MARKETING

Group 6
I. VOCABULARY
 What is Marketing?
According to the social definition, marketing is societal process by
which individuals or groups obtain what they need and want
through creating, offering, exchanging products and services of
value freely with others.
…... is a physical location of buyer and seller
interaction.

A. Marketplace

B. Marketspace
...... can be defined as the information and communication
technology based electronic or online exchange environment.

A. Marketplace

B. Marketspace
Which one is
Marketplace?
Marketspace?
 - Needs: The basic
human requirements (air,
food, water, clothing, and
What is the difference shelter to survive as well
between Needs, Wants, as recreation, education,
and Demands? and entertainment)

-> being directed to

specific objects that
might satisfy the need:
Wants

-> people have an ability

to pay for these specific
products: Demands
 p h ic
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4 TYPES OF MARKET
Beh
SEGMENTATION
 What is
Marketing Research?
The process of gathering, analyzing and
interpreting information about a market,
about a product or service to be offered for
sale in that market, and about the past,
present and potential customers for the
product or service; research into the
characteristics, spending habits, location
and needs of your business's target market,
the industry as a whole, and the particular
competitors you face.
 What is Brand?

Brand is a name, symbol or design (or some combination) that

identify a product.
MEMORY
GAME
1 2 3

4 5 6

7 8 9
...... deliver and receive messages from
target buyers and include newspapers,
magazines, radios, television, mail,
telephone, billboards, posters, fliers,
CDs.

A. Communication channels

B. Distribution channels

C. Service channels
...... to carry out transactions with potential buyers. ......
includes warehouses, transportations companies, banks, and
insurance companies that facilitate transactions.

A. Communication channels

B. Distribution channels

C. Service channels
...... to display, sell, or delivery the
physical products or service to the
buyer or user. They include
distributors, wholesalers, retailers and
agents.

A. Communication channels

B. Distribution channels

C. Service channels
B. Vocabulary
• Match the terms with their definition
1. distribution channel 2. to launch a product 3. market opportunities 4. market research 5. market segmentation

6. packaging 7. points of sale 8. product concept 9. product feature 10. sales representative

A. all the companies or individuals involved in moving a particular good

or service from the producer to the consumer

C. READING
• Match the terms with
their definition
Distribution channels can include distributors,
wholesalers, retailers, and agents. They can
be short or long, and depend on the number of
intermediaries required to deliver a product or
service.
 2. to launch a product 3. market opportunities 4. market research 5. market segmentation

6. packaging 7. points of sale 8. product concept 9. product feature 10. sales representative

B. an idea for a new product, which is tested with target consumers before
the actual product is developed

C. READING
• Match the terms with
their definition
A business may create a written description, graphic
drawing, short video or prototype of the proposed
product. If the product concept's testing phase is
successful, the company may begin producing and
selling the product.
 2. to launch a product 3. market opportunities 4. market research 5. market segmentation

6. packaging 7. points of sale 9. product feature 10. sales representative

C. attributes or characteristics of a product: quality, price, reliability, etc

In business, a product feature is one of the distinguishing

characteristics of a product or service that helps boost its
appeal to potential buyers, and might be used to
C. READING formulate a product marketing strategy that highlights the
• Match the terms with usefulness of the product to targeted potential consumers.
their definition
 2. to launch a product 3. market opportunities 4. market research 5. market segmentation

6. packaging 7. points of sale 10. sales representative

D. dividing a market into instinct group of buyers who have different

requirements or buying habit

C. READING
• Match the terms with
their definition
 2. to launch a product 3. market opportunities 4. market research
6. packaging 7. points of sale 10. sales representative

E. Places where goods are sold to the public-shops, stores, kiosks, market,
stalls, etc.

C. READING
• Match the terms with
their definition
When implemented correct, a point of sale campaign can be
used to build meaningful customer experiences, create brand
awareness and generate an uplift in sales naturally.
 2. to launch a product 3. market opportunities 4. market research
6. packaging 10. sales representative

