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Contents

Chapter 1: What is marketing.................................................................................................. 4


The customers...................................................................................................................... 4
What do customers buy....................................................................................................... 4
Answer.............................................................................................................................. 4
Where is the value of the product found?............................................................................4
Answer.............................................................................................................................. 4
Think of the implications for your company / business........................................................4
Exercise................................................................................................................................ 5
Definition.............................................................................................................................. 5
Five basic markets & their connecting flows........................................................................6
Relevant marketing concepts............................................................................................... 6
Chapter 2: Develop Marketing Strategies & Plans...................................................................7
Views of the Value Delivery Process..................................................................................... 7
Business Unit Strategic-Planning Process.............................................................................7
Business Plan for Group Assignment.................................................................................... 7
Developing marketing strategies......................................................................................... 8
(Textbook) Porters generic strategies..................................................................................8
Chapter 3: Gathering Information & Scanning the environment...........................................10
Company ))) Industry environment ))) Macro environment.............................................10
Industry environment......................................................................................................... 10
Analysis tool: 5- forces model by Michael Porter.............................................................10
Other tools...................................................................................................................... 10
Macro-environment............................................................................................................ 10
Analysis models.............................................................................................................. 10
PESTLE............................................................................................................................ 11
Internal Environment.......................................................................................................... 11
Analysis model: Value chain (for business in general)....................................................11
The Demographic Environment.......................................................................................... 11
Household Patterns......................................................................................................... 11
Discussion.......................................................................................................................... 11
Thank you when.............................................................................................................. 11
Sorry when...................................................................................................................... 12
Opportunities.................................................................................................................. 12
Other Major Macroenvironments........................................................................................ 12

Natural Environment....................................................................................................... 12
Related to individual assignment.................................................................................... 12
Group assignment................................................................................................................. 12
Chapter 4: Conducting Marketing Research and Forecasting Demand..................................14
The Marketing Research Process........................................................................................ 14
Management Problems <> Research Problems.................................................................14
Chapter 5: CREATING Customer Value, Loyalty and..............................................................15
The change in organization................................................................................................ 15
Traditional Organization.................................................................................................. 15
Modern Customer-Oriented Company Organization........................................................15
Determinants of Customer-Delivered Value.......................................................................15
Value and Cost................................................................................................................ 15
Chapter 6: ANALYZING Consumer Markets............................................................................17
Self-Check.......................................................................................................................... 17
Model of Consumer Behavior............................................................................................. 17
Factors influencing Consumer behavior..........................................................................17
Cultural.............................................................................................................................. 18
Social................................................................................................................................. 18
Personal............................................................................................................................. 18
Motivation.......................................................................................................................... 18
Five-Stage Model of the Consumer Buying Process............................................................18
Question:......................................................................................................................... 19
Story.................................................................................................................................. 20
CHAPTER 7: ANALYZING Business Markets............................................................................ 21
The buying center.............................................................................................................. 21
Buying center includes....................................................................................................... 21
Questions........................................................................................................................... 21
Purchasing steps of Business organization.........................................................................22
CHAPTER 8: IDENTIFYING Market Segments and Targets......................................................23
Market segmentation......................................................................................................... 23
5 patterns of target market selection................................................................................. 23
Single-Segment concentration........................................................................................ 23
Selective Specialization.................................................................................................. 23
Product Specialization..................................................................................................... 23
Market specialization...................................................................................................... 23
Full Market Coverage...................................................................................................... 23

Case study: Levis.................................................................................................................. 24


Market segments................................................................................................................ 24
Analysis methodology........................................................................................................ 24
Questions........................................................................................................................... 24
Basis................................................................................................................................... 25
CHAPTER 9: CREATING Brand Equity..................................................................................... 26
Brand................................................................................................................................. 26
What is brand equity.......................................................................................................... 26

Chapter 1: What is marketing

Introduce and convince


People / customer / target market
Product / services

What is the difference between marketing and sales?

The customers
What do customers buy
Brainstorming: When a customer buys a pen, what do they buy?

Utility
Design, appeal to their sense of humour
Gift
Status symbol
Sourvenir / Memory (design also plays a part) (Space Needle in Washington)

Sales location

Bookstore / Stationery store


Airport store

Product
Price
Place
Promotion

4P

For example, to promote the souvenir pen, it is impractical to use posters and other
expensive promotional methods. It is cheapest to smartly display the products to customers
eyes.
Answer
Benefit
Ask: when customer use your product / service, what benefit are they looking for?

Where is the value of the product found?


