2020

Assignment 1:
The roles and Responsibilites of Marketing
Student name : Le Thuy Trang
Teacher : Alelie C. Zaragoza
Due Date : 6 August 2020
Word Count : 6365 words
 ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2 Marketing Essentials

Date Received 1st

Submission date 6 August 2020 9 August 2020
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Date Received 2nd
Re-submission Date 10 August 2020
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Student Name Le Thuy Trang Student ID GBD19855

Class GBD0804A Assessor name Alelie C. Zaragoza

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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 Assignment Brief (RQF)
Higher National Certificate/Diploma in Business
Student Name/ID Number: Le Thuy Trang

Unit Number and Title: Unit 2 Marketing Essentials

Academic Year: 2020

Unit Assessor: Alelie Zaragoza

Assignment Title: Assignment 1 – The Roles and Responsibilites of Marketing

Issue Date:

Submission Date: 6 August, 2020

Internal Verifier Name:

Date:

Submission Format:

The submission is in the form of an individual written report. This should be written in a course, formal
business style using 1.5 lines spacing and font size 12. You are required to make use of headings,
paragraphs and subsections as appropriate, and all work must be supported with research and referenced
using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing
system. Any suspicions regarding plagiarism will lead to failure in results of the assignment. The
recommended word limit is 2,000 words, although you will not be penalized for exceeding the total word limit.

Unit Learning Outcomes:

LO1. Explain the role of marketing and how it interrelates with other functional units of an organization.

Assignment Brief and Guidance:

You are the Head of Marketing Department of Diamond Hotel. Your company is in a downturn situation and
facing many difficulties. In view of the situation, the Board of Directors is planning to cut down the costs as
much as they can. One of their decision is to cut down the expenses, as well as the hurman resource for the
Marketing Department as they think it’s not as important as the other departments in their business. A
meeting will be held next week to finalize this decision. As the Head of the Marketing Department, you have
to prepare a report, which will clarify the important role of the marketing department and its relationships with
other department of the company in order to persuade the BOD to change their decision.
In this report, you should be able to address the following subjects:

1. The definition and basic concepts about marketing.

2. The key roles and responsibilities of the marketing function in organizational context and in the context
of current marketing environment.
3. The interrelationship between marketing function and other functional units of a business.
4. You should also provide evidences (e.g. theories, data, examples) to support your ideas.
Learning Outcomes and Assessment Criteria:

Learning Outcome Pass Merit Distinction

LO1 Explain the role of P1 Explain the key roles M1 Analyze the roles D1 Critically analyze and
marketing and how it and responsibilities of and responsibilities of evaluate the key elements
interrelates with other the marketing function. marketing in the context of the marketing function
functional units of an of the marketing and how they interrelate
organization environment. with other functional units of
an organization.

