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    Introduction

    In the Information Technology world, IBM has been considered as a redoubtable giant of other

    IT Company, because it is not only its flashy history, but also the way IBM has recovered its

    business until now. In the period of time 1980s, IBM was at the first place in the top of marketfor mainframe computers and had a strong growth in revenue and profit. However, in the 1990s,

    the Blue Chip went down uncontrollably and was out of number 250 in Interbrands annual

    survey of the most valued brands with a brand value, its stock price was at the lowest within 18

    years. The situation was changed when IBM brought Lou Gerstner into Company and he became

    new CEO who had a mission of turning around IBM. He had studied the IBMs situation at that

    time and came to the conclusion. Afterwards, that man ran a number of campaigns related to

    reorganizing company, running advertising such as Subtitles image-oriented advertising

    campaign with Ogilvy & Mather, E-business campaign launched by the late 90s, the next

    campaign was ON demand in terms of Business Services market performed by new CEO of

    IBM- Samuel Pamisano. The Other IBM and Help Desk Campaigns took a look in another

    side- Business Process Transformation Services market in the 2000s, after IBM was pleased with

    the results from The Other IBM and Help Desk campaigns, IBM had continued launching

    Innovation That Matters Campaign concerned as a means to change how to do business when

    seeking ways to grow in March 2006.

    From the beginning of launching the first campaign of Lou Gerstner to the Innovation That

    Matters, IBM created the great comeback stories in the history of corporate America. However,

    IBM still keeps its image as Big Blue, maintain and develop itself image more than mainframe

    computers.

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    Executive Summary

    The objectives of the paper includes four main parts. First of all, it analyze and explain the role

    of advertising in the integrated promotional strategy for IBM globally and in Vietnam

    particularly. This part will explain roles of advertising and how to relate each role withadvertising. Besides, it also explain the integrated promotional strategy and tools. Finally, it will

    be used to analyze by AIDA and DAGMAR model. The second phase explain what the branding

    is and how it is used to strengthen the position and image of IBM in general and in Vietnam in

    particular. It also concerns how branding benefits the company and provide the other

    disadvantages of branding. Other phase aims at making a review the creative aspects of

    advertising in the given case of IBM. It describes the creative decision making process, message

    and appeals. And final phase is to examine ways of working with advertising agencies, and the

    way a small business in Vietnam may make a different decision about advertising agency than

    that of IBM.

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    Content

    I. The role of advertising in the integrated promotional strategy for IBM globally and inVietnam particularly.

    Advertising can be defined as any paid form of non-personal promotion transmitted through a

    mass medium. The sponsor should clear identified and the advertisement may relate to an

    organization, a product or a service1. It means that advertising is an important promotional tool

    to help companies to achieve communication objective, marketing objective and businessobjective. Effective advertising can lead to increased market share and greater profitability.

    Advertising is a useful tool to reach a large targeted audience and add a value to brand by

    influencing consumers perception. Besides, in the integrated promotional strategy, it takes

    advantages of a combination tools and media to deliver an important message. By means ofcombining significant tools, marketers can ensure that their audience is reached and can leverage

    the various tools in ways that are most effective. Integrated promotional strategies draw upon the

    power of traditional advertising and public relation efforts, the use of new, and online

    communication tools as well that include social media

    Roles of advertising include five parts which are inform, persuade, remind, add value, and assist

    other efforts.

    First of all, inform is responsible for making consumers aware, educating them about the features

    and benefits, and facilitating the creation of products or services. It also informs them about

    specific brands.

    The second phase is persuade customers to try new products, brands and services. It also create

    demand for entity product category and build secondary demand. Persuading concerns with the

    stimulating the actual purchase.

    The third is remind which means that companies must find the way how to keep brand of

    company fresh in the memory of consumers. It also helps to create the highest awareness of

    consumers about product and service categories of every company, and this phase is one of the

    most important part affected consumers purchase decision.

