Principle of Marketing ISB 2021 Slides

Principal of Marketing
Lecture 1: Key Concepts in

Marketing
Delivered by: Dr. Long Nguyen
Creating a good class atmosphere -
guidelines
 Respect for each other
 Attendance, participation & punctuality
 Communication
 Use of technology
 Meeting the deadline
Learning Outcomes
Demonstrate an understanding of the underlying philosophy of the
marketing concept and its strategic importance for business.
Demonstrate an understanding of the key marketing concepts and how they
are applied within a business context.
Show an ability to analyse marketing situation critically, offer marketing
solutions and justify and support recommendations with marketing theory
and examples from industry.
Conceptualise broadly the marketing process and how the various elements
of the marketing mix, specific marketing tools and related theory fit
together to make up a complete marketing overview.
Demonstrate an understanding of the differences between goods and
services, consumers and business markets and the implications to marketers
managing these varied businesses.
Demonstrate capability in written and oral communication and analytical
skills in a marketing context.
Lecture Agenda
 Day 1: Marketing concept, X-ray the Business
 Day 2: Scanning the Environment
 Day 3: Market Segmentation
 Day 4: Targeting the right market
 Day 5: Market Positioning & Branding
 Day 6: Marketing Strategy: Product
 Day 7: Marketing Strategy: Price
 Day 8: Marketing Strategy: Place
 Day 9: Marketing Strategy: Promotion #1
 Day 10: Marketing Strategy: Promotion #2
 Day 11: Team Presentation
Assessment
 Assessment 1 (Individual) (40%):Quizz
 Assessment 2 (Individual) (30%) Business
Analysis Report
 Assessment 3 (50%): Team Project –
Marketing Strategy
 Further information will be provided during

the classes & tutorials
KEY CONCEPTS OF MARKETING
What Is Marketing?
Marketing is all around you…

The fruit seller has to:
 Understand her market
 Distribute her fruits at the
right place
 Sell them at the right price
 Be alert of who else are selling
fruits or possible substitutes
 Make sure that she offers
superior customer value
Copyright ©2014 by Pearson Education

What is Marketing?
 Marketing is the process by which
companies create value for customers
and society, resulting in strong
customer relationships which capture
value from the customers in return
 Marketing is the Art of War in Business

What is Marketing?
 Marketing
 The marketing management
philosophy that holds that achieving
organizational goals depends on
determining the needs and wants of
target markets and delivering desired
satisfactions more effectively and
efficiently than competitors.
 Marketing Management
 The art and science of choosing target
markets and building profitable
relationships with them
Marketing Framework
Marketing STP
Targeting
Product, Price
Market Brand Product

Segmentation
Analysis Positioning Development
Consumer
Place Insight
Pricing
Distribution Approach
Promotion (Execution) Creative

Idea
Promotion Promotion
Below Above the
the line line
Expanded Model for Marketing Process
Marketing’s role in the
organization
Major differences between
strategic marketing and
marketing management
Value & Satisfaction
Customer Customer Customer

Value Satisfaction Expectations
 Customer Value
 The difference between the benefits that the
customer gains from owning and/or using a
product and the costs of obtaining the product
 Customer Satisfaction
 The extent to which a product's perceived
performance matches a buyer's expectations
 Customer Expectations
 Based on past buying experiences, the opinions
of friends, and market information
Exchanges & Relationships and Markets
MARKET
Exchange vs. Relationships

Lifetime Value of the Customer
 Losing a customer means losing more than

a single sale.
 Itmeans losing the entire stream of
purchases that the customer would make
over a lifetime of patronage.
 A company can lose money on a specific
transaction but still benefit greatly from a
long-term relationship.
 This is one of the reasons successful
companies empower employees to
resolve customer complaints.
Lifetime Value of the Customer
 Share of Customers: the portion of the

customer’s purchasing that a company
gets in its product categories and beyond.
 Customer Equity: the total combined

customer lifetime values of all of the
company’s customers
X-RAY THE BUSINESS
Where are we? Who are we?
Internal
External
Meaning of strengths and
weaknesses
 Strengths refer to the competitive advantages
and other distinctive competencies that the
company can exert in the marketplace.
 The distinctive competence of an organization

is more than what it can do; it is what it can
do particularly well.
 Weaknesses are constraints that hinder

movements in certain directions.
Area of strength
Some areas of strength as far as marketing

is concerned are:
 Excellence in product design and/or
performance
 Leadership in product innovation
 Effectiveness in sales promotion
 Merchandising efficiency
 Customer loyalty
 Dominant market share position, deal
from position of strength
 Effectiveness of advertising
Area of weaknesses
Typical marketing weaknesses include:

• Inadequate definition of customer for
product/market development
• Ambiguous service policies
• Too many levels of reporting in the
organisational setup
• Overlapping channels
• Lack of top management involvement in
new product development
• Lack of quantitative goals
Characteristics of a High-
Performance Business
Stakeholders Processes
(directly & indirect (how tasks pass
influence marketing from department to
operation) department)
Resources Organization
(insource & (structure, policies, and
outsource) culture)
Principal of Marketing
Lecture 2: Scanning the
Environment
SCANNING THE ENVIRONMENT
SWOT: External factors
 The macro-external environment: the
economic, social, cultural, political,
legal, demographic, technological issues
and their effects
 The market: market size, potential,
structure and trends
 The consumer:
 who, what, when, why, how?
 the consumer's wants, gaps, opportunities
 attitudes, involvement in decision making
 social and cultural trends affecting purchase
SWOT: External factors
 Competitors:
 direct, indirect and potential competitors
 size, performance
 level of threat and vulnerability
 Strengths,weaknesses, competitive
advantages
 product, price, positioning, distribution etc.
Microenvironment

Microenvironment
Suppliers
 Provide the resources to produce goods and services

 Treat as partners to provide customer value

Microenvironment
Marketing Intermediaries
Help the company to promote, sell and distribute its
products to final buyers
Types of Marketing Intermediaries
Physical
Resellers distribution
firms
Marketing
Financial
services
intermediaries
agencies
Microenvironment
Publics
 Any group that has an actual or

potential interest in or impact on
an organization’s ability to
achieve its objectives
 Financial publics
 Media publics
 Government publics
 Citizen-action publics
 Local publics
 General public
 Internal publics

Microenvironment
Customers
 Consumer markets
 Business markets
 Government markets
 International markets
Markets of Tiger Beer?

