There are no longer keyfactors that consumers need to consider when buying decision.b Product line: Trang 2 narrow product line when the company found that some types of products does n
Trang 1Chuyên đề Sản phẩm – dịch vụ trong Marketing
C ONTENT
1 Explain the following:
(a) Production concept:
Manufacturing philosophy holds that consumers will favor products which are available for use and widely distributed at low cost Therefore, the marketing management should focus on boosting manufacturing and distributing products
Points about the teenage consumer focused primarily on the availability and low price of the product often explained by two main reasons First, when demand for a product exceeds the supply, it is commonly in developing countries Buyers will pay much attention to getting the product to consumers rather than focus on the attributes economics of product quality Therefore, manufacturers will focus on increasing production scale to increase the desired sales volume and profitability Second is the high production costs and the need to reduce down, businesses seeking to increase production to achieve economies of scale and thereby expand the market
Henry Ford was one of the pioneers in producing marketing concepts Since
1900, he has focused its efforts on perfecting the mass production of automobiles in order to reach lower costs, so that more Americans can afford them This orientation is also a key strategy of many Japanese companies
However, this philosophy will be very difficult to implement if all provinces encounter situations that demand greater than supply capability, and low prices as well as the ease of shopping (due to widely distributed There are no longer key factors that consumers need to consider when buying decision
(b) Product line:
A group of products is closely related because they perform a similar function, sell the same customer groups through the same channel or create a specific price bracket Depending on market conditions, competition and the ability
of businesses makes decisions about product lines For example, the decision to
Trang 2narrow product line when the company found that some types of products does not guarantee satisfying customer needs , and it does not bring profitable for the business Or expand the business product line in order to increase product selection
to satisfy the needs of different customer groups Or modernized product line by eliminating the obsolete product categories , and introduce innovative new products It can be seen clearly through the products of electronic equipment manufacturers such as product line Iphone ,Ipad Apple or Samsung 's Galaxy lineup running Samsung's Android operating system with many products produced from secondary to higher level
(c) Augmented product:
Products of every business there are often differences in physical factors or psychological factors (depending on the characteristics of the industry , the views and the businesses that they focus on these factors in ways different ways) It can
be considered in three product levels: core product , product specific , incremental product
To increase customer awareness of product quality and customer satisfaction
of products , businesses often provide customers with the services and additional benefits such as warranty , installation , information , counseling , delivery , purchase credit They are considered as a component of the product contributes to the finished product Many companies produce cars or electronics use this extra element to increase competitiveness Or to ensure the growth and survival of business telecommunications world is now focused on improving and diversifying value added as video calls, music , Mobile TV & Video , Game , Network social ( social mobile networking) , search ( mobile search ) , mobile blogs , chat , email , mobile banking , mobile tickets , mobile advertising
(d) Social marketing concept:
Social marketing concept holds that the task now is to determine the needs, wants and interests of target markets and delivering satisfaction to expect a result and more efficient rivals competition , in a way trying to preserve or enhance the
Trang 3welfare of consumers and society Previously businesses put their marketing decisions based on the fundamental calculations of profit before his eyes Then they realize the importance of the long term to satisfy the wishes of our customers and this has led to marketingphilosophy Today they started putting factor in social benefits to the business decision making of enterprises
Social marketing concept arises from the suspicion that pure marketing philosophy has established a business philosophy that would be appropriate or not? during the times of environmental pollution , resource depletion , overpopulation and lack of social service work In the realization, serve and satisfy the same requirements, whether business has always been based on the long-term benefits of good consumer and society or not ? Purely a marketing philosophy can dismiss the conflict between desire immediate and long-term happiness of the consumer
Social marketing concept requires marketers to balance three objectives when designing the marketing policy: customer satisfaction, contribute to the achievement of corporate profits and ensure social welfare Thus, marketing activities will be significantly better with the longer-term benefits
2 Explain various concepts of marketing with suitable examples
Marketing occurs everywhere; it touches us day after day However, it is understood very differently by many fields and sometimes, there are misconceptions in business Many people believe that marketing is advertising, the sale or market research, since these activities spread out and deal with people regularly This thinking only describes a small part rather than the entire marketing activities
Marketing covers many areas Thus, it is set by many sides; there are various different definitions of marketing We only review the basic definitions First of all,
we understand marketing as a social process management, in which the individual
or group will receive what they need through creating and exchanging products and value with others To explain, understand marketing, we will look at some important terms such as need, want, demand, product, customer value, satisfaction, exchange, transaction, market
Trang 4Marketing is one of the most fascinating topics in the business world for six decades and there are many different ways to define marketing The new marketing concepts have always appeared as a reaction before changing business environment
When marketing appears for a long times, people have conceived consumption activities and sales This condition is only true in underdeveloped economy Moreover, businesses are only interested in the production of many products and profitable revenue through the sale of products Typically this is the traditional view:
- Definition of John H Crihton (Australia): “Marketing is the process of providing the right product, correct channel or channels, exact time and accurate place”
- Definition of Wolfgang J Koschnik (Dictionary of marketing): “Marketing
is the conduct of business activities directly related to the flow of goods and services from producers to consumers”
Modern Marketing directly concern to customers and satisfy customer needs Today, customers have more power than ever before They can control where, when and how the products or services have sold It means that they will have more choices, and absolutely, they rarely loyal to a certain brand The some modern views of marketing experts around the world such as:
- According to I Ansoff, a marketing researcher of the United Nations:
“Marketing is entirely the science operating business activities from production to consumption Actually, it based on market fluctuations or in other words, it takes market to orient.”
