Content

A. INTRODUCE.............................................................................................................................2

B. FINDINGS AND DISCUSSION................................................................................................3

CHAPTER 1: OVERVIEWS OF COURSE....................................................................................3

1.1 Summary of knowledge....................................................................................................3

1.2 Important of the subject “ Undertanding to Business”.....................................................3

CHAPTER 2: THE MOST INTERESTING CHAPTER................................................................4

2.1 Introduce the Marketing........................................................................................................4

2.2 Marketing evolution in four fields.........................................................................................5

2.3 Marketing Mix.......................................................................................................................6

2.4 Marketing Research.............................................................................................................11

2.5 Marketing Envinroment.......................................................................................................13

2.6 Consumer Market................................................................................................................17

2.7 Market segmentation:.........................................................................................................18

2.8 Selection of a target market................................................................................... 19

2.9 Marketing in small marketing..............................................................................................20

2.10 Building marketing relationship........................................................................................21

2.11 Five Factors Affecting Buying Acts..................................................................................22

Part 3: CASE STUDY: KFC’s MARKETING STRATEGY IN VIETNAM...............................23

C.CONCLUSION..........................................................................................................................28

REFERENCE................................................................................................................................29

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 A. INTRODUCE

The development of a multi-sector commodity economy operated under the state-

controlled market mechanism and the development of science and technology promoting
various economic forms. The type of businesses develops at the same time creates an
increasingly competitive environment. The trend of integration and internationlization
creates a lot of advantages gor business but also many difficulties. Businesses must be
dynamic, flexible in deploying effectively each production, business plan and using
existing resources like people, machines, equipment rationally
In the trend of integrating into the regional and world economy in the spirit of economy
renovation, the expansion of business activities into the domestic and foreign
environment is an indispensable trend. This will create opportunities and challenges for
business and for the whole economy, especially for Vietnam – a developing economy. A
specially important factor in developing a market economy is Marketing. Therefore,
group chose the Marketing topic as the focus of the article, from there, it was possible to
reach and gain more knowledge on how to do marketing with a new trend, “Helping
buyers buy”.
The final report consists of three parts:

- Part 1: Overviews of course

- Part 2: Analyse a favorite chapter-chapter 13: Marketing: “Helping Buyers Buy”
- Part 3: Case study of the marketing mix strategy of KFC

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 B. FINDINGS AND DISCUSSION

PART 1: OVERVIEWS OF COURSE

1.1 Summary of knowledge

The course has 9 chapters of the basics of the business: opportunities and challenges in
the business environment, the impact of the economy on businesses, forms of businesses,
the ways to form and face challenges in a modern business environment, hiring
employees, planning marketing strategy and using marketing mix effectively to increase
sales and develop.

1.2 Important of the subject “ Undertanding to Business”

It has an important role. This is fundamental knowledge for every student. Solid
foundation knowledge creates a positive motivation in research, learning to specialized
subject.
Impact: giving students an overview of business, understanding how business operates.
Objective: students have knowledge about business, manage environment and they can
be applied to practice for research and work.
Benefit: help to identify objectively, so you can find the field that suits yourself about
your future career.

1.3

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 PART 2: THE MOST INTERESTING CHAPTER

2.1 Introduce the Marketing

2.1.1 Define the marketing:

According to the US Trade Organization, marketing is the process of setting a plan,

implementing the plan, determining products and prices, promoting, spreading ideas,
distributing goods and services to customers to meet the goals of individuals and
organizations.
The important forms of marketing are basic marketing and marketing online.
Basic marketing is the formation of the process of production, trading, transportation and
exchange of goods and services.
Marketing online is advertising activities for goods and services on the internet which
connects customers around the world.
The objective of marketing: satisfying customers’ needs, increasing competitive
advantages and getting long-term profits.
Finding ways to connect the business’ message to customers is the most important object
of marketing.
2.1.2 Key modern marketing (marketing online)
The same things are attracting potential customers, having trust production to get a lot od
revenue and benefits.
Table 2.1: The different between marketing online and marketing offline (traditional
marketing)

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 Marketing online Marketing offline

Methods Using the internet to advertise: Using mass media: the

email, the social network, channel, the newspapers, the
video, mobile devices. banner.

Scale There is no limit of countries, There is a limit of countries,

national borders and regions. national borders and region.

Advertising time Anywhere and anytime, quick Time is limited.

response
It takes them a few minutes to It takes them a lot of time and
get information of production. effort to change the label.

