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Summary - Very helful

Basic Marketing (Trường Đại học Ngoại ngữ Tin học Thành phố Hồ Chí Minh)

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BASIS MARKETING

Contents
CHAPTER 1 MARKETING’S VALUE TO CONSUMERS, FIRMS, SOCIETY......1

CHAPTER 2 MARKETING STRATEGY PLANNING...........................................10

CHPATER 3 EVELUATING OPPORTUNITIES IN THE CHANGING

MARKETING ENVIRONMENT....................................................................................12

CHAPTER 4 FOCUSING MARKETING STRATEGY WITH SEGMENTATION

AND POSITIONING.......................................................................................................15

CHAPTER 1 MARKETING’S VALUE TO

CONSUMERS, FIRMS, SOCIETY
1. Marketing-what’s it all about?
- Marketing is more than selling or advertising

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2. Marketing is important to you

- Marketing is important to every consumer (people pay; buy products; advertising)
 Marketing affects almost aspects of your daily lives
 Marketing provides direction for production
- Marketing will be important to your job (market themselves; career opportunities)
- Marketing affects innovation and standard of living (stimulates
research/innovation)
3. How should we define marketing?
- There are micro and macro views of marketing

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 Micro View (anticipate customer need)

 Set of activities
 Performed by individual organizations
 Macro View (meets objectives of society)
 Social process
 Matches supply with demand
- Marketing defined
Marketing is the performance of activities that seek to accomplish an
organization’s objectives by anticipating customer or clients needs and directing a
flow of need satisfying goods and services form producer to customers or client
The main aims of marketing is to identify customers 'needs and to meet those
needs -> product almost sells itself

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4. Macro marketing
- Emphasis is how the whole marketing system works
- Separation between producers and consumers
Economies of scale – which means that as a company products larger numbers of a
particular product, the cost of producing each individual unit usually goes down

- Marketing functions help narrow the gap

The universal functions of marketing are buying, selling, transporting,
storing, standardization and grading, financing, risk taking and market
information
The buying function means looking for and evaluating goods and services
The selling function involves promoting the product
The transporting function means the movement of goods from one place to another
The storing function onvolves holding goods until customers need them

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Standardization and grading involve sorting products according to size and quality
Financing provides the necessary cash and credit to produce, transport, store,
promote, sell and buy products
Risk making involves bearing the uncertainties that are part of the marketing
process
The market infomation function involves the collection, analysis and distribution
of all the…

- Producers, consumers and marketing specialists perform functions

Intermediary – someone who specializes in trade rather than production – plays a
role in the exchange process
Collaborators – firms that facilitate or provide one or more of the marketing
functions other than buying or selling
- New specialists develop to fill market needs

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E-commerce refers to exchanges between individuals or organizations – activities

that facilitate to exchanges – based on applications of IT
- Functions can be shifted and shared

5. The role of marketing in economic systems

Economic system – the way an economy organizes to use scarce resources to produce
goods and servies and distribute them for consumption by various pp and groups in the
society

Market – directed economy , the individual decisions of the many producers and
consumers make the macro-level decisions for the whole economy

6. Marketing’s role has changed a lot over the years

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Five stage in marketing evolution

- The simple trade era – a time when families traded or sold their surplus output to
local distributors
- The production era - a time when a company focuses on production of a few
specific products – perharps because few of these products are available in the
market
- The sales era – a time when a company emphasizes sellign because of increased
competition
- The marketing department era is a time when all marketing activities are brought
under the control of one department to improve short-run policy planning and to
try to interage the firm’s activities

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- The marketing company era is a time when, in addition to short-run marketing

planning, marketing pp develop long-range plans – sometimes five or more years
ahead – and the whole company effort is guided by the marketing concept
7. What does the marketing concept mean

The marketing concept means that an organization aims all its efforts at satisfying
its customer – at a profit

Production orientation – making whatever products are easy to produce and then trying to
sell them

Marketing orientation means trying to carry out the marketing concept

Three besic ideas marketing concept (1) customer satisfaction (2) a total company effort
(3) profit – not just sales – as an objective

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CHAPTER 2 MARKETING STRATEGY PLANNING

1. The management job in marketing

The marketing management process is (1) planning marketing activities (2) directing
the implementation of the plans (3) controlling these plans

- Strategic management planning concerns the whole firm

The job of planning stretegies to guide a whole company is strategic
(management) planning – the manaterial process of developing and maintaining
match between an organization’s resources and its market opportunities
2. What is marketing strategy ?
- Marketing strategy specifies a target market and related marketing mix

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- Target market – fairly homogenous (similar) group of customers-to whom

company wishes to appeal
- Marketign mix – the controllable variables the company puts together to satisfy
this target group (Product, Price, Promotion, Place)
3. Slecting a market-oriented strategy is target marketing
- Target marketing is not mass marketing
Mass marketing – the typical production-oriented approach-vaguely aims at
“everyone” with the same marketing mix. Mass marketing assumes that everyone
is the same – and ti considers everyone to be a potential customer
4. Developing marketing mixes for target markets
- The four Ps make up a marketing mix
Product-the good or service for the target’s needs
Place-reaching the target
Promotion-telling and selling the customer

Personal selling

Customer service

Mass selling

Publicity

Sales promotion

Price-making it right

5. The marketing plan is a guide to implementation and control

- The marketing plan is a written statement of a marketing strategy and the time-
related details for carrying out the strategy
6. Types of opportunities to pursue
- Market penetration
- Market development

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- Product development
- Product development
- Diversification

