final exam subject principles of marketing

Additionally, many companies are now customizing their products, services, advertising, promotion, and sales efforts to fit the requirements of individual regions, cities, and localities

ĐẠI HỌC KINH TẾ THÀNH PHỐ HỒ CHÍ MINH TRƯỜNG CÔNG NGHỆ VÀ THIẾT KẾ KHOA CÔNG NGHỆ THÔNG TIN KINH DOANH

FINAL EXAM

Lecturer: Đỗ Thị Hải Ninh

Class code: 23C1BUS50307017

Student’s name: Nguyễn Ngô Bảo Thy

Student’s ID: 31231021131

Course – Class: K49 – EEP001

Sheneedsyouradviceonwhohertargetaudienceandmarketanalysistohelpherbuilda marketingstrategy.CanyousharewithhertheSegmentation-Targeting-Positioningstrategyfor herbusiness?

To create a marketing plan that emphasizes customer value for Mrs Hai Ninh's restaurant, we need to take certain steps It is essential to understand the methods utilized by successful companies They follow four major steps Firstly, they select the customers they want to serve bydividing the market into distinct groups of buyers with different needs, characteristics, and behaviors This is called market segmentation, and the company develops profiles of the resulting market segments Then, they evaluate each market segment's attractiveness and choose one or more market segments to enter - this is called market targeting In the final two steps, the company decides on a value proposition - how it will create value for target customers To createsuperior customer value, companies differentiate their market offering, and positioning involves arranging for a market offering to occupy a clear, distinctive, and desirable place in the minds of target consumers relative to competing products Each of these steps is discussed in detail

The first step is market segmentation Every market comprises buyers who have distinct preferences, resources, locations, buying attitudes, and practices By dividing these large and diverse markets into smaller segments, companies can effectively and efficiently cater to their unique needs with products and services This process is called market segmentation

Marketers cannot rely on a single method to segment a market and must try different

segmentation variables alone and in combination to identify the best way to view market structure In this regard, we will explore the major geographic, demographic, psychographic, andbehavioral variables

Geographic segmentation involves dividing the market into various geographical units such as nations, regions, states, counties, cities, or neighborhoods Companies can choose to operate in

one or a few geographical areas, or operate in all areas but acknowledge geographical differences

in needs and wants Additionally, many companies are now customizing their products, services, advertising, promotion, and sales efforts to fit the requirements of individual regions, cities, and localities

-> When opening a restaurant near a university, it is important to consider geographic factors Mrs Hai Ninh's restaurant should be easily accessible for students and faculty, and it is located in a high-traffic area Additionally, it may be beneficial to research the types of food that are popular among the university population and incorporate those into the menu

Market segmentation based on demographic factors is a popular method used by companies Thisinvolves dividing the market into segments based on variables such as age, gender, income, education, religion, ethnicity, and generation One of the reasons for its popularity is that consumer needs, wants, and usage rates often vary closely with demographic variables Additionally, demographic variables are easier to measure than most other types of variables Even when marketers first define segments using other bases, such as benefits sought or behavior, they must still know a segment's demographic characteristics to assess the size of the target market and reach it efficiently

-> When deciding to open a restaurant, in proximity, to a university it is crucial to consider the demographic aspects associated with the student community Here are several essential demographic factors worth taking into account:

1 Age: University students are likely between 18 and 22 Those are young people and

they tend to try new and different things

2 Income: University students are often on a tight budget, therefore an affordable variety

of food is their choice

3 Diversity: University students come from many places in the nation so a variety of

taste is suitable for all of them

4 Socializing: University students often enjoy socializing with friends and classmates,

they also work in groups frequently, so they often look for a place where they can have fun with their friends and discuss their work Consider incorporating comfortable seating,and free Wi-Fi

5 Convenience: With a hectic schedule, university students are always in a hurry and

they need convenient and fast-serving food Consider offering takeout or delivery options, as well as online ordering to make it easy for students to order food on the go

By taking these demographic factors into account, Mrs Hai Ninh can create a restaurant that caters specifically to the needs and preferences of the university's student population

Psychographic segmentation is a method of dividing buyers into different segments based on their lifestyle or personality characteristics It's important to note that people in the same demographic group can have very different psychographic characteristics Therefore, psychographic segmentation is useful in understanding the different motivations, interests, and values of consumers within a particular market

-> When opening a restaurant near a university in a busy area, psychographic

segmentation can be a useful tool for targeting ideal customers Lifestyle and personality characteristics are two common psychographic variables that can help Mrs Hai Ninh identify and understand her target audience For example, she may want to target studentswho have busy and active lifestyles by offering quick and healthy meal options that can

be easily eaten on the go Alternatively, she may want to target faculty members who value high-quality dining experiences by offering a more upscale menu and atmosphere Personality characteristics can also be useful for segmentation, such as targeting introverted students who prefer quiet dining environments or extroverted students who enjoy socializing and group dining experiences

Behavioral segmentation is a method of dividing buyers into segments based on their knowledge,attitudes, uses, or responses to a product Many marketers consider behavior variables to be the best starting point for building market segments This is because behavior variables can provide insights into the specific needs and preferences of customers, as well as their purchasing patterns.