Customers Choosing specific customers Choosing specific customers

are possible, connecting is impossible
directly to customers
Expenses Lower Higher
We can put an advertisement in We can only put an
a little of money. advertisement once.

The ability to store Easy and quick Difficult

information

2.1.3 Cross-selling form in marketing

It is an activity of selling additional products to customers who will be purchasing
products of the business. For example, audiences usually buy popcorn and soft drink in
the cinema because they are not allowed to bring foods to the cinema.

2.2 Marketing evolution in four fields

Production (before 1930): business focused on production.

Selling (from 1920 to 1970): the productive competition was increased. It created
redundancy and investory.
Businesses focused on convincing customers through sales advertising. They moved
from mass production to selling what customers need.

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Marketing concept (about 1950s): Businesses considered customers as kings. They set
short plan to response customers’ need.
Customer relationship (from 1990 to early 2000): Businesses applied CRM plans-many
employees in the same company worked together to find and response customers’need.

2.3 Marketing Mix

It is about placing the right products or combining them at the right place, at the right
time and price. The goal is to please the customers and make a profit. It includes four
factors that create a comprehensive combination of marketing.
2.3.1 Product: an important role, is the foundation, the backbone of marketing strategy.
Products can be tangible products ( computers, food, clothing, appliances), intangible
products ( forms of delivery, repair, training services) or other ideas to satisfy
customers’need.
To succeed in product strategy you must answer the following questions
What will you sell?

-Many kinds of products such as:

+ Convenience good: something that people often have to buy at a low cost (ice cream,
magazines, toothpaste,ect.)
+ Shopping good: what they will consider shopping and compare products of different
brands (furniture, clothes, electronics,ect.)
+ Special good: special things they will only buy a few times, such as an expensive gift
or luxury items (motorcycles, antiques, collection, ect.)
+ Unsought good: something that consumers do not know and do not want to buy unless
special circumstances (accident insurance, burial services, fire extinguishers,ect.)
Do customers really need your product?
Your product may be an existing product or a completely new product
+ New product: It is nesscesary to find the market and convince people that they need it.
It creates a demand for the product.

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+ Products are improved from other products: showing people that it is better and
cheaper than the competitor’s products.
So the test marketing process is very necessary. Test marketing is a tool in order to test
the viability of new products based on consumer reactions before the product is launched
on a large scale.
Why do customers have to buy your products? ( Is your product different from other
competitor’s product?)
Quality: you must ensure the core benefits of the product. The technical, physical and
chemical properties (formulas, material components,ect.), usage characteristics (shelf
life, durability,ect.) have been improved and surpassed outperform other competing
products.
-Design: color, style, comfort, youthfulness suitable for customers
-Trademarks: the role of trademarks is to mark products through images, languages or a
combination of images and languages. A brand name must say something about the
benefits, qualities of products. It is easy to read, write and recognize.
-There are also services attached to the products that play an important role in bringing
customers back to use your product: delivery, warranty, free repair, product maintenance.
2.3.2 Price: the price is a monetary unit that customers have to spend to get a product
with quality, at a time in a certain place. It affects consumption of goods and the profit of
the business.
For customers, prices have a strong impact on spending, so prices are often an important
criterion of their buying and choice.
So how much is your product ?
Product price is based on a component structure such as:
2.3.2.1 The cost of the product ( fixed costs and variable costs )
- Fixed costs: costs do not change according to the level of production.
+ Example: cash, insurance, salary, rent,ect.
-Variable cost: the costs that change directly according to the level of production.

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+ Example: raw materials, packaging, ect.
If the cost of the business is higher than the cost of the competitors when to produce and
sell an equivalent product, the enterprise will have to set a higher price then it will be at a
disadvantage compete.
2.3.2.2 Product prices of competitors
This is an external factor affecting the pricing of products.
Consumers often judge the price and value of a product based on the price and value of
similar products. Low price usually means lower quality of goods than competitors. A
high price will make the cost far customer’s benefit, so they will value their money more
than your product.
Thus, businesses must always put themselves in a relationship with competitors to adjust
accordingly.
2.3.2.3 The amount of money that customers are willing to pay for your product
If your product price is too low, it may cause customers to think the product has poor
quality or you will have less profit.
If the price is too high, customers may buy less or buy smaller quantities.
2.3.3 Place: this is the work of selecting the cycle and distribution channels.
Role: moving products from manufactures to final consumers through various methods
and activities of intermediary members.
2.3.3.1 Where can people buy your product ?
A distribution channel that combines all members involved in the distribution process for
manufactures, service providers, wholesalers, retailers, agents and consumers.
-Costs and profits are affected by the choice of the distribution channel
+ Companies pay all distribution fees by itself. Conversely, they will collect all profits.
+Companies use intermediary to reduce distribution costs, the profits are reduced because
intermediaries must also enjoy their contribution.
On the other hand, the total profit of the company may increase if the selling price of the
intermediary exceeds that of the self – distributing company.
-Middlemen are an important in the place strategy:
+ They have the ability to understand the market, the needs of customers.
+ Support to provide services to customers
+ Affecting price decisions

