INTERNATIONAL SCHOOL OF MANAGEMENT & ECONOMICS

NATIONAL ECONMICS UNIVERSITY

PRINCIPLES 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

1
 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

2
 MARKETING ENVIRONMENT

SWOT
International Firm
environment
Industry Environment

Macro Environment

MARKETING ENVIRONMENT
EXTERNAL ENVIRONMENT

OT
Macro Environment (Political, Economic,
Social & Cultural, Technological, natural
forces)
Industry Environment (Porter 5 forces)

INTERNAL ENVIRONMENT

Internal factors that affect the

organizational marketing activities
SW

3
MARKETING ENVIRONMENT
MARKETING MACRO ENVIRONMENT
ENVIRONMENT
The larger societal forces that affect the
microenvironment—demographic,
economic, natural, technological, political,
The actors and forces
and cultural forces
outside marketing that
affect marketing MICRO ENVIRONMENT
management’s ability to
The actors close to the company that affect
build and maintain its ability to serve its customers— the
successful relationships company, suppliers, marketing
with target customers intermediaries, customer markets,
competitors, and publics.

MACRO ENVIRONMENT
PESTN

▪ Political and legal

▪ Economics
▪ Social and Demographic
▪ Technological
▪ Nature

4
MACRO ENVRIONMENT

MACRO ▪ This environment is not

ENVIRONMENT controllable by the firm, it is too
huge & too unpredictable to
The larger societal control
forces that affect the
microenvironment— ▪ The success of the company will
demographic, depend on the company’s ability
economic, natural, to adapt & react to the changes
technological, in the macro environment
political, and cultural ▪ Company has to closely monitor
forces the various elements of macro
environment.

POLITICAL & LEGAL - P

POLITICAL LEGAL
Includes government regulation & legal issue and
Account for all the political both formal & informal rules under which
activities that go on within a business has to operate its work
country ● Tax & labor policy of government
▪ Parties ● Government’s economic policy
▪ Government ● Involvement of government in different
▪ Relationship with other trading agreement
countries ● National, regional & worldwide

TRENDS OF LEGISLATION
 Put more attention to protect natural environment
 Put more attention to protect consumer rights/ benefits
 Protect transparent/ healthy competition
 More international integration

10

5
POLITICAL & LEGAL FACTORS

▪ Political & legal factors are the most important of

all external agents.
▪ Business has to be more careful than other factors.
▪ Before thinking of any business, an organization
always observes the political & legal situation of a
nation.
▪ The unstable government or political tensions will
act as a barrier to implementing the marketing
strategies

ECONOMIC - E
ECONOMIC ▪ Close relationship between economic
situation & performance of a business
FACTOR (inputs, selling products)
▪ Major economic variables
Consists of factors ▪ Income: GDP, GDP/capita, GPD growth rate
that affect ▪ Cost of living, inflation (gas, electricity, oil)
consumer ▪ Interest rate
purchasing power ▪ Savings and borrowing patterns
and spending ▪ Economic cycle/economic revolution
patterns ▪ Balance trade = Export value – Import value
▪ Exchange rate
▪ Các xu thế của môi trường kinh tế

6
 GDP VIET NAM

Year 2013 2014 2015 2016 2017 2018 2019 2020

GDP growth 5.8 5.98 2.80 5.03 7.89 7.08 7.02 2.91
rate (%/year)

GDP/capita 1.900 2.052 2.109 2.215 2.389 2.564 2.769 2.750

(USD/person)

13

GDP/CAPITA - VIETNAM 2014

7
ENGEL’S LAW
▪ As a family income increases
▪ The percentage of income spent on food decreases
▪ The percentage of income spent on living
comfortability (house rent, gas, electricity, phone,
TV unchange
▪ The percentage of income spent on others
(clothes, transportation, education,
entertainement, sport…) and saving increase

15

ECONOMIC CYCLE

▪ Prosperous stage: high demand for luxuries,

customers require more supporting services
▪ Recession (tagnant) stage: demand for luxuries
will be declined sharply, customers only
require core product
▪ Recovery stage: Demand for materials,
equipment will be increased rather than
consuming products
16

8
SOCIAL FACTORS - S
▪ Social factors are related with
society. How the society behaves &
thinks about any thing
▪ Business cannot exist without
society because it is a part of it
▪ Social factor includes
▪ Culture: belief, religion, customs,
dominant values in a community
▪ Demographics

17

CULTURAL FACTOR
CULTURAL ▪ The Persistence of Cultural
ENVIRONMENT
Values
Institutions and ▪ Core beliefs & values – passed on
other forces that from parents to children
affect society’s
basic values,
▪ Secondary beliefs & values – are
perceptions, more open to change
preferences, and
behaviors
▪ Shifts in Secondary Cultural
Values
18

