Bai tập marketing chiến lược marketing trực tiếp

I. INTRODUCTION

Nowadays, businesses often appreciate the Marketing Management because customer's
demands are not limited. They often like new things and persue personal passions.
Therefore, we can understand that Marketing is the combination of all these factors to
adapt to customer's changes. The most important is that every corporate should have
plans and schemes to perform this matter. It is not only necessary but also brings success
for corporates.

Therefore, to understand more about the activities of marketing, I chose some concepts of
marketing activities to analyze to supplement knowledge for myself

II. BODY

In order to perform activities of Marketing Management, the businesses should
understand exactly the concepts which relate to marketing activities. The following are
some concepts of the marketing management

1. Explain market segmentation with suitable examples.

Nowadays, the rapid development of the global economy has grown a fierce competition
among enterprises on the market. To survive, each business must have dynamic
approaches to the market and be willing to deal with threats as well as high competitive
pressures. Therefore, they have to implement their market-oriented production. In
particular, the establishment and completion of market segmentation policy to have a
suitable marketing strategy is an essential request and effective instrument to help an
enterprise get success. These are contents and reasons that I want to present this topic.

Definition of market segmentation

It is conceivable that Market segmentation is the process that companies use to divide

large heterogeneous markets into small markets and a business gives criteria to review
and collect people with the same criteria together and then put the suitable value for that

group. Or market segmentation is an activity in order to determine general characteristics
of a group of customers in the overall market. For example of the mobile phone market,
businesses now compete with each other fiercely and focus on main segments. Firstly, a
segment of cheap phones such as: Samsung, LG, Nokia, Philips ... for low and moderate
income people as employees, workers, unskilled workers, students... is to meet needs of
listening, calling and sending message. Secondly, a segment of expensive phones such as
Apple's iPhone, Samsung's Samsung Galaxy ... for relatively high income people and
managers is to meet needs of calling, sending message as well as Web access, email,
listening to music, watching movies, entertainment. And finally, a segment of superior
phones as Vertu of Nokia….is to meet the need of showing professional level of traders
and famous people.

Enterprises now have to seek their own suitable market segment because of following
reasons: Firstly, the market demand is very large, enterprises cannot attract and satisfy all
the needs of the market at once, so they have to analyze the needs of different customer
groups to choose and provide the products or services accordingly and increase their
competitive advantage. For example, for many reasons, the demand for products and
services such as telephones, cars, or trips, etc., is different. Secondly, today's customers
are increasingly differentiated by preferences, style, income, segment ... otherwise it
cannot create products to suit each customer group. Thirdly, each company has its own
strength and resources and has to face many competitors, so if they identify a suitable
market segment, build their own style and personal image consistent with their inherent
ability; they will succeed because it helps the business focus their efforts on the right
target market. Conversely, if they choose a wrong target market, such as choosing a
market is bigger than their ability, they will be not able to meet the demand better than
other competitors. Finally, market segment is not only a basis for formulating market
strategies of enterprise but also a basis for identification, market assessment. It helps

them monitor developments and forecast market changes in order to prepare for future
market needs

The methods used in market segment

There are many criteria that a business can choose or combine criteria to conduct market
segment, such as Geographics, Demographics, Psychographics and Behaviors.

• For Geographics: This method is to divide the market into different areas of the country
and regions with different climate, economy and culture. Since then, businesses will
realize the differences in morphology and demand in each region to select and make
decisions accordingly. For example, the need of using air conditioning in Nha Trang is
more than in Dalat because Dalat has cool climate all year.