How it benefits the customers? How much benefit it brings to customer?
Look at the product and service from the customers point of view.
Answer
The value comes from the customers mind

Think of the implications for your company / business


Customers dont buy services, they buy solutions.
Think of how your products / services solve customers problems.

How to understand what customers think of your products and services

Survey
Aftersale service (phone calls, contacts...). Listen to complains, fix when applicable.
Good way to make a repeat customer and improve company image.
Social media

(???)

Exercise
Product
Pen
Imported alcohol

Benefit
...
Status symbol
Experience
Getting wasted

Perfume

Status symbol
Attractiveness
(Confidence)

Car

Status symbol
Convenience
Safety
Economy
Environment-friendliness

Credit card

Status symbol
Convenience (Ease of transaction)
Safety
Economy
Image / Brand association (Manchester
United)

Your products

Why do you come to the pronunciation training course?


Ship or Sheep?
Source: Apollo

Definition

Marketing is about identifying and meeting human and social needs.

meeting needs profitably.

The objective of a business is not to make money.

The objective of a business is to serve its customers the result is to make money

Marketing is the science and art of exploring, creating, and delivering value to satisfy
the needs of a target market at a profit
Marketing is a philosophy. Mission: to raise the material standard of living and the
quality of life throughout the world.
(Philip Kotler 2005)
123

Five basic markets & their connecting flows

Government markets
Resource markets
Manufacturer markets
Intermediary markets
Consumer markets

A simple marketing system


Industry (collection of sellers) Market (collection of buyers)

Key concepts in marketing

Need, want and demand


o Why marketing starts with needs and not demands
o Lose out customers (potential customers who might be able to afford the
products/services, not to mention the existence of banks and home loans)
Products
Value, satisfaction and quality
Exchange and relationship
Markets

Relevant marketing concepts

External marketing
Internal marketing (staff, supplier, governments, regulators, etc) (???)

Chapter 2: Develop Marketing Strategies & Plans


Views of the Value Delivery Process
(a) Traditional Physical Process Sequence
- Focus on the product
- Start from the manufacturer
- Begin with producing
- Sell what you made
(b) Value Creation and Delivery Sequence
- Focus on value
- Start from the customer
- Begin with researching, selecting & understanding customers
- Make what sells

Business Unit Strategic-Planning Process


Business Plan for Group Assignment

Table of Contents

Current situation
Consider using SCORING to evaluate (High threats, medium threats, low threats, etc)
Internal environment
Output:
o Number of strengths
o Number of weaknesses
o In terms of current products and services
Opportunity and issue analysis
External environment
Output:
o Opportunities
o Threats
o
SWOT analysis
Strength
Weakness
Opportunities
Threats
COMBINE strengths with opportunities & threats
(companies have experience with customer group A, but many other competitors
have even better experience at dealing with customer group A)
COMBINE weakness with opportunities & threats
(company has little experience with customer group B, but selecting this customer
group leads to fewer competitors)
To figure out a more suitable target market / strategy

Other things to consider:


Great crisis (current or potential) in current market
Great (potential) opportunity in new market

Target Markets
Objectives

Marketing plan for 6 months (or 1 year)


Pick 1 product / service
Goal S.M.A.R.T. (Specific, Measurable, Achievable, Realistic, Timing ?)
Marketing strategy
Need to discuss 4P (for product) or 7P (for services, + People, Process (queuing vs
taking numbered ticket), Physical evidence (uniform of staff, building design & color,)
to assure the value of intangible services and convey the companys image)
Action programs
Selective tools to specifically target customers (?)
Which media
Moderately detailed ()
Financial projections (Optional)
Controls (Optional)

Developing marketing strategies

Where are we?


Environment (Internal & external)
Where do we want to be?
Objective
How can we get there?
Strategy
Product
Pricing
Promotion
etc

(Textbook) Porters generic strategies


Overall cost leadership. Firms work to achieve the lowest produc-tion and distribution
costs so they can underprice competitorsand win market share. They need less skill in
marketing. Theproblem is that other firms will usually compete with still-lowercosts and hurt
the firm that rested its whole future on cost.
Differentiation. The business concentrates on achieving supe-rior performance in an
important customer benefit area valuedby a large part of the market. The firm seeking
quality leader-ship, for example, must make products with the bestcomponents, put them
together expertly, inspect them carefully,and effectively communicate their quality.
Focus. The business focuses on one or more narrow market seg-ments, gets to know
them intimately, and pursues either costleadership or differentiation within the target
segment.