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+ Bridging manufacturers with consumers
Example: After 1986, consumers have been able to buy goods at markets, private retail
stores and department stores. In addition, we can buy goods at supermarkets, online
convenient store 24/24h, ect.
Building a reasonable distribution strategy will make the business process safe, increase
the ability to connect in the business, reduce competition and make the process of goods
circulation fast.
2.3.4 Promotion: Promotion is the effect of businesses to inform, remind, persuade and
encourage customers to buy products, as well as understand the business. Thanks to
promotion, products are sold faster.
How can people find out information about your product or business before making a
purchase ?
2.3.4.1 Advertising: Businesses have to pay a sum of money to show information about
the quality or advantages of products to customers by using media.
- There are many tactics you can use to promote your products to potential customers:
+ Advertising on the internet, social media and other online advertising techniques
+ Attend trade shows, fairs and events
+ Direct marketing by phone (telemarketing), letters and e-mail
In essence, advertising is often public (many people receive information publicly), spread
(overwhelming and repeating information), amplify and do not force people like selling.
Customers often believe that strong brands must have good value.
2.3.4.2 Personal selling: salespeople use face-to-face communication to potential
customers to present, introduce, consult and sell products.
Goal: lead customers to the product and purchase behavior
Sales staff have flexible interaction to meet customer needs. They can persuade, answer
questions and develop sales relationships.
However, businesses need to use labor intensive and difficult to reach a large number of
customers.
- Personal sales process:
+ Find out the needs of potential customers

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Today, it is very easy to see feedback on social networks. People share their experience
of something with a huge update without cost. It can give businesses a large number of
potential customers.
2.3.4.5 Sales promotion: a process which stimulating and encouraging activities in a short
time to encourage the purchase of certain goods or services.
Goal: leading to demand and depend on the object is distribution intermediaries or
consumers
-Distribution intermediaries: increasing the sale of products and distributors’ reserves,
encouraging to buy at a time when customers are not available, encouraging to support
for new products and sell a lot of goods to businesses (Trade promotion).
-Consumers: encouraging to buy more products, try products and buy back products;
attracting customers from competing brands; increasing brand awareness (Consumer
promotion).
-Promotional tools: depending on the promotional object that businesses choose different
promotion tools.
+ Distributor: discounts, gift, sales, support, bonuses
+ Consumer: gifts, coupon, games, try the product
The promotion is only effective in a short time. It will be ineffective when building long-
term brand preference.
The company that wants to win in the market must meet the needs of its customers
effectively with the right products and prices, create convenience for customers and have
reasonable communication.
2.4 Marketing Research
Marketing research is the systematic process of collecting and analyzing data on issues
related to marketing activities ( markets, potential customers, good and services sold on
the market ) to make the right decisions.
Role: + Collecting information about what people buy, why they chose it and what they
want in the future
+ Discovering market trends, global trends and views of people within the company and
its stakeholders
+Identifying and measuring business opportunities

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+ Providing information to plan and implementing marketing mix strategy
Marketing research process:
2.4.1 Determine the problem and the current situation:
Identifying problems and research objectives is the first and most difficult step in the
research process. If false detection of the problem, the research methods are also
misleading and lead to useless costs. For example, the problem of declining sales can
come from many reasons such as market segmentation, target market selection, product
price.
Therefore, marketing researchers must distinguish the phenomena and nature of the
problems, which are opportunities or challenges for businesses.
2.4.2 Data collection:
Data collection may be carried out or outsourced by the company. If the company
proceeds it, the document will be more confidential. If the company outsources, the data
collection will be faster.
Before deciding to research, businesses also need to know the cost of researching
because it can become costly. There are two main data sources for market research:
secondary information and primary information.
-The least expensive method is to combine information that has been complied by others,
or previously collected from many sources. Secondary data source is the available data
source:
+Internal sources: reports of the company on costs, revenues, profits
+ External sources: books, newspaper, magazines, online, commercial publications, state
research,ect.
Secondary data sources are often inexpensive, easy to collect and acceptable. Therefore,
businesses should take advantage of secondary data and conduct this process first to limit
unnecessary charges.
Besides, the primary data gives more in-depth information combined by their research.
- Some common research methods:
+ Investigation such as phone survey, online survey, mail, survey
+ Focus group: researchers will get their opinions on organization, products, other issues

