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1. Explain the following :

1a . Production concept

Production Concept is a concept where goods are produced without taking into
consideration the choices or tastes of your customers. It is one of the earliest marketing
concepts where goods were just produced on the belief that they will be sold because
consumers need them.

Practiced by earlier industrials, it soon became an standardized practice. Ford ,
considered as one of the early champions of this concept once remarked that Americans
can get any car from Ford until it is black. This is one of the most famous quotes in
Marketing stressing the importance of Production concept and level of stress and
importance given to it.

But with the continuous industrialization and more and more players entered into
the market, the space available to sell your product have squeezed because too many
people were selling the same product that is why it became too obvious that the mass
production of goods which is the heart and soul of production concept can no longer
work because of too many me too products so the focus slightly shifted from Production
concept to Customization concept where each and every product is manufactured and
delivered according the tastes and choices of the customer. Dell is considered to be the
pioneer of this field.

Production concept means where marketers think that consumer buy only those
things which are available and highly affordable rather than think about the product
quality and other things. Here marketers think about only the production that's why they
don't think about the value and the satisfaction of the customer. So that marketing myopia
occurs here.

1.b. Product line



Product line is a group of products that are closely related such as same physical
characteristics, same usage, same consumer groups, and same marketing strategy.

For example, VinaMilk Company has an extensive range of products, for customers
to be aware of its nutritional products, the company has produced and launched Dielac
product line. Talking about Dielac, consumers will immediately realize that this is a brand
of nutrition products. This product line includes product groups such as nutritional
products for mothers (Dielac Mama, Dielac Optimum Mama); nutritional products for
children such as Dielac Optimum, Dielac Alpha, Dielac Star Care, Dielac Pedia);
nutritional products for adults (Vinamilk Sure Prevent, Nutritious Vinamilk, Vinamilk
Diecerna, Vinamilk weight loss, Vinamilk CanxiPro).
1.c. Augmented product

In the book "Principle Of Marketing" Philip Kotler et al devised a very interesting
concept of benefit building for products. Kotler suggested that if you view a product on
three levels it will help you extract all the benefits that your product offers. This strategy
has various names including Total Product Concept, Augmented Product and Three
Levels Of a Product (Core Product, Actual Product, Augmented product).

(Source :

/>Level One : Core Product

Level one is the most basic level and simply looks at what people set out to buy
and what benefits the producer would like their product to offer buyers. For example a
camera is expected to take pictures but there may be other benefits that the producer
wants the buyer to enjoy such as a wide lens, face recognition and high definition videos.
So prior to designing any product designers should list the core benefits the product needs
to provide.


Level 2 : Actual Product

Level two is about translating the list of core product benefits into a product that
people will buy. There may be competitor products offering the same benefits so the aim
at this stage is to design a product that will persuade people to purchase your product.
Kotler states that this can involve deciding on the quality level, product and service
features, styling, branding and packaging. For example Apple's iPhone design has
enabled it to become a smart phone market leader so that by September 2012 it was able
to launch the iPhone 5, the 5th version of this product. There are other smart phones on
the market but Apple has managed to design a product which people pre-order and camp
overnight outside Apple's retail stores so that they can be the first ones to buy the
product.

Level 3 : Augmented product

Level three involves deciding the additional non tangible benefits that a product
can offer. Competition at this level is based around after sales service, help lines,
warranties, free/cheap delivery and so on. In other words it is things that the product does
not do but customers may find them useful. Non tangible benefits such as product
warranties offer customers peace of mind and demonstrate the manufacturer has faith in
the quality of its product. In fact the ubiquitous use of some augmented benefits have
turn some level three benefits into a customer expectation for example customers expect
cars to have manufacturer warranties. Or as Apple's iPhone 5, in addition to the

technological features of a smart mobile phone as listening, calling, texting, internet
access, film, photography, watching movies, listening to music, .. . manufacturers also
provide free cloud memory with 5GB iCloud users to store personal data. Or another
example : When shopping at the supermarket, you get the added services such as free
home delivery, free gift wrapping, accumulate points to get discounts ...


1.d. Social marketing concept

This is a new concept which was conceived in the 1970s and caused a lot of
attention from social classes.

This views that activities of an enterprise is to determine the needs, wants and
interests of target markets and satisfy them by more effective method than competitors
while still maintaining and developing benefits for consumers and society as a whole.

Social Marketing Concept requires marketers to balance three objectives when
designing marketing policies: satisfy customers’ needs, contribute to the achievement of
the corporate’s profits and ensure social welfare. As a result, marketing activities will be
significantly better with longer-term benefits.