• For Demographics: This method is to divide the market into groups based on variables
such as age, gender, family size, family life cycle, income, occupation, education,
religion, race, generation, and nationality… thence businesses will understand exactly
what customers need to have a business strategy effectively. Different ages, different
genders will have different needs for clothing, music, motorcycles, perfume, travel, for
example P/S Co has separate segments of products for children and the elderly; the dairy
market also has segments for children such as Dutch Lady 123 and 456, Grow... for the
elderly such as Ensure, Allen, etc.,

• For Psychographics: This segment is divided into groups based on social class, lifestyle
or personality. For example, each social class has different consumer psychology such as
people with different lifestyles and personalities will have different care of products such
as cars, fashion, music, etc.,

• For Behaviors: Divide market segmentation of consumers into homogeneous groups of
characteristics as: reasons for shopping, search interests, loyalty, quantity and rate of use,

consumption power... marketers think that research on consumer behaviors is the best
starting point to form market segments. For instance, the toothpaste products of Colgate
and Sensodyne compete in the same market segment of sensitive teeth. While some other
toothpastes aims to make white teeth, no cavities.

Some examples of market segment in Vietnam.

For the shampoo market, based on the diverse needs of consumers in Vietnam, shampoo
companies have fierce competition in the highly fragmented market of this product
according to the criteria as mentioned above. For instance, segments by product benefits
such as anti-dandruff shampoo, glossy hair, and anti-split include Unilever's Sunsilk and
Clear, P & G’s Head & Shoulders; product of fragrance for women as ICP Enchanteur.
Products aim at low-income families and mainly in rural areas such as Unilever's
Lifebuoy and Dove. In particular, previous shampoo products are mostly aimed at
women. However, recently the market has appeared the product line for men as Unza's
Romano, ICP’s X-men, P & G’s Head & Shoulders and Unilever's Clear Men, etc.

In short, Market segmentation is an activity to help enterprises identify the best market
and choose the right target market. If the research and market segmentation of enterprises
are good, they will have a stronger position than competitors, set out the right marketing
strategy. At the same time, marketing activities will be more effective in every market
segment that has been studied and will be gradually the master of the market.

2. "PLC as a tool for marketing strategy" justify.

Product Life Cycle (PLC) is an important concept of marketing. It helps marketing
managers to better understand the movement and transformation of products on the
market, the competitive dynamics of competitors and approaches necessary for the
business of the various stages of the product life cycle.

There are many concepts of PLC. However PLC is simply the amount of time that
products exist on the market. In particular, periods of trading history of a product are
described differently. Thus, businesses could better make plan for their marketing plan.

Basically, product or service after it was launched to the market will also change over
time and will usually go through four distinct stages. Firstly, Introduction stage is a
period of slow sales growth as the product is introduced in the market. Profits are

nonexistent in this stage because of the heavy expenses incurred with product
introduction. At this stage, sales are low and costs are high in the introduction stage, thus,
no profits are made. Secondly, Growth Stage is a period of rapid market acceptance and
substantial profit improvement. Thirdly, Maturity stage is a period of stable sales index,
slowdown in sales growth. In this stage, products have established its position and market
share in the market. Finally, Decline stage is the period when sales show a downward
drift and profits erode due to competitive pressures, changes in market demand.

However, each different product has different life cycle, such as: short time and long
time, consumption and profits at each stage. Therefore, businesses have different
marketing strategies of production, supply, and finance ... in each stage of each product
life cycle. For example, Toyota Lifecycle is dependent on factors such as vehicle type,
market demand changes, provisions of circulation, safety, and environment ... the life
cycle of car products is usually longer than other consumption industries because of great
value of products, high production costs and long innovation research time.

Marketing strategies under the product life cycle.

• Introduction stage

In this stage, products begin newly to enter the market and companies take heavy costs to
introduce the product to the market and promotion costs very much with a little profit

coming from product sale. However, an enterprise has suitable price strategies such as:
rapid skimming strategy, low skimming strategy, rapid penetration strategy and low
penetration strategy depending on the market. Specifically, rapid penetration strategy is
used to launch new product at low price but with high promotion and used when the
market is large; market is not aware of products; customers are price sensitive and
product competition is high… rapid skimming strategy is used to recover capitals when
the market has little competitors, and used when customers are aware of products and
ready to pay a high price for products (due to brand favorability or advertising). For
example, iPad 2 of Apple was launched into the Vietnam market with the price of VND

13-14 million (in 2011) and so far, its price is only VND 8-9 million and has been
upgraded to iPad 3, iPad 3 4, etc.

