Advanced application solutions to mobile marketing in Vietnam
Pham Thi Thu Huong, Tran Thi Thuy Sinh, Pham Thi Nga, Pham Thi Thu Huong/ MICA 2018 Proceedings
International Conference on Marketing in the Connected Age (MICA-2018), October 6th, 2018
Danang City, Vietnam
Advanced Application Solutions to Mobile Marketing in
Vietnam
Pham Thi Thu Huonga*, Tran Thi Thuy Sinha, Pham Thi Ngab,
Pham Thi Thu Huonga
aFaculty of Economics and Business Administration, Hung Vuong University, Viet Tri City, Vietnam
bUniversity of Economics and Business Administration – Thai Nguyen University, Thai Nguyen City, Vietnam
A B S T R A C T
Mobile marketing is a trend of strong and highly applied development in strategic marketing activities of
enterprises in Vietnam and worldwide. This is an important marketing type in e-marketing that today's
businesses, organizations, and customers are extremely interested in its superiority. This paper presents the
theoretical background of mobile marketing and analyzes the potential and current status of mobile marketing
in Vietnam in the period of 2005 - 2017. The analysis shows that Vietnam is a country with many potential
opportunities for extensive mobile marketing applications.However, the application of mobile marketing has
not matched the potential and there have been some certain limitations because ofusing simple tools, not
having promoted effective tools of mobile marketingand therudimentary expression. Based on that, the article
offers some recommendations to promote mobile marketing in Vietnam in the coming time.
Keywords: E-marketing; mobile; Vietnam
1. Introduction
In recent years, the growth of the telecommunications market as well as the increasing penetration of mobile
phones worldwide, especially the smartphones, has opened up opportunities for marketing on mobile phones.
Technology has grown, the number of people using smartphones is increasing, the shift in the trend of using the
internet on the computer to mobile, the check mail, SMS is easy to implement quickly on the mobile instead of
the computer as before. Along with that growth, the emergence of Mobile Marketing is an indispensable trend
and is gradually becoming an indispensable component in the communications industry in general. Mobile
marketing is not only a new media channel but also a powerful communication tool with high accessibility.
Vietnam's telephone market is a key market in Southeast Asia with 119.7 million mobile subscribers, which
means more than 119.7 million devices are attached and is capable of conveying very high information to
consumers. Therefore, mobile marketing in Vietnam is a potential market for businesses to exploit in the world
of Digital marketing to bring information about brands, products and services to customers with the highest
efficiency. In Vietnam in recent years, mobile marketing has been popular and has promised a strong
development of the benefits that this service brings. However, the reality of mobile marketing in Vietnam is just
a tool to transmit simple advertising messages, download tools, and download music or some other value-added
services on the SMS network but has not yet taken advantagesofall the basic differences and exploit the full
* Corresponding author. E-mail address: huongdhhv84@gmail.com
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potential of the Vietnamese market to bring the highest efficiency.
Therefore, the study of the potential and reality of mobile marketing in Vietnam in the context of the 4.0
industrial revolution to make recommendations for promoting the application of this activity is truly necessary
and practical meaning. Based on the above reasons, the authors undertake this study with three specific
objectives: (i) Overview of the theoretical background of mobile marketing; (ii) Analyzing the potential and
current status of mobile marketing in Vietnam; (iii) Proposing some recommendations to accelerate the
application of mobile marketing in Vietnam in the coming time.
2. Rationale and methodology
2.1. Theoretical background on mobile marketing
2.1.1. The concept of mobile marketing
Mobile marketing is no longer a new concept in the world economy. Accordingly, many researchers have
come up with the concept of mobile marketing. There are two perspectives on mobile marketing in the world
today: The first is that mobile marketing is marketing activities that involve mobile communication channels or
moving activities such as electronic board; posters mounted on buses, signal lights etc. The second opinion is
that mobile marketing includes marketing activities through mobile phones. In particular, the second view is a
new approach, more common and used by many researchers.
According to Nester & Lyall (2003), mobile marketing includes the ways in which target customers interact
with their mobile marketing campaigns.
Scharl et al. (2005) argue that mobile marketing involves the use of wireless devices to provide consumers, at
appropriate locations and times, with personal information promoting services and ideas. This will create value
for all stakeholders.