The choice of a particular philosophy in marketing in marketing management
depends on a lot of factors: the competitive position of the business, product and
service’s features, needs of target markets, abilities of marketing team, etc. .. It is
important that the implementation of its marketing philosophy is to maximize clients’
satisfaction, contribute to the achievement of the business’s goals and not to damage the
interests of the society.

For example: Today, largest automobile manufacturers in the world such as
Toyota, Nissan, Mazda, BMW, Hyundai has been developing many cars that are
increasingly friendly to humans and the environment by saving manufacturing materials,
fuel, reducing CO2 flowing into the environment, creating more utility for users; Hybrid
cars can run by both internal combustion engines and battery. This growing trend has
created strong competition in the automobile industry in the world.

2. Explain various concepts of marketing with suitable examples.


2.1. The selling concept : selling concept is a traditional concept of Marketing. In
traditional concept emphasis was on only selling the product. Maketers would not bother
about customers wants and would think that customers would buy whatever is offered to
them. Marketing research was not given any importance. Emphasis was only on
production and selling the product.

2.2.The Marketing concept : Marketing concept is the modern concept of marketing.
Here the customer is considered as the soul of the entire marketing activity. The needs of
customers are found out through marketing research and then products are developed to
satisfy those needs. Building customer relationship and maintaining those relationship is
given lot of importance. Customer is considered as the king of the market. This approach
is used in today’s globally competitive marketing world.

Marketing Concept Components : Goals, Customer Needs and Wants, Deliver
Product or Service.

Company Goals : Defining your company's goals is one of the primary components of the
marketing concept. Make a plan for what you'd like to achieve for the year, whether it's to
increase sales, introduce a new product to the market, explore new media for advertising,
open an online store or retain customers. Your goals help give your business direction
and focus. They should be specific; stay away from making general statements about
what you'd like to do. Achieve this by assigning a timeframe and a dollar amount to each
goal, where applicable. These tactics ensure that your goals are timely and measurable.
The goals you set should also be realistic and attainable. Use previous sales and your
knowledge of the market to help you.

Customer Needs and Wants : Without customers, your business will see a decline in sales
and may eventually be forced to close its doors. For this reason, marketing focuses on
identifying your target audience and then identifying their needs and wants. Relate their

needs and wants to the products and services your company offers or plans to offer.

Find out customer needs and wants by conducting research. You can email them surveys,
ask questions on your social networks or company blog, hold focus groups or call them to
conduct brief surveys over the phone.

Deliver Product or Service :With your goals and your customers' needs and wants
solidified, create and deliver a product or service that will enhance their lives in some
way. Your product might help them relax, save time, save money, restore their energy, be
more productive or decorate their homes.

In accordance with the marketing concept, the product or service you deliver should bring
members of your target market a level of satisfaction.

(Source: /> components-marketing-
concepts.html#ixzz32uEi9SQX)

*. Marketing Concept Vs. Selling Concept

Selling Concept (Source: /> - Inward focus on business. wp-content/uploads/2008/04/concept.gif)

Marketing Concept
- Outward focus on customer.

- Define business by goods and - Define business by benefits for
services. customer.

- For everybody or the average - To a specific group of customer.
consumer.
- Profitability through customer

- Profitability through sales volume. satisfaction.
- Less favorable in a competitive
- More favorable in a competitive
environment. environment.
How the companies think ?
- Converting product into cash. - Converting customers need into
- Emphasis of sale of the product product.
already used.
- Emphasis on product planning and
- Fragmented approach to selling. development.
- Buyer beware principle followed.
- Cost determine price. - Integrated approach to marketing
How the companies act ? - Seller beware principal followed
- Focus on seller’s needs. - Customer determine price, price
- Holds customer and business.
- Manufactures the product first. determine cost.
- Sales volume oriented. - Focus on customer needs.
How the companies perform ? - Holds customer and business.
- Product supreme. - Indentifies the customer first.
- Profit through sales volume. - Customer satisfaction with profit

oriented.

- Customer supreme.
- Profit through customer satisfaction.

- Planning is short term oriented. - Planning is long term oriented.
- Aims at customer as profit targets.
- Aims at customer satisfaction with
companies profit.


Examples :

Selling oriented companies : Insurance, encyclopedia, online shopping, Door-to-door
selling.

Marketing oriented companies : Dell computers – provides platforms on which each
persons customizes the features desires; Automobile industries; Designer clothes.

2.4. Customers Vs Consumers
- Customers BUY the product. (Ex : I bought a new TV)
- Consumers USE the product. (Ex : The comsumer/user is members of my family)

2.5. What is a Market ?
All potential customers who share common needs and wants, and who have the

ability and willingness to buy the product, are considered a market.

For example, nutritious milk markets in Vietnam is the subjects that interest buyers who
care about health care, and who are able and demand nutritious products; Gas market
serves households; housing market serves low-income people; the real estate market ....
2.6. Target Marketing

Focusing all marketing decisions on a very specific group of people who you want
to reach.

2.7. Customer Profile

Includes information about the target market with regard to the age, income level,
ethnic background, occupation, attitudes, lifestyle, or geographic residence of the

targeted customers. To develop a clear picture of that target market, businesses create a
customer profile. Marketer’s spend a lot of money on research to clearly identify the most

important characteristics of the target market’s customer profile to help them make
intelligent marketing decisions.

4 . “PLC as a tool for marketing strategy" justify.
PLC is an acronym of Product Life Cycle. Each product brought to market has its

own life cycle. It is the process of formation / introduction, growth, maturity and decline.
Typical life cycle of a product likes a sinusoidal curve and can be shown by sales

line (Sales) and profit line (Profit) as shown below:

(Source : /> The shape of the two lines will vary for each product. However, the basic shape of
the two lines and the relationship between them in general is alike. The length of the life
cycle varies between products. It should be noted that studying the life cycle of a product
must first attach to a certain market. Because a product can be new in a market but may
not new in other markets and vice versa. A product can have a long life cycle in one
market but in other markets it cannot exist.

We will examine the main characteristics of each stage in the life cycle of the
product and marketing strategies corresponding to each time period.

4.1. Introduction:

This is the stage to sell products officially on the market. This phase has a low
consumption level, rates can be negative or very low because sales increases slowly,
distribution and advertising costs are higher because consumers do not have much
information about the product or they still do not give up previous consumption habits.

Failure rate of products in this stage is often very high. Introduction stage usually
requires high production cost and circulation cost so enterprises often sells as a loss or
gets very little profit.

During this period, marketing cost accounts for a large percentage as it is used for
promotional efforts (promotion) at a high level in order to (1) inform potential consumers
about new and unknown products, (2) stimulate product trial, and (3) ensure distribution
to retail stores. Marketing strategy in the deployment phase is to convince customers,
boost advertising promote sales, and sales at competitive prices.

At this stage, there are only a few competitors. Businesses focus on customers who
are the readiest to buy, usually high income ones. Prices tend to be high because of high
costs due to relatively low yields; technical problems in production can still be
unfinished; there should be high interest rates to offset high advertising costs to an extent
necessary to achieve development".

When introducing new products to the market, marketing managers can set up
different levels for marketing factors such as price, promotion and distribution.
Depending on its goals, enterprises can have the following marketing strategies:

- Rapid skimming strategy: is a strategy which launches new products to the market with
initial high prices and high level of promotion. Enterprise spends more on activities such
as advertising, promotions ... to convince customers about the benefits of the product and
to increase market penetration rate. This strategy is usually applied when most potential

markets are unknown about products; people who know about the product desire to have
them and are willing to pay high prices to buy; businesses face potential competition;

- Slow skimming strategy: is a strategy which launches new products to the market with
initial high prices and low level of promotion the strategy. Enterprise believes that high

prices will create higher levels of gross profit per unit of product, and low promotional
rates will keep marketing cost low, and thus it can gain more profit. This strategy is
applied when the market size is restricted; most people know about the products; buyers
are willing to pay high prices; and potential competition is not likely to happen.

- Rapid penetration strategy: is a strategy which launches new products to the market
with initial low price and high promotion cost, hoping to achieve rapid penetration rate
and rapidly increasing market share. This strategy is appropriate only when the market is
large and products are unknown; most buyers are sensitive to prices; competition may
happen; businesses can achieve efficiency corresponding to scale and can cumulative
production experience.

- Slow penetration strategy: is a strategy which launches new products to the market with
initial low price and low promotion cost. Low prices will encourage consumers to quickly
accept products, low promotional costs help achieve high net income. This strategy is
suitable for large-scale market, products are well known and strongly change according
to price; and there is potential competitiveness.

4.2. Growth:

During this period, sales and consumption volume begin to increase rapidly as most
customers have accepted the product. During this period, average cost reduces and profits
start increasing. This is when competitors begin to appear. Marketing strategy in this
stage is to take advantage to expand existing markets and penetrate into new markets.
Prices remain the same or decrease slightly as demand increases very fast. Enterprises
maintain promotion expenses at the same or increase slightly to deal with the

competition. During this period, companies may use some strategies to prolong rapid
growth of the market for as long as possible, such as:


- Improve product quality; enhance new features, and new designs for products.

- Penetrate into new market segments.

- Extend the scope of existing distribution channels and participate in new distribution
channels.

- Change ad target from introducing products to create trust and favor in products.

- Discount at the right time to attract customers who are sensitive to price.

4.3. Maturity:

In maturity stage, consumption revenue reaches peak and begin a downward trend,
marking saturation between supply and demand of goods on the market. This also proves
that big competitors have emerged. To compete against them, businesses need to lower
prices even though profits begin to fall. Marketing strategy in this phase is to increase
"harvest" by cutting marketing costs, changing advertising, stimulating distribution
channels, continuing serving traditional customers.

At the end of this period, to maintain and change the declining sales of products,
enterprises can choose the following options:

- Innovate products: research, design and test new models, change and add non-
physical factors as well as characteristics of the product. (For example: Apple continually
introduces new generations of mobile, constantly upgrades iOS operating system, and
improves new models, new features to prolong maturity and saturation stages: from
Iphone 3, Iphone 4, Iphone 5, 5S, and Iphone 6 in the future).

- Innovate the market by searching and creating new markets.


- Improve marketing tools: apply methods, new sales art, consumption links,
flexibly discriminate price under trading conditions.

4.4. Decline:

If in maturity stage, products cannot maintain their competitiveness, they will go
into recession stage which contains of most obvious manifestation such as continuously
decreased revenue. The cause may be products of competitors are manufactured by using
new and modern technology, making the enterprise’s products outdated; it may also
because the tastes of the majority of customers have changed.

It is time enterprises faced harsh choices. The choice of a marketing strategy in the
declining stage of the product depends very much on the relative attractiveness level of
the industry and the competitive strength of the business in that industry. If the product
becomes really obsolete, enterprises should stop production rather than to increase money
on sales promotion. In case, the enterprise likes to maintain production, the enterprise has
to cut down production costs and marketing costs, give up inefficient distribution
channels, consider lowering selling price in order to increase consumption to ensure to
gain profit. Especially, if the product is well-known, the product can be renewed and is
aimed towards both current and new markets based on marketing efforts of the business.
Whether products are perishable depends on management capabilities of enterprises.

Thus, the study of the life cycle of products has important implications in
business. No product life cycle is predetermined but the important issue here is that
businesses need to analyze volume and sales to recognize which stages of the life cycle
their products are in. Accurately forecasting product life cycle is very important to create
appropriate marketing strategies to bring benefits to enterprises. So it can be concluded
that: "PLC as a tool for marketing strategy".


5. Explain process of selecting the final price.

Process of selecting the final price, that is Pricing strategy refers to method
companies use to price their products or services. Almost all companies, large or small,
base the price of their products and services on production, labor and advertising
expenses and then add on a certain percentage so they can make a profit. There are

several different pricing strategies, such as penetration pricing, price skimming, discount
pricing, product life cycle pricing and even competitive pricing.

a. Penetration Pricing

A small company that uses penetration pricing typically sets a low price for its
product or service in hopes of building market share, which is the percentage of sales a
company has in the market versus total sales. The primary objective of penetration
pricing is to garner lots of customers with low prices and then use various marketing
strategies to retain them. For example, a small Internet software distributor may set a low
price for its products and subsequently email customers with additional software product
offers every month. A small company will work hard to serve these customers to build
brand loyalty among them.

b. Price Skimming

Another type of pricing strategy is price skimming, in which a company sets its
prices high to quickly recover expenditures for product production and advertising. The
key objective of a price skimming strategy is to achieve a profit quickly. Companies
often use price skimming when they lack financial resources to produce products in
volume, according to the article "Pricing Strategy" at NetMBA.com. Instead, the
company will use the quick spurts of cash to finance additional product production and
advertising.


c. Product Life Cycle Pricing

All products have a life span, called product life cycle. A product gradually
progresses through different stages in the cycle: introduction, growth, maturity and
decline stages. During the growth stage, when sales are booming, a small company
usually will keep prices higher.

