Marketing management (Part 1: ABC)

Chapter 1Builiding customer strategy

Marketing ManagementDr. Nguyen Hai Ninh - FTU

Nguyen Hai Ninh. Dr.Hanoi Foreign Trade University – International

Business Department

Cell: (+84) 0915139839

Email: nguyen.haininh@hotmail.com

Class regulations

#1 On time (if you are late than teachers, pls wait until the break)#2 No voice in class (pls show the respect for lecturer and others)#3 No sleep (if you feel sleepy, feel free to go out, no need to ask for lecturer’s permission)#4 No food (but drinks are permitted) #5 No cellphone (switch off your phone ring before class starting)#6 No laptop, ipad, ipod. #7 No need to ask for the permission to be absence for class (don’t cheat or tell lie)#8 No mark bargaining!!!

Grading

Attendance: 10%

Mid-term assignment: 30%Final: 60%Total: 100%

In which:- Mid-term assignment: Marketing

environment analysis - Final: Group presentation - Peer 2 Peer evaluation is applied for group member

marking

Presentation topic

• Choose one existed company and their product/service

• Draft the marketing plan for them, including: Market analysis Marketing strategies

Marketing management Intro

Marketing Environment Analysis

Marketing Mix Strategies

Marketing Action Plan

Agenda

Wake up Activity:

Individually (10 min)- Are ready to be a Marketing Manager?

- What should you do to be a Marketing Manager?

- By your own, what is your definition of Marketing?

Definition and concepts

Marketing environment analysis

Marketing strategy

Marketing mix

Agenda

Part 1: Marketing Intro

Marketing conceptual definitions 1. Mar·ket·ing  /ˈmärkitiNG/- The act or process of selling or purchasing in a market -The process or technique of promoting and selling products or services.

(Webster English dictionary)

2. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

(AMA, 2007)

3. Marketing is the management process which identifies, anticipates, and supplies customer requirements efficiently and profitably.

(UK Chartered Institute of Marketing)

“Marketing is putting the right product in the right place, at the right price, at the right time.”

Marketing managementThe art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

What can be marketed??

Services

Products Places

Ideas People

Sales: trying to get the customer to want what the company

produces

Marketing: trying to get the company produce what the

customer wants

Marketing v/s Selling

Main Goals of Marketing

Help to boost product salesPromote the product and corporate

awareness to the publicBuild corporate’s reputation

To attract new customer by promising superior value

To keep current customers by delivering satisfaction.

Needs: • Human basic requirements of food,

clothing, warmth, and safety

• Marketers do not create needs, needs

pre – exist marketers

Abraham Harold Maslow

(1908 – 1970)

Maslow's hierarchy of needs

Wants:• Specific objects might satisfy the need

• Shaped by culture and individual personality.

• People have almost unlimited wants but limited

resources.

Demands: • Desire to acquire

• Willing to buy

• Ability to pay

Product• ‘Product’ refers to the functions

and features of a good or service• Satisfy the needs of consumers• ‘Product’ also includes a range of

factors such as packaging, quality, warranties, after-sales service and branding

Need – food ( is a must )

Want – Pizza, Burger, French fry's ( translation of a need as per our experience )

Demand – Burger ( translation of a want as per our willingness and ability to buy )

Desire – Have a Burger in a five star hotel

Warm up Activity:

- Work in group of 5 persons (20 mins ).- Choose one product or service (new or market pre-existed) and one country, (market) that you/ your corporation have intention to do the business.

Eg: Café Trung Nguyen in USA, Pho Bat Dan in France…- Present your idea on class in 5 minutes to introduce about your proposed project and give detailed information to support the effectiveness of the project

Product life cycleStage 1: Research & Development –

high costs but no sales

Launch – high expenditure on promotion and product development, low sales

Stage 2: Growth: – sales increase and product should break-even

Stage 3: Maturity – sales stabilise, less expenditure on promotion needed, revenue & profit should be high

Satge 4: Decline – sales decline, extension strategies can be adopted or the product withdrawn

Growth - Slump – Maturity• Sales grow rapidly

• Product is first

introduced, falls, & stabilizes

Cycle-Recycle

• Sales grow rapidly

• Downfall, recover and down again

Scalloped

Succession of life-cycles based on discovery of new charcteristics, uses or

users.

Some Product life cycle patterns

Market

The group of consumers/organizations interested in the product/service has resource to purchase.

Penetrated market

Target market

Available market

Potential market

Those who have interested in acquiring the product (potential customer)

Those in the potential market who have enough money to buy product

The segment of the available market that the firm decided to serve (target customer)

Those in the target market who have purchased the product (current customer)

Market Classification

Market Segmentation

• Market segment: A sub-group of people or organizations sharing one or

more characteristics that cause them to have similar product needs

• Market segmentation: The process of dividing a market into

meaningful, relatively similar, identifiable segments or group

• Why we have to do market segmentation:

– Market have variety of product needs and preferences

– Help marketers better define customer and allocate the right resources

Market Segmentation Bases

Geography

Demographics

Psychographics,

Benefit sought

Usage rate

Region, market size, climate

Age, Gender, Income, Ethnic group, Marriage status

Personality, Motives, lifestyleBenefits, features customers seek from productAmount of product bought or consume

Pareto principle

80% effort create 20% results80% of total customers only generate 20% of the demand and usage while 20% of the rest will crate 80% usage use

Target market analysis

Identify your target market. Identifying your target market will help you use your resources more wisely as you market your company to a specific, manageable group of people.

1

Describe your target market demographically. Demographic characteristics include age, gender, marital status, family size, income, education level, occupation, race, and religion.

2

Describe your target market psycho-graphically. Psycho graphic information

tells you about your audience's attitudes, beliefs, emotions, and values.

3

© It is difficult to meet everyone's needs with a single product or service.

Describe your target market behavioristically. Behavioristic information helps you understand why someone purchases one product or service over another. It includes how often your target market buy the product, how much or how many they buy, if there was a specific occasion for using it, and how long it took them to decide to buy that product.

4

Orange – cutting Activity• Work in group (10 min)

• Do the market segmentation for your business

Eg: what is your target market, potential market (geographically, consumer

characteristics…)

• Present on class

Cus·tom·er  /ˈkəstəmər/A person or organization that buys goods or services from a store or other business.

(Webster dictionary)

ConsumerA person who purchasesgoods and services for

personal use

CustomerImplies a relationship over

time between the buyer and a particular brand or retail

outlet.

...the emotional, mental and physical activities that people engage in when selecting, purchasing using, and disposing of products and services so as to satisfy needs and desires.

Consumer behavior is…

Buying is not just a necessary activity but an attractive and highly approved way of behaving.

“Consumption is the sole end and purpose of all production.”

-Adam Smith-

Consumer satisfaction

Dependent on a product’s perceived performance in delivering value relative to a buyer’s expectation.

Value and Satisfaction

Expectation

Perceived value

6 10

Perceived value

6 10

Expectation

If the perceived value is lower than the expectation of consumer, the satisfaction is low or even un-satisfaction and vice versa