CHAP 1: Marketing Overview

1.1 Marketing perspective (đọc qua cho hiểu thui)

Resolve conflicting relationships + promote goods’ consumption → marketing

★ Evolution of marketing theory

Production Orientation (định hướng sản xuất)
- Consumers prefer products: widely available & inexpensive
Product Orientation
- Consumers favor products that offer most quality, performance & features
- Product’s price increases dramatically & customers not always prepared to pay
for features they never use
Sales Orientation
- Manufacturer can produce far more goods than the market can accept
(Hãng sản xuất ra nhiều hơn so với nhu cầu thị trường)
- Consumers won’t buy enough of firm’s products unless firm: large-scale selling &
promotion effort
Marketing Orientation
- A philosophy → achieving goals depends on knowing
needs + wants of target markets + delivering better
satisfactions than competitors.
- (Market research : understand customer needs +
wants → Create superior value (product): Deliver
better than competitors.)
- Khác với Sales Orientation (chỉ cố gắng bán hàng bằng mọi giá), Marketing
Orientation bắt đầu từ chính khách hàng và nhu cầu của họ  tạo ra sản phẩm
phù hợp.
Sales and Marketing Orientations Contrasted
Societal Marketing Orientation (tiếp thị xã hội)
Societal marketing concept The idea that a company’s marketing decisions should
consider consumers’ wants, the company’s requirements, consumers’ long-run
interests, and society’s long-run interests.
 Companies are responsible for society's needs
as a whole → should consider environmental
and products impact on non-users
 Human welfare (society): yếu tố chính, đại diện
cho lợi ích, phúc lợi xã hội
 Want satisfaction (consumers): đại diện cho
việc thỏa mãn nhu cầu và mong muốn của
khách hàng
 Profits (company): doanh nghiệp cần đạt lợi nhuận từ hoạt động kinh doanh và
phát triển
Traditional Marketing and Modern Marketing
 Traditional Marketing: focus on sales (main activities of businesses)
 Modern Marketing: research & analyze the market, consumer needs + desires +
methods to satisfy consumers.

1.2 Marketing overview

1.2.1 Key terms
★ The three basic concepts in marketing
 NEEDS: state of feeling deprivation (cảm thấy thiếu thốn)
- Physical needs for food, clothing, warmth, & safety
- Social needs for belonging + affection
- Individual needs for knowledge + self expression
  WANTS: the form human needs - shaped by:
- culture & individual personality
- one’s society & are described = objects → satisfy those needs.
 DEMANDS: human wants that are backed by buying power.
- Given (dựa vào) their wants & resources → demand products with the most
value & satisfaction.
★ Market, Product
- Market: all possible consumers sharing a certain need/want - ready & able to
trade to fulfill it.
- Product: anything offered to a market for attention, acquisition, use,
consumption → satisfy a want/need
★ The core terms
- VALUES: consumers’ evaluation about its ability → satisfy needs.
(Consumers’ evaluation of ability to satisfy needs.)
- COSTS: expense (money, time, efforts, etc.) - consumers pay → obtain its value
(Expense (money, time, efforts) to obtain value.)
- SATISFACTION: feelings when consumers compare product result with their
pre-purchase expectations.
(Feelings when comparing results with expectations)
- EXCHANGE: obtaining a desired product from so = offering sth in return
(Obtaining a product by offering something in return.)
★ Satisfaction

- Dissatisfied - customer’s expectations are not met

- Satisfied - customer’s expectations are met
(a neutral state)
- Delighted - customer’s expectations are exceeded

1.2.2 The concept & nature of Marketing

- Peter Drucker, “The aim of marketing is to make selling unnecessary.”
- Marketing is social + managerial process - individuals + groups obtains needs
& wants = creating + exchanging product & value with others.
- The process by which companies create value for customers & build
relationships → capture value in return.
(đọc qua nắm ý thui)
 ★ Commonalities (điểm chung):
- a management process
- giving what customers want
- identifying & anticipating (dự đoán) customer requirements
- fulfill customer requirements efficiently & profitably
- offers & exchanged ideas, goods & services
 “Marketing is a human activity → satisfying needs & wants = exchange
processes.”
1.3 Role and function of marketing
★ The role of marketing
1. Identify customer
- Understand customer needs & wants
- Identify target customer & how to reach them
2. Satisfy customers
- Make the right product/service available to the right people at the right time
- Make everyone feel better off from the exchange
3. Retain customers
- Give customers a reason to return
- Find new opportunities to win their business (giành được sự ủng hộ từ khách
hàng)
★ Functions of Marketing
- Product consumption
- Market research
- Management organization
- Economic efficiency
1.4 Marketing management process
★ Marketing management process

1.5 Marketing mix & Marketing mix strategies

★ Marketing mix
  is the set of controllable variables - firm
can use to influence the buyer's response.
the 4 ‘P’s (Product; Price; Place;
Promotion)

tập hợp các yếu tố biến động có thể kiểm

soát được của Marketing mà công ty phối
hợp để tạo ra sự đáp ứng theo mong
muốn của thị trường mục tiêu.

★ Marketing mix strategies

★ Relationship between 4P & 4C

★ Marketing in the new context

- Digital era (kỷ nguyên)
- Rapid globalization
- Social responsibility & professional ethics (đạo đức nghề nghiệp)
- Growth of non-profit marketing activities
- Emphasis on relationship marketing

BỔ SUNG:
 ● Selling concept
The idea that consumers will not buy enough of the firm’s products unless the
firm undertakes a large-scale selling and promotion effort. (inside-out view)
Production concept
The idea that consumers will favor products that are available and highly
affordable; therefore, the organization should focus on improving production and
distribution efficiency.
 Product concept
The idea that consumers will favor products that offer the most quality,
performance, and features; therefore, the organization should devote its energy
to making continuous product improvements.
 Build a better mousetrap….
 Marketing concept
 A philosophy in which achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions
better than competitors do. (outside-in)
 Market offerings—some combination of products, services, information, or
experiences offered to a market to satisfy a need or a want
● Marketing myopia: the mistake of paying more attention to the specific
products a company offers than to the benefits and experiences produced by
these products
● Marketing management as the art and science of choosing target markets
and building profitable relationships with them distribution, pricing, and service
are core marketing activities
● Five-step model of the marketing process:
1) Understand the marketplace and customer needs and wants
2) Design a customer value-driven marketing strategy
3) Construct an integrated marketing program that delivers superior value
4) Build profitable relationships and create customer delight
5) Capture value from customers to create profits and customer equity