P2 Explain how roles M2 Analyze the

and responsibilities of significance of
marketing relate to the interrelationships
wider organizational between marketing and
context. other functional units of
an organization.
Table of Figures
Figure 1: Diamond Hotel .................................................................................................................................... 1
Figure 2: Definition of Marketing ...................................................................................................................... 2
Figure 3: Basic concepts of Marketing ............................................................................................................... 2
Figure 4: Five steps to develop a product ......................................................................................................... 4
Figure 5: Different between needs and wants .................................................................................................. 5
Figure 6: Maslow's hierarchy of human needs .................................................................................................. 5
Figure 7: Physiiological needs ............................................................................................................................ 6
Figure 8: Safety needs........................................................................................................................................ 6
Figure 9: Love and belonging needs .................................................................................................................. 7
Figure 10: Esteem needs.................................................................................................................................... 7
Figure 11: Self-actualization needs .................................................................................................................... 8
Figure 12: Marketing Mix................................................................................................................................... 9
Figure 13: Product in 4Ps ................................................................................................................................. 10
Figure 14:Price in 4Ps....................................................................................................................................... 11
Figure 15: Place in 4Ps ..................................................................................................................................... 12
Figure 16: Promotion in 4Ps ............................................................................................................................ 13
Figure 17: Seven functions of Marketing......................................................................................................... 15
Figure 18: Structure of Marketing ................................................................................................................... 18
Figure 19: Different between B2B and B2C ..................................................................................................... 21
Figure 20: PESTLE Analysis ............................................................................................................................... 23
Figure 21: Micro Environment of Marketing ................................................................................................... 24
Table of Contents
I. Introduction ............................................................................................................................................... 1
II. Methodology ............................................................................................................................................. 1
III. Definitions of Marketing ........................................................................................................................ 2
IV. Basic concepts about Marketing ........................................................................................................... 2
1. Production Concept ............................................................................................................................... 3
2. Product Concept .................................................................................................................................... 3
3. Selling Concept ...................................................................................................................................... 3
4. Marketing Concept ................................................................................................................................ 3
5. Societal Concept .................................................................................................................................... 3
V. The keys roles and responsibilities of marketing function ........................................................................ 4
Step 1: Understand the marketplace and customer needs and wants ......................................................... 4
Step 2: Design a customer-driven marketing strategy .................................................................................. 9
Step 3: Construct an integrated marketing program that delivers superior value ....................................... 9
Step 4: Build profitable relationships and create customer delight ........................................................... 13
Step 5: Capture value from customers to create profits and customer equity .......................................... 14
VI. The interrelationship between marketing function and other functional units of a business ........... 15
1. Marketing Functions ............................................................................................................................ 15
2. The interrelationship between marketing function and other functional units of an organization ... 17
3. Marketing in B2B and B2C ................................................................................................................... 20
4. Customer Behaviour ............................................................................................................................ 21
5. Market Segmentation .......................................................................................................................... 21
VII. How the external environment influences and impacts upon marketing activity .............................. 22
1. Macro Environment ............................................................................................................................. 22
2. Micro Environment .............................................................................................................................. 24
3. SWOT analyse ...................................................................................................................................... 26
VIII. Conclusion............................................................................................................................................ 27
IX. Recommendation ................................................................................................................................ 27
References ....................................................................................................................................................... 28
I. Introduction
Recently, the Covid pandemic is spreading at a very fast pace. Especially for the tourism industry, it is
greatly affected. Restaurants and hotels suffered heavy losses. Diamond Hotel is also in a recession and
facing many difficulties. The hotel is considering and cutting down the costs, and most importantly the
human resources of the marketing department. As the Head of the Marketing Department, to prevent that
from happening, below is a report that informs and clarifies the important role of the Marketing department
and its relationship with other departments.

Figure 1: Diamond Hotel

II. Methodology
To collect data about Diamond Hotel, researchers used methods to collect data information from
media, the Internet, social network, etc. In addition, researchers like to collect some data based on reports
and books tables to get more information from Diamond Hotel.

pg. 1
III. Definitions of Marketing
Before understanding the importance of marketing, must understand what is marketing? According to
the American Marketing Association (AMA) definition of Marketing, Marketing is the process of planning and
implementing conception, pricing, promotion, and distribution ideas, goods, and services to create
exchanges and meet goals individuals and organizations (AMA, 2017).

Figure 2: Definition of Marketing

IV. Basic concepts about Marketing

"Make customers happy" is the responsibility and mission that the Marketing department needs to do.
In this article, there are 5 different marketing concepts that each will have a specific function as well as a
specific strategy. There are: Production Concept, Product Concept, Selling Concept, Marketing Concept and
Societal Concept.

Figure 3: Basic concepts of Marketing

pg. 2
 1. Production Concept
This concept is the oldest of the concepts in business. It indicates that consumers will favor products
that are available and affordable (inexpensive), the buyers do not focus too much on quality. As a result,
companies or organizations only focus on increasing production rates but not on product features (Kotler,
2000).

2. Product Concept
This is the concept that consumers will tend to choose products that offer a lot of quality, performance
and creativity. This concept is based on the needs of consumers, so companies and organizations focus on
creating quality, high-end products and improving them over time to optimize customer needs. This is also
a concept that increases the competitiveness of companies (Kotler, 2000).

3. Selling Concept
The current market trend is that consumers are strongly attracted through annual promotions. Not
only that, customers also tend to buy products that are aggressively promoted in the market (Kotler, 2000).

4. Marketing Concept
This is a concept focused on meeting the needs and desires of the target market (the buyers, the
consumers). This concept represents a change in the direction of the company to gain a competitive
advantage. Moreover, if this concept is applied effectively, it will make it easier to sell and increase the
company's sales. According to Phillip Kotler, he once said: "The marketing concept rests on four pillars: target
market, customer needs, integrated marketing and profitability" (Kotler, 2000).

