By providing market offerings that satisfy customer needs/wants, the business achieves its own goal thus making a profit. Another way, businesses need more attention to customer care issues to satisfy the needs of consumers. From this business can create the greatest profit that they want.
Canon Company in Asia and Oceania sales climbed 4.5% year on year to ¥729.9 billion, accounting for 17.8% of consolidated net sales.
Generally three factors above were focused to satisfy the needs of customers. Due to meet this goal Canon focuses on promoting and developing the company.
4. The benefits and costs of using marketing approach
In present, successful organizations often focus on the benefits and costs of a customer focus. So, what are they? In this task will looks at them.
a) Benefits
Many organizations realize that they need understand the customer satisfaction (or customer delight) to long-term sustainable competitive advantage. They ensure the customer satisfaction and make them much more willing to take their business. Each customer feels satisfy with their product and will want to use that products or services because it is very good. It can lead to attract and retain their loyalty. At the same time, “outcome can lead to increased sales and a willingness to pay higher prices and thus lead to higher profits” (Course book, p.64).
If customers feel satisfied with the product or service, they may buy again from some same suppliers. When they feel happy using this product, they will return to purchase again and persuade others to use that company's products or services. Here, customers have also become a market to go free advertising for products or services by themselves. And the number of clients will ensure profitability for the company.
Particularly, excellent customer service is another key element in gaining customer loyalty. If a client has a problem, the company should do whatever it takes to make things right. For example, if a product is faulty, it should be replaced or the customer's money should be refunded. This should be standard procedure for any reputable business, but those who wish to develop customer loyalty on a large-scale basis may also go above and beyond the standard. They may offer even more by way of free gifts or discounts to appease the customer.
For instance, “With the establishment of Representative Office in Canon, Ho Chi Minh City and Hanoi in January 2003 and January 2004, Canon provides marketing, training and support services directly to the target use equipment; office equipment and conditions link images. Canon works intimately with the network of distributors and dealers warranty service nationwide. Many training programs held regularly on products and after sales service were held to equip the distribution channels and channel official warranty product and service warranty” ().
b) Costs
“In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer and further costs of transaction as incurred by the acquirer over and above the price paid to the producer”
().
Costs include some or all of the following:
- Advertising the new product or service through the media advertising (newspaper, magazine, internet, TV, billboards, and so on). For Canon Company in Vietnam, the media advertising is really common, especially internet advertising. In today's technology driven world, Internet advertising is the easiest way to improve the online customer base of Canon’s product. Each advertisement that is given they must pay a certain cost (time and money). This cost depends on the type of ad.
- Agent commission – cost is the amount of remuneration paid to the mandate that the agent or broker intermediary about the services they did. For example, Magazines in Viet Nam: amount paid a subscription agency for its efforts in selling a product, based upon a percentage of the price paid by the product. Agents are usually paid 80% to 90% of the selling price, depending on the expected impact of that magazine on the agent's total sales goal. Some magazines are featured in order to draw attention to other titles the agent sells, and the publishers of the featured magazines are rewarded with lower commission payments.
- Salesmen time - this is the time when the salesmen to focus on customer orientation. Seller must spend more time to persuade their customers to buy products or use services. The introduction of this product comes with a friendly, warm in order to bring confidence to their “god”. It unlike the sales orientation which cares the sales in the market but not persuade. For example, in Viet Nam, a salesmen must be very good PR, they not only spend time to represent the products but also have to build the company image with consumers. It is very necessary.
- Initial discounts – this is Price strategy in the marketing mix 4P that business does well to use the market. When launching a new product, business makes strategic customers attraction is that sales initially off for new products. So, attracting a large number of customers. When Canon's new products sold in the market, the company will open a round of promotions to customers to promote the brand and attract more customers
Moreover, different costs from customer to customer can arise out of the following:
- Order size - depending on the size order that the cost of delivery will be different. But in present, each product Canon ordered by phone or email are free delivery to take place for customer.
- Management time is the use of optimal time to complete the work. Each activity is assigned to one or two people responsible for certain time.
With these problems are said above to show the benefits and costs of using a marketing approach to doing business in Vietnam.
5. The macro and micro environmental factors in Vietnam which might influence Canon’s marketing decisions
Figure 2. Market environment
The marketing environment surrounds and impacts the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment and ' the 'micro-environment'.
