Individual assignment marketing management

- Accessibility: Make sure that customers can get the product quickly such as fastdelivery, shipment to buyers.http://www.knowthis.com/product-decisions/product-components-augmented-prod

iNDIVIDUAL Assignment Marketing Management CONTENT 1 Explain the following: (a) Production concept (b) Product line (c) Augmented product (d) Social marketing concept The Production Concept Focus on production as customers will benefit when there is availability, wide distribution at low prices so marketing management should focus on boosting production work as well as product distribution This concept is often explained mainly by the following factors: Firstly, when the demand for products exceeds the supply, customers will pay more attention to getting the product than focusing on product quality Therefore, enterprises will increase the scale to increase sales and profitability Secondly, to reduce production costs, enterprises look for increasing production to achieve economic effect and thereby expand the market The advantage of this concept is it obviousness when demand exceeds supply However, the biggest drawback when supply exceeds demand is waste when products cannot be sold, revenue cannot offset costs; or low price as well as the ease of shopping (due to wide distribution) is not the major factor attracting customers so that they decide to purchase goods http://www.dankinhte.vn/cac-triet-ly-quan-tri-marketing-marketing-management-philosophies/ The Product Line All goods are manufactured by an enterprise A group of closely related products is manufactured by the same process and is for the same purposes and only differs in presentation, style or size For example, Coca-Cola has beverage product line: Coca-Cola, Fanta, Sprite etc http://www.merriam-webster.com/dictionary/product%20line Augmented product Factors positively impact customer's decision are products are provided with additional value These values are considered a part of an augmented product, including: http://www.fingertecblog.com/2013/08/afiqs-5-ps-in-fingertec-part-5.html - Guarantee: When a product is damaged, the seller will replace it with a new product, repair or refund the customer - Warranty: Provide customers a warranty regime by repairing or replacing some certain components freely during warranty period - Customer service: Include services supporting clients such as: user manual, advice via telephone or website - Product adding: Strengthen some utility to make the product be easier to use as carry-bag for laptops etc - Accessibility: Make sure that customers can get the product quickly such as fast delivery, shipment to buyers http://www.knowthis.com/product-decisions/product-components-augmented-product The Social Marketing Concept Social marketing concept does not only bring satisfaction to customers but also ensure social benefit because it is believed that consumers’ satisfaction is not enough, but it must be the interests of the whole society In the last time, enterprises made their marketing decisions based on profit, but now satisfying customer needs and knowing the importance of social benefits have been focused more and more As a result, marketing activities will be significantly improved with longer-term benefits 2 Explain various concepts of marketing with suitable examples There are many different ways to define marketing: Marketing is the process of organizing the sales force to sell goods produced by a company Marketing is the process of advertising and sales Marketing is the process of understanding and satisfying the needs of the market and marketing is to do market, research the market to satisfy it We can also understand that marketing is a mechanism which organizations and individuals use to satisfy its needs and wants through product exchanging processes on the market According to Philip Kotler, marketing is understood as follows: Marketing is a process of social management, whereby individuals and groups obtain what they need and want through creating, offering and exchanging valuable products with others This concept of marketing is based on the core concepts such as needs, wants and requirements, product, value, cost and satisfaction, exchange, transactions and relationships, market, marketing and marketers So, marketing is a conscious activity of man to satisfy the needs and wants through product exchanging processes on the market Explain different concepts of marketing with appropriate examples: Marketing is a good product that is sold in convenient places with a reasonable price (Adcoketal) EX: An enterprise runs a business with high-class products and takes its products to rural areas with low income to sell This activity proves that the enterprise does not understand about marketing, which means it does not sell what customers need, but only sell what they have  Marketing is activities aiming towards satisfying customers’ needs and wants through interactive processes (Kotler 1980) EX: Product continuous improvements of Honda in improving product features to benefit customers’ operation and safety are to market, contributing to increase customers’ confidence To achieve this, Honda must have a team working in market research, customer research to provide effective marketing strategy  Marketing is a