VALUE PROPOSITION CANVAS

1. Definition: a tool which can help ensure that a product or service is positioned around
what the customer values and needs.
2. How it works:
The Value Proposition Canvas is formed around two building blocks – customer
profile and a company’s value proposition.

3. Pros and cons:

● Pros:
Focus on the right direction (target customers, their needs and wants)
Raise customer engagement
Convey a well-fitting message to the customer (What is remarkable about
your product?)
=> useful to startups and entrepreneurs
● Cons:
Loss of canvas distinction (fail to differentiate between two parts)
Overload with customer segments -> may mix all categories into a single
chart -> misfocus -> the value of products goes down
Improper way of filling
4. Analysis of an example:
 IMPULSE PURCHASE
1. Definition: An impulse purchase or impulse buying is an unplanned decision to buy a
product or service, made just before a purchase.
2. How it works: Impulse buying is all about emotions and feelings rather than logic and
planning. The person’s sudden decision to purchase something is the result of
suddenly seeing the product.
Impulse buying may also be due to exposure to an extremely effective promotional
message. Impulse purchases occur with a wide range of products. The consumer
may suddenly decide to buy.
3. Types of impulse purchase:
● Pure Impulse: an unplanned novelty purchase, e.g. casually browsing Etsy
and buying a handmade ceramic sculpture you like
● Reminder Impulse: seeing a product and remembering that you need it, e.g.
buying AA batteries at checkout to power a gadget you just bought
● Suggestive Impulse: seeing a product and visualizing a need for it, e.g.
purchasing socks after seeing them listed as a recommended product on an
ecommerce website that sells shoes
● Planned Impulse: taking advantage of a promotional offer with an unplanned
purchase, e.g. adding an item to your cart to reach a free shipping threshold

IMPACTS OF COVID 19 ON ONLINE SHOPPING BEHAVIORS

1. The changes in online shopping behaviors of customers
- Increasing tendency to buy health-related products (E.g. hand sanitizers, cleaning
products, telemedicine, etc.)
- Technology-related activities have skyrocketed due to lockdown (e.g. online
education, online gaming, telecommuting)
- People opt for online shopping rather than going to offline stores for fear of contagion
2. Recommendations for business
- Utilize e-commerce platforms in order to meet the customers’ needs
- Improve the delivery system (e.g. faster delivery with minimal contact to customers
for safety concerns)
- Adapt the products to what the customers are buying
- Offer discounts and incentives (e.g. free shipping)
- Utilize social media to get closer to the customers

B2B AND B2C BUSINESS MODELS

1. B2B:
- Definition: the marketing of products or services to other businesses and
organizations.
- Example: automobile manufacturing (companies sell small components to those
manufacturing cars)
- Pros:
Improve brand awareness
Encourage business growth
Maintain customer loyalty (as long as your company can maintains the quality/service
of your products)
Easier communication (communicate directly to a company/organization, not a group
of individuals)
- Cons:
High competition amongst rivals
Limited market (deal with transactions between businesses) -> risky for
small-medium businesses
Lengthy decision
2. B2C:
- Definition: the process of selling products and services directly between a business
and consumers who are the end-users of its products or services.
- Example: most companies that sell products directly to customers can be called B2C
business (online retailers)
- Pros:
Unlimited market -> promote business growth
Easy business administration since the customers can navigate themselves
Good customer services in order to maintain the loyalty of the customers
Cost-effective
- Cons:
High competition
Website needs to be capable of handling multiple orders at once
Difficult to get repetitive customers and need to invest more in online marketing

MULTIPLE CHOICE
1. When setting a price, the first step is to select a pricing policy.
2. In Marketing, exploratory research is to gather preliminary information that
may suggest hypotheses.
3. Some car manufacturers concentrate on the small-car market and some
others on the sports car market. Which of the following patterns of target
market selection have these firms chosen? single-segment
4. ____________ is a firm’s sales in relation to total industry sales.
competitive environment/relative market share/sales performance/none of
the above
5. Customer Lifetime Value is the value of the entire stream of purchases that
the customer would make over a lifetime of patronage.
6. The marketing concept holds that a company marketing decisions should
consider the company’s requirements, consumers’ wants and long-run
interests, and society’s long-run interests.
7. The alternative to cost-based pricing is value-based pricing.
8. Which element is not a component of the 4Cs from the buyer’s viewpoint?
convenience/competition/communication/none of the above
4Cs: consumer-cost-communication-convenience
9. Major groups of influencing factors on consumer behavior do not include:
demographic factors/situational factors/personal factors/none of the above
● demographic factors: Socioeconomic characteristics of a population
expressed statistically, such as age, sex, education level, income level,
marital status, occupation, religion, birth rate, death rate, average size of a
family, average age at marriage

10. The first step in the business buying process is problem recognition.
11. Sometimes a consumer is highly motivated in a purchase but sees little
difference in brands. Under these circumstances, he/she will likely engage in
dissonance-reducing buying behavior.
● dissonance-reducing buying: khách hàng thường trải qua quá trình
tìm kiếm, chắt lọc thông tin về sản phẩm nhưng họ lại rất khó cảm
nhận được sự khác biệt của từng thương hiệu mà họ chọn. Cho nên
khách hàng thường ngả về quyết định mua chỗ nào thuận tiện hoặc
giá cả phải chăng.
12. Macroenvironment does not include company’s resources.
13. Microenvironment does not include population.
14. Pricing method suitable to FMCG is penetration pricing.
● penetration pricing: attract customers to a new product or service by offering
a lower price during its initial offering
15. The most valuable level of brand equity is: brand acceptability/brand
awareness/brand preference/none of the above
16. Customer’s discomfort can lead to a cognitive dissonance.
● cognitive dissonance: occurs when a person chooses between two equally
attractive or equally unappealing options.
17. New product categories:
New-to-the-world products
New category products
Product line extensions
Product improvements
Product repositioning
Cost reductions
18. Marketing Mix 4Ps:
19. In IMC, the approach, style, tone, words, and format used for executing an
advertising message is commonly called: key message/creative concept/big
idea/none of the above
20. Private label refers to distributor’s own-branded products.
21. Comparative advertising encourages switching to a brand.
22. Business buying situation:

23. A consumer product that the consumer either does not know about or knows
about but does not normally consider buying is categorized as an unsought
product.
Types of product:
● Convenience products

● Shopping products

● Speciality products

● Unsought products

24. Full frontal attack is typically market challenger’s strategy.

25. Focus group aims to gather qualitative data.

26. Demands are human wants that are backed by buying power.

27. SWOT analysis:

28. Advertising is any paid form of nonpersonal presentation and promotion of

ideas, goods, or services by an identified sponsor.

29. Catalog marketing is not a form of direct marketing.

30. Which is not part of the three characteristics advertising appeals should have:

meaningful/distinctive/comparative/conventional

31. Typical characteristic of a message receiver: selective

32. Product level:

33. Product Life Cycle:

34. Webrooming vs. Showrooming:

35. Five marketing concepts:

36. Product customization is a part of micromarketing strategy.
37. By designing marketing programs for member card holders, shopping malls
are actually using a behavioristic variable for segmenting the market.