• Growth Stage

Products meet demands of the market and sales increase rapidly. In this stage, enterprises
may deploy marketing strategies to lengthen the development of products in the market,
such as: improve product quality, add new features and models. Strategies include new
market segment, expansion of existing distribution channel and participation in new
distribution channel; an increase of advertising from product awareness to product
properties and discount strategy… For example, in the Vietnam market, AT car lines are
in the development stage and will replace traditionally MT car lines.

• Maturity Stage

In this stage, the growth rate slows down and is likely to stay longer than the previous
stages; the most of the marketing management deals with mature products. For example,
market modification (entering new market segments, trying to get competitors’
customers) and product modification, etc.

In this period, companies should not focus on advertising because of no profit but they
should try to convince customers to use products in different ways and sell as many
products as possible. Concurrently, companies should focus on investment, research and
development of innovative products to maintain the efficient business operations because
current products will become obsolete, sales and market share will decline due to
competing products, resulting in profits of enterprises increasingly reduced. Especially,
do not let products fall into the end-stage (decline stage) because then products will die.
For example, the product line of Apple’s iPhone always improves when it entered into
prolific period as the iPhone 3, 3s, iPhone 4, 4s. New products are currently in vogue is
iPhone 5 and Apple are preparing to launch iPhone 6 to the market (when the iPhone 5 is
on the stage of fullness).

• Decline Stage

The main characteristic of this stage is lower sales volume and profit erosion because of
technical advances which lead to better substitutes, change in customer taste with time
and increase in competition. At that time, the company should have a strategy to quickly
remove products (because the more they prolong the more they lose). For example,
TRIBICO carbonated soft drink products of Tan Hiep Phat had a development and
fullness stage from 2001-2005 but later it transferred to decline stage because of the
competition of Coca-Cola and Pepsi. So far it has disappeared from the Vietnam market.

In short, a product life cycle could be divided into several stages characterized by the
revenue from products. It can be applied to a brand or a product group and product life
cycle is a tool that helps marketing managers to set up marketing strategies so as to
address the challenges that their products may encounter. It is also useful for monitoring
sales results over time and comparing them to the life cycle of similar products.

3. Explain process of selecting the final price.

As we all know, price is a key factor and one of four important components of the
strategy and the success of marketing activities because it directly affects sales and
profits of a Company. For customers, price plays a decisive role in the choice and
decision to buy products. For a company, price plays a decisive role in the competition of
the market. Therefore, selecting and determining the final price of a business must be
commensurate with the value received by customers and their competitiveness.

Definition of price: Price is a currency that customers need to spend to get a right product
quality, at a right time, in a right place.

The importance of price: Firstly, in the Marketing mix, Price is the one, which creates
sales revenue - all the others (Products, Places, and Promotions) are costs. Secondly,
price causes more immediate reaction than other components for customers as well as
competitors. Thirdly, price directly affects sales and profitability of a business. Finally,

because prices have significant impact on consumer spending, it is important in their
selection and purchase.

However, the pricing decisions affected and influenced by many factors inside and
outside of the company, at the same time, its formation and movement is complex.
Giving a rational pricing strategy requires solving many integrated and synchronous
problems. Specifically, internal factors include pricing decisions such as marketing
objectives, marketing mix strategy; product life cycle, cost and valuation organization...
and external factors include market, demand, competition, government policies,
economic conditions, politics, society, etc.

Businesses choose a final price

The choice of final price is to help marketer narrow price and then make the best decision
of choice. However, there is no fixed formula for the pricing because each business line

has its own characteristics, or depends on the product life cycle to determine the price.
Typically, when choosing the final price, firms often have to go through the process of
determining the basic price such as identify objective, product demand, cost estimates,
price and product analysis of competitors, choose the valuation methods and finally
decide the price of the company.

