts.
In this case, cosmetics and beauty care stuffs will enter the luxury goods list that people will be consider very carefully before open their pocket. As a result, Ginvera salespeople will meet more hinders in order to persuade customers buy and use their products. * Social: Vietnam has a high population with over 86 million people. Therefore, with stable and advantaged business environment, Vietnam appears as potential market with any foreign investor due to the potential demand, and Ginvera Vietnam is not a special exception. Additionally, the Vietnam population is considered as the young population level with 55. % populations in working age who have open mind and feel free to try on new things such as Ginvera. Moreover, the living standard of Vietnamese people is improved significantly in recent year, hence, people have more chances to care about beauty as well as approach high – quality products. For instance, the online cosmetic market through portable way in www. muare. vn, www. enbac. com, etc, is operating in high degree, reflect the tremendous demand of this potential market. * Technology: Infrastructure in Vietnam is quite adequate with enough developed transportation system.
Therefore, Ginvera Vietnam does not have to meet with any significant difficult in transport and deliver goods through distribution channel to the customers. Moreover, technology plays an important role in the communication between the company and the customer. The development on the telephone and especially the Internet bring the change in purchases routine of customers. Instead of going to the far store to buy anything buy cash, the only thing customer have to do is make a phone call or a click, transfer money through banks and wait for goods delivery.
Therefore, the company should develop the online selling system in order to give benefit to the customer, make them satisfy and building long – term relationships with them. Moreover, Ginvera should establish a consultation online system with professional sales team who trains carefully. Beside the consultation functions, this system is also used effectively for providing after sales services for customers as well as collect feedback from them. * Environment: In fact, all the products of Ginvera are imported directly from Malaysia.
Therefore, they do not need to care about the manufacturing environment criteria which imposed by Vietnamese government. However, the products from Ginvera still have to satisfy the minimum safety standard of Ministry of Natural Resources and Environment in order to enter Vietnam. In other word, the ingredient of the products must not contain toxic chemicals which are prohibited in Vietnam. In this case, Ginvera’s sales team has to understand this fact as the essential information about the products in case some hard – to – please customers can ask about. 4. 8. 6. Micro factors
According to Michael Porter (1996), there are five basic competitive forces which is considered as the micro environment influence on company, includes: bargaining power of customers, bargaining powers of suppliers, competitors, threats of substitutes and threats of new entrants. In order to determine the attractiveness from beauty care industry as well as understanding the intensity of competition in right way, Ginvera Vietnam should analyzing the micro environment by applying 5 forces model. Figure 7. Michael Porter’s 5 forces * The threat of new entrants: In beauty care industry, it appears not so difficult to entering the market.
For instance, a girl can produce natural handmade skin care product such as rose toner, waki pumpkin jelly, handmade soap, etc and open a shop online through internet. With small economic of scale, the shop does not need construction permit in order to operation. However, these small shops appear not power enough to compete with well – known brands. In other aspect, with significant bigger economic of scale, everything has changed. The required capital for establishing a company is not low; adding with complicated produces can keep the threat of new entrants not so high. The threat of substitute product: Handmade beauty care products which are produced 100% from natural ingredient appear once more time. However, Ginvera’s products are also exact from natural material such as green tea; bring more customers more convenient in packaging with longer expired time. This fact appears advantages of all industry beauty care product that the salespeople can point out for customer. Therefore, the threat of substitute product remains low level. * The bargain power of buyers: Vietnamese market is considered as a potential market with more than 86 million people.
With such prices, Beside Ginvera, the customers have more choices on other well – known brand name from Europe, USA, Korea, Japan, etc. Moreover, the switching cost in beauty care is not so high that a girl only loses about some hundred thousand VND to change her skincare products. Therefore, the customers are easy to change from their old skin care or household products to Ginvera, but also easy to change from Ginvera to another skin care or household products. In this situation, the bargain power of buyers stays in high level, which require appropriate selling and after selling policy from th