CHPATER 3 EVELUATING OPPORTUNITIES IN THE

CHANGING MARKETING ENVIRONMENT
1. Marketing environment

The external market environment four major

- Economic environment
- Technological environment
- Political and legal environment
- Cultural and social environment
2. Objectives should set firm’s course
- Three basis objectives provide guidelines

Engage in specific activities that will perform a socially and economicially used
function

Develop an organization to carry on the business and implement its strategies

Earn enough profit to survive

3. Company resources may limit search for opportunities

- Financial strength
- Producing capability and flexibility

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- Marketing strengths
4. Analyzing competitors and the competitive environment
- Economist describe four basis kinds of market (competitive) situations: pure
competition, oligopoly, monopolistic competition and monopoly
 Monopoly : one supplier, more demand
 Monopolistic competition : 1000-5000 supplier, more demand
 Oligopoly : 205 supplier, more demand
 Pure competition : thousands of suppliers, more demand
- Competitve advantage-requires an understanding not only of customers but also
competitors
- Competitor analysis – an organized approach for evaluating the strengths and
weaknesses of current or potential competitors’ marketing strategies
- Competitve rivalas – firms that will be the closet competitiors
- Competitive barriers – the condition that may make it difficult, or even impossible,
for a form to compete in a market
- Seek information about current and potential competitors
5. The economic environment

Economic and technological environment affects the way firms-and the whole
company-use resources

- Economic conditions change rapidly

- Interest rates and inflation affect buying
Interest rate – the charge for borrowing money
- The global economy is connected
Exchange – how much one country’s money is worth in another country’s money
– have an important effect on international trade
6. The technological environment
- Technology affects opportunities

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Technology is the application of science to convert an economy;s resources to

output
- Internet technologies are reshaping marketing
The internet is a system for linking computers around the world
7. The political environment
- Nationalism can be limiting in international markets
Nationalism – an emphasis on a country’s interests before everything else – affect
how macro-marketing systems work
- Regional groupings are becoming more important
- The unification of Europe markets
- NAFTA is building trade cooperation
8. The legal environment
 Government policy
 Various laws that affect companies (corporate tax, VAT)
 Political risks
- Trying to encourage competition
- Antimonopoly law and marketing mix planning
- Prosecution is serious – you can go to jail
- Consumer protection laws is not new\
- Foods and drugs are controlled
…
9. The cultural and social environment
 Demography
 Demographic factors:
o Rate of growth or decline in populations
o Change in the age

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Cultural and social environment affects how and why people live and behave as they
do – which affects customer buying behavior and eventually the economic political
and legal environments

- Changing women’s roles

- Changes come slowly

Cutural groups:

 Ethnicity
 Religions
 Social class
 Membership of organizations

CHAPTER 4 FOCUSING MARKETING STRATEGY

WITH SEGMENTATION AND POSITIONING
1. Search for opportunities can begin by understading markets
- Market is a group of potential customers with similar needs who are willing to
exchange something of value with sellers offering various goods and services
- Generic market is a market with broadly similar needs – and sellers offering
various, often diverse, ways of satisfying those needs
- Product-market is a market with very similar needs and sellers offering various
close subsitute ways of satisfying those needs.
2. Naming product – market and generic markets
- Product type should meet customer needs
Product type describes the goods and services that customer want
Customer (user) needs refer to the needs the product type satisfies for the customer
Customer type refers to the final consumer or user of a product type

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Geographic area is where a firm competes or plns to compete, for customers

3. Market segmentation defines possible target markets
- Market segmentation is a two – step process
(1) Naming broad product – markets
(2) Segmenting these broad product – markets in order to selct target markets and
develop suitable marketing mixes
- Segmenting is an aggregating process – clustering people with similar needs into a
“market segment”
Market segment is a (relatively) homogeneous group of customer who wil respond
to a marketing mix in a similar way
- Homogeous (similar) within – the customers in a market segment should be as
similar as possible with respect to their likely responses to marketing mix
variables and their segmenting dimentions
- Heterogeneous (different) between – the customers in different segments should be
as different as possible with respect to their likely responses to marketing mix
variables and their segmenting dimentions
- Substantial – the segment should be big enough to be profitable
- Operational – the segmenting dimensions should be useful for identifying
customers and deciding on marketing mix variables

Target marketers aim at specific targets:

- The singel target market approach – segmenting the market and picking one of the
homogeneous segments as the firm’s target market
- The multiple target market approach – segmenting the market and choosing two or
more segments and then treating each as separate target market needing a different
marketing mix
- The combined target market approach – combining two or more submarkets into
one larger target market as a basis for one strategy
4. What dimensions are used to segment markets?

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 Behavioral
o Needs
o Benefits sough
o Thuoghts
o Rate of use
o Purchase relationships
o Brand familiarity
o Kind of shopping
o Type of problem solving
o Information required
 Geographic
o Region of world, country
o Region in country
o Size of city
 Demographic
o Income
o Sex
o Age
o Family size
o Family life cycle
o Occupation
o Education
o Ethnicity
o Social class
 Psychographic
o Life style
o Hobbies

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o Activities
o Opinions
- Qualifying dimentions are those relevant to including a customer type in a
product-market
- Determining dimentions are those that actually affect the customer’s purchase of s
specific or brand in a product-market
5. More sophisticated techniques may help in segmenting
- Clustering techniques try to find similar patterns wthin sets of data
- Customer relation ship management (CRM)
6. Differentiation and positioning take the customer point of view
- Differnetiate the marketing mix – to serve customers better
Differentiating the marketing mix to do a better job meeting customer’ needs, the
firm builds a competitive advantage.
- Positioning refers to how customers think about proopsed or present brand in a
market.
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