Relationship Between Marketing Mix Elements

affinity Between trade Mix ElementsBusiness today is actu distributivelyy competitive, every organizations ar facing with m all another(prenominal) a(prenominal) pressures Changeable and unpredictable business milieu, very sporting change of technology, to be survival, developed and successful requires caller-up have to move from a merchandise and selling philosophy to a guest and nutrient market philosophy(Kotler et al., 2005). every last(predicate) companies try to gain the best of the guest rejoicing to maximize the profit because they believe that node propitiation is very of the essence(p) for the survival of any organization. Many look into shows that consequences of client felicity atomic number 18 many client gaiety leads to positive word-of-m knocked out(p)h (Anderson, 1998 Swan and Oliver, 1989 Hoyer and MacInnis, 2001)), guest contentment leads to client retention (Curtis et al., 2012 Hennig, 1997 Kotler, 1994, p.20 Bitner, 1990), customer at onement leads to commitment (Curtis et al., 2012 Singh, 2006), Customer leads to repurchase attention (Anton, 1996).The point for companies is how to enhance the customer merriment? Which genes dissemble on customer satisfaction and this race is negative or positive? To act all these questions, companies impart have the appropriate strategies for success. Many look fores show that thither argon many factors that affect customer satisfaction. correspond to Hokanson (1995), these factors including friendly employees, courteous employees, noesisable employees, serve upful employees, accuracy of cathexis, billing timeliness, competitive pricing, helping eccentric, level-headed rate, billing clarity and quick servicing impact on customer satisfaction. It is obviously that all these factors belong to Marketing riffle. Moreover Doyle also recommends that Most merchandising professionals would answer that the right market mix is the one that maximizes customer satisfacti on and returns in the highschoolest gross sales or market get by (Doyle, 2003) also suggests that customer satisfaction and sales can al focussings be increased if companies offer more result features, mortifieder values than competition, higher(prenominal) promotional budgets and the immediate availability of the intersection, of outstanding customer service and brave (Doyle, 2003).Ford Motor companionship is orbiculate gondola cause industry leader in the world based on US. Ford has its history of 109 old age for existent and developing. Fords strategy is nidus on developing vehicles that deliver exceptional value to our customers across globose markets. Ford crossway vehicles sport bold exterior designs, while offering great handling and performance. not only atomic number 18 they great to drive with interior enhancements in comfort and connectivity only fuel rescue across every vehicle in our portfolio is a reason to buy(Ford, np)Ford worldwide market sh ar reported end of 2011 7.3%, regional Ford North America 17.3%, Ford Europe 8.3%, Ford Asia southeastern Pacific 2.7%, South America 8.3%Ford Vietnam is a joint venture established in 1995 amid Ford Motor Company (75%) and Song Cong Diesel Company (25%). Cumulative market share up to SEP 2012 is in fifth position with 5.3%, meanwhile, two market leaders, Truong Hai and Toyota gain 30.9% and 29.1%. Fords market share in Vietnam is nearly double in comparison with its regional market share Asia South Pacific. But the cranny surrounded by Ford and two market leaders in Vietnam is very huge. Since, Fords products are diversified ranging from low end to high end compared with its big competitor that is Toyota. Fords products are known as full family of vehicles offering leading tone, fuel efficiency, safety, smart design and value (Ford, np).This big gap excites the looker to evaluate the take aim of customer satisfaction of Ford gondola users in Vietnam, explore what factors im pact on this customer satisfaction by testing the family in the midst of trade mix pieces and customer satisfaction of Ford auto users in Vietnam. Beside some reasons above, market mix and customer satisfaction are two theories that investigateer is very interesting to direct. Finally, topic of look into can be named as to a lower placeExploring the family amidst selling mix brokers and customer satisfaction of Ford Car users in Vietnam1.2 Research objectivesThe seeker intends to mull on Ford auto customer satisfaction in Vietnam to evaluating the direct of customer satisfaction and testing the relationship between marketing mix elements and customer satisfaction of Ford auto users with below objectives To essay the knowledge of marketing mix, its element and customer satisfaction concept. To examine the relationship between marketing mix elements and customer satisfaction of Ford auto in Vietnam To measure the level of customer satisfaction of Ford auto in Vietna m To recommend some effective solutions to improve the marketing mix to gain higher level of customer satisfaction.1.3 Research questionsIn order to have a clearly understand of all queries or so the topic regarding to relationship between marketing mix and Ford users customer satisfaction. This interrogation tries to