For example, if the company's product is unique or of higher quality than
competitive products, customers will likely pay the higher price. A company that prices
its products high in the growth stage also may have a new technology that is in high
demand.

d. Competitive-Based Pricing

There are times when a small company may have to lower its price to meet the
prices of competitors. A competitive-based pricing strategy may be employed when there
is little difference between products in an industry. For example, when people purchase
paper plates or foam cups or a picnic, they often shop for the lowest price when there is
minimal product differentiation. Consequently, a small paper company may need to price
its products lower or lose potential sales.

In addition, there is a strategy, that is Temporary Discount Pricing.

Small companies also may use temporary discounts to increase sales. Temporary
discount pricing strategies include coupons, cents-off sales, seasonal price reductions and
even volume purchases. For example, a small clothing manufacturer may offer seasonal
price reductions after the holidays to reduce product inventory. A volume discount may
include a buy-two-get-one-free promotion. The company sells discount winter clothes in
the summer to free up inventory, prepares to market new models in the coming winter.


8. Explain “direct marketing" and its applicability with examples.

8.1. Direct Marketing concept:
Direct Marketing is the use of telephone, e-mail and other contact tools (not

people) to communicate and attract a response from individual customers or from
potential customers. Companies commonly use direct marketing in business to establish,
maintain and develop relationships with customers through a variety of means such as

letter attached with flyer or catalog, phone, fax; introduce and sell directly through the
media (television, radio and Internet), without intermediaries.

According to Direct Marketing Association, direct marketing is a marketing
communication system with the interaction of a number of media to create positive
exchange or transactions reaction (measurable) from customers with less limitation from
space and time. The most basic difference between direct marketing with traditional
marketing methods is the interaction and exchange of information between buyers and
sellers. Hence, enterprises now easily evaluate the effectiveness of their communications.
Direct marketing is expressed through many specific communication activities to
customers such as direct mail to introduce products and businesses, order mail with a list
of products which can be ordered for customer to choose. Targets that every marketing
program directly aims towards are the direct and positive responses of customer to the
program.

8.2. Benefits of direct marketing:

Direct Marketing brings about many benefits for both customers and businesses.
For customers, it save time for shopping, people know many new items to choose from,
it is quite consistent with new lifestyle; it overcome obstacles of space, people can avoid

travelling in unsafe conditions, or in lack of favorable choice but they can still get
favorite products. For businesses, direct marketing helps search for real orders for each
item, get more information about customers quickly, properly target to high
communication efficiency and low cost. Besides, it ensures the privacy and the ability of
"invisibility" against competitors (with traditional forms of marketing, competitors will
easily access media programs of businesses; while with direct marketing, competitors
seems to see nothing, because only target customers receive information). The biggest
advantage of direct marketing is the ability to measure the response of target customers;
thereby businesses can evaluate the effectiveness of each direct marketing program. They
can be sure about which programs are successful, which are not, thereby, they will have
appropriate policies to each group of customers and each product category, as well as

each market area. Finally, direct marketing helps most effectively use resources, it is
especially suitable for enterprises that are forced to shrink / lighten structure, small and
medium enterprises or enterprises that aim towards discrete market segments with
specific needs.

8.3. However, direct marketing has some drawbacks such as it requires initial investment
to construct databases, infrastructure; trained human resources with professional
qualifications to meet the requirements. A further problem is that direct marketing is
always well received by customers. In case, the market includes clients with daily buying
behavior at the market and they just believe in their own experience after consuming
products, direct marketing cannot be effective in the early stages, they need time to get
familiar.

8.4. Some forms of direct marketing (Direct Marketing):

- Catalog marketing: many companies sell through e-mail after they release catalog.

- Direct-Mail Marketing: include letters, small ads, movies, free phone number...


- Remotely marketing through telephone (Tele Marketing) is an important tool in
direct marketing and is being used more and more. Customers use the phone and
call the free number to place an order.

- Direct marketing on TV, radio, newspapers and magazines.

- Door-to-door leaflet marketing is a form of marketing mainly used in fast food
industries. This mode focuses entirely by region.

- Direct response television marketing has two types which are long form contract
and short form contracts. Long form uses a long period of time (30 minutes) to
describe the product in detail and form short use a short period of time (30 seconds
or 1 minute) to ask for customer feedback by calling the phone on the screen or on
the Website.

- Couponing is a form using the print media to get feedback from readers by
coupons cut out for a discount or gifts.

- Direct selling is a form that sells product face to face with customers through
salespeople.

8.5. Determinants of the success of direct marketing

In traditional marketing, it is often said about mixed marketing that includes 4P:
Product, Price, Place and Promotion. For direct marketing, 6 important factors include
Database, Offering, Creative, Media, Organizing, and Customer Service.