5. Societal Concept
Organizations and companies define the needs, wants and interests of the target market. In addition,
providing satisfying desires will be more efficient and effective than competitors. Not only that, this concept
was born to remind companies that they should not focus too much on branding, improving product quality
but forgetting to protect the environment, causing the environment to become degraded and resource
shortage (Kotler, 2000).

pg. 3
V.The keys roles and responsibilities of marketing function
Marketing has 5 steps to develop a product. That is Understand the marketplace and customer needs
and wants, Design a customer-driven marketing strategy, Construct an integrated marketing program that
delivers superior value, Build profitable relationships and create customer delight, Capture value from
customers to create profits and customer equity. These departments must work together, collaborate and
realize strategic goals.

Figure 4: Five steps to develop a product

Step 1: Understand the marketplace and customer needs and wants

One of the important tasks of marketers is to understand the needs and wants of the customers. Want
to retain customers, attract them to buy products or use products of companies and organizations. The first
thing is to really know what customers needs and wants to capture the psychology of their customers and
give them what they need and want.

pg. 4
 First of all, find out the definition of needs and wants.
Definition of wants: Wants are to have a product or service that is not needed, such as new phone,
sport or luxury car, etc.
Definition of needs: needs are a special kind of wants that needs it to exist, such as food, water, etc.

Figure 5: Different between needs and wants

To be clear, look at Maslow's hierarchy of human needs created to understand human needs.

Figure 6: Maslow's hierarchy of human needs

pg. 5
Physiological needs

Figure 7: Physiiological needs

This is the most basic and most important need to live, survive and move forward to the next needs.
These include in air, water, food, etc. When these needs are met, people can function and thrive (Maslow,
1970).

Safety needs

Figure 8: Safety needs

This is the need for protection and safety. This is logical because the physiological needs help people
survive, then they need something to ensure maintenance and help them feel more secure when developing.
Safety needs include health safety, financial safety and safety for life, no injury (Maslow, 1970).

pg. 6
Love and belonging needs

Figure 9: Love and belonging needs

Maslow's love and belonging needs belong to the third level of the system. This is the need for human
emotions. When their basic needs are fully met, they have a need to expand on relationships such as
friendship, love, and family. Thanks to this need, this group of people makes them feel familiar and close,
helping them not to feel lonely and depressed (Maslow, 1970).

Esteem needs

Figure 10: Esteem needs

This is the fourth level in Maslow's hierarchy. At this level, human needs are addressed to the desire
that others value and receive. After everyone has the essential needs to survive, it will have the need to
demand fame and respect from everyone around them. At this level, Maslow has divided into two categories:
esteem for oneself (dignity, achievement, mastery, independence) and the desire for reputation or respect
from others (status, prestige) (Maslow, 1970).

pg. 7
Self-actualization needs

Figure 11: Self-actualization needs

This is the highest human need, it is at the top of Maslow's hierarchy. After satisfying the needs at the
fourth level, people will tend to want to express themselves to be recognized. This need often occurs in
successful people who work to satisfy their passions and seek values that truly belong to them (Maslow,
1970).

Discuss about hotel

Needs:
➢ Physiological needs (foods, water, air).
➢ Safety needs (How safe is the hotel? Is there a security service at night? Is the room safe?).
Wants:
➢ Convenience and satisfaction (a luxury hotel with full convenience).

pg. 8
Step 2: Design a customer-driven marketing strategy
This is the customer selection step, targeting the customer segment, identifying potential customers
as well as the suitable people with the product. Factors to segment customers based on age, gender,
occupation or income of people. Then, the company chooses a value proposition that the company has to
offer its customers to meet their needs and decides which marketing approach is best to use the product to
please customers and the company.

Discuss about hotel

➢ Target customers are all people of all ages, as long as they have identification, are citizens of a
country, and prefer to travel. In addition, suitable for young people who like to travel alone, group or want
to change the atmosphere (do not want to stay home).

Step 3: Construct an integrated marketing program that delivers superior value

The third step, focus on building an integrated marketing program, or marketing mix (4Ps). This is a
combination of four marketing elements, that is: Product, Place, Price and Promote to achieve the strategic
goal of marketing.