answer below questionsIs there possible relationship between marketing mix and customer satisfaction of Ford Car users in Vietnam?What is the level of customer satisfaction of Ford auto in VietnamIn what way is the marketing mix can be improved to enhance Fords customer satisfaction in Vietnam.1.4 The significance of studyMany academic research are conducted in testing the relationship between marketing mix and customer satisfaction in different areas, especially in service sector such as Tourist, university, caf, banking,..But a few of them are found the car industry. Moreover, most of academic research is out of Vietnam market.Although the study issue reflects so mewhat the real situation of level of customer satisfaction on Ford users in Vietnam, but the target population is quite small and limited in small region, so that the research go onings and result only is employ for reference or partly apply in the customer satisfaction enhancement for Ford Motor Vietnam or suggesting for gain ground research in future.1.5 Boundary of the study motorcar market in Vietnam is quite huge, due to geographical dispersion and time constraint, the researcher only conducts the keep an eye on on customers who own Ford Car in Ho Chi Minh City. Furthermore, the respondents seem very invade with the things. The study focuses on 4 elements of marketing mix and their impact on customer satisfaction. So the result only presents partly for auto market in Vietnam.1.6 The organization the study..Chapter 1, the introduction part of research including background of study, why the researcher choose this topic, the research aims and objectives is given, the researc h questions is identified, the significant of study is discussed, Finally how this research can be applied in practices, the boundary of study and structure of study are presented.In the Chapter 2, the literature look back related to marketing, marketing mix and its elements, customer satisfaction, the relationships between customer satisfaction and marketing mix, the recommended solutions for improving marketing mix elements in order to gain high level of customer satisfactionThe Chapter 3 provides the methodology and procedures which used to collect data for the study. The researcher will perform the surveys with the customers who are development Ford Car in Vietnam, by this survey, researcher will measure the level of customer satisfaction, to explore the relationship between marketing mix elements and customer satisfaction. By this study, the power will use decimal method to design the questionnaires and use them during the surveys. These data will be the chief(prenominal) data to weather the answer of the second and third research question.The researcher will conduct one survey which will be conducted with customers who are using the car of Ford to evaluate the level of customer satisfaction and explore the relationship between marketing mix and customer satisfaction. The purpose of this survey is to get the quantitative data to support the answer for the second and third research questions, whereby to give the best solutions for improving marketing mix effectively for Ford Vietnam in enhance its customer satisfaction.In the chapter 4, Microsoft excel 2007 and SPSS 16 software will be used to input all the raw data of the respondents and do the analysis, statistic and present them using table, charts, or graphic. because the researcher will analyse and discuss the run a riskings base on the responses. And present the meaning and reason of the result as well as link with the knowledge in the literature re visible horizon to support the answers fo r the research questions and achieve the research objectives.Chapter 5 contains a summary of the findings of this research providing the conclusions for the findings and discussion and suggest for further research.The pensive statement will be in the Appendix A which provides the reflection on research results and in the flesh(predicate) development that the researcher had gained from this study. The following pages will present the chapter Review of the Literature that will review all existing literatures and knowledge to support data to achieve the objectives of this research.Chapter 2 LITERATURE REVIEWChapter Introduction gibe to Saunders et al. (2007) A small review of the literature review is critical part of any research. It is necessary to help the researcher to develop a thorough soul of and acumen to previous researches that related to research questions and objectives. By critically discussing, evaluating what are strengths and weakness, referencing works or studies t hat has already been undertake, drawing out key points and presenting them in logically argued way. To complete the literature reviewing, the researcher has not only the skill of search pertinent knowledge but also appraise it.Sharp et al. (2002 cited in Saunders et al. 2007) suggests that there are two major reasons exist for reviewing the literatureFirstly, the preliminary search that help to generate and refine the research ideas.Secondly, often referred to as the critical review or critical literature review,Moreover, Saunders et al. (2007) emphasizes that any researches and finding will be judged in