F. possibilities of filling unsatisfied needs in sectors in which a company

can profitably produce goods or services

In order to identify market opportunities, the business must

be evaluated by identifying consumers and companies and
other factors such as brand value propositions, direct and
C. READING indirect competitors, supply chains, existing regulations and
• Match the terms with the general environment.
their definition
 2. to launch a product 4. market research
6. packaging 10. sales representative

G. someone who contacts existing and potential customers and tries to

persuade them to buy goods or services

C. READING
• Match the terms with
their definition
Sales representatives may be under considerable pressure to
meet sales quotas, and their income may be directly dependent
on their work performance.
 2. to launch a product 4. market research
6. packaging

H. collecting, analysing and reporting data relevant to a specific market

situation (such as a proposed new product)

This method allows organizations or businesses to discover their

target market, collect and document opinions and make
informed decisions. Market research can be conducted directly
C. READING by organizations or companies or can be outsourced to agencies
• Match the terms with which have expertise in this process.
their definition
 2. to launch a product
6. packaging

I. to introduce a new product onto the market

C. READING
• Match the terms with
their definition
 6. packaging

J. wrappers and containers in which product are sold

C. READING
• Match the terms with
their definition
Effective packaging can actually help a
company attract consumers to their product. It
can be the tool that sets apart their product in
a vast sea of options that the consumer has at
their disposal.
C. Reading
• Vocabulary
• Reading comprehension task
 market opportunity (noun)
newly identified need, want, or demand trend
that a firm can exploit because it is not being
addressed by the competitors.

market research (noun)

the collection and study of information about what people prefer
to buy, how they react to advertising, and what other businesses
in the same industry are doing

C. READING
• Vocabulary According to Business Dictionary
 market segment market segmentation
a group of possible the sub-dividing of market into
customers who are similar homogeneous sub-sections of
in their needs, age, customers, where any sub-section
education, etc. may conceivably be selected as a
market target to be reached with a
distinct marketing mix

C. READING
• Vocabulary According to Philip Kotler
 market segmentation
vs. market segment?
the former is the process, whereas the latter is the result. in
order to create market segments, the business needs to go
through the process of market segmentation.

C. READING
• Vocabulary
 1. Which paragraph most accurately summarizes the text?
2nd summary
(1) The marketing concept has now completely replaced the
old-fashioned selling concept. (2) Companies have to identify
and satisfy the needs of particular market segments. (3) A
product’s features are often changed, as are its price, the places
in which it is sold, and the way in which it is promoted. (4)
More important than the marketing of consumer goods is the
marketing of industrial or producer goods.

C. READING
• Reading comprehension tasks
 2nd summary

(1) The marketing concept has now completely replaced the

old-fashioned selling concept

In the first paragraph:

Selling concept Marketing concept

• To persuade consumers to by • To find wants and fill them
non-essential products or • To anticipate and create new
services ones

C. READING
• Reading comprehension tasks
 2nd summary

(2) Companies have to identify and satisfy the needs of

particular market segments

The second
paragraph: […] Once a target market has been
identified, a company has to decide what
goods or services to offer

C. READING
• Reading comprehension tasks
 2nd summary

(3) A product’s features are often changed, as are its price, the
places in which it is sold, and the way in which it is promoted

The fourth paragraph:

[…] Once a the basic offer has been established, the company
has to think about the marketing mix. The best well-known
classification is the ‘4Ps’: Product, Place, Promotion and Price

C. READING
• Reading comprehension tasks
 2nd summary

(4) More important than the marketing of consumer goods is

the marketing of industrial or producer goods

The fifth paragraph:

Producer market
• raw materials
• manufactured parts
Consumer market • components
• capital equipment
• supplies
C. READING
• Reading comprehension tasks
 2. Which diagram best illustrates a company that has adopted the marketing
concept?
Answer: C

At its core, marketing is

all about creating
customer value and Customer Then the company designs a
profitable customer marketing program – the 4Ps
relationships – that delivers the intended
value to target consumers

C. READING
• Reading comprehension tasks
D. Exercise 1
• Marketing Mix
• Categorize aspects according to ”4P’s”
 WHAT IS MARKETING MIX?
Set of marketing tools that the firm uses to pursue its marketing objectives in the target market

PRODUCT: an item that is built or produced to

satisfy the needs of a certain group of people

PRICE: the amount that a customer pays for to enjoy

it
PROMOTION: Promotion includes advertising,
public relations, and promotional strategy.