task in organizational structure and a set of processes in order to create, exchange, convey values to customers, and to manage customer relationships in different ways to bring about benefits to the organization and members of the General Meeting of Shareholders (American Marketing Association - 2008) EX: Honda is always a pioneer in the introduction of new product lines, namely 2- wheel vehicles in Vietnam, Honda has improved designs and modern technology, its products are cheaper, if a person wants to buy a Honda vehicle, he can find it anywhere, Vietnamese often use the word Honda when saying about 2-wheel motorcycle whether it is manufactured by other manufacturers This has proven that Honda has done marketing very well (Promotion) and eventually, the cause why Honda develops today is understandable to everyone 4 “PLC as a tool for marketing strategy" justify INTRODUCTION The development phases of a product over time are known as "Product Life Cycle" Product Life Cycle describes four distinct phases of a product: introduction, growth, maturity and decline Enterprises need to be aware of which phase their products are to have a marketing plan: Launch products, refresh, or replace the product with a new product line In other words, PLC helps enterprises a lot in product management strategy, product pricing strategy and marketing budget management strategy BODY Product Life Cycle is usually indicated by the following chart: Introduction Stage: This is the initial phase, customers do not know or do not know much about the product so enterprises spend a lot of expenses to introduce and advertise products on the market However, if businesses implement pricing strategy, false product positioning would create the risk of reducing the value of the product If market size is too small, sales will not be much, so businesses must rethink about their marketing strategies if they are uncertain about the market Target customers are interested in exploring and experiencing and they always want to be the first to use the product For example: In the late 1970s, Apple and other pioneers were interested in creating personal computer market, and in promoting their particular products The increase in awareness and interest in the personal computer is good for all competitors When IBM jumped into this market in 1981, people were overjoyed because of its involvement as IBM’s products attract more customers http://www.misa.com.vn/tabid/91/newsid/22774/Chien-Luoc-Marketing-Thay-Doi- Theo-Vong-Doi-San-Pham.aspx Growth Stage: After the initial success, many customers are interested in products because of its value, as well as of the effects of marketing activities and of targeted customers Owing a kind a product becomes a demand, so the number of products sold increases, enterprises will have greater revenue and profitability When the product is popular on the market, it will bring about the biggest profit margin Maturity Stage: After the development phase, the number of customers who own the product is high, so the attraction of the product is not as large as before and the demand for products gradually becomes saturated Sales stops and begins to decline over time due to the emergence of other competitors, loss of market share or products unfit consumers At this stage, enterprises need to deploy marketing strategies to renew products or introduce new product lines Decline Stage: Products have become too familiar and not so attractive, to consumers feel bored and wants new products with more features So at this time, purchases fall sharply, cost increases and profits reduce Enterprise should reduce the price to attract customers at lower segment and to get revenue in the period The following table shows the stages in product life cycle, features, marketing requirements and their effectiveness https://www.boundless.com/marketing/products/product-life-cycles/impact-on-marketing-strategies/images/ product-life-cycle-stages/ CONCLUSION The marketing strategy is to identify what the market needs based on the formation and development of products The task of marketing is to understand market needs, to create products that satisfy the needs and to promote the development of products to expand markets and increase profits for businesses Thus, for each stage of the product life cycle, businesses need to build and deploy appropriate marketing tasks to exploit the strengths of the product and the market Each product has its expected lifespan, and marketers must correctly identify each stage of the product life cycle to develop appropriate marketing strategy, to keep products from falling into recession through appropriate transition by launching alternative products on time with more advantages so that they can best attract target customers, to maximize profits 5 Explain process of selecting the final price INTRODUCE Price is the money paid to buy a product or service, or it is the sum of all values or benefits when using products or services In the past, price is the main factor affecting the purchase decision Currently, non-price factors become more important, accordingly, there are many products and services whose proportion of non-price factors is much higher than tangible value Determining the price will decide how the product or service in the process of circulation