relation to otherwises peoples research and finding. Main purpose of literature review is to help researcher to develop a good understanding and insight into relevant previous research and the trends that have emerged.Gall et al (2002, quoted in Saunders et al.,2007) provides some other purposes of literature review such asTo help researcher refine further the research question an d objectivesTo highlight research possibilities that has been overlooked implicitly in research to date,To discover explicit recommendations for further researchTo help researcher avoid simply repeating work that has been done already,To sample current opinions in newspapers, professional and trade journals, thereby gaining insight in to the aspects of the research questions and objectives that are considered newsworthy,Discover and provide an insight into research approaches, strategies and techniques which are appropriate to own research questions and objectives. It could be said that most of researches argue that the critical review is very necessary. Briefly, review the literature relates to Searching academic research, theories which must be relevant to research questions and objectives. Profound understanding, critical review, give arguments, appraisal, evaluating, discussing, referencing But it is not just descript and list down the any literatures. commentary the above parag raph is not necessaryThis chapter aims to provide a theoretical background bases on existing academic knowledge for research topic Exploring the relationship between marketing mix elements and customer satisfaction of Ford auto in Vietnam. By doing this, the researcher could further refine three research questions and four-spot research objectives which had been specified in Chapter 1 to highlight research possibilities that have been overlooked, discover explicit recommendations for further research. It helps to avoid repetition to sample current opinions, provide an insight into appropriate research strategies and methodologies. A good literature review expands on the reasons behind selecting a particular research question. Thus the researcher plans to find a strong theoretical foundation provided for the study from a wide range of sources which relates to previously produce researches Books, journals, some ideas in newspaper, then assess the strengths and weaknesses of previous works, justifying arguments by referencing previous researches. The sources of literatures were cited following the requisite standard. In this Chapter, some hypotheses will be proposed for testing to answer research questions and archive research objectives in Chapter 1.MarketingMarketing is very critical for every business. Kotler, (2002) suggests that the scope of marketing relates to ten types of entities Goods, function, experiences, events, persons, places, properties, organizations, information, and ideas. It shows that marketing gets snarly to all activities of the business from identify the customers and customer needs, creating product and services, communicating to customers, sell its products to target customers, making its customers quelled The researches and studies regarding marketing are numerous. Below are some definitions to the highest degree marketing concept.An earliest definition of marketing is the performance of business activities that direct a flow of goods or services from producers to consumers (AMA,1935). This concept generally mentions about performance of activities, but these activities were not clarified, the concept is quite wide with simply mention about goods and services from producer to consumers. Since marketing be get bys an interest topic that many scholars get involved to study. A lot of definitions were come up by researchers Perreault McCarthy (2002), Kotler P Levy SJ (1969) Kotler et al. (2005) Another concept of marketing which get many unlike debates is that Marketing is simply figuring out what you have to do to sell your product or service for a profit Keefe (2004 p.17). Generally, the most accepted recently is the newest definition of AMA is that Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (AMA,2007).2.2 Marketing mix conceptThe term of marketing mi x first developed by Bornden (1964), the sources of his inspiration come from the concept of his colleague Jame Culliton (1948, cited in Borden, 1984) which described the business executive director is a mixer of ingredients, the marketing elements are the same with ingredients and marketing manager mixes some of these together to expire the marketing mix strategy. Borden (1964) also identified twelve controllable elements of marketing mix reaping planning, pricing, branding, line of reasoning of distribution, personal selling, advertising, promotion, packaging, display, servicing, physical handling, fact finding and analysis. This is a list of elements or ingredients to make up a marketing program. Depending on each situation, the marketing manager will blend the number of these elements to constructing and formulating an appropriate marketing program to satisfy their customer needs and demands in target market. By this way, both company and customers objectives are achieve d.McCarthy (1964) regroups twelve elements of Borden