- Peter Drucker's definition: “The purpose of marketing is not necessary to push consumption Its goal is to recognize and understand the customers carefully
in order to goods or services will satisfy the likings of customers and they have consumed themselves”
- Definition of William M Pride: “Marketing is the process of creation, distribution, pricing, promote the product, the service, the creative idea to satisfy the exchange relations in a dynamic environment”
Trang 5- Definition of Philip Kotler: “Marketing is a social process in which individuals or groups can get what they need through the creation and exchange free products and services with value to others”
- Definition of The American Marketing Association-AMA: “Marketing is the process of operation and management of setting the price, marketing and distribution of ideas, goods and services to create the transaction to satisfy the objectives of individuals and organizations”
- Definition of The Japan Marketing Association-JMA: “Marketing is an integrated activity through which businesses or other organizations - have a strategic vision and customer insights will create market their case by way of fair competition”
- Definition of England Institute of Marketing (The Chartered Institute of Marketing-CIM): “Marketing organizes functionally and entirely manages business and manufacturing activities from discovering and purchasing power buying into essential needs about specific commodities to produce and goods to the final consumer in order to ensure business profits expected”
- The definition of the Malaysia Management Institute: “marketing is connecting art, applying the necessary effort to discover, create, satisfy and raise customer needs to make a profit”
Thus, marketing formed two different views in the process of developing: traditions and modern marketing The difference between these two perspectives is presented as follows:
Criteria Traditional Marketing Modern Marketing
The starting point Manufacturer market
The interest subject product Customer demand
Means to achieve
goal
Sell product and promotion
Marketing Synthesis General efforts
The final goal Profit through increased
sales amount
Profit through satisfying the needs
of consumers and social benefits
In summary, it can be seen that the marketing industry has gone through many stages with countless new concepts Clearly, the dynamics of marketing and
Trang 6persistent determination of marketers in the development of new ways to understand the changes of the market, customers, competitors and partners has created many tools and new knowledge
3 Explain market segmentation with suitable examples
Market segmentation divides the market to large-scale, heterogeneous according to certain criteria into separate market segments In each market segment, there has the uniformity of characteristics, needs, tastes, behavior
Market segmentation of a product makes the market place becoming homogeneous pieces Moreover, it helps businesses to identify customer needs in each segment through research, analysis and market segment Since then, the business can choose one or several market segments suitable with their abilities to
do targeted market Basing on Market segmentation, it helps businesses focus on resources to formulate and carry out activities of marketing mix and match in order
to exploit the maximum serving the needs of selected market segments To achieve maximum benefit, Market segmentation must have five characteristics following:
- Identifiability: The size, purchasing power and the characteristics of the market segments are measured For example, measuring the scale of teens smoking segmentation is not easy because smokers mainly oppose their parents and not willing to cooperate with the Marketers who research their smoking behaviors
- Substantiability: The market segment must be large enough and it creates profitable worthy enough to serve For example, an automobile manufacturer did not give much thought to segment the lefties, because the number is not large enough to form a separate segment
- Accessibility: The market segment has to reach and serve effectively Perfume company supposed users are the single women who often come into the bar at night and These women are very difficult to access unless they live and work
in certain places and in contact with certain media
- Differentiability: The market segment varies in concept and responds to different marketing-mix elements and various marketing programs If the woman
Trang 7has no family and family reacts similar to table salt and fur coats As the results, they cannot belong to a separate market segment
- Stability and actionability: The single market has to stabilize and Marketer can build effective programs to attract and serve these markets For example, a small airline discovered seven market segments, but their payroll is too small to build a separate marketing program for each market segment So serve this market segment seven is not feasible
Depending on the characteristics of the market, the product's characteristics, the ability of the enterprise can choose the following criteria for market segmentation For example, can summarize the target group segmentation of consumption markets in Table 3.1
Table 3.1: The main criteria to segment the consumption market
geography Region North, The Middle , South, mountainous,