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+ Personal interview: offering many open questions of in-depth nature
+ Testing: you will put new products into a few stores to test customers’ reaction in real
sales conditions.
2.4.3 Summary and analysis data
First, you have to aggregate that information into a complete and unified data sheet from
the collected information. Next, using of specialized software for processing and
analysing data is necessary, they will give your business the fastest and the most accurate
results.
Ensure that all information and data collected is scientifically, logically and easily
tracked to help the company find useful alternatives for each specific marketing strategy.
2.4.4 Choose and implement the best solution
Researchers need to come up with alternative strategies, proposals to change in the best
for businesses, customer satisfaction and put into practice in the market.
Next, they must also monitor the actions and results achieved after the research process.
If not as expected, business can overcome and continue to create customer satisfaction
with the lowest cost.
Marketing research is an ongoing process based on market changes and the customers
preferences.
2.5 Marketing Envinroment
Marketing environment is considered as a business environment. It includes internal
factors (employees, customers, shareholders, retailers and distributors, ect.) and external
factors (legal, political, technological, economic and social) which surround the
businesses and affect directly to its marketing operations.
Envinroment scanning is the process of finding, analysing and forecasting the changes of
internal factors (business, rival, marketing intermediary, suppliers, customers) and the
influences of external factors (population, economy, legal politics, nature, science and
technology, social culture) that impact on business.
2.5.1 The object of environment scanning:
+ Meeting the changes in the market
+ Realizing market opportunities and challenges

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2.5.3.3 Sociological factors: consisting of population, fluctuation, cultures, customs,
ethnic, races are factors which form the psychology and taste of customers.
- Maketers must control consumers' trend
- Marketers need to be knowledgeable at different levels of the customers, so that they
can choose appropriate business methods.
- Income affecting the choice of product type and quality of response.
- Occupation and social classes impact on perspective and behavior on the market.
- Ethnicity and culture reflect the views and ways of using the product.
- Create opportunities to diversify the ability to meet customer needs of businesses.
2.5.3.4 Competitive factors:
- The two most salient forms of competition are Brick-and-Mortar and online business.
- It is difficult for B&M company to compete with most online businesses because online
businesses cost less to operate and more flexibly.
- Trade competition helps businesses to improve their activities to serve customers,
improve dynamism but always in a state of being pushed back.
2.5.3.5 Economic factors:
- Creating favorable conditions for penetration strategy and expansion: economic factors
affecting purchasing power, changing consumer demand, and the development trend of
the industry:
+ Foreign trade: the trend of opening and closing the economy affects business
development opportunities, competitive conditions, and the ability to use the nation's
advantages in technology and capital.
+ Inflation and its ability to control inflation effect income, consumption, stimulate or
restrain investment, etc.
+ The change in economic structure affects the position, role, and the development trend
of economic, leading to a change in the development direction of business.
+ Economic growth rate: showing the general development trends of the economy related
to the ability to expand or narrow the size of business.
2.5.4 ABC advertising strategy: is summarized briefly, accurately, and highly effective in
the application.

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2.5.4.1 The speciality of ABC advertising strategy abide by the alphabet:
- Letter A - Attention - Always be customer-focused: attract to customers' attention:
+ This is the first element and the most important element of the advertisement.
+ Advertising will not be effective if no one pays attention to it. Moreover, if customers
do not pay attention to advertising, businesses have to spend a lot of money to repeat the
advertisement to have a chance to reach consumers.
+ Without A, there would be no B and C.
-Letter B - Branding - Benchmark against the best firms: must make consumers aware of
the brand when viewing advertisement:
+ If the customer sees the ad but still does not recognize the brand. So, the business is
wasting money. The customers see this advertising but they remember the other brand, it
means that the business spends money to advertise their competitors.
- Letter C - Changing - Continuously improve performance: must make changes to attract
the attention of customers.
+ If the advertisement is effective, the customer knows the brand. However, business
does not make a change, it is boring and the advertising at that time is just entertaining.
2.5.4.2 Note:
- The factor “C - Changing - Continuously improve performance" is applied from
marketing strategy:
+ Through marketing research: know why customers have not purchased products.
+ Through psychological research on consumption: knowing what to do and say to
change customers' behaviors or attitudes.
- The factor "B - Branding - Benchmark aganist the best firms", business must ensure the
consistency on the brand to be successful in this factor:
+ Identity in color, advertising , slogan, music, ect.
+ It makes the viewer may not need to see all the advertising but can also recognize the
brand of business.
- The factor “A - Attention - Always be customer-focused" is the most difficult to
succeed in advertising, because people today have many things to pay attention than
watching advertising. So, how to attract customers' attention?

