Professional Documents
Culture Documents
Slides Principles of Marketing - FTU
Slides Principles of Marketing - FTU
MARKETING
1 • Overview of Marketing
7 • Product Policies
8 • Pricing policies
9 • Distribution policies
• Text book:
Principles of Marketing (Kotler & Amstrong, 17th edition)
• Analysis of case studies in lectures
• Lecture slides
• Individual/Group presentations
• Others:
• https://www.brandsvietnam.com/
• https://www.adsoftheworld.com/
GAM7 (Rio Book)
Watch Advertisements, go shopping
GRADING
Definitions of marketing
Functions of marketing
Modern Marketing system
Career path of Marketing
Major terms in marketing
Marketing management philosophies
DEFINITIONS OF MARKETING
Marketing
1985 2013
1960
DEFINITIONS OF MARKETING
2017
sales
Finance R&D
HR factory
Marketing
Supply
IT
chain
Legal Purchasing
Marketing System of CocaCola Vietnam
Agency
Supplier
BTL
Agency
ATL
Analysis Media
Agency
Market
Research
CAREERS IN MARKETING
Chief
Assistant
Brand manager Marketing Pr manager
brand manager
officer
Creative Account
Copy writer Art director
director manager
Account Marketing
MR Analyst Ad manager
executive executive
…….
EVOLUTION OF MARKETING
PHILOSOPHIES
1. Production
??? Concept
2. Product
Concept
Key
5. Societal Marketing Marketing
Concept Concepts
3. Selling
4. Marketing Concept
Concept
THE PRODUCTION CONCEPT
customer
value
Company’s
profit
Selling concept Marketing concept
consumers
Societal
MKT
concept
organization society
MARKETING DEVELOPMENT
Marketing 5.0
Marketing 4.0 • ???
• Digital/society
Marketing 3.0
• value
Marketing
2.0
• Customer’s
need
Marketing
1.0
• product
MARKETING MIX
MARKETING DEVELOPMENT
CORE MARKETING CONCEPTS
NEEDS
TRANSACTIONS WANTS
MARKETING
EXCHANGE DEMANDS
PRODUCTS MARKETS
NEEDS
Information …
ACTIVITIES
MARKET
communication
Products/services
Industry (a Market (a
collection of collection of
sellers) money buyers
information
MARKET
Cross channel
MKT/
Buyer persona Insight Customer journey Trend
multichannel/
Omnichannel
WOM (Words of
mouth)/Buzz Trade Marketing Green Marketing Digital Marketing ….
Marketing
+
MARKETING PLAN
CHAPTER 2:
THE MARKETING ENVIRONMENT
CONTENT
2.1. Definition
Marketing
The
microenvironment
The macroenviroment
2.2.1. THE COMPANY’S MICROENVIRONMENT
THE COMPANY
- Financial capacity
- Technology, R&D
- Personnel
- Company’s culture
- …..
SUPPLIERS
• the individuals and organisations that buy goods and services to resell at a profit.
Resellers
• warehouse, transportation and other firms that help a company to stock and move
Physical goods from thei points of origin to their destination
distributio
n firms
• Banks, credit companies, insurance companies and other businesses that help
Financial finance transactions or insure agianst the risks associated with the buying and
intermedia selling of goods.
ries
CUSTOMERS
Consumer
markets
International Business
markets market
marketing
Government Reseller
markets markets
Institutional
markets
DISCUSSION
Buyer/
Customer
shopper
Consumer Client
COMPETITORS
Citizen
action
Government publics Local
publics publics
Media General
publics publics
Financial Internal
publics marketing publics
2.2.2. THE COMPANY’S MACROENVIRONMENT
DEMOGRAPHIC ENVIRONMENT
Growing
Ethnic Age
Diversity Structures
Education Key
Demographic
Trends
Changing
Family
Geographic Structure
Shifts
ECONOMIC ENVIRONMENT
Economic Changes
Development Key! in Income
Economic!
Concerns for!
Marketers!
Changes
in Consumer
Spending Patterns
THE ECONOMIC ENVIRONMENT
Early !
Adopters! Laggards!
34%! 34%!
13.5%! 16%!
2.5%!
Government
Shortages of intervention in
raw materials natural resource
Issues in management
Natural
environment
THE TECHNOLOGICAL ENVIRONMENT
Fast Pace of High R&D
Change Budgets
Issues in the
Technological
Environment
Time-assumptions Language-
about time vary precision versus Religion-beliefs
across cultures ambiguity
Consumption Business/social
Importance of the
patterns-material customs–bribery,
context-verbal /
possessions / dress, etiquette, status,
non-verbal cues
mealtimes jokes, music.
Relationship with
authority Nationalism
(Hofstede, 1980)
LANGUAGE BLUNDERS
Mitsubishi realized that Pajero was not the right name for a car
in Spanish speaking countries, so they changed it to Montero.
