Important and Justifications By 2000, few domestic Vietnamese

Important Results

? Non-price promotions have greater influence on subsequent consumer brand
choice than price promotions for high involvement product.

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?  Price-promotions are perceived to carry more utilitarian benefits than hedonic
benefits.

?  “Premium offers”, a non-price promotion, could positively impact on brand
loyalty for high involvement products.

?  “Discount”, a price promotion, could negatively impact on brand loyalty for low
involvement products.

?  Involvement is a crucial antecedent of the loyalty level to a specific brand and has
a positive relationship with it.

Background and Justifications

By 2000, few domestic Vietnamese companies knew and practiced marketing
strategically; marketing activities were done by only international corporations in
Vietnam. Nevertheless, since 2000, Vietnamese firms had started doing marketing for
their products/services but still at a very simple level. Most marketing activities were
above-the-line (ATL) activities. Almost 90% of total marketing budget spend for
advertising on television, radio, newspaper and billboard. Whereas, below-the-line
activities such as promotions, public relation, exhibition were given less effort and
attention. However, the period 2000-2007 still was the milestone in Vietnam marketing
history.

With the hit of financial crisis in 2008 – 2009, almost all of Vietnam companies had to cut
down marketing budget in order to survive the storm; only some “big guys” such as
Unilever, Mobifone, Vinaphone and Tan Hiep Phat – a rising star in beverage industry
were able to do television and online marketing.

In the post-recession period, there was an obvious shift in marketing performance from
mass marketing campaign deployment to differentiated marketing campaign focusing on
the “effectiveness”. Marketers these days have been balancing ATL and BTL activities.
Direct approach to end-users by communication at point-of-purchase or BTL activities,
especially promotions are preferred.3

Moreover, lack of product differentiation and slow growth rate in demand for consumer
products are possible explanations for the increasing need of sales promotions and the
obstacle that prevents advertising to effectively reach consumers. 4