Enterprises must first be interested in the needs of potential customers, then go on to produce goods and products or create products or services that meet customer expectations.. So man
Trang 1GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION
GROUP EXERCISE NUMBER 2
COURSE:
MARKETING MANAGEMENT
CLASSES: GAMBA01 D0109 GROUP 04 IMPLEMENTATION
1 Dinh Quoc Lam
2 Vu Huy Dung
3 Cao Minh Trung
4 Huynh Van Khanh
5 Nguyen Thanh Dung
HCM CITY - MAY, 2010
Trang 2II ANALYSIS
1 Summary of marketing theory
By definition for managers, marketing is viewed as "art sale", but rather surprised that the most important elements of marketing lies not actually sell products Peter Drucker,
Trang 3the top of management theorists said: "But the purpose of marketing is how to know and understand good customer that product or service that best fits them, and it will sell itself Ideally, marketing should result from the shopping available Since then, the creation
of products or new products and services become necessary to create them
Modern Marketing Theory focuses on satisfying customer needs by focusing on understanding the market, the customer Enterprises must first be interested in the needs of potential customers, then go on to produce goods and products or create products or services that meet customer expectations Theory and practice of marketing is set based on customer use a product a product or service that only when they have a demand because the product
or service that delivers a real benefit to them
2 The difference between product marketing 4P and marketing services 7P
Two aspects of this marketing is to find new customers, keeping close contact with existing clients The commercial products are developed to meet the desires of different groups of customers, and even in some cases, only a specific group of customers E Jerome McCarthy marketing-mix classification of products into four basic groups of activities and have become popular include:
Trang 4- Level 2: The product actually includes all elements reflect the existence of products such as indicators reflect the quality, features, brand, appearance, packaging These factors help businesses differentiate their products with products of competitors and also as a basis for customer choice in the same products.
- Level 3: Additional product (advanced) This level mainly consists of client services such as warranty, installation, training, use, delivery door, to help customers feel more comfortable, happier It is a weapon of competitive enterprises Not long before, when the difference in price and quality are no longer significant competition in the market will move towards focusing on customer service
2.2 Price
Price is the amount of money that customers spend to get products and prices of products that affect the number of products will be sold on the market To determine prices for their products, companies must be based on many factors, including elements within the (target marketing, production costs,.) and external factors (demand of the market field, competitive situation,.)
2.3 Distribution
Distribution is the activity to bring products to targeted customers For every business there are many different channels as directly, indirectly through the intermediary distribution or a mixture of two forms above The organization of good distribution system will help companies increase product consumption while saving costs
2.4 Promotion
Promotion called Media Marketing with purpose of information, encourage, persuade customers to trust in business, the product and lead to consumer products Marketing
Trang 5Communications, including four small elements: advertising, direct sales, promotion and customer relations.
A marketer can use these properties to build a complete marketing-mix plan 4P model has the most effective applications when marketing-mix create the value of tangible consumer goods Use it to set policies on product, pricing, distribution systems and promote
at the best direction In fact, competition for global markets at present, in addition to tangible products also have products and services, so there 4P model has limitations when applied to marketing products and services So many researchers have given the extended model 7P, to satisfy needs and wants of them, and by the distinct characteristics of services than tangible goods are:
- Differences in the characteristics of products and services than tangible products:
Tangible Products
* Can see:
- There exists a material form
- The patented
- It can display and advertise
- Customers can handling and
discrimination, assess the quality before
purchase, or before use
* Can be separated:
Tangible products can be separated from
Products and Services
* Can not see the (invisible):
- Services can not touch, smell or see them before use, does not exist in material form,
- Services can not be patented
- Services can not display or advertise
- Customer assess service quality after use, based on experience, information and belief
of the customer based on the location, nature, place of supply, the supply
* Can not be separated:
Trang 6manufacturers, transported to another place
for the proceeds Customers can purchase
for home use
The process used and provide services can not be separated Customer service can not take home to use
Tangible Products
* Storage:
- Can be archives, can be inventories, can
be return, may withdraw or re-sale
- Supply and demand can be balanced by
the number of products produced between
different times
* Stable quality:
- Stable quality by the same design,
technology, production process, the product
quality as each other, through the
examination process, products do not meet
quality will be eliminated before workshop
- No involvement of customers in the
- Supply and demand balance is difficult, often imbalances between different times
* Diversity and quality is not stable
- Service quality can not be the same, due
to the impact of human factors
- Quality of service is single, can not have identical service
- Customers who participate in and influence the process of implementation services
- Service quality depends on factors of control
- Not sure whether services are delivered in accordance with service plans & be announced
Trang 7From the above characteristics, we found the service is operation process of activities and behaviors based on intangible factors to handle relationships between enterprises and customers Services associated with the performance / achievement by each service have targets that bring value to consumers Performance here is the utility value and increase value that consumers will receive through the use of services So the differences of tangible products and services to marketing-mix 4P model for tangible products is not enough to perform the services that need to add three more factors including:
2.5 People
Human factors are primarily the company's staff, especially staff in direct contact with customers They both are involved in the exploitation process of creating the service, just as the seller Acts, gestures, speech, dress, will affect their psychological customers.Knowledge, skills affect their quality of service Customers receive services and participate in the process of customer service, relationships between customers together also the problem that "Marketing-Mix Services" interest
2.6 Tangible Factors (Physical Evidence)
The disadvantage of service is that intangible should need to use tangible elements to effect positive psychological customers, improve service quality in customer perception These elements exist at transaction, together with products, people, advertising equipment and facilities, corporate culture
2.7 Process