to four categories or usually called 4Ps now overlap, hurt, promotion, place. Each of these elements comprises some of 12 elements of Borden. And some research also suggested that if manage this mix properly, company will be successful. Mccarthys concept of marketing mix chop-chop began to appear in marketing text. Judd (1987) suggested one more new important P is People. Furthermore, Boom Bitner (1981) expound 4Ps to 7Ps, he argues that product and service are different, so 4Ps is inadequate, so it is new marketing mix figure of speech for service is Product, monetary value, Place, promotional material, People, physical evident and process.The later definition is that marketing mix is the controllable variables the company puts together to satisfy its target group (Perreault MCCarthy, 2002). This definition is similar with definition is tha marketing mix is the set of controllable tactical marketing as well asls product , hurt, place and promotion that the firm blends to produce the response it wants in the target market (Kotler et al., 2005). Both definitions mentioned about controllable factors to satisfy the customer in target market. Each mix element includes its factors as belowProduct Variety, quality, design, feature, brand name, packaging, service, warranty.monetary value List price, discount, allowance, payment period, credit term.Place Channel, coverage, assortment, location, inventory, transport.Promotion Advertising, promotion, personal selling, publicity.Kotler et al. (2005) also suggested that An effective marketing program blend marketing mix elements into a duplicate programme design to achieve the companys marketing objective. When marketing mix concept is introduced, there are many researches to evaluate and criticise on it. Constantinides (2006) identified two significant limitations of marketing mix is internal orientations and inadequacy of personalization.Both Gronroos (19 89) and Popovic (2006) suggest that the 4 Ps and the marketing mix are production-oriented definitions, companies focus much on internal product, the market may be neglected. check to Mller (2006) marketing mix too focus internally alternatively of customer behavior. Many researches show that the limitations of marketing are on Production-oriented or too focusing on internal instead of standing on customer point of view. in that respectfore, Kotler et al. (2005) recognizes that 4Ps represent sellers view of marketing tool available for influencing buyer, it is not from customer point of view. In fact that each marketing tool must deliver a customer social welfare, company should view 4Ps as customers 4CsProduct Customer need and want,Price Cost to the customer,Place Convenience,Promotion Communication.Doyle (2000) argues that marketing mix approach leads to unprofitable decisions, because it is interconnected with financial objectives such as Increasing shareholder value. Kotler (1984) proposes two additional Ps of political advocator and Public Relation to the marketing mix to cover more factors that is important for business as well, those are Political power and Public Relation.harmonize to Schultz (2001) the 4 Ps are increasingly little relevant in todays market, despite of what they are still learned in marketing courses, academics write and res each about themSince marketing becomes a vital role in success of any business. Many researches are conducted on marketing mix and its element, more extend elements are suggested, it is obviously that marketing mix or some researches show many limitations or debates, but marketing mix is still the practice exercise to deploy company strategies effectively. And up to date, there is no any new models can completely replace for marketing mix 4P.2.3 Marketing mix elements2.3.1 ProductA product as defined by Armstrong and Kotler (2005) that is anything that can be offered to a market for attention, acquisition, use, or function that might satisfy a want or need. The latter can be best understood in terms of the manner of voice communication of the particular service. Ferrell (2005) opines that the product is the core of the marketing mix strategy where retailers can offer unique attributes that differentiates their product from their competitors. According to Borden (1984) product is characterized by quality, design, features, brand name and sizesAlso from Kotler et al.,( 2005) product can be split up into two categories Tangible and intangible product, the tangible product is a merchandise that can be touched, hand, finger it, the intangible product or normally call service, which could not be touched or hand, unobservable. Product concept in this research refers to tangible product that is a car of Ford auto Vietnam. According to Kotler et al, (2005), product concept is including Core product, augmented product and actual product.Core product regarding to main enigma solving good or core benefit that consumer really wants to buy. When they obtain, this product will resolve their problems. The main purpose of buying a car is for travelling, safety and protection for health.The actual product is related to Parts, features, design, product quality, styling, brand name and packaging or some more attribute that combined to core