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-There are 2 principles that create attention:
+ "Different" - Businesses need to create what consumers have never seen, never heard,
never experienced before, to bring them emotions of surprise, excitement, surprise.
+ "Relevant" - Businesses need to create things that consumers feel useful, have a feeling
related to themselves in advertising.
Table 2.2 Compare Business-to-Business (B2B) market and Consumer market

B2B MARKET CONSUMER MARKET

Market Business (manufacturer, retailer, Consumer ( households)

distributor, hospital, school,
non-profits, government)

Customers -Large purchase and few -Small purchase and many

potential customers potential customers
-More rational and less emotion -Less rational and more emotion
Marketing trends Concentrate on geographic Disperse geographic

Products -Require technical -Less technical

-Complex products -More simple
-Regularly manufactures depend -Rarely manufactures depend on
on customers’ requirement customers’ requirement

Sales -Directly -Using intermediaries

-Personal selling
Buying procedures -Analysing carefully before
purchasing
-Following the rules and
contracts of sale
(wholesalers, retailers)
-Advertising
-Whenever they need, they will
make a purchase
-Simply trading in money

2.6 Consumer Market:

- Definition: Consumer market is a group of individuals and households who buy
products for consumption.
- Features:
+ A large scale and market often changes

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+ Different customer groups in terms of age, gender, income, education background and
tastes creating diversity of their needs in purchasing and using goods .
+ Personal buying decisions: consume for personal daily use.
+ Personal needs are fast changing, creating risks and challenges for the marketing
strategy.
- Because of diverse consumer needs, leading to businesses unable to fully meet the
needs of each specific customer group. Since then, they have to make decisions to select
is a target group.

2.7 Market segmentation

- Definition:marketing segmentation is the process of dividing the total market into
groups of customers have the same characteristics to highlight the difference in demand,
character or buying behavior.
2.7.1 Market segmentation criteria
- Geographic segmentation:
+ Divide the market into different regions such as countries, regions, provinces, cities,
districts.
+ The company can decide to conduct of one or more regions.
+ Each market area has differences in climate, economy, culture, etc. So that the demand
for products is different.
- Demographic segmentation: segment of population is divided into several categories:
+ Segment of age: people have different physiological in different ages. So that the needs
of clothing, food, entertainment, tourism, etc are also different.
+ Segment of gender: different genders make demands for clothing, watches, glasses,
perfumes, vehicles, beauty care products, etc also different.
+ Segment of family size: family size affects shopping a lot such as houses, cars,
refrigerators, washing machines, etc.
- Psychological segmentation: customer groups are divided based on social classes,
lifestyle or personality:
+ Social classes: there are many classes and there are differences in consumer
psychology.
+ Lifestyle: the interest of customers in the types of goods expressed through the choice
of items.
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- Benefit segmentation:
+ Benefits of buying products: whenever customers buying products, they often consider
the benefits that products bring to them such as economic, medical and aesthetic benefits
expressed by buying products at low prices, products for health care, makeup, etc.
+ Divide the market by value, benefits, advantages that consumers feel from the products
and services of the business.
+ Division by quality, performance, customer service, special features and other benefits.
+ Different quality of the same type of product is provided for different market segments.
+ Industries being used are automotive, clothing, furniture, and consumer electronics
industry.
- Volume (or usage) segmentation:
+ Period of purchase: customers often buy in any occasion of the month, quarter, year to
meet seasonal needs.
+ Amount of use: it based on the purchase level to classify customers: people who do not
buy, buy less, buy medium, buy more.
+ Brand loyalty: not loyal, less loyal, medium loyal, very loyal, absolutely loyal
2.7.2 Market segmentation steps:
- Identify business market: must identify the market that the business is targeting, this
market includes many customer groups with different characteristics.
For example: The business determines the market for milk and ready-made garments.
- Fined out the criteria to segment market with similar in characteristics.
For example: For milk, businesses often choose criteria by age
For ready-made clothes, business choose criteria by gender and income
- Make market segmentation according to the selected criteria.
For example: for milk, there will be milk for children from 0 to 6 years or from 6 months
to 12 months of age.
2.8 Selection of target market
Definition: selection of target maret is the process of selecting customers with the same
needs that businesses decide to response.
2.8.1 Evaluation of market segments
- Scale and growth of the market segment
- The attractiveness of the market segment

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- Objectives and resources of the company:
+ Must specify "Is the market suitable with goals of the company or not?". The company
must be able to response the requirements of customers in terms of quantity and quality
goods, customer service, reasonable prices. This requires a company's resources to be
strong in terms of capital, technology, experience and distribution capabilities.
2.8.2 The ways of selecting target marketing:
2.8.2.1 Marketing without distinction:
- Do not segment the market, pursue the whole market with one item
- Mass distribution and spread
- Create great images in the minds of the public
- Advantage: cost saving
- Disadvantage: get less sales
2.8.2.2 Distinctive marketing:
- Operating in many market segments and launching in each segment with different
products.
- Advantage: get higher sales
- Disadvantage: increase many types of expenses
2.8.2.3 Concentrated marketing
- Pursuing a majority in one or several small markets
*Note:
+ If competitors are in the deep segment, then they should not use marketing without
distinction
+ If competitors use marketing without distinction, they should use distinctive marketing
or focused marketing

2.9 Marketing in the small marketing

2.9.1 Niche market:
- Definition: A niche market likes a small segment of the market or a market gap that is
decided by the business to meet the goal of a specific customer group.
- Choosing niche market means focusing on the majority of small markets. It is not
competing to win market shares in large markets. It follows market demands.
- The most important thing in deciding to response niche markets is few competitors,
have potential growth, purchasing power and scale to profit.
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- A good niche market will have 5 characteristics:
+ Suitable for your long-term goals
+ Every customer wishes to be responsed
+ Market is carefully prepared
+ The unique market
+The market develops constantly, allowing you to create different profit opportunities
(but still retain the core of the business element, ensuring long-term success)
2.9.2 One-to-one marketing (OTO marketing)
- Definition:
+ OTO marketing is a marketing strategy based on understanding the customer's
individual choices. Then responsing for each different customer based on those choices.
+ It is a way to approach customers that businesses do not have to attract their attention,
but businesses keep their interesting.
- Forms of OTO marketing:
+ Personalization: businesses learn the preferences and tastes of each customer and adjust
the marketing plan accordingly.
+ Cuztomization: businesses give customers the opportunity to adjust the product
according to their preferences instead of learning the preferences and tastes of each
customer.

2.10 Building marketing relationship

- There are 2 forms:
2.10.1 Mass marketing:
- Mass marketing is a marketing strategy that businesses ignore the difference of all
segments of the market. Find out the ways to attract all markets. Design the message to
connect customers.
Form of operation:
- Mass marketing is applied by using radio, TV commercials, newspapers (because these
are the media to connect everywhere and everybody)
- Mass marketing focuses on high sales and low prices to attract the entire market

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2.10.2 Relationship marketing:
Relationship marketing are activities to develop, manage trust and get long-term
relationships with customers closely.
Forms of operation:
- In the realtionship marketing, customer records, purchase models and contact history
are maintained in the sales database.
- Each customer care staff is assigned to one or more customers to meet their needs and
maintain relationships.

2.11 Five Factors Affecting Buying Acts

- Learning: learn from previous experiences and information from the behavior of an
individual who made a purchase.
- Reference: A reference group is a group in which an individual uses the product as a
reference point in forming beliefs, attitudes, values, or behaviors.
- Culture: a set of values, attitudes, and buying behavior that are spread from generation
to generation in society.
- Subculture: a group of values, attitudes, and buying behavior have the original ethnicity
and race, or groups of people closely related to each other (youth, middle-aged people,
etc)
- Cognitive dissonance: a form of psychological conflict occurred after purchasing.
Buyers have doubts about the qualities or prices of the product.

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 PART 3: CASE STUDY: KFC’s MARKETING STRATEGY IN VIETNAM
"BE THE FIRST AS SOON AS POSSIBLE IN YOUR FIELD"
KFC History :
- In recent years, fast food has become familiar and popular with young people in
particular as well as Vietnamese people in general. A series of famous fast-food brands
from foreign countries such as KFC, Jollibee, BBQ have broken into the Vietnamese
market and have been very successful in business. In the Vietnamese market, KFC can
affirm to be one of the most successful fast food restaurant system today.
- Since the normalization of relations between Vietnam and the United States in 1995,
KFC-Kentucky Fried Chicken of Yum Brands Inc (The USA) is the first brand to dare to
set foot in Vietnam. In 1997, KFC opened its first restaurant in Ho Chi Minh City.
- What KFC achieved is more admirable than other brands, when it became a fast food
company with the most market share in Vietnam thanks to the success of an effective
marketing mix strategy to introduce and develop in the Vietnamese market.
* Marketing Mix Strategy:
3.1 Product: East - West combination
When entering the Vietnamese market, KFC took many years to change the taste, design,
product size to suit Vietnamese consumers and posit their brand.
+ Beside the traditional menu such as buckets, hamburgers and pepsi can, KFC also has:
spicy crispy chicken, chicken rice, chicken fillet, mixed cabbage, shrimp burger, egg
Tart, ect.
In Vietnam, it can be clearly seen that the company focuses on developing chicken rice,
because it is very familiar of Vietnamese with a fast and nutritious meal.
=>Understand the psychology of the majority of Vietnamese consumers using food as
rice as their main meal.
+ To match the integration of many countries to Vietnam, KFC added dishes such as
Fried chicken with Korean sauce and Japanese sauce, Mochi, Pancakes.
+ Besides, the Asian cuisine in general and in particular in Vietnam likes to share food
with family and friends while in the US they like to eat their own meals. To
accommodate that, KFC has more options: combo-menu combo (Promotion combo,
combo for one, combo for groups); menu a la carte.
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+ With a young population market like Vietnam, the addition of alternatives such as
shrimp, fish or other soft drinks (7up can, milo box, peach tea, ect.) reduce boredom for
young people who are always looking for something new, something strange.
+ In addition to selling products directly, KFC also has a birthday party service with full
of beautiful decorations, cheerleaders, food and gifts.
- The difference of KFC with Lotteria and Jollibee products:
+ A blend of 30 special marinades from 11 herbs and spices to create the original fried
chicken.
+ Concern about consumers' health: the fat content is not too high, using soybean oil
instead of animal oil, ensuring the supply.
-The brand as well as the packaging images are associated with the development of
Vietnam through many stages, and KFC is the first brand to bring "fast-food" into a
market with too many risks such as Vietnam.
3.2 Price: relatively consistent with consumer spending
- In the early years of entering Vietnamese market, where people were still unfamiliar
with fast food and its Western taste, KFC used a strategy to penetrate the market, using
low prices to attract more potential customers to themselves before rivals catch up.
- After more than 7 years of lossing until 2006, KFC began to gain profits and the
number of potential customers and loyal customers soared. After enough loyal customers,
KFC began to raise prices.
- In general, the price of the food here is quite reasonable:
+ The average price of Alacarte chicken: 36000 VND
+ Combo packages from 69000 VND
+ Special price for VIP card members: 10% off on invoice, no applicable number of
times using
- Prices are equivalent to the incomes of the majority of Vietnamese people, reasonably
priced when costs such as rent and supplies increase. Besides, for those who have a
decent or stable income, they can often buy goods, but those who do not have a high
income may not buy often.
- Competitive pricing is higher than the competitor's price but not significantly =>
creating a leading image as well as meeting customer’s psychology "higher price means
better quality".

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- Although there is a certain competition between brands at the restaurant, because they
often target the same customers and the target market. However, with the advantage of
being first, KFC proved its ability when KFC was the first word when people mentioned
fried chicken, because it has been in the minds of people for a long time.
3.4 Promotion: The company has used various channels such as promotions, advertising
and public relations activities. Through its, the company wants to convey information
about KFC to customers and promote its outstanding products.
- The target customers that KFC targets are young people, so their forms of access to the
media are plentiful, mainly via internet, television, newspapers, public relations
activities.
3.4.1 Sales promotion:
Understanding the tastes of Vietnamese youth in particular as well as Vietnamese people
in general, KFC regularly offers promotions not only during holidays but also on
weekdays.
+ Currently, KFC boom "shock prices" with 18000 VND / piece of chicken from
Tuesday to Thursday
+ In cooperation with food ordering applications such as Grabfood, Nowfood, Loship.
KFC also has promotions with scratch cards corresponding to chicken pieces or can be
discounted from 10% - 25% on combo depending on the application you use from
Monday to Friday. 
+ On Christmas, KFC will have a “buy one Christmas meal” program. Your relatives will
receive cards and have the opportunity to receive many gifts, as well as the opportunity to
receive higher discounts at ordering apps.
+ During the year, the company also has many promotions like K-Share to connect with
friends
3.4.2 Advertising
- KFC's advertising strategy is to focus on building up the brand image, create consumers'
familiarity about a famous and new way of eating “fastfood”. KFC combines traditional
and modern advertising.
+ To make a promotion event widely known, it is not only an advertisement printed in
newspapers, magazines, but also advertised on electronic media such as television, the
internet.

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+ With the development of Artificial Intelligence technology and Social Networking
sites, banner ads or promotional events are coming to many people in a short time to
bring positive feedback and great interaction for KFC.
+ Launching TVCs (Television Commercials) advertise their brands towards customers'
perception of foreign brands but “very Vietnamese”. KFC wants to clarify the message in
its Slogan sentence "good taste on each finger" with an irresistibly delicious image of
KFC fried chicken.
+ Outdoor advertising organization and point of purchase advertising: leaflets, signs,
posters, etc..
3.4.3 Public Relations:
- KFC often has charitable and sponsorship activities such as:
+ Journey: Sharing love with KFC over many years contributes to helping children in
orphanages in many places in Ho Chi Minh City and neighboring provinces.
+ Fundraising walking and jogging events such as For Run, Lawrence Charitable Walk to
support disadvantaged people.
+ Sponsoring domestic sports tournaments.
-KFC also established KFC team to participate in charitable activities, helping orphans,
disabled and poor people.
- Communication inside the company: employees are also part of the brand image, they
can also be consumers of products, or it can also introduce family and acquaintances
about products and services of the company. KFC has a thorough training program,
corporate commitment to the brand, remuneration policies, and "How we win together"
culture is the driving force and goal of all KFC VN members.
=> Building credibility for businesses, creating a good impression, protecting products
that are facing community issues, creating momentum for sales promotion efforts,
affecting target customer groups.
KFC has taken many years to successfully build its brand in the hearts of the Vietnamese
customers, thanks to its consistent business strategy, reputable products, quality, attentive
customer service. It has created a great contribution to the development of the fast food
industry in Vietnam. Therefore, the success of KFC in the Vietnamese market is easy to
understand and it is currently the only fast food company with profit and holds the most
market share in Vietnam to date.

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 C. CONCLUSION

Growth in revenue and profit, increasing market share, market development are the basic
goals of business enterprises. In order to achieve these goals, the business company must
develop its own development strategies that are consistent with its current goals and
resources. One of the important tools that contributes to the success of businesses today
is marketing. It includes both modern marketing, traditional marketing, and the marketing
strategy.
In order to have a successful marketing strategy, to position the business brand on a
market economy, to integrate into the global economy, businesses must put customer
satisfaction as the focus with Releases "helping buyers buy". Especially with a fledgling
market economy like Vietnam, marketing is a first priority to compete with domestic and
foreign businesses. That requires Vietnamese enterprises to be more brave in finding new
markets, developing products, always searching, learning and creating in special
strategies, especially marketing.

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REFERENCE
1. University of Economics Ho Chi Minh city (2014). Basic Marketing, Labor
Publisher
2. kfcvietnam.com.vn. Introduction, career, menu about KFC restaurant in Vietnam.
Retrieved from
https://kfcvietnam.com.vn/vi/gioi-thieu.html
3. Marketing AI (2018). Marketing Mix strategy of KFC. Retrieved from
https://marketingai.admicro.vn/chien-luoc-marketing-mix-cua-kfc-di-den-dau-
ban-dia-hoa-den-do/
4. Grabfood.vn. KFC restaurant menu. Retrieved from
https://www.grab.com/vn/blog/de-dang-dat-xe-goi-do-an-va-giao-hang-cung-mot-
luc-tren-ung-dung-grab/
5. Brandsvietnam.com. How are KFC, Lotteria, Pizza Hut running business in
Vietnam. Retrieved from
https://www.brandsvietnam.com/18601-KFC-Lotteria-Pizza-Hut-kinh-doanh-the-
nao-tai-Viet-Nam
6. Brandsvietnam.com. Fast-food market. Retrieved from
https://www.brandsvietnam.com/18558-Thi-truong-thuc-an-nhanh-Doanh-nghiep-
noi-vuot-mat-cac-ong-lon-ngoai

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