OVERVIEW OF MKT

Definition of MKT
1960 1985 2013
The performance of Marketing is the process of Marketing is the activity,
business activities that planning and executing set of institutions, and
direct the flow of goods the conception, pricing, processes for creating,
and services from promotion, and communicating,
producers to consumers. distribution of ideas, delivering, and
goods and services to exchanging offerings that
create exchanges that have value for customers,
satisfy individual and clients, partners, and
organizational objectives. society at large.

• Philip Kotler’s definition: the process -> companies create value for customers
and build strong customer relationships -> companies capture value from
customers in return.
• Marketing 4.0: MKT approach -> combines online + offline interaction between
companies and customers.
Functions of MKT
1. Understand the marketplace + customer needs/wants
 Research customers + the marketplace
 Manage marketing info + customer data
2. Design a customer-driven MKT strategy
 Select customers to serve (segmentation+targeting)
 Value proposition (differentiation+positioning)
3. Construct an integrated MKT program -> delivers superior value
 Product+service design (build strong brands)
 Pricing (real value)
 Distribution (manage demands+supply chains)
 Promotion (communicate the value proposition)
4. Build profitable relationships + create customer delight
 Customer relationship management (build strong relationship with
customers)
 Partner relationship management (build with MKT partners)
5. Capture value -> create profits+customer equity
 Create satisfied+loyal customers
  Capture customer lifetime value
 Increase share of market+share of customer

Modern MKT system

MKT development
Đồng sáng tạo: khách hàng + người sx: starbuck
airbnb, uber, facebook: người dùng tạo ra nội dung, hotel tonight, apple pay, momo,
zalopay
Currency: giá linh hoạt: grab
Kích hoạt cộng đồng: phân phối tập trung vào cộng đồng, tao ra cong dong và họ sẽ lan
truyền cho những ng khác, peer to peer distribution: airbnb, grab, in 3d, khách hàng thích
cái có liền ngay trc mắt
Conversation: cộng đồng: linkedin cộng đồng tuyển dụng, printest; cộng đồng chuyên về
hình ảnh, vimeo: video xã hội….
Product -> Customer’s need -> Value -> Digital/society

Core MKT concepts

  Need: A state of felt deprivation

- Current needs
- Latent needs: are needs they don’t even know they have
 Want: The form that a human need takes as shaped by culture and individual
personality.
- As a society evolves, the wants of its members expand. As people are exposed to more
objects that arouse their interest and desire, producers try to provide more want-satisfying
products and services.
 Demand: Human wants that are backed by buying power.
 Satisfaction: The extent to which a product’s perceived performance matches a
buyer’s expectations.

Performance
Expectation
  Product: Anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need. (object, place, idea, people,
service, organization, information,...)
 Market: the set of all actual and potential buyers of a product or service.
(Marketers see the sellers as constituting an industry and the buyers as constituting
a market)
 Exchange: the act of obtaining a desired object from someone by offering
something in return.
 Transaction: A trade between two parties that involves at least two things of
value, agreed-upon conditions, a time of agreement and a place of agreement.
(Transaction is MKT’s unit of measurement)
 Other concepts: Content, convention rate, engagement rate, reach, viral, KOL,
Big Data, ATL/BTL,..
Customer-driven MKT strategy
- Marketing management is the art and science of choosing target markets and building
profitable relationships with them.
- Creat+deliver value -> Aim: Find, attract, keep, grow the targeted customers
-2 important factors: Target market + Value proposition
Integrated MKT plan
- A integrated MKT plan will deliver value to customers and contains the MKT mix: 4Ps
(product, price, place, promotion)
Building customer relationships
- Customer relationship management (CRM): process -> deliver superior customer
value + satisfaction -> build + maintain profitable customer relationships
- Customer-perceived-value(giá trị nhận thức bởi KH): customer’s evaluation of the
difference between all the benefits + costs of a MKT offer comparing to competing
offers
- Customer satisfaction: The extent to which a product’s perceived performance
matches a buyer’s expectations. Delivering more than promised -> customer delight
- Customer-managed relationships: today’s new digital technologies -> customers can
interact with company and with each other -> shape relationships with brands
- Consumer-generated relationships: brand exchanges created by consumers ->
consumers has increasing role in shaping their own brand experiences
- Partner relationship management: work with partners in other company
departments/outside the company -> bring greater value to customers.
Capturing customer value
- Customer lifetime value: the value of the entire stream of purchases that the
customer would make over a lifetime of patronage.
- Share of customer: the portion of the customer’s purchasing that a company gets in its
product categories
- Customer equity: the total combined customer lifetime values of all of the company’s
customers
Evolution of MKT philosophies
Key MKT concepts:
Production -> Product -> Selling -> MKT -> Societal MKT
1. The production concept
- Consumers favor products that are available + highly affordable
-> Management should focus: Improving production + distribution efficiency

- Producing more goods -> Driving price down -> More people buy goods
- A company may need to degrade its product quality to be able to produce more goods
to satisfy customers need because the product’s cost is too high.
2. The product concept
- Consumers favor products that offer the most quality, performance and features.
 -> The organization should make continuous product improvements

- Quality is the central focus -> fulfills the needs and wants of the customer at the
same time.
- May lead to expensive products for basic needs.
- Only focus on product features can lead to not providing support, service to
customers.
3. The selling concept
- Consumers will not buy enough of the org’s products
-> Unless org undertakes a large-scale selling + promotion effort
- Advantages: focus on the sale, guide advertising efforts, clear inventory, increase
market share,...
- Disadvantages: ignore customer needs, ignore customer feedback, short-term
strategy,...
4. The MKT concept
To achieve organizational goals:
- Determining the needs and wants of target markets
- Delivering the desired satisfactions more effectively and efficiently than competitors.
-> Tập trung vào giá trị khách hàng
5. Societal MKT concept
- Org determin the needs,wants, interests of target markets + deliver value to
customers in a way that maintains or improves both the consumer’s and society’s
well-being.

THE MKT ENVIRONMENT

Definition
MKT environments: factors + forces outside MKT -> affect MKT management’s
ability (develop + maintain successful transactions with target customers)
Microenvironment: forces + factors-> close to the company -> affect ability to serve
customers
-> The company, suppliers, MKT intermediaries, customer markets, competitors,
publics.
Macroenvironment: larger societal forces -> affect Microenvironment
-> Demographic, economic, natural, technological, political, cultural forces.
The company’s microenvironment
 The company: financial capacity, technology, R&D, personnel, company’s
culture -> sets the company’s mission, objectives, broad strategies, and policies.
 Suppliers: provide resources -> company produce G&S
o Supply shortages, delays, labor strikes -> affect MKT
o Rising supply cost -> price increases -> harm company’s sales volume
 MKT intermediaries: firms -> help promote + sell + distribute goods to final
buyers
o Reseller (đại lý): individuals/organizations -> buy G&S -> resell at a
profit
o Physical distribution firm (cty phân phối hàng hoá):
warehouse/transportation/firm that help a company to stock + move
goods (dự trữ + điều phối HH)
o MKT services agency (đại lý dvụ tiếp thị): MKT research
firm/advertising agency/media firm/ MKT consulting firm/other service
providers that help a company to target + promote its products to the
right market (xác định mục tiêu + quảng bá sp trên những thị trường
hợp lý)
o Financial intermediaries (trung gian tài chính): bank/credit
company/insurance company/other businesses that help finance
transactions or insure against the risks regarding buying and selling
goods (giao dịch tài chính + bảo hiểm trước rủi ro lquan đến buôn bán
HH)
 Competitor: A company in the same industry/a similar industry which offers a
similar product/services
->Company must provide greater customer value + satisfaction than its
competitors
 Customer: the most important factor
o Consumers market: individual that buy goods for personal
consumption
o Business market: buy goods for usage in production processes
o Reseller market: buy to resell at a profit
o Goverment market: buy to use the product for public service
o International market: all types across the border
 Publics: a public = a group that has actual/potential interest/impact in/on an
organization’s ability to achieve its objectives.
o Financial
o Media
 o Government
o Citizen action
o Local
o General
o Internal
The company’s macroenvironment
 Demographic environment (mtrường nhân khẩu học):
o Definition: the study of human population (size, density, location, age, sex,
race, occupation and other statistics)
o Key demographic trends: age structures, changing family structures,
geographic shifts, education, growing ethnic diversity
 Economic environment (mtrường ktế): consists of factors -> affect consumer-
buying power and spending patterns
Example: population, income, family size, education, life expectancy, infrastructure,
unemployment, cost of labour,...
o Industrial economy (nền kt công nghiệp): rich market with a variety of
goods
o Subsistence economy (nền kt tự cung tự cấp): consuming most of their
own output
o Developing economy (nền kt phát triển): offer MKT opportunities
 Natural environment: natural resources – inputs by marketers/affected by MKT
activities. Changes in natural environment -> shortage of raw materials, increased
pollution, increased governmental intervention, increased costs of energy.
o Environmental sustainability: developing strategies + practices -> the
planet can support world economy indefinitely
 Technological environment: forces -> create new technologies + new product +
market opportunities
 Politcal environment: laws + government agencies + pressure groups ->
influence and limit various organizations + individuals in society.
o Differences between the written law and common practice/interpretation
o Differing laws related to each element of the marketing Mix
o Product: laws to protect consumers
o Price: price control mechanism, dumpling, tariffs
o Distribution: regulations covering distribution channels
o Promotion: prohibition of advertising: use of words/expressions
 Cultural environment: institutions and other forces -> affect society’s basic
values, perceptions, preferences, behaviors -> influence how ppl think + consume.

Pest/pestel analysis
SWOT analysis
 Strength: internal capabilities -> help companies reach objectives
 Weakness: internal limitations -> interfere companies’s ability to achieve
objectives
 Opportunity: external factors -> companies can exploit for advantages
 Threat: current and emerging external factors -> may challange companies’s
performance

MKT RESEARCH
The MKT information system
- MKT relies on good customer information
- Customer insight: fresh understanding of customers + marketplace (derived from MKT
information) -> basis for creating customer value and relationships
- MKT information system (MIS): people + procedures -> assess information needs +
develop market information -> decision makers generate and validate actionable
customer and market insights. (đánh giá nhu cầu tt + phát triển tt cần thiết -> người ra
q. định sử dụng tt -> tạo ra + hợp lý hoá những tt về mong muốn ẩn sâu của khách hàng
và thị trường)

 Assessing MKT information needs:(assess value and cost of information) A

good marketing information system balances the information users would like to
have against what they really need and what is feasible to offer.
 Developing MKT information:
o Internal databases: collections of consumer + market information gained
from various data sources within the company’s network.
 Customer service department – records of customer satisfaction or
service problems
 Accounting department – records of sales, costs, cash flows
 Operations – production, shipments, inventories
 Sale force – reseller reactions, competitor activities
 MKT channel partners – sales transactions
o Competitive MKT intelligence: systematic monitoring/collection/analysis
of publicly available information – consumers/competitors/developments in
the marketplace -> understand consumer environment, assessing and
tracking competitor’s actions + provide warnings of opportunities/threats ->
improve strategic decision making
o MKT research: systematic design/collection/analysis/reporting of data ->
relevant to a specific MKT situation that an organization is facing (MKT
research can give MKT insights into customer motivations, purchase
behavior, satisfaction or help assess market potential/market share or
measure the effectiveness of pricing, product, distribution, promotion
activities). 4 steps of MKT research:

 Defining problem+research objectives (hardest step): define

problem -> set reasearch objectives (3 types: exploratory/descriptive/
causal)
 Exploratory research (thăm dò): gather preliminary
information (tt sơ bộ) -> help define problems + suggest
hypotheses
 Descriptive research (mô tả): describe MKT
problems/situations/markets
 Causal research (mqh nhân quả): test hypotheses about
cause-and-effect relationships
 Developing research plan: determine the exact information ->
develop a plan for gathering it efficiently -> present plan to
management (written proposal). Research plan need to gather
secondary data, primary data, or both. 2ndary often help define
research problems + objectives.
 Secondary data: info that already exists, collected for
another purpose. 2ndary data can be accessed by using
commercial online databases (collections of info availale
from online commercial sources or accessible via internet).
Internet search engines can be used to locate 2ndary data
(must verify that found info is relevant, accurate, current,
impartial). Obtained more quickly + lower costs.
 Primary data: info collected for the specific purpose at hand.
There are different research approaches for gathering primary
data (observation/surveys/experiments).
o Observational research: observe relevant
people/actions/situations
o Survey research: asking ppl questions about
knowledge, attitudes, preferences, buying behavior
o Experimental research: selecting matched groups of
subjects -> giving them different treatments +
controlling related factors -> checking for differences
in group responses
 o Information can be collected via
mail/telephone/personal interview(individual or focus
group)/online.

o Online MKT research: collect primary data – Internet

surveys/online focus groups/web-based
experiments/tracking consumer’s online behavior.
o Impossible to collect info from entire population ->
base on samples - a segment of the population selected
for marketing research to represent the population as a
whole. 3 decisions need to be made: Sampling unit
(who), sampling size (how many) and sampling
procedure (how should they be chosen).
 Implemening the research plan: collecting(most expensive and
lead to error phase) + processing + analyzing the information
 Interpreting + reporting findings: researchers + MKT managers
(who know about the problem + decisions that need to be made)
need to interpret.
- Customer relationship management (CRM): managing detailed info about individual
customers + customer touch points -> maximize loyalty. Capturing and using consumer
data -> manage customer interactions + build customer relationship.
CONSUMPTION MARKET &
BUYING BEHAVIOR OF CONSUMERS
Consumer buyer behavior
- Definition: buying behavior of final consumers (individuals+households that buy G&S
for personal consumption) -> add up to Consumer market: all individuals+households
that buy/acquire G&S for personal consumption.
- Consumer purchases are influenced by different characteristics:
+ Internal characteristics: personal, psychological
+ External characteristics: cultural, social
 Cultural factor:
o Culture: set of basic values/perceptions/wants/behaviors -> learned by a
member -> from family
o Subculture: a group of ppl -> shared value systems -> common life
experiences/situations. Distinct but not necessarily mutually exclusive
o Social classes: relatively permanent+ordered divisions in society + similar
values/interests/behaviors
 Social factor:
o Group: 2 or more ppl -> interact -> accomplish goals. Many small groups
influence a person’s behavior.
 Membership group: group where a person belongs to
 Reference group: group serves as direct points of comparison
o World-of-mouth influence: of friends+other consumers -> strong
influence on buying behavior
o Opinion leader: a person within a reference group influence others ‘cuz of
their skills/knowledge/personality/other characteristics.
 Marketers try to identify opinion leader -> aim MKT efforts toward
this person.
 Buzz MKT: creating opinon leaders -> brand ambassadors
o Online social networks: online communitites (blogs/social networking
sites/virtual worlds) -> place for ppl to socialize+exchange info and
opinions
o Family:
 Strong influence on buying behavior.
  Buying role patterns in family change <=> evolving consumer
lifestyles
 Beside family, there are clubs, org, online communities
 Role + status: define the position of a person in a group
 Ppl usually choose products appropriate to their role+status
 Personal factor: age, life-cycle stage, occupation, economic situation, lifestyle,
personality,...
o Lifestyle: a person’s pattern of living -> expressed in activities + interests +
opinions
o Personality: unique psychological characteristics -> distinguish a
person/group
o Brands also have personaility -> the mix of human traits used to describe
the brand (sincerity, excitement, competence, sophistication, ruggedness)
 Psychological factor: motivation, perception, learning, beliefs - attitudes
o Motive (drive): a need -> direct the person to seek satisfaction.
 Motivation research -> qualitative research -> find consumer’s
hidden motivations.
 Kinds of need: psychological, safety, social, esteem, self-
actualization
o Perception: process -> ppl select+organize+interpret info -> form a picture
 People form different perceptions although same stimulus -> 3
perceptual processes: Selective attention, selective distortion,
selective retention
o Learning: changes -> individual’s behavior arising from experience.
 Drive: a strong stimulus that calls for action
 Cues: minor stimuli -> determine how a person responds
o Beliefs – attitudes:
 Belief: a descriptive thought -> a person hold -> about something
 Attitude: a person’s consistently favorable/unfavorable evaluations,
feelings and tendencies toward an object/idea. Part of bigger pattern
-> difficult to change

Different types of buying decision behavior:

 Complex buying behavior: characterized by high consumer involvement in a
purchase and significant perceived differences among brands.
 Dissonance-reducing buying behavior: high involvement, few percceived differences
among brands
 Habitual buying behavior: low consumer involvement, few signicantly
perceived differences
 Variety-seeking buying behavior: low consumer involvement, significant
perceived brand differences
5 stages of the buyer decision process
Need recognition->Information search->Alternative evaluation->Purchase decision->Post-purchase behavior

 Need recognition: consumer recognises a problem/need

 Info search: consumer want to search for more info from
personal/commercial/public/experiential sources
 Alternative evaluation: process -> consumer uses info -> evaluate alternative
brands
 Purchase decision: buyer’s decision -> choose brand (attitude of others +
unexpected situational factors -> influence ultimate decision)
 Post-purchase behavior: consumers take further action after purchasing -> base
on satisfaction/dissatisfaction. Cognitive dissonance: buyer discomfort caused by
post-purchase conflict.
- Buyer decision process can be different for new products (good/service/idea that is
perceived by some potential customers as new->consumer decide to adopt them or not)
- Adoption process -> mental process -> individual passes from first hearing about an
innovation to final adoption. 5 stages of adoption process: awareness -> interest ->
evaluation -> trial -> adoption.