benefit of product. For a car, these attributes are most important for manufacturer attract and retain its customersThe augmented product which including supernumerary consumer service or benefit build around the core and actual product Solution, warranty and regenerate service, instruction how to install or using, help desk, call center, free delivery. In those attributes, customer service and bear on is more important that auto manufacturing have to pay attention.In order to satisfy the need of customer, the product designer have to consider all three components of product, because customer expect to buy three of benefit and they feel happy or satisfy when gain enough all the benefit. Many researches tried to find down the impacts of all above attributes of product to customer satisfaction.Kotler et al. (2005) suggested that Outstanding marketing companies go out of their way to keep their customers satisfied. Companies know that satisfied customers make repeat purchases and tell others about their good experiences with the product. Regarding to product quality and customer service factors in automotive industry in India, Asghar et al. (2011) found that the quality of products in Tata Motors Company enhances customer satisfaction, and also found that there is a positive relationship between customer satisfaction and customer loyalty in the context of the Indian automotive industry. Product quality is one of factor of Product in marketing mix. The research shows that the more customers satisfied with quality of product, the more loyal they are with this product. And this may lead to the repurchasing companys prod uct. Customer service is also a factor of Product element, since it becomes very important for any manufacturing company, especially in auto industry.Bastos and Gallego (2008) also provide evidence that customer service quality directly affects satisfaction and satisfaction directly affects the positive behavioral intentions. Rodoula (2005) finds that consumers perceiving a product being of high quality are more satisfied with the product than consumers perceiving a product being of low quality. There are a positive relationship between perceived quality and customer satisfaction in Shoes industry. It is suggested by Lien-Ti and Yuching (2001) that there is a positive relationship between product quality and customer satisfaction on automotive industry. Yelkur (2000) also finds that the critical elements in the services marketing mix bewitch and positively effects customer satisfaction.Moreover, the relationship between marketing and customer satisfaction is highly expressed among researchers (Zineldin Philipson, 2007). Cengiz and Yayla (2007) find that marketing mix having a positive effect on satisfaction and loyalty on word of mouth communication from accounting offices in Turkey. Mohammad et all (2012) suggests that Product and tourists Satisfaction are positively related to each other.Although not all attributes of product such as Quality, design were tried if any relationship or impact on customer satisfaction, but at least, there are so many studies show that product generally positive impact on customer satisfaction, and quality of product, customer service were tested, especially in automotive industry.So far there are no any research found that no any relationship between Product element or its factors with customer satisfaction. Or the negative impact of Product on customer satisfaction. So in this research the author tries to do the research the relationship between Fords product which were sold in Vietnam market and its customer satisfaction. So the hypothesis will be proposed as belowH1 There is a positive relationship between Fords Product and its customer satisfaction.2.3.2 PricePrice is one of very important element in marketing mix and the only element that produce the revenue to company. Price is very the most flexible element in mix, it can be change very fast to adapt with every stage of product life cycle, or to stimulate demand in short time, or can reduce to support selling of other product in production line or set to keep loyalty of customer. So that pricing may play an important role in helping to accomplish the companys objectives at many levels. (Kotler et al., 2005. p.668).Price decisions must be coordinated with product design, distribution and promotion decisions to form a conformable and effective marketing program. The definion of price that is the amount of money charged for a product or service, or the total values that consumers exchange for the benefits of having or using the product or service( Kotler et al, 2005)Similarly with Product element, Price also gets many scholars involved to study the relationship with customer satisfaction. A research of Oliver Swan, (1989) shows that cognizances of price unfairness lead to dissatisfaction and the purchase intention is regularised by satisfaction. This was consolidated by later search of Campbell (1999) that perception of price unfairness may trigger consumers negative emotions such as dissatisfaction, disappointment, and anger. So as a result, customers do not come back for repurchasing this product any more. Augene (1996) investigated the association between