HANOI UNIVERSITY OF SIENCE AND TECHNOLOGY

SCHOOL OF MANAGEMENT & ECONOMICS

PRINCIPLES OF MARKETING

PhD. Nguyen Thi Mai Anh

UNIT 1

INTRODUCTION TO MARKETING

1.1 Marketing & Maketing management

1.2 Core Marketing concepts
1.3 Marketing management orientations
1.4 Marketing mix

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 UNIT 2

MARKETING INFORMATION SYSTEM

& MARKET RESEARCH
2.1 Marketing Information System
2.2 Market research

UNIT 3

MARKETING ENVIRONMENT

3.1 Macro Environment

3.2 Industry Environment
3.3 Internal Environment

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 UNIT 4

CUSTOMER ANALYSIS

4.1 Consumer buying bahaviour

4.2 Business buying behaviour

4.1 CONSUMER BUYING BAHAVIOUR

▪ Consumer decision making

▪ Factors affecting consumer buying behavior

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 IMPORTANCE OF
UNDERSTANDING CONSUMER BEHAVIOR
▪ Consumers’ preferences are
constantly changing.
▪ Marketing managers must
understand these to create a
proper marketing mix for a
well-defined market.
▪ How consumers make
purchase decisions
▪ Factors that influence
purchase decisions

CONSUMER BUYING BEHAVIOUR

CONSUMER BUYING CONSUMER

BEHAVIOR MARKET

Buying behavior of final All the individuals and

consumers—individuals households that
and households that buy buy or acquire goods and
goods and services for services for
personal consumption personal consumption.
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CONSUMER DECISION-MAKING PROCESS

NEED RECOGNITION
▪ Needs are in each human being. Need will be satisfied
when motivation becomes strong enough to drive
behavior.
▪ Needs can be triggered by
▪ Internal stimuli: hunger, thirst - due to psychological
needs
▪ External stimuli
▪ Advertisements
▪ Friends of friends
▪ Marketers should know how to stimulate motivation
to satisfy customer needs

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INFORMATION SEARCH
Heightened attention ▪ Low attention: spend little time, an effort to
search information, comparing options
▪ High attention: Spend a lot of time, effort to
gather information, evaluate options
High attention ▪ Consumers lack information of satisfied
happened options
▪ Expensive products
▪ Socially important to consumers
▪ Expect to bring a lot of benefits to
consumers
Source of information Personal; commercial; public; experiential; word-
of-mouth

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INFORMATION SEARCH
Criteria High attention Low attention

Time consumed A lot Little

Searching Proactive Passive or no
information
Reaction to Assess carefully Ignore, no
information assessment
Criteria used in Clear, detailed General, faint, weak
evaluation
Loyalty to the brand Strong Weak

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SOURCE OF INFORMATION
Personal ▪ Individual is known by the consumer
▪ Examples: Friends and acquaintances

Commercial ▪ Information provided by companies

▪ Examples: advertising, leaflet

Public ▪ Material from mass media and rating

organization
▪ Examples: Magazines and television
Experiential ▪ Feedback from direct trial of product or
service
▪ Example: test drive at dealer
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EVALUATION ALTERNATIVES

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EXPECTANCY-VALUE MODEL

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PURCHASE DECISION
▪ Consumer must decide:
▪ Whether to buy
▪ When to buy
▪ What to buy (product type and
brand)
▪ Where to buy (type of retailer,
specific retailer, online or in-store)
▪ How to pay
▪ Two factors can come between the
purchase intention and the
purchase decision.
▪ Attitudes of others
▪ unexpected situational factors
▪ Type of purchase
▪ Planned purchase:
Complex and expensive
items
▪ Partially planned purchase:
know the product category
but wait until they get to
the store or go online to
choose a specific style or
brand
▪ Impulse purchase: buy on
impulse; triggered by a
nudge.

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INTERVENING FACTORS

▪ Two factors between

the purchase
intention & the
purchase decision.
▪ Attitudes of others
▪ unexpected
situational factors

POSTPURCHASE BEHAVIOR
▪ Postpurchase Satisfaction
▪ Cognitive Dissonance
▪ Stable Satisfaction/Dissatisfaction Status
▪ Postpurchase Actions
▪ Talk to others
▪ Rebuy or avoid
▪ Complaints, going to the lawyer
▪ Postpurchase Uses and Disposals
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HOW CUSTOMERS USE & DISPOSE PRODUCTS