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    Moreover, from the three main functions above, in order to support for advertising, companies

    need to add more value to their products and services. This role creates the innovation for the

    company, they care more about the quality of products and services and find the way to improve

    them in order to meet the customers needs as well as support well its position in their minds. It

    does not stop at the point, by adding more value for products and services, companies can drive

    customers perception to what they have and make customers believe what they do to create the

    benefits for customers.

    Advertising also assists other efforts such as delivering sales promotions, assisting sales

    representatives, pre-selling products and services.

    Generally, the advertising is mainly used to support sales increases, encourage trials, create and

    stimulate customers awareness, inform about features and benefits, remind and reassure theexisting as well as new products and services, create in mind of customers a brand image, and

    gain trade and sales staff support.

    In the case of IBM Company, before Lou Gerstner had become the new CEO of IBM, this

    Company had to face with a tragedy that IBM had lost a total of $5 billion and its stock price was

    at an 18-year low. The brand is below number 250 in Interbrands annual survey of the most

    valued brands with a brand value, estimated at a negative $50 million dollars. In the time period

    that Lou was CEO of IBM, he approached customers by speaking with customers to understandtheir needs and how they knew what IBM is about. He launched the new advertising campaign in

    January 1995 known as Subtitles with the tag line Solution for a Small planet. This

    campaign was successful in communicating that technology affects people around the world and

    IBM was recognized as a provider of solution and also drove customers into believing the

    features and benefits about new technologies, understanding needs and having unique solution to

    make a difference. In 1997, IBM published a manifesto in two famous and prestigious presses

    which are The Wall Street Journal and The New York Times, using a written in business terms a

    CEO or CIO would use. This way was working well when bring the brand image went deeply

    into minds of potential customers that IBM knew their business and could help them solve

    problems in order to run better.

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    Moreover, IBM purchased the consulting firm Price Waterhouse Coopers in 2002 in the ON

    Demand campaign under the dynasty of Samuel Palmisano- new CEO of IBM. This action was

    to innovate IBM business from software, hardware to secondary demand- services at the top-

    level decision makers with new features in technologies and bring benefits in solutions for all -

    size businesses, it also emphasizes again the brand image IBM in the awareness of all types ofcustomers. Afterwards, in the advertising, the red ON button combined with the words

    DEMAND BUSINESS ( as the image above) was the brand signature in all marketing materials,

    and once ON DEMAND BUSINESS is rehearsed, people recalls IBM with all about the

    technology and movements in solutions of business services.

    All types of advertising such as manifesto in The New York Times and The Wall Street Journal,

    television campaign, billboards was used in IBMs advertising campaigns globally. But

    particularly in Vietnam, it seems that those types of advertising were not working well. From1993 to 1996, IBM researched Vietnam market, then decided to authorize representatives and

    established first companies in Vietnam in terms of fresh technology, cloud computing, fresh

    center database and electronic medicine. IBM has been facing with many difficulties when

    penetrating in Vietnam and wanting to advertising about IBM. In Vietnam, IBM cannot use all

    types of advertising promotional tools because, first of all, it relates to budget when Vietnam

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    cannot afford to purchase a full package as the way Ogilvy and Mather did globally. The second

    one is that if IBM runs the television commercials in Vietnam, Vietnamese customers cannot

    understand what IBM wants to communicate because of the difference between two cultures and

    unequal information technology level. Beside, in 2000s, almost people watched to TV more than

    used Internet, so advertising based on Internet was not popular and ineffective. Suppose IBM

    brings King Arthur scene on television commercials, whether customers can realize the message

    IBM wants to deliver to or not and Vietnamese people just knows IBM as a computer brand. The

    way IBM cooperates with Vietnam Companies and advertises is through contract with companies

    to open Global Deliver Center (GDC) to provide services such as e-commercials, e-distribution

    and controlling. Besides, IBM also is main sponsor for Kid Smart Kindergarten.