For the service sector, the supply and consumption occur simultaneously, customers participate in the process of creating the service That process has psychological impact on customers Marketing-mix therefore also focuses on the service provider process
Trang 83 The difference between marketing tangible products and marketing services about factor productivity and quality
3.1 Productivity
For tangible goods and products, yield is the product of the marketing requirements
of the criteria, the creation of commodities have increased productivity criteria so completely invested in technology and production processes
For services, productivity is the amount of services that particular level of production
of a unit providing services in a given unit of time and is offered to customers Productive health services associated with production Productivity is dominated by specific labor, with mature operations skills of man-made services Due to the characteristics of the service is an intangible product, is a big difference on productivity issues, typically has 04 major issues dominated productivity services are:
- Improve the quality of labor force
- Increase investment in technology and equipment
- Actively tested before delivery tasks to employees
- To renew personal communication services
Increasing productivity requires services involving the cooperation of customers, in the process of production and distribution services Services increase productivity by changing customer behavior and expectations along with their acceptance of such changes For example, some hotels with attractive price, but did not meet the demand for morning coffee at the bar To meet this demand, the hotels must increase this service by equipping the rooms, electric hot water, tea, coffee and encourage customer self-service As
a result of customer demand is satisfied, the employees have time to do other important work and services to increase productivity
Trang 93.2 Quality
For tangible goods and products: a cognitive perspective on quality as "Quality is as good product from the beginning, do not have disabilities, "Quality control by maintaining strict manufacturing processes and technologies, control of all the errors until the finished product
For products and services: Awareness and assessment of service quality more difficult and complex than the existing product quality, intangible by nature, heterogeneity, essentially no inventory, perishable and no interruption in production and consumption So when the marketing-mix service, managers to focus efforts on the provision and control of tangible clues used by customers in evaluating service Service quality to relative and subjective, depends on perceptions, expectations and satisfaction of customers In short, customer satisfaction is related to service quality If high service quality, satisfaction level achieved expectations, customers feel happy and satisfied otherwise The basis of the quality of service is labor quality and the quality perception gap Quality of labor depends
on the skill of the contingent labor supply Due to the high skills that make personalized services and maximize satisfaction
In short, quality marketing services including criteria are: Consumer satisfaction level of customers, employees transactions, the organization inside physical environment and facilities, corporate image and the interaction between client staff during implementation services
3.3 Reviews
In the competitive global market today, Marketing in the 21st century is no longer confined in the traditional formula 4P, which has been 3P expanded into a formula 7P The marketing effort will be to add more power and defeating the competition with this new formula The reason many businesses now not want to apply the 4P model anymore because
Trang 10it's too simple, not to mention it is based on subjective assumptions that customers always have the ability to reacognize and express their needs in a way beneficial to marketers
In addition, businesses should remember that the customer is an individual, but they also represent a set of consumers capable of decision markets, or target market segments Therefore, marketers must consider each individual customer is the source and destination marketing activities 7P model has additional marketing overcome deficiencies above, marketing professionals can easily influence and control the results of your marketing initiatives and demonstrate the basic spirit of modern governance is weak Human factors and system factors People or personnel is not the most important factor in planning, implementation and management strategies of the enterprise to increase productivity and product quality but also to build and maintain relationships with customers, offering solutions to improve service quality to retain customers by improving customer loyalty and increase profits for businesses
4 Evidence specific tangible product marketing and services marketing
4.1 Toyota success on the U.S market 1955-1980 with the application 4P model
From 1955-1980 the company produced Japan's Toyota has successfully penetrated the U.S market with the application of effective marketing 4p model as follows:
4.1.1 Product strategy
Faced with the cars products of American and Europe, Toyota's product strategy is to make high-quality car, nice small design, design refinement, fuel economy, fast, convenient maintenance and economy Because it is compatible with American demand, it just moves
in the U.S Toyota has established a reputation of quality After standing on American soil, they have quickly expanded application product strategy, continuous improvement improve product quality and improve labor productivity Add to that an additional continuous investment in technology, building workshop with advanced equipment, staff training with
Trang 11technical high, and a series of training professional workers, strengthen scientific managemen 1958 Toyota average production worker was 1.5 units a year, in 1969 to yield
up to 39 units a year At the same time the average labor productivity of employees GM cars on average 8.9 units a year and increase only 11.4 units a year Improving product quality, create a product "no errors" is the slogan Toyota They focus on quality control in the production line They consider quality as the lives of enterprises, thereby assuring the reputation of the Toyota brand
4.1.2 Pricing strategy
Toyota moves in the U.S market, they apply a low price strategy, competitive, target
is not high profit from products that can quickly moves in the market, achieving the number certain market share, establishing a long-term dominance To penetrate the market, must take advantage of potential customers, setting prices lower than competitors, as loss of profits in the near future as part of investment to exploit long term market expansion Toyota moves in the U.S market, they apply a low price strategy, competitive, target is not high profit from products that can quickly moves in the market, achieving the number certain market share, establishing a long-term dominance To penetrate the market, must take advantage of potential customers, setting prices lower than competitors, as loss of profits in the near future as part of investment to exploit long term market expansion
4.1.3 Consumption distribution
Based on thorough analysis of competitors, the Toyota company selected a retail plan advance and synchronized To ensure product easily penetrate into the market, must be completed risky step from production to consumption levels charge
-First, the service instance of maintenance and after sales is good Second, selected key consumption Initially, Toyota selected a number of seaside cities like Los Angelet, San Francisco Timely detection and repair error, gain experience in international business After stabilization, Toyota began full force landed in America