ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2 Marketing Essentials

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Student Name Le Hai Minh Student ID GCH18030

Class GBH0808 Assessor name Bui Thi Quynh Giao

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Table of Contents
I. INTRODUCTION ............................................................................................................................................... 4
II. THE KEY ROLES AND RESPONSIILITY OF THE MARKETING FUNCION ................................................................. 4
1. Understand the Marketplace and Customer Needs and Wants .................................................................. 5
2. Designing a Customer-Driven Marketing Strategy ...................................................................................... 6
3. Preparing an Integrated Marketing Plan and Program................................................................................ 8
4. Building Customer Relationships ................................................................................................................ 9
5. Capturing Value from Customers .............................................................................................................. 10
III. The interrelationship of marketing function and other functional units of a business ................................. 12
1. Marketing and Top Management ................................................................................................................. 12
2. Marketing and Finance & Accounting ........................................................................................................... 12
3. Marketing and R&D and Manufacturing ....................................................................................................... 13
4. Marketing and Human Resource .................................................................................................................. 14
5. Marketing and Purchasing ............................................................................................................................ 14
IV. Conclusion...................................................................................................................................................... 16
REFERENCES.......................................................................................................................................................... 16
 I. INTRODUCTION
Marketing was created in the production of capitalist goods to resolve the conflict between supply
and demand. Starting from the United States, then convent spread to other countries. Vietnam received
and learned about Marketing in the late 80s and early 90s when the economy was transitioning to a market
mechanism (Nguyễn, 2019). Marketing brings in and gives customers a clear understanding of the value
of each type of product or service in new and effective ways. In addition, it appears when customers have
a need to learn about products and services and improve those products. Moreover, marketing helps to
connect relationships among other departments in the company, connecting customers and other
companies. To better understand the importance of marketing, we will expertise the role and
responsibilities of marketing, and the relationship of marketing with other departments.

II. THE KEY ROLES AND RESPONSIILITY OF THE MARKETING

FUNCION
Marketing is an important strategy in the business development process of a business. But during the
past development process, marketing has been defined in many different ways. According to Philip Kotler
and Gary Armstrong (2009), Marketing is overseeing beneficial client connections. The twofold objective of
promoting is to pull in new clients by promising better worth and then keep and develop current clients by
conveying fulfillment. According to the American Marketing Association, Marketing is the way toward
arranging and executing the origination, evaluating, advancement and conveyance of thoughts,
merchandise, and ventures to make a trade and fulfill individual and hierarchical destinations (AMA, 1985).
Marketing is the way toward getting potential customers or clients intrigued by your items and
administrations (Cyberclick.es, 2019)

In short, marketing is seen as a process of exchanging value between customers, partners and
businesses to bring certain benefits at a certain cost. In the process, the value is variable for each side. This
process serves the five core roles and responsibilities analyzed below.

To learn more about marketing, we will carefully analyze its role and responsibilities. The main roles
and responsibilities of the marketing function are focused on the following tasks: understand the
marketplace and customer needs and wants, design a customer-driven marketing strategy, preparing an
integrated marketing plan and program, building customer relationships and capturing value from
customers.