General Motors tried to sell the Chevrolet Nova in Latin
America, only to find that people found "no va" (doesn't go) a
funny name for a car.
Mazda has a van in Japan called the Laputa, but they made the
mistake of selling it under that name in Spanish-speaking
countries.
A car that would need a new name in Spain is the Nissan Moco
(they even have it in the right shade of green)!
RELIGION
- PEST/PESTEL
- SWOT -> TOWS
- 5 FORCES
- ….
9
1
SWOT
Strengths Weaknesses
(Điểm mạnh) (điểm yếu)
Opportunities Threats
(cơ hội) (Thách thức)
9
3
PESTEL
9
4
Chapter 3: MARKETING RESEARCH
THE MARKETING INFORMATION SYSTEM
MARKETING INTELLIGENCE SYSTEM
Promotional Distribution
Product research research research Sales research Market research Price research
It can
- Gives MKT insights into customer motivations,
purchase behavior, and satisfaction
- Help them to assess market potential and market
share or measure the effectiveness of pricing,
product, distribution, and promotion activities
- Provide relevant, up-to-date information on
market
- Indicate trends
- Take the guess work out of decision-making
MARKETING RESEARCH DEFINITION
It can not
- Provide a miracle cure
- Make your decisions for you
RESEARCH PARADIGMS
Quantitative Qualitative
The researcher plays a separate The researcher plays an inseparable role to the
role from that of the subject subject
Step 2: Step 3:
Step 1: Implementing Step 4:
Defining the Developing the research
problem and the research plan- Interpreting
research plan for collecting and and reporting
objectives collecting analyzing the the findings
information data
STEP 1: DEFINING THE PROBLEM AND RESEARCH
OBJECTIVES
Research objectives
STEP 1: DEFINING THE PROBLEM AND RESEARCH
OBJECTIVES
MDP MRP
What information is
What the decision needed and how that
maker (DM) needs to information can be
do) obtained effectively and
efficiently?
Action oriented
Information oriented
(decisions)
To determine consumer
Should a new product
preferences and
be introduced to
purchase intentions for
complement our
the proposed new
current range?
product.
STEP 1: DEFINING THE PROBLEM AND RESEARCH
OBJECTIVES
RESEARCH OBJECTIVES
SECONDARY PRIMARY
DATA DATA
STEP 2: DEVELOPING THE RESEARCH PLAN
FOR COLLECTING INFORMATION
SECONDARY DATA
Information that already exists somewhere,
having been collected for another purpose.
SECONDARY DATA
Advantages Disadvantages
Cost Current
Speed Relevant
Accuracy
Impartial
STEP 2: DEVELOPING THE RESEARCH PLAN FOR
COLLECTING INFORMATION
PRIMARY DATA
Observation
Research
Survey
approaches
Experiment
STEP 2: DEVELOPING THE RESEARCH PLAN FOR
COLLECTING INFORMATION
PRIMARY DATA
Feelings, attitudes,
motives, private behavior
can’t be observed; short-
term; difficult to interpret
SURVEY RESEARCH
A D VA N T A G E S
A D VA N T A G E S Lower cost
High response rates
More respondent control
Rapport established between researcher
and interviewee Less interviewer bias
Ability to gather data on many respondents in a
small time frame
D I S A D VA N T A G E S
Ability to ask socially sensitive questions
Time consuming
Expensive to administer
May lead to biased responses D I S A D VA N T A G E S
Very time consuming
Lower response rates than person administered
surveys
EXPERIMENTAL RESEARCH
Talking w people on
the streets, in their
Individual interviewing homes, offices,
shopping mall
Personal interviewing
Looks at:
§ How people, groups select, buy, use and dispose of
goods, services, ideas or experiences to satisfy their
needs and wants….
CHARACTERISTICS INFLUENCING
CONSUMER BEHAVIOUR
§ Culture
§ Subculture
§ Social class
CULTURAL FACTORS
Household type
Roles and Status
Membership Groups
HOUSEHOLD TYPES
Need recognition
Information search
Evaluation of alternative
Purchase decision
Postpurchase behavior
THE BUYER DECISION PROCESS (OTHER
MODELS)
THE BUYER DECISION PROCESS (OTHER
MODELS)
15
0
CONSUMER’S JOURNEY NOWADAYS…
Earn
Buy Product rewards
See Research
Marketing Product
Receive
Discuss
recommendation
online
Visit Website
Early !
Adopters! Laggards!
34%! 34%!
13.5%! 16%!
