Chuyên đề sản phẩm – dịch vụ trong marketing

Chuyên đề Sản phẩm – dịch vụ trong Marketing

CONTENT

1. Explain the following:
(a) Production concept:

Manufacturing philosophy holds that consumers will favor products which
are available for use and widely distributed at low cost. Therefore, the marketing
management should focus on boosting manufacturing and distributing products.

Points about the teenage consumer focused primarily on the availability and
low price of the product often explained by two main reasons. First, when demand
for a product exceeds the supply, it is commonly in developing countries. Buyers
will pay much attention to getting the product to consumers rather than focus on the
attributes economics of product quality. Therefore, manufacturers will focus on
increasing production scale to increase the desired sales volume and profitability.
Second is the high production costs and the need to reduce down, businesses
seeking to increase production to achieve economies of scale and thereby expand
the market.

Henry Ford was one of the pioneers in producing marketing concepts. Since
1900, he has focused its efforts on perfecting the mass production of automobiles in
order to reach lower costs, so that more Americans can afford them. This
orientation is also a key strategy of many Japanese companies.

However, this philosophy will be very difficult to implement if all provinces
encounter situations that demand greater than supply capability, and low prices as
well as the ease of shopping (due to widely distributed. There are no longer key
factors that consumers need to consider when buying decision.

(b) Product line:
A group of products is closely related because they perform a similar

function, sell the same customer groups through the same channel or create a
specific price bracket . Depending on market conditions, competition and the ability
of businesses makes decisions about product lines. For example, the decision to

1

narrow product line when the company found that some types of products does not
guarantee satisfying customer needs , and it does not bring profitable for the
business. Or expand the business product line in order to increase product selection
to satisfy the needs of different customer groups . Or modernized product line by
eliminating the obsolete product categories , and introduce innovative new
products . It can be seen clearly through the products of electronic equipment
manufacturers such as product line Iphone ,Ipad Apple or Samsung 's Galaxy lineup
running Samsung's Android operating system with many products produced from
secondary to higher level .

(c) Augmented product:

Products of every business there are often differences in physical factors or
psychological factors (depending on the characteristics of the industry , the views
and the businesses that they focus on these factors in ways different ways) . It can
be considered in three product levels: core product , product specific , incremental
product .

To increase customer awareness of product quality and customer satisfaction
of products , businesses often provide customers with the services and additional
benefits such as warranty , installation , information , counseling , delivery ,

purchase credit ... They are considered as a component of the product contributes to
the finished product . Many companies produce cars or electronics ... use this extra
element to increase competitiveness. Or to ensure the growth and survival of
business telecommunications world is now focused on improving and diversifying
value added as video calls, music , Mobile TV & Video , Game , Network social
( social mobile networking) , search ( mobile search ) , mobile blogs , chat , email ,
mobile banking , mobile tickets , mobile advertising ...

(d) Social marketing concept:

Social marketing concept holds that the task now is to determine the needs,
wants and interests of target markets and delivering satisfaction to expect a result
and more efficient rivals competition , in a way trying to preserve or enhance the

2

welfare of consumers and society. Previously businesses put their marketing
decisions based on the fundamental calculations of profit before his eyes . Then
they realize the importance of the long term to satisfy the wishes of our customers
and this has led to marketingphilosophy. Today they started putting factor in social
benefits to the business decision making of enterprises.

Social marketing concept arises from the suspicion that pure marketing
philosophy has established a business philosophy that would be appropriate or not?
during the times of environmental pollution , resource depletion , overpopulation
and lack of social service work . In the realization, serve and satisfy the same
requirements, whether business has always been based on the long-term benefits of
good consumer and society or not ? . Purely a marketing philosophy can dismiss the
conflict between desire immediate and long-term happiness of the consumer.

Social marketing concept requires marketers to balance three objectives
when designing the marketing policy: customer satisfaction, contribute to the
achievement of corporate profits and ensure social welfare. Thus, marketing
activities will be significantly better with the longer-term benefits.

2. Explain various concepts of marketing with suitable examples.
Marketing occurs everywhere; it touches us day after day. However, it is

understood very differently by many fields and sometimes, there are
misconceptions in business. Many people believe that marketing is advertising, the
sale or market research, since these activities spread out and deal with people
regularly. This thinking only describes a small part rather than the entire marketing
activities.

Marketing covers many areas. Thus, it is set by many sides; there are various
different definitions of marketing. We only review the basic definitions. First of all,
we understand marketing as a social process management, in which the individual
or group will receive what they need through creating and exchanging products and
value with others. To explain, understand marketing, we will look at some
important terms such as need, want, demand, product, customer value, satisfaction,
exchange, transaction, market.

3

Marketing is one of the most fascinating topics in the business world for six
decades and there are many different ways to define marketing. The new marketing
concepts have always appeared as a reaction before changing business environment.

When marketing appears for a long times, people have conceived
consumption activities and sales. This condition is only true in underdeveloped

economy. Moreover, businesses are only interested in the production of many
products and profitable revenue through the sale of products. Typically this is the
traditional view:

- Definition of John H. Crihton (Australia): “Marketing is the process of
providing the right product, correct channel or channels, exact time and accurate
place”.