D. EXERCISE 1 PLACE: position and distribute the product in a

• Categorize place that is accessible to potential buyers
PRODUCT
A product can be classified as tangible or intangible.
• A tangible product is a physical object that can be perceived by touch such as a building, vehicle, or gadget
• An intangible product is a product that can only be perceived indirectly such as services, or ideas, intellectual property, insurance
policy, etc.
PRICE

A business can adopt new pricing strategies for several

reasons:

• to try to break into a new market

• to try to increase its market share
• to try to increase its profits
• to make sure all its costs are covered and particular
profit is earned
PROMOTION
Promotion in the marketing mix refers to communication with the specific objective of informing, persuading and
remembering a target audience, including smaller factors:

1. Sales organization
2. Public relation
3. Advertising
4. Sales promotion
PLACE

To maximize sales and reach out to larger audiences, it

is very important for business to be “visible” to potential
customers.
Exercise 1
Categorize the following aspects of marketing accorfing to well-
ç
known “4P’s” clasiffication of the marketing mix – PRODUCT,
PRICE, PROMOTION and PLACE

D. EXERCISE 1
• Categorize
Words Explanation
Product: Price:
Optional features, after-sale service, Credit terms, list price, payment period,
packaging, poster, brand name, quality, prestige pricing, cash discount, costs, quantity
guarantee, production, sizes, style discounts.

Place: Promotion:
Inventory, market coverage, distribution Advertising, point of sales, free sample, market
channel, transportation, vending machines, penetration, market skimming, mailings,
ware housing, media plan, personal selling, public relations,
retailing, publicity.
 Exercise 2:
Types of marketing
Conversional
Marketing
is the difficult task of Analyze the reasons for this dislike and to find
out whether the marketing program consisting
reversing negative demand
of product redesign, price reduction or more
positive promotion that could change the
Negative demand - This occurs when a customers’ beliefs and attitudes.
major part of the market dislikes the
product and may even pay a price to
avoid it
 Stimulational
Marketing
is necessary where there is no demand
No demand – There may be a situation where
the target market be uninterested or indifferent
to the product.

Transform no demand into positive demand by

finding out the connection between the
products/services and people’s needs or
interests
 Developmental
Marketing
involves developing a product or service for
which there is clearly a latent demand.
Latent demand - Many consumers may share a strong
need that cannot be satisfied by any existing product.
That creates potential market which is worthy
developing.

Idea Research Develop Test Analyze Intro

 IDO STUDIOWEAR
Remarketing
Involves revitalizing falling demand
Analyze the causes of market decline and determine
whether demand can be re-stimulated by finding new
target markets, changing the products features or
developing more effective communication. So, bringing
back the demand that has gone down
Synchromarketing
Synchro
Involves altering the times pattern of
irregular demand.

Irregular demand - that varies on a seasonal, daily, or

even hourly basis, causing problems of idle capacity
or overworked capacity.

Ex: Restaurants give discounts (happy hours, early

bird dinners, etc.) during the time between lunch and
dinner so that there is less load during the late hours
and the demand and supply balance is matched.
Maintenance
Marketing
It is the promotional activity done to maintain
the product’s market share in the market. That
is a matter of retaining a marketing is carried out to ensure that the
current (may be full) level customers remember the brand name, product
of demand or service, ensures that the existing customers
reuse the products and it also attracts new
customers.
Full demand- This is an ideal
situation .Organizations face full
demand when they are satisfied
with their volume of business.
Demarketing
Is the attempt (by governments rather than
private businesses) to reduce overfull demand,
permanently or temporarily.