midland, and plains Urban scale, province, city (people) <300,000; 300,000-1 million; ≥ 1 million Density Urban areas, suburbs and rural areas
Climates Temperate, tropical, tropical welding
Population Ages < 6, 6-11, 12-19, 20-34, 35-49, 50-64, > 65
Family size 1-2, 3-4, ≥ 5 people
Income (USD / month) <10,000; 10,000-30,000…; ≥ 100,000 Nationality USA, France, Japan, Australia
psychology social classes Lower, middle, upper
lifestyle Dependent, accepted, successful
personality Easy drag, imitate, authoritarian, ambitious
Conduct shopping circumstances Regularly on the special vacations
Using levels Less, moderate, and more
Attitude to commodity Passionate, positive, hostile, negative, hate The production material market can be divided in many segments of the variables used to segment the consumer market, such as geographical variations, benefits and search usage levels However, there are also more new varieties
Trang 8Bonoma and Shapiro have proposed production material market according to the variables shown in Table 3.2 This table lists the main questions that people working on production materials market should set out to determine whether to serve market segments and customers The demographic variables are the most important, followed by the extraction variables, and finally the personal characteristics of the buyer For example, firstly, rubber Tire Company must decide
if you want to serve the public sector, and note the following differences: The automobile manufacturers have different requirements, the vendor luxury cars luxury wanted tires than the standard car maker And the tires that aircraft manufacturers need to meet higher safety standards than the tires that the production
of agricultural tractors need
Table 3.2 The main criteria for industrial market segments
Demographics
Jobs Should focus on public sector?
Scale enterprises should focus on the enterprise scale like?
Location should focus on the geographic area ?
The extraction processing
Technology should focus on the client's technology ?
User status user should not focus on heavy users, moderate, low, or who do not
use ? Client capabilities should focus on the client needs more or less services ?
Mode of supply
Organize supply
function
should focus on providing enterprise organizations focus or decentralized ?
Power structure should focus on enterprises dominated by technical , financial
dominates , etc
Nature of existing
relationships
should focus on the enterprise has a close relationship or pursue the most desirable business?
General
procurement policy
should focus on enterprises prefer to hire purchase, contract services , purchasing or procurement system ?
Shopping criteria Shopping criteria should focus on the enterprise search quality ,
service or price?
Trang 9These situational factors
Emergency There should or should not focus on enterprises that require goods
or services quickly and unexpectedly Application can it be particularly focused on the application of certain of its
products or in all applications?
Scale orders can they be so focused on large orders or small ?
Personal Characteristics
Buyer and Seller
are similar
There should focus on the people and businesses have similar values as we do not?
Attitudes to Risk It should focus on the customer accepting the risk or not risk
aversion?
Loyalty Should we focus on the business proved to be very loyal to their
suppliers or not?
Briefly, Market segmentation will help businesses finding the "gap" of markets and utilizing efficiently competitive advantages The combination of satisfying customer demand increasingly higher allocation of resources to more effectively create competitive advantage and greater profitability
4 Explain the process of integrated Marketing communication
There are typically six steps in the IMC planning process Each are important
in their own right and can be applied to practically any business or organization, no matter the size or industry While your plan might utilize each marketing communications function differently, the overall idea remains the same
Below are the major steps to keep in mind when developing your IMC strategy
Step 1: Know your target audience
Trang 10As a general rule, there is no “general audience” You always want to communicate with a specific audience to make the most effective use of your resources
Segmenting specific audiences into groups based on characteristics will help you identify who are most likely to purchase or utilize your products and services Step 2: Develop a situation analysis
Commonly referred to as a SWOT Analysis, this is basically a structured method of evaluating the internal strengths and weaknesses, and external opportunities and threats that can impact your brand
A situation analysis can provide much insight into both internal and external conditions that can lead to a more effective marketing communications strategy
Step 3: Determining marketing communication objectives
In this step, you basically want to document what you want to accomplish with your IMC strategy Objectives should be measurable if you truly want to map your campaign’s effectiveness at the end of your plan’s term
Step 4: Determining your budget
Having a realistic idea on what you have to work with is important as it will shape the tactics you develop in the next step Once you determine your overall budget, you will want to come back to this after completing step five to further refine your budget allocations
Step 5: Strategies and tactics