- Example: When investor build wind electricity plant for supplying electricityto customers, furthermore it is not polluted environment. Question 2 : Explain various concepts of marketi
Bài tập về Marketing tổng hợp – ví dụ minh họa CONTENT Question 1: Explain the following: 1.1 Production concept is a concept where goods are produced without taking into consideration the choices or tastes of your customers It is one of the earliest marketing concepts where goods were just produced on the belief that they will be sold because consumers need them - Example: In Vietnam, There are many kind of shoes from another countries, but Vietnamese business still product shoes because it is cheap and they think that customer will buy it in the future 1.2 Product line: It is a group of products which are related and offered and manufactured by a single company One company can offer more than one product line This helps to enhancing the business by adding items to the product line which is already established As people are already familiar with the brand and there are more chances of a purchase - Example: Iphone product line are Iphone 3, 3S, 4, 4S, 5, 5S and iphone 6 Those are product lines that Apple was producted 1.3 Augmented product: involves deciding the additional intangible benefits that a product can offer Competition at augmented product is based around after sales service, help lines, warranties, free/cheap delivery and so on In other words it is things that the product does not do but customers may find them useful Intangible benefits such as product warranties offer customers peace of mind and demonstrate the manufacturer has faith in the quality of its product In fact the ubiquitous use of some augmented benefits have turn some augmented product benefits into a customer expectation for example customers expect cars to have manufacturer warranties 1.4 Social marketing concept: Societal marketing concept is the marketing concept whereby a firm believes in giving back to the society by satisfying the needs, wants, and interests of the target markets and delivering the needed satisfactions This must be done more effectively and efficiently to enhance the consumer's and the society's well-being - Example: When investor build wind electricity plant for supplying electricity to customers, furthermore it is not polluted environment Question 2: Explain various concepts of marketing with suitable examples 2.1 The Production Concept: Holds that consumers will favor products that are available and affordable + Implies work towards mass production and low cost For example, nowaday manufacturers apply modern technology to create lot of product, then they bring out large quatities of products and flood the marketplace Customers easily find and purchase products with low price 2.2 The product concept: Assumes customers favor products that offer the most quality, performance, and features + Implies firm should strive to continually upgrade product and product features 2.3 The selling concept: Inside-out perspective: Assumes people need to be sold on whatever it is the firm has decided to offer 1st: Decide what to produce; 2nd: Figure out how to get people to buy what you have + Implies lots of selling/promotional activities are needed to move product 2.4 The marketing concept: - Holds that achieving organizational goals depends upon knowing the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than do competitors - Production and product concepts, if appropriate, follow this concept 2.5 Marketing concept component: - Means of achieving goals, knowing needs and wants Implies research and/or appropriate assumptions 2.6 Target markets: Implies clear target groups: people whose needs/want you will try to fill - Satisfaction - Competitors acknowledged Question 3: Explain market segmentation with suitable examples Market segmentation is an integral part of a company's marketing strategy It is the process of breaking down a larger target market into smaller, more homogeneous groups of customers that you can more efficiently market to Both consumer-oriented and business-oriented companies should segment customers using one of several common approaches 3.1 Demographic Demographic market segmentation is one of the most common approaches to segmenting markets With this strategy, a company simply divides the larger market into groups based on several defined traits Age, race, gender, marital status, occupation, education and income are among the commonly considered demographics segmentation traits Example: A company that sell shaver beard, they must concentrate on male market segment or the rich are often used by Luis Vuiton products, 3.2 Geographic Geographic segmentation is used by companies that sell products or service specific to a certain community, state, region, country or group of countries Local businesses usually get no benefit in paying for national or international advertising Companies that operate nationally can often save by delivering the same marketing messages to a national audience through one television, radio, magazine or newspaper ad Global businesses typically decide whether to maintain a universal message or tailor messages to each country's marketplace 3.3 Psychographics Psychographics or lifestyle segmentation has become increasingly common as companies look to identify consumers based on interests and activities in lieu of demographics As an example of this strategy's benefits, consider the lifestyle of an outdoor adventurer Camping enthusiasts, for instance, typically have few consistent demographic traits Campers are a diverse group Thus, marketers would likely target a segment of outdoor hobbyists or campers for new camping equipment through outdoor programs or magazines 3.4 Behavioral Behavioral segmentation is based on user behaviors, including patterns of use, price sensitivity, brand loyalty and benefits sought A company may have customers with a similar demographic makeup but distinct behavioral tendencies Some may use the product daily, while others use it weekly or monthly Higher-income earners may have more interest in higher-quality models versus low-cost models This may prompt the provider to target higher-end products and services to one group and more value-oriented offerings to lower-income or budget-conscious customers 3.5 Business Segmentation Segmenting for business customers often has overlap but commonly includes geographic, customer type and behavior-based strategies Geographic business segmentation is similar to that with consumer segmenting Customer type segmenting may include business size or the nature of the business Banks, for instance, often have different products for small versus large businesses Behavioral segmenting is based on repeat or loyal customers versus one-time users Question 4: “PLC as a tool for marketing strategy" justify 4.1 Product Life Cycle: - Product Life Cycle is the stages that products go through from development to withdrawal from the market - As consumers, we buy millions of products every year And just like us, these products have a life cycle Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are launched - Because most companies understand the different product life cycle stages, and that the products they sell all have a limited life span, the majority of them will invest heavily in new product development