When deciding on the final price, companies often consider factor: Firstly, psychological
pricing of customer acceptance because prices are often associated with quality and
product prestige. For instance, Vietnam people often appreciate product lines of Apple
brand such as iPhone, iPad, and are willing to pay high prices to own it. Or businesses
often use cheap psychological pricing of customer when fix product price in odd numbers
like $ 999 instead of $ 1,000. Secondly, the company's pricing policy. Specifically,
pricing policy of the company must ensure that pricing decisions are coordinated with the
company's decision on target market, image and other marketing mix factors. E.g.
product prices for high income market segments in luxury places must be higher than
others and vice versa. For example, in Ba Ria-Vung Tau Vietnam, the price of a

HENEIKEN beer in Pacific Hotel (2 stars) is VND 25,000, while at Ho Tram Strip (5
stars) is VND 70,000 (in 2013). Thirdly, Impact of price on other parties—distributors,
sales force, competitors, suppliers, government policies. E.g. responses of distributors,
attitude in favor of sales force, responsive of competitors, suppliers, and government
regulations of issues related to price management. For example, EVN's electricity price in
Vietnam is very much dependent on the policy of the Vietnamese government in order to
stabilize the macro-economy of the country. Finally, when fixing a price, the company
often considers to the reputation of its brand and the objective of the ad. E.g. when a
product is advertised widely and many consumers are aware of products, they are willing
to pay higher prices for products with the same functionality but are not well- known.

In summary, the choice of a final price is an art because it does not merely offer a price
for the product, but it makes a difference as well as creates a position of businesses on the

market. Building a right price is an important condition to ensure businesses could
penetrate and occupy the market, helping enterprises achieve business efficiency.

4. Explain the process of the Integrated Marketing Communication.

As we know, under the fierce competition, most of the mass market has fragmented into
many small markets, and each market requires a particular approach. At the same time,
with a variety of new communication tools, a rich understanding and broader view of the
consumer to the market has created pressure for managers to build awareness of products
among target customers in order to make them interested, confident and willing to spend
money to buy products. To resolve this challenge, a process of Integrated Strategic
Marketing Communication launched to help businesses fully understand the different
ways of communication to influence consumers’ behavior.

What is Integrated Marketing Communication? According to American Association of Advertising
Agencies (also 4A's), Integrated Marketing Communication (IMC) is a concept of
marketing communications planning. A concept of marketing communications planning recognizes
the added value of a comprehensive plan that evaluates the strategic roles of a variety of

communication disciplines – generel advertising, direct responce, sales promotion, public
relations – and combines these disciplines to provide clarity, consistency, and maximum
communication impact.

Features of IMC: Firstly, all IMC efforts should be target consumer focused. Secondly,
forms of IMC are human and/ or media used. Finally, IMC's objectives are to use many
different media to increase awareness about the products or services of a company and
inform people about the features and benefits, as well as promote consumers.

Roles of IMC: Firstly, IMC is a tool to perform functions of communication and meet
customer needs. Secondly, it coordinates with other tools in the marketing-mix to achieve

marketing objectives. Thirdly, it is a competitive tool in business: Increase the value of
products, information, create product awareness, enhance brand reputation and maintain
confidence, good attitude of the public about the company.

The basic tools are combined in IMC, including:

• Advertising is a paid, non-personal communication about an organization and its
products transmitted to a target audience through mass media.

• Sales promotion is activities of stimulating shopping needs by bringing additional
benefits to customers in a period.

• Direct marketing is an interactive system of marketing, which uses one or more
advertising media to affect a measurable response and/or transaction at any location.

• Public relations (PR) is a form of communication in order to create a friendly attitude
towards business and its products that usually do not specify a specific sales message.

• Personal selling is a form of product presentation by staff of a business done before
customers, be it face to face or over the phone.

Each of IMC tool has different roles, made with different forms and each tool has its
advantages and disadvantages.

For the effective management of IMC, businesses need to understand roles and objectives
of the IMC as well as positive points, limitations and budget allocation of marketing tools
to use accordingly and effectively conditions as well as target customers of businesses.

As we all know, the ultimate goal of marketing communications is to influence
consumers. Here are some typical steps leading to the purchase:

• Building customer awareness about products. For example, recently, commercials of
OTIV product have appeared often on TV; this product is imported from the U.S, but
little known in Vietnam.

• Providing information about features of the product or service to customers. For
example, advertising provides information of products "OTIV is a functional food. Its
uses are to help anti-aging nerve cells and preventing cerebral vascular accident”

• Creating a positive impression to customers from benefits of the product. For example,
“OTIV Product helps reduce stress and the risk of stroke, bring more positive life."

• Achieving favorable position in the customer's mind. For example, "The product is very
easy to use, convenient at anytime, anywhere for customers."

• Creating an attention to purchase. If done well, it will create an attention and lead to the
purchase decision of customers. "I have amnesia, headache due to ischemia and I will buy
the product for trial ".

• Carry out the transactions to make potential customers become real and familiar
customers. For example, "Our products are very effective, so I decided to use this product
in a long term”.

Such, an enterprises using IMC must have a specific plan and clear commitment to
comply with what they set up, the message will be used consistently and could bring the
desired results for their campaign.

For example, Pepsi Company has been very successful in linking their online and offline
marketing efforts. In 2001, Pepsi and Yahoo! after combining the sales campaign was

increased 05% to the cost of one fifth compared with the campaigns of the previous
message. Pepsi splashed Yahoo's logo on 1.5 billion cans while Yahoo put up a co-
branded website PepsiStuff.com that allowed consumers to collect bottle-cap points.
(Marketing communication design & management –MBA Nguyen Van Dung-2010 &
p.67)

In short, Modern marketing not only calls for more than just developing a good product,
pricing it attractively, and making it available to target customers but Companies must
also communicate with their customers and there should be controlled direction to those
communications.

5. Explain "Direct marketing" and its applicability with example.

Nowadays, the development of information technology systems and communications has
opened up new horizons for Marketing, in which direct marketing is growing. This
method helps businesses use many ways to communicate directly with customers. Since
then, businesses measure customer’s responses to timely adjust their activities in order to
satisfy the needs of target customers.

Direct marketing is an interactive system of marketing, which uses one or more direct
advertising media (direct mail, catalogs, telemarketing, and e-purchasing, etc.) to affect a
measurable response and/or transaction at any location.

Today, many businesses use direct marketing to build long-term relationships with
customers. For example, the supermarket chain Co.opmart set up its clientele, VIP clients
and often send birthday gifts to customers.

Outstanding features of Direct marketing is a direct interaction with customers and
emphasis on the positive feedback so that can track and measure customer.

On the form of direct marketing: because each product will cater to a specific target
customer, different businesses will choose an appropriate form of direct marketing to

influence their target customers. There are some common forms of Direct marketing
today. That is:

• Direct Mail is a form of direct mail by post to the customer in order to offer, inform. For
example, THIBIDI Electrical Equipment Joint Stock Company gives offer of
transformers, power cables, or Bao Viet Company sends mail of product introduction,
etc.

• Email marketing, SMS marketing is the form of letter sent via email or SMS to the
customer. For example, a real estate company introduced the product of houses, or
master's programs, services of selling nice SIM, etc.

• Catalog marketing is a form that a company sent catalogs with a full line of products to
their customers. This form is usually found in Nguyen Kim Supermarket Center, KFC
and LOTTERIA fast food brand.

• Telemarketing is a form of direct phone used to attract potential customers or conduct
commercial transactions such as direct selling, receiving orders or customer care
activities. For example, bookstores call for the introduction of books, publications, new
magazines, or HYUNDAI, TOYOTA Motor Corporation calls for customer care service
to convince customers buy their products.

• Door to Door Leaflet Marketing is products and services brought to consumers in
person such as daily food, lunch serving at home, at the office or brochures introducing
new products.

• Couponing is the form of media used to get feedback from readers with cutting out

coupons for a discount in exchange for money or gifts. For example, products of the
Khan Quang Do, Nhi Dong newspaper or Co.opmart.

• Direct selling is the marketing of products to customers through face-to-face sales by
salespeople, exposure and direct sales to customers. For example, trade fairs, supermarket
system, shops

Applications of Direct Marketing:

In recent years, direct marketing has flourished and become a key marketing tool because
it is the integration of all 3 forms: Advertising, sales promotion and direct sales. Direct
marketing is currently used by many businessmen in their business operations.

Compared to other marketing tools, direct marketing targeted directly to customers in the
best way to impress the most attentive care. With Direct marketing, the communicative
interaction between businesses and customers is heightened maximum, so enterprises are
fairly easy to grasp customer needs. On the other hand, Direct marketing also easily
combine the power of promotion mix, helping save marketing budget and easily measure
the effectiveness

Direct marketing provides many benefits for both customers and businesses. For
customers, it provides much information about issues that customers concern, saves time
of purchase, reduces travel costs, and overcomes the spatial obstacles but still selects the
best product. For businesses, Direct marketing helps search for the real orders of each
item, gets more information about a customer as quickly as possible and aims at targets
with high media efficiency and low cost. Besides, it could ensure the privacy and
"invisible" capability before competitors.

Advantages of Direct marketing are the measurable ability to the response of target
customers, thereby helping enterprises evaluate the effectiveness of each direct marketing

program in order to get appropriate policies to apply for each customer group, each
product category as well as each market area. At the same time, Direct marketing helps
effectively use most of existing resources of enterprises.

However, Direct marketing has some disadvantages. Firstly, enterprises must initially
invest for the construction of databases, physical conditions and human resources.
Secondly, not in any conditions, Direct marketing is also customers received such as
SMS, email, internet, phone, etc., that could cause confusion, inconvenience and loss of
business image. For example, a milk product for old people is sent by promotional emails

to a student, a shower cream product for women is sent to boys, or an SMS advertising
messages is sent right to your lunch break, etc. Thirdly, housewives are often based on
personal experiences to buy products after product consumption. Therefore, Direct
marketing cannot effectively promote all.

In Vietnam, the economic growth is relatively stable, the Internet is becoming
increasingly familiar to people, e-commerce develops quickly and the accessibility and
shopping to new forms of customer increasingly grow, so Direct marketing have been
developing favorably and many companies have successfully applied this form of
marketing. For example, Savills Vietnam Company is the largest real estate consulting
firm in Vietnam (directly under Savills UK). Savills Company has been quite successful
when they established a telemarketing team to collect data base of target customers
effectively, or Vinamilk Company in Vietnam has implemented direct marketing through
distribution channels such as: agents and Supermarkets. Customer care and feedback of
Vinamilk is done through a separate Web page (www.vinamilk.com.vn) and here,
customers may give feedback about the product and will receive a response from the
company, or many other enterprises successfully applied this form of marketing such as:
Prudential, AIA, Bao Viet Insurance Company; brokerage service companies on training,
study abroad such as RMIT, VAS; cosmetics companies such as L'Ovite, Avon, and
Oriflamme, etc.

In short, the development of rich and diversified business forms, changes in customer
behavior have created new trends in the application of enterprise’s marketing. In the
context of information technology and communication channels develop strongly and the
traditional forms of marketing show costly and less effective, Direct marketing has
become remarkable. With the goal is to establish, maintain and develop relationships
directly with customers through mass media such as direct mail or catalogs, phone,
referrals and direct selling, etc., Direct marketing has brought many successes to
businesses. Therefore, Direct marketing is a trend used by enterprises in Vietnam and in
the world.

III. CONCLUSION
Marketing Management are essential activities for every corporates. It is one of the
business strategies and it decides the success or failure of enterprises. Thus, the
companies must respect this activity, and the leaders should exactly understand the
concepts of marketing to apply to their business activities.

References
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-Marketing communication design & management –MBA Nguyen Van Dung-2010