Selective demarketing consists of trying to

reduce the demand coming from those parts of
the market that are less profitable or less in
need of the service. De-marketing does not
aim to destroy demand but only reduce its
level, temporarily or permanently.
Counter-marketing

IDO STUDIOWEAR
is the attempt to destroy unwholesome
demand for products that are considered
undesirable.
Unwholesome demand (~ Unhealthy demand) require
organized efforts to discourage the consumption. The
marketing task is to help people give up the habit by using
such tools as fear communications, price hikes, and reduced
availability.
 Coversional Marketing .1 a. A non-polluted and fuel-efficient car.
b. Cigarettes, drugs, handguns or extremist political
Stimulational Marketing .2
parties.
Developmental Marketing .3 c. For churches, inner city areas or ageing film stars.
d. For some roads and bridges during rush hours.
Remarketing .4
e. For public transport during rush hours, or ski resorts
Synchromarketing .5 in the summer.
f. For dental work, or hiring disable people.
Maintenance Marketing .6
g. In the face of competition or changing tastes.
Demarketing .7 h. Which often happens with new products or services.

Counter-marketing .8
 EXERCISE
3:actions with the eight tasks described before
Match up these marketing
 i.Alter the pattern of demand through flexible pricing,
promotion, and other incentives.
1. Conversional marketing j.Connect the benefits of the product with people’s needs and
interests.
2. Stimulational marketing k.Find new target markets, change product features, develop
more effective communication
3. Developmental marketing l.Find out why people dislike the product, and redesign it,
lower prices, and use more positive promotion.
4. Remarketing
m.Increase prices, reduce availability, make people scared.
5. Synchromarketing n. Keep up or improve quality and continually measure
consumer satisfaction.
6. Maintenance marketing o. Measure the size of the potential market and develop the
goods and services that will satisfy it.
7. Demarketing
p.Raise prices, reduce promotion and the level of service.
8. Countermarketing

EXERCISE 3
 i. Alter the pattern of demand through flexible pricing,
promotion, and other incentives
j. Connect the benefits of the product with people’s needs and
interests.
1. Conversional
marketing is the k. Find new target markets, change product features, develop
difficult task of more effective communication
reversing negative l. Find out why people dislike the product, and redesign it,
demand, eg. for lower prices, and use more positive promotion.
dental work, or
hiring disable m. Increase prices, reduce availability, make people scared.
people.
n. Keep up or improve quality and continually measure
consumer satisfaction.

o. Measure the size of the potential market and develop the

goods and services that will satisfy it.

p. Raise prices, reduce promotion and the level of service.

 Example: People avoid
seeing the dentist

Use marketing to have a rational,

calming dialogue with customers about
the importance of dental hygiene and
how the dentist is professional and
painless.

EXERCISE 3
 i. Alter the pattern of demand through flexible pricing,
promotion, and other incentives
j. Connect the benefits of the product with people’s needs and
interests.
2. Stimulational k. Find new target markets, change product features, develop
marketing is Task of converting no-demand into positive
more effective communication
necessary where demand.
there’s no demand, Make a discussion with prospect about the
which often usefulness and productivity gained through the
happens with new
products and m.product.
Increase prices, reduce availability, make people scared.
services.
n. Keep up or improve quality and continually measure
consumer satisfaction.

o. Measure the size of the potential market and develop the

goods and services that will satisfy it.

p. Raise prices, reduce promotion and the level of service.

 i. Alter the pattern of demand through flexible pricing,
promotion, and other incentives

3. Developmental
marketing involves k. Find new target markets, change product features, develop
developing a more effective communication
product or service
for which there is
clearly a talent
demand, eg. A
non-polluting and m. Increase prices, reduce availability, make people scared.
fuel-efficient car.
n. Keep up or improve quality and continually measure
consumer satisfaction.

o. Measure the size of the potential market and develop the

goods and services that will satisfy it.

p. Raise prices, reduce promotion and the level of service.

 Example: Develop demand for
electronic car

Use developmental marketing –

develop a marketing mix that
announces the product and stimulates
demand for trial.