According to Bauer et al. (2005), mobile marketing is the use of mobile phones as a channel for the
transmission of commercial content to consumers. The characteristic noted here is that mobile marketing refers
to the use of mobile channels to transmit personalized information to consumers.
Other studies look at transmitting information to consumers via mobile devices as mobile ads. In particular,
Leppäniemi et al. (2006) argue that mobile marketing is used to convey the message by means of mobile devices
that affect the attitudes, intentions, and behaviors of the target audience. Similarly, Haghirian et al. (2005) note
that mobile marketing includes the use of interactive wireless media such as mobile phones to deliver
personalized advertising messages to consumers, with the main purpose of promoting their goods and services.
However, the use of mobile phones to communicate to consumers is not limited to mobile marketing and
mobile advertising. Accordingly, Leppäniemi (2008) has identified mobile marketing as the use of mobile
channels as a marketing medium. Through this, mobile marketing allows the transmission of both commercial
and social information.
The Mobile Marketing Association (2008) defines mobile marketing as a set of activities that enable
organizations to communicate and interact with the public through any mobile device or network.
As such, mobile marketing can be understood as marketing the use of mobile phones as a tool for connecting
businesses and customers.
2.1.2. Tools of mobile marketing
(1) Text messaging - SMS: A form of mobile marketing through text messages. SMS can be sent to
customers for information on new products, new promotions, or happy birthday messages etc. These can be
developed in various forms, depending on the content of the business communicator.
(2) Multimedia message - MMS: Multimedia message including text, image, audio, and video. The cost for
MMS messages is bigger and not all clients have the function of sending/receiving MMS messages on the phone.
However, due to the richness and vibrancy of the message, it will attract the attention of customers and bring
more efficiency.
(3) Mobile Website - WAP: Mobile websites are the same as Internet sites. Use the website to put some
information about the products and services of the business to WAP. In addition, the mobile website
also allows customer care, online consultation directly on the website to increase interactivity and
create confidence for customers.
(4) Wireless Connectivity - Bluetooth: The process of transferring content through Bluetooth wireless
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technology to potential customers. Content included: Coupon; Message; Image; Games; Clips TVC ads; MP3,
JPG, MP4, TXT etc; Promotions; Collect customer data. Bluetooth waves will scan within a 100m radius and
send the message; the content should be transmitted to the customer's mobile phone.If more distances are
required, more equipment should interfere.
(5) 2D Code - Quick Response Code (QRC): A graphic image storage information, read by some smartphone
applications by taking pictures of the barcode. Customers who capture these barcodes can receive images, video
introductions, products or links to corporate websites.
(6) Mobile application: An application written specifically for a mobile phone in the programming language
of that device. These mobile applications are usually downloaded directly to your mobile phone over a wireless
network or via Bluetooth. These applications provide many conveniences such as gaming, downloading
ringtones, social networkingetc.
(7) Location-based service (LBS): Provides personalized service to subscribers based on their current
location. In this application, the Global Positioning System (GPS) will be integrated into the mobile phone so
that the location of the subscriber can be detected as they move into the coverage area of the LBS stations.
Through this system, businesses can know the exact location of potential customers and send information that
suits their situation. For example, sending information about restaurants, cafés around them, help themknow the
information about the shops with attractive promotions etc,from then on, attracting the attention and encouraging
the customers to buy.
2.2. Research process
In order to achieve the objective of the research, with the systematic approach, the study was conducted in
the following steps:
(i) System approach: With this approach, mobile marketing is approached as a part of digital marketing, in
which digital marketing is the use of the Internet and mobile devices as a means for marketing activities and
media.
(ii) Data collection and processing: To collect data related to the potential and current status of mobile
marketing applications in Vietnam, the study uses a desk research methodology to collect data needed to serve
for research purposes. With data source GSO, appota.com, emarketer.com etc Data collected after sorting,
aggregation, cleaning and inputting into Excel software to calculate the required index and draw diagrams.
(iii) Analysis of data: The research uses descriptive statistics and comparative analysis to find the variance of
the analysis criteria.
