UNIT 5 : MARKETING

What is marketing?
 According to the social definition, marketing is
societal process by which individuals or groups
obtain what they need and want through creating,
offering, exchanging products and services of
value freely with others.
 The American Marketing Association offers
managerial definition:
Marketing (management) is the process of planning
and executing the conception,
pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy
individual and organizational goals.
What is marketed?
Marketing people are involved in marketing 10
types of entities: goods, services, experiences,
events, persons, places, properties, organizations,
information, and ideas.
Marketplace
 The marketplace is physical, such as a store you
shop in;
Market
 Market is condition that permits buyers and sellers
work together.
 Marketspace is digital, as when you shop on the
Internet.
Market research
 Secondary data
 Primary data
Core Marketing Concepts

 Needs, Wants, and Demands

 Market Segmentation
 Brands and Trademarks
 Value and Satisfaction
 Marketing Channels
Needs, Wants, and Demands

 Needs are the basic human requirements. People

need air, food, water, clothing, and shelter to
survive. People also have strong needs for
recreation, education, and entertainment.
 These needs become wants when they are directed
to specific objects that might satisfy the need.
Example
 A consumer in the United States needs food but
may want a hamburger, french fries, and a soft
drink. A person in Mauritius needs food but may
want a mango, rice, lentils, and beans. Wants are
shaped by our society.
Demand
 Demands are wants for specific products backed by
an ability to pay. Many people want a Mercedes;
only a few are willing and able to buy one.
Companies must measure not only how many
people want their product, but also how many
would actually be willing and able to buy it.
 Markets Segmentation

 Who is the target market for a product?

- Industrial product (B2B)
- Consumer product (B2C)
- Public goods (B2G)
4 basic methods for segmenting a
market
 Product –related: comfort, safety, luxury, good
value-for-money, convenience, durability, etc.
 Demographic: age, gender, education, family life
cycle, income, etc.
 Psychographic: attitudes, lifestyle, opinions,
values, self-image, etc.
 Geographical: region, postcode, etc.
Example
 For example, Volvo develops its cars for buyers to
whom safety is a major concern. Volvo, therefore,
positions its car as the safest a customer can buy.
Companies do best when they choose their
target market(s) carefully and prepare tailored
marketing programs.
Brand and Trademark

 Brand: a name, symbol or design (or some

combination) that identify a product
 Trademark: a name or symbol that cannot be used
by another producer
 Brand loyalty passes through three stages:
1. Brand awareness
2. Brand reference
3. Brand insistence
Value and Satisfaction

 Value reflects the sum of the perceived tangible and

intangible benefits and costs to customers. It’s
primarily a combination of quality, service, and price
(“qsp”), called the “customer value triad.”
 Satisfaction reflects a person’s judgments of a
product’s perceived performance in relationship to
expectations. If the performance falls short of
expectations, the customer is dissatisfied and
disappointed. If it matches expectations, the
customer is satisfied. If it exceeds them, the customer
is delighted.
Marketing Channels

 Communication channels deliver and receive messages

from target buyers and include newspapers, magazines,
radio, television, mail, telephone, billboards, posters, fliers,
CDs
 Distribution channels to display, sell, or deliver the
physical products or service(s) to the buyer or user. They
include distributors, wholesalers, retailers, and agents.
 Service channels to carry out transactions with potential
buyers. Service channels include warehouses,
transportation companies, banks, and insurance companies
that facilitate transactions..
Marketing strategy
 Analysis of the wider business environment. More
specifically: the political/legal, economic, social/cultural, and
technological factors operating in the external world. (PEST)
 SWOT/ 5 forces - Poster
 Identification and analysis of target markets for new products.
 Sales goals in term of volume and revenue: pricing strategy
 The marketing budget
 Elements of the marketing mix and timing
Marketing Mix
 Marketing mix is the set of marketing tools
that the firm uses to pursue its marketing objectives
in the target market. It is classified these tools into
four broad groups that he called the four Ps of
marketing: product, price, place, and promotion.
Marketing Mix
Product Price Promotion Place
Product List price Sales Channels
variety Discounts promotion Coverage
Quality Allowances Advertising Assortments
Design Payment Sales force Locations
Features period Public Inventory
Brand name Credit terms relations Transport
Packaging Direct
Sizes marketing
Services
Warranties
Returns
Four Ps and Four Cs

Four Ps Four Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
7 Ps
 Product
 Price
 Place
 Promotion
 Process
 People
 Physical evidence
Total product offer
 Value –for-money: relationship between quality
and price
 Brand name and image
 Packaging
 Convenience of sales channel
 Store surroundings
 Service
 Speed of delivery
 Guarantee
 Terms Vietnamese equivalents Explanations + Examples

Market penetration pricing Chiến lược định giá thâm nhâm thị trường Định giá thấp đê chiếm lĩnh thị trường đáng kể.

market skimming Chíến lược định giá hớt váng Là việc định giá cao trong ngắn hạn khi tung một sản phẩm mới (độc đáo, chưa từng có) vào thị trường nhằm khai thác lợi thế của
người đi đầu. Khi thị trường có thêm nhiều sản phẩm cùng loại, DN phải định giá sản phẩm thấp hơn.