- The micro environment factors
These are internal factors close to the company that have a direct impact on the organisations strategy. These factors include:
- Customers
Organisations survive on the basis of meeting the needs, wants and providing benefits for their customers. Almost Canon customers are interested in photography and technology, they expect in a lot of Canon products. Canon put out a product satisfies all tastes of customers, products have been increasingly improved (compact, many functions...)
- Suppliers
Increase in raw material prices will have affected on the marketing mix strategy of an organisation. Closer supplier relationships are one way of ensuring competitive and quality products for an organisation. In 2001, when Canon in Vietnam, them have only 7 vendors upcountry, up to now it be 90 and the end of this year, this number can be up to 100. They are almost the manufacturer components ().
- Shareholders
As organisation requires greater inward investment for growth they face increasing pressure to move from private ownership to public. However, satisfying shareholder needs may result in a change in tactics employed by an organisation. For instance, The satellite business is Canon Vietnam Co. in Que Vo Industrial Zone, Bac Ninh as Company Limited VS Industry of Vietnam, Mitac Precision Technology Vietnam, Vietnam Dragon Jet, Longtech Precision Vietnam ...( )
- Competitors
The success business and any actions will depend on the level of competition in its markets. In some markets is one of the dominant companies. This is called a monopoly. If you are in a monopoly position may allow you to exploit consumers with relatively high price and you can provide a customer service worse than if no other choice. “Canon faces competition from HP, Brother, Epson, Lexmark etc. Canon earns revenues primarily from the manufacture and sale of these products domestically and internationally” (Source scenario).
Macro-economics is a sub-branch of economics research on the characteristics, structure and behavior of both the economy in general. Macro-economics is general a field, it is research on the economic cycle and study the decisive factor for sustainable economic growth. The macro-environment factor includes Political (and legal) forces, Economic forces, Society forces, and Technological forces. These are known as PEST factors:
In Canon Company, the businesses are to consider their operating environment before starting a marketing campaign. In fact, the environmental analysis must be conducted continuously and in all aspects of the plan. First, for Political factors, Canon Company always upholds honesty, integrity and fairness to the Canon from Vietnam continue to receive the assistance and cooperation from partners’ integrity. So they signed the legal documents with the government to ensure the benefits and prestige to the company. Such as “CANON VIETNAM'S POLICY ON GIFTS AND PAYMENTS” (). At the same time, the Philosophy of the group Canon is "symbiotic." With Corporations Canon, this is understood broadly as: "All people regardless of race, religion and culture, living together and work harmoniously to future ". This is what the government is always appreciated.
Second, for Social factors, Canon constantly promotes activities to contribute to society. Activities include: Preserve environment & culture; For the next generation; For the industrialization; Smiles to everyone.
Figure 3. Signing ceremony of “Canon Friendship School Chain” Project ()
Finally, for Technology factors, Canon Inc knows that Technology is a crucial factor for competitive advantage of a business; it is the main driving force of globalization. Thus, they always try to technological innovation and design to create new products with higher quality and more features to attract customers. For example, Both SELPHY ES3 & ES30 come with over 10 image effects, 3 of which are brand new (Starlights, Nostalgic, Modern bright & Pinhole) to add liveliness to photos. The Canon SELPHY ES3 has a new wide-angle viewing 3.5-inch LCD monitor and includes one gigabyte of internal flash memory. The Canon SELPHY ES30 has a 3.0-inch high-resolution LCD monitor and includes a variety of ways to customize and optimize photos. Both compact photo printers have been designed with portability in mind with the newly designed carrying handle.
6. Market segmentation
Nowadays businesses realize that they can not attract all the buyers in the market, or at least they can not be the same way that can attract all buyers. Buyers are too large in number, too spread geographically, needs and how they buy products too varied. About the business is able to meet the needs of the market they are very different because they differ in capacity, professional.
So instead spread the capacity to serve all demand in the market, each enterprise should determine for themselves part of the market that they are able to serve the best, most beneficial.
Most businesses today leaving general market strategy, they started to market-oriented selection. As a result, will be able to have the market segments they serve only to retreat or as long as influenza and the market segment they determined, steep health service.