Figure 12: Marketing Mix

pg. 9
Product

Figure 13: Product in 4Ps

Products are things that include products or services, tangible or intangible to meet customers' needs.
Marketers must conduct a number of in-depth product lifecycle studies to ensure the right types of products
are in demand (MarketingMix, 2019).

Discuss about Hotel

➢ Diamond Hotel products are mainly intangible and tangible products. Diamond Hotel has provided
intangible products to customers such as friendliness, professionalism, courtesy - this is what makes
customers want to return. In addition, the tangible products that Diamond Hotel offers are delicious and
wonderful breakfast menus.

pg. 10
Price

Figure 14:Price in 4Ps

The price of a product is the amount that a customer must pay to use a company or organization's
service or product. This is a very important component because it determines the profitability and survival
of the company. Marketers will have a survey to look at the value of products before setting prices. There
are three main pricing strategies: (MarketingMix, 2019)
Market penetration pricing
Market skimming pricing
Neutral pricing
Discuss about Hotel
➢ Currently, Diamond Hotel has three types of rooms for customers to use: Superior Double,
Superior Triple, and Deluxe Triple. Prices will depend on the type of room you choose (from 1 million 500
VND to 2 million 500 VND).

pg. 11
 Place

Figure 15: Place in 4Ps

Placement is an important part of the marketing mix definition. Marketers must locate and distribute
their products in places that customers can easily reach, or places that attract customers. There are many
distribution strategies such as: (MarketingMix, 2019)
Intensive distribution
Exclusive distribution
Selective distribution
Franchising

Hotel
➢ Hotel is mostly available in big cities in Vietnam: Hanoi, Ho Chi Minh City, Da Nang, etc. In addition,
Diamond Hotel is also available in countries like Philippines, Singapore, etc.

pg. 12
Promotion

Figure 16: Promotion in 4Ps

This is the place for customers to easily know the brands of companies or organizations. It is an
important part of promoting the brand and selling the product. Promotion have elements like:
(MarketingMix, 2019)
Sales Organization
Public Relations
Advertising
Sales Promotion
Hotel
➢ Hotel always has many promotions for customers when using many hotel services at the same
time, or book hotels through application applications such as Traveloca, Agoda, ect. For example, Diamond
Hotel in Danang is discounted 45% when customers book on Agoda.

Step 4: Build profitable relationships and create customer delight

There are many ways to build a relationship with customers and keep that relationship better. Here
are three common ways to create a good relationship:
Spare Customer's Time
Currently, at the time of 4.0, there is no way in a long line to wait for a service. To solve this problem,
companies offer a solution that is to quickly access one of the websites to contact with companies
(Pietruszewska, 2020).

pg. 13
Stay Positive Throughout The Whole Interaction
Customer service is not a necessary part, but an attitude. Because, it helps customers with a bad mood,
unhappy to become satisfied and pleasant. There are two ways to make customers happy: use positive
language and focus on smile (Pietruszewska, 2020).
Handle Feedback of Customers
This is quite important and necessary for the service industry. Income feedback from customers and
then meet their needs. Fast chatbox messages are also a way to communicate and help collect more
information and personal opinions of customers (Pietruszewska, 2020).

Discuss about Hotel

Currently, most hotels use Facebook to pr for hotels and use websites like Agoda, Booking to make it
easier for customers to book as well as hotels that can answer, support and consult those customer inquiries
in many different countries. Thanks to this service that brings a lot of satisfaction to customers. Not only
that, the professional staff, always smiling when welcoming customers as well as greeting customers. The
hotel always brings comfort for guests to enjoy the good space while staying here.

