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Project Marketing Process in Developing Countries - The case of a Finnish Heavy Industrial Firm in Vietnam

Nguyen , Huu Le (2004)

 

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Nguyen , Huu Le
2004
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As a trend of gaining competitive edge in the global industrial market, firms often sell not only their products and services but also systems and know-how which can be combined as a project. The aim of this study is to identify the project marketing process in developing countries with the viewpoint of a selling firm. The process is focused on the period from the time a selling firm looks for project opportunities until a project is sold in the target country.

Using the qualitative method with case study approach, the empirical part of the study focuses on describing and analyzing the project marketing process of a Finnish heavy industrial firm in Vietnam. Data for the empirical part was collected through the firm’s website, annual report, and interviews.

The main findings of the study suggested that there were four stages in the project marketing process taking place in the target country. They are project screening stage, project development stage, project offer stage, and project negotiation stage. In the project screening stage, the selling firm searched for project opportunities from different sources such as publications of the target country’s central government, newspapers, and especially from local sales representative’s personal relationships. In the project development stage, the selling firm made major decision to bid for the project. Then, it built relationships and its influences with local and central government of the target country, consulting firms, financial institutions, and buying firms. In the project offer stage, local sales office prepared an offer with the assistance of headquarters, and regional headquarters. Elements of a project offer consisted of technology, services, pricing, and environment. Besides, in this stage the selling firm tried to establish credibility and trust with the buying firm. In the project negotiation stage, the selling firm used local sales representative to negotiate elements of the offer and project life span in respect to the competitors’ offer.
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