8.5.1. Database: Collect customer data according to the following groups of information:
personal information (name, age, sex, marital status, number of children, occupation,

position); address information (house number, street name, district, city, company
address, phone number, fax number, email address); financial information (income,
ability to pay, account number and prestige in paid work, the number of making orders
and the number of payments for goods, ...); operation information (buying habits, contact
with you, times of complaint, complaint cases, how complaint are handled...).

8.5.2. Offerings: is what you suggest potential customers. Offerings include details about
products or services, selling price, special incentives, benefits to consumers, ... In other
words, offerings are the main content of what you recommend and believe that it meets
customer’s needs, customer’s wants. For example, "the opportunity to visit 5 European
countries in 15 days and nights with only $ 2,000."

8.5.3. Creative: If saying offerings is the contents of what you suggest customers,
creative is the form of the offerings, it includes layout, images, words, printing
techniques.

8.5.4. Media: the media mainly used is direct mail, phone calls, and information
technology (email, internet ...).

8.5.5. Organizing: is the work to be done, order and progress so that everything goes
smoothly according to plan. To succeed in direct marketing, sending to the right people is

the most important factor, then the attractiveness of the offer, and then the creativity and
the time factor. All attractive and unique offers are meaningless if you sent to the wrong
address. All great marketing idea will be meaningless if they are not turned into action, so
organizing is essential to make direct marketing programs successful.

8.5.6. Customer Service and Call Center:

All efforts of an enterprise are to achieve the ultimate goal that customers place orders,

spend money on purchasing goods or services of the business. If customers call your
company but no one answers the phone, or he or she answers unenthusiastically, or goods
is not enough to deliver, or goods is deliver late, payment is complicated, then direct
marketing turns useless. All the things mentioned are the concept of "customer service".
Therefore, each direct marketing program is always associated with a phone number. We
can call it hotline, customer counseling line, support lines, etc. ... A large company such
as Life Insurance Company may have tens or hundreds of telemarketers, work 24/24 to
be ready to answer, call or remind. Such system is called "Call Center".

8.6. Direct marketing application

Since the 60s of last century, direct marketing has developed rapidly and become a
key marketing tool in many industrialized countries. It has been predicted that, in the
future, direct marketing will replace other forms of traditional marketing and become one
of the main marketing tool because it is the integration of 3 forms: advertising, sales
promotion and direct sales without intermediaries. The industries which are predicted to
continue spending more on direct marketing are transport, industrial services,
communications, customer service, direct sales, technological products, banking, retail ...
( For example, in Vietnam, direct marketing are mainly used in the fields of business
such as selling life insurance, credit, travel services, real estate introduction in the form of
direct telephone, messages on mobile phone, email to customers...). Typical direct
marketing activities most used in order are: Internet marketing, advertising and sales
through television, radio, postal marketing...

Currently, direct marketing has flourished in most countries. Direct Marketing
Association of Europe said that in 1998, European businesses spent no less than $ 2
billion on direct marketing and the growth of this activity is not less than 10% / year. In
the U.S., direct-mail marketing has brought about billions of dollars in sales. In 1991,
over 45% of Americans "bought something" through direct mail and as reported by the
Direct Marketing Association, direct marketing sales in the United States in 2006

increased 6% compared to 2005, reaching $ 6.5 billion. In 2007, revenue from direct
marketing increased 7.4%, reaching $ 7 billion, while average revenue from the
marketing, advertising in general is only about 3.9%. In Australia, over the last 5 years,
the economic growth rate is about 4% / year, but direct marketing growth rate is 16% /
year. The country has 12 million available e-mail addresses that are willing to connect
businesses. Malaysia is a country with 20 million people; in the past 5 years, the cost of
direct marketing has increased at a rate of 20% / year.

Direct Marketing is an inevitable development trend of marketing in the today’s
digital age and the development of information technology. (This was confirmed at a
workshop titled "Direct Marketing - The Future of Marketing" in Asia in 2006 in two
days with the participation of hundreds of large enterprises).

REFERENCES
1/. Philip Kotler (2013), Quản trị Marketing, Nhà xuất bản lao động xã hội, Ha Noi.
(Philip Kotler (2013), Marketing Management, Labour and Social Publishing House, Ha
Noi).
2/. Augmented Product Concept (Three levels of a product/Total product concept).
Available from : < [25 May
2014].
3/. Selling vs. Marketing concept. Available from :
< />[25 May 2014].


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