2.5%!
a n i s a ti o n s
g to Or g
Marketin
BUSINESS AND CONSUMER MARKETING
Common to both:
The marketing concept – market driven:
§ Customer comes first
§ Know customers and competitors
§ Integrated approach
BUSINESS MARKET VS CONSUMER MARKET
WHERE THEY DIFFER
• Fewer buyers
Market structure and • Larger buyers
demand • Geographic concentration of users
the decision process • Buyer and seller are often much more dependent on each other
• Direct purchasing
Other characteristics • Reciprocity
• Leasing
BUSINESS CUSTOMER CATEGORIES
Commercial enterprises
Governmental organisations
Institutions
COMMERCIAL ENTERPRISES
Manufacturers / Processors
§ Factories
§ Original equipment manufacturers (OEMs)
Other Marketing Providers
§ Dealers / distributors / resellers
Service Providers
§ Most businesses
§ Transport
§ etc
GOVERNMENT
Major equipment
Accessories
Fabricated & component parts
Process materials
Raw materials
Maintenance, repairs, operating
supplies
Business services
CLASSIFYING GOODS FOR B2B
Entering goods
§ Raw material / manufactured parts that become part of
finished product
Foundation goods
§ Goods used to produce end product such as plant &
machinery; facilities; office equipment.
Facilitating goods
§ Goods and services that support operations, includes
office supplies, maintenance /repairs; services.
BUSINESS BUYER BEHAVIOR
Major Types of Buying Situations
Straight rebuy is a routine purchase decision such as reorder without any
modification
Eg. Electricity, water, gas, office supplies, gum, cigarettes, bulk chemicals
Modified rebuy is a purchase decision that requires some research where
the buyer wants to modify the product specification, price, terms, or
suppliers
Eg. New cars, consulting services, electrical components, personal
computers
New task is a purchase decision that requires thorough research such as a
new product
Eg. Custom-built offices, complets buildings, bridges, installations
(machinery, computer systems), weapon system…
PARTICIPANTS IN THE BUSINESS BUYING
PROCESS
Buying center is all of the individuals and units that
participate in the business decision-making process.
Members:
Deciders - make the buying decision
Influencers - provide info, eg Quality control; R&D
Secondary Roles
Users - those who use the product
Gatekeepers - control the flow of info to other members
Buyers - authorised to select vendor, do transaction.
BUYING CENTRE
COMPOSITION AND NUMBER
Depends on roles:
§ Area of responsibility
§ Source of relevant information
THE MAIN INFLUENCES ON BUSINESS BUYERS
Online purchasing
Market
Segment
Segmentation
Provides Increase
Focus profit
Greater efficiency,
Identify and Compare
less waste, improved
best marketing
marketing
opportunities.
performance.
Reduces vulnerability
Concentrate company
by “matching”
resources on most
resources to segment
profitable segments.
needs
Segmenting consumers markets
Geographic Demographic
Psychographic Behavioral
176
SEGMENTING INDUSTRY MARKETS
Customer
Purchasing
Usage rate Loyalty status operating
approaches
characteristics
Situational Personal
factors characteristics
SEGMENTING INDUSTRY MARKETS
INDUSTRY / ECONOMIC ACTIVITY
Differentiable Actionable
2. SELECTING TARGET MARKET SEGMENTS
Market A target
Targeting market
The process of consists of a set of
evaluating each market buyers sharing common
segment’s attractiveness needs or characteristics
and selecting one or that the company
more segments to enter decides to serve.
SELECTING TARGET MARKET SEGMENTS
Undifferentiated marketing
• ignore segmental differences;
Differentiated marketing
• develop specialized marketing activities for different segments;
Micromarketing
• Tailoring products and marketing programs to the needs and wants of
specific individuals and local customer segments; it includes local marketing
(cities, neighborhood, specific store) and individual marketing.
MARKET COVERAGE STRATEGIES
Company
Marketing Market
Mix
A. Undifferentiated Marketing
B. Differentiated Marketing
Company Segment 1
Marketing Segment 2
Mix
Segment 3
C. Concentrated Marketing
CUSTOMER PERSONA
INSIGHTS
reality relevant
resonate reaction
3. MARKET POSITIONING
Products
Product attribute
Branding
Packaging
Labeling
Quality
Features
Style &
design
Product attributes
BRANDING
21
2
WHAT IS A BRAND?
21
3
WHAT IS A BRAND?
Is your behaviours
Behaviours are aligned to yours core values – It’s not
what you say, it’s what you do.
21
4
BRAND ARCHITECTURE
21
5
BRAND ARCHITECTURE
21
6
BRAND HEALTH CHECK/DIAGNOSIS/TRACK
21
7
PACKAGING
VIEW
§ V : Visibility
§ I : Informative
§ W: Workability
LABELING
9 - 226
USES OF PLC
Considerations
Major pricing Additional Pricing
affecting price
strategy strategies
decision
• Customer value • Customer value • New product
• Cost based pricing pricing
• Competition • Cost plus pricing • Product Mix
• Demand • Breakeven pricing Pricing
• Competition based • Price adjustments
pricing
• Price elasticity of
demand
WHAT IS A PRICE?