TYPES OF CONSUMER BUYING DECISIONS

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 FACTORS AFFECTING CONSUMER BUYING
DECISION

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1. CULTURE FACTORS
CULTURE & VALUES SUB-CULTURE SOCIAL CLASS

Culture is the set of A subculture is a A social class is a group of

values, norms, homogeneous people who are considered
attitudes, and other group of people who nearly equal in status or
meaningful symbols share elements of the community esteem, who
that shape human overall culture as well regularly socialize among
behavior and the as cultural elements themselves both
artifacts, or products unique to their own formally and informally, &
group who share behavioral
norms

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CULTURE
▪ Culture is pervasive
▪ What people eat, how they dress, what they think & feel, &
what language they speak are all dimensions of culture
▪ Culture is functional
▪ Human interaction creates values and prescribes
acceptable behavior. By establishing common expectations,
culture gives order to society.
▪ Culture is learned
▪ People learn from family and friends what is acceptable.
Children learn the values that will govern their behavior
from parents, teachers, and peers.
▪ Culture is dynamic
▪ It adapts to changing needs and an evolving environment

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SUBCULTURE
▪ A culture can be divided into subcultures on the
basis of
▪ Demographic characteristics
▪ Geographic regions, national and ethnic
background
▪ Political beliefs
▪ Religious beliefs
▪ People’s attitudes, values, and purchase decisions
are even more similar than they are within the
broader culture.
▪ It may result in considerable variation within a
culture in what, how, when, and where people
buy goods and services

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 HOCHIMINH >< HANOI
▪ Tiểu văn hóa ví dụ: văn hóa Bắc, Trung Nam
▪ Hanoian
▪ Cautious, risk-averse, and slower to accept new things.
▪ Careful, and strict, especially with first-time experiences.
▪ Rarely buy things that others don’t buy,
▪ Highly loyal, Like bargains, prefer meaningful advertisements,
planned buyers
▪ Southern buyers
▪ More risk-tolerant, make decisions faster, quicker to accept
new things
▪ Do not like bargains, enjoy humorous advertisements, and like
impulsive purchases.

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SOCIAL CLASS
Classes Details
Upper Capitalist 1% - People whose investment decisions shape the national economy; income
Classes class mostly from assets, earned or inherited; They are social elite & have well-
established family background
Upper 14% - Upper-level managers, professionals, owners of medium-sized businesses;
middle well-to-do, stay-at-home homemakers who decline occupational work by choice;
class college educated; family income well above national average

Middle Middle 35%- Middle-level white-collar, top-level blue-collar; education past high school
class class typical; income somewhat above the national average; loss of manufacturing jobs
has reduced the population of this class
Working 32% - Middle-level blue-collar, lower-level white-collar; income below national
class average; largely working in skilled or semi-skilled service jobs

Lower Working 11%-12%- Low-paid service workers and operatives; some high school education;
Classes poor below mainstream in living standard; crime and hunger are daily threats

Underclass 8%-9%- People who are not regularly employed and who depend primarily on the
welfare system for sustenance; little schooling; living standard below poverty line
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2. SOCIAL FACTORS

▪ Reference group
▪ Opinion leaders
▪ Family
▪ Roles and status

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REFERENCE GROUPS
A reference
group consists
of all the formal
and informal
groups that
influence the
buying behavior
of an individual.

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 Aspirational group: Ca sĩ Hồ Ngọc Hà

Aspirational group: Ca sĩ Tóc Tiên

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OPINION LEADERS
▪ Opinion leader- A person within a
reference group who, because of
special skills, knowledge,
personality, or other characteristics,
exerts social influence on others
▪ They are often the most influential,
informed, plugged-in, and vocal
members of society
▪ Social media are becoming a key
way that people communicate their
opinions

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FAMILY
▪ The family strongly influences
values, attitudes, self-concept,
and buying behavior
▪ Husband–wife involvement
varies widely by product
category and by stage in the
buying process.
▪ Children also have a strong
influence on family buying
decisions.

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ROLES AND STATUS
▪ A person belongs to many groups—family, clubs,
organizations, online communities
▪ A role consists of the activities people are
expected to perform according to the people
around
them.
▪ Each role carries a status reflecting the general
esteem is given to it by society
▪ People usually choose products appropriate to
their roles and status
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3. INDIVIDUAL FACTORS

▪ Gender
▪ Age and life cycle stage
▪ Occupation
▪ Personality, Self-Concept, and Lifestyle

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GENDER
▪ Physiological differences between men & women result in many different needs (health
& beauty products).
▪ Furniture and home accessories:
▪ Women are the sole decision-makers 53 percent of the time; men and women are joint
decision-makers 27 percent of the time.
▪ Small appliances:
▪ Women are sole decision-makers 51 percent of the time; men and women are joint
decision-makers 31 percent of the time.
▪ Smartphones:
▪ For most electronics, men make the majority of decisions. However, for smartphones,
women are sole decision-makers 38 percent of the time, and men are sole decision-
makers 35 percent of the time.
▪ Power tools:
▪ Men are sole decision-makers 68 percent of the time.
▪ Auto tires and batteries:
▪ Men are sole decision-makers 61 percent of the time

