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TABLE OF CONTENTS

I. INTRODUCTION……………………………………………………………2
1. About the movie “Megan” (Summary)………………………...………2
2. About the short 5-min video…………………………………………….2

II. CONTEXT………………………………………………………...…………2
1. Microenvironment…………………………………………………….…2
2. Macro environment……………………………………………………...3

III. SYSTEM OF DEFINITIONS AND CONCEPTS……………….……….3

1. Definitions…………………………………...………….………………..3
         1.1 V.I.E.T…………………………………………………………………4
     2. 5-PROCESS……………………………………………………………….5

IV. ACTIVITIES………………………………………………………………..7

1.  Observational research…………………………………………………7
2.  New- product development : 8 steps…………………………………...7
3. Promotion activities……………………………………………………...8

V. MARKETING IN THE MOVIE

1. Product…………………………………………………………………….......9
2. Price…………………………………………………………………….…......11
3. Place…………………………………………………………….…………......11
4. Promotion…………………………………………………………………......11
5. People………………………………………………………..……………......12
6. Physical Evidence………………………...………………………………......12

VI. LESSONS……………………………………………………………………13

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I.INTRODUCTION

1. About the movie “Megan” (Summary)

Gemma is a robot researcher who works for a toy company. She uses artificial
intelligence to invent a humanoid robot doll and names it M3GAN (short for Model 3
Generative Android) with the hope that it will be a supportive companion and caregiver
for children. After reuniting with her orphaned niece Katie, Gemma decides to bring
M3GAN home to be a friend for the little girl. The situation becomes unpredictable when
the robot begins to excessively protect Katie and is willing to harm anyone who teases or
hurts her. M3GAN's friendship with Katie evolves, and its actions become increasingly
savage and chilling.
2. About the short 5-min video 
Introducing a type of AI-powered robot pet that can meet the needs and interests of
children. This is a brief overview of the company and the outstanding features of the
M3GAN model, not only in terms of intelligence and learning ability but also in its
ability to understand emotions and empathize; it is considered the greatest technological
advancement since the automobile industry.

   II. CONTEXT
1. Microenvironment
 Microenvironment is the internal or recent environment that is closely related to a
goal and has a profound influence on it
1.1: Firm’s environment
1.1.1 10 functional departments:
 Foyer Funkitorium
 Observation room and testing lab: Observation room for monitoring and data
collection, laboratory for conducting experiments and scientific research.
 R&D: responsible for researching and developing new products, services or
processes to help the organization stay competitive in the market.
 Core technology and hardware: undertake the research and development of new
or improved technology and hardware to optimize an organization's or business's
products and services.
 Materials Lab: learns and analyzes the properties of different materials to make
decisions about their use in an organization's or business' products or processes.
 Software Engineering: research, design, develop, and maintain software to meet
the needs of an organization or business.
 Administration & Finance: manage the financial and administrative activities of
an organization or business.
 Marketing & Operations: manage the marketing, production and operations of
an organization or business, ensure the quality of products and services, increase
market presence and improve operational efficiency.
1.1.2 Employees

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- Researcher: Gemma is always dedicated to her work. She wanted to create a technology
that could be ahead of its time, a technology that no other competitor could imitate.
Second, she is so dedicated that she tries to finish the product before the deadline (Friday)
without having time to spend with her niece Cady when her parents just passed away.
 - Customer care: analyzing through pictures of small glass booths, inside there are two
people sitting, a consultant and a customer.
=> Analyze to see the dedication and professionalism.
1.2 Working environment: 
- Client: children: desire to have a long-lived, intelligent pet that can interact and play
with children.
- Competitors: completely plagiarize ideas and products but sell them for as little as

3. Macro environment (Based on real-life context,...)

- Macro environment is the external environment, the large social environment that
affects the character's thoughts, actions and developments
- In the context of technology 4.0, when the surrounding life is surrounded by
technology, even children want to play with pets through the iPad,...