Step 5: Capture value from customers to create profits and customer equity
Creating Customer Loyalty and Retention: Trust and loyalty of customers is extremely important of a
company or an organization. When they are satisfied with a product or service, they will use it multiple times,
resulting in increased sales.
Building customer equity: Loyal customers are those who bring long-term and sustainable profits to the
company to create high life cycle value (the value that customers contribute to the company throughout
their lifetime).

pg. 14
VI. The interrelationship between marketing function and other functional units
of a business
1. Marketing Functions

Figure 17: Seven functions of Marketing

Distribution
Distribution is the process of deciding how goods are in the customer's hands. Distribution includes
physical movement and storage of goods. Goods are transported by various means such as truck, rail, ship
and air (Claessens, 2019).
Financing
Finance is getting the money needed to pay for running a business and establishing them. Finance and
Marketing are closely related. Without marketing, the company doesn't provide value to its customers and
doesn't sell its own products. As a result, there is no profit so no financing is required (Claessens, 2019).
Marketing Information Management
Business and marketing decisions are based on extensive information about customers, trends and
competitive products. Information gathering, storage and analysis are what marketers do to learn about
their customers, their habits and attitudes. The companies that conduct research into it can succeed in
marketing and selling their products (Claessens, 2019).
pg. 15
Pricing
Price is one of the seven functions of marketing. A price decision indicates the amount to be paid for
goods and services for profit. It may be based on cost, competitor (Claessens, 2019).
Product Management
Developing, improving a product or product mix to meet market needs is the definition of product
management. Developing new products is an important part of product management. Products are a core
means to deliver value to customers. Not only that, marketing research guides product management in the
direction that consumers need and want (Claessens, 2019).
Promotion
Promotion is an effort to inform, convince, or remind customers of a type of product or service of a
business (be it a new product or a product with lots of promotions). It plays an important role in the seven
functions of marketing because it conveys value to customers (Claessens, 2019).
Selling
Selling is creating value and distributing value to customers. Reflect the change in value ownership and
provide customers with the goods and services they desire (Claessens, 2019).

2. Structure of Marketing Department

pg. 16
 The structure of the marketing department: Depending on the needs of the businesses, the marketing
division will be appropriate. This is the most popular form of marketing organization. A modern marketing
structure includes:
About the Content Group: Leader by the Editorial Director - this is the person responsible for building
all of the business's content.
This section includes: Editors for blogs - who offer all the blog ideas, production and content. Video
editor - who is in charge of video editing and in charge of video production. Social Manager - this group is in
charge of brand presence on social media sites like Facebook, Instagram, ect. Community Manager - manage
the individual communities that the business or company owns.
About the Acquisition Group: Leader by the Director of Acquisition - this is the person responsible for
collecting and creating plans for potential customers.
This section includes: Traffic Manager - implements all the strategies and tactics across all
communication channels with no fees and charges. Analytics Manager - This department analyzes the
Marketing metrics and related departments and communicates it to the relevant people. Graphic Designer -
This department is responsible for designing all images related to blogs, image advertisements and media.
About Monetization Teams: Leader by Monetization Managers - responsible for the variables the
client is afforded to pay.
This section includes: Email Marketing Manager - This group specializes in customer feedback, perform
email marketing campaigns for businesses or companies. Optimization Manager - specializing in the
implementation of test campaigns to improve website conversion rates.

3. The interrelationship between marketing function and other functional units of an

organization
In a company with many different departments, such as marketing, finance, human resources,
accounting, and others, all of these departments must work together, collaborate, support, and help each
other to achieve the set goals.
a) Marketing plays a key role in the company’s strategic planning in several ways.
First, marketing presents many of the company's strategic perspectives, outlining a plan that gives the
company many competitive advantages with consumer groups. Second, the marketing department can
identify attractive market opportunities and potential assets of the company to gain a competitive
advantage. Finally, implement the strategy through the department's own marketing channel.

pg. 17
 → In short, customer satisfaction and value are the key factors of marketers. However, marketing is
necessary, is a very important part, plays a leading role but if the marketing department alone will not be
able to create loyalty and value for the market. They need to work with other parts of the company to create
a successful internal value chain to support customers. Through marketing, it is possible to show you the
services and products you do best that make it different from your competitors.
b) Partnering with Other Company Departments - internal value chain
Each business division is seen as a development link in a chain of internal corporate values. Each
division carries out valuable activities - developing, producing, selling, distributing and supporting customers.
The success of a company depends not only on how well a department operates but also in coordination
with other departments.