1. Understand the Marketplace and Customer Needs and Wants

Source: Cloverbites, 2019

 The first task is understanding the Marketplace and Customer Needs and Wants. Human needs
appear every time they are lack of something. It includes many different needs such as physiological
needs for water, food, sleep, clothing; safety needs for personal security, employment, health; love and
belonging needs for friendship, family, intimacy; esteem needs for status, freedom, strength and self-
actualization needs (Mcleod, 2019). According to Philip Kotler and Gary Armstrong written in “Principle of
Marketing 15th” (2014), “wants are the form human needs take as they are shaped by culture and
individual personality” and “when supported by purchasing power, wants become demands”. To improve
marketing strategy and attract more potential customers for businesses, marketers must study carefully
about "wants" and "needs" because this is the original problem of market offering. More specifically, they
have to identify information about consumers, information about products and services that businesses
are providing and other alternative products on the market, from which the marketer will have a broader
vision to develop brands, understand customers and understand their buying behavior, give them what
they need and make a profit. In addition, understanding customer's "need and want" will also prevent
marketing myopia. Marketing Myopia is a situation when a company has a narrow-minded marketing
approach and it focuses mainly on only one aspect out of many possible marketing attributes. For example,
concentrating just on quality and not on the genuine interest of the client (Pahwa, 2019). A market that is
rated as good will be based on many different factors, but the most important one is based on a customer
database. If the marketer has the right information about the customer, they know what the customer
wants and needs, thereby reducing marketing myopia, helping them not to spend much time and money
on marketing unnecessary things. In the past development process, marketing is seriously affected by the
factors of macroeconomic so the marketing process should start from understanding what customer’s
“wants” and “needs”. For example, people of different ages could have different physiological needs,
Young people often use a variety of fast foods and older people will prefer to use healthy, fresh foods.

2. Designing a Customer-Driven Marketing Strategy

Business is difficult to meet all the needs of all their customers. If they want to gain a lot of profits and
win customers from competitors, the marketer must choose the right type of products and services to
provide customers through customer and market information. The marketer must divide the market,
select the market segment and select customers, thereby designing a marketing strategy to meet
customer needs and value (value proposition) (Kotler & Armstrong, 2014). This process involves market
segmentation, market targeting, differentiation, and positioning. The high-end cosmetic brands such as
DIOR, LANCOME, their customers are mostly ambitious customers and want their appearance to be more
luxurious and flashy than concerned about the quality of the product. This customer segment has been
studied based on cultural identity, demographic features, and economic capabilities. Over time,
management orientations were born based on the following five orientations: the production concept,
product concept, selling the concept, marketing concept, and societal concept. The production concept
is that customers will choose products and services that are widely available and low cost. Therefore,
business is primarily concerned with making as many units as possible. By focusing on maximum volume
production, such a business aims to maximize profits by harnessing economies of scale (Bhasin, 2019).
Product concept can be briefly understood as a brief description of new products, from product ideas, to
features and outstanding points of new products. The product concept not only helps departments in the
company understand the new product, but also applies it later in advertising materials to promote this
new product line (Phuong Duy, 2019). The selling concept aims to sell the company's products, focusing on
persuading customers to buy goods. The focus on selling concepts focuses more on selling the company's
products to consumers without understanding market demand and increasing sales rather than building
and strengthening relationships with customers (Nguyen, 2018). Marketing concepts have the purpose of
overcoming, supporting the disadvantages of selling concepts, creating long-term target benefits for
businesses. For Concept in marketing, it is the idea, content, form of marketing that aims to understand
the needs of customers (Nguyen, 2018). Social marketing is a form of advertising through social networks
such as Facebook, Twitter, LinkedIn and developing fan pages to increase brand awareness
(Xuhuongtiepthi.com, 2019).
 Source: Prof. Dr. Prakash Singh, 2019.

3. Preparing an Integrated Marketing Plan and Program

The next task is preparing an integrated marketing plan and program that delivers superior value.
The company's marketing strategy outlines which customers will serve and how to create value for these
customers. Marketers develop an integrated marketing program that builds customer relationships by
converting marketing strategy into action. It includes the company's marketing mix; the marketing toolkit
it uses to implement its marketing strategy. The 4Ps Marketing model was built in the 1960s, by economist
E. Jerome McCarthy. From that time, the 4Ps Marketing model became famous and used, as well as taught
in businesses and colleges around the world. The 4Ps Marketing model is also the foundation for the
Marketing Mix concept in general (The Marketing Mix, 2019). The marketing mix typically consists of 4P's
products, places, promotions, and prices. To follow its value proposition, the company must first create a
product (product) that meets its needs. They must then decide how much they will charge for the delivery
(price) and how to deliver it to the target customer (place). Finally, it must contact the target customer
about the offer and convince them of its value (promotion). (Kotler & Armstrong, 2014). The Marketing
Mix 7Ps model is an extension of Marketing Mix 4Ps, dedicated to providing intangible services. The
remaining 3 components of this model are the target customers that businesses are targeting (people),
processes, systems that help businesses provide services to the market (process), and retailing and
wholesaling as well as product packaging (physical evidence) (The Marketing Mix, 2019). The above
marketing model has helped businesses build appropriate marketing programs and deliver the intended
value to chosen customers. In addition, marketers must adjust a number of factors to fit into of the
external marketing environment. To prove, the feature of a product, particularly a smartphone. In the
Japanese market, all smartphones intentionally do not allow the sound to be turned off when taking the
photo. But in the world smartphone market allows to mute when taking pictures.

4. Building Customer Relationships

 Building customer relationships is the most important key in the marketing function. According to
Kotler and Armstrong (2014), the customer-perceived value, the customer’s judgment about the overall
benefits and costs of a company’s market offering comparing to its competitors, is the force that
determines the customers’ choice of one product over another. Marketers need to focus more on
customer relationship management - the overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction. When customers like the products
and services they provide, they will support the product more and the business will make more profit.
Therefore, it is critically essential to maintain the customers ’satisfaction at the highest level possible by
offering exceptional services and letting them know that they are buying the right product. On the other
hand, creating partner relationship management is recommended. Partner relationship management
involves working closely with partners in other company departments and outside the company to jointly
bring greater value to customers. Moreover, creating a relationship between seller and customer is also
essential. The key and core of the idea are to build good relationships with customers based on their
importance to the company. In a true external marketing environment, marketers must consider all the
macros and microeconomic factors to measure the customers' internal potential. For example, in recent
years, the rich in China have increased rapidly and the demand for luxury goods has also increased
significantly. Therefore, marketers need to have focused marketing campaigns, prioritizing money for
customers of that upper class. In a nutshell, a good relationship between a company and a customer
stems from its value and services.

5. Capturing Value from Customers

Creating and capturing customer value is the final step in the marketing process. Successful
companies try to satisfy their customers and capture value from their customers. By capturing customer
value, companies build long-term relationships with their customers. Satisfied customers tend to buy
more and remain loyal to the company, resulting in greater long-term profits. To foster the positive
results of value creation, companies tend to create customer loyalty, retention to capture the lifetime
value of their customers and make a profit from the lifetime value; they tend to increase market share
through increasing their market share; and finally, build customer assets through sustainable and organic
growth. In addition, customer loyalty to products and services is also influenced by factors of the marketing
environment. To prove it, in 1989, Pepsi signed a $ 5 million brand representation contract for a year with
rock singer Madonna. But unfortunately, a week later, Madonna released the song "Like A Prayer" and
there was a wave of outcry because in her MV there was an insult to Jesus. The MV sparked a wave of
protest from Catholic churches, forcing Pepsi to quickly end her contract with the singer. However, this
"accidentally" MV brought Pepsi a dense coverage in the newspaper that year, causing the company's
revenue to increase significantly (Le Phuong, 2019).

In my opinion, the most important task of marketing is to designing a customer-driven marketing

strategy and more importantly, customer selection and market segmentation. According to Elmansy
(2017), “The market segmentation helps the design team to define the research scope and subsequently
build a product that meet with the customer’s needs” and “Market segmentation is the initial step in
marketing due to its importance to define the target customer, designers need to clearly understand the
market segment.” This statement has helped to clarify the market segment. Specifically, for quite a while,
Mini Cooper was known as the cool British vehicle for a person with extraordinary taste and high vitality;
generally youthful customers with the age 20-30. It is likewise advanced in the British market as the
notable notorious UK vehicle for youthful lively youthful customers. These were not related to any of the
value in the United States market. Mini was known as a youthful lively vehicle; it has other market sections
concentrate however these portions were no all-inclusive. By and large, Mini Cooper fragments the market
dependent on two factors, the first depends on the behavioral and the geographic. Moreover, an example
of demographic marketing segmentation has shed some light on its importance. This is a method that the
market will be broken down by demographic characteristics such as age, gender, income, occupation,
religion, generation, etc. Dong A Bank segment the market by occupation. This is the method that the
market will be broken down by demographic characteristics such as age, gender, income, occupation,
religion, generation ... Dong A Bank segment the market by occupation, they always appreciating the great
contributions of medical practitioners, therefore, a doctor card (Dr card) has been issued for doctors. With
Dr Card, customers will enjoy the benefits that only Dr Card can enjoy (Dongabank.com.vn, 2019). All in
all, the most important task of marketing is to design a marketing strategy based on research on market
segmentation. If the marketer does not perform this research, it is very difficult to develop a brand.
III. The interrelationship of marketing function and other
functional units of a business
As proven above, the marketing department is a necessary part of the company to be able to offer
the best and most effective marketing strategies. Other parts of the company have their own functions,
but they are closely related and have a positive and negative impact on the marketing department. These
include Top Management, Finance, R&D, Purchasing, Operation, Accounting, and Human Resource.

1. Marketing and Top Management

Top management is the leader of a business, so the relationship between this department and the
marketing department is an information exchange. In order to come up with an effective strategy, the
marketing department will provide top management with all data about customers, markets, and products
to select the appropriate strategy and bring more profits to the business. The people involved between
these two departments must work together, making the best decision about marketing activities. After
that, top management will set the criteria for the marketing department such as brand, sales, etc. so that
they can implement the strategy most effectively. But if top management sets the requirements and
criteria too high, it will lead to work overload, causing productivity decline. However, in the making of a
marketing strategy, conflicts between these two departments may occur due to wrong information or
misunderstanding. When the information provided is incorrect, it will lead to making many wrong business
decisions that prevent the company from making a profit, which can lead to bankruptcy.

2. Marketing and Finance & Accounting

Finance & Accounting and marketing are the three pillars on which the growth and profits of
company. The Finance Department is part of an organization that is responsible for buying capital for the
company, managing funds in the organization and planning fund spending for various assets. It is part of
an organization that ensures effective financial management and financial control necessary to support all
business activities (Pharmapproach.com, 2019). The finance department is the main provider of funding
for all marketing department projects and activities. No advertising and publicity of the company's product
sales will not improve and no revenue, there will be no profit so no marketing will not need financing
because the basic function of finance is to find ways to increase Profits and when there is no profit the
entire functional finance will become redundant. Similarly, for successful marketing, people need a strong
financial base because it is funded through which the company sets its marketing goals as sales goals. As
one can see above that marketing and finance are like husband and wife, even though they will always
have differences of opinion, they will be together forever because both are related to each other and
they are not can operate in isolation and therefore companies should see marketing and finance instead
of different departments, both should be allowed to work together to help the company achieve its pre-
defined goals (Parikh, 2019).

3. Marketing and R&D and Manufacturing

Manufacturing, R & D, and Marketing are working together on new products. Marketing is able to
find out what people want. Manufacturing will show you what you need to make and how you can
create adjustments in price/time. R&D continues business practices for designing and introducing new
products and services. The company will spend a lot of time and money producing a new product or service
and putting it into operation successfully, so the development is stable after the product or service is
launched. It is important that these three parts. However, the relationship between the R&D department
and the company's marketing department is not always intimate. According to a survey conducted by
Philip Kotler, Robert C. Wolcott, and Suj Chandrasekhar, only 34% of middle managers described the
relationship between their company's R&D & marketing departments (Technology, 2019). But if they work
together and always in harmony, the company will work very well, optimize revenue and bring very high
profits. To better understand the result of the combination of these three parts is KFC. The original product
of KFC is the original recipe fried chicken pieces that Sanders discovered with "Recipe with 11 herbs and
spices." But when it comes to Asian markets like China, Vietnam, Japan, the marketing and R&D
department will have to study customers' needs, eating habits and shopping behaviors in order to be able
to regulate. adjust the menu to best suit consumers in each place. In Japan, KFC has "Croquette Double
Down" bread with 2 pieces of croquette (chips) instead of bread. or in Vietnam, there are more kinds of
rice to eat with chicken in the KFC menu because Vietnamese people use rice as the most used food in the
meal.
4. Marketing and Human Resource
Marketing and human resources are not so distinct as people think. Department of Human Resources
controls and plans to hire employers for the company. The Department of Marketing will be planning
communications and marketing on the recruitment program. HR and marketing collaborate to build the
organization's brand. While the marketing department expresses the company's brand to customers; the
HR and advertising partnerships offer workers the company brand. Businesses are creating a universal
brand message using social and technology-based tools, one that applies to workers and consumers
(Thatcher, 2017). Nonetheless, there will misunderstanding between both teams when they have
different thinking on recruitment requirements or the post-hiring disappointment. Sainsbury's
sponsorship of the 2012 Paralympic Games is a good example of bringing together marketing and HR.
Sainsbury's is the game's first ever tier-one sponsor. Burr links individual Paralympians with their sports to
the store property, ensuring active involvement of both workers and customers. This has created the most
enthusiasm among employees of any single activity over the past five years, according to chief executive
Justin King of the organization. More than 3,000 colleagues have applied at the Paralympics for the 150
volunteer jobs (Harrington, 2011).

5. Marketing and Purchasing

The relationships between marketing and purchasing depend on clear communication between
purchasing staff and coworkers, who rely on the items they purchase. A productive relationship between
Procurement and Marketing departments also hinges on having data and information systems in place to
easily and accurately convey information. The marketing department will provide purchasing with a
detailed list of materials to buy for new products. However, the purchasing department may have
difficulty in procuring these materials for various reasons such as out of stock, poor quality of raw
materials, high raw material prices and so on. Shortages of raw materials will reduce the number of
production of new products, and the quality of products will also decrease, not as customers expect. For
example, Nokia's decline is partly due to the fact that the company is always looking for low-price
substitutes that lower the value of its goods. Nokia's marketers cannot increase their sales of such products
(Monaghan, 2013). All relationships between the marketing department and other departments will be
shown in the overview below according to the book “Marketing Management: Knowledge and Skills” by
Peter and Donnelly (2007). (The figure does not refer to the marketing function and top management and
purchasing relationships)

(The McGraw-Hill Enterprises website, 2001)

Marketing is an indispensable department in any company, big or small, and the intimate relationship
between departments in the company and marketing will help the company thrive. The following example
will prove this. Other functions of Vinamilk have a great and perfect combination with the marketing
department. The marketing department has collaborated with H&D and production to create the product
"VINAMILK POWER ENERGY DRINKING FRESH ORANGE AND SOCOLA VERSION U23 VIETNAM." U23
Vietnam is a hot keyword that all Vietnamese people know, taking advantage of this, they have launched
a new product with the U23 version that has attracted a lot of customers. Vinamilk's purchasing
department exploited the supply of quality raw materials. The expenses, investments, and profits earned
from the sales of Vinamilk are fully listed in the annual financial statements of the finance and accounting
department. It is significant to foster the trust of the organization's shareholders. Both of these features
create a perfect environment for the marketing role of Vinamilk to operate well and collaborate with the
operational units described above.

IV. Conclusion
Marketing in a business is very important and irreplaceable. In promoting images, Marketing plays an
important part and will help the company earn revenue and profit. Marketing, in other words, is
responsible for creating business customers. Without marketing, businesses cannot be successful, so do
not cut back or cut off the marketing department.

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(The McGraw-Hill Enterprises website, 2001)