Microenvironment
Competitors
 Firms must gain strategic advantage by positioning

their offerings against competitors’ offerings
Companies that
offer similar services Companies that
to the same make the same
customers at a product or class of
similar price products
Companies that
Companies that
compete for the
supply the same
same consumer
service
dollars

Porter’s model of industry
competition
Macroenvironments
PESTLE Analysis
Management
Orientations
Trends in the Political &
Legal Environment
Increased Legislation and Regulation
Changing Government Agency

Enforcement
International Politics
Economic Trends
Changes Economic The Global

In Income Trends Economy
The Super Rich

Economic Trends
Social - Demographic Trends
Changing Age The Changing

Structure of Increasing
Traditional
the Diversity
Family
Population
A Better
Geographic Educated,
Shifts in More
Population Professional
Population
Social - Cultural Environment
Socially
Cultural Cultural
Environment Responsible
Values
Behavior
Environment (Natural)
Growing Shortages
of Raw Materials
Increased Increased
Government Pollution
Intervention
The Changing Marketing Landscape
Changing
The Digital Rapid
Economic
Age Globalization
Environment
Sustainable The Sharing

Co-Creation
Marketing Economy
A.I.
Local Health and
Experiences Science-based well-being
target
SEARCHING FOR
POTENTIAL MARKET
Identifying markets to serve
Why research first?
“Reseach is what I’m doing

when I don’t know what I’m doing.”
— Wernher von Braun
Source: Brands Vietnam – Passport to research

The scope of marketing
research
 American Marketing Association
Marketing research is the function that

links the consumer, customer, and public
to the marketer through information—
information used to identify and define
marketing opportunities and problems;
generate, refine, and evaluate marketing
actions; monitor marketing
performance; and improve
understanding of marketing as a
process.
Research categories
 Customer & Market research
 Product Research
 Promotional Research
 Distribution research
 Sales Research
 Market Environment Research
Source: Brands Vietnam – Passport to research

Assessing Marketing Information
Needs
Characteristics of a Good MIS
 Balancing what the information users would like to

have against what they need and what is feasible to
offer
User’s
Needs
MIS
Offerings
Assessing Marketing Information Needs
 What types of decisions do you make regularly?
 Strategic decision, Operational decisions, Marketing decision,
Financial decision..
 What types of information do you need to make these
decisions?
 Qualitative data vs. quantitative data
 What information would you want daily? weekly?
monthly? yearly?
 What topics would you like to be kept informed about?
 current issues, new trends, customers…
 What databases would be useful to you?

 Internal vs. external , Free vs. Paid, Market intelligences
MARKETING RESEARCH PROCESS
Marketing Information System

Research Process
1. Marketing Research Objectives
Managers often start with exploratory research and
later follow with descriptive and/or causal research
To gather preliminary information

that will help define the problem
and suggest hypotheses
Exploratory
Causal Descriptive
•To test hypotheses about cause- •To describe the size and
and-effect relationship composition of the market
2. Develop the Data Collection Plan
Collecting Marketing Information
Marketers obtain information from
Internal data
Marketing intelligence
Marketing research

External Data
 Government Data
 Publicly available reports (including Internet)
 Academic Articles/Journals
 Networkings
 Customer Advisory Panels
 Trade Associations
 Books, Magazines
External Data – Reliable sources
• Available reports from high profile research firms

• Nielsen
• TNS
• WeAreSocial
• Digital trends: https://datareportal.com
• Kantar
• Euromonitor
• Marketline
• WARC
External Data – Reliable sources
• Available reports from high profile research firms

• Dentsu
• McKinsey Research
• Delloitte
• Google
• JWT Intelligence
Popular Web/Social Analysis tools
AUDIENCE
INSIGHT/ TREND
WEBSITE
SOCIAL MEDIA
Brands Insight
Data Consumers Insight
Mining
Sentiment Product Innovation

Rating
Marketing Measurement
Social Trends
Developing Marketing Information
Marketing Research
Planning Primary Data

Collection
Research
approaches
Contact methods
Sampling plan
Research
instruments

Market Research
Research Approaches
Observational research involves gathering primary

data by observing relevant people, actions, and
situations
Ethnographic research involves sending trained
observers to watch and interact with consumers in
their natural environment

What can be observed?
What can be observed?
Market Research
Research Approaches
Survey research is the most widely used method and

is best for descriptive information—knowledge,
attitudes, preferences, and buying behavior
 Flexible
 People can be unable or unwilling to answer
 Gives misleading or pleasing answers
 Privacy concerns
Experimental research is best for gathering causal

information—cause-and-effect relationships

Market Research
Research Approaches
Mail Telephone Personal Online

Flexibility Poor Good Excellent Good
Quantity of data Good Fair Excellent Good
collected
Control of Excellent Fair Poor Fair
interviewer effects
Control of sample Fair Excellent Good Excellent
Speed of data Poor Excellent Good Excellent

collection
Response rate Poor Poor Good Good
Cost Good Fair Poor Excellent

Market Research
Contact Methods
 Focus Groups
 Six to 10 people
 Trained moderator
 Challenges
 Expensive
 Difficult to generalize from small group

 Consumers not always open and honest

Marketing Research
Online Contact Methods
Internet Online
surveys panels
Online Online focus

experiments groups
Marketing Research
Sampling
Sample is a segment of the population selected for

marketing research to represent the population as
a whole
 Who is to be studied?
 How many people should be studied?
 How should the people be chosen?

Marketing Research
Sampling
Probability Sample
Simple random sample Every member of the population has a known and equal
chance of selection
Stratified random The population is divided into mutually exclusive groups
sample and random samples are drawn from each group
Cluster (area) sample The population is divided into mutually exclusive groups
and the researcher draws a sample
Nonprobability Sample
Convenience sample The research selects the easiest population members
Judgment sample The researcher uses their judgment to select population
members
Quota sample The researcher finds and interviews a prescribed number
of people in each of several categories

Marketing Research
Implementation
Collecting the information

Processing the information
Analyzing the information
Interpret findings
Draw conclusions
Report to management

Principles of Marketing
Lecture 3: Understand the
Consumers
CONSUMPTION BUYING
BEHAVIOUR
Model of Consumer Behavior
Consumer buyer behavior : the buying

behavior of final consumers, individuals and
households, who buy goods and services for
personal consumption
Consumer market : all of the personal

consumption of final consumers

Figure: Model of buyer
behavior
INFLUENTIAL FACTORS OF
CONSUMPTION BUYING
BEHAVIOUR
Figure: Factors influencing
behavior
Cultural Factors
Values Perceptions
Cultural
Factors
Wants Behaviors
Culture. The set of basic values, perceptions, wants, and behaviors

learned by a member of society from family and other important
institutions.
Subculture. A group of people with shared value systems based on
common life experiences and situations.
Cross-cultural marketing. the practice of including ethnic themes and
cross- cultural perspectives within the mainstream marketing of the
organization.
Cultural Factors
Characteristics Affecting
Consumer Behavior
Culture factors
 Which are culture factors that Honda Vietnam consider

when designing the motorbike in Vietnam?
Culture. The set of basic values, perceptions, wants, and behaviors

learned by a member of society from family and other important
institutions.
Subculture. A group of people with shared value systems based on
common life experiences and situations.
Cross-cultural marketing. the practice of including ethnic themes and
cross- cultural perspectives within the mainstream marketing of the
organization.

Social Factors
Word-of-Mouth
Online Social
Groups Influence and
Networks
Buzz Marketing
Family Role and Status

ConsumerGroups
Behavior
and Social Networks
Membership Aspirational Reference

Groups Groups Groups
• Groups with • Groups an • Groups that
direct individual form a
influence wishes to comparison
and to belong to or reference
which a in forming
person attitudes or
belongs behavior
Consumer Behavior
Groups and Social Networks
 Word-of-mouth influence and buzz marketing

 Opinion leaders are people within a reference group
who exert social influence on others
 Also called influentials or leading adopters
 Marketers identify them to use as brand ambassadors
 Online Social Networks are online communities where
people socialize or exchange information and opinions
 Include blogs, social networking sites (facebook), virtual
worlds (second life)

Personal Factors
Age & Life- Economic

Occupation
Cycle Stage Situation
Personality
Lifestyle & Self-
Concept
Consumer Behavior
Personal Factors
Occupation affects the goods and services bought by

consumers
Economic situation includes trends in:
Personal Interest
Savings
income rates

Characteristics Affecting Consumer
Behavior
Personal Factors
Lifestyle is a person’s pattern of
living as expressed in his or
her psychographics
 Measures a consumer’s AIOs
(activities, interests,
opinions) to capture
information about a person’s
pattern of acting and
interacting in the
environment

Personal Factors
Pet Owner Lifestyle: Why people want to own a pet?
Age & Life- Economic

Occupation
Cycle Stage Situation
Personality
Lifestyle & Self-
Concept
Psychological Characteristics
Motivation Perception
A person has many demands at A motivated person is ready to
any given time. A demand act. How that person acts is
becomes a motive when it is influenced by his or her
aroused to a sufficient level of perception of the situation.
intensity
Learning Belief & Attitude

•When people act, they learn…
Learning describes changes in A belief is a descriptive thought that
an individual's behavior arising a person holds about something. An
from experience. When attitude describes a person's
consumers experience a relatively consistent evaluations,
product, they learn about it feelings, and tendencies toward an
object or an idea
Maslow Hierarchy of Need
Consumer Behavior
Psychological Factors
Perception is the process by which people

select, organize, and interpret
information to form a meaningful
picture of the world from three
perceptual processes
 Selective attention
 Selective distortion
 Selective retention

Consumer Behavior
Psychological Factors
 Learning is the change in an individual’s behavior

arising from experience and occurs through
interplay of:
Drives Stimuli Cues
Responses Reinforcement

TYPE OF BUYING BEHAVIOUR
AND PROCESS
Types of Buying Decision Behavior
Complex buying behavior
Dissonance-reducing buying behavior
Habitual buying behavior
Variety-seeking buying behavior

Types of Buying Decision Behavior
Four Types of Buying Behavior
consumers buying carpeting may

table salt, sugar
face a high-involvement decision
because carpeting is expensive and
self-expressive, but not much
difference in brandings
B2C Consumer Behaviours
Identify
Needs Product/Service Product/Service
Important
Recognition Description Search
Factors
Shortlist Product/Service Experience Performance

and Evaluation Selection Product/Service Review
Need Recognition
 Occurs when the buyer recognizes a problem or

need triggered by:
 Internal stimuli
 External stimuli
The Buyer Decision Process
Information Search
Sources of Information
 Personal sources—family and friends
 Commercial sources—advertising, Internet
 Public sources—mass media, consumer organizations
 Experiential sources—handling, examining, using the
product
Evaluation of Alternatives
 How the consumer processes information to arrive at

brand choices
Purchase Decision
 The act by the consumer to buy the most preferred brand
 The purchase decision can be affected by:
 Attitudes of others
 Unexpected situational factors
Post-Purchase Decision
 The satisfaction or dissatisfaction that the consumer

feels about the purchase
 Relationship between:
 Consumer’s expectations
 Product’s perceived performance
 The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction
 Cognitive dissonance is the discomfort caused by a
post-purchase conflict

Consumer Journeys
Slide 1.98
The Organizational Buying Process
Complex
Large Sums
Technical
of Money
Features
Interactions
Economic
among Many
Considerations
People
Participants in the
Organizational
Buying Process
User
Gatekeeper Influencer
Buyers Deciders
Approval
Major Influences on
Organizational Buyers
Environmental Organizational
Influencers
Interpersonal Individual
B2B Consumer Behaviours
General
Problem Product Supplier
Need
Recognition Specification Search
Description
Proposal Supplier Order-Routine Performance

Solicitations Selection Specification Review
CONSUMER INSIGHT
Customer Insights
Slide
1.104
 Deep discovery” about our

consumers that can be
leveraged to change attitude
or behavior
 It’s told in such a captivating
way that makes consumers
stop & say “hmm, I thought I
was the only who felt like
that”
 Unknown or overlooked
knowledge about consumer
behaviors & attitudes
Customer Insights –
Motivator, Barrier, Triggers Slide
1.105
• Motivators – what are the

ways to help them stick with
the new behavior (reward/
identity/ desirable/ fun/
popular…)
• Barriers – what are the things
that stop people from
adopting a new behavior? (not
easy/ impossible/ not
convenient…)
• Triggers – how could we get
people to start a new
behavior? (the right moment/
urgent event/ influencer…)
Steps to get a good insight
 Direction: Firstly take note of the
phenomenon that you want to find the
insight, then choose a suitable research
method (e.g. focus group discussion, in-depth
Interview, observation, home visit)
 Discover: Keep asking “Why” until finding a
happy insight judged by your own intuitions
 Double-check: Via criteria “Checking an
insight”
+ Is it deep enough?
+ Can it inspire an innovation?
+ Can it be leveraged to change
attitude/behavior? + Can make people say
“ahhhhaaaa”?
Lecture 4: Market Segmentation
STP Strategy
1. Market 2. Market 3. Market

Segmentation Targeting Positioning
S T P
 A Market Segment is a group of customers who respond in a
similar way to a given set of marketing efforts
 Market Targeting is the process of evaluating each market
segment’s attractiveness and selecting one or more segment to
enter.
 Market Positioning : Arranging for a product to occupy a clear,
distinctive, and desirable place relative to competing products in
the minds of target consumers.
SEGMENTATION
Why do we segment markets?
1. Deliver messages to target markets
2. Prevent wasted coverage to people who

are not part of the target market.
Market segmentation is the process that companies

use to divide large markets into smaller groups that
can be reached more efficiently and effectively
with products and services that match their unique
needs.
Segmenting Markets
Demographic Geographic
Benefits
Psychographic
Sought
Behavioural
(Wells et al. 2011)

1. Demographic Segmentation
Dividing the market into groups based on variables such as:
 Age
 Life-cycle stage or family size

 Gender
 Income
 Occupation
 Education
 Religion
 Race
 Nationality
2. Geographic Segmentation
 May include city, district, region of the
country, countrywide, areas of similar
weather patterns, density of population, etc
 Often used in conjunction with demographic,
psychographic or behavioural variables to
produce a more powerful segmentation of
audience. Eg: geo-demographic mapping
technology.
3. Psychographic Segmentation
 demographics = ‘who’
 psychographics = ‘why’ or ‘how’
 Psychographic segmentation involves dividing your
market into segments based upon different personality
traits, values, attitudes, interests, and lifestyles of
consumers.
 Measures values & attitudes such as:
 perceptions
 motivations
 personality
 memories and emotions
 lifestyle
4. Behavioural Segmentation
 Behavioural segmentation divides audience by
behaviours – how often they buy and use, what
habits they have, different ways of interacting
with the product or service etc.
May include variables such as:
- purchase frequency (daily, weekly, monthly)
- customer loyalty/usage (existing users, non-
users, lapse-users)
- attitude to product (positive, negative, neutral)
- purchase occasions
- readiness stage
- methods of using
Market Segmentation
Segmenting International markets
Geographic Economic
location factors
Political- Cultural
legal factors factors

Market Segmentation
Requirements for Effective Segmentation
To be useful, market segments must be:
Measurable Accessible
Substantial Differentiable
Actionable

TARGETING
STP Strategy
1. Market 2. Market 3. Market

Segmentation Targeting Positioning
S T P
 Market Targeting is the process of evaluating each
market segment’s attractiveness and selecting one or
more segment to enter.
 Market Positioning : Arranging for a product to
occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target
consumers.
Market Targeting
Market Targeting
S1 S2 S3
P1
P2
P3
Selective
Specialization
P = Products
S = Market Segment
Market Targeting
S1 S2 S3
P1
P = Products
S = Market Segment P2
P3
Products
Specialization
Market Targeting
S1 S2 S3
P1
P2
P3
Market
Specialization
P = Products
S = Market Segment
Market Targeting
S1 S2 S3
P1
Grab-Car
P2
Grab-E-
Grab-Bike
Bank/Credit
P3
Market
Specialization
Grab
Grab-
GrabFood
Delivery
P = Products
S = Market Segment
Grab
GrabPay
ECommerce
Market Targeting
S1 S2 S3
P1
P = Products
S = Market Segment
P2
P3
Full Market
Coverage
Market Targeting
S1 S2 S3
P1
P2
P3
Single Segment
Concentration
Market Targeting
 Concentrated Marketing: especially appealing to
companies with limited resources. Instead of going for a
small share of a large market, the firm pursues a large
share of one or a few small markets.
 Ex: Four Seasons Hotels, Six Senses, and Rosewood Hotels
concentrate on the high-priced hotel room market.
Market Targeting
 Micromarketing is the practice of tailoring products
and marketing programs to suit the tastes of specific
individuals and locations. Rather than seeing a
customer in every individual, micro-marketers see the
individual in every customer.
 Local marketing involves tailoring brands and
promotions to the needs and wants of local customer
groups
Market Targeting
 SoLoMo (social+local +mobile). Marketing that targets
on-the-go consumers as they come and go in key local
market areas
 Ex: Guests looking for local dining and sightseeing
suggestions can follow
Market Targeting
Choosing a Target Market
Depends on:
 Company resources
 Product variability
 Product life-cycle stage
 Market variability
 Segment size and growth
 Competitor’s marketing strategies

Lecture 5: Market Positioning & Branding
Prepared by: Dr. Long Nguyen
What is a Brand?
 A name, term, sign, symbol, or design, or a combination of them intended to

identify the goods and services of one seller or group of sellers and to
differentiate them from those of competition.
(Rossiter and Bellman, 2005, Marketing Communication: theory and
applications. Pearson Education Australia.)
(Yeshin 2006: xvi–xvii)

Branding/Brand Management
 The process of creating a unique identity for the
product or service
Watch the video and note down what is a brand?
https://www.youtube.com/watch?v=JKIAOZZritk http://www.youtube.com/watch?v=k5016fh7TgQ
The brand awareness pyramid
Top of mind
Brand awareness relates to whether a brand

Brand recall
name comes to mind when consumers think
about a particular product category.
Brand
Measuring Awareness: recognition
> Recognition: easier to achieve because it is
based on a consumer recognising a brand Unaware of the brand
when given cues.
> Recall: harder to achieve; requires more exposures to advertising because it involves a
consumer accurately remembering a brand with or without cues.
> Top of mind awareness, a pinnacle of brand name awareness exists when a company’s
brand is the first brand that consumers recall when thinking of a particular product
category.
Source: Chitty, Barker & Shimp, 2005, Fig. 1.6, p.16

Market Positioning
Positioning is the process of developing an image
consistent with customer perception
Product Differentiation
 Differentiation is the act of designing a set
of meaningful differences to distinguish the
company’s offering from competitor’s
offerings.
Differentiation and Positioning
 Identifying a set of possible competitive advantages to
build a position
 Choosing the right competitive advantages
 Selecting an overall positioning strategy
Competitive advantage is the advantage over competitors

gained by offering greater value either through lower
prices or by providing more benefits that justify higher
prices.
prices.
build a position

prices.
build a position

prices.
Market Positioning
A difference is worth establishing if it is:
Important Distinctive Superior
Communicable Preemptive Affordable
Profitable
Although company’s can try to position themselves any way they

desire, ultimately it is the customer who defines the company’s
actual position.
Choose the right competitive advantage
1]. Important: The difference
delivers a highly valued benefit
to target buyers.
Important 2]. Distinctive: Competitors do
not offer the difference, or the
company can offer it in a more
Profitable Distinctive distinctive way.
3]. Superior: The difference is
superior to other ways that
customers might obtain the
same benefit.
Competitive 4]. Communicable: The
advantages
difference is communicable and
Affordable Superior visible to buyers.
5]. Preemptive: Competitors
cannot easily copy the
difference.
6]. Affordable: Buyers can
Pre- Communicable afford to pay for the difference.
emptive
7]. Profitable: The company can
introduce the difference
profitably.
RMIT University Vietnam Introductory of Advertising 141
Market Positioning - Make the differentiation
 Physical Attribute Differentiation: Ex: Raffles in Singapore,
Continental hotel in Vietnam (Historic building)
 Service Differentiation: Ex: Hilton offers Hilton Huanying,
as a point of service differentiation for the growing Chinese
market. The service includes a welcome note in simplified
Chinese upon arrival, at least one television channel in
Mandarin, tea kettles in the room, and a Chinese breakfast
 Personnel Differentiation: Singapore Airlines enjoys an
excellent reputation largely because of the grade of its
flight attendants.
 Location Differentiation
 Image Differentiation
Market Positioning
Find your USP for competitive
advance
 (Unique Selling Proposition)
 And stand out from the crowd!
 All advertising must make a proposition
to the customer:
Buy this, and you will receive a
specified benefit.
 The proposition must be unique;
something competitors cannot claim,
or have not chosen to emphasize in
their promotions.
 The proposition must be so compelling
that it motivates individuals to act.
Selecting an Overall Positioning Strategy
Value proposition is the full

mix of benefits upon which
a brand is positioned

Perceptual Mapping
d
Perceptual Mapping
d
 Brand Identity vs image
 Brand identity: a combination of factors including: name,
logo, symbols, design, packaging and performance of a
product or service that the company wants to build.
 Brand Image: the consumers’ perception about a brand.
Encompasses the entire spectrum of consumers’ awareness,
knowledge and image of a brand as well as the company
behind it. It is the sum of all points of encounter or contact
that consumers have with the brand (Belch & Belch: 14)
 Brand personality
 The character of a brand expressed in human terms (eg.
reliable, friendly, sophisticated)
Lecture 6: Marketing Mix - Product
Marketing Mix Components
• People • Process
What are Products?
Products, Services, and Experiences
Product is anything that can be offered in a

market for attention, acquisition, use, or
consumption that might satisfy a need or want
Service is a product that consists of activities,
benefits or satisfaction that is essentially
intangible and does not result in the ownership
of anything
Physical goods, services, experience, events,
persons, places, properties, organizations,
information and ideas
150
Product Classification by the ratio of
tangible and intangible components
Air Tickets Medicare
Soap Cars Restaurant
Sightseeing Music
Clothes TV’s Computer Tour Concert
Purely Mostly Half and Half Mostly Purely

Tangible Tangible Intangible Intangible
Products
 Product levels (aka Customer Value Hierarchy)
 Core benefit
Fundamental service or benefit that the
customer is really buying
Ex: Core Product: A four-day holiday in Nha Trang isn’t a plane
ride, hotel room, taxis, and meals. Depending on the visitor, it
might be:
• Cultural enrichment
• a return to one’s roots
• Safe adventure
• Romance
• Family gathering
154
Components of Products
 Basic
product
Marketers turn the core benefit into a basic
product, which answers the following
question: What is the buyer really buying?
 Expected product: Value of money

Attributes and conditions that buyers
normally expect when purchasing this
product
Don’t sell the feature, sell the benefit

Think about the apartment, what are
features, what are benefits? 155
 Facilitating
products
Those services or goods that must be
present for the guest to use the core
product.
People may not need to use the facilitating
product/services, but without the availability of
these facilitating products/services, they don’t
buy your core products
156
 Supporting products
 But unprofessional delivery of supporting
products can do more harm than good
Ex: Complimentary room service for fresh food
Ex: Fast delivery
Ex: Insurance cover by payment with credit card
157
 Augmented product
Products that are provided to exceed
customer expectations. It is about
additional consumer services and benefits
built around the core and actual products.
The augmented product is an important
concept because some products/services
require customer coproduction of the
service
Augmented benefits soon become
expected benefits
158
Atmosphere: Physical environment is appreciated
through the senses. Sensory terms provide descriptions for
the atmosphere of a particular set of surroundings.
 Visual: color, brightness, size, and shape.
 Aural: volume and pitch
 Olfactory: scent and freshness
 Tactile: softness, smoothness, and temperature.
These factors stimulate the consumption of a product.
159
Customer Interaction with other customers
 Hospitality organizations must manage the interaction of
customers to ensure that some do not negatively affect the
experience of others.
 Ex: Corporate guest vs. leisure family and tour travelers
 Strengthen the interactions among like-minded customers
 Ex: hotels transform their lobbies into places to work, surf the
Web, or meet friends for a drink.
160
Ex: Customer Interaction with Service Delivery
System
Joining stage: We must make it easy for people
to learn about the new product. This information
must be delivered in a professional way.
 Consumption stage: Physical features, layout,
and signage, employees, other customers can
also be used to help customers interact with the
product.
 Detachment phase is when the customer is
through using a product and departs. Guests need
some services to support
161
MARKETING MIX
Product
Product Life Cycle
Claims of Product Life Cycles
 Products have a limited life
 Product sales pass through distinct stages each
with different challenges and opportunities
 Profits rise and fall at different stages
 Products require different strategies in each
life cycle stage
 The PLC concept can describe a product class
(fast-food restaurants), a product form (fast-
food hamburgers), or a brand (Popeyes).
1-163
Sales and Product Life Cycle
1-164
Product Life Cycle - Introduction
 The introduction stage starts when the new product is
first made available for purchase
 Being a pioneer involves risk, but the pioneers are then
in an excellent position to defend their market share
against attacks by late arrivals.
Product Life Cycle - Introduction
 Companies focus on selling to buyers who are ready to
buy, usually the higher- income groups. Prices tend to
be on the high side, but sometime is low side since
product lines are new and not popular
Product Life Cycle - Growth
 If the new product satisfies the market, it enters the
growth stage and sales start climbing quickly.
 The early adopters continue to buy, and later buyers
start following their lead, especially if they hear
favorable word of mouth
 Companies keep their promotion spending at the same
or at a slightly higher level to meet competition and
continue educating the market
 More competitors, a company faces a trade-off between
high market share and high current profit.
Product Life Cycle - Maturity
 At some point a product’s sales growth slows down, and
the product enters the maturity stage. Most producers
are in the maturity stage of the life cycle, and
therefore, most marketing management deals with
mature products.
To manage the cycle to extend its life
 Product Modification
 Market Modification
 Marketing Mix modification
What can Baileys do when their product

reach to Maturity stage?
Sales and Product Life Cycle
The McDonald’s of today is a different concept than the McDonald’s of

the 1960s. The menu and the store design are different.
1-169
1-169
MARKETING MIX
Product
New Product Development
New Product Challenges
 Once a company has…

 Segmented the market
 Chosen target customer groups
 Determined positioning
…it is ready to develop and launch new

or revised products.
 It can be organised by:
 New product managers
 New product committees
 New product teams
171
Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
Two-Way Product-Line Stretch:
Marriott Hotels
Quality
Economy Standard Good Superior
Marriott
High Marquis
(Top
executives)
Price
Above Marriott
average (Middle
managers)
Average Courtyard
(Salespeople)
Fairfield Inn
Low (Vacationers) 1-173
New Product Development Process
174
Lecture 7: Marketing Mix - Pricing
Pricing
 Price is :
 The amount of money charged for a product
or service
 The sum of the values that consumers
exchange for the benefits of having or using
the product or service.
 The only marketing mix element that
produces revenue. All others represent cost.
 Pricing and price competition as the number-
one problem facing marketing executives.
Factor affect pricing decisions
Marketing Mix Strategy: Price must be coordinated with
product design, distribution, and promotion decisions to
form a consistent and effective marketing program
Cost: covers its costs for producing, distributing, and
promoting the product, and delivering a fair rate of return
to investors.
 Fixed costs. Costs that do not vary with production or
sales level.
 Variable costs. Costs that vary directly with the level
of production.
 Total costs. Costs that are the sum of the fixed and
variable costs for any given level of production.
Cost subsidization: Some services need to consider the
guarantee spending or costs to third parties to ensure the
business operate as usual.
What are the cost subsidization for Tour operator?
Organisational Consideration: Top management set the
price, not marketing or sales department
 Marketing & Demand: Both consumer and channel
buyers such as tour wholesalers balance the product’s
price against the benefits it provides
Ex: Hotel rooms sell through Agoda, Selling products
through Amazon, Lazada, Tiki
 Consumer Perceptions of Price and Value: We can’t
see the value of our product. We can only set price.
The market value is set by our customers and our
ability to sell to it.
 Analyzing the Price–Demand Relationship:
The price elasticity of demand
 Analyzing the Price–Demand Relationship:
The price elasticity of demand
 Price Sensitivity:
 Unique Value Effect
 Substitute Awareness Effect
 Business Expenditure Effect
 End-Benefit Effect
 Total Expenditure Effect
 Hidden fees
 Competitors’ Price and Offers:
 Price
compression occurs when the difference
between room rates for three- to four- and five-star
properties is not significant.
 Other External Elements: Economic factors, reseller
costs, government controls
Pricing Approaches
Cost-Base Break-Even
Pricing Pricing
Adding a standard markup Estimate the revenue and
to the cost of the product. pricing based on that figures
Value-Based Competition-Based
Pricing Pricing
Uses the buyer’s perceptions Setting price based largely on
of value, not the seller’s cost, following competitors’ prices
as the key to pricing. rather than on company costs or
demand.
Pricing Approaches
•Cost-Based Pricing
•The simplest pricing method is cost-plus pricing, which
is adding a standard markup to the cost of the product
•Markup pricing remains popular for many reasons
•Sellers are more certain about costs than about
demand
•Tying the price to cost simplifies pricing
•Managers do not have to adjust prices as demand
changes
Pricing Approaches
•Value-Based Pricing
•An increasing number of companies are basing their
prices on the products' perceived value
•Value-based pricing uses the buyers' perceptions of
value, not the seller's cost, as the key to pricing
•Value-based pricing means that the marketer cannot
design a product and marketing program and then
set the price
•Price is considered along with other marketing mix
variables before the marketing program is set
•The company uses the non-price variables in the
marketing mix to build perceived value in the buyers'
minds, setting price to match the perceived value
Major Pricing Strategies
Customer Value-Based Pricing

Pricing Approaches
•Break-Even Pricing
•The firm tries to determine the price at which it will
break even
•Target Profit Pricing
•A variation of break-even pricing
•Targets a certain return on investment
Pricing Approaches
 Break-Even Pricing
BE = Fixed Costs/Contribution (Selling Price – Variable Cost)
Ex: BE = $300,000/$10 ($20 Selling Price – $10 Variable Cost) = 30,000 meals
Pricing Approaches
•Competition-Based Pricing
•A strategy of going-rate pricing is the establishment of
price based largely on those of competitors, with less
attention paid to costs or demand
•The firm might charge the same, more, or less than
its major competitors
New Product Pricing
Strategies
Prestige
Pricing
Market- Market-
Penetration Skimming
Pricing Pricing
Price-Adjustment Strategies
Discriminatory Revenue
Pricing Management
 Discriminatory pricing: Segmentation of the market

and pricing differences based on price elasticity
characteristics of the segments
 Revenue management (new approach) involves the
development and use of different rate classes based on
the projected demand for the service.
Existing Product Pricing
Strategies
Product-Bundle Existing Product Price-Adjustment

Pricing Pricing Strategies Strategies
Pricing Approaches
 Product Bundle Pricing:
 Customers have different maximum prices or
reservation prices they will pay for a product.
Packaging products, we can transfer the surplus
reservation price on one component to another
component of the package
 Ex:Themes park, entertainment, hotels, food &
beverage, transportation
 Theprice of the core product can be hidden to avoid
price wars or the perception of having a low-quality
product
Pricing Approaches
 Dynamic packaging: A package vacation on a single
Web site in which buyers can put together airline
flights, lodging, car rental, entertainment, and
tours in their own customer- designed packages.
 Customers have different maximum prices or reservation
prices they will pay for a product. Packaging products, we
can transfer the surplus reservation price on one
component to another component of the package
Psychological pricing
 Reference prices: Prices that buyers carry
in their minds and refer to when they look
at a given product
 Setting the price at reference price but
with different product features
 Price number: Each digit has symbolic and
visual qualities that should be considered in
pricing.
 Because the number 8 is round, it creates
a soothing effect, whereas 7 is angular,
creating a jarring effect.
Case: Quick, What are good price for...?
Other Internal and External Consideration
Affecting Price Decisions
Economic conditions
Reseller’s response to
price
Government
Social concerns

Lecture 8: Marketing Mix – Place
(Distribution)
Distribution Channel Functions
Information Promotion Contact Matching
Physical
Negotiation Financing Risk Taking
Distribution
Number of channel levels
 Channel level: A level of middleman that
performs some work in bringing the product
and its ownership closer to the final buyer.
 Direct marketing channel: A marketing
channel that has no intermediary levels.
Retailer: Business whose sales come
primarily from retailing.
 Wholesaler. Firms engaged primarily in
wholesaling activity.
Distribution channels
Channel Management Decisions
Selecting Managing Motivating Evaluating

channel channel channel channel
members members members members

Channel Management Decisions
Understanding Develop Trade MKT Plan Measurement

Engagement
3 key stakeholders (Channel MKT Plan) & Tracking
Consumer/ Channel Retailers / Activity

4 Sales-force
MKT Plan Customers Effectiveness
Shopper
Channel Annual JBP (MT) ROI

3
POP Strategy Planning &
Quarterly
Channel &
Brand Partnership Promotion
Retailer Alignment
Channel Programs (GT) Effectiveness
2
Objective
Sales Brief Trade Events

Channel
1
Analysis
Source: Brands Vietnam – Trade Marketing

Selecting the distribution channels
support for
% contribution corporate
brand fit strategies
year-on-year
growth
volume sales
Source: Brands Vietnam – Trade Marketing

Public Policy and Distribution
Decisions
Exclusive distribution is when the seller
allows only certain outlets to carry its
products
Exclusive dealing is when the seller
requires that the sellers not handle
competitor’s products
Exclusive territorial agreements are where
producer or seller limit territory
Tying agreements are agreements where
the dealer must take most or all of the
line
Lecture 9: Marketing Mix: Integrated
Marketing Communcation #1
Communicating Customer Value: Integrated
Marketing Communications Strategy
 The Promotion Mix

 Integrated Marketing Communications
 A View of the Communications Process
 Steps in Developing Effective Marketing
Communication
 Setting the Total Promotion Budget and Mix
 Socially Responsible Marketing
Communication

Promotion & Promotional Mix
 Promotion: Any marketing effort whose
function is to inform or persuade actual or
potential consumers about the merits of a given
product or service for the purpose of inducing a
consumer to either continue or start to purchase
the firm's product or service at some given
price.
 Promotional Mix: The specific mix of
advertising, personal selling, sales promotion,
public relations, direct and digital marketing
that a company uses to pursue its and marketing
objectives.
213
Promotional Objectives
 Expose as many target consumers as possible
to the message.
 Inform customers that the products and
services exist.
 Gain the customers’ undivided attention. Get
the consumer to stop, listen and take notice of
the message.
 Get the target segment to understand and
interpret the message in a manner intended by
the marketer.
 Influence the consumer to buy the product or
service.
214
PROMOTION MIX COMPONENT
Integrated Marketing Communication
Awareness, Stimulate Demand

Elements in the Communication Process
Diagram source: Tench & Yeomans (2006) – Exploring Public Relations
ADVERTISING
Advertising
 Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an
identified sponsor
• Type: Broadcast, print, Internet, outdoor, and
other forms.
 Reaches many buyers
 Repeat message many times
 Impersonal
 Expensive
220
Types of Advertising
Brand advertising focuses on
the creation and sustenance
of a long-term brand identity
and image.
Retail advertising focuses on

stimulating store traffic and
creating a distinctive image
for the retailer.
Wells W, Spence-Stone R, Moriarty S & Burnett J 2008, p.10-12

Direct-response advertising tries to
stimulate a sale directly through
telephone or mail, and the product is
delivered directly to the consumer by
mail or some other carrier.
Business-to-business (B2B)
advertising is sent from one business
to another. Ads are placed in professional
publications or journals.
- wholesalers
- Retailers
- Industrial purchasers
- Professionals (Dentists, Lawers)
Wells W, Spence-Stone R,
Moriarty S & Burnett J 2008,
p.10-12
Institutional/corporate advertising
focuses on establishing a corporate
identity or winning over the public to
the organisation's point of view.
Not-for-profit-advertising is done by
organisations such as charities,
foundations, associations, hospitals.
Government advertising refers to

advertising that can be described
as being in the public's interest, and
political advertising.
Wells W, Spence-Stone R,
Moriarty S & Burnett J
2008, p.10-12
Major Advertising Decisions
Developing the Advertising
Campaign
 Television ads
 Vividly demonstrates product attributes

 Persuasively explains consumer benefits
 Portrays usage imagery/brand
personality
 Product/brand can be overlooked
 Creates clutter
 Easy to ignore or forget ads
Campaign
 Print ads
 Provide detailed product information

 Flexibility in design and placement
 Can be fairly passive
 Newspapers popular for local ads
 In steady decline
 Poor reproduction quality
 Short shelf life
Campaign
 Radio ads
 Occurs in the car and out of home

 Main advantage is flexibility
 Ads are relatively inexpensive
 Can be schedule to air quickly
 Effective when run in morning
 Can be extremely creative
 Can tap into the listener’s imagination
Developing the Advertising Campaign
Advertising
 Plus  Minus
 Reach widely dispersed
target audience at low CPM • Impersonal
(Cost Per Mille/Cost per
Thousand Views) • One way Communication
 Seller can repeat message • Costly

many times
 Consumers see advertised • Wastage/Clutter/noise
brands as better
• Credibility
 Can dramatize brand or
product
PUBLIC RELATIONS
Public Relations vs. Advertising
232
Public Relations
 Building good relations with the
company’s various publics by obtaining
favorable publicity, building up a good
corporate image, and handling or
heading off unfavorable rumors, stories,
and events
233
Public Relations
 Building good relations with the
company’s various publics by obtaining
favorable publicity, building up a good
corporate image, and handling or
heading off unfavorable rumors, stories,
and events
234
Public Relations
Public Relations
 Marketing public relations (MPR) tasks
Launching Repositioning
new mature
products products
Building Building
corporate interest in
image product
Defending
Influencing
problem
target groups
products
Public Relations
 Marketing public relations (MPR) tools
Public Relations
 Plus  Minus
 Higher credibility • Free media coverage
 Can reach prospects can’t be secured
who avoid sales • PR practice and
people & ethics are under
advertisements challenge
• Can’t control
 Can dramatise
message
company, product or
brand
 Adds real value to
small budgets
Advertising Versus Public Relations
FACTOR ADVERTISING PR
Control Great Little
Credibility Lower Higher
Reach Achievable Undetermined
Frequency Schedulable Undetermined
Cost Specific Unspecified/low
Flexibility High Low
Timing Specifiable Tentative
Choosing Media for Adv & PR
 Choosing among major media types
Evaluating Effectiveness
 Communication-effect research
 In-home tests, trailer tests, theater tests,
on-air tests
 Sales-effect research
 Historical approach
 Experimental data
Lecture 10: Marketing Mix: Integrated
Marketing Communcation #2
DIRECT MARKETING
Direct Marketing
Direct-mail marketing involves an offer,
announcement, reminder, or other item to a
person at a particular address
 Personalized
 Easy-to-measure results
 Costs more than mass media
 Provides better results than mass media
Direct Marketing – Forms
 Catalog direct marketing involves printed and
Web-based catalogs
Benefits of Web-based Challenges of Web-
catalogs based catalogs
• Lower cost than • Require marketing
printed catalogs • Difficulties in
• Unlimited amount of attracting new
merchandise customers
• Real-time
merchandising
• Interactive content
• Promotional features
Telephone direct marketing involves using the
telephone to sell directly to consumers and business
customers
 Outbound telephone marketing sells directly to
consumers and businesses
 Inbound telephone marketing uses toll-free numbers
to receive orders from television and print ads,
direct mail, and catalogs
 Kiosk marketing
 Digital direct marketing
technologies
 Mobile phone marketing
 Podcasts/Vodcasts
 Interactive TV
 Web-based/email
Podcasts and vodcast involve the downloading of audio
and video files via the Internet to a handheld device
and listening to them at the consumer’s convenience
Interactive TV (ITV) lets viewers interact with

television programming and advertising using their
remote controls and provides marketers with an
interactive and involving means to reach targeted
audiences
PERSONAL SELLING
Personal Selling
 Personal Selling: Personal presentation by the
firm’s sales force for the purpose of making sales
and building customer relationships
 Type: sales presentations, trade shows, and
incentive programs.
 Personal Interaction
 Relationship-building
250
Personal Selling –
Designing the Sales Force
 Types of sales representatives
Deliverer Order taker
Solution Missionary
vendor
Demand
Technician
creator
Sales force objectives
Sales force strategy
Sales force structure
Sales force size
Sales force compensation

 Four types of sales forces
A geographic sales force calling on
customers in different territories
A distributor sales force calling on and
coaching distributors
 Four types of sales forces
 An inside sales force marketing and
taking orders online and via phone
Managing the Sales Force
Recruiting
Selecting
Training
Supervising
Motivating
Evaluating
Six Steps in Effective Selling
Prospecting &
Pre-approach
qualifying
Follow-up & Presentation &

maintenance demonstration
Overcoming
Closing
objections
Personal Selling
 Plus  Minus
 Can build buyer’s • Requires longer term
preferences & actions commitment
 Allows personal • Most expensive
interaction (two-way) promotion tool
• Can’t reach a mass
 Allows customer
audience
relationships to
develop
 Buyers usually needs
to listen & respond
SALES PROMOTION
Sales Promotion
 Short-term incentives to encourage the
purchase or sale of a product or service, let
customer trial your services
 Wide assortment of tools