9
SHIFTS IN SECONDARY CULTURAL VALUES
▪ People’s Views of Themselves
▪ People vary in their emphasis on serving themselves versus serving
others
▪ People’s Views of Others
▪ People’s attitudes toward and interactions with others
▪ People’s Views of Organizations
▪ Their attitudes toward corporations, government agencies, trade
unions, universities, and other organizations
▪ People’s Views of Society
▪ Patriots, reformers, malcontents
▪ People’s Views of Nature
▪ Attitude to the natural world

19

DEMOGRAPHIC ENVIRONMENT
DEMOGRAPHY ▪ Key variables
▪ Population (size, growth)
The study of ▪ Age structure
human ▪ Population density
populations in ▪ Population movement
terms of size, ▪ Gender structure
density, location, ▪ Average life Expectancy
age, gender, race, ▪ Urbanization
occupation, and ▪ Migration
other statistics.
▪ …

20

10
CHANGES IN POPULATION
▪ The Changing Age Structure of the Population
▪ Baby boomers - The 78 million people born during the
years following World War II and lasting until 1964.
▪ Generation X - The 49 million people born between 1965
and 1976 in the “birth dearth” following the baby boom.
▪ Millennials (or generation Y) The 83 million children of
the baby boomers born between 1977 and 2000
▪ generation Z - People born after 2000 (although many
analysts include people born after 1995) who make up
the kids, tweens, and teens markets.
▪ The Changing household pattern

21

CHANGING IN HOUSEHOLD PATTERN

Traditional Non-traditional household

▪ Singles (VN-10.1% (2019)
household Sweeden (47%); Norway (42%); England (34%);
America (38%); Korea (29% - 36% (2045)
▪ Husband, ▪ Single-parent families
wife & ▪ Divorcees

children Growing rapidly

▪ Distinct needs, buying habits
– Eg smaller furniture, food sets
▪ Singles can spend > family

11
The Trend in Korea of Living Alone

VIET NAM
▪ Population density (305/km2), double comparing to
China
▪ Population (2016 – 94,4 mill. – 1,27% world
population; 2021 – 98,51 mill.)
▪ 3rd in Indochina
▪ 15th in the world
▪ Median of age: Average age (2020): 32,5
▪ Average life expectancy:
▪ Vietnam 75,47 (2020); 79.9 (female); 71.7 (male)
▪ World: 73,2 (both sex) 75,6 (female); 70,8 (male)
▪ Healthy age is 66 – no. 116/182

12
 No Quốc gia Người Tốc độ tăng trưởng
1 Trung quốc 1.439.323.776 +0,41%
2 Ấn độ 1.380.004.385 +1,17
3 Mỹ 331.002.651 +0,81%
World population 2020

4 Indonesia 273.523.615 +0.86%

5 Pakistan 220.892.340 +1,43%
6 Brasil 212.559.417 +0,73%
7 Nigeria 206.139.589 +2,43%
8 Bangladesh 164.689.383 +1,04%
9 Nga 145.934.462 -0,08%
10 Mexico 128.932.753 +1,12%
11 Japan 126.476.461 -0,21%
12 Ethiopia 114.963.588 +2,85%
13 Philipines 109.581.078 +1,57%
14 Egypt 102.334.404 +2,45%
15 Vietnam 97.338.579 +0.93%

16 (congo) 89.561.403 +2,37%

17 Turkey 84.339.067

VIETNAM AGE STRUCTURE

26

13
VIET NAM
▪ An “aging” country (10% of the population> 60
years)
▪ An “aged” country is a country with more than
20% of population older than 60
▪ Vietnam is an aging country since 2011
▪ 2030 – 17% population >60 (19 million people)
▪ 2050 – 25% population >60 (28 million people)

TECHNOLOGICAL ENVIRONMENT - T
TECHNOLOGICAL ▪ The technological environment changes rapidly,
creating new markets and opportunities, threats
ENVIRONMENT ▪ Digital photography - the film business
▪ Marketers must watch the technological
Forces that create environment closely & adapt in order to keep up.
Otherwise, the products will soon be outdated, &
new technologies,
the company will miss new product & market
creating new opportunities
product and ▪ Technological trends
market ▪ Fast improvement of technology
opportunities. ▪ Shorter product life-cycle
▪ Huge investment of the leader enterprises
▪ Fast imitation of the followers