Thus, we can say target market segments in order to identify market segments that companies will compete and do business segment is not competitive. There are number of ways which a customer market can be segmented:
With Canon Company, Marketing specialists conducted the three market segments as: market share by demographic group, the geographic group, and group behavior. For geographic groups, as you know, Canon was in Vietnam from 1980 through authorized its distributors. In the past five years, it sets up a Bubble Jet Printers production in Hanoi and two representative offices in Ho Chi Minh. These are the largest population concentrations and they focus many social classes. Setting shops or dealers like that will help the company to ensure their business more because it helps companies that focus their efforts right market, building themselves a particular way from a particular image, strong, clear and consistent ability to fund business has been exploited effectively. And the busiest places and prosperous population will have more customers aware and interested in Canon products.
After that, they base on the demographic groups to segment market. The statistician market survey and find out age range of specialized products SELPHY ES3 & ES30 and Laser Printer, for example. Within easy reach of their customers. But the disadvantage given that there is no bases to believe that some of the same age have similar needs ready to buy goods.
In addition, for behavior groups, the company Canon division also conducted consumer market as homogeneous groups of characteristics such as reason for shopping; looking for benefits, the integrity, the number and rate of use, consumption of strength ... these factors will help companies easily make series of new products to satisfy customers. For example, easy to use for home and small office, Canon introduced Laser Printer LBP3250 and LBP5050 laser printer market leader with latest Hi-Speed USB 2.0 connection and fast in the light. Or ideal for private home use, users will find the Laser Shot LBP5050 perfect for all their printing needs, the LBP5050N with a network interface ideal for small offices whereas the LBP3250 will prove to be useful in both the home and small office environment.
In general, if businesses can determine the correct market segmentation, businesses will control the competition of rivals, gradually as the market.
7. The choice of the targeting strategies for the company’s products
Target marketing Canon products a marketing mix for one or more segments identified by market segmentation. Target marketing contrasts with mass marketing, which offers a single product to the entire market.
Market segments should be evaluated according to how they fit the firm's objectives, resources, and capabilities. Some aspects of fit include:
- Whether the firm can offer superior value to the customers in the segment
- The size of the market
- The diversity of products
- The impact of serving the segment on the firm's image
- Access to distribution channels required to serve the segment
- The product cycle
- The diversity of the market
- Strategic competitor
- The firm's resources vs. capital investment required to serve the segment
The better the firm's fit to a market segment and the more attractive the market segment, the greater the profit potential to the firm.
For Canon Company, they based on criteria such as: resources of the company, the diversity of products and the diversity of the market. Vietnam is becoming an investment location open and attractive to investors. Vietnam is a real potential country. Mr. Kageyama said last year Canon 4000 recruiting workers but has received more than 12,000 records. Factory workers were learning assembly within 3 weeks and then they can work with ultra-small devices correctly. Most of Canon's engineers can communicate in English, while the workers are creative, skilled and always learning. (). With the resources giant, Canon always great goals and encourage the implementation of work beyond the maximum.
In addition, Canon Inc. is a that specializes in the manufacture of imaging and optical products, including , , and . Canon is a manufacturer of business and consumer imaging products which includes printers, scanners, binoculars, compact digital cameras, film and digital SLR cameras, and lenses. With a variety of products and variety of models has helped the company bring the perfect life, satisfying the demand for images and technical crowded customers.
In the Diversification market, Canon Company always focuses on key areas such as Hanoi, Saigon. With the development strategy of the two big markets in the country, the company has brought in large profits for themselves.
Above are the main factors to influence the market access of the Canon Company. It is also said to be part of the closely held strategy.
8. Customer buying behaviour.
In fact there are many factors that affect human decisions related to the purchase. Actually the purchase of customers was never simple, research and explore the behavior of buyers is an extremely important task for managers in operations to ad.
Figure 4. Influences on buying behaviour
There are four factors of influences on customer behaviour: cultural, social, personal, psychological. Each factor makes a part of the psychology of consumer purchasing.
Particularly for the company Canon, the establishment of two branches in two different locations (Hanoi and Ho Chi Minh City) was influenced by the following factors:
These factors educated have often great influence and the most profound to the behavior of consumers. Culture is the cause first and most basic decision behaviors and needs of consumers. Here, the Canon Company wants their products used the confidence and loyalty. Company’s offices are located in advanced education, the law closely and high taste. This is also where many social classes like high-tech products such as Canon.
Psychology and consumer behavior as defined by social factors. The role and status of individual often influences decisions greatly to meet the needs of individuals because the roles and social status often associated with income individuals. For example, for the Canon Company's customers are mainly customers having relatively high income, middle-class family upward, because each product is given at a certain price and in accordance with that classes.