 Rewards quick response
 Effects are short-lived
259
Sales Promotion - Tools
260
261
262
263
264
265
Sales Promotion
 Developing the program
Incentive
Conditions
size
Total sales
promotion Duration
budget
Distribution
Timing
vehicle
Sales Promotion
 Plus  Minus
 Attracts consumer • Can dilute the brand
attention image
 Offers strong incentives • Can make loyal
to try/purchase consumers cynical
• Can make them become
 Can dramatise product
conditioned consumers
& boost sales
• Effects are short-lived
 Invites & rewards quick • Not as effective as
customer response building long term brand
preference & loyal
customer relationships
EVENTS & EXPERIENCES
Event & Experiences
 Events objectives
1. To identify with a target market or lifestyle
2. To increase salience of company/product name
3. To create/reinforce key brand image associations
4. To enhance corporate image
5. To create experiences and evoke feelings
6. To express commitment to the community or on
social issues
7. To entertain key clients or reward employees
8. To permit merchandising/promotional
269 opportunities
Event & Experiences
 Major sponsorship decisions

 Choosing events
 Designing sponsorship
programs
 Measuring sponsorship
activities
270
Event & Experiences
Measuring
• Measure outcomes, not • Measure results of emotional

outputs connections
• Define/benchmark objectives • Identify group norms
on front end • Include cost savings in ROI
• Measure return for each calculations
objective • Slice the data
• Measure behavior • Capture normative data
• Apply assumptions/ratios
used by other departments
271
Integrated Marketing
Communication
Integrated Marketing
Communications
 A full and consitent marketing activities to support the

marketing objectives
 In the consumer’s mind, brand content from different
sources become part of a single message about the
brand or company.
 Conflicting content from these different sources can
result in confused company images, brand positions,
and customer relationships.
273
Integrated Marketing Communications
274
Factors influencing Promotional Mix
 Buyer Readiness State
 Awareness
 Liking
 Preference
 Conviction
 Purchase
 Stage in the Product Life Cycle

 R & D/Introduction
 Growth
 Maturity
275
 Decline
Buyer Readiness stage
Micromodel of Consumer Responses
 With an ideal marketing communication campaign:
1. The right consumer is exposed to the message at
the right place and time
2. The IMC causes the consumer to pay attention
3. The IMC reflects consumer’s level of understanding
of brand
4. The IMC positions points-of-difference and points-
of-parity
5. The IMC motivates consumers to consider purchase
6. The IMC creates strong brand associations
Steps in Developing Effective
Communication
Identify the Determine the

Design the
Target Communication
Message
Audience Objectives
Select the Select the

Measure the
Communication Message
Results
Channels Source
Developing Effective
Communications
 Identify the target audience
 Set the communications objectives
 Establish need for category
 Build brand awareness
 Build brand attitude
 Influence brand purchase
intention
Marketing Objectives
To know
To understand
To think
Objectives
To act To remember
To feel
To achieve
To believe
Marketing - Objectives
Communication Action
Objectives Objectives
Brand Awareness and Brand Observable, measurable,

Preference actual behaviours/actions.
•Make sales inquiry
•Create brand recognition •Visit store
•Change brand attitude •Brand trial
•Create brand preference •Brand retrial/repeat purchase
•Redeem coupons
•Enter the contest
•Recommend product to others
Rossiter and Bellman (2005)
Marketing Strategy – Objectives -
SMART
Specific - Who and What?
Written clearly, for anyone in the office to understand.
Measurable - How Much?

Know if the goal is obtainable and how far away completion is.
Know when it has been achieved.
Achievable - Can it be done?

Agreement with all the stakeholders what the goals should be.
Realistic/Relevant - Is this our first priority? Who is going to do it? Do they

have the skills to get it done? Is the budget sufficient?
Timely - By when?
Enough time to achieve the aim.
Establish the Marketing
Communications Budget
 Affordable method
 Percentage-of-sales method
 Competitive-parity method
 Objective-and-task method
Selecting the Marketing
Communications Mix
 Advertising
 Sales promotion
 Events and experiences
 Public relations and publicity
 Online and social media marketing
 Mobile marketing
 Direct and database marketing
 Sales force
Managing Integrated
Marketing Communications
 Coordinating media & implementing IMC
Coverage Contribution
Cost Commonality
Conformability Complementarity
Setting the Total Marketing Budget
o Affordable method: Set a promotion budget at what

they think the company can afford.
Percentage
Affordable
Budget of Sales
Methods
Competitive Objective
Parity and Task
• Percentage of Sales Method: setting their promotion
budget at a certain percentage of current or forecasted
sales, or they budget a percentage of the sales price.
Percentage
Affordable
Budget of Sales
Methods
Parity and Task
• Competitive Parity Method: Setting their promotion

budgets to match competitors’ outlays.
Percentage
Affordable
Budget of Sales
Methods
Parity and Task
• Objective and Task Method: marketers develop their promotion budgets by
o (1) defining specific objectives,
o (2) determining tasks that must be performed to achieve these objectives
o (3) estimating the costs of performing them.
o The sum of these costs is the proposed promotional budget.
Percentage
Affordable
Budget of Sales
Methods
Parity and Task

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Principal of Marketing

Lecture 1: Key Concepts in

 Further information will be provided during

Marketing is all around you…

Copyright ©2014 by Pearson Education

 Marketing is the Art of War in Business

Market Brand Product

Promotion (Execution) Creative

Customer Customer Customer

Exchange vs. Relationships

 Losing a customer means losing more than

 Share of Customers: the portion of the

 Customer Equity: the total combined

 The distinctive competence of an organization

 Weaknesses are constraints that hinder

Some areas of strength as far as marketing

Typical marketing weaknesses include:

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 Provide the resources to produce goods and services

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 Any group that has an actual or

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Markets of Tiger Beer?

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 Firms must gain strategic advantage by positioning

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Increased Legislation and Regulation

Changing Government Agency

Changes Economic The Global

The Super Rich

Changing Age The Changing

Sustainable The Sharing

“Reseach is what I’m doing

Source: Brands Vietnam – Passport to research

Marketing research is the function that

 Market Environment Research

Source: Brands Vietnam – Passport to research

 Balancing what the information users would like to

 What databases would be useful to you?

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To gather preliminary information

Marketers obtain information from

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• Available reports from high profile research firms

• Available reports from high profile research firms

Sentiment Product Innovation

Planning Primary Data

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Observational research involves gathering primary

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Survey research is the most widely used method and

Experimental research is best for gathering causal

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Mail Telephone Personal Online

Speed of data Poor Excellent Good Excellent

Cost Good Fair Poor Excellent

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 Difficult to generalize from small group

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Online Online focus

Sample is a segment of the population selected for

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Collecting the information