EXERCISE 3
 i. Alter the pattern of demand through flexible pricing,
promotion, and other incentives

k. Find new target markets, change product features, develop

4. Remarketing more effective communication
involves
revitalizing falling
demand in the face
of competition or
m. Increase prices, reduce availability, make people scared.
changing tastes
n. Keep up or improve quality and continually measure
consumer satisfaction.

p. Raise prices, reduce promotion and the level of service.

 Consumers find either no use for
the product or better alternatives
in the market. Actions are done
to recreate the demand.

EXERCISE 3
 i. Alter the pattern of demand through flexible pricing,
promotion, and other incentives

5. Synchromarketing
involves altering the
times pattern of
irregular demand, eg.
For public transport
between rush hours,
or for ski resorts in m. Increase prices, reduce availability, make people scared.
the summer.
n. Keep up or improve quality and continually measure
consumer satisfaction.

p. Raise prices, reduce promotion and the level of service.

 EXAMPLE
Restaurants
Develop a marketing
giving discounts
mix
(happy
that shifts
hours,
demand
early bird
from
dinners,
heavy usage
etc.) during
periodsthe
to time
between
periods lunch
with more
and dinner so
that
availability.
there is less load during the
late hours and the demand and
supply balance is matched

EXERCISE 3
6. Maintenance
marketing is a matter
of retaining a current
Develop a marketing mix that reinforces and
(may be full) level of
reminds customers why they follow or are loyal
demand, eg. For
to the
m. Increase prices, reduce brand. make people scared.
availability,
churches, inner city
areas, or ageing film
stars. n. Keep up or improve quality and continually measure
consumer satisfaction.

p. Raise prices, reduce promotion and the level of service.

7. Demarketing is the
attempt (by
governments rather
than private
businesses) to reduce
overfull demand,
permanently or
temporarily, eg. For m. Increase prices, reduce availability, make people scared.
some roads and
bridges during rush
hours.

p. Raise prices, reduce promotion and the level of service.

8. Countermarketing is
the attempt to destroy
unwholesome demand
for products that are
considered undesirable,
eg. Cigarettes, drugs,
handguns, or extremist m. Increase prices, reduce availability, make people
political parties. scared.
 Example: Excessive Beer
Consumption
Trying to destroy this prevailing
demand.
=> Increase prices, reduce availability, make
people scared.

EXERCISE 3
FILL IN
THE

EXERCISE 4
 FILL
IN THE
advertising budgets Persons or companies
that starts to use a
early adopters new product or service
similar offerings
the products and services that
consumer tastes
consumers consciously choose
making a loss over others
withdrawn from the
market
the state when no more of
differentiate products something can be absorbed,
reaches saturation combined with, or added
advertising budgets The classic product life cycle is
Introduction, Growth, Maturity
early adopters and Decline. In the introduction
stage the product is prompted to
similar offerings create awareness. It has low sales
consumer tastes and will be (1)…………………..
making a loss
…….. If the product has few
making a loss competitors, a skimming price
withdrawn from the strategy can be used (a high price
market for (2)…………………..……
early adopters
differentiate products which is then gradually lowered).

reaches saturation
advertising budgets In the Growth phase sales are
rising rapidly and profits are high.
early adopters
However, competitors are attracted
similar offerings to the market with (3)
similar offerings
……………………………………
consumer tastes .
making a loss The market is characterized by
withdrawn from the alliances, joint ventures and
market takeovers.
Advertising(4)
budgets

……………………................ are
differentiate products large and focus on building the
reaches saturation brand.
advertising budgets In the Maturity phase sales
growth slows and then
early adopters
stabilizes. Producers attempt
similar offerings to (5)
differentiate products
consumer tastes ………………………………
making a loss
…….… and brands are key to
this. Price wars and
withdrawn from the
market competition occur as the
market (6)
differentiate products
………………………………
reaches saturation

reaches saturation ………

advertising budgets In the Decline phase there is a
downturn in the market. The
early adopters
product is starting to look old-
similar offerings fashioned or (7)
consumer tastes ………………………..…….
haveconsumer
changed.tastes
There is intense
making a loss
price-cutting and many
withdrawn from the
market
products are (8)
………………………………..
differentiate products withdrawn from the market
reaches saturation
E. EXTENSION
ACTIVITIES
BOSTON
MATRIX

• Information
• Small case
 WHAT IS THE BOSTON MATRIX?