III. SYSTEM OF DEFINITIONS AND CONCEPTS

1. Definitions
1.1 V.I.E.T
a. VISION
- CEO David early predicted the appearance of competitors 6 months ago compared to
the present time: He asked employees to continue developing the product "Petz" - The
toy is said to be "signature" ” and is exclusive to the company Funki.
- CEO David recognizes that the product needs to be changed to be simpler and must be
put on the shelf soon for $ 50, what the counterfeit product is doing: "selling at half the
price of Petz toys".
Gemma's vision: only produce a pet toy that listens, targets conversation between
children, and is so advanced that no competitor can copy it.
- CEO David considers the M3gan doll to be "The Greatest Technological Advancement
Since Automotive Technology"

b. Insights:
- Western culture considers pets as a real friend, a member of the family. So having to go
through the pain of being separated from a pet is a constant thing. Understanding that,
Funki has come up with solutions to "rub the pain, scratch the itch", make a difference -
make customers satisfied and trust the product - Pets live longer than you: Petz
- Identify the behavior and preferences of customers: the children love to love and take
care of their pets. Not only has the mission to relieve pain, Petz also has full features such
as feeding, toileting, taking pictures, ... and increasingly improving through the
application on the Ipad.

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 - M3gan understands parents' concerns: not having to remind their children to do the
same thing over and over again, so they have time to do the things they consider more
important.

c. EMOTION:
- Recognize and empathize with children's grieving feelings when a pet dies. Petz Pets
makes sure that feeling never happens: you have a friend who lives longer than you
- Petz pet toys bring peace of mind to parents and a fun experience to children.
- The video interview Cady about the M3gan doll implied to evoke compassion in
viewers: M3gan is a true friend, heals her pain, reminds Cady of her Mother (which is
unthinkable when using a toy)

d. TIME TO MARKET:
- After recognizing it as a potential product, the president requested that the M3gan doll
product be launched by the company as soon as possible before the information is leaked.
- CEO David: run ads to introduce products, launch sales before Christmas: the festive
season, the ideal time when the demand to buy gifts for children increases sharply,
suitable for offering and will soon create a storm. fever.

1.2. 5-PROCESS

a. Step 1 : Define need and want 

- Perpetual Petz : Children always need friends to accompany them throughout their
childhood and share wonderful memories with. But they want their friend to stay with
them for life so that it can remind them of their beautiful childhood days, which some
pets like cats and dogs can't serve since they are all living creatures. In order to fulfill the
children’s wish, Funki company invented a pet named Purpetual Petz. Children can feed
them, engage in a conversation with them, play with them, buy accessories for them like
a genuine pet and most importantly, their lifespan can even be longer than the
children’s. . That's why they are called permanent pets. Now that they have a perpetual
petz, the kids no longer have to be concerned about how lonely and empty they will be as
their dog ages and passes away.

- Megan : While Funki's Purpetual Petz was well received by kids and their parents, the
rival company cloned the product, tweaked it a bit, named it Furzeez, and sold it to the
market at half the price of Purpetual Petz, causing Funki to struggle and quarrel internally
because of direct competition from this rival company. That was the motivation for
Funki's staff to focus on developing a new toy that was more advanced and of course
difficult to imitate. They installed a listening model into each pet with the aim of focusing
on conversations with children. The final product that Funki launched was a fully
automatic humanoid robot with features never seen before in the consumer market, called
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 M3gan. Thanks to Megan, parents don't need to spend 78% of their time, according to
scientific research, reminding their kids about simple things in everyday life like flushing
the toilet, washing their hands or turning off the lights. When Megan is around, she will
take care of the little things so that parents can spend more time on more important things
while their children still have friends to confide in and accompany in life.

b. Step 2 : Designing a customer-driven marketing strategy 

- Selecting customers to serve (target audience) : Funki toy company targets children
between the ages of 7 and 12. In the modern era when parents are always busy with work,
a toy that can eat, talk, play with their children is a very useful thing for parents because
deep down they always know that their children need friends who literally always stay by
their side.
- Choosing a value proposition : 
 A slogan is an attention-grabbing statement used to advertise or promote a brand's
products and services. Companies use slogans to tell their consumers what they want
them to associate their brand with. Slogans improve campaigns for their toy products,
aiming to ensure high sales for the company. Funki - the key to fun - a smart and easy
to remember slogan which represents the company as a toy company. This slogan is
memorable and conveys positive feelings about the brand. This slogan can help build
a relationship between a brand and the public, especially the children by telling them
what they offer: happiness for children.
 Purrpetual Petz which is a combination of the word “perpetual” (forever), “purr”
(reminds of something fluffy and cute) and “pet”. Which perfectly transmiss the
features of this product. This is unique, smart wordplay, easy to understand and
remember, especially for the children - the target audience of the product.
- Marketing management orientation (marketing concept) : The selling concept
reflects an inside-out perspective, while the marketing concept takes an outside-in
perspective. Aggressive selling focuses on creating sales transactions rather than building
long-term relationships with customers, with the aim of selling what the company makes
rather than making what the customer wants. The marketing concept, on the other hand,
is based upon identifying the needs and wants of target markets and then satisfying those
needs and wants better than competitors do. In contrast to the selling concept, marketing
focuses on finding out the needs and wants of potential buyers, whether organizations or
customers and then providing goods and services that meet or exceed the expectations of
those buyers as the path to profits. The marketing concept is oriented toward pleasing
customers by offering value, focusing on the needs and wants of the customers so the
organization can distinguish its product from competitors’ offerings.
- In this case, Funki company's product called Purpetual Petz was intimated by a business
rival. They produced a comparable item and marketed it for half the price of Purpetual
Petz. That was undoubtedly a significant risk for Funki, therefore they made the decision
to develop a new, more advanced product with innovations never previously seen in the
consumer market in order to set their offering apart from those of other companies. They
continue to focus on the requirements of their target market while making improvements
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 in order to produce Megan, a product that exceeds their expectations. They use marketing
data to focus on the needs and wants of the potential customers in order to develop
marketing strategies that not only satisfy the needs of the customers but also accomplish
the goals of the organization.

c. Step 3 : Constructing an integrated marketing program: More detailed analysis in

the following section

d. Step 4 : Building customer relationships and delight them

- Customer satisfaction is a goal that company strive to earn. Companies can achieve
customer delight by promising only what they can deliver and then delivering more than
they promise.
- Customer value : Creating customer value is a core business strategy of many successful
firms. Customer value is rooted in the belief that price is not the only thing that matters. It
is important not to base value on price (instead of service or quality) because customers
who only value price will buy from the competition as soon as a competitor can offer a
lower price. It is much better to use marketing strategies based on customer relationships
and service, which are harder for the competition to replicate. For instance, Southwest
Airlines doesn’t offer assigned seats, meals, or in-flight movies. Instead the budget
carrier delivers what it promises: on-time departures. In “service value” surveys,
Southwest routinely beats the full-service airlines such as American Airlines, which
actually provide passengers with luxuries such as movies and food on selected long-haul
flights.

e. Step 5 : Capturing value from customers and achieve profits : loyalty, trust, free
advertisements 

IV. ACTIVITIES
1.  Observational research
- Observational research involves gathering primary data by observing relevant people,
actions, and situations. 
- Researchers often observe consumer behavior to glean customer insights they cannot
obtain by just simply asking customers questions. For instance, Fisher- Price has
established an observation lab in which it can observe the reactions little tots have to new
toys. The Fisher - Price Play Lab is a sunny, toys strewn space where lucky kids  get to
test Fisher - Price prototypes, under the watchful eyes of designers who hope to learn
what will get them worked up into a new-toy frenzy.
=> This is exactly what Funki does to delight their customers, enhance customer
experience and collect information about the customer's reaction to the current product,
thereby offering solutions for the new product that reflects the customer demand 

2. New- product development : 8 steps

- A firm can obtain new product steps two ways. One is through acquisition - by buying a
whole company, a patent, or a license to produce someone else’s product. The other is
through the firm’s own new product development efforts. By new products, we mean

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original products, product improvement, product modifications, and new brands that the
firm develops through its R&D efforts. 
- New products are important to both customers and the marketers who serve them: They
bring new solutions and variety to customers' lives, and they are the key source of growth
for companies. 
- In the movie, Gemma was told to give out a new product with a lower price to be more
competitive in the market since 6 months ago. David was always aware of the
development state of the products of his company (PLC of products). That’s why he
knew when, at which point of time he should bring the new product, new improvement.
- In step no.6 - Product Development, R&D or engineering develops the product concept
into a physical product (product concepts can be just a word description, a drawing, or
perhaps a crude mock-up). The product development step, however, now calls for a huge
jump of investment. It will show whether the product idea can be turned into a workable
product. Here in M3gan, we can see Gemma spent a huge amount of money to turn
‘Megan’ idea into a physical robot, a real prototype that was later brought to the board to
raise the investment. 
- The R&D hopes to design a prototype that will satisfy and excite consumers and that
can be produced quickly and at budgeted costs. 
- Often, products undergo rigorous tests to make sure that they perform safely and
effectively, or that consumers will find value in them. Companies can do their own
product testing or outsource testing to other firms that specialize in testing. Here in
M3gan, we see them do it on their own.
- Let’s take Google as an example: Google is widely innovative. At many companies,
new product development is a cautious, step-by-step affair. In contrast, Google’s new-
product development moves at the speed of light. Its famously chaotic innovation process
has unleashed a seemingly unending service (Gmail), a blog search engine (Google Blog
Search), and a photo sharing service  (Google Picasa) to a universal platform for mobile-
phone applications (Google Android), a cloud- friendly Web browser (Chrome), projects
for mapping and exploring the world (Google Maps and Google Earth), and even an early
warning system for flu outbreaks (FluTrends). What ties it all together is the company’s
passion for helping people find and use information. 

3. Promotion activities
The company uses both types of marketing: Marketing online and offline:
- Marketing offline:
+ In general, offline marketing (offline marketing) is a form of sales in which advertising
is completed on different types of platforms in addition to network media. 
+Megan’s livestream was advertised on TV news on the day it’s released
=> Pros: Approach to a larger audience ranging from young people who are close to the
internet to people who belong to older generations and are not familiar with the internet,
for example, grandparents who are affordable, only live with the TV, and are attracted by
Megan and want to buy their kids the greatest advancing technological toy as a present.
=> Cons: The cost is huge but with the large size of the Funki business, it’s affordable.

- Marketing online:
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+Digital marketing, also called online marketing, is the promotion of brands to connect
with potential customers using the internet and other forms of digital communication.
+The advertisement of Purrpetual Petz is shown on the big LED screen in the first foyer
of the company, using cloud-based content management system (CMS) and wireless
internet technology. So whenever customers visit the company they could see the
advertisement, approaching the information of the product, while waiting for the
customer service. Showing its advertising video + having customers to really use their
service, not only can the company convey product information to customers, they can
also reduce the cost of advertising on other LED screens in other commercial centers.
+The exclusive livestream of Megan’s launch was shown on the company’s website on
20:00 eastern hour
=> Pros: Internet marketing is much cheaper than traditional means. Some online
marketing channels are even free, like simple interactions on social media or sending
emails.
Online marketing allows for fairly specific demographic targeting. Certain ages, genders,
locations, interests, and shopping behaviors can be targeted. This allows for a cleaner
subdivision of audiences, which in turn allows for more targeted messaging and results.
=> Cons: It requires technical knowledge since online campaigns are typically created
with computer software or online tools. But Funki company does have a specialized
department in this term which is the ‘Software Engineering’ room on the 6th floor of the
building.

V. MARKETING IN THE MOVIE

1. Product
a, Definition
- Define a product as anything that can be offered to a market for attention  acquisition,
use or consumption  that might satisfy a want or need.  Products include more than
tangible objects like cars or mobile phones. Broadly defined, products also include
services, events, persons, places, organizations, ideas or mixture of these. 

b, Product in M3GAN
- Both Funki and M3GAN are Consumer Products (Products and services bought by final
consumers for personal consumption) (source: p250-251)

 Product #1 Funki 
- This type of product can be considered as a Shopping product source: p250-251)
(products that are less frequently purchased and can be compared carefully on suitability,
quality, price, and style. When buying this type of product, consumers spend much time
and effort in gathering information and making comparisons) 

 Product Attributes (source p.253)

- Product quality: The characteristics of a product that bear on its ability to satisfy stated
or implied customer wants and needs. 

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- In the movie, the company has identified the needs and wants of all children: the need to
have unique toys and the wants  to have a forever friend who will always be with them. 
 Product features:
- Funki has sustainability and even “lives longer than you”.
- Funki can be both a toy and a pet to children, with customized apps children can even
feed them. The app is updated with new content daily: watch Youtube, learn fun facts,
play multi-platform games and buy accessories for the pets.
- Funki can take pictures and can communicate at a certain level. 
- Funki can speak 8 different languages which create a great opportunity in reaching even
more customers worldwide (Globalization).
- Product Style and Design:
The toys are children-friendly and come with 6 different types of designs and colors to
collect. Each even has its own personality for the children to choose. The design of each
Funki is colorful, basic and easy to take around which are great features to be children's
toys. 

 Product #2 M3GAN
- Product quality: In the movie, M3GAN was created to be more than just a toy and
gradually became a caretaker for children. This product focus on the wants of children to
have a friend who can communicate, play and understand them and the wants of parents
to have a babysitter who can take care of their children.
- Product features: Megan is easy to learn to satisfy the need of children means with
Megan children’ need can be met quickly.
- Product types and design: Have an appearance of a little child -> suitable to be a friend
for children as children tend to be more open around people their age. 

 Product Life-Cycle 
- Product Life-Cycle (PLC) is the course that a product’s sales and profits take over its
lifetime. The PLC has five distinct stages:
- Product development begins when the company finds and develops a new-product idea.
During product development, sales are zero, and the company’s investment costs mount.
- Introduction is a period of slow sales growth á the product is introduced in the market.
Profits are nonexistent in this stage because of the heavy expenses of product
introduction.
- Growth is a period of rapid market acceptance and increasing profits.
- Maturity is a period of slowdown in sales growth because the product has achieved
acceptance by most potential buyers. profit level off or declined because of increased
marketing outlay to defend the product against competition.
- Decline is the period when sales fall off and profits drop.

Through proper research, our team found out that the product “Purrpetual Petz” has
entered a growth stage. In this stage, when the product has already proved its potential,
new competitors, who are attracted by the opportunities and profits, decide to enter the

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market. In the movie, a competitor of Funki has already released their new toy Furzeez
which is a rip-off Purrpetual Petz. Therefore, Funki now has to use several strategies to
sustain their market growth as long as possible. They need to improve product quality
and add new features and models: They asked Gemma 6 months ago to make the toy
simpler and more affordable in order to compete with other upcoming opponents in the
market.

2. Price
a, Definition
The amount of money charged for a product or service, or the sum of the values that
customers exchange for the benefits of having or using the product or service. 

b, Price in M3GAN
- Price Changes (Objective 4: Price change - p 347)
- Initiating price changes
In the case of falling demand in the face of strong price competition, the company is in
need of making their product simpler in order to cut prices to boost sales and market
share . In the movie, the manager demanded a simpler version of Purrpetual Petz to put
on the shelves for 50 dollars.

3. Place
a. Definition
Place refers to where consumers buy your product, or where they discover it. Today's
consumers may learn about products and buy them online, through a smartphone app, at
retail locations, or through a sales professional.

4. Promotion
a. Definition
- Promotions refer to the entire set of activities, which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce them to buy the
product, in preference over others.
- Promotion in the movie (Above-the-line promotion)
Above-the-line promotion: it is used when the focus is on mass media promotion to reach
a large audience. ATL includes media such as radio, TV, print media such as newspaper
and magazines, and billboards.
- Activities:
- Funki has promoted PurRpetual Petz through television advertising videos to reach
parents of children - who directly make product purchase decisions for their children.
Through the TechTalk newsletter, Funki was able to promote the M3GAN doll on a large
scale with features that attracted the public's curiosity, helping to increase the awareness
of this product.
- Funki showed an interview related to M3GAN with Cady - the character who
experiences the product on the LED screen in the company's lobby, revealing the
outstanding features of this robot.

