marketing management (part 1: abc)
TRANSCRIPT
Chapter 1Builiding customer strategy
Marketing ManagementDr. Nguyen Hai Ninh - FTU
Nguyen Hai Ninh. Dr.Hanoi Foreign Trade University – International
Business Department
Cell: (+84) 0915139839
Email: [email protected]
Class regulations
#1 On time (if you are late than teachers, pls wait until the break)#2 No voice in class (pls show the respect for lecturer and others)#3 No sleep (if you feel sleepy, feel free to go out, no need to ask for lecturer’s permission)#4 No food (but drinks are permitted) #5 No cellphone (switch off your phone ring before class starting)#6 No laptop, ipad, ipod. #7 No need to ask for the permission to be absence for class (don’t cheat or tell lie)#8 No mark bargaining!!!
Grading
Attendance: 10%
Mid-term assignment: 30%Final: 60%Total: 100%
In which:- Mid-term assignment: Marketing
environment analysis - Final: Group presentation - Peer 2 Peer evaluation is applied for group member
marking
Presentation topic
• Choose one existed company and their product/service
• Draft the marketing plan for them, including: Market analysis Marketing strategies
Marketing management Intro
Marketing Environment Analysis
Marketing Mix Strategies
Marketing Action Plan
Agenda
Wake up Activity:
Individually (10 min)- Are ready to be a Marketing Manager?
- What should you do to be a Marketing Manager?
- By your own, what is your definition of Marketing?
Definition and concepts
Marketing environment analysis
Marketing strategy
Marketing mix
Agenda
Part 1: Marketing Intro
Marketing conceptual definitions 1. Mar·ket·ing /ˈmärkitiNG/- The act or process of selling or purchasing in a market -The process or technique of promoting and selling products or services.
(Webster English dictionary)
2. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
(AMA, 2007)
3. Marketing is the management process which identifies, anticipates, and supplies customer requirements efficiently and profitably.
(UK Chartered Institute of Marketing)
“Marketing is putting the right product in the right place, at the right price, at the right time.”
Marketing managementThe art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
What can be marketed??
Services
Products Places
Ideas People
Sales: trying to get the customer to want what the company
produces
Marketing: trying to get the company produce what the
customer wants
Marketing v/s Selling
Main Goals of Marketing
Help to boost product salesPromote the product and corporate
awareness to the publicBuild corporate’s reputation
To attract new customer by promising superior value
To keep current customers by delivering satisfaction.
Needs: • Human basic requirements of food,
clothing, warmth, and safety
• Marketers do not create needs, needs
pre – exist marketers
Abraham Harold Maslow
(1908 – 1970)
Maslow's hierarchy of needs
Wants:• Specific objects might satisfy the need
• Shaped by culture and individual personality.
• People have almost unlimited wants but limited
resources.
Demands: • Desire to acquire
• Willing to buy
• Ability to pay
Product• ‘Product’ refers to the functions
and features of a good or service• Satisfy the needs of consumers• ‘Product’ also includes a range of
factors such as packaging, quality, warranties, after-sales service and branding
Need – food ( is a must )
Want – Pizza, Burger, French fry's ( translation of a need as per our experience )
Demand – Burger ( translation of a want as per our willingness and ability to buy )
Desire – Have a Burger in a five star hotel
Warm up Activity:
- Work in group of 5 persons (20 mins ).- Choose one product or service (new or market pre-existed) and one country, (market) that you/ your corporation have intention to do the business.
Eg: Café Trung Nguyen in USA, Pho Bat Dan in France…- Present your idea on class in 5 minutes to introduce about your proposed project and give detailed information to support the effectiveness of the project
Product life cycleStage 1: Research & Development –
high costs but no sales
Launch – high expenditure on promotion and product development, low sales
Stage 2: Growth: – sales increase and product should break-even
Stage 3: Maturity – sales stabilise, less expenditure on promotion needed, revenue & profit should be high
Satge 4: Decline – sales decline, extension strategies can be adopted or the product withdrawn
Growth - Slump – Maturity• Sales grow rapidly
• Product is first
introduced, falls, & stabilizes
Cycle-Recycle
• Sales grow rapidly
• Downfall, recover and down again
Scalloped
Succession of life-cycles based on discovery of new charcteristics, uses or
users.
Some Product life cycle patterns
Market
The group of consumers/organizations interested in the product/service has resource to purchase.
Penetrated market
Target market
Available market
Potential market
Those who have interested in acquiring the product (potential customer)
Those in the potential market who have enough money to buy product
The segment of the available market that the firm decided to serve (target customer)
Those in the target market who have purchased the product (current customer)
Market Classification
Market Segmentation
• Market segment: A sub-group of people or organizations sharing one or
more characteristics that cause them to have similar product needs
• Market segmentation: The process of dividing a market into
meaningful, relatively similar, identifiable segments or group
• Why we have to do market segmentation:
– Market have variety of product needs and preferences
– Help marketers better define customer and allocate the right resources
Market Segmentation Bases
Geography
Demographics
Psychographics,
Benefit sought
Usage rate
Region, market size, climate
Age, Gender, Income, Ethnic group, Marriage status
Personality, Motives, lifestyleBenefits, features customers seek from productAmount of product bought or consume
Pareto principle
80% effort create 20% results80% of total customers only generate 20% of the demand and usage while 20% of the rest will crate 80% usage use
Target market analysis
Identify your target market. Identifying your target market will help you use your resources more wisely as you market your company to a specific, manageable group of people.
1
Describe your target market demographically. Demographic characteristics include age, gender, marital status, family size, income, education level, occupation, race, and religion.
2
Describe your target market psycho-graphically. Psycho graphic information
tells you about your audience's attitudes, beliefs, emotions, and values.
3
© It is difficult to meet everyone's needs with a single product or service.
Describe your target market behavioristically. Behavioristic information helps you understand why someone purchases one product or service over another. It includes how often your target market buy the product, how much or how many they buy, if there was a specific occasion for using it, and how long it took them to decide to buy that product.
4
Orange – cutting Activity• Work in group (10 min)
• Do the market segmentation for your business
Eg: what is your target market, potential market (geographically, consumer
characteristics…)
• Present on class
Cus·tom·er /ˈkəstəmər/A person or organization that buys goods or services from a store or other business.
(Webster dictionary)
ConsumerA person who purchasesgoods and services for
personal use
CustomerImplies a relationship over
time between the buyer and a particular brand or retail
outlet.
...the emotional, mental and physical activities that people engage in when selecting, purchasing using, and disposing of products and services so as to satisfy needs and desires.
Consumer behavior is…
Buying is not just a necessary activity but an attractive and highly approved way of behaving.
“Consumption is the sole end and purpose of all production.”
-Adam Smith-
Consumer satisfaction
Dependent on a product’s perceived performance in delivering value relative to a buyer’s expectation.
Value and Satisfaction
Expectation
Perceived value
6 10
Perceived value
6 10
Expectation
If the perceived value is lower than the expectation of consumer, the satisfaction is low or even un-satisfaction and vice versa