CHAPTER VII: MARKETING

Lecturer: Do Duy Kien, PhD

 I. THE ROLE OF MARKETING

• Help the managers to orientate the future systematically

• Help the enterprise to combine the resources effectively
• Help to emphasize the goals, objectives and
marketing policies
• Help to propose the standards to control and evaluate the
performance
• Help to solve the problems when business
the environment changes
• Help to attract the participation of the
managers
II. Step by step to build a marketing plan
(1) Analyze the marketing environment of the enterprise
(2)Determine the target market and locate the products
in the market
(3) Determine the marketing objectives
(4) Build the marketing strategies (marketing mix)
(5) Raise the marketing funds
1. Marketing environment analysis
1.1. SWOT analysis
SWOT S W
O SO OW
T ST WT

• SO: base on the strengths to take the advantage

of opportunities
• OW: overcome the weaknesses to take the
advantage of opportunities
• ST: base on the strengths to solve the threats
• WT: Weaknesses and threats=>The goals, objectives and
strategies have to be reduced or the enterprise will be
bankrupt
1. Marketing environment analysis
2. PEST analysis
1. Political factors
•Antitrust law
•Law on environmental protection
•Tax policies
•Labor law
•Other law and regulations
1. Marketing environment analysis
1.2. PEST analysis
1.2.2. Economic factors
•Inflation
•Unemployment
•Income
•Energy (supply resources and
costs);
•Other factors
1. Marketing environment analysis
1.2. PEST analysis
1.2.3. Socio-cultural factors
• Demography (age, gender, …)
• Income distribution
• Migration
• Life style
• Consumer trends
• Educational level
•Other factors
1. Marketing environment analysis
1.2. PEST analysis
1.2.4. Technological factors
•Inventions and new discoveries
•Speed of technology transfer
•The speed of technological obsolescence;
•Information and communication technology;
•Other factors
1. Marketing environment analysis
1.3. Five forces competition analysis - Michael Porter
2. Determine the target market and locate
the market
Steps:
•Market segmentation
•Target market determination
•Products location
2.1. Market segmentation
2.1.1. according to geography
• Area
• Region
• Population density
• Climate
2.1.2. according to psychology
• Social class
• Life style
• Personality
2.1.3. According to demography
• Age
• Gender
• Family size
• Family life - cycle
• Income
• Job
• Education
• Religion
2.1.4. According to purchasing behavior
• Purchasing reason
• Benefit
• Using condition
• Durable/ loyal level
• Ready stage
• Attitude
2.2. Target market determination
4.2.1. Criteria for evaluating the target market segment

•The size of the market segment;

•Growth potentials of the market segment;
•Profitability of market segments;
•Competitive situation on the market segment;
•The suitability of this market segment with growth
orientation of enterprise
2.2. Target market determination
2.2.2. Target market determining strategy
•Concentrated marketing strategy: The enterprise chooses a
market segment and only focus on it
•Undifferentiated marketing strategy : The enterprise
supplies only 1 kind of product for all market with 1
marketing program (only apply this strategy when the
market is highly uniform)
•Differentiated marketing strategy: The enterprise supplies
the different products with different prices and the each
market segment will have a separated marketing program
(apply this strategy when the market is heterogeneous and
should compare, distinguish to get higher effectiveness).
2.2. Target market determination
2.2.3. Competitive strategy in the target market
•Low-cost strategy
•Differentiated strategy
•Concentrated strategy
2.3. Positioning products in the
market
3. Marketing Objectives Determination
• Financial Objectives
•Non - Financial Objectives

SMART
•Specific
•Measurable
•Agreement (Achievable)
•Realistic
•Time – framed
4. Marketing Mix

•Product
•Pricing
•Place
•Promotion
4.1. Product strategy
4.2. Pricing strategy
4.2.1. The bases for pricing
• Costs:
– Raw materials cost
– Labor cost
– Operating cost
• Expected profit
• Competitors’ price
•Customers’ valuation: The price that customers willing to
pay for the benefits of goods/services
2. Pricing strategy
The bases for pricing

with a low price, you have to consider:

•Can you continue price – based competition?
•Does the low price affect your reputation?
•Is the price an important factor with your target customers?
4.2. Pricing strategy
4.2.2. Pricing strategies:
• High pricing strategy
• Penetration pricing strategy
• Low pricing strategy
• Skimming pricing strategy
• Discrimination pricing strategy
• Products/services portfolio pricing strategy
4.2. Pricing strategy
4.2.2. Pricing strategies:
4.3. Place (distribution)
strategy
4.3.1. Functions of distribution channels
• Establishing relationships
• Negotiating
• Transporting, storing, preserving
• Financing
• Completing products
• Sharing the risks
• Researching market
• Promoting the sales
4.3. Place (distribution)
strategy
4.3.2. The commercial intermediaries
• Wholesalers
• Retailer
• Agents
• Brokers
• Distributors
4.3. Place (distribution)
strategy
4.3.3. Fundamental distribution channels selection
• (In)direct distribution channel using
• Single or multi – level distribution channel using
• Commercial intermediaries
•Channel length (number of intermediate levels in the
channel)
•Channel width (number of intermediaries at each
distribution level)
• The strategy for preventing conflict in
distribution channels
4.4. Promotion strategy
4.4.1. Marketing message
• Content of marketing message:
– Attention
– Hold Interest
– Create Desire
– Lead to Action
4.4. Promotion strategy
4.4.1. Marketing message
• Requirement for marketing message
– Emphasis or evoke the existing or potential
demands of target customers
– Demonstrate that these demands can be met immediately
– Explain why the enterprise can meet these demands by the
most effective ways
– Explain the benefits the customers will receive
– Give examples or testimonials from customers who
have used the product / service
– Describe price, payment conditions and other policies
– Describe warranty
4.4. Promotion strategy
4.4.2. Promotion tools
• Advertisement
• Discount
• Public relations
• Individual sales
• Direct marketing
5. Marketing budgeting
5.1. Information resources for
marketing budgeting
•Base on the marketing expenses of similar goods/services
in the market
•Base on the unit price of marketing tools (for
example: advertising on TV or radio, newspaper ads, print,
…)
•Base on the historical costs
5. Marketing budgeting
5.2. Estimation methods of marketing
budgeting
•Base on total expected revenues
•Base on total historical revenues
•Base on the sales
•Base on the average marketing expense of the sector
 6. Market Research
• Research questions
• Designing survey, questionnaire
• Competitors analysis
References
Copyright (ppt slides): Tran Minh Thu, PhD
Foreign Trade University