Another example, customers in Hanoi influenced by the opinions of others more before making a decision (affected by the introduction of the family, by friends, by neighborhood, by colleagues, partners) and will never buy what others buy. Therefore, to gain the trust of Hanoi consumers, not just win the confidence of a person that is the collective confidence.
Canon always valued this factor to the operating activities of their marketing. The factors which are age, occupation, lifestyle and personality are the managers identify and get clear when the establishments of branches are in two major cities of Vietnam.
Saigon and Hanoi are two large and populous city of Vietnam. Lifestyles of the two places are also very different, so when preparing the marketing and advertisement they focused a lot of the lifestyle and goods to the best benefit. In Hanoi, customers want each product must be right with the money they spend. By contrast, customers in Saigon (the South) is very liberal. They only see the importance of form and style products. Therefore, these factors will affect greatly to the revenue of the company. Canon will have to improve both form and quality to the service in two locations.
The buyer behaviour is also influenced by four points: motivation, perception, learning and attitudes. Therefore, when considering the market realizes that South customers purchase arbitrary, North customers scheduled before coming. South customers are not pressured by psychologists assert yourself, show class and not in the habit of saving to pay for expensive products, so they tend to buy cheaper products and more shopping and more comfortable. Spend more, but only 62% planned to spend the month and not more closely as consumers Central and North. They prefer a fixed price rather than to the desert. Therefore, please make their lives more comfortable fit shopping habits.
Ho Chi Minh City also preferred marketing activities at point of sale more than other cities. Thus, the attention to distribution channels, sales operations and the lace on display in the store serves as the Canon Company in Saigon is important.
Vietnam a country of many different consumer groups, the general conclusions of from the Vietnam Nielsen study. By Aaron Cross - CEO Nielsen said that Vietnam "Businesses Vietnam should continuously diversify business strategies and product ideas for two different cities: only a strategy is not enough only to attract all consumers in Vietnam.”
CONCLUSION
With problems are said above, they are important for Canon marketing processes. The report covers the market for “SELPHY ES3 & ES30” and “Laser Printer” and the standard practice of Marketing Professionals. Hoping that through this report can figure out what the market Canon.
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APPENDICES
1. A marketing orientated organization
In Canon Company, we will identify through two following elements: product oriented and production orientation to oriented market.
Second, “product oriented - an organization or a company which is product orientated focuses on innovation and creating products which may or may not satisfy customers needs” (). In Canon Company, “the world leading image solution provider today announces the launch of its new products in Vietnamese market. This product possessing amazingly intelligent functions and attractive looking figures, the new products offer users not only convenience, quality and versatility but also a unique lifestyle. In printer product line, for example, Canon has made printing a way of life with its SELPHY ES3 & ES30, premium compact photo printers. SELPHY ES3 and ES30 alike possess good looking shapes that best fit in home interior and irresistible effects that bring charm to users' photos”. Or “Perfect for home and small offices, Canon introduced the Laser Printer LBP3250 and the colour laser printer LBP5050 lead the market with latest USB2.0 Hi-Speed connectivity and lighting fast print out. With better features and quicker printouts while assuring both quality and quantity, the two economical laser printers have met the printing needs of SOHO users”. These are the strategy of developing product. This company uses the last technology to come up with what they believe consumers want. It might be the case with many of their products that the saying "the customer doesn't know what they want until we give it to them".
Finally, “Production orientation - companies which focus on production are interested in producing large quantities of products, they are focused on economies of scale in order to achieve financial gain. They are often driven by costs and the centre of the organisation might sit between the finance and manufacturing departments. They may have only one product or a range of products”(). For “Canon Vietnam Co. Ltd. specializes in the production of Bubble Jet Printers. Canon Vietnam Co. Ltd. contributes 25 percent of Canon’s total global production of Bubble Jet Printers and is currently the largest exporter in Hanoi with exports representing 53 percent of all exports by the capital’s foreign sector, and earnings more than US$200 million”. In addition, “Canon (China) Co., Ltd. serves as the regional headquarters for sales and marketing functions in Asia, excluding Japan and Korea. In Asia and Oceania, sales climbed 4.5% year on year to ¥729.9 billion, accounting for 17.8% of consolidated net sales. Canon continued to step up sales promotions in countries and regions recording strong growth, such as China, India and Vietnam”. It shows the production orientated in this company.