Chapter 3: Gathering Information & Scanning the environment


Company ))) Industry environment ))) Macro environment
To analyse: One needs to look at
-

Internal environment
Industry environment
Macro environment (the economy as a whole)

Industry environment

Story: A company of Michael


Potter went bankrupt (~2014)
Do we still use his textbook?
Strategy is not the only
determinant of a business
success.

Analysis tool: 5- forces model by Michael Porter


- Competitors
+ Strength, Weakness
+ Strategies (when strong competitors are aiming at a niche market that is not the
companys market not really a threat)
- Suppliers
+ Resources
+ Personnel
+ Bargaining power
- Customers
+
- Substitutes (other ways to achieve goals that are fulfilled by your products and
services. For example, online-conferencing might have contributed to the reduction in
business trips. Consider the future of tourism in the advance of VR experiences.)
+ Example: movie cinemas (what kind of movies are shown, which customers are
targeted, what added value are taken advantage of?)
+ Do customers have more bargaining power?
- New entrants
+ Potential competitors
+ TPP and other trade agreements
+ Foreign competitors will enter Vietnamese market
+
Other tools
Industry Life Cycle
Example: Where is the banking industry in the life cycle? Is it mature yet?

Macro-environment
Analysis models
Legal-Political
- Government, policy in VN is confusing, muddled and lack transparent
- Is it a threat? Or opportunities?
- Consider new products or business models that are not yet regulated by law?
- Problem of classification: explain your policy or products in a way that makes it more
acceptable to the law, or makes it apply to another tax category.
-

Economic forces
Social-Cultural
Technological forces
Demographic
Natural forces

PESTLE
Political
Economic
Social-Cultural
Technological
Legal
Environment (natural, demographic)

Internal Environment
Analysis model: Value chain (for business in general)

The Demographic Environment


(E in Pestle)
Household Patterns
Traditional household: Husband, wife, children
Non-traditional household are growing rapidly, with distinct needs and buying habits
o Singles
o Single-parent families
o Divorcees

Discussion

Changes in cultural values in Vietnam?


Culture of thank you & sorry in daily life? Implications for marketers?

Training:
Thank you when
- Customer comes to do business
- Customer displays patience (waiting in line)
- Customer expresses disatisfaction
Sorry when
- Customer
- Customer
- Customer
- Customer

cannot be served yet (sorry, I need to check with mr XYZ)


has to wait (sorry for keeping you waiting)
cannot be served (sorry, were out of tables)
displays dissatisfaction with past experience ()

Opportunities
- For training organizations: etiquette (?) (Say Thank you, Sorry and smile more
often)
- Postcard companies (Thank-you cards) Build good relationship with customers.
- SMS (thank-you messages), gifts or loyalty programs
- Event organizers (anniversary / thank-you events)
Relation between quality of service customer satisfaction customer loyalty
Customizing products

Other Major Macroenvironments


Natural Environment
Marketers have to take note of:
1.
2.
3.
4.

Shortages of raw materials


Increased costs of energy
Increased pollution levels
Changing role of governments protect environment

Related to individual assignment

Group assignment
Products ideas
-

Inflatable houses
o Problem: materials environmental concerns
Curtains
o Luxdecor
o Brands: Dexter, Modero
o Suppliers: ...
o Manufacturing (import material, machineries)
o Distributors: ...
o Current market: Distributors, individuals, Projects (hotels, governments, villas)
Individuals place order at distributors
o Target segmentation: high-end, modern projects
o Differentiation:
Customizing sizes, designs

o Marketing:
not much, because production is slow, it is uncertain that manufacturing
can meet orders (?)
o
o
Conductix
o B2B B2C companies
o Niche markets
o Price

o
o
o
o
-

Conductix.com
Railways
Conductic
Metals

Points of consideration
o International market or Vietnamese market
o Many competitors
o

Chapter 4: Conducting Marketing Research and Forecasting


Demand
Marketing Management An Asian Perspective 4th edition
Kotler, Keller, Ang, Leong & Tan
Project-based activity

Use internal system


Use customer research projects

Components (of?)

Marketing Intelligence
Secret customer
Marketing Information System
Marketing Research

SPSS, AMOS

The Marketing Research Process

Define the problem and research objectives


o Rationale (problem 1,2,3...)
Develop the research plan
o Methodology
Qualitative: Bao Viet, Vietnam Airlines, EVN
Focus groups (6-12 people per group, 1-3 hour sessions)
Discuss issues
Sample size (why 300? de facto standard), sampling technique
Quantitative:
Survey
Questionnaire
Collect the information
o
Analyze the information
o
Present the findings
o
Make the decision
o

What sort of decision are we looking at?

Management Problems <> Research Problems


How to make customer return is a management problem
Before conducting research, take a look at:

The market as a whole (for example, if all stores experience the same problem,
because of recession or whatever, then it is not necessary to do the research yet)
Eliminate the other obvious reasons that make the researc redundant.
Narrow down the problem to a research problem ()
What do we want to know is a research problem (WTF?)

Chapter 5: CREATING Customer Value, Loyalty and


The change in organization
Traditional Organization
Top management
Middle Mgmt
Front-line people
Customers
Modern Customer-Oriented Company Organization
Customers
Front-line people
Middle Mgmt
Top Mgmt
In the new model, customer is put at the most important part.
Next, front-line staff is the first people customers come in contact with, the last people they
see, and most of the time, the ones who deliver the sale
Term: Moment of Truth concept
(Jan Carlzon)

Determinants of Customer-Delivered Value


Satisfaction states:

...
...
Satisfied (service meets expectation)
Delighted (service exceeds expectation)

Value and Cost


(What the customer gains)
o Image Value (reputation) Personnel value Services Product value
Total customer value
(What the customer have to spend)

Psychic cost (opportunity cost, buyers remorse, brand association) Energy


cost Time cost Monetary cost Total customer cost

The combination of Value and Cost makes the Customer-delivered value (Value Cost)
Goal: increase Value and decrease Cost

Chapter 6: ANALYZING Consumer Markets


Consumer = End users

Self-Check

Why is customer important?


Why is it important that we understand customers?

Model of Consumer Behavior

CB = Consumer Behavior
Purchase Decision is PART OF the Buying Decision Process
Factors influencing Consumer behavior
Marketing Stimuli
o Product & Services
New packaging (Coca Cola your own message)
o Price

o Distribution
New store
o Communication
Promotion
Price cut
Environment
o Economic

o Technological

o Political

o Cultural

o Natural environment
Bird flu impacted KFC

Formosa scandal Fish


Consumer Characteristics
o Cultural
Deepest impact on behavior
o Social
o Personal
Consumer Psychology
o Motivation
o Perception
o Learning
o Memory
Past experiences with product

Cultural
HCM City consumers are more willing to take risks
M95 gasoline (?) launched in HCMC was successful, unlike in Hanoi
Term: Consumer Ethno-centrism

Developed 1987 (?) Kotler (?)


If customer is Ethno-centric Big resistance to buying imported products
In VN, the level is low on young & middle income people

Another dimension: National Identity

Level is high in Vietnam


Example: BITIS hired a foreign company to develop their slogan and image
Treasuring the Vietnamese feet (?)
o Tapped into peoples national identity
Example: Hondas I love VN marketing campaign
o Honda converted a threat into an opportunity

Social

Role-Models, Idols

Personal

Age, income, etc


Personality
o Impulsive buying (Note how supermarkets display items)
o Compulsive buying

Motivation

Maslows levels of needs

Five-Stage Model of the Consumer Buying Process


Part of the big model

Problem recognition
Information search
Evaluation of alternatives
Purchase decision

Postpurchase behavior

Question:
What should companies do to influence customers to use their products and services

Problem recognition
o Improve brand awareness
o Multiple products aimed at different customers. Marketing needs to make that
clear
o Marketing campaign directed towards target market
o Promotions, deals
o Create needs
o Consultant
Information Search
o Make information widely available
o Easy to search, filter, compare, evaluate
o Target customer
o Should we include info about competitors product (?)
Do not criticize competitors
Should prepare, and present OBJECTIVE (technical report, measurement,
etc) comparison to customers
Admit weaknesses, and also present advantages
FOCUS on the distinct benefit to customer
Evaluation of alternatives
o Make it easy to compare and evaluate different products
o Support information by phone / chat
Purchase decision
o Product recommendation (Customers who purchased this product also
purchased ...)
o Different purchase options
o Different payment options
o Financing options (banks, loans) esp for housing or automobile markets
o Added value (decoration, display, music, service, gift, etc)
o Chat / support feature
o
Postpurchase behavior
o Technical support
o Post-purchase option: return policy, etc
o Customer service optioin
o Customer feedback (forum, social media)
o Loyalty programs: gifts, discounts for next purchase, etc
o Encourage word-of-mouth promotion (Uber and Grab bike award free rides for
referrers and referrees)

Story
CUPS Coffee & Tea
http://www.littlethings.com/roanoke-coffee-shop/

Reminding people that salespeople are humans too


Educating customers
Sometimes its good to come up with crazy ideas

CHAPTER 7: ANALYZING Business Markets


Paticipants in the Business Buying Process The Buying Center

The buying center

The unit in the customer organization that makes decision to buy


May include people outside organization such as government officials, consultants

Example:

Director
President
Chief accountant
Board of Management
Investment Department
Finance Department
IT Department

Buying center includes

Initiators
o Propose buying
o Sometimes overlap with users
Users
o Actual users of the product
o Provide feedback about the product quality
Influencers
o Evaluate the product
o Especially technical products
o IT personnels, consultants
Deciders
o Make decision (?)
Approvers
o Governmental, influence policies regarding implementation of certain
purchases
o Sometimes overlap with deciders
Buyers
o People who the seller comes in contact with
o Do the transaction
Gatekeepers
o Secretaries, administrative departments. Or actual gatekeepers (security
guards) :D
o Control flow of information to and among others within the buying center.

Keep database of current or potential customers. It is important to maintain information


regarding individual members of the buying center in each customer: habits, preferences,
etc

Questions

Who are major decision participants?


What decisions do they influence?

What is their level of influence?


What evaluation criteria do they use?
Small sellers - key buying infuencers
Large sellers - multilevel in-depth selling

Purchasing steps of Business organization

More professional
More people involved
More evaluations
More meetings
No impulse buying (mostly)
No steps are skipped
Usually planned months beforehand

CHAPTER 8: IDENTIFYING Market Segments and Targets


Market segmentation
Process of identifying and analyzing subgroups of buyers in a product-market with similar
response characteristics (Cravens & Piercy, 2006 P97)
Self-Check
User real-life example to illustrate
How to segment market
Which criteria
Location
Customer age, gender
Customer attitude

5 patterns of target market selection


Single-Segment concentration

Selective Specialization

Product Specialization

Market specialization

Full Market Coverage

Case study: Levis


Market segments

Type 1: Traditionalist (probably over 45; department store shopper, buys polyester
suits and slacks, shops with wife)
Type 2: Classic Independent (a real clothes horse; 21% of market, yet buying 46% of
wool blend suits, buys at independent stores; expensive tastes)
Type 3: Utilitarian (wears jeans for work and play; 26% of the market; Levi loyalists)
Type 4: Trendy Casual (buying designer, high fashion clothes, might buy 501s, but
usually considers Levi too mass-market; 19% of the market)
Type 5: Price Shopper (buys whatever and wherever the lowest prices are found; no
potential for Levi; 14% of market)

Analysis methodology

Cluster analysis

Questions
Tailored Classics

Criteria used for market segmentation?


o Age
o Shopping habit
Favorite locations of purchase (department stores, independent stores)
With whom?
Favorite types of clothes (Benefit: casualness, trend, fashion)
Spending habits (frugal or exquisite)
o Attitudes towards Levis
Is selecting Type 2 reasonable?
o No, why?

o Type 5:
Nope
o Type 4:
Nope
o Type 3: Existing customer
Does not fit objective (new customer type)
o Type 1: Buy with wife, in department store
Does not fit objective (low medium priced clothes)
o Type 2:
Fits objective. (willing to spend)
Reasons for levi's failure?
o Is the objective wrong? No.
o Is the segment unsuitable? No
o Why did they fail:
P: Product:
standard fittings vs expectation (customized, tailored)
Brand & Image: Company image of casualness not yet associated
with good suits.
P: Price: High price, but does it justify the value?
Place:

Distribute at department store chains (not type 2s choice of


shopping location).
Promotion:
Concentrate on the separate jackets and trousers in the
launch advertising. Let suits slipstream.
Not yet build an image associated w/ high-priced clothing.

Basis
Depend on industry and market, and other information to select criteria to segment market.
Question in assignment: why choose these criteria???

Geographic bases (Not in this case. Customer in all of US)


Demographic (Age, Gender, Income, ...)
Psychographic (Lifestyle, Social class, ...)
Behavioral (Loyalty level, Desired benefits, Willingness to spend ...)

Companies who launches seperate high-end product lines

May 10
Viet tien
An phuoc
Toyota (
Lexus Camry ?

Term: S.T.P

Segmentation
Targeting
Positioning: (position the product in customers mind) problematic

CHAPTER 9: CREATING Brand Equity


Brand
Name, sign, symbol, design to identify goods/services of seller & differentiate from
competitors goods/services
Kotler et al
a.k.a. Brand Identity,
May extend beyond a single product (ex. Sony)

What is brand equity

Brand awareness
o Brand recognition and brand recall
Perceived quality
o
Brand associations
o Image, values,
o The meaning of the brand for consumers
o Similar to brand image
Brand loyalty
o Attitude & behavior

(Aaker, 1991; Keller, 1993)