customer satisfaction and willing-to-pay or price tolerance, the finding shows that negative association between level of customer satisfaction provided by company and the degree of Price tolerance. In the telecommunication sector, Muzammil et al. (2010), also finds that both the factors Price fairness and customer service significantly contributed to explain customer satisfaction but comparatively price fairness had the larger impact on customer satisfaction than customer services.In another study of Herrmann et al.,(2007) on automobile concludes that customer satisfaction is directly influenced by price perceptions while indirectly through the perception of price fairness , demonstrate the influence of perceived price fairness on satisfaction judgments, Buyers price perceptions positively influences their perceptions of the fairness of price offers. Price is an important element in consumers purchases therefore it has a large influence on consumer satisfaction judgments. Homburg et al., (2005) investigates the effects of price increases at an individual level, the authors argued that customers react to price increases are strongly driven by two factors the magnitude of the price increase and the perceived fairness of the motive for the price increase.Soedijati Pratminingsih (2011) indicated that marketing mix has significant and positive rela tionship with students decision making for selecting a university for marketing mix. Another research of Muala Qurneh (2012) on Tourist sector shows that product, place, personnel and process significant impact on tourist satisfaction. It is less impact of Price on customer satisfaction, or it could be said that there is no any relationship with customer satisfaction. Because the tourists usually expect more on quality of tourist, instead considering price carefully. Martin Consuegra (2007) finds price fairness influences price acceptance indirectly through customer satisfaction and loyalty.According to Cheng et al (2011, consumers perceived price has a negative impact on customer satisfaction, which is that the higher the fast food industry product price is, the more it will reduce customer satisfaction. This result is consistent with the study result of Dargay (2007), and Hopkins (2007). Moreover, Cheng and Wu (2011) finds that when price increase reduces customer satisfaction in the global service market. Price increases as same as customers perceived price increase, it means that price fairness reduces. As a result, customers become dissatisfied with company goods or service. Kotler and Lane (2009) also proposed that there is a positive relationship between perceived price fairness and satisfaction. The more consumers perceive a price as gain, the higher their satisfaction. These findings also supports the idea that higher price may reduce customer satisfaction or consumption capacity. Martin-Consuegra et al. (2007) asserts that decision of customers to accept particular price relate directly to satisfaction level.Research on how price impact on customer satisfaction is very huge, most studies show that having the strong impact of Price and customer satisfaction in many areas, and this is the positive relationship. The more customer perceived fairness (or less customer perceived price), the more increase in customer satisfaction. The hypothesis will be te sted at belowH2 There is the positive relationship between price of Ford auto and its customer satisfaction.2.3.4 PlaceAccording to Kotler et al.,(2005) Place related to all the company activities that make the product or service available to target customers. Place refers to channel, coverage, assortment, location, inventory, transport. In the service sector, Place decisions refer to the ease of access which potentiality customer to a service such as location (distance to services sites) and distribution (e.g., home delivery, 24-hour availability) (Hirankitti et al., 2009). As same as with Product and Price, there are many previous researches to test the relationship between Place and customer satisfaction. Cheng et al., (2011) found that convenience has a positive impact on fast food industry customer satisfaction. It indicated that the more convenient, the more customer satisfaction will increase. This study result has corresponded with the study conclusion of Mahon et al. (2006 ) and Martinez-Ruiz et al. (2010). Gilaninia et al. (2012) also finds that the supply chain management has direct relationship with customer satisfaction. Mohammad et all (2012) points out that Place and customer satisfaction are positively related to each other. According to Kotler and Amstrong (2010) when channel is used in marketing system that maximizes efficiency, effectiveness, maximizes costs and delivers the great customer satisfaction for companies, because the channel is link between producers and final consumers. Palmer (2000) also believes that physical distribution (order processing, warehousing, inventory, transport) affect on customer satisfaction. Ryu Han (2009) proposed that customers perception of physical environment factors facility aesthetics, lighting, layout, and social factors had significant effects on disconfirmation and disconfirmation directly influence to cust