    II. Branding and how to use it to strengthen the position and image of IBM globally andin Vietnam

    Branding is the process by which companies distinguish their offerings from the competition.

    By developing a distinctive name, packaging and design, a brand is created2. In other words,

    branding is a name, a sign, symbol or design, intended to identify the products, services of a

    company and to differentiate it from the competitors. Brand is a precious intangible asset of a

    company which creates the identity of company in the market.

    First of all, it should be made clearly some terms and definitions. Brand identity is a combinationmany factors, including name, logo, symbols, design, packaging, and performance of a product

    or service as well as the image or types of associations that comes to mind when consumers think

    about a brand. It encompasses the entire spectrum of consumers awareness, knowledge, and

    image of the brand as well as the company behind it. Branding identity is a means of identifying

    and distinguishing a company from another. If a company having an attractive and unique brand

    identity have improved brand awareness, motivated team of employees who is proud of working

    in a well branded organization, active buyers, and corporate culture. It also leads to brand loyalty,

    high credibility, good prices and good financial returns. Moreover, it ensures that company and

    consumers are connected immediately. Therefore, brand identity should be sustainable. It is

    crucial so that the consumers instantly correlate with companys products or/and services. In the

    case of IBM, through a period of time, brand identity has been clearer and clearer until now, and

    stimulated awareness in consumers mind. Take a look the history logo of IBM as given below.

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    And this is the newest logo of IBM designed in 2011:

    Consumers are easy to realize IBM brand identity, and in the year of 2011, brand logo of IBM is

    a combination between the symbols, sign with new tagline Intelligence Redefined. With the

    help of agency, Forty has helped IBM to rethink their brand identity. It emphasizes the youthful,

    energetic, hip, accessible, forward-thinking, and transparent. The message that IBM wants to

    deliver with this logo is making people smarter. The new design also is attractive with the

    current trend of using lower case letters and the combination colors made the circle with cut b

    letter that seems to be one eye.

    Brand equity is the value and strength of the brand that decides its worth. In the market place,

    brand equity is considered as a function of consumer choice, which appears when consumers is

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    familiar with the brand and holds some favorable positive strong and distinctive brand

    association in mind. In order to build a brand equity well, a company must contribute brand

    awareness, brand association, brand loyalty. As shown above, IBM differentiates itself from

    other computing companies by providing services and technology products to businesses. All

    over the world, IBM has anchored itself as innovator and worlds technology firm, and IBM also

    remained consistent to its original identity. When people, companies think of business computing

    and solution services, IBM appears immediately, therefore, this awareness is one of an important

    factor of differentiation that sets IBM apart from other competitions. Another reason why IBM

    always keeps their brand equity well is company delivers their brand ideas closely and continue

    checking and assessing if their brand equity accumulated in a right way to ensure the consistent.

    As mentioned above, brand awareness factor supports well for brand equity, and IBM was

    realizing that point, Mike Moran Distinguished Engineer3 of IBM knew that keyword searchers

    choose are indicative of their level of brand awareness. Therefore, he created brand awareness

    with search, and used this for the ON Demand Campaign. At the beginning of campaign, no

    searchers look for the term, therefore, IBM started to advertise using tradition means to embed

    the name ON Demand in searchers minds. ON Demand also is a message that can be

    applied to many parts of IBMs portfolio, so it was a good choice for increasing brand awareness.

    Branding also brings a significant of benefits for company. First and foremost, any companies,

    organizations always sees customers as a King, therefore, company needs to build brand well in

    order to keep the loyalty of customers. When customers have a positive experiences with a

    memorable brand, they are easier to make decision to purchase products or services than

    competing brands. When customers have a good experience with the brand, they are not only

    repurchasing products and/or services but also buying related items, services of the same brand.