- Definition of Wolfgang J. Koschnik (Dictionary of marketing): “Marketing
is the conduct of business activities directly related to the flow of goods and
services from producers to consumers”.

Modern Marketing directly concern to customers and satisfy customer needs.
Today, customers have more power than ever before. They can control where, when
and how the products or services have sold. It means that they will have more
choices, and absolutely, they rarely loyal to a certain brand. The some modern
views of marketing experts around the world such as:

- According to I. Ansoff, a marketing researcher of the United Nations:
“Marketing is entirely the science operating business activities from production to
consumption. Actually, it based on market fluctuations or in other words, it takes
market to orient.”

- Peter Drucker's definition: “The purpose of marketing is not necessary to
push consumption. Its goal is to recognize and understand the customers carefully
in order to goods or services will satisfy the likings of customers and they have
consumed themselves”.

- Definition of William M. Pride: “Marketing is the process of creation,
distribution, pricing, promote the product, the service, the creative idea to satisfy the

exchange relations in a dynamic environment”.

4

- Definition of Philip Kotler: “Marketing is a social process in which
individuals or groups can get what they need through the creation and exchange free
products and services with value to others”.

- Definition of The American Marketing Association-AMA: “Marketing is
the process of operation and management of setting the price, marketing and
distribution of ideas, goods and services to create the transaction to satisfy the
objectives of individuals and organizations”.

- Definition of The Japan Marketing Association-JMA: “Marketing is an
integrated activity through which businesses or other organizations - have a
strategic vision and customer insights will create market their case by way of fair
competition”.

- Definition of England Institute of Marketing (The Chartered Institute of
Marketing-CIM): “Marketing organizes functionally and entirely manages business
and manufacturing activities from discovering and purchasing power buying into
essential needs about specific commodities to produce and goods to the final
consumer in order to ensure business profits expected”.

- The definition of the Malaysia Management Institute: “marketing is
connecting art, applying the necessary effort to discover, create, satisfy and raise
customer needs to make a profit”.

Thus, marketing formed two different views in the process of developing:
traditions and modern marketing. The difference between these two perspectives is

presented as follows:

Criteria Traditional Marketing Modern Marketing
The starting point Manufacturer market
The interest subject product Customer demand
Means to achieve Sell product and Marketing Synthesis General

goal promotion efforts
The final goal Profit through increased Profit through satisfying the needs

sales amount of consumers and social benefits

In summary, it can be seen that the marketing industry has gone through
many stages with countless new concepts. Clearly, the dynamics of marketing and

5

persistent determination of marketers in the development of new ways to
understand the changes of the market, customers, competitors and partners has
created many tools and new knowledge.

3. Explain market segmentation with suitable examples.

Market segmentation divides the market to large-scale, heterogeneous
according to certain criteria into separate market segments. In each market
segment, there has the uniformity of characteristics, needs, tastes, behavior.

Market segmentation of a product makes the market place becoming
homogeneous pieces. Moreover, it helps businesses to identify customer needs in
each segment through research, analysis and market segment. Since then, the

business can choose one or several market segments suitable with their abilities to
do targeted market. Basing on Market segmentation, it helps businesses focus on
resources to formulate and carry out activities of marketing mix and match in order
to exploit the maximum serving the needs of selected market segments. To achieve
maximum benefit, Market segmentation must have five characteristics following:

- Identifiability: The size, purchasing power and the characteristics of the
market segments are measured. For example, measuring the scale of teens smoking
segmentation is not easy because smokers mainly oppose their parents and not
willing to cooperate with the Marketers who research their smoking behaviors.

- Substantiability: The market segment must be large enough and it creates
profitable worthy enough to serve. For example, an automobile manufacturer did
not give much thought to segment the lefties, because the number is not large
enough to form a separate segment.

- Accessibility: The market segment has to reach and serve effectively.
Perfume company supposed users are the single women who often come into the
bar at night and. These women are very difficult to access unless they live and work
in certain places and in contact with certain media.

- Differentiability: The market segment varies in concept and responds to
different marketing-mix elements and various marketing programs. If the woman

6

has no family and family reacts similar to table salt and fur coats. As the results,
they cannot belong to a separate market segment.

- Stability and actionability: The single market has to stabilize and Marketer

can build effective programs to attract and serve these markets. For example, a
small airline discovered seven market segments, but their payroll is too small to
build a separate marketing program for each market segment. So serve this market
segment seven is not feasible.

Depending on the characteristics of the market, the product's characteristics,
the ability of the enterprise can choose the following criteria for market
segmentation. For example, can summarize the target group segmentation of
consumption markets in Table 3.1

Table 3.1: The main criteria to segment the consumption market

Criteria The typical division
geography North, The Middle , South, mountainous,

Region

midland, and plains

Urban scale, province, city (people) <300,000; 300,000-1 million; ≥ 1 million

Density Urban areas, suburbs and rural areas.

Climates Temperate, tropical, tropical welding.

Population

Ages < 6, 6-11, 12-19, 20-34, 35-49, 50-64, > 65

Sex Male, Female

Family size 1-2, 3-4, ≥ 5 people

Income (USD / month) