8/18/22

Principles of Marketing
+ Concept
Definition: 1960s (AMA)
1985 (AMA - 4Ps)
PRINCIPLES OF 2007 activity justifies needs of social class
All departments should engage in marketing activities.
MARKETING
LE GIANG NAM

Legiangnam.cs2@ftu.edu.vn + Environment

§ Le Giang Nam
§ Foreign Trade University, HCMC
§ Email: legiangnam.cs2@ftu.edu.vn

§ Tel: 0915190286
About § Teaching/Research:
the lecturer § Principles of Marketing
§ Marketing Management
§ International Marketing

Discussion

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Text book and references

- Phillip Kotler, Principles of
Marketing, Statistical Publishing
House, 2007

- International Marketing, Philip

R. Cateora, Mary C. Gilly, John
Course L. Graham (now refered to as
resources TB2)
- Global Marketing, Svend
Hollensen, 8th ed, 2020, Pearson

- Practical slide share of the

experts

• Class attention: 10%

• Midterm examination/ Presentation: 30%
Grading • Final Exam/ Report: 60%
• Bonus marks: individual/group activities

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PRINCIPLES OF
MARKETING

CHAPTER 1: Overview of International

Marketing

Content

Definitions of marketing and

international marketing
Major terms in marketing

Marketing management philosophies

international marketing

DEFINITIONS OF MARKETING

Marketing

American Philip Kotler

Marketing
Association
- AMA

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DEFINITIONS OF
MARKETING

American marketing association

1985 2013
1960

10

§1960: “The performance of business activities that direct the

flow of goods and services from producers to consumers.”

DEFINITIONS
of
MARKETING

11

§1985: “Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas, goods
and services to create exchanges that satisfy individual and
organizational objectives.”
DEFINITIONS
of
MARKETING

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2013
§Marketing is the activity, set of
institutions, and processes for
creating, communicating, Offerings is some combination of
delivering, and exchanging products, services, information, or
experiences offered to a market to
offerings that have value for
satisfy a need or want.
customers, clients, partners, and
society at large.

13

Philip Kotler’s DEFINITIONS OF

MARKETING
(Broadly defined)
• A social and
managerial process
by which individuals
and groups obtain
what they need and
want through creating
and exchanging
products and values
with others. (Kotler et
al, 2018)
(In narrow business
context)
• Marketing is the
process by which
companies create
value for customers
and build strong
customer
relationships in order
to capture value from
customers in return.

14

Philip Kotler’s DEFINITIONS OF

MARKETING
§ Marketing 4.0 is a marketing approach that combines online and
offline interaction between companies and customers (Kotler, 2016)
§ In the digital economy, digital interaction alone is not sufficient.
In fact, in an increasingly online world, offline touch represents a
strong differentiation. Marketing 4.0 also blends style with substance.
While it is imperative for brands to be more flexible and adaptive
due to rapid technological trends, their authentic characters are more
important than ever. In an increasingly transparent world, authenticity
is the most valuable asset.

15

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Functions of
marketing

16

Modern marketing
system

17

Chief
Brand Marketing Pr manager
manager officer

Assistat
brand Coppy Art director
writter
manager

Career paths in Creative

director
Account
manager
Account
executive
marketing
Marketing
executive MR Analyst Ad manager

…….

18

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Marketing development

19

Marketing
development Marketing
4.0
Marketing • Digital/society
3.0
• value
Marketing 2.0
• Customer’s
need

Marketing
1.0
• product

20

Needs: nhu cầu (cảm giác thiếu gì đó có thể cảm nhận

Core marketing được)
concepts NEEDS
+ Psychological needs (thấp nhất)
TRANSACTIO NS WANTS + Safety needs
+ Love & Belonging needs
M ARKETING + Self-esteem needs
EXCHANG E
DEM AND
S + Self-actualization needs (cao nhất)

PRO DUCT M ARKET

Wants: phong phú hơn nhu cầu, tùy thuộc vào văn hóa và
đặc tính từng cá nhân
S S

21 => Needs/wants: khái niệm về tâm sinh lý

Demands: khái niệm về kinh tế, có thể đo lường được

(important for marketers)
+ Có khả năng chi trả (affordability)
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§ A state of felt deprivation

Needs

22

Needs

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WANTS
§ The form that a human need takes as shaped by culture and individual
personality.
§ As a society evolves, the wants of its members expand. As people are
exposed to more objects that arouse their interest and desire, producers
try to provide more want-satisfying products and services.

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DEMANDS
§ Human wants that are backed by buying power.
§ People have NARROW, BASIC NEEDS,
§ but almost UNLIMITED WANTS.

§ However
§ also have LIMITED RESOURCES.
§ Thus they want to choose products that provide the most satisfaction for their
money.

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Đầu tiên xác định giá trị <= nghiên cứu thị trường

Ex: starbucks coffee: benefits (get a drink)

§ The customer’s evaluation of the
difference between all the benefits
Customer- and all the costs of a marketing
Difference between benefits and costs =
perceived value offer relative to those of competing
offers.
Customer-perceived cost
=> Companies try to increase benefits (constantly =>
learn form customers) => remain popularity

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§ The extent to which a

Satisfaction product’s perceived
performance matches a
buyer’s expectations.
Performance

Expectation

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Satisfied customers buy again and tell Dissatisfied customers often

others about their good experiences. switch to competitors and
disparage the products to others.

Satisfaction

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§ Anything that can be offered to a

Products market for attention, acquisition,
use or consumption that might
satisfy a want or need.

Objects Places ideas

people Services Organizations

Information …

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activities

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§ Marketers see the sellers as constituting an industry

and the buyers as constituting a market.
§ Market is the set of all actual and potential buyers
Market of a product or service
§ These buyers share a particular need or want that
can be satisfied through exchange relationships.

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Market
communication

Products/services
Industry (a Market (a
collection of collection of
sellers) money buyers

information

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§ Is the act of obtaining a desired

Exchange object from someone by offering
something in return

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§ Conditions making exchange

possible
- At least 2 parties participate
- Each must have sth of value to offer

Exchange the other

- Each must want to deal with the
other
- Each must be free to accept or
reject the other’s offer
- Each must be able to communicate
and deliver

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A trade between two parties that

involves at least two things of
Transaction value, agreed-upon conditions, a
time of agreement and a place of
agreement
Transaction is marketing’s unit of
measurement

35

Other
concepts
Content Convention rate Engagement rate Inbound/outbound Influencer/KOL KPI (key performance
indicator)

Above the line USP (unique selling

ATL/Below the line BTL Organic traffic Reach Viral point) B2B/B2C

Cross channel MKT/

ATL/BTL Brand/branding/Brand multichannel/
Big Data identity Buyer persona Insight
Omnichannel

Customer journey Trend ROI Target Tactics Strategy

WOM (Words of
Campaign mouth)/Buzz Marketing Trade Marketing Green Marketing Digital Marketing ….

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Evolution of Marketing Philosophies

1. Production
Concept

2. Product
Concept
5. Societal Marketing Key
Concept Marketing
Concepts

3. Selling
4. Marketing Concept
Concept

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§ The philosophy that consumers

will favor products that are
available and highly affordable and
The widely available
productio § That management should therefore
n concept
focus on improving production and
distribution efficiency.

38

The
production
concept consumers

available Highly
affordable
product

Improving
Improving
distribution
production
efficiency

organization

39

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§ It is useful in 2 types of situation:

1. The demand for a product > the supply

The 2. The demand for a product < the supply

production § But the product’s cost is too high

concept § And improved productivity is needed to bring it

down.

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§ The idea that consumers will favour

The product products that offer the most quality,

performance and features and that the

concept organisation should therefore devote its

energy to making continuous product
improvements.

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The product
concept
consumers

Most Performance
quality +
product features

Product
improvement

organization

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The idea that consumers will not buy

enough of the organization’s products
unless the organization undertakes a
large-scale selling and promotion effort.
The Selling concept
Most firm practise the selling concept
when they have overcapacity. Their
aim is to sell what they make rather
than make what the market wants.

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The idea that consumers will not buy enough of the

organization’s products unless the organization
undertakes a large-scale selling and promotion
effort.
Most firm practise the selling concept when they
The Selling concept have overcapacity. Their aim is to sell what they
make rather than make what the market wants.
It focuses on creating sales transaction in the short
term rather than on building long term and
profitable relationships with customers.
The selling concept is also practised in the non-
profit area

44

§ The marketing concept holds that

achieving organizational goals

The depends on determining the needs

and wants of target markets and
Marketing delivering the desired satisfactions

concept more effectively and efficiently

than competitors do.

45

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customer
value
The
Marketin
g
concept Company’s
profit

46

Selling concept Marketing concept

Starting point factory Market

Focus Existing products Customer needs

Means Selling and promoting Integrated marketing

Profits through sales Profits through

Ends volume customer satisfaction

Outside-in
Perspective Inside-out perspective perspective

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§ The idea that the organisation should determine

Societal the needs, wants, and interests of target markets
marketing and deliver the desired satisfactions more

concept effectively and efficiently than competitors in a

way that maintains or improves the consumer’s
and society well-being.

48

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Societal marketing concept

consumers

Societa
l MKT
concep
t
organization society

49

Discussion
§ Distinguish Societal marketing ><
Social Marketing?

50

Marketing plan

51

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2. What is
international
Marketing?