    Moreover, they also recommend the brand to others and to resist the lure of a competitors price

    cut. Here, the brand equity anchor loyalty of customers. Besides, investors have considered as

    financial source of company in a number of business activities, therefore, the way company build

    its brand also is one of factors for investors whether to invest more or less. Investors are

    interested in long-term growth and realize that strong brand will stimulate and support well for

    every coin they spend, a great brand can take investors straight to the top and satisfy them. This

    is an interactive relationship, when they realize brand equity is good enough and brand is

    valuable, both of two parties are having advantages. Another phase is that branding can affect

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    company cultures. The brand of company creates a reason for motivating staff, the loyalty of

    staff to company. In fact, employees that share the values of company have a meaningful

    connection with the direction of management will stay longer and move less. Besides, new

    recruits are often interested in working for well-known brands consistent with their own values

    and image of themselves. Furthermore, staff who understand clearly the expected behaviors and

    norms work together effectively to achieve the desired work environment, and when they are

    working with customers, the cultures will become their momentum to display the beautiful

    reaction and make attraction to customers. Start with the Solution for a Small Planet, the

    advertising commercials used the same imagery but were varied for each country by the use of

    subtitles in the local language. The customers also had knew IBM as a provider of software and

    hardware, but IBM also was successful in portraying itself as a provider in a new field solving

    business problem. The Subtitles campaign was successful in orienting IBM image and making

    people know it in a new position. The brand IBM continued positioning itself in term of

    technology and provider solutions for business problems with the ON Demand campaign. This

    campaign focused on shifting from PCs and machines to business value with end-to-end

    integrated solution. And people knew about it when IBM created customer testimonials to make

    them believe that ON Demand was real and different. This action made people have attraction

    again about IBM, and afterwards, the red ON button combined with the words DEMAN

    BUSINESS became the brand signature globally. In particular, when IBM penetrated Vietnam,

    branding always was priority, the company used its own brand for signature in order to help

    Vietnamese customers remember easily, but as a coin has two sides, so does IBM in Vietnam,

    because afterwards, it is hard to re-position and expand brand in Vietnam market. Although those

    campaigns carried out globally to build IBM brand in some parts, it gains low results when

    Vietnam customers just knew IBM as a provider of technology software and hardware. In order

    to use IBM brand to strengthen the position and image in Vietnam, IBM Company must set up

    advertising campaigns related to this brand that are suitable with customers needs. Not only in

    technology part but also in providing solution services. IBM can cooperate with information

    technology in term of providing controlling computing systems for industrial companies for

    examples. Moreover, IBM also carries out television commercials with content that is suitable

    with Vietnamese cultures.

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    III. Creative aspects of advertising in the case of IBMCreative decision making process has 4 main parts as follow:

    1. Determine the advertising objectivesIn this case, DAGMAR model is used to analyze on order to find the way to improve advertising

    campaign. DAGMAR model is broken into 3 parts: define advertising goals; comprises five

    stages ( Unawareness, Awareness, Comprehension, Conviction and Action) which customers

    pass through before making decision to purchase product or/ and service; and the final part is to

    measure advertising results.

    1.1.Defining Advertising Goals

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    The company must research and analyze the target audience in order to measure current situation

    related to awareness, comprehension and conviction. From this action, company finds the

    realistic goals for the advertising campaign. Prior to carrying out advertising campaigns when

    cooperating with Oglivy & Mather, IBM was under the worst situation have ever had before, and

    reached its nadir, but afterwards, when Lou worked with O&M agencies in order to operate a

    significant advertising campaigns such as Solution for a Small Planet, ON Demand, etc. the

    customers awareness was raising. Therefore, Company set up a higher goals and on the way to

    turn back in the Dinosaur position.