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- The company held an exclusive livestream on the company's website, officially showing
how the babygirl robot product called M3GAN with unique functions can meet the price
of 10,000 dollars.

5. People
- This aspect refers to those who are employed by the company to: design, develop, and
manufacture the products; do market research to establish demand and determine
customer needs; manage the supply chain to ensure timely delivery; provide support
services; and serve as touch points for customer interaction among others.
- People who make the products:
- Gemma - who played a key role in making M3GAN has demonstrated excellent work
results with his enthusiasm and productivity as M3GAN operates smoothly and possesses
the possibility of continuous development in the future. This has both created trust in the
company's directors and increased the quality of Funki's brand image.
- People who bring the products to the customers
Funki's research staff regularly experiments with and experiences products to understand
children's feelings when playing; Besides, at Funki, there will be people who observe and
record notes, good points and limitations of each product as well as children's reactions
by letting children directly use toys. From there, Funki can understand the children's
wishes and be able to satisfy these "child customers".
- People who talk to the customers
Funki has spaces for customer service staff to communicate not only directly with
children but also with parents to identify their problems and questions and promptly
answer and resolve them.

6. Physical Evidence
 Physical environment
- The building is also the headquarters of the company
- Modern facilities as a technology company
- Elegant, advanced design
 Spatial layout 
- 10 specialized departments
- The main color tone is cool gray but it is very suitable to highlight the cheerful colors
representing children and toys for children.
- The arrangement of spaces with close association according to each department shows
high professionalism
 Corporate branding
- Funki products bring good response (appears even competitors copy products)
- The successful manufacturing of exclusive M3GAN products, pioneering in the field of
AI toys further strengthens the position of Funki Corporation.
- Funki brand name conveys the slogan "The key to fun is Funki"
 Other elements
- Professional and serious attitude of staff
- Strictly dressed, staff card is put into use
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➨ The factors contributing to the formation of the letter P in "Physical Evidence" have
been properly and logically built by Funki, contributing to building trust among
customers and further reinforcing Funki's success.

VI. LESSONS
1. If you don't understand what your customers need, you can't make users
satisfied
- Funki has really put its heart into the research process and clearly shows his desire to
understand the feelings of children - his "final customers", who will directly use the
product to be able to create, improve, and give children the most useful results. We see in
the video that, through consulting departments, observation, and research spaces of
children's behavior and above all, we see that the timeless product M3GAN is the result
of the process of summarization from this study.

2. Good products are never enough

- Not only good, the product should be produced at a reasonable cost, ensuring that the
price on the shelves will be "soft" with shoppers. Typically, a competitor of Funki has
created a Furzeez product that has almost all the same features as PurRpetual Petz but at
half the price. We really see the importance of price alongside a good product.
- On the other hand, is a good product really known to be a good product without
"marketing"? Funki, as a business, has really understood this and has invested in many
activities to promote M3GAN such as: LED screens, reporters and journalists, and
organizing an exclusive livestream.

3. Marketing must constantly change to keep up with new trends

- It can be seen that the launch of a product using AI technology, contributing to the race
to join the technology upgrade has also had a significant impact on Funki's way of
promoting this product. No longer advertising videos on TV or audio, Funki has chosen
to do marketing through media, namely broadcasting live on the company's website and
holding press conferences. This change or adaptation is really reasonable when today,
people tend to be exposed to the Internet and social networking sites rather than watching
TV or listening to the radio.

4. Learn how to apply psychology to marketing (start with a story)

- Funki has partly applied psychology to the M3GAN promotion strategy. Choosing to
interview Cady - the character of experience, opens up answers that hit the audience's
sympathy about Cady's pitiful situation, and from there, the mention of M3GAN as a new
breeze in the life of the little girl, becoming a close friend, making Cady's psychological
trauma after the death of her parents like disappearing is really a way to significantly
increase the viewer's confidence in the features and meaning of M3GAN.

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