53

Definition of international marketing Start business in home country => foreigners see ur products
to their country => Ur business start to export
§ International marketing is the multinational process of
planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and Higher level: start business and enter one more markets
services to create exchanges that satisfy individual and
organizational objectives.
Highest level: start busniess and enter 2 or more markets
§ (AMA, cited in Sak Onkvisit and John J. Shaw 2004)

Core value of products: ko phaỉ thứ thật sự sở hữu

Sở hữu về mặt thương hiệu: mở nhiều cửa hàng
54

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Definition of international marketing

§ International marketing is the performance of
business activities designed to plan, price, promote,
and direct the flow of a company’s goods and
services to consumers or users in more than one
nation for a profit.
§ (Philip R.Cateora, 2012)

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Definition of international marketing

§ International marketing is the process of planning and

conducting transactions across national borders to
create exchanges that satisfy the objectives of
individuals and the organizations.
(M.R. Czinkota, 2011)

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Global
International Multinational Marketing
marketing marketing
- Companies treat the
- Companies seek markets world, including their
all over the world home market, as one
International
- sell products that are a market.
result of planned production
dimensions of
for markets in various
- Market segmentation
decisions are no longer
marketing
countries.
- This planning generally
focused on national
borders. Instead, market
entails not only the segments are defined by
marketing but also the income levels, usage
production of goods outside patterns, or other factors
the home market. that frequently span
countries and regions.
->At this point, a company
becomes an international or
multinational marketing
firm.

57

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Development of the Global Marketing

Ethnocentric Polycentric Regiocentric Geocentric (global)

(multidomestic)
• The home country • each country is • the world consists • the world is getting
is superior and the unique -> should be of regions (e.g. smaller and smaller.
needs of the home targeted in a Europe, Asia, the The firm may offer
Development of
country are most
relevant.
different way.
• there are different
Middle East). The
firm tries to
global product
concepts but with
the Global
• Controls are highly
centralized and the
organization and
conditions for
production and
marketing in
integrate and
coordinate its
marketing program
local adaptation
(‘think global, act
local’).
Marketing
technology
implemented in
different locations -
> adapt to those
within regions, but
not across them.
Concept
foreign locations
will be largely the
same as in the
different conditions
-> maximize profits
in each location.
home country. • The control is
highly
decentralized
among affiliates,
and communication
between
headquarters and
affiliates is limited.

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“The development and

selling of products or services
Globalization
intended for the global
market, but adapted to suit
local culture and behaviour.
Glocalization (Think globally, act locally)”

Hollensen, S.( 2012) Essential of G lobal M arketing. Pearsons. 2 nd

Edition

59

The glocalization framework

Hollensen, S.( 2012) Essential of Global Marketing. Pearsons. 2nd Edition

60

20

Benefits of glocalization
Combination of
globalization and
localization
-> Optimize the balance
between standardization
versus adaptation
-> Focusing on the
differences of consumers in
different markets while also
maximizing the benefit of
the similarities.
61
3. What are the tasks
Content
of International
Marketing?
62
The
International
marketing task
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§ Dynamic interdependence between
head-quarters and subsidiaries
§ Ensuring local flexibility while
exploiting the benefits of global
integration and efficiencies (eg.
economies of scales)
§ Ensuring worldwide diffusion of
innovation (Product/service
developed and distributed globally -
> common global technology)
§ Better product performance in
different use conditions
§ Penetrate closer to the market ->
Accommodate user/consumers in
local market
§ Meet local requirements/standards:
local laws, customs or consumer
preferences
§ Greater interest to end user
§ Excellent local image
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Marketing Aspects of
Decision the domestic
Factors environment
The
International Aspects of
marketing task the Foreign
Environment

64

§ The marketing manager blends price, product,

promotion, channels-of-distribution, and
research activities (controllable elements) to
capitalize on anticipated demand
Marketing § The controllable elements can be altered in the
Decision Factors long run and, usually, in the short run to adjust
to changing market conditions, consumer tastes,
or corporate objectives.

65

Aspects of the domestic environment

§ Domestic environment uncontrollable variables
include home-country elements that can have a
direct effect on the success of a foreign venture:
Aspects of the domestic political and legal forces, economic climate,
environment and competition.
§ The marketer must actively evaluate and, if
needed, adapt. The adaptation of the marketing
mix to these environmental factors determines
the outcome of the marketing enterprise

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Aspects of the Foreign Environment

§ Elements in the uncontrollable international

environment include political/legal forces,
economic forces, competitive forces, level of
Aspects of the Foreign Environment technology, structure of distribution, geography
and infrastructure, and cultural forces.
§ These forces constitute the principal elements
of uncertainty an international marketer must
cope with in designing a marketing program.

67

Development of an international marketing

plan

68

Development of an international marketing

plan

69

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Development of an international marketing

plan

70

Development of an international marketing

plan

71

Content 4. Why
internationalize?

72

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73

Internationalization motives

Proactive motives Reactive motives

• Motives represent • Indicate that the

stimuli to attempt firm reacts to
strategy change, pressures or threats
based on the firm’s in its home market
Internationalizat
interest in or in foreign
ionexploiting
motives unique markets and adjusts
competences (e.g. a passively to them by
special changing its
technological activities over time.
knowledge) or
market possibilities.

74

Internationalization
Internationalizat
motives
ion motives

75

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Internationalization § Internal or external events taking place to initiate

triggers internationalization.

76

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