By understanding these behavior variables, marketers can tailor their marketing strategies to effectively reach and engage their target audience

-> When opening a restaurant near a university in a busy area, it's important to consider behavioral segmentation Understanding the target audience's behavior can help Mrs Hai Ninh tailor her marketing strategy to meet their needs and preferences For instance, she can conduct research to determine what types of food or dining experiences they prefer, what motivates them to visit restaurants, and what factors influence their decision-making By using this information, she can create a marketing campaign that resonates with the audience and drives more traffic to her restaurant

The second step is market targeting After identifying the market segments through

segmentation, the firm needs to assess and determine the segments that it can serve most efficiently This evaluation helps the company to select the most suitable market segments for its product or service Let's now explore how companies evaluate and choose their target segments

When evaluating different market segments, a company must consider three essential factors: segment size and growth, segment structural attractiveness, and company objectives and resources The selection of segments with the right size and growth characteristics is crucial, but it's a relative matter The largest and fastest-growing segments may not always be the most attractive options for every company Smaller firms may lack the necessary resources and skills

to serve more extensive segments, while some may consider those segments too competitive In such cases, companies may target smaller and less attractive segments that have the potential to

be more profitable for them

-> The size of the segment is substantial, as UEH - campus B is home to a large number

of students The growth rate of this segment is also promising, with more students enrolling in universities each year

In terms of segment structural attractiveness, university students are a diverse group with varying tastes and preferences It's important to understand the specific needs and preferences of the target audience to create a successful restaurant concept that appeals tothem University students value affordability, convenience, and the ability to socialize, so

a restaurant that offers quick and affordable meals, comfortable seating, and a lively atmosphere may be more attractive to them

Finally, when considering company objectives and resources for opening a restaurant, it'simportant to ensure that the concept and budget are aligned with the restaurant's overall goals This includes considering factors such as location, rent, staffing, and marketing efforts By taking these factors into account, an effective restaurant concept and marketing strategy can be created to reach university students and succeed in the competitive food and beverage industry

Once the evaluation of various segments is completed, the company needs to finalize which segments it will target and in what quantity The target market is a group of buyers who have common needs or characteristics that the company aims to serve Market targeting can be executed at different levels, including undifferentiated marketing, differentiated or concentrated marketing, and micro marketing

-> Mrs Hai Ninh's restaurant can benefit greatly by targeting the university student market segment University students are often in need of quick, affordable, and convenient dining options due to their busy schedules They are also generally budget-conscious and on the lookout for good deals

In addition, many university students prefer to study while they eat, so having a quiet andseparate space within the restaurant would be ideal for them This could attract a significant number of students looking for a place to study and have a meal at the same time

The third step is differentiation and positioning Apart from identifying the target market segments, the company needs to determine its value proposition, which involves creating unique value for the targeted segments and determining the positions it aims to occupy in those segments The position of a product refers to how consumers perceive it based on key attributes, representing the product's place in the consumers' minds concerning competing products While products are manufactured in factories, brands are created in the minds of consumers

When developing differentiation and positioning strategies, marketers frequently create perceptual positioning maps that display consumer perceptions of their brands and competing products concerning significant buying dimensions

To differentiate a product from its competitors and position it in the market, there are three crucial steps The first step is to identify a variety of competitive advantages that can set the product apart from its competitors The second step involves selecting the most suitable competitive advantages Finally, an overall positioning strategy needs to be chosen to firmly establish the product in the market After determining the position, the company must effectivelycommunicate and deliver it to the market

Hereare3smallerstepsforthepositioningprocess:

1/ Determine the level of positioning (country/ industry/ company/ product)

-> The level of positioning for opening a restaurant near a university would be at the product level since it pertains to a specific type of business and its offerings However, it

may also be relevant to consider the industry level, as it would be part of the food and beverage industry.