The Boston Matrix is a more informal

marketing tool used for product portfolio
analysis and management, developed by the
Boston Consulting Group in the early 1970s.

It considers the degree of market share and

market growth and helps identify where best to
use resources to maximize profit from a product
management perspective.

DEFINITION
Market share represents the
percentage of the total market
achieved by an organization and is
measured in terms of revenue or
unit volume.

A higher share of the market

higher cash earnings.
means …………
Market growth reflects the
attractiveness of a market.
DOGS:
They tend to absorb cash
rather than generate it and
are developing in a slow
growing industry.

The question for managers is:

Whether the investment
currently being spent on
keeping these products alive
could be spent on making
something that would be more
profitable.
CASH COWS:
These units usually generate
cash in excess but
opportunities or new
investments are limited.

The aim for managers

is:
To invest in them to
maintain current levels
of productivity.
QUESTION MARKS:
These are products or units
that grow rapidly and
consume a high amount of
resources, but generate low
cash.

The question for managers is:

whether these products have the
potential to grow more and thus
making more investment in them.
STARS:
Stars represent the
ideal combination for a
company. It is usually
exclusive products or
products first appeared on
the market.

The aim for managers is:

To invest more in these products
to maintain the leading market
status.
The natural cycle of the
business usually starts as
question mark which
…………………….
eventually grows and
star
becomes a …………...
Afterwards, as industries
mature and growth slows,
they become a …………………
cash cow
dog
or end up as a ………….

The natural cycle of

the business
PURPOSE OF
BOSTOM MATRIX
4 STRATEGIES
Companies can have a clear and - Build market share
simple view of how they should
screen opportunities and identify - Hold or maintain the same status
where it is best to invest their - Harvest
financial resources, time and
efforts. - Divest

PURPOSE
SMALL CASE
SBU Market Market Relative Sale Revenue
(Strategic share of share of market growth in (Trillion
Business SBU (%) competitors share in the Dong)
Unit) (%) the industry
industry (%)
(%)

Liquid milk 50 33 1.52 21 9296.55

Powdered 30 24 1.25 23 7702.86

milk

Condensed 75 25 3.00 10 4515.47

milk

* Collected data from Vinamilk

 SBU Market Market Relative Sale Revenue
share of share of market growth (%) (Trillion
SBU (%) competitors share (%) Dong)
(%)

Liquid milk 50 33 1.52 21 9296.55

Powdered 30 24 1.25 23 7702.86

milk powdered milk
Condensed
milk
75 25 3.00 10 4515.47 liquid milk

condensed milk
 Powdered milk
(Question marks)
• Vinamilk powdered milk accounts for 30% market share but it is mainly in
rural areas.
• In big cities, the market share of Vinamilk powdered milk has to face a big
competition from foreign dairy companies.
• Vinamilk powdered milk group is increasingly diverse to meet the actual
needs of different customer segments and target customers (children,
pregnant women, the elderly,… ).

SOLUTIONS • continue investing

• promoting marketing activities
• developing new product lines
• positioning the product line in
the low price segment
 Liquid milk
(Question marks)
• Liquid milk continues to be the key product, accounting for the
largest proportion of Vinamilk's total revenue.

SOLUTIONS

• Focusing on investing
• Promoting effective marketing
strategies
• Improving product lines
Condensed milk
(Cash cows)

• Vinamilk condensed milk appeared quite early and still has a

certain position in the market.

SOLUTIONS

• Continuing investing
• Promoting products aimed at
popular customers and the way
of distributing products
FOR YOUR LISTENING