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AGE AND LIFE CYCLE STAGE

▪ People change the goods &
services they buy over
their lifetime (age)
▪ Buying is shaped by the
stage of the family life-
cycle (young singles,
married couples with
children, unmarried
couples, childless
couples…)

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OCCUPATION

▪ A person’s occupation affects the goods &

services bought
▪ Blue-collar workers tend to buy more casual
work clothes; executives buy more business
suits

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LIFE STYLE
▪ Life-style: A person’s pattern of living as expressed in
his or her activities, interests, & opinions.
▪ Lifestyle is how consumers spend their time or money.
It includes a wide variety of things, from what
activities a consumer is involved in to how they spend
their time socially, among others
▪ It involves consumers’ dimensions
▪ activities (work, hobbies, shopping, sports, social events)
▪ interests (food, fashion, family, recreation)
▪ Opinions (about themselves, social issues, business,
products)

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PERSONALITY
▪ Personality - refers to the unique
psychological characteristics that distinguish a
person or group.
▪ Personality is described in terms of traits such
as self-confidence, dominance, sociability,
autonomy, defensiveness, adaptability, and
aggressiveness

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SELF-CONCEPT
▪ Self-concept, or self-perception, is
how consumers perceive
themselves.
▪ Self-concept combines
▪ ideal self-image: the way an
individual would like to be
perceived
▪ Actual (real) self-image: the way
an individual actually perceives
himself or herself
▪ Other self-concepts: How she/he
thinks others see her/him
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4. PSYCHOLOGICAL FACTORS

▪ Perception
▪ Motivation
▪ Learning

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PERCEPTION
▪ Perception - The process by which people select, organize, and
interpret information to form a meaningful picture of the world
▪ Perception influenced by
▪ Selective attention: Ability to notice & pay attention to specific
environmental stimuli, but not others (Consumers screen out
information)
▪ Selective distortion: People interpret information that supports
(confirm) their beliefs
▪ Selective retention: People cannot retain all of the information they
process. They are likely to retain points to support attitudes
▪ Marketers must recognize the importance of cues, or signals, in
consumers’ perception of products.

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MOTIVATION

▪ A motive (or drive) is a need that is

sufficiently pressing to direct the person to
seek satisfaction
• A person has many needs at any given time.
• A need becomes a motive when it is aroused to
a sufficient level of intensity

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HIERARCHY MASLOW NEEDS

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LEARNING

▪ Learning describes changes in an individual’s

behavior arising from experience
▪ Learning occurs through experiences, the
learned experience will affect the buying
behavior

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BELIEF & ATTITUDE
▪ Belief
▪ A descriptive thought that a person holds about something
▪ It is based on real knowledge, opinion, or faith and may or may
not carry an emotional charge
▪ They are difficult to change
▪ Attitude
▪ A person’s consistently favorable or unfavorable evaluations,
feelings, and tendencies toward an object or idea
▪ Attitudes put people into a frame of mind of liking or disliking
things, of moving toward or away from them.
▪ Marketers should pay close attention to consumer attitudes
and beliefs to ensure that they have an accurate view of the
product

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4.2 BUSINESS BUYING BAHAVIOUR

▪ Business Decision-making process

▪ Factors affecting business buying behaviour

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 BUSINESS BUYING BEHAVIOR

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CHARACTERISTICS OF BUSINESS MARKETS

● Fewer, larger buyers ● Derived demand

● Close supplier-customer ● Inelastic demand
relationships ● Fluctuating demand
● Professional purchasing ● Geographically concentrated
● Many buying influences buyers
● Multiple sales calls ● Direct purchasing

Marketing
© Nguyễn Tiến Dũng 50
Management

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 BUSINESS BUYING PROCESS

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BUYING SITUATIONS
Straight rebuy Modified rebuy New-task buy

Experiences Many Some No

Supplier selection Current suppliers Consider new suppliers, Bidding

(usually) competitive offerings, limited
bidding
Products Stationery, Portable and heavy Specialized materials, parts
Frequently-used equipment and equipment
materials and parts Business services Construction works
Business services

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PARTICIPANTS IN BUSINESS BUYING PROCESS

User Gatekeeper

Influencer Decider

Buying
Initiator Approver
Decisions

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BUY CLASSES AND BUY PHASES

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