    1.2.Improving Unawareness Awareness Comprehension Conviction and Action

    This phase is to explain the process that customers go through before they purchase products

    or/and services. The process is as follows:

    First of all, obviously, company cannot cover all the people and hope them to be customers, so

    IBM must identify who the target audience of Company is, because, in fact, not everyone are

    interested in its products or services. Let take The Other IBM and Help Desk as the

    examples, IBM set up target audience which is not only related to PCs and machines, but also is

    processes and enterprise optimization as well, because IBM was facing with the $1.2 trillion

    Business Process Transformation Services market, and a lot of people just know IBM as

    technology consulting. Next is comprehension that IBM want customers perceive what products,services benefit them? Advertising brings a clear picture about benefits and features of products

    and services. It will stimulate customers awareness, and then IBM build conviction and a

    positive attitude to the product/ service. In some parts, the advertising campaign persuade

    customers to have a good review about product. Finally, the action is performed, The Other

    IBM campaign is to become more profitable, efficient, and competitive, in other words, this

    campaign wants to drive customers considering IBM not only technology consulting but also

    business optimization one.

    1.3.Measure Advertising Effectiveness

    Follow the chosen advertising model, IBM implements the measurement the result and

    effectiveness of campaign by evaluating whether the goals are achieved

    2. Make creative decision

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    sale volume and summary the results whether or not marketers achieve set goals in the campaign.

    In The Other IBM and Help Desk campaign, the effectiveness is measured by the proportion

    of customers about products and services of IBM and sales volume at the period of time that

    campaign was implemented.

    IV. The ways of working with advertising agency for small business1. Advertising agencies

    In Vietnam, an advertising agency has been considers as a smart choice for small businesses,

    which not afford to hire a famous advertising agencies with a full package, to spend budget

    effectively, efficiently and efficacy. There are many benefits advertising agencies give

    companies: design advertising, research and develop, plan advertising campaign, choose suitable

    media tools, save cost and time, etc. small businesses should hire them to implement the wholeadvertising campaign. On the other hand, small-sized firms also consider how to work with an

    advertising agency.

    Firstly, company has to set an advertising budget approximately, but this action also depends on

    what types of business company belongs to, the objectives of advertising, how it looks. The

    company should negotiate the cost structures of advertising agency. All the materials taken part

    in designing advertising programs, including hiring third party, the placement for advertisement,

    television commercials fee, etc. therefore, a draft, a document is prepared in details that would bebetter for small companies.

    The second phase is to understand what advantages advertising agency can give a small

    company. Particularly, there are still existing a number of companies that do not have their own

    marketing department clearly, or some of them are new entrant so the marketing activities are at

    the low level. Therefore, the suggestions from advertising agency are good at the way how to

    organize a marketing department with staff allocation as well as the requirements for those

    working positions. Besides, advertising agency will also have an access to researchers, mediabuyers, artists, film producers and third party, which is the task that company cannot perform

    easily.

    Thirdly, hiring advertising agency can save cost and time. With the detail documents of number

    of staff and working position for each person, advertising agency can allocate the human

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    resources with suitable position, which creates favorable conditions for other staff to spend their

    time in performing other tasks. Besides, the hiring fee for training marketing skills also reduce

    amount when advertising agency is responsible for doing that task, and save expense for hiring

    an expert to train staff. Furthermore, advertising agency also has a good relationship with the

    third parties such as publishers, radio channels, and television station, therefore, advertising

    agency is considered as an intermediary and cut cost. And agency knows how to save the

    material during designing process and saving money for firm.

    Moreover, because the characteristics of business nowadays are more and more complex, so

    many advertising agencies arise with an uncontrollable quality of work. As a consequence,

    finding a suitable advertising agency should be paid more attention and what criteria that small

    business has to understand to choose best. Company should make a list of working requirements,

    ask for trade association, business contacts. For each advertising campaign, the period of work

    normally is quarterly, haft of year, or 1 year, even is longer. The recommendations from trade

    association ensure a certain knowledge and can give company an overview about the business.

    Consequently, trade association can produce company a list of advertising agencies which have

    experiences in those fields. Another sources that company can find an advertising agency is

    business directories which has a function to allocate local advertising agencies or copywriters.

    Internet sources is also a good way to find more further information related to advertising

    agencies on a number of websites.