CHAP 2: Marketing Environment

1. The concept of the marketing environment
1.1 Definition
- The actors + forces outside marketing - affect marketing management’s ability
to build & maintain successful relationships with target customers.
1.2 The importance of the marketing environment
- Determine the right direction (making decisions)
- Forecast market development trends
- Creates opportunities & threats to businesses.
★ The classification (phân loại) of the marketing environment
The macroenvironment includes larger The microenvironment includes actors
societal forces that affect the close to the company that affect its ability
microenvironment to engage & serve its customers
2. Macro Marketing Environment

2.1 Demographic environment

- Demography: study of human populations—size, density, location, age, gender,
race, occupation & other statistics.
- Demographic environment: involves people & people make up markets.
- Demographic trends: include changing age & family structures, geographic
population shifts, educational characteristics, & population diversity.
- Generational marketing: important in segmenting people (=lifestyle/life stage
instead of age).
★ Marketing for Generations

2.2 Economic Environment

 Key Economic Variables
- GNI per capita (bình quân đầu - Income distribution (phân phối thu
người) nhập)
- Growth rate - Inflation (lạm phát)
- Infrastructure (cơ sở hạ tầng) - Unemployment rate
- Taxation - Natural Resources
 It includes factors - influence purchasing power & consumer spending habits:
- Changes in income
- Shifts in consumer spending patterns (Thay đổi mô hình chi tiêu của ng tiêu
dùng)
2.3 The natural environment
- Includes: natural condition, climate weather , geographical location, natural
resources, control the environment
- is the physical environment & the natural resources → needed as inputs by
marketers or affected by marketing activities
★ Trends in the natural environment include
- Shortage of raw materials
- Increased pollution
- Greater government intervention (can thiệp)
 - Increased focus on environmentally sustainable strategies (chiến lược bền vững
mt)
2.4 Technological environment
- Most dramatic force in marketplace changes
(CN thay đổi → tạo ra biến chuyển lớn trong cách thị trường hoạt động.)
- Shorter product’s life cycle (sp mới ra mắt → sp cũ trở nên lỗi thời.)
- New products, opportunities
- Safety concern for new products
- Impact on customer service
(CN cải thiện tốc độ → chất lượng dịch vụ khách hàng có trải nghiệm tốt hơn.)
- Ability to choose & use marketing tools
- Competitiveness
- R&D investment
2.5 Political – Legal Environment
 Legislation regulating business is intended to protect
Pháp luật điều chỉnh hoạt động kinh doanh nhằm bảo vệ
- companies from each other
- consumers from unfair business practices (hđ)
- the interests of society against unrestrained (k bị hạn chế/có hại) business
behavior
- increased emphasis on ethics
- socially responsible behavior
- cause-related marketing (Tiếp thị gắn với nguyên nhân xã hội)
2.6 Cultural Environment
- Culture: basic values, perceptions wants, behaviors - member of society learns
from family & other important institutions
★ Các cấp độ văn hóa
- Core beliefs & values: persistent,
passing from parents → children and
reinforced by schools, churches,
businesses & government.
- Secondary beliefs & values: open to
change & include people’s views of
themselves, others, organizations,
society, nature & the universe

★ Some cultural and social characteristics that impact marketing activities

 The sustainability of core cultural values
 Changes in secondary culture
- Example: Gesture Culture
- Predict cultural changes → identify new opportunities/threats
3. Micro Marketing Environment
Là những tác nhân có tác động qua lại, trực tiếp tới doanh nghiệp và những khả năng phục
vụ khách hàng của doanh nghiệp
3.1 The Company

3.2 Suppliers
- Provide resources → produce goods & services
- Treat as partners → provide customer value
★ Suppliers can put pressure on a firm when:
- High switching costs (chi phí chuyển đổi cao)
Khi chi phí chuyển đổi sang nhà cung cấp khác quá lớn (như chi phí hợp đồng, máy móc, hoặc
đào tạo), doanh nghiệp khó thay đổi và dễ bị phụ thuộc.
- Supplier can produce same product kind as firm
Nếu nhà cung cấp có khả năng làm ra sản phẩm giống hoặc cạnh tranh trực tiếp với doanh
nghiệp, họ có thể chiếm thị phần hoặc gây sức ép về giá.
- The firm is not important as customers
Nếu doanh nghiệp mua số lượng ít hoặc không chiếm tỷ trọng lớn trong doanh thu của nhà cung
cấp, họ sẽ ít quan tâm đến việc hỗ trợ hoặc ưu tiên doanh nghiệp.
- The firm can’t self-produce the materials
Nếu doanh nghiệp không có khả năng tự sản xuất nguyên liệu, họ phải phụ thuộc hoàn toàn vào
nhà cung cấp.
- Input materials are difficult to replace & greatly affects product qualities
Nếu nguyên liệu đầu vào là độc quyền hoặc đặc biệt quan trọng, nhà cung cấp sẽ có lợi thế lớn
vì doanh nghiệp khó tìm nguồn thay thế.

 Phân tích  Định hướng

- Số lượng nhà cung ứng - Xác định sốlượng nhà cung
- Khả năng và đặc điểm của các nhà cung ứng/từng loại vật tư,
ứng, - Lựa chọn nhà cung ứng
- Cơ cấu cạnh tranh - Điều kiện giao nhận, thanh
- Xu hướng biến động giá và sự khan hiếm toán
vật tư..
3.3 Marketing Intermediaries (trung gian)
 are firms that help company to promote,
sell & distribute its goods to final buyers.
- Resellers
- Distribution firms
- Financial intermediaries
- Marketing services agencies

3.4 Competitors
 - are other businesses - offer the same/similar goods & services to your
customers.
- Classification:

- Đặc điểm nhu cầu sản phẩm

3.5 Public

3.6 Customers ( the most important factor)

 Individuals & organisations - buy a firm’s products/services

CHAP 3: Consumer Behaviors

1. The concept and behavior model
1.1 Concepts
- Consumer buyer behaviour is buying behaviour of final consumers—individuals &
households that buy goods & services → personal consumption.
- The study of the process - individuals/ groups select, purchase, use/ dispose of
products, services, ideas/ experiences → satisfy needs & desires.
1.2 Consumer behavior model
2. Factors influencing customer behaviors

2.1 Cultural factors

 Cultural factors: a broad & deep influence on consumer behavior.
- Cultural influences: strong impact on consumer behavior.
- Different ethnic groups, races & religions form various cultural branches →
significantly affect purchasing behavior.
For example, the Chinese and Jewish communities abroad.
- Culture is learned & passed down.
- Culture is always evolving (↑) → meet needs.
- Culture has similarities & differences.
- Culture is sustainable & difficult to change.
- Culture has adaptability.
 Marketers: try to spot cultural shifts → discover new products wanted.
 Subcultures: groups of people within a culture sharing value systems from
common life experiences & situations.
- Includes: nationalities, religions, racial groups & geographic regions.
 Social classes: society’s permanent & ordered divisions whose members share
similar values, interests & behaviors.
- Measured = combination of occupation, income, education, wealth & other
variables
- Marketer consider social class - important criterion for market segmentation.
(E.g golf courses, hotel room categories, airline tickets, etc.)
2.2 Social factors
★ Reference groups
- serve as direct/indirect points of comparison/reference in forming a person’s
attitudes/behavior.
★ Influence of the reference group
 Influence for: seek information, achieve personal benefits, build self-concept
image
- Direct influence
- Indirect influence
★ The degree of influence of the reference group
- Consumer characteristics
- Nature of the product/ service
- Public visibility of the product
- Information received
- Product purchasing experience
- Appeal (sự hấp dẫn) & reliability of the reference group
★ Family
- major factor influencing goods consumption
- the center of goods consumption
- role of the husband & wife in the family
Usually, primary income earner - play the decisive role in shopping & spending.
 Orientation family: Includes grandparents, parents & children.
 Conjugal family: Includes husband, wife & children.
 FAMILY STRUCTURE
- Family size today & role of modern women have changed.
- Children in today's families have an important voice in purchasing decisions.
- Family consumption decisions.
★ The roles of family members in family purchasing decisions:
- Người khởi xướng: Initiator - Decision maker
- Người ảnh hưởng: Influencer - Buyer
- Người thu thập thông tin: Information gatherer - User
★ Application of family research in marketing:
- Identify family members' roles in purchasing decisions, focusing on discovering
family member plays decisive role.
- Identify the needs, motivations & desired benefits of family in each stage of life
cycle.
- Implement (thực hiện) appropriate marketing strategies.
★ Role and status
- Each individual plays a role in the group. Some have status.
- Roles and status guide people's consumption behaviors.
 APPLICATIONS IN MARKETING
- Word of Mouth
 - Provide usage instructions & offer products-align with consumers’s roles &
statuses
- Utilize status-oriented advertising → motivate consumers → purchase products
(Sử dụng quảng cáo định hướng địa vị thúc đẩy người tiêu dùng mua sản phẩm.)
2.3 Personal factors
 A buyer’s decisions - influenced by personal characteristics: age & life-cycle
stage , occupation, economic situation, lifestyle, personality & self-concept.
- Age: different age groups have different needs & wants.
- Life-cycle stage: Needs, wants, financial status & preferences change across
life stages.
- Occupation: affects goods & services bought by consumers.
- Economic situations: trends in spending, personal income, savings, interest
rates
- Lifestyle: person's living pattern (mô hình) reflected in their psychographics.
- Personality: unique psychological characteristics → distinguish a person/group.
 Market Segmentation
 Associate products with target consumers’s desired lifestyles
 Track (theo dõi) changes in lifestyles of target market → seize (nắm bắt)
opportunities.
★ Brand Personality Traits (đặc điểm)
- Sincerity (down-to-earth, honest, wholesome & cheerful)
Chân thành (chân chất, trung thực, lành mạnh và vui vẻ)
- Excitement (daring, spirited, imaginative & up-to-date)
- Competence (năng lực) (reliable, intelligent & successful)
- Sophistication (upper class & charming)
Tinh tế (thượng lưu & quyến rũ)
- Ruggedness (outdoorsy & tough)
Bền bỉ (Thích hoạt động ngoài trời và mạnh mẽ.)
2.4 Psychological factors
- A motive (or drive): pressing need →
direct person to seek its satisfaction.
- Motivation research: qualitative
research → probe consumers’ hidden,
subconscious (tiềm thức) motivations.

- Perception: process - people select, organize & interpret information → form

meaningful picture of the world.

- Learning: behavioral change from experience & occurs through interplay of:
Drives, Stimuli, Cues, Responses, Reinforcement.
- A belief: descriptive thought - person has about sth, based on: knowledge,
opinion, faith
 - An attitude: person’s consists evaluations, feelings & tendencies toward an
object/idea.
3. Purchase decision making process

3.1 NEED RECOGNITION

 the first stage - consumer recognizes a problem/ need triggered by:
- Internal stimuli: hunger or thirst
- External stimuli: an advertisement or a discussion with a friend
3.2 INFORMATION SEARCH
 the stage - consumer is motivated to search for more information.
 Sources of information:
- Personal sources: family, friends, neighbors, acquaintances
- Commercial sources: advertising, sales- people, dealer & manufacturer Web &
mobile sites, packaging, displays
- Public sources: mass media, consumer rating organizations, social media, online
searches & peer re- views
- Experiential sources: examining & using the product
3.3 EVALUATION OF ALTERNATIVES
 the stage - consumer use information → evaluate alternative brands in choice
set.
 4 criteria → evaluate products: consumption, trendy, luxury, unique
3.4 PURCHASE DECISION
 buyer's decision of which brand to buy.
 The purchase intention may not be the purchase decision due to:
- Attitudes of others: family, friends, …
- Unexpected situational factors: the availability of products, transaction,
payment, after sales service,…
3.5 POSTPURCHASE BEHAVIOUR
- the stage - consumers act after purchase, based on satisfaction/dissatisfaction

CHAP 4: Market Segmentation, Targeting, Positioning

1. Market Segmentation
1.1 Concept
- divide market → smaller segments with distinct needs, characteristics or
behaviors - require separate marketing strategies or mixes
(Có nghĩa là, chúng ta sẽ chia khách hàng thành những nhóm nhỏ khác nhau. Bởi lẽ mỗi
đối tượng hay phân khúc khách hàng thì họ sẽ có những nhu cầu, tính cách hayhành vi
khác nhau. Việc phân chia như vậy có thể giúp cho việc tiếp cận dễ dàng hơnvà đưa ra
những chiến lược phù hợp với từng phân khúc khách hàng)

★ Benefits of market segmentation

- Allocate resources efficiently;
- Refine marketing efforts;
- Enhance customer engagement
1.2 Factors for market segmentation
★ Geographic segmentation
 states, cities, climate, regions, counties, neighborhoods, population density
(urban, suburban, rural)
★ Demographic segmentation
 age, gender, occupation, religion, generation, life-cycle stage, income-
education, ethnicity
 the most popular bases → segmenting customer groups:
- Consumer needs, wants & usage rates often vary closely with demographic
variables.
- Demographic variables are easier to measure than most other types.
★ Psychographic segmentation
 divides market → different segments based on: social class, lifestyle, or
personality characteristics.
- Social class: working class, middle class, upper class
- Life style: achievers, strivers, survivors
- Personality: compulsive, outgoing, authoritarian, ambitious
★ Behavioral segmentation
 divides market → segments based on consumer knowledge, attitudes, product
usage, or responses to a product.
- Behavioral Segmentation variables: occasions, benefits sought, user status,
usage rate, loyalty status
- Occasions: when consumers decide to buy, make their purchase, or use
purchased item.
Occasion segmentation can help firms build up (tăng cường) product usage.
- Benefits sought: finding major benefits people seek in a product class, kinds of
people seeking them & major brands provide them.
- User Status: non-users, ex-users, potential users, first time users, regular users
- Usage Rate: light, medium & heavy product users
- Loyalty status: complete loyal, somewhat loyal, no loyalty.
★ SEGMENTING BUSINESS MARKETS
 Consumer & business marketers use many of the same variables → segment
markets.
 Additional variables include:
- Customer operating characteristics
- Purchasing approaches (phương pháp)
- Situational factors
- Personal characteristics
★ SEGMENTING INTERNATIONAL MARKETS
- geographic location, economic factors, political & legal factors, cultural factors
2. Selecting Target Market Segments
2.1 Evaluating market segments
- Segment size & growth
- Segment structural attractiveness
 - Company objectives & resources
2.2 Market-Targeting Strategies
- A target market: a set of buyers (common needs/characteristics) → company
decides to serve.

★ Undifferentiated marketing
 targets whole market with one offer. (theo đuổi toàn bộ thị trường = 1 sp)
- Mass marketing
- Focuses on common needs rather than what’s different
→ Cost less but doesn’t meet customers’ needs well.
★ Differentiated marketing
 targets several different market segments & designs separate offers for each.
- Goal: achieve higher sales & stronger position
- More expensive than undifferentiated marketing
★ Concentrated marketing (niche marketing)
 targets a large of a smaller market. (1 nhóm khách hàng cụ thể trong 1 thị trường
nhỏ)
- Limited company resources
- Knowledge of the market
- More effective & efficient
(tập trung vào một phân khúc lớn trong thị trường nhỏ hơn. Chiến lược này phù hợp khi công ty có:

Nguồn lực hạn chế; Hiểu rõ thị trường mục tiêu; Hiệu quả và tiết kiệm hơn)

★ Micromarketing
 tailore products & marketing programs to suit specific individuals & locations.
- Local marketing
- Individual marketing
3. Differentiation and brand/product positioning
- Product position: how consumers define product by its attributes & its place in
their minds relative to competitors.
- Competitive advantage: An advantage over competitors = providing greater
value through offering lower prices or more benefits that justify a higher price.
- When choosing a segment → determine differentiation & positioning strategy in
3 steps:
1. Identify differences → create a competitive advantage.
2. Choose the advantage → build positioning (positioning map).
3. Select an overall positioning strategy.
★ Possible Value Propositions (Các tuyên ngôn giá trị khả thi)
- Value proposition: The full positioning of a brand—the full mix of benefits on
which it is positioned.
★ More for More
- provide the most upscale product/service & charge a higher price → cover
higher costs. (Rolex watches, Starbucks coffee, Mercedes automobiles)
★ More for the Same
- offer more for the same price
- Toyota introduced its Lexus line with a more-for-the-same (or even more-for-less) value
proposition vs Mercedes & BMW

★ The Same for Less

- offer the same for less → powerful value proposition—everyone likes a good
deal
- Kindle Fire tablet - sells for less than 40% of the price of the Apple iPad

★ Less for Much Less

- offer less and therefore cost less
- Many travelers seeking lodgings prefer not to pay for unnecessary extras

★ More for Less

- In short run, some companies can achieve lofty positions.
- In long run, it very difficult to sustain best-of-both positioning
- P&G claims their laundry detergents offer the best cleaning power & everyday low
prices.

★ Positioning statement
- A statement - summarizes company/brand positioning using this form: To (target
segment and need) our (brand) is (concept) that (point of difference).
- Eg: "To busy individuals seeking quick meals, our ABC Fast Food is a restaurant chain
that offers fast, healthy, and affordable options."

CHAP 5: Product Strategy

1. Product:
1.1 Concept:
- Product: anything offered in market for attention, acquisition, use, or
consumption → satisfy a need/want.
- Service: intangible product - consists of activities, benefits, or satisfactions
without ownership.
 - Companies are now creating & managing customer experiences with their
brands/company
1.2 Levels of Product
- Core customer value: addresses question: What is
the buyer really buying?
- Actual product: features, a design, a quality level,
a brand name & packaging.
- Augmented product: offers additional consumer
services & benefits.

1.3 Product Classification

 Consumer products
 Industrial products
 Organizations, persons, places & ideas
- Product’s characteristics will greatly impact marketing strategy.

 Consumer products: products & services bought by final consumers for personal
consumption.
- Convenience products
- Shopping products
- Specialty products
- Unsought products
★ Marketing Considerations for Consumer Products

 Industrial products: products purchased → further processing or use in

conducting a business.
- Materials and parts (raw materials, manufactured materials & parts)
- Capital items (are industrial products that aid in the buyer’s production/ operations)
- Supplies and services (operating supplies, repair & maintenance items & business services)
 Organizations, Persons, Places, and Ideas
- Organization marketing: activities → create, maintain or change the attitudes &
behavior of target consumers toward an organization.
- Person marketing: activities → create, maintain or change attitudes/behavior
toward particular people
- Place marketing: involves activities → create, maintain, or change attitudes/
behavior toward particular places
 - Ideas marketing: The use of commercial marketing concepts & tools in programs
→ influence individuals’ behavior → improve their well-being & that of society.
2. Product Decision
2.1 Product Mix decision

2.2 Product line decision

2.3 Label
 Identify product/brand, describe attributes & provide promotion.
- who made it - how it is to be used
- where it was made - how to use it safely
- when it was made, its contents
2.4 Product quality
 characteristics of product/service that bear on its ability to satisfy stated/implied
customer needs.
- Durability (Độ bền) - Precision (Độ chính xác)
- Reliability (Độ tin cậy) - Ease of operation (Dễ vận hành và sửa chữa)
2.5 Product characteristics
 features - demonstrate product's functionality & create differentiation when
using product.
 A product can be offered with different characteristics.
2.6 Product Packaging
 design & produce the container/wrapper for product.
 Includes the following components:
- Inner, outer & shipping packaging
- Labels attached to the packaging
- Information on the packaging
 Marketing functions of packaging:
- Satisfy the increasing needs of customers
- Build the company's image & brand
 - Create opportunities for innovation
2.7 Product support services
- Service content (Những gì dịch vụ hỗ trợ cung cấp.)
- Level of service (Chất lượng và phạm vi dịch vụ.)
- Method of service delivery (Phương thức dịch vụ được thực hiện: trực tiếp, online, giao tận
nơi..)
 Some services supporting the product:
- User guide (hdsd) - Installment sales (Hỗ trợ mua trả góp)
- Maintenance (Dịch vụ bảo dưỡng sp) - Product installation (Dịch vụ lắp đặt
- Warranty (Bảo hành sản phẩm) sp)
- Consumer consulting (tư vấn)
- Transportation; Delivery as per customer request (Vận chuyển, giao hàng theo yêu
cầu)
2.8 Developing new products
 New product
- New to the market
- New to the company ư
 Completely new products in the  Improvements to existing products
market  Repositioning of product types
 Addition of new product lines  New design
 Supplement to existing product lines
3. Brand
 name, term, sign, symbol, design, or combination of them → identify seller’s
goods or services & differentiate them from those of competitors
3.1 Branding Strategy
 Brand equity (tài sản thương hiệu)
The differential effect that knowing
the brand name has on customer
response to the product or its
marketing.
4. Product life-cycle
The course of a product’s sales & profits over its lifetime.

- Product development: company finds & develops new product idea. (0 sales, the
company’s investment costs mount (tăng lên))
- Introduction: period of slow sales growth as product is introduced in market.
(Profits are nonexistent, heavy expenses)
- Growth: period of rapid market acceptance & increasing profits.
- Maturity: period of slowdown in sales growth vì product reaches most potential
buyers. Profits level off/decline ( vì increased marketing outlays → defend
product against competition)
- Decline: period when sales fall off & profits drop.
5. Product Strategies
5.1 Introduction Stage:
new product is first distributed & made available for purchase
★ CHARACTERISTICS ★ STRATEGIES
 Sales: Low price  Product: Offer a basic product
 Costs: High  Price: Cost-plus pricing
 Profits: Negative  Distribution: Build selective distribution
 Customers: Innovators  Advertising: Build product awareness among early
 Competitors: Few adopters & dealers
 Sales Promotion: Use heavy sales promotion to entice
trial
★ MARKETING OBJECTIVE Create product engagement & trial
5.2 Growth Stage
a product’s sales start climbing quickly.
★ CHARACTERISTICS ★ STRATEGIES
 Sales: Rapidly rising sales  Product: Offer product extensions, service & warranty
 Costs: Average  Price: Market penetration pricing
 Profits: Rising profits  Distribution: Build intensive (rộng) distribution
 Customers: Early adopters  Advertising: Build engagement & interest in mass market
 Competitors: Growing  Sales Promotion: Reduce to take advantage of heavy
number consumer demand
★ MARKETING OBJECTIVE Maximize market share (Tối đa hóa thị phần)
5.3 Maturity Stage
a product’s sales growth slows/levels off.
★ CHARACTERISTICS ★ STRATEGIES
 Sales: Peak sales  Product: Diversify brand & models
 Costs: Low  Price: Pricing to match/beat competitors
 Profits: High  Distribution: Build more intensive distribution
 Customers: Mainstream adopters  Advertising: Stress brand differences & benefits
 Competitors: Stable number  Sales Promotion: Increase to encourage brand
beginning to declinewing number switching
★ MARKETING OBJECTIVE Maximize profit while defending market share (Tối đa hóa lợi
nhuận đồng thời giữ vững thị phần)

5.4 Decline Stage

a product’s sales fade away.
★ CHARACTERISTICS ★ STRATEGIES
 Sales: Decline  Product: Phase out (loại bỏ) weak items
 Costs: Low  Price: Cut price
 Profits: Decline  Distribution: Go selective: phase out unprofitable
 Customers: Laggards (lạc hậu) outlets (trung gian)
adopters  Advertising: Reduce to level needed to retain hard-
 Competitors: Declining number core loyal
 Sales Promotion: Reduce to minimal level
★ MARKETING OBJECTIVE Reduce expenditure and milk the brand.

 Styles, Fashions, and Fads

 A basic & distinctive mode of expression.
 A style - endures ups & downs over time.

 A style - currently widely accepted/popular in a

particular field;
 Moderate growth rate, lasting for a while
before gradually declining

 A phase - product/brand experiences unusually

high sales vì surging (tăng) popularity &
consumer enthusiasm;
 The product suddenly becomes a "hot trend" &
then quickly fades out of trend

CHAP 6: Pricing Strategy

1. What is a Price
 - Price: the money charged for
product/service, or all values customers
exchange its benefits.
- Price: the only element in marketing mix
produces revenue; all other elements
represent costs.
- The most flexible marketing mix elements in
4P
2. Major Pricing Strategies

- Customer perceptions of product’s value set ceiling price (giá trần)

- Product costs set the floor price.
- The company must consider several external & internal factors, including
competitors’ strategies & prices, overall marketing strategy & mix, nature of
market & demand.
 Customer Value-Based Pricing  Cost-Based Pricing
• Good-Value Pricing • Cost-Plus Pricing
• Value-Added Pricing • Break-Even Analysis and Target Profit Pricing
 Competition-Based Pricing
2.1 Customer Value-Based Pricing (định giá dựa trên giá trị khách hàng)
- Setting price based on buyers’ value perceptions, not seller’s cost.
- Price is considered with other marketing mix variables before marketing
program is set.
- A product exchanged with customers has 2 values: Actual Value & Perceived
Value.
- Perceived value changes depending on individual & circumstances
o Customer Value Received = Product Value + Service + Staff + Image.
o Customer Costs = Product Price + Time + Effort + Spirit.
- Analyze consumers' purchasing motives → establish prices – align (phù hợp) with
their perception of product value.
- Pricing strategies must adapt to suit different market segments.
★ Good-Value Pricing (định giá dựa trên giá trị hợp lý)
- Offer the right combination of quality & good service at fair price
1. Less-expensive versions of established brand name products or new lower-price lines
2. Redesign existing brands → more quality for a given price or same quality for
less
3. Everyday low pricing (EDLP) - charge a constant, everyday low price with few or
no temporary price discounts. High-low pricing – charge higher prices on
everyday but frequent promotions to lower prices temporarily on selected items.
★ Value-Added Pricing (định giá dựa trên giá trị gia tăng)
 - Attaching value-added features and services to differentiate a company’s offers
and charging higher prices.
2.2 Cost-Based Pricing
 Setting prices based on costs of producing, distributing & selling product plus a
fair rate of return for effort & risk.
- Total costs: the fixed + variable costs for any given production level.
- Fixed costs: costs - not vary with production/sales level.
- Variable costs: costs - vary directly with production level.
 If it costs company more than competitors to produce & sell a similar product →
charge a higher price or make less profit → competitive disadvantage.

★ Cost-Plus Pricing
 Adding a standard markup to the cost of the product: Price = COGS + COGS x a
%
 Advantages:
- Easy & fast calculation
- Costs arising during sales are included in profit percentage
 Disadvantages:
- Inflexible, unsuitable for products whose prices change according to the change
in supply & demand.
 Apply for products slow to change prices or must be sold within a day after
production
★ Break-even analysis and target profit pricing (Phân tích điểm hòa vốn & định giá
lợi nhuận mục tiêu)

 Setting price to break even on costs of making & marketing a product, or to

make a target return.
- Target price = unit costs + target profit/ expected consumption quantity
- Break-even volume formula
FC BEV: break-even volume
BEV =
P−VC FC: fixed costs
VC: variables costs
P: price
2.3 Competition-Based Pricing
- Setting prices based on competitors’ strategies, prices, costs & market offerings.
- Fast Moving Consumer Goods (FMCG) often apply this pricing methods
3. Other Considerations Affecting Price Decisions

3.1 Internal:
★ Overall Marketing Strategy, Objectives, and Mix
1. S-T-P
2. Company objectives
Survival - Maximizing profit- Maximizing market share - Quality leader
 Survival
- Low price to retain customers
- Survival is more important than profit
- Apply when competition is fierce (khốc liệt) & customers’ needs change rapidly
 Maximizing profit
- High price recover costs & get greatest profit
- When intangible value of product/service is too high, it will suppress the high
price
- When do you buy a product that you clearly know it’s expensive?
 Maximizing market share
- Cheaper price, more customers
- When sales volume is high, cost per product unit will fall
 Quality leader
- High prices to recover R&D, design & testing costs
 Other objectives
- Prevent new competitors from entering market
- Stabilise market, avoid price war
- Maintain intermediaries’ (trung gian) loyalty
- Avoid government’s interference
 Competitive price strategy:Price will determine cost of Product, Place &
Promotion
 Non-price competitive strategy: Product, Place & Promotion will determine Price
★ Organizational Considerations
 Management must decide who in organization should set prices.
 In small companies, top management typically sets prices instead of the
marketing or sales departments.
 In large companies, pricing is typically handled by divisional or product
managers.
  In industrial markets, salespeople may be allowed to negotiate with customers
within certain price ranges.
3.2 External:
★ The Market

★ Price–Demand Relationship
 Customers are less price-sensitive
when:
1. Unique product/high quality.
2. Few substitute products.
3. Difficult to compare.
4. High switching costs.
5. Total spending is small compared to
total income.
6. Sharing costs with others.
7. Additional investment.
8. Cannot be stored & fear of future price cầu co dãn cầu
không co dãn
in creases.
★ Marketing environment
- Overall economic situation (inflation, economic boom or recession, interest rates,.)
- Government regulations on selling prices.
- Cultural & social influences, etc.
- Reactions of distribution intermediaries to selling prices (P/ứng của các trung gian
phân phối đối với giá bán)
4. New Product Pricing Strategies
★ Market-Skimming Pricing (định giá hớt váng thị trường)
 Setting high price for new product → skim maximum revenues from the
segments willing to pay high price → the company makes fewer but more
profitable sales.
 Điều kiện áp dụng:
- The product’s quality + image must support its higher price & enough buyers
want product at that price.
- The costs of producing a smaller volume not be so high that they cancel the
advantage of charging more.
- Competitors unable to enter market easily & undercut high price.
★ Market-Penetration Pricing (định giá thâm nhập thị trường)
 Setting low price for new product → attract many buyers & large market share.
  Điều kiện áp dụng:
- The high sales volume → falling costs
- Production & distribution costs decrease as sales volume increases
- The low price help keep out the competition
5. Price Adjustment Strategies

 Discount: A price reduction on purchases during a stated period of time or of

larger quantities.
 Allowances (chiết khấu): Promotional money paid by manufacturers to
retailers for agreement to feature manufacturer’s products.
 Segmented pricing: Selling a product/service at two or more prices, difference
in prices is not based on differences in costs.
 Psychological pricing: considers psychology of prices and not simply
economics; price is used to say sth about product.
 Promotional pricing: Temporarily pricing products below the list price (giá
niêm yết), sometimes even below cost → increase short-run sales.
 Geographical pricing: Setting prices for customers located in different region
- FOB-origin pricing (Định giá FOB)
- Uniform-delivered pricing (Định giá đồng vận phí)
- Zone pricing (Định giá theo vùng)
- Basing-point pricing (Định giá theo điểm gốc)
- Freight-absorption pricing (Định giá bao vận chuyển)
 Dynamic pricing (định giá động): Adjusting prices continually → meet
characteristics & needs of individual customers & situations.
 International Pricing
- Uniform worldwide price
- Adjust prices to reflect local market conditions & cost considerations
CHAP 7: Distribution Strategy
1. The Nature and Importance of Marketing Channels
1.1 Definition
- Marketing channel (distribution channel) A set of interdependent organizations
→ make a product/service available → use/consumption = consumer/business
user.
★ The importance of distribution activities
- Bring products → target market
- Easier market penetration (thâm nhập) for products
- Create good, long-term rela with intermediaries, manufacturers & customers
- Affect business’s costs & profitability
★ Distribution tasks
1. Product collection: Gather products from manufacturers/suppliers →
distribution
2. Product storage: Store products in warehouses/distribution centers → manage
inventory & ensure availability
3. Product packaging: Package goods for transportation → protect & meet
logistical requirements.
4. Product transportation: Move products from 1 location → another
(warehouses, retailers, or directly to consumers)
5. Wholesale and retail sales: Sell products = intermediaries (wholesalers or
directly to customers via retailers)
 A distribution channel – the path of a product from producer → final consumer
 Distribution strategy: system of decisions → transfer products both physically
and ownership or usage rights from producer to consumer → high efficiency.
★ The functions of distribution channels in marketing
 Information: Gather & distribute in4 about consumers, producers & other
actors and forces in marketing environment needed → plan & aid exchange
 Promotion: Develop & spread persuasive communications about an offer.
 Matching: Shape offers → meet buyer’s needs, includes activities:
manufacture, grade, assemble & package. (sản xuất, phân loại, lắp ráp và đóng
gói.)
 Negotiation (thương lượng): Reach an agreement on price & other terms →
transfer ownership/possession.
 Physical distribution: Transport & store goods
 Financing: Acquire (huy động) & use funds → cover channel work’s costs
 Risk taking: Assume the risks of carrying out the channel work
2. Channel Organization
2.1 Traditional Distribution Channel Organization
 Characteristics:
- Channel’s member operate independently → maximize profits, even if these
activities may reduce overall profits.
- No member can control other’s behavior
- No binding roles or responsibilities in handling disputes.
2.2 Traditional distribution channel model in the B2C market

★ 0 level channel
- Shorten time → goods circulation (lưu thông) & saving costs; quantity purchased
must be large enough & goods’s specifications not be too complex
- Suitable for perishable (dễ hỏng) products, high-value items, bulky (cồng kềnh)
goods & complex technical products; customers concentrated in a specific
geographical area & other conditions.
e.g Household wooden furniture, hairdressing services, dining, etc
★ 1 level channel
- a short indirect channel because it involves an intermediary.
- formed when large-scale retailers purchase large volumes of products from
manufacturers & take on wholesale function themselves.
- allows for wide products distribution & applicable to various goods, especially
consumer goods.
e.g construction material stores, supermarkets, large bookstores, etc.

★ 2 level channel
- wholesalers aggregate & coordinate products from manufacturers to retailers.
- This channel consume a large quantity of goods & distribute products widely,
applicable to various goods & markets.
- suitable for low-unit-value products + low costs - purchased
frequently=numerous consumers over a wide area at small, flexible retail points.
eg: confectionery, tobacco, newspapers, soap, cooking oil, etc.

★ 3 level channel
- Agents are used to represent manufacturers in working with distribution
channels, helping to aggregate products and coordinate the supply of products
in large quantities.
- Large manufacturing enterprises operating in wide market areas also use agents
in different market regions to manage the supply of products to those areas.
- Agents are also commonly used in the distribution of imported goods.
2.3 Traditional distribution channel model in the B2B market

★ Direct channel
- A business maintains its own sales force & responsible all functions of
distribution channel.
- It is used for the large-scale buyer, strong negotiation efforts, high-value
product, and requirements for installation assistance or user instructions

★ level channel
- The manufacturer uses agents → represent business in contacting distributors &
sellers → industrial customers.

★ 1 level channel
- industrial distributor is similar to wholesaler in B2C market, performe various
functions (sales, warehousing, distribution & credit)
- When there are numerous customers, each with a small scale

★ 1 level channel
 -Agents operate like company's sales force but act independently, introduce
manufacturer to industrial customers.
- When manufacturer doesn’t want to maintain their own sales force/when market
is geographically dispersed
 Organizations Supporting Distribution Channels

3. Channel Design Decisions

- Analyzing Consumer Needs
- Setting Channel Objectives
- Identifying Major Alternatives
3.1 Analyzing Consumer Needs
- Consumption scale - Product variety
- Waiting time - Support services
- Convenient location
3.2 Setting Channel Objectives
- Consumer characteristics - Competitive characteristics
- Product characteristics - Business characteristics
- Characteristics of distribution - Business environment characteristics
intermediaries
3.3 Identifying Major Alternatives
- Select intermediaries
- Determine the number of intermediaries
- Define conditions & responsibilities of members inchannel
- Establish criteria → evaluate channel selection
★ Intensive distribution
- Intensive distribution: Stock product in as many outlets as possible. (the number
of intermediaries is unlimited; the more, the better)
- Manufacturers want to spread their products as much as possible → increase
their competitive.
- These products must be available where & when consumers want them.
e.g toothpaste, candy & other similar items are sold in millions of outlets → provide
maximum brand exposure & consumer convenience.

★ Selective distribution
- Selective distribution: The use of more than one but fewer than all of
intermediaries - willing to carry company’s products.
- Most brands of consumer electronics, furniture & home appliances → distributed
in this way.
- Develop strong working relationships with selected channel members → achieve
better-than-average sales efforts.
- Provides manufacturers: good market coverage while offer more control & lower
cost so với intensive distribution.
★ Exclusive distribution (phân phối độc quyền)
- Exclusive distribution: Give limited number of dealers the exclusive right →
distribute company’s products in their territories. (khu vực)
- When manufacturer hasn’t considered or doesn’t have enough resources to
enter a market (unfamiliar with their product)
- Found in distribution of luxury brands, distributor can elevate product to a higher
status.
- The success of this approach relies heavily on distributor’s competence
CHAP 8: Promotion Strategy
1. The Promotion Mix
1.1 Concept
- (marketing communications mix): specific blend of promotion tools - company
uses→ persuasively communicate customer value & build customer
relationships.
1.2 Advertising
- Any paid form of nonpersonal presentation & promotion of ideas, goods or
services = identified sponsor(nhà tài trợ) (Television, Print, Online,Mobile,Outdoor)
1.3 Sales promotion
- Short-term incentives → encourage purchase/sale of product/service.
( Discount - Coupon (phiếu giảm giá) - Contest - Display - Demonstration)
1.4 Personal selling
- Personal customer interactions by firm’s sales force → engage customers, make
sales, build customer rela.
( Sales presentation - Trade show - Promotional program)
1.5 Public relations
- Build good relations with company’s various publics = obtain favorable publicity,
build up a good corporate image & handle or head off unfavorable rumors,
stories & events.
(Press release • Press conference • Sponsorship • Event organization • Website
1.6 Direct and digital marketing
- Engage directly with targeted individual consumers & customer communities→
obtain an immediate response & build lasting customer rela.
• Direct mail • Catalog
2. Integrated Marketing Communications (Truyền thông marketing tích hợp)
- Carefully integrate & coordinate company’s communications channels → deliver
a clear, consistent & compelling message about organization & its products.
3. The Communication Process & Steps in Developing Effective Marketing
Communication
3.1 The Communication Process

★ Effective message
- encoding process of sender must align with decoding process of receiver.
- The best messages include words & symbols (familiar to receiver)
- The more sender's field of experience overlaps (trùng) with receiver's
experience, the more message will be effective
3.2 Steps in Developing Effective Marketing Communication
★ Identifying the Target Audience

★ Determining the Communication Objectives

 Buyer-Readiness Stages

★ Designing a Message
 Rational appeals relate to audience’s self interest.
 Emotional appeals attempt to stir up negative/positive emotions - can
motivate purchase.
 Moral appeals are directed to an audience’s sense of what is “right” &
“proper”.
★ Choosing Communication Channels and Media
 Personal Communication Channels: two or more people communicate
directly with each other (face to face, on the phone, via mail or e-mail, or an
Internet “chat.” )
 Nonpersonal communication channels: media that carry messages without
personal contact/feedback (major media, atmospheres & events.)
★ Selecting the Message Source
- Message’s impact depends on how target audience perceives communicator.
- • Celebrity • Athlete • Entertainer • Expert • Healthcare professional
★ Collecting Feedback
 After send the message/other brand content, communicator must research its
effect on target audience.
- Do they remember the content - What points they recall
- How many times they saw it - How they felt about the content
- How their past & present attitudes toward the brand & company
4. Setting the Total Promotion Budget and Mix
4.1 Setting the Total Promotion Budget
 Affordable Method: Set promotion budget at level - management thinks
company can afford.
- The budget for annual communication activities will be uncertain.
- Next year, when market changes, difficulties will arise.
- This can lead to insufficient spending levels, although it can also sometimes
result in overspending.
 Percentage-of-Sales Method: Set promotion budget at a certain & of current
or forecasted sales or as a percentage of the unit sales price.
- The budget will vary according to annual revenue, making it difficult to establish
long-term planning.
 Competitive-Parity Method: Set promotion budget to match competitors’
outlays.
- However, each company is different and has its own communication
requirements, so this cannot be applied long-term.
 Objective-and-Task Method : Develop promotion budget by
(1) defining specific promotion objectives,
(2) determining the tasks needed to achieve these objectives, and
(3) estimating the costs of performing these tasks. The sum of these costs is the
proposed promotion budget.
4.2 Promotion Mix Strategies
★ Push strategy
 A promotion strategy that calls for using the sales force and trade promotion to
push the product through channels. The producer promotes the product to
channel members who in turn promote it to final consumers.
★ Pull strategy
 A promotion strategy that calls for spending a lot on consumer advertising and
promotion to induce final consumers to buy the product, creating a demand
vacuum that “pulls” the product through the channel.

★ Integrating the Promotion Mix

- The company must take steps to ensure that each communication tool is
integrated smoothly.
- Different communication tools must work together to convey the brand message
and the unique selling points of the business.
★ Socially Responsible Marketing Communication
 Open and honest communication with consumers and resellers.
 Avoid deceptive or false advertising.
 Avoid bait-and-switch advertising.
 Comply with all national regulations.
 Adhere to the principle of "fair competition.”
 Do not offer bribes.
 Do not attempt to obtain competitors' trade secrets.
 Do not disparage competitors or their products.
★ Advertising
- Reach a large number of buyers at a low cost. • Increase sales rapidly.
 Limitations:
- Not convincing specific customers • One-way communication channel with the
audience • Advertising can be very expensive
★ Personal selling
- The most effective tool: In certain stages of the purchasing process.
- Allows for all types of customer relationships: Developing from a simple
transactional relationship to personal friendships.
 - Building relationships: Long-term by addressing customer issues 3
 Limitations:
- The sales force requires long-term commitment.
- The scale of a sales force is difficult to change.
- The most expensive marketing tool of the company
★ Sales promotion
- Attract consumer attention.
- Create a strong motivation to drive purchases.
- Revive sales for a quick response
★ Public relations tools:
- Sponsorship activities
- Charitable activities
- Open house events for the public to visit the organization
- Publication of financial reports
- Participation in community activities
- Event organization
- Media relations
- Press conferences
- Lobbying
- Crisis management