According to a news article by the Ministry of Planning and Investment, Vietnam is home to 900,000 small and midsize enterprises (SMEs) that contribute to more than 60 percent of the country’s gross domestic product (GDP). This underscores the pivotal role SMEs play in Vietnam's economy, serving as the backbone of employment and economic output. Their contribution is crucial to the nation's overall growth, innovation, and sustainability, highlighting their significance in driving economic development. However, SMEs currently face a significant challenge: how to distinguish themselves and thrive amidst intense competition.
As reported by The European House - Ambrosetti, the Global Attractiveness Index 2023 ranked Vietnam in the 8th position out of 22 Asian countries. This is an innovative and reliable country index that offers a representative profile of the attractiveness and competitive sustainability of countries. And Vietnam had a notable 4.9-point increase from the previous year, highlighting the growing competitiveness within the country.
Similarly, the World Bank projects Vietnam's GDP to grow by 5.5% in 2024 and 6.0% in 2025, further indicating an increasingly competitive local market. In such a landscape, innovative marketing plans become crucial for SMEs to differentiate themselves and foster sustainable growth.
What is the marketing strategy for small businesses?
With numerous competitors vying for the same market share, the ability of local SMEs to stand out and effectively showcase their brand and products or services is more crucial than ever. This can be done by first understanding the 7Ps of marketing:
- Product: The goods or services offered to meet customer needs.
- Price: What customers are willing to pay for the product or service.
- Place: The distribution channels through which the product reaches customers.
- Promotion: The activities used to raise awareness and persuade customers to purchase.
- People: The staff and salespeople who represent the business.
- Process: The systems and processes that deliver the product to the customer.
- Physical Evidence: The tangible proof that a service was delivered.
Expanding from the traditional 4Ps, these additional elements provide a more comprehensive framework for boosting business success. By embracing the new marketing tactics discussed in this blog, SMEs can enhance their awareness and application of the marketing mix to gain a competitive edge.
1. Leveraging digital marketing
In today’s digital age, innovative digital marketing strategies are indispensable for Vietnamese SMEs. Digital marketing enhances the 'Promotion' aspect of the marketing matrix, providing powerful tools to increase brand awareness and reach.
According to Tech Jury, digital ads have the remarkable potential to increase brand awareness by 80%. Additionally, Web FX reports that 75% of people find online ads helpful in locating what they seek, highlighting how digital marketing facilitates the customer journey by making it easier for them to find desired products and services. Furthermore, Small Biz Genius reports that Pay-Per-Click (PPC) advertising returns $2 for every $1 spent, resulting in a 200% ROI, emphasising the significant impact that a well-executed digital marketing campaign can have for local SMEs.
To effectively reach and engage new customers, small businesses can experiment with various online marketing tactics, such as:
- Social Media Marketing: Utilise platforms like Facebook, Instagram, and TikTok to connect with a broader audience. Through targeted ads and engaging content, businesses can increase their visibility and foster community engagement.
- Influencer Marketing: Partner with notable local influencers who have a strong following in relevant niches. This tactic helps SMEs leverage the trust and credibility of influencers to reach potential customers.
- Search Engine Optimisation (SEO): Optimise the website and content to improve its ranking in search engine results. This increases organic visibility and attracts more visitors to the site.
- Email Marketing: Send personalised emails to both existing customers and prospective ones to nurture leads, provide updates on your business, and promote new products or services.
- Pay-Per-Click (PPC) Advertising: Run paid ads on platforms that your customers are engaged with to drive traffic and generate leads quickly.
2. Embracing content marketing
Content marketing can help establish SMEs as industry thought leaders. This strategy significantly enhances the 'Promotion' and 'People' aspects of the marketing matrix. According to Forbes, 90% of marketers incorporate content marketing into their approach, reflecting its essential role in connecting with audiences, building brand identity, and enhancing online visibility. Forbes also reports that content marketing has proven effective in boosting lead generation for 74% of companies. This highlights content marketing's capacity to engage and capture the interest of potential customers.
However, content marketing today goes beyond traditional advertising; it involves creating valuable, relevant content to attract and retain an audience, ultimately driving profitable action. To achieve this, SMEs can explore content such as:
- Blogs
- Videos
- Infographics
- Podcasts
- E-books
- White Papers
3. Utilising cross-channel marketing
Integrated, cross-channel marketing campaigns provide numerous benefits, enhancing the 'Place' and 'Promotion' aspects of the marketing matrix. Cross-channel marketing utilises different channels to deliver a unified message and customer experience. Unlike omnichannel marketing, which focuses on providing a seamless customer experience across all channels, cross-channel marketing emphasises coordinated efforts to ensure consistent messaging and maximise reach across selected channels.
Identifying the best digital marketing mix for one's business involves knowing how and where your target audience spends their time and tailoring campaigns to those platforms. It's also crucial to understand the nature of the business and where to promote it effectively. Different platforms serve various purposes: younger demographics might be more active on Instagram and TikTok, while professional audiences might engage more on LinkedIn. Ultimately, the choice of platforms and strategy should align with the business type and goals, ensuring the marketing tactics are both strategic and effective.
4. Boosting personalisation and customer experience
Personalised marketing has a profound impact on customer engagement and loyalty, enhancing the 'People' and 'Process' aspects of the marketing matrix. Personalisation not only drives sales but also has the ability to boost brand image and reputation.
According to HubSpot’s 2024 The State of Marketing Report, 94% of marketers say personalisation boosts sales. Additionally, a 2023 Medallia Market Research survey found that 82% of consumers say personalised experiences influence their purchasing decisions in at least half of all shopping situations.
SMEs can implement personalised experiences in their integrated marketing communications plan by offering:
- Tailored Product Recommendations: Utilising customer data to suggest products that meet individual preferences, enhancing the shopping experience and increasing the likelihood of purchase.
- Personalised Email Campaigns: Sending customised emails that address customers by name and offer relevant marketing content and promotions based on their past behaviour and interests.
- Customised Landing Pages: Creating landing pages tailored to different customer segments, ensuring that visitors see content and offers that are most relevant to them.
- Exclusive Discounts and Offers: Providing special deals to loyal customers based on their purchase history, encouraging repeat business and fostering customer loyalty.
- Personalised Customer Service: Offering support that takes into account the customer's history and preferences, ensuring more effective and satisfactory interactions.
- Custom Packaging and Delivery Options: Selecting the best shipping solution for a small business and allowing customers to choose how their products are packaged and delivered to add a personal touch that can enhance the overall experience.
- Interactive Quizzes and Surveys: Engaging customers with quizzes and surveys that provide personalised results or recommendations, making the interaction more engaging and useful.