on the market attracts customers as well as how it makes profit Today, the concept of markets border does not exist, there are many suppliers of the same product, so price competition has become the number one problem faced by administrators BODY Price assess Enterprises must establish a price in the first introduction time when developing a new product, when introducing it to a new distribution channel or geographical area This is usually done as follows: - Identify target market segments for products or services, and expectations to achieve - Set up the price for consumers at target market segment - Check the price of potential or real competitors - Check prices range from different levels of quality or product delivery method - Identify the profit at each price - If profit is low, it is necessary to change specifications of products to reduce costs in order to get the desired profit The order to set up pricing policy Selecting the Pricing Objective This is the most important step The clearer purpose is, the easier to set up the prices Five major objectives through pricing is: The survival of the enterprise, maximum profit, maximum market share, maximum market network and product quality management Whatever the specific goals are, businesses using price as a strategic tool will benefit more than the business simply lets cost or market assess their products Example: Sony is one of the companies that have experience in the market They sell at a very high price when introducing a high technology product on the market to consumer groups having a lot of money (high-level segment), and the purchasing power of this segment declines, they will reduce the price to attract the purchasing power of lower market segments Determining the demand Each price level will create different needs in inverse proportion and have different impacts on marketing objectives Most consumers are sensitive to the price of essential products A seller can charge a higher price than competitors and still sell products as long as customers can own it with the lowest cost The process of estimating demand leads to: Estimating sensitivity; estimating and analyzing the demand curve and determining the elasticity of demand Estimating Costs The cost of products includes: production cost, distribution cost and cost for sale of products (including favorable and risky factors) This cost depends on each different production levels Analyzing competitor’s costs, prices and offers This is an important factor in setting prices This step depends on market demand and the cost of the product, the cost of competitors and the to-be reaction of prices In particular, if the product or service is poor, enterprises will not set a high price like competitors On the other hand they can also change their prices to compete with the price of the business Selecting a pricing method There are three methods to assess prices can be used: price oriented cost, price oriented competitors and oriented marketing towards price Price oriented cost: Two methods are commonly used: Full cost: include all associated costs However, this approach has led to an increase in prices, so it opposes the affordability of potential customers Direct cost: Only include cost that is likely to increase as production increases; it helps determine the lowest price to increase profits while reducing prices to increase sales in off-peak hours For example, reduce the price for empty seats on the plane to attract more passengers Price oriented competitors: Assess based on the market: Based largely on the price of competitors, so the price may be the same, more than, or less than competitors’ In case of price is higher than competitors, enterprises need to have advantage in the delivery or quality of service to explain a higher selling price Competitive bidding: The buyer will choose the provider who require the lowest cost Marketing towards price: The price of a product should be set to match the marketing strategy For new products, price depends on location and strategy; while current products are affected by strategic objectives Selecting the final Price This is a step that businesses chooses its final price, it is necessary to consider additional factors such as price due to sentiment, favorable and risky price, the impact of marketing, company policies and the influence or impact of prices on market CONCLUSION Concerns about the cost of purchases are related to their expectations about the satisfaction or utility related to products Many times, high prices can attract customers and bring about high profit while low cost seems unattractive or even leads to failure For customers, they always have to consider whether the utility corresponds to the money So the process of setting the price is to reach the price at each time to launch the product or service to the market in a most beneficial way: Achieve the initial goal of the business which attracts target customers of each stage and get optimal profit in the long term, contributing to the development of the business Through the above steps, depending on specific conditions, businesses should give priority to an appropriate number of steps to best achieve their goals http://www.marketing91.com/pricing/ 8 Explain “direct marketing" and its applicability with exam INTRODUCE