PRINCIPLE OF MARKETING

STDP

Dr. Khanh Ngo

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 What did you learn from reading and knowledge
review session?

www.menti.com
Code:

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 Introduction Case: Air Asia Success in Targeting the
Right Markets

https://www.youtube.com/watch?v=1zt2G6Uilhw

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 Introduction Case: Air Asia Success in Targeting the
Right Markets

https://www.youtube.com/watch?v=TN5maC8qXl0
Until 2:30

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 What makes Air Asia so successful?

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 What makes Air Asia so successful?

Very clear vision of just which customers it wants to serve and how. It
targets the price-conscious passenger with a no-frills service and low fares

Target markets within a 3,5 hours flight time from its hub, 500 millions in South East Asia

Low-fare, no-frills airline, lower internal operating costs with narrow seats, one class, no
frequent flyer program, secondary airport hub.

Only 25 minutes ground wait for flights, ensuring high productivity while keeping costs low

Lean distribution system offers a variety of channels through which customers can reserve
bookings and buy their tickets
Enhance its brand image, generate publicity and create promotional campaigns that raise
awareness of the brand

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 What makes Air Asia so successful?

https://www.youtube.com/watch?v=jFgTNojbqfg

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 Major Segmentation Variables for Consumer Markets

• Nations • Cities
• Regions • Neighborhoods
• States • Population density (urban, suburban, rural)
• Countries • Climate

• Age • Income • Religion

• Life-cycle stage • Occupation • Ethnicity
• Gender • Education • Generation

• Social class
• Lifestyle
• Personality

• Occasions • User rate

• Benefits • Loyalty status
• User status

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 Major Segmentation Variables for Consumer Markets

• Nations • Cities
• Regions • Neighborhoods
• States • Population density (urban, suburban, rural)
• Countries • Climate

• Age • Income • Religion

• Life-cycle stage • Occupation • Ethnicity
• Gender • Education • Generation

• Social class
• Lifestyle
• Personality

• Occasions • User rate

• Benefits • Loyalty status
• User status

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 Real Marketing: Niche Marketing

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 Real Marketing: Niche Marketing

• Niche Marketing: A market-coverage strategy in

which a firm goes after a large share of one or a
few segments or niches
• Work on your group at home and prepare a short
presentation with 1 example of Niche Marketing.
Present in the class and share how do you feel
about them.

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 Debate’s topic

Is Mass Marketing Dead?

• With marketers increasingly adopting more and more refined market segmentation
schemes—fueled by the Internet and other customization efforts—some claim mass
marketing is dead.
• Others counter there will always be room for large brands employing marketing programs to
target the mass market.
• Take a position: Mass marketing is dead (Pro) versus mass marketing is still a viable way to
build a profitable brand (Con)

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 How to debate?

• Each group will have 10 minutes to think and discuss about the topic. There are 2 rounds
• Round 1a:
• Contestant 1 of team Pro does the introduction, state the point 1 (2 minutes)
• Con team asks one question 30s to team Pro. Team Pro has 2 minute (including discussion) to answer.

• Round 1b:
• Contestant 1 of team Con does the introduction, state the point 1 (2 minutes)
• Pro team asks one question 30s to team Con. Team Con has 2 minute (including discussion) to answer.

• Round 2a:
• Contestant 2 of team Pro does the introduction, state the point 2 (2 minutes)
• Con team asks one question 30s to team Pro. Team Pro has 2 minute (including discussion) to answer.

• Round 2b:
• Contestant 2 of team Con does the introduction, state the point 2 (2 minutes)
• Pro team asks one question 30s to team Con. Team Con has 2 minute (including discussion) to answer.

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 Group 5 will be

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 Preparation: 10 minutes

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 Round 1a: Contestant 1 - Pro (2 minutes)

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 Round 1a: Question to Pro (30s)

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 Round 1a: Contestant 1 Pro – Answer question
(2 minutes)

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 Round 1b: Contestant 1 - Con (2 minutes)

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 Round 1b: Question to Con (30s)

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 Round 1b: Contestant 1 Con – Answer question
(2 minutes)

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 Round 2a: Contestant 2 - Pro (2 minutes)

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 Round 2a: Question to Pro (30s)

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 Round 2a: Contestant 2 Pro – Answer question
(2 minutes)

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 Round 2b: Contestant 2 - Con (2 minutes)

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 Round 2b: Question to Con (30s)

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 Round 2b: Contestant 2 Con – Answer question
(2 minutes)

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 Debate Voting: MS Team

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 Differentiation and Positioning Steps

• Prepare conceptual positioning maps

• Identifying a set of differentiating competitive
advantages on which to build a position
• Choosing the right competitive advantages
• Selecting an overall positioning strategy
• Developing a Positioning Statement

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 Real Marketing: Positioning Statement

• Positioning Statement: A statement that summarizes

company or brand positioning using this form: To
(target segment and need) our (brand) is (concept)
that (point of difference). It is not about slogan.
• 15 minutes work on your group and prepare a short
presentation with 1 example of Positioning Statement
and your group project Positioning Statement. Present
in the class and share your opinion about these
Positioning Statement.

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 Company Case: Nespresso Positioning

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 Company Case: Nespresso Positioning

https://www.youtube.com/watch?v=0AWFgd7iDjo

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 Company Case: Nespresso Positioning

https://www.youtube.com/watch?v=0f4nn6-40wM

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 Company Case: Nespresso Positioning

• Read the company case and prepare short presentation for the answers
(15 minutes)
1. Why has Nespresso’s repositioning on the consumer market led to the success of the
brand?
2. Will the unique positioning of Nespresso enable it to resist new competition from
Jacobs Douwe Egberts?

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 Company Case: Nespresso Positioning

https://www.youtube.com/watch?v=6fUffBDWaec

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 Project A2: Questions

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 Home work: ST for A3 and Read Company Cases S4

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