3. Research results and discussion
3.1. Potential of mobile marketing application in Vietnam
- Population size:
As a Southeast Asian nation, with more than 95 million people (2017), Vietnam is the 14th largest country in
the world and third in the region, which is a large and potential consumer market.
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Pham Thi Thu Huong, Tran Thi Thuy Sinh, Pham Thi Nga, Pham Thi Thu Huong/ MICA 2018 Proceedings
94,444.2
96000
92,695.1
94000
92000
90000
88000
86000
84000
82000
80000
78000
76000
91,709.8
86,947.4
Average population
(thousand people)
82,392.1
Year
2005
Year
2010
Year
2015
Year
2016 2017*
Year
Fig. 1. Average population of Vietnam in the period of 2005 - 2017
(Source:General Statistics Office)
* Data from danso.org
In the period of 2005 - 2017, the population of Vietnam is continuously increasing at a high rate. In
particular, the population aged from 0 to 14 accounts for the largest proportion, followed by the population aged
25-49 (Table 1). One of the most prominent features of our population nowadays is the declining fertility, which
makes the proportion of the population under 15 decreases from 45.50% in 2005 to 41.27% in 2016. Vietnam
officially entered the golden population structure period in 2007, with a plentiful young labor force, according to
the General Statistics Office. This period will last about 34 years and end in 2041. By 2017, the population aged
15 and over is 72.70 million. This population structure will be easier to apply technology in all aspects of life
because young people will be potential customers of mobile marketing. These are the customers who use
multilateral services and mobile internet; this will help businesses to reach customers in a variety of ways, rich in
mobile marketing applications.
Table 1.Vietnam's population structure by age
Unit: thousand persons
Year 2005
Population
Year 2010
Population
Year 2015
Population
Year 2016
Targets
%
%
%
Population
%
0 - 14 years old
37,487.6
9,168.0
45.50
36,554.5
9,245.4
42.04
37,725.6
8,012.4
41.14
8.74
34.86
38,249.8
7,510,6
41.27
8.10
34.97
From 15 to 24
years old
From 25 - 49
years old
11.13
34.51
10.64
35.58
28,432.5
30,939.2
31,970.3
32,418.3
From 50 years
of age and over
Total
7,304.0
8.86
10,208.3
11.74
14,001.5
15.26
14,516.4
15.66
82,392.1
100
86,947.4
100
91,709.8
100
92,695.1
100
(Source:General Statistics Office)
Besides the potential for market size, income and expenditure per capita of Vietnamese people also increased
over the years (Table 2).
Table 2. Monthly income and expenditure per capita at current prices
Unit: thousand persons
Year
2006
Year
2008
Year
2010
Year
2012
Year
2014
Year
2016
Targets
Average income / person / month
636
995
1,387
2,000
2,637
3,049
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Pham Thi Thu Huong, Tran Thi Thuy Sinh, Pham Thi Nga, Pham Thi Thu Huong/ MICA 2018 Proceedings
Average expenditure per capita / month
511
792
1,211
1,603
1,888
2,157
(Source:General Statistics Office)
As the population grows rapidly, the per capita income rises, people's education is improved, the demand for
mobile phones and the internet is growing.
- Number of mobile subscribers are using:
Table 3. Number of telephone subscribers in Vietnam for the period 2005 - 2017
Unit: Thousand of subscribers
Targets
Year 2005
15,845
Year 2010
124,311.1
111,570.2
Year 2015
126,224.1
120,324.1
Year 2016 Year 2017
Number of telephone subscribers
Number of mobile subscribers
130,168.1
127,400
8,718.1
121,268.1
119,700
(Source:General Statistics Office)
The number of telephone subscribers has continuously increased, in 2016, the number of telephone
subscribers is 8 times as big as in 2005 (from 15,845 thousand in 2005 to 130,168.1 thousand in 2016). In
particular, the number of mobile subscribers is very high. However, the number of mobile subscribers in 2017 is
down in comparison with 2016 according to the General Statistics Office, which is due to the network operators
to collect the trash sim in accordance with the Ministry of Information and Communications. The increase in the
number of mobile phone subscribers, especially smart phones, is a favorable condition for enterprises to deploy
various mobile marketing campaigns (Figure 2).