Current - revenue pricing Chiến lượng định giá nhằm tối đa doanh thu trong ngắn hạn. Maximizing current (short-term) sales revenue

Loss-leader pricing Chính sách bán hạ giá trước Khi các doanh nghiệp có hàng hóa đa dạng chào bán một phần trong loạt sản phẩm của họ ở mức giá thấp hơn chi phí, và tin rằng
việc náy sẽ thúc đẩy việc tiêu thụ các sản phẩm có chện lệch lợi nhuận cao hơn.

mark-up/ Chính sách định giá dựa trên tổng chi phí Công thức giản lược: Đơn giá sản phẩm = chi phí trực tiếp sản xuất ra sản phẩm + chi phí gián tiếp phân bổ cho sản phẩm + một
mức lãi suất nhất định.
cost-plus pricing

Cộng thêm một mức biên lãi chuẩn vào giá thành sản phẩm
Định giá theo kiểu cộng thêm vào phí tổn

Mark-up: mức biên lãi

going-rate pricing Chiến lược định giá theo mức hiện hành Doanh nghiệp dựa trên mức giá chung trên thị trường để định giá cho sản phẩm/ dịch vụ của mình.

Công ty định giá dựa theo giá cả của đối thủ cạnh tranh, và ít chú trọng đến phí tổn riêng của mình hay đến nhu cầu.

Định giá theo thời giá

demand- deferential pricing Chính sách định giá phân biệt Cùng với một sản phẩm/ dịch vụ, DN định các mức giá khác nhau cho các nhóm khách hàng khác nhau, mà sự khác biệt này không
liên quan đến chi phí.
price discrimination

perceived-value pricing Định giá dựa trên giá trị Sử dụng các cảm nhận về giá trị của người mua chứ không phải phí tổn của người bán làm chìa khóa để định giá.

value-based pricing
Boston Matrix
 Introduction Stage – This stage of the cycle could
be the most expensive for a company launching a
new product. The size of the market for the product
is small, which means sales are low, although they
will be increasing. On the other hand, the cost of
things like research and development, consumer
testing, and the marketing needed to launch the
product can be very high, especially if it’s a
competitive sector.
Growth Stage – The growth stage is typically characterized by a strong
growth in sales and profits, and because the company can start to benefit
from economies of scale in production, the profit margins, as well as the
overall amount of profit, will increase. This makes it possible for
businesses to invest more money in the promotional activity to maximize
the potential of this growth stage.
 Maturity Stage – During the maturity stage, the
product is established and the aim for the
manufacturer is now to maintain the market share
they have built up. This is probably the most
competitive time for most products and businesses
need to invest wisely in any marketing they
undertake. They also need to consider any product
modifications or improvements to the production
process which might give them a competitive
advantage.
Decline Stage – Eventually, the market for a product will
start to shrink, and this is what’s known as the decline
stage. This shrinkage could be due to the market
becoming saturated (i.e. all the customers who will buy
the product have already purchased it), or because the
consumers are switching to a different type of product.
While this decline may be inevitable, it may still be
possible for companies to make some profit by switching
to less-expensive production methods and cheaper
markets.
 The classic product life cycle is Introduction, Growth,
Maturity and Decline. In the introduction stage the product is
promoted to create awareness. It has low sales and will still be
(1).......................................... If the product has few
competitors, a skimming price strategy can be used (a high price
for (2)........................................ which is then gradually
lowered). In the Growth phase sales are rising rapidly and profits
are high. However, competitors are attracted to the market with
(3)................................................ The market is characterized by
alliances, joint ventures and takeovers. (4)............................ are
large and focus on building the brand.
 In the Maturity phase sales growth slows
and then stabilizes. Producers attempt to
(5)......................................... and brands are
key to this. Price wars and competition occur as
the market (6)............................................ In
the Decline phase there is a downturn in the
market. The product is starting to look old-
fashioned or (7) ..................................... have
changed. There is intense price-cutting and
many products are (8) ................................
Advertising budgets consumer tastes differentiate products
Early adopters making a loss reaches saturation
Similar offerings withdrawn from the market
Advertising budgets consumer tastes differentiate products
Early adopters making a loss reaches saturation
Similar offerings withdrawn from the market