in order to make sure that their businesses continue to grow 4.2 Product Life Cycle (PLC): - Each product may have a different life cycle PLC determines revenue earned, moreover it contributes to strategic marketing planning and may help the firm to identify when a product needs support, redesign, reinvigorating, withdrawal, etc Since that time, manuacturers consider to make new product development planning and help in forecasting and managing cash flow 4.3 The Stages of the Product Life Cycle: The product life cycle has very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products It includes the stages below: - Development - Introduction/Launch - Growth - Maturity - Saturation - Decline - Withdrawal 4.3.1 The Development Stage: - Initial Ideas – possibly large number - May come from any of the following : o Market research – identifies gaps in the market o Monitoring competitors o Planned research and development (R&D) o Luck or intuition – stumble across ideas? o Creative thinking – inventions, hunches? o Futures thinking – what will people be using/wanting/needing 5,10,20 years hence? 4.3.2 Product Development: Stages - New ideas/possible inventions - Market analysis – is it wanted? Can it be produced at a profit? Who is it likely to be aimed at? - Product Development and refinement - Test Marketing – possibly local/regional - Analysis of test marketing results and amendment of product/production process - Preparations for launch – publicity, marketing campaign 4.3.3 Introduction/Launch: - This stage of the cycle could be the most expensive for a company launching a new product The size of the market for the product is small, which means sales are low, although they will be increasing On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector 4.3.4 Growth: - The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage 4.3.5 Maturity: - During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage 4.3.6 Saturation: - New entrants likely to mean market is ‘flooded’ - Necessity to develop new strategies becomes more pressing: - Searching out new markets: Linking to changing fashions Seeking new or exploiting market segments Linking to joint ventures – media/music, etc - Developing new uses - Focus on adapting the product - Re-packaging or format - Improving the standard or quality - Developing the product range 4.3.7 Decline and Withdrawal: - Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage This shrinkage could be due to the market becoming saturated (i.e all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets - Decision to withdraw may be dependent on availability of new products and whether fashions/trends will come around again? Product Life Cycle Examples It’s possible to provide examples of various products to illustrate the different stages of the product life cycle more clearly Here is the example of watching recorded television and the various stages of each method: 1 Introduction - 3D TVs 2 Growth - Blueray discs/DVR 3 Maturity - DVD 4 Decline - Video cassette The idea of the product life cycle has been around for some time, and it is an important principle manufacturers need to understand in order to make a profit and stay in business However, the key to successful manufacturing is not just understanding this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle Question 5: Explain “direct marketing" and its applicability with examples Direct marketing is a form of advertising in which physical marketing materials are provided to consumers in order to communicate information about a product or service Direct marketing does not involve advertisements placed on the internet, on television or over the radio Types of direct marketing materials include catalogs, mailers and fliers 5.1 Direct Marketing Benefits: Buyers - Convenient - Easy to use - Private - Access to a wealth of information - Immediate - Interactive 5.2 Direct Marketing Benefits: Sellers - Building relationships - Targeting of small groups or individuals with customized offers in a personalized fashion - Access to buyers that couldn’t be reached via other channels - Low-cost, effective alternative for reaching specific markets 5.3 Customer Databases & Direct Marketing Databases include customer profile, purchase history, and other detailed information Databases can be used to identify prospects, profile customers, and select customers to receive offers, and to build relationships Example: In the supermarket, when you bought products the sellers provide member card and they will discount on the next purchase Of course, you must provide your personal information to them 5.4 Forms of Direct Marketing 5.4.1 Telephone Marketing: Telephone marketing can offer several advantages more than other forms of marketing We can talk to the customer directly and ask questions to evaluate their needs and answer queries and objects Telephone sales calls to customers at home, however, they are often seen as an unwelcome interruption You should consider before you use telephone marketing You risk alienating customers and you could damage your company's reputation 5.4.2 Direct-Mail Marketing: Direct marketing is a perfect opportunity to get your company's name in the hands of customers who want to hear about your latest products, services, and coupons New trends include fax, mail, e-mail, and voice mail 5.4.3 Catalog Marketing: Catalog marketing is a sales technique used by businesses to group many items together in a printed piece or an online store, hoping to sell at least one item to the recipient Consumers buy directly from the catalog sender by phone, return envelope or online using information in the catalog Some catalog marketers act as intermediaries between consumers and manufacturers, while businesses with more than a few items create their own catalogs Examples include manufacturers of apparel, footwear, sporting goods, kitchen accessories, auto parts, home furnishings, lawn and garden items, health, beauty and food items The manufacturer might group similar products to allow consumers with a specific interest to quickly find what they want, or they might spread items throughout the catalog to make shoppers view more items, hoping to increase impulse buys The manufacturer processes the orders, ships the items and handles customer service, cutting out the cost of wholesalers or distributors 5.4.4 Direct-Response Television Marketing Direct-response advertising Infomercials Home shopping channels Example: You can invite famous experts talking about your products on the television 5.4.5 Kiosk Marketing: Some companies place information and ordering machines (called kiosks) in stores, airports, and other locations (in contrast to machines which dispense products vending machines) Business marketers can also use kiosks (such as at trade shows) Kiosks are also going online as companies merge real-world and virtual worlds of commerce The Gap interactive kiosk is a great example of this technology For example, a local newspaper might set up a kiosk at a grocery store to try to sign up new subscribers Similarly, credit card companies often set up kiosks in airports to seek new customers for a credit card that offers frequent-flyer miles REFERENCES: 1 www.marketingchienluoc.com 2 http://www.thefreedictionary.com/ 3 http://www.managementstudyguide.com/ 4 http://www.learnmarketing.net/