Figure 18: Structure of Marketing

Interrelationship between Marketing and Sales Department

Marketing supports a lot for Sales. Marketing drives sales through creative advertising, effective
marketing strategy so that customers know more about the brand as well as the products and Sales
Department of direct sales. In addition, Sales Department plays an important role in creating a good
marketing department because sales is a tool to measure the success of a marketing strategy.

pg. 18
Interrelationship between Marketing and Research and Development Department
R&D is the department that researches customers' needs and develops products according to their
needs. Marketing Department sets up a survey, customer feedback, customer information, etc. to R&D to
research and produce a product that suits customers. Finally, the Marketing department must research
carefully to create an appropriate strategy.
For example: A customer who feels insecure and wants to better protect their privacy can send
personal feedback to the hotel. After that, the Marketing department will absorb that opinion and provide
information to the R&D department so that they apply modern security to protect privacy in the most
optimal way such as using fingerprints or using face ID.
Interrelationship between Marketing and Finance Department
This is a department closely related to Marketing because every marketing strategy must have a
budget. The finance department usually controls the income of the business and must carefully examine the
data to avoid the company's budget deficit.
For example: Marketing Department will study the needs as well as habits and preferences of
customers so that they discuss and propose plans to improve the best serve the needs of customers. After
the meeting, if the person in charge feels it is financially viable, the money will be given to the Marketing
team to implement their plan.
The interrelationship between Marketing and Manufacturing Department
In order to sell many products, marketing needs to be closely linked with the production department.
The marketing team should be aware of exactly how much product needs to be done to avoid
overproduction. Marketing has the role of collecting customer reviews so that the marketing team provides
goods that match the needs of customers. In short, the marketing department is almost concerned with all
other parts of the company.
The interrelationship between Marketing and Production
The production department plays the role of providing products and services to the market. The
Marketing Department studies the needs and preferences of the customers. Then, bring them to the
production department so that they can produce the right quality products that meet the needs of
consumers. All corporate functions are interrelated to create a successful inter-organizational marketing
plan.

pg. 19
The interrelationship between Marketing and Purchasing
Marketing is usually the support of Purchasing. Normally, the Marketing department will devise ways
to advertise and bring the hotel products or services closer to customers. Therefore, increasing the number
of customers using the services.
c) Partnering with Others in the Marketing System - external value delivery network
Companies need to look beyond their internal value chains and to their suppliers and distributors.
Finally, the company's efforts to attract customers and create value for themselves. Competition usually
takes place in the entire distribution network, the value generated from competitors rather than individual
competitors.

4. Marketing in B2B and B2C

There are two popular types of marketing: B2B and B2C
B2B is shorthand for business to business. It means business products and services are sold directly to
other businesses (Smallbusiness, 2019). Example of Diamond Hotel: Restaurant (food supplier like
supermarket, market), rooms (blankets, electronics), transport (taxi, grab), services/amenities (gym, pool,
laundry), travel (agencies, government), etc.
The relationship between businesses and other businesses is developed and continuous. However,
sales processes take a lot longer than the relationship between businesses and customers. B2B customers
conduct more research on the right solution for their company. When business buyers see the benefits of
the company, they will look for reviews and dig deeper into your business.
Business buyers use logical and logical thinking to make decisions about whether or not to buy your
clothes.
B2C is shorthand for business to customer. It means businesses sell products and services to
consumers for use (Smallbusiness, 2019). Example about Diamond Hotel: tourist (local, international). B2C's
sales cycle is shorter than B2B.
The goal of marketing directs consumers to their products and maximizes the value of their
transactions by providing more incentives for consumers to buy more products. This relationship is based on
consumer experience throughout the buying process.

pg. 20
 The different between B2B and B2C

Figure 19: Different between B2B and B2C

5. Customer Behaviour
According to Blackwell, Engel, and Mansard, “Consumer behavior is the actions and the decision
processes of people who purchase goods and services for personal consumption”

6. Market Segmentation
Market segmentation is the process of dividing the target market into smaller, identifiable and clear
categories, based on different characteristics. It segments customers into groups that share common
characteristics (Trackmaven, 2014). There are four bases of market segmentation. They are Demographic
segmentation, Psychographic segmentation, Behavioural segmentation, Geographic segmentation.
Demographic segmentation is determined based on age, education, occupation, gender and more.
This is the most commonly used form of segmentation because this is the root of all our habits (Bilardi, 2020).