28

14
 NATURAL ENVIRONMENT - N
▪ It refers to the geographical location, the presence
NATURAL
ENVIRONMENT
▪ Understand all of these, maketers will know where
The physical ▪ Trend of natural environment
environment & the
natural resources
that are needed as
inputs by marketers
or that are affected
by marketing
activities
MACRO ENVIRONMENT SUMMARY
P – POLITICAL
- Parties
- Government
O
- Relationship with other
countries
& T – TECHNOLOGICAL
T -
-
Fast technology change
Shorted product life
- Distruptive technologies
- 4.0 industry
of ecology & biodiversity, weather, climate &
predominant seasons and natural resources
to sell what
▪ Exhausted non-renewable resources: coal, crude oil,
mineral resources
▪ Renewable resources: wind, solar energy, forest…
▪ Polutted environment: Air, water, noise, wastes..
▪ Increased government intervention in natural
resource management
▪ Global warming
29
E – ECONOMIC S – SOCIAL
- GDP, GDP/capita - Culture; sub culture
- Economic cycle - Demographic (population;
- Inflation, Exchange rate age distribution, gender…)
- Spending pattern - Aging & aged countries
E – ENVIRONMENTAL L – LEGAL
-
-
Natural resources
Climate
-
-
Policies & Regulation
Trend in legislations:
- Geographical location natural environmental
- Poluted environment protection; Customer right
(noise, water, air…) protection; healthy
competition;
30
15
TREND IN THE WORLD
▪ VUCA ▪ Increasing number of
working woman
▪ 4.0 technologies
▪ Increasing number of
▪ Globalization vegetarian
▪ Aging in many ▪ Increasing number of
countries single; divorcees
▪ The rise of Asia ▪ Falling fertility rates
▪ People become
▪ Environmental concern more on the
concern health
31

VUCA WORLD

▪ V – Volatility – Thay đổi

▪ U – Uncertainty – Bất định
▪ C – Complexity – Phức tạp
▪ A – Ambiguity – Không rõ ràng (mơ hồ)

VUCA WORLD

16
 INDUSTRY ENVIRONMENT

▪ Porter 5 forces

33

3.2 INDUSTRY ENVIRONMENT

Threats of
new entrants

Competitor Rivals
Supliers Customers

Porter Five forces

Substitutes

17
 THREAT OF NEW ENTRANTS – POTENTIAL
ENTRANTS
▪ The threat of new entrants is the risk
a new competitor creates for current
companies within an industry.
▪ Potential entrants are new or
existing organisations that are not
currently competitors, but could
potentially enter the market that
your company operates in.
▪ It depends on the barriers to entry.

35

NUMBER OF POTENTIAL ENTRANTS DEPEND

ON…
▪ Profit margin
▪ Attractive future growth opportunities in the
market
• Competition level
• Entry barrier
• The barriers refer to the existence of obstacles
that can deter new competitors from entering
the industry
36

18
ENTRY BARRIERS DEPEND ON….
▪ Access to suppliers and distribution
channels
▪ Barriers to exit
▪ Brand loyalty
▪ Capital requirement
▪ Cost advantages (economies of scale)
▪ Technologies
▪ Differentiated products
▪ Government regulations (licensing)
▪ Switching cost

37

CUSTOMER POWER

▪ Customer power = The

bargaining power of buyers
▪ Refers to a customer's ability to
reduce prices, improve quality,
or “generally play industry
participants off one another.”

38

19
BUYER POWER DEPEND ON

▪ Number of customers (supliers)

▪ Number of purchased products and value;
frequency of buying
▪ Cost to switch to other supplier
▪ Ability to coordinate of customers and supliers

39

SUPPLIER POWER

POWER OF FATORS INFLUENCE

SUPPLIER SUPPLIER POWER
Ability to
influence price, ▪ Number of suppliers relative to
buyers
as well as the
▪ Dependence of a supplier’s sale
availability of on a particular buyer
resources or ▪ Switching cost (switching costs
inputs of suppliers)
40

20
SUBSTITUTE

A substitute product Threat of substitutes

A product from another The availability of a
industry that offers product that the
similar benefits to the consumer can purchase
instead of the
consumer as the industry's product
product produced by
Bread and noodle
the firms within the
Office meal & phở
industry.
41

RIVAL

▪ Other companies offering a similar product

and service to the same customers at a similar
price
▪ Analyzing competitor
▪ Marketing mix (4Ps)
▪ Level of competition
▪ Level of customer satisfaction
▪ …

42

21
INDUSTRY ANALYSIS - SUMMARY
THREAT OF NEW ENTRANTS POWER OF CUSTOMER/SUPPLIERS

- High Profit margin; growth demand
- Entry barrier
- capital requirements
- Economies of scale
- patent & licensing requirements
- Know-how, technologies
- Scare locations
- Distributor requirements…
SUBSTITUTE
- The ability to reduce prices, improve
quality, offers to be more favour to
customer
- Number of customers
- Number of sellers
- Number of purchased products or
frequency of buying
- Cost swich to other suppiers
- Ability to coordinate among customers
RIVALS

- A product from another industry that - Other companies offering a similar

offers similar benefits and can be used in product to the same customers at a similar
place of a company's products price

43

INTERNAL ENVIRONMENT ANALYSIS

▪ Top management
▪ Management orientation
(Mission, vision, core
values; business
S
phylosophy) &
▪ Human resource W
▪ Production, R&D
▪ Finance, marketing…
44

22
 SWOT

What firm select

Opportunities do Strengths

EXTERNAL Gap INTERNAL

ENVIRONMENT ENVIRONMENT
ANALYSIS ANALYSIS

Threats What firm can Weakenesses

do

45

23