Sales/Revenue Profit
TR = P x Q π = TR – TC
Market share
MARKET SHARE
Customer
Cost
value
Competition Demand
2. MAJOR PRICING STRATEGY
Fixed Costs
___________________
Breakeven Point =
Price - Variable Costs
2
4
Fixed cost = $300,000
Variable cost = $10
Price = $20
MAJOR PRICING STRATEGIES
Price
adjustments
3.1. NEW PRODUCT PRICING STRATEGIES
Market skimming
pricing
Market
penetration
pricing
SKIMMING VS. PENETRATION PRICING
Penetration:
Setting a low price for a new Production & distribution costs
product in order to attract a large must fall as sales volume
number of buyers and a increases
large market share
Segmented pricing
Psychological pricing
Promotional pricing
Geographic pricing
International pricing
DISCOUNT AND ALLOWANCE PRICING
Location pricing –
the product sold in different geographic areas is priced
differently even though the cost is the same.
Examples???
PROMOTIONAL PRICING
when prices are temporarily priced below list
price or cost to increase demand
Loss leaders
Special event pricing
Cash rebates
Low-interest financing
Longer warrantees
Free maintenance
PSYCHOLOGICAL PRICING
What is distribution
Distribution channels
Intermediaries in
distribution channels
Distribution strategies
WHAT IS DISTRIBUTION
Department stores
• Wide variety of product lines: clothing + home furnishing + household goods
Convenience stores
• A relatively small store located near residential areas, Limited line of high-turnover
convenient goods
Supermarkets
• A relative large operation designed to serve the consumer’s total needs for grocery and
household products
Discount store
• Carries standard merchandise sold at lower prices with lower margins and higher volumes
Distribution channels of FMCG
On Premise Off
Premise
Modern Trade:
General Trade: vendor, kios,
local market, roadside vendors CVS, supermarket, hypermarket,
shopping mall, hospital, hotels. E
food stalls, canteen…
commerce
Horeca (hotel/
hospital
+restaurant
+catering/canteen,
…)
DISTRIBUTION STRATEGIES
Intensive Selective
Channel
Distribution
Strategies
Exclusive
DISTRIBUTION STRATEGIES
2. Promo(on Mix
Strategies
3. Integrated Marketing
Communications
1. THE PROMOTION MIX
Public rela*ons involves building good rela(ons
with the company’s various publics by
obtaining favorable publicity, building up a
good corporate image, and handling or
heading off unfavorable rumors, stories, and
events
Public rela*ons is a very believable form of
promo(on that includes news stories,
features, sponsorships, and events
1.2. PUBLIC RELATIONS
FUNCTION OF PR DEPARTMENT
News
Speeches
Special events
Publicity: annual reports, brochures, articles, company
newsletters, magazines, DVDs, online video
Corporate identify materials: logos, brochures, signs, bz
cards, uniforms
Public service activities
1.3. PERSONAL SELLING
Personal selling is the personal presenta(on by
the firm’s sales force for the purpose of
making sales and building customer
rela(onships
1.3. PERSONAL SELLING
3. Design a message
6. Collecting feedback
3.2. STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATION
Awareness
Informative Advertising, Public
Provide
Relations, Point-of-Purchase,
Information
Window Displays
Knowledge
Liking
Change Competitive Advertising,
Attitudes Personal Selling, Sales
and Feelings Promotions
Preference
Conviction
Reminder
Stimulate
Advertising, Personal Selling,
Desires
Frequent-Shopper Programs
Purchase
3.2. STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATION
3. Design a message
Message content: searches for appeals, themes, or
ideas that will tie in to the brand positioning and
help establish points-of-parity or points-of-
difference.
Rational appeals
Emotional appeals
Rational appeals
3.2. STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATION
Message Structure
The communicator must put the messages together
in a logical way. Three message-structure issues
need to be considered.
- Whether to draw a conclusion or leave it to the
audience.
- Whether to present a one-sided or two-sided
argument.
- Whether to present the strongest arguments first
or last.
3.2. STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATION
3. Design a message
Message Format
The communicator needs a strong format for the
m e s s a g e , w h i c h i s b a s e d o n d i f fe r e n t
communication tools. For example, the
communicator must consider words, sounds and
voices when the message is to be carried over the
radio.
3.2. STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATION
4. Choosing communication channels and
media
Personal Nonpersonal
communication communication
channels channels
• Face to face • Major media
• phone • Atmospheres
• Mail/email • events
• Internet chat
• -> Word of mouth
• -> Buzz marketing
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATION