BASIC MARKETING

CHAPTER 1: MARKETING’S VALUE TO CUSTOMERS,

FIRMS, AND SOCIETY
1. Marketing definition
2. Micro – Macro marketing
3. Marketing function
4. Marketing – driven economy
* List of keywords 5. Marketing concept
6. Customer value
7. CSR
8. Marketing ethic
9. NEED-WANT-DEMAND

NEED: the basic human requirement, it is not created by marketers.

WANT: specific objects that might satisfy the need.
DEMAND: wants for specific products backed by ability to pay.
VALUE: reflect the sum of the perceived tangible and intangible benefits and cost to customers.
It’s a combination of quality, service, and price (QSP)
Satisfaction: Reflects a person’s judgements of outcome (perceived performance) related to his
expectations.
Marketing definition: _ It is a process help company to satisfy customer’s need.
_ Is managing profitable customer relationships.
_ The process by which comp…exchange values.
Marketing + Production  create customers satisfaction.
Micro - Marketing Macro - Marketing
_ Set of activities _ Social process
_ Performed by org _ Matches S w/ D

Marketing function: Buying, Selling, Transporting, Storing, Standardization & Grading,

Financing, Risk Taking, Market Information.
Marketing – driven economy:
Planned Economic System Market - Directed System
 Government planners decide  Adjusts itself
 Can work well if:  Price is value measure
Simply economy  Freedom of choice
Adverse conditions  Government’s role limited
 Marketing’s Role Has Changed Over Time
Simple Trade Era Sell Surplus
Production Era Increase Supply
Sales Era Beat Competition
Marketing Department Era Coordinate and Control
Marketing Company Era Long-Run Customer Satisfaction

*Marketing concept: Customer satisfaction, Total company effort, Profit.

An organization aims all of its efforts at satisfying its customers – at a profit.
Marketing – oriented: Market  customer  customer satisfaction
Production – oriented: Factories  market  profit
Customer value: the difference between the benefits a customer sees from a market offering and
the costs of obtaining those benefits.
QSP: Quality, Service, and Price.
CSR: A Firm’s obligation to improve its positive effects on society and reduce its negative effects
Marketing ethic: the moral standards that guide marketing decisions and actions
 CHAPTER 2: MARKETING STRATEGY PLANNING
1. Marketing strategies planning
Mkt strategy
Mkt plan
* List of keywords Mkt program
2. Target – Mass marketing
3. Marketing mix – 4Ps
4. Marketing oppoturnities

Marketing planning: Implement, Control (Measure, KPIs)

CPC: Cost per click; PPC: Pay per click; PPV: Pay per view
Mass marketing: the typical production-oriented approach – vaguely aims at “everyone” with the
same marketing mix.
Target marketing: a marketing mix is tailored to fit some specific target customers.
USP: Unique selling point.

Consumer Product
4C – Create customer Convenience Place
4P
profile Communication Promotion
Cost Price
Marketing Opportunities:
Present products New products
Present markets Market penetration Product development
New markets Market development Diversification
Example:
Market penetration:

Market development:

Product development:

Diversification:
 CHAPTER 3: EVALUATING OPPORTUNITIES IN THE
CHANGING MARKET ENVIRONMENT
1. PEST (PESTLE)
* List of keywords
2. Competitive environment

Direct Marketing Environment: Competitive Environment

Market Model
Charateristic Pure Monopolistic Oligopoly Pure
Competition Competition Monopoly
Number of firms A very large Many Few One
number
Type of product Standardized Differentiated Standardized or Unique; no
differentiated close subtitutes
Control over Non Some, but within Limited by mutual Considerable
price rather narrow limits interdependence;
considerable with
collusion
Conditions of Very easy; no Relative easy Significant Blocked
entry obstacles obstacles
Nonprice None Considerable Typically a great Mostly public
competition emphasis on deal, particularly relations
advertising, brand with product advertising
names, trademarks differentiation
Example Agriculture Retail trade, dresses, Steel, automobiles, Local utilities
shoes farm implements,
many household
appliances
External Market Environment: PESTLE

 International
 Stability of
influences
government
P T  Changes in
 Potential changes to
POLITICAL TECHNOLOGICAL information
legislation
technology
 Global influences
 Take-up rates
 Economic growth  Tax policies
 Employment rates  Employment laws
E  Inflation rates L  Industry
ECONOMIC  Montery policy LEGAL regulations
 Consumer  Health and safety
confidence regulations
 Income distribution  Regulations and
S  Demographic E restrictions
SOCIOLOGICAL influences ENVIRONMENTAL  Customer
 Lifestyle factors attitudes
 CHAPTER 4: FOCUSING MARKETING STRATEGY WITH
SEGMENTATION AND POSITIONING
1. Generic market
2. Product market
3. Market segmentation
4. Sub-market
* List of keywords
5. Three approaches
6. Four dimensions
7. Seven step approach
8. Positioning

Market: group of potential customers with similar needs who are willing to exchange something of
value with sellers offering various goods or service.
Generic market: a market with broadly similar needs and sellers offering various ways of
satisfying those needs.
Product market: a market with very similar needs and sellers offering various close substitute ways
of satisfying those needs.
Generic market
Customer needs Customer types Geographic area Product type
Product market

Homogenious: đồng nhất; Aggregating: tổng hợp

Market segment: a relative homogeneous group of consumers who will respond to a marketing mix
in a similar way.
In a product-market area (Three approaches)
A segmenter A combiner
Single target market approach Multiple target market Combined target market
approach approach
Segmenting the market,
Segmenting the market and chooses two or more segments, Combining two or more
picks one of the homogeneous and then treats each segment submarkets into one larger
segments as the firm’s target as a separate target market target market as a basis for one
market needing a different marketing strategy
mix
Can aim at one sub market Can aim at two or more Can aim at two or more
with one marketing mix submarkets with different submarkets with the same
marketing mixes marketing mix
 Qualifying Dimensions Determining Dimensions
 Relevant to including a customer type in  Affect the customer’s purchase of a
a product market product or brand
 Help identify “core features”  Can be further segmented

Possible Segmenting Dimension (Four Dimensions)

Geographic Demographic Psychographic Behavioral
The geographic area Sex, Age Lifestyle Consumption intensity
City, suburb, village Education Personal Qualities level
Climate The level of income Reasons, motives Product intended use
Relief Family size Interests Loyalty
Type of occupation,… Sensitivity to price
Expectations

Seven step segmenting product markets:

1. Name broad product - market.
2. List customer needs
3. Form homogeneous submarkets
4. Identify determining dimensions
5. Name possible product – markets
6. Evaluate product – market segments
7. Estimate size of product – market segments
Positioning
 CHAPTER 6: FINAL CONSUMERS AND THEIR BUYING
BEHAVIOR
1. Economic buyer model
2. Psychological variables
Social infuences
Purchase situation
* List of keywords 3. Selective exposure
Selective retention
Selective perception
4. Problem solving process
5. Stimuli

DRIVES: internal stimulus push you to buy, incourage action.

CUES: products, signs, ads, and other stimuli in the environment
RESPONSE: is an effort to satisfy a drive
Selective exposure: our eyes and minds seek out and notice only information that interested us.
Selective perception: we screen out or modify ideas, messages, and information that conflict with
previous learned attitudes and beliefs.
Selective retention: we remember only what we want to remember.
Belief: An opinion; Attitude: A point of view
Problem solving processes:

Three level of problem solving continuum:

Low involvement High involvement
Frequently purchased Routinized Limited Extensive Infrequently purchased
Inexpensive response problem problem Expensive
Little risk behavior solving solving High risk
Little information Much information desired
 CHAPTER 9: ELEMENTS OF PRODUCT PLANNING FOR
GOODS AND SERVICES
1. Product: Goods >< Services 9. Brand familiarity (5 lv)
2. Consumer product classes 10. Brand choices (4)
3. Business product classes 11. Manufacturer brands
4. Qualitiy of product – relative 12. Dealer brands
quality of product 13. Consumer product classes
Search qualities (B2C)
Experience qualities 14. Convenience product
Credence qualities 15. Shopping product
5. Product assortment 16. Specialty product
* List of keywords Product line 17. Unsought product
Individual product 18. Business product classes
6. Product depth (B2B)
Product width 19. Accessories
Product lenghth 20. Raw material
7. Branding 21. Component parts and
8. Packaging, warranties materials
22. Maintainance, repair, and
operating (MRO) supplies
23. Professional services

Product: _ The need-satisfying offering of a firm

_ The customer’s entire experience with the product meets the customer’s need
_ Quality: a product’s ability to satisfy a customer’s needs or requirements

➔ Goods – Service

Goods Services Resulting Implications

Tangible Intangible  Services cannot be inventoried.
 Services cannot be easily patented.
 Services cannot be readily displayed or
communicated.
 Pricing is difficult.
Standardized Heterogeneous  Service delivery and customer satisfaction
depend on employee and customer
actions.
 Service quality depends on manu
uncontrollable factors.
 There is no sure knowledge that the
service delivered matches what was
planned and promoted.
 Production separate Simultaneous  Customers participate in and affect the
from consumption production and transaction.
consumption  Customers affect each other.
 Employees affect the service outcome.
 Decentralization may be essential.
 Mass production is difficult.
Nonperishable Perishable  It is difficult to synchronize supply and
demand
 with services
 Services cannot be returned or resold

Search quality: Clothing, jewelry, furniture, houses, automobiles,…

Experience quality: Restaurant meals, vacation, haircuts, child care,…
Credence quality: Television repair, Legal services, root canal, auto repair, medical diagnosis,…
7Ps for services:

Product assortment: set of all product lines & individual products that a firm sells
Product line: set of individual products that are closely related
Individual product: particular product within a product line
Brand names/Trademarks/Other mean of product identification: the use of name, term, symbol
or design – or a combination of these – to identify a product.
Brand familiarity: 1. Brand rejection
2. Brand non-recognition
3. Brand recognition
4. Brand preference
5. Brand insistence
Brand choices: 1. Family brand
2. Licensed brand
3. Individual brand
4. Generic “brand”
Manufacturer Brands Dealer Brands
 Also called national brands  Also called private brands or store
 Create/owned by producers brands
 Develop demand across many markets  Create/owned by middlemen
 Create higher margins for dealers

Packaaging involves promoting, protecting, and enhancing the product.

Warranty explains what the seller promises about its products.
Business Products
Consumer Products
Products meant for use in
Products meant for the final consumer
producing other products
Staples  Accessories
Conveniences
Impulse Products  Raw materials
Products
Emergency Products  Component Parts & Materials
Homogeneous Shopping Products  MRO Supplies
Shopping Products
Heterogeneous Shopping Products  Professional Services
Specialty Products  Installations
New Unsought Products
Unsought Products
Regular Unsought Products
PRODUCT LIFE CYCLE: Introduction, Growth, Maturity, Decline
CHAPTER 11: PLACE AND DEVELOPMENT OF CHANNEL
SYSTEMS
1. Direct >< Indirect channel (Strength – Weakness)
2. Discrepancy Quantity
3. Discrepancy Assortment
4. Channel relationship – conflict
5. VMS (vertical marketing system)
* List of keywords
6. Vertical – Horizontal
7. Market expose strategy
Intencive
Exclusive
Selective

Channel of distribution: any series of firms or individuals who participate in the flow of producer
to final user or consumer.
Place system is not automatic Decisions have long-run Product classes suggest
effects objectives

Reasons for choosing direct channels:

1. Greater control
2. Lower cost
3. Internet makes direct distribution easier
4. Direct contact with customer needs
5. Quicker response or change in Marketing Mix
6. Suitable middlemen not available
Direct marketing: Direct communication between a seller and an individual using a promotion
method other than face-to-face selling
More concerned with promotion than it is with distribution
Discrepancy of quantity: the difference between the quantity of products it is economical for a
producer to make and the quantity that consumers or users really want.
Discrepancy of assortment: the difference between the lines of products a producer typically
makes and the assortments final consumers or users want
Regrouping activities
Accumulating Bulk-breaking Sorting Assorting
Collecting products Dividing larger Seperating products Putting together a
from many small quantities into into the grades and variety of products to
producers smaller quantities qualities desired by give a target market
consumers what it wants
Horizontal marketing system:
Consumer MKT Channel: Producer  Wholesaler  Retailer  Consumer
Business MKT Channel: Producer  Manufacturer’s representatives or sales branch  Business
distributor  Business customer
Vertical marketing system
Type of channel
Characteristics Vertical marketing systems
Traditional
Administered Contractual Corporate
Amount of Little or none Some to good Fairly good to Complete
cooperation good
Control None Economic power Contracts One company
maintained by and leadership ownership
Typical General Electric McDonald’s Florshein
Examples
“independents”

Market exposure strategies:

Intensive Selective
Attributes Exclusive Distribution
Distributions Distributions
Sell it where ppl buy it Sell it where it can sell Sell it throught 1
best middlemen in 1
geographic area
Wide spread market Moderate market Prestige image, channel
coverage, channel coverage, solid image, control loyalty, prices
Objectives acceptance, high some channel control stability and high
volume sale and high and loyalty, good sales margins
profits and profits
Many in number, all Moderate in number, Few in number, well
Resellers type of firms (outlets) well established better established, reputable fir
firms (outlets) outlets (outlets)
Many in number, Moderate in number, Fewer in no., trends
Customers
convenience oriented brand conscious, setters, willing to travel
(final
somewhat willing to to store, brand loyal
consumers)
travel to store
Major Limited channel Maybe difficult to Limited sales potential
weakness control crave out niche
Mass advertising, Promotional mix, Personal selling,
Marketing nearby location, items pleasant shopping pleasant shopping
emphasis in stock condition, good condition, good services.
services
 CHAPTER 14: PROMOTION-INTRODUCTION TO
INTERGRATED MARKETING COMMUNICATIONS
1. Promotion method
2. Intergrated marketing communication (IMC)
3. Blend
* List of keywords 4. Promotion objective
5. Communication process
6. Push-Pull
7. The adoption curve and product life cycle

Promotion method:

Aimed at final consumers or Aimed at middlemen Aimed at company’s own

users sales force
 Contests  Price deals  Contests
 Coupons  Promotion allowances  Bonuses
 Aisle displays  Sales contests  Meetings
 Samples  Calendars  Portfolios
 Trade shows  Gifts  Displays
 Point-of-purchase  Trade shows  Sale aids
materials  Meetings  Training materials
 Banners and streamers  Catalogs
 Frequent buyer  Merchandising aids
programs  Videos
 Sponsored events
Integrated Marketing Communications:
Sales managers: are concerned with managing personal selling
Advertising managers: manage their company’s mass-selling effort – in television, newspapers,
magazines, and other media
Sales promotion managers: need many talents, manage their company’s sales promotion effort
Marketing managers: talks to all, blends all
Promotion Objectives Adoption Process AIDA
Awareness Attention
Informing
Interest Interest
Evaluation
Desire
Persuading Trial
Decision
Action
Reminding Confirmation

Traditional Communication process:

Customer – initiative interactive communication:

 PRODUCTS

CUSTOMERS

The adoption curve:

 CHAPTER 15: PERSONAL SELLING AND CUSTOMER
SERVICE
1. 3 basic sales tasks: Order getting (Order getter)
Order taking (Order taker)
Supporting (Supporter)
2. Customer service: Sales department
Marketing department
3. Sale people: Selecting
* List of keywords Training
Organizing
4. Compensation plan
5. 3 types of sales presentation
Prepared approach
Consultative selling approach
Selling formula approach

Order getter:
 Activity:  Skills:
 Establish relationship with customers  Well-manners
 Developing new business  Problem solving
 Work with distributions  Communication
 Seeking possible buyers  Negotiate
 Sell (little)  Have insight
 Presenting
 Understand about product
Order taker (work with customer data):
 Activity:  Skills:
 Maintain customer relationship  Problem solving
 Well-trained (good serving)  Good serving
 Problem solving, critical mind,  Well-trained
observing  Flexibility
 Direct sell/service, need experience,  Observing
transaction  Critical mind
 Handle complain, crisis,…
 Sales transactions, selling routine
Supporting (provide training for order getter & taker):
1. Missionary sales people
2. Technical specialist
3. Customer service reps (for mkters not sales)
Customer service: solves problems after a purchase, part of promotion, reps are customer
advocates.
Compension plan:
Level of compensation Method of payment Straight salary
Straight commission
Combination plan

Three presentation approaches:

 CHAPTER 16: ADVERTISING AND SALES PROMOTION
1. Ads objectives
2. Kind of advertising
Institutional Pioneering
* List of keywords Competitive
Product Reminder
3. Medium – message
4. Types of sales promotion

Advertising objectives:
1. Position brands 5. Support sales force
2. Introduce new products 6. Get inmmediate action
3. Obtain outlets 7. Maintain relationships
4. Ongoing contact
Choosing the “Best” Medium – How to deliver the message, depending on:

 Promotion objectives
 Target market characteristics
 Funds available
 Nature of the media
Types of sales promotion:
 Sales promotion for final consumers or users
 Developing materials to be displayed in retails’ stores, inluding banners, sample packages,
calendars,…
 Sweepstakees contests as well as coupons,..
 Sale promotion for intermediaries – trade promotion
 Price-related matters
 Sales promotion for own employees