Fig. 2. Percentage of smartphone users compared to the number of normal telephone users in key cities of
Vietnam
(Source: nielsen.com)
Number of mobile internet users:
2017 is the year marking the 20th anniversary of the official internet presence in Vietnam, not only serving
the need to connect, search, share information, the Internet has crept into all aspects of social life, becoming The
platform connects everything.
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Fig. 3. Number of Internet users in Vietnam
(Source:General Statistics Office)
* Data from Internetworldstats
According to Internetworldstats - a website dedicated to the internet users of the world's countries, if in 2000,
Vietnam has only 200,000 internet users, by the end of 2016, our country has 50.3 million people. Internet usage,
which accounts for about 54% of the population and is higher than the world average. By mid-2017, Vietnam
has 64 million users, equivalent to over 60% of the country's population. This data shows that our country has
the highest number of internet users 12th in the world and the 6th in Asia. Accordingly, in 2016, there are
12,996,179 mobile subscribers using mobile internet (2G, 3G), and 36,188,417 mobile broadband subscribers
using mobile internet (3G subscriber numbers), of which, the majority is young (Ministry of Information and
Communications, 2017).
According to Appota (2017), in the third quarter of 2017, most e-commerce customers are aged 18-25,
followed by ages 26-30, 30-35. With the user spending more time using e-commerce, especially on smart
phones, marketing messages can work best if they are passed on.
- Consumer attitudes to mobile marketing:
In a small survey of attitudes of Vietnamese consumers to mobile marketing, in the form of advertising (via
mobile phones, via television, through print media ...) 29% of consumers prefer the form of advertising on
products, services through mobile phones. According to the survey, 52.73% of respondents are interested in
advertising their products or services via mobile phones, while the remaining 42.47% said they do not care. It is
because they see "It is information with deceptive content" (Vo Thi Ngoc Trinh, 2013). Thus, Vietnamese
consumers also have interest and preferences for mobile marketing. Although the rate is not really high, this is
also the premise to be able to apply mobile marketing. At the same time, this requires businesses to have
solutions to impact consumers to change the attitude of consumers to mobile marketing in a more positive
direction.
- Legal and technological infrastructure:
In addition, the legal basis and technology infrastructure in our country has made significant steps to create
favorable conditions for businesses to conduct mobile marketing, especially in big cities. Vietnam has created a
legal basis for the information technology sector, legal regulations related to internet activities and services
through the Internet has been increasingly improved, the Law on Information Technology is also being
Incorporation into the revised roadmap to meet the requirements in the new situation and in accordance with the
development. In fact, in Vietnam, mobile marketing is being regulated and regulated through three main legal
documents, namely the Law on Consumer Protection in 2010, the Ordinance on Advertising in 2001 and the Law
on Advertising. Decree on anti-spam (Decree No. 90/2008 / ND-CP on anti-spam; Circular No. 12/2008 / TT-
BTTTT Guiding the implementation of a number of contents of the Government's Decree No. 90/2008 / ND-CP
of August 13, 2008, on anti-spam; Decree No. 77/2012 / ND-CP amending and supplementing a number of
articles of the Government's Decree No. 90/2008 / ND-CP of August 13, 2008, on anti-spam) has established a
comprehensive legal framework for mobile marketing. In particular, the Decree 90/2008 / ND-CP is the most
practical, closest to the management of Mobile Marketing in Vietnam (Prime Minister, 2008). In addition, the
ministries, departments, and networks also have more detailed regulations, regulating activities of mobile service
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providers in the market.
In addition, fiber-optic broadband infrastructure providers, 4G and IPv4 deployments are facilitating the
development of enhanced connectivity infrastructure both in terms of the quality and variety of
telecommunications services, from which, for the development of information technology. The development of
information technology infrastructure along with the increasing number of smartphone users will allow users to
use functions such as MMS, WAP, 2D barcodes…However, due to the status of spam is still popular so many
consumers still have not responded positively to mobile marketing.
3.2. Current situation of mobile marketing application in Vietnam
Mobile marketing was launched in the US in 2004, and in 2006, new mobile marketing was known and
applied by most Vietnamese businesses to send information about products and services through SMS to
customers especially are the network service providers and they usually send information to the subscribers
within their network. This takes advantage of the technical infrastructure, not the use of third parties and
identifies the customer object exactly, the right demand and the right product or service.