2/ Identify important core characteristics for the selected market segment

-> The important core characteristics of the university student market segment that Mrs Hai Ninh's restaurant can benefit from include the need for quick, affordable, and convenient dining options due to their busy schedules University students are also generally budget-conscious and on the lookout for good deals In addition, many studentsprefer to study while they eat, so having a quiet and separate space within the restaurant would be ideal for them This could attract a significant number of students looking for a place to study and have a meal at the same time

3/ Evaluate industry competitors

-> When evaluating the restaurants near a university, it's important to consider their competitors While there may be a lot of fast-food restaurants and Vietnamese and Chinese food options nearby, finding a place that offers both delicious food and affordable prices can be a challenge To stand out from the competition, restaurants should focus on offering high-quality ingredients, exceptional service, and competitive pricing By meeting these criteria, they can attract students and faculty looking for a satisfying meal without breaking the bank Additionally, having a diverse menu with options for different dietary needs and preferences can set a restaurant apart from its competitors and attract a wider range of customers Finding a peaceful environment to study in neighboring restaurants can be quite challenging, especially when students want

to eat while working While there are coffee shops where they can work, they may prefer

to have a meal That's why it can be a unique feature if a restaurant provides a quiet spacefor studying

The 4Ps are a great approach for Mrs Hai Ninh to develop her marketing strategy for opening a restaurant near UEH - campus B on Nguyen Tri Phuong Street The 4Ps stand for Product, Price, Place, and Promotion, and optimizing each element can help to reach her business goals

To ensure that the menu appeals to the target market, Mrs Hai Ninh should consider including options for local Vietnamese dishes, fast yet healthy meals, and customizable items Vietnamese cuisine is renowned for its bold flavors, fresh ingredients, and vibrant colors, so featuring authentic local dishes is an excellent way to differentiate the restaurant from competitors and showcase the unique culinary heritage of the region

Additionally, students often prefer quick meals that are both nutritious and delicious, so offering fast yet healthy options such as salads, sandwiches, and smoothies can be a winning strategy Finally, customizable items such as build-your-own-bowl or DIY wrapsallow customers to personalize their meals to their liking, making the dining experience more engaging and memorable

Quietworkspace:

Another crucial element of Mrs Hai Ninh's marketing strategy for opening a restaurant near UEH - campus B is providing a quiet workspace for students who need a conducive environment to study or work This can be a significant differentiator for the restaurant,

as many students are looking for a comfortable and quiet space to focus, but options can

be limited around campus

Mrs Hai Ninh might contemplate designating a separate area of the restaurant with comfortable seating, charging ports, and a conducive atmosphere for studying or working This space should be adequately insulated from the noise and bustle of the maindining area to ensure that it's quiet and peaceful Comfortable seating such as ergonomic chairs and tables or booths with ample lighting can help create a conducive environment for productivity

Furthermore, providing charging ports for laptops, tablets, and phones can be a significant convenience for students who need to work for extended periods A strong andreliable Wi-Fi connection is also a must-have for students who need to research or access online resources while working

Finally, it's important to cultivate an atmosphere that's conducive to studying or working This will be discussed later Mrs Hai Ninh could also consider offering free coffee or tea during quiet hours to entice students to stay longer

To enhance the restaurant's appeal and attract more students while also encouraging repeat business, Mrs Hai Ninh can optimize the quiet workspace and create a distinctive value proposition

Qualityservice:

Since students have a lot on their plate, they are frequently occupied and moving around, they value efficient, friendly, and attentive service that meets their needs quickly and without compromising on quality

Mrs Hai Ninh should train her staff to be customer-centric, empathetic, and responsive tostudents' needs They should be knowledgeable about the menu, able to make

recommendations based on customer preferences and provide quick and efficient service

to ensure that students can get back to their studies or other activities as soon as possible

In addition to speed and efficiency, quality service also involves creating a welcoming and friendly atmosphere that makes students feel at home Staff should greet customers warmly, be attentive to their needs, and go above and beyond to ensure customer satisfaction

To further enhance the quality of service, Mrs Hai Ninh could also consider offering loyalty programs, and special offers to repeat customers These initiatives can help build customer loyalty, increase customer retention, and encourage word-of-mouth referrals

It seems that there is room for improvement in the quality of service at Mrs Hai Ninh's restaurant, which could potentially enhance the overall value proposition for her customers

Moreover, in addition to menu pricing, it's also important to consider other factors that can affect the affordability of the restaurant, such as location and operational costs For instance, choosing a location that's easily accessible to students and has reasonable rent can help reduce operational costs and enable Mrs Hai Ninh to keep menu prices affordable