2. Topic: Setting the Right Position for PR in the
Changing Business Environment
• PR industry overall view (estimate market size, growth, types of PR agency,
changes in the past few years) and Determining PR’s evolving role
• Determining PR’s evolving role and its future opportunities and Forecasting
PR market outlook in Vietnam for the next 10 years
• Uncovering how the companies in Vietnam respond to the new PR
challenges
• Assessing the impacts of the changing business environment (globalisation
progress, WTO-participation, global economic crisis, unstable financial
market) on the PR function in Vietnam
2
3. PR industry overall view & Determining PR’s
evolving roles
Forecasting PR market outlook in Vietnam for
the next 10 years
Uncovering how the companies in Vietnam
respond to the new PR challenges
Assessing the impacts of the changing business
environment
3
4. PR agencies segmentation
Professional
Used to "guiding"
the public for the
LOBBYING purpose of better
in business
Minority
Acts as a brand consultant,
to collaborate closely with
clients right from the
STRATEGIC PLANING
beginning of brand building
Integrated
Predictions, warnings and help companies
CRISIS MANAGEMENT plan to prevent, mitigate to the maximum
risk and deliver the solutions needed to
overcome the crisis.
Creating overwhelmed effect, using the press as
SERIES ARTICLES a useful tool to strengthen and build its own brand
for the company.
Majority
Execution
Writing and editing articles which are able to transfer the PR
EDITORIAL objectives to target consumers.
Contacting media channels such as newspapers, magazines, TV
CONTACT MEDIA commercial, radio to book a good time slot and location for PR
campaign Relationship with channels play a very important role
4
5. PR’S evolving role & its client types
Client types
required
• Its value is to expand the market via
Multinational lobbying the government. At the same
LOBBYING time, this function is totally depending on
the government’s regulations for PR.
• PR agencies will be the strategic
partners of clients once they will
STRATEGIC PLANING be able to create a long term PR
plan for client
• Although this function
Big local
will help client to resolve
CRISIS MANAGEMENT negative issues, PR’s
ethic should be
considered.
SERIES ARTICLES
• These are
basis
Small local
functions
EDITORIAL that most of
PR agencies
in Vietnam
CONTACT MEDIA obtain.
5
6. Market values by segments in 2009
Execution
• Person who have PR knowledge and experience
such as freelancers, copywriters.
• Number of agencies: hundreds.
10%
Integrated
15 - 20
• Media and advertising 30% million
agencies who also have
USD 60% Professional
PR function.
• Approximately 100
• Having PR expertise
agencies
• Less than 10 such PR
agencies in Vietnam
• Being able to handle strategic
PR projects.
( Figure: estimated by FTA)
(Source: in-depth interview PR experts)
6
7. Drivers for choosing PR Agency
Apart from the basis requirement for a PR agency such as good objective
understanding and creative PR strategy, the fact that the agency should have a
good relationship with the press and government is driving the client’s choice.
%
Good understanding of PR objectives
Unique and creative PR strategy
Having good relationship with the press and government
Highly competent and professional staff
High ability to solve problems
Punctuality in execution
Strategic and crisis controlling ability
Ability to manage large-scale PR campaign
Responsive to client
Flexible working style
Prestigious and recommended agency
Low price
Professional facilities
Multi-national agency
7
( Source: synthesized by FTA Research & Consultant )
8. PR agency aided awareness
PR plays an important role towards marketers since it just follows advertising and event & brand
activation. Venus, Galaxy, Golden Event, Max Communication and Biz Tequila are top PR
agencies in terms of marketer’s awareness.
Marketing services used in 2009 PR Agencies Aided Awareness
8
(Source: synthesized from FTA syndicated report)
9. Growth of PR industry
Reasons for dramatically
increasing in 2010
• Overall marketing service
market is growing
• PR industry was still grown
during the economic crisis
period.
• Customers are more and
more understanding about
values that PR brings.
• High growth rate of media
channels (e.g. TV channels,
newspapers/magazines,
social community network…)
• Switching from ATL spending
to PR and BTL spending
• PR spending is much lower
than Advertising while its
effectiveness still is
recordable.
( Figure: estimated by FTA)
(Source: in-depth interview experts)
9
10. PR industry overall view & Determining PR’s
evolving roles
Forecasting PR market outlook in Vietnam for
the next 10 years
Uncovering how the companies in Vietnam
respond to the new PR challenges
Assessing the impacts of the changing business
environment
10
11. PR Market outlook for the next 10 years
Online PR via Social Community Network (PR 2.0)
There are many online activities being available in Vietnam. However, it’s just more about
promotions and product launching.
o Encourage consumers to easily express their opinions, and so marketers are able
to understand more insight about what consumers are thinking.
o Obviously, there is also a PR method least costly compared to traditional forms of
advertising and other marketing activities.
Video Online video website was viewed as one of the fastest growing areas in the world
media. Sites such as YouTube has been attracting thousands of daily visitors.
sharing For the marketing promotion of small businesses, online video is really a hint
community particularly attractive because the creation and distribution of the contents of
Video & Podcasts are much less expensive than the traditional media
advertising.
RSS feed The text public information is combined with other multimedia elements like images,
video clips, links to blogs, digital tags, and RSS feed search engine. This broadcast
mode through advanced communication tools are useful in helping
companies to market directly.
Blog Not merely for entertainment, blogs also acts as a source of accurate information
to capture the new trends in technology and the many hot topics are people
interested. Word-of-mouth marketing is the main function of Blog PR.
Social While MySpace as a place to be seen regularly by music enthusiasts, then LinkedIn
and Facebook are considered a public community network works most prestigious
Network network for businessman and general people. Users will be clearly stated
background themselves and doing their job, then can connect with other
individuals of the same business. Source: in-depth interviews
11
12. PR Market outlook for the next 10 years
PR environment
The current situation is that with high growth rate of PR industry, the market has been presenting more
and more professional PR agencies to satisfy the changes of client’s demand.
High growth rate • Marketers tend to using PR instead of advertising because
competitive price with diversified functions. Thus, budget for PR
may increase sustainably.
• Perception of clients will change whereby PR’s roles and
functions are understood correctly.
• Good and stable economic growth rate of Vietnam economy
positive impact on marketing service in general and PR in
particular.
More professional • Client’s expectation as well as needs will be increasing (e.g.
PR Agencies strategic PR agencies, PR involving lobbying), so there will be
just professional agencies to be able to satisfy such client’s
demands.
Changes of • Integrated into global marketing plan
client’s demand • More consulting from PR agencies PR plan should link to
brand name, vision, mission of clients
• More contracts for maintenance service.
12
13. PR Market outlook for the next 10 years
PR Association
Many PR agencies are operating in the market. However, there is no PR
Association to help these agencies in developing such a PR community
networking as well as coming up with a Codes of Conduct for PR industry.
• Play-ground for PR agencies, where experience and knowledge
exchanged
• Impact on Government rules
• Come up with PR Code of Conduct
• Organize professional workshop, conference for PR industry training
as well as updating upcoming PR techniques to help development
of PR industry in general as well as to develop human resources for
PR industry in particular.
Source: in-depth interviews 13
14. PR industry overall view & Determining PR’s
evolving roles
Forecasting PR market outlook in Vietnam for
the next 10 years
Uncovering how the companies in Vietnam
respond to the new PR challenges
Assessing the impacts of the changing business
environment
14
15. Current challenges and responses
recommended
Since there is no professional PR training in
Human Vietnam, PR agencies need to have specific
resources plan for training their staff at the beginning,
which is a healthy way for developing the industry
Although PR Vietnam industry is growing
dramatically, its roles have not been recognized
Customer and understood correctly. Customers’ perception
about PR that PR is just for consequence
perception
resolving and media contacting education to
customers is needed via direct communication
to customers, workshops etc.
So far there is yet any official regulations for PR
Government industry. PR is understood as advertising
regulation mission for PR Association
15
16. Current challenges and responses
recommended
PR agencies, especially professional companies
“Black” PR will be facing this issue since some clients shall
PR Ethnic seek for professional agencies to overcome their
trouble or crisis mission of PR Association to
educate clients about PR ethnic
PR still is the marketing tool, so it would require
Changes of such a return on investment research
client’s demand agencies to come up with a method to
measure the effectiveness of PR campaign
Depending on PR is more an execution service, so such an
media effective media channels as well as its time slot
companies and location of airing will be playing a very
important role relationship is a must
required to act in PR industry
17. An idea to measure PR’s effectiveness
There are some indicators to measure the PR’s effectiveness
Who is the target audience?
Measure reaching ratio after the PR launching
Key message take out from the PR campaign
Changes in consumer’s thinking and behaviors towards the
company/ brand.
…
Figure out an index after launching such a
PR campaign
17
18. PR industry overall view & Determining PR’s
evolving roles
Forecasting PR market outlook in Vietnam for
the next 10 years
Uncovering how the companies in Vietnam
respond to the new PR challenges
Assessing the impacts of the changing business
environment
18
19. The 3 factors impact on PR industry
• Vietnam is amongst the most attractive
destination in the region for foreign investors
Strong economic • WTO, retaining high GDP growth, secured
growth political environment etc.
marketing service market will be growing
PR industry grows
• Clients would be more demanding in order to be
in line with other countries in their marketing
Globalization implementation perception about PR from the
progress clients will change
• PR industry is being updated upcoming
techniques thanks to the interaction between local
PR agencies and foreign agencies
• Trends of M&A from MNC advertising agencies
to be positioned as full service agency.
• Some clients switch into using PR instead of
Global Economic Advertising because PR is lower investment while
Crisis directly connect to consumers.
19