In this day, marketing is increasingly taken care of A product or service can be sold or not and enterprises can develop or not primarily due to marketing activities If in the past, the products were transported directly from manufacturers to consumers, now, a new trend has appeared, which is called sales technique that involves contact with potential customers, using media like introducing products directly, sending catalogs, advertising mail, e-mail, messages, online advertising which is called Direct Marketing Thanks to the quick recognition of feedback, businesses who want to sell their products will know about the demand or identify consumer’s reactions on a small scale before widening its scale with high costs Thanks to the two-way contact through promotions, discounts businesses can develop their relationship with customers, and make them become closer BODY With the nature of a marketing communication system that operates regularly, interacts and exchange information between buyers and sellers through a number of media to create positive and direct exchange reaction (measurable) from customers with little limitation due to space and time The benefits of direct marketing which customers get is: Easily adapt to an active lifestyle, help save time shopping, know new items to choose from; face less obstacles related to space, travel but still choose products needed For businesses, direct marketing will facilitate orders, help business get more information about customers most quickly in order to meet high media with efficiency and low cost Help use resources most effectively, particularly suit corporates that has compact structure, or suit discrete market segments with specific needs Direct Marketing has the following forms: -Direct Mail: Send letters via postal mail to customers in the region or to customers in the portfolio management of the business -Email Marketing: Send e-mail to clients -Direct response television marketing: There are two forms: call on the screen or on the Website, long form is a long period of time (about 30 minutes) to describe the product in detail and short form Terms is a short period of time for advertising (30 seconds or 1 minute) to clarify client's feedback -Telemarketing: Call customers directly, as well as help clients contact marketers regardless of distance, time or weather -Couponing: Use printed newspaper to get feedback from readers thanks to coupons cut out in exchange for discount -Direct selling: Salespeople will meet clients directly -Integrated campaigns are a combination of all the above mentioned forms to achieve optimum efficiency For example: there are a number of practical examples to illustrate direct marketing applications as follows: -Direct selling: Staff of insurance companies directly meets potential customers to convince them to buy their product or service For real estate businesses, they send emails, messages and invite potential customers to visit sample houses (for project under preparation for construction) or flat (for completed projects) -Online business: Businesses set to website to introduce their units and sell products online (such as household products) CONCLUSION The purpose of marketing in general is to make customers that businesses are targeting know about products, the benefits that can satisfy the needs of buyers, it expresses creativity and unique of products for sale in both aspects: physical and non- physical value Thus, each type of product or service needs accessing the market through the diversity and differences Direct marketing is a part of sales and mix marketing is not always suitable for all products and services Each type of product or service or brand has its own characteristics, each person or business manager has different goals Therefore, to succeed in direct marketing, managers should not apply a framework as a major selling method but need to take advantage of its full potential as a brand building mechanism To fully take advantage of the value of direct marketing, combine customers’ diverse requirements and suggestions with proper objectives and marketing policies By doing so, businesses can assert its brand and can sell more products or services http://www.kbmanage.com/concept/direct-marketiing http://smallbusiness.chron.com/advantages-disadvantages-direct-marketing-telemarketing-54933.html http://www.thewisemarketer.com/features/read.asp?id=68 http://luatminhkhue.vn/quan-tri/marketing-truc-tiep-kinh-nghiem-quoc-te-va-viec-ung-dung-o-viet- nam.aspx REFERENCES 1 http://www.dankinhte.vn/cac-triet-ly-quan-tri-marketing-marketing-management- philosophies/ 2 http://www.merriam-webster.com/dictionary/product%20line 3 http://www.knowthis.com/product-decisions/product-components-augmented- product 4 http://www.misa.com.vn/tabid/91/newsid/22774/Chien-Luoc-Marketing-Thay-Doi- Theo-Vong-Doi-San-Pham.aspx 5 https://www.boundless.com/marketing/products/product-life-cycles/impact-on- marketing-strategies/images/product-life-cycle-stages/ 6 http://www.kbmanage.com/concept/direct-marketiing 7 http://smallbusiness.chron.com/advantages-disadvantages-direct-marketing- telemarketing-54933.html 8 http://www.thewisemarketer.com/features/read.asp?id=68 9 http://luatminhkhue.vn/quan-tri/marketing-truc-tiep-kinh-nghiem-quoc-te-va-viec- ung-dung-o-viet-nam.aspx 1