pg. 21
 Psychological segmentation tells us why customers buy products. It relates to personalities and
characteristics (Bilardi, 2020).
Geographic segmentation categorize customers based on geographical boundaries such as country,
state, city, etc, so on (Bilardi, 2020).
For example: With target customers are all people include local and international tourists. Local
tourists such as Hanoi, Danang, HCM, Vietnamese people, international tourists include Korean/Asian,
Westerners.
Behavioural segmentation means that the consumer market will be divided into homogeneous groups
of characteristics such as: reason of purchase, search benefits, loyalty, quantity and usage rate, and more
(Nhi, 2019).
Demographic – Characteristics Psychological Geographic - Location Behavioral
Gender – All Middle income Local – Ha Noi, HCM, Hai Travel lovers
Age – All Phong Honeymooners
Family, Worker, Friends, International – Canadian, Retirees
Students Singapore, Thailand,
Westerners.

VII. How the external environment influences and impacts upon marketing
activity

1. Macro Environment
The macro environment is the condition to exist in the entire economic process, not in a particular sector
or region. In general, the macro environment includes trends in gross domestic product (GDP), inflation, etc.
It pertains to the general business cycle, not an activity of a single business sector (CHAPPELOW, 2020).

pg. 22
 Figure 20: PESTEL Analysis

a) Political forces
These factors have to do with the way and to the extent that the government intervenes in the economy
or certain industries. It includes government policy, political instability, corruption, foreign trade policy, tax
policy, etc. Not only that, the government can have a profound impact on the education systems,
infrastructure and health regulations of countries.
b) Economic forces
This is a decisive factor in the performance of a given economy. Factors include economic growth,
hunger exchange rate, inflation rate, interest rate, etc. These factors can have direct or indirect long-term
effects on a company, as they affect consumer purchasing power and can alter supply/demand patterns in
the economy. As a result, it affects the prices of products and services.
For example: High economic income => high consumer demand. They will need to travel, shop, eat, wear
beautiful clothes ... that suit their economy. However, once the economy is in a recession like the current
COVID 19 epidemic, the need for travel and food will be limited, leading to the decline of businesses.
c) Social forces
This is the factor that shows the demographic characteristics, standards, customs and values of the
population in which the organization operates. This includes population trends such as population growth
rate, age distribution, income distribution, occupational attitudes, etc. But this factor is especially important
for marketers when it comes to targeting certain customers.

pg. 23
d) Technological force
The technological environment includes factors affecting new technologies, creating new products and
market opportunities. This is a strong factor affecting businesses. It is shown in new production methods,
new techniques, new materials, etc (Getmerit, 2015).
e) Environment force
Environmental factors are placed on top in recent times. They have become important due to the
growing scarcity of raw materials, pollution targets and carbon emissions targets set by the government.
These factors include: weather, climate, etc. Furthermore, growing awareness of the potential impacts of
climate change is influencing the way companies operate and the products they offer. This has resulted in
more companies participating in activities such as corporate social responsibility (CSR) and sustainability.
f) Legal force
While this factor may overlap with a political one, but they include more specific laws such as
discrimination law, antitrust law, employment law, consumer protection law, etc.

2. Micro Environment
The micro environment is the pillar wall to build a corporate empire. It refers to the actors of an
organization's immediate environment that influence the company's operations. Because it directly affects
the regular business activities of a company (Jargons, 2019).
There are 6 factors of Micro environment: The company, Suppliers, Marketing intermediaries,
Customers, Competitors and Publics.

Figure 21: Micro Environment of Marketing

pg. 24
 a) The company
In order to design a marketing campaign, managers need to consider parts of a company such as
finance, manufacturing, purchasing, etc. This is the internal environment of a company (Getmerit, 2015).
For example, marketing campaigns must follow the mission, goals and policies set by the company and
be accepted by the top management. The finance department focused on finding and spending the
company's money for marketing and R&D campaigns to design safe and attractive products to meet
customers' needs.
b) Suppliers
Suppliers play an essential role in providing goods to companies for them to produce products to meet
the needs and desires of consumers. If suppliers have any problems such as slow delivery or price increases
of materials, companies will face difficulties (Getmerit, 2015).
c) Marketing intermediaries
This is a useful tool or partner of the company. Through marketing intermediaries, companies have the
ability to promote and sell distribution products to customers. It includes: (Getmerit, 2015).
Resellers are distribution channels that help the company build an extensive network of products and
find buyers. It includes: wholesalers and retailers (Getmerit, 2015).
Physical distribution firms are like contractual partners that help them distribute their products. It is
responsible for storing and moving products from the warehouse to the seller's points (Getmerit, 2015).
Marketing service agencies is the department that helps the company target customers and promote
products to attract buyers. These include marketing research firms, advertisement firms, media firms and
marketing consulting firms (Getmerit, 2015).
Financial intermediaries help companies manage financial risks in business (Getmerit, 2015).
d) Customers
Consumers are a fundamental part of the company so it makes a profit. Every company's strategy or
approach will be decided based on the consumer. There are five types of consumer factors: (Getmerit, 2015).
Consumer markets: individuals or households who buy products for the purpose of individuals such as
meeting their needs. This transaction is called the B2C market (Getmerit, 2015).
Business markets: other companies plan to buy products for business use, such as producing other
types of products (Getmerit, 2015).
Reseller markets: individuals or groups of people who buy products for resale purposes and benefit
from the cost advantages provided by manufacturing companies (Getmerit, 2015).

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 Government markets: Government agencies that buy services or goods that serve government
purposes (Getmerit, 2015).
International markets: like consumers, manufacturers, agents and governments but from other
countries around the world. Using the benefits of exchange rates, companies earn more from international
trade than domestic ones (Getmerit, 2015).
e) Competitors
In the market, almost companies face the subject of competition. In order to gain big market share
over competitors, companies must be responsible for providing the right value to the product. Not only that,
stable position in the market is a strategy that companies should consider because it plays a role that cannot
change the minds of buyers. To avoid competition, companies must create unique values for products in new
segments, because focusing too much on competition will cause some problems of business losses serious
for companies (Getmerit, 2015).
f) Publics
Publics are a special group because they have the potential to have a negative or positive impact on
companies not by purchasing products but because of the potential impact on organizations. There are
several types of public like financial publics, media publics, government publics, citizen-action public, local
publics, general publics, internal publics. The companies that mostly apply social marketing strategies say
that this is an effective tool for businesses (Getmerit, 2015).

3. SWOT analyse
SWOT analysis is a tool to help businesses, companies develop business strategies whether they are
building a start-up or guiding an existing company (Parsons, 2018).
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
Strengths:
➢ Every year, number of local and international tourists in DaNang has increasing so much.
➢ Torists come to DaNang because it has clean, beautiful and people in DaNang is very cute and friendly.
➢ Prices of product (souvenirs, foods, drink) and service (hotel, taxi, grab) are very cheap and low.
➢ Good wifi and internet connections.
Weaknesses:
➢ Ineffective branding inconsistent service.
➢ High taxes.
➢ English speaking ability of staff needs improvement.

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Opportunities:
➢ Increasing collaborations with other companies or corporations.
➢ Increasing interest in travelling.
➢ Modern technology, technological advantage – easy connection to wifi to do booking online.
Threats:
➢ In Viet Nam, it has many natural disasters: floods, storms, so on. And now, Danang is at the center of
the Covid pandemic.
➢ Quite pollution.
➢ Changes in government policies and laws.

VIII. Conclusion
To sum up, this article analyzes the definition of marketing and helps readers gain more insights into
the basic concepts of marketing, functions and relationships of marketing with other departments in
company. Through this, the marketing department deserves an extremely important role in the company.
So, this is a big problem if the company decides to cut down Marketing Department costs.

IX. Recommendation
Through this report shows that they should not abolish the Marketing department of the company
because of the following reasons. Firstly, the Marketing department has a close relationship with other
departments in the company, with the production department, the financial department, etc. Second,
customers are often attracted to trendy, trending ads. Third, the Marketing department knows how many
customers it is, the needs and wants of customers to best serve customers. Not only that, the Marketing
department can also collect positive and negative feedback from customers. Then help the company change
it, or other customers can look at those feedback to make it easier to choose their own service. For example,
Diamond Hotel is the most chosen hotel because of the roof space, located in Da Nang, with good wifi, cheap
prices and easy online booking, friendly staff, trendy advertising, ... These factors help customers choose this
hotel and not another hotel. Therefore, Marketing Department is very necessary.

pg. 27
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