    The fifth phase is to understand the types of advertising agencies. Before working with one

    advertising agency, company must fulfil advertising objectives, and advertising agency is

    responsible for complete well all required objectives to stimulate awareness of stakeholders.

    Obviously, an advertising agency should have experiences in business fields, can overcome a

    typical issues such as budgets, research for new customer segmentation, and analyze customer

    loyalty. One of determinant in the decision to choose advertising agency is its size. The size of

    agency reflects the effectiveness of work in some parts which does not mean that the greater

    advertising company, the better service. Before choosing an advertising agency, business should

    give information in some ways to gather such advertising agencies in round 1, at the round 2,

    candidates have to take part in the interview to assess the ability of agencies, and then the

    determination belong to companies which want to hire advertising agencies. With the

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    characteristics of being a small company which had a limited budget for advertising activities,

    both two parties need to understand clearly the requirements and the needs together. The

    documents include advertising objectives, overview information, target audience that company

    want to drive to should be attached and advertising agency has responsibility to know and

    understand well because the information in more detail will create an easier working

    environment for agency and the succeeds will be at a higher level. In other side, agency has to

    prepare a detail proposal including businesss requirements, specific plan, time scale and the cost

    in detail and total for each categories based on the ordering of advertising agency.

    2. Different decision about advertising agency between Vietnam small business and IBM2.1.Income

    The unequal income objectives are a great difference between two types of business, and thedecision making about advertising agency are also differentiated. While almost Vietnam small

    businesses are looking for maintaining the cash flow in order to pay them regular income,

    shareholders of small companies, IBM has purpose at achieving substantial wealth.

    2.2.Operating

    Almost small business mainly want to have cash to run business activities in short period of time

    in order to revolve the income, so the contract between small businesses and advertising agencies

    are made in short term. On the other hand, a great group has a complex organizational structure

    and a huge organizational cultures like IBM barely want to change their partnership, because

    once changing advertising agencies, it will take time for agencies to analyze and understand

    clearly the IBM as the whole. Moreover, that changing also affects IBM because the way to work

    of two advertising agencies can be different. However, IBM can hire more advertising agencies

    based on its needs.

    2.3.Workforce allocation

    For Vietnam small firms, each staff can be assigned different types of work in order to reduce the

    cost for recruitment and training as well. For instance, if a small company do not have a

    marketing and sales department, other staff that are not good at marketing will have to play that

    role. Once hiring advertising agencies, there is a distance between 2 parties in terms of

    knowledge and is hard to work together, and waste time for training, but in the case, the co-

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    operation between IBM and advertising agency will enough workforce in the right working

    positions- IBM marketing department and agency.

    Conclusion

    The paper brings out IBM circumstance from the tragedy to a fantastic turning back as Big Blue.

    It also explains a number of roles of advertising in the integrated promotional strategy for IBM

    globally and particularly in Vietnam. Moreover, it depicts the definition and significant functions

    of branding, how it important in building a brand for IBM succeeds, and how it is used to

    strengthen the position and image of IBM in international and in Vietnam. The report presents

    the creative aspects of advertising in the case of IBM and examine some ways of working with

    advertising agencies and the different between making decision about advertising agency when

    comparing a small business in Vietnam and IBM.

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    Reference

    1. BPP Professional Education (2010), Unit 18, Advertising and Promotion, Course book.London: BPP., pg.356

    2. BPP Professional Education (2010), Unit 18, Advertising and Promotion, Course book.London: BPP., pg.363

    3. Branding tactics for search. Available from:http://www.biznology.com/2005/03/branding-tactics-for-search/ [accessed 25th,

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    4. Xu hng s dng Internet ca ngi dung Vit Nam nm 2011. Available from:http://moore.vn/Tin-tuc/Tin-thi-truong/tin-cong-nghe/145/Xu-huong-su-dung-internet-cua-nguoi-dung-Viet-Nam-nam-2011.html[accessed 27th November, 2012]

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