Since launching in Vietnam, many mobile marketing campaigns have been successfully implemented.
Firstly, the campaigns of the banks like Vietcombank, Agribank, ACB, Techcombank etc applied mobile
marketing to send information about deposit interest rate, installment loan service etc or account balance alert
and mobile banking. This has contributed to changing the behavior of consumers, especially in the industrial
revolution era 4.0.
In the field of telecommunications, the telecommunication companies, apart from sending promotional
messages, advertisements, subscriber switching etc, are also associated with the internet to provide instant
messaging programs. The message comes with free messages sent from the websites of mobile operators such as
Viettel, Mobifone, Vinaphone etc.
Since 2008 so far, mobile marketing applications are not onlyused to send advertising messages but also are
used in a wide range of business activities, such as providing information on Products, new services of the
company, promotionsetc according to the request of customers,organizing TV shows through entertainment
programs, TV specials with 19001750 phone numbers and beautiful photo shoots on your Nokia phone "Nokia -
moments live "with nearly 30,000 people voted through mobile.
Next came a series of programs, games predicted, voted contests, programs on the chart as "I love Vietnam"
of Honda, texting favorite singer of "Star tomorrow" , "Vietnam Idol" etc; Organizing promotions when
companies introduce new products or business strategies of the business; the form of sending messages to target
customers as well as potential customers about the company's latest information and upcoming promotions; Text
messaging to participate in the winners such as message to be donated Levi's T-shirt; virtual post office or
download mobile entertainment applications via wap; . All of these campaigns were highly effective by
combining the effects of mobile communications with other media such as newspapers, television, leaflets.At the
same time, also marked the positive contribution of mobile marketing in the business activities of enterprises.
Since launching in Vietnam, there have been many mobile marketing campaigns implemented and have
brought remarkable results. To date, mobile marketing has been applied to almost all areas of life. Contributing
to this success is the contribution of mobile marketing companies. Currently, in Viet Nam more than 200
companies providing mobile marketing services are prestigious such as VietGuys Joint Stock Company, Gapit
Media Joint Stock Company, Vietnam Multimedia Corporation(VTC), software and media company(VASC),
VHT Telecommunication JSC, Centech Media JSC, FPT Promo JSC, FPT Corporation, Goldsun Vietnam
JSCetc.
Although the application of mobile marketing in Vietnam has had positive results, however, many
Vietnamese consumers still have not responded actively to mobile marketing. The cause of this is the fact that
businesses collect their mobile numbers, then send a series of messages to customers without market
segmentation, regardless of age, content... And sending unrelated information, even cheating consumers, has
created dissatisfaction and consumer self-defense when mobile marketing chapters are deployed. In addition,
Vietnamese enterprises are facing difficulties because of this trend soon be abused, transformed generals.
Specifically, the use of text messages over the phone to advertise superstitious services, online games are not
useful. This leads to the strict control of the state management agencies, the regulation of advertising messages
must follow the template, causing many businesses afraid of registration procedures to advertise, so the ads
evolve early generates the sentiment of the recipient, leading to, when the message is advertised as wanting to
remove, do not want to read, do not care. Therefore, want to advertise through mobile phone development, can
not lack management, a direction of the state. Businesses themselves also need to plan to promote products,
services, and long-term to exploit this advantage.
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3.3. A general assessment of the status of mobile marketing in Vietnam
3.3.1. Result
As a potential market for mobile marketing with a growing number of mobile subscribers and the number of
carriers offering telecom services that meet the needs of mobile customers, Mobile marketing in Vietnam has
made remarkable signs of progressand results, in particular:
Firstly, mobile marketing has been applied and deployed in various fields such as mobile
telecommunications, finance - banking, insurance, consumption, entertainment etc.
Secondly, mobile marketing is applied in many forms, for example with SMS, there are forms of messaging,
message voting, message winning, payment of electricity, water etc; With WAP there are search forms, internet
access, ringtones downloads, wallpapers, games, applications etc.
Thirdly, have successfully implemented a number of large-scale campaigns that have, in turn, made a
positive impact, created positive effects and credited marketers with the effectiveness of mobile marketing.
Strengthen and expand mobile marketing application in Vietnam.
3.3.2. Limit
Despite the good results, the application of mobile marketing in Vietnam has not been as deep and
unmatched as potential. Specifically:
First of all, mobile marketing is well known and applied in Vietnam since 2006, the experience of deploying
mobile marketing in Vietnam is not much so companies are hesitant in using this tool to interact with customers.
Secondly, not many tools of mobile marketing, focusing on simple tools like SMS, WAP, not take advantage
of the tools. In addition, the form of mobile marketing of Vietnamese companies is rude and easy to lose
sympathy with customers.
4. Conclusions and recommendations
In the context of the 4.0 technology revolution, with the explosion of mobile technology, mobile marketing
has become a boon in brand marketing and customer service. This is also one of the potential areas and will
become an important factor promoting the development of the advertising industry, as well as the online
shopping channel in Vietnam.
It can be said that mobile marketing is part of e-marketing, and mobile marketing is available thanks to the e-
marketing activities that businesses are doing as well as business customers are sharing. In order to make good
use of mobile marketing, businesses need to pay attention to the differences and types of mobile marketing. In
the coming time, to accelerate the application of mobile marketing and develop into an effective field requires
the participation of many parties, specifically as follows:
(i) For the government:
Firstly, to build and develop a telecommunications infrastructure with modern technology with wide
coverage, effective operation, safe and reliable with high capacity and high quality. At the same time, to provide
telecommunications and Internet services with good quality and reasonable charges in order to meet the
diversified demands of service users; upgrading the system, deploying new technologies and services (GPRS,
W-CDMA, HSDPA etc); To diversify services, to step up the development of mobile telecommunication
networks, to reach the 4G mobile information system.
Secondly, the development of supportive environment and policies for the development of mobile marketing,
such as the promulgation of the advertising law, the simplification of the procedures for advertising and
communication permits to create favorable conditions for businesses to promote the image of the product and the
business; Build enterprise training program to adapt to the context of the 4.0 industrial revolution.
(ii) For Enterprises:
First, businesses must constantly learn and update their knowledge of mobile marketing; At the same time, it
is necessary to build a customer database, promote market research, find out the consumers' consumption habits
in the regions and types of phones used by the users, and time to access the internet, the content approach and
their response anticipation.
Secondly, there must be a specific direction and plan, selecting a reputable, relevant and experienced content
service provider (CP) in the field of mobile marketing to assess customer feedback. By tracking the download,
application activation, from which to evaluate the effectiveness of the mobile marketing program.
Thirdly, use mobile phone combination with other traditional media such as newspapers, radio, television etc;
At the same time, there is the creation of content to attract customers, thus forming a mobile advertising
campaign to achieve the necessary effect.
(iii) For mobile marketing service providers:
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Firstly, investment in facilities and technology for the company can provide the best mobile marketing
services for businesses need. At the same time, diversify and expand the services provided to businesses. As the
service evolves, many customers are willing to use information retrieval services if they are sponsored, so if used
properly, putting the information on the mobile will increase the ability to recognize the brand of the business,
thus building trust for the units that provide mobile marketing.
Secondly, regularly monitor the state policies in the field of communications, advertising activities to have
policies as well as appropriate changes in time.
(iv) For the people:
Some people are still prejudiced and think that SMS is spam, cheat. Therefore, to promote the application and
development of mobile marketing, it is important to change the perception of people - customers on mobile
marketing. In addition to businesses need to promote, introduce mobile marketing and guide customers to use the
services of mobile marketing, the customer must also find out and see again to see the role of mobile marketing.
It is not only an effective tool for business to reach customers but also a tool for customers to get information
about products and business quickly, conveniently and economically.
References
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Marketing: A Theoretical Framework and Empirical Study”, Journal of Electronic Commerce & Research,
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[12]National Assembly (2010), Law No. 59/2010 / QH12 Law on consumer protection.
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[14]Scharl, A., Dickinger, A. & Murphy, J. (2005), “Diffusion and success factors of mobile marketing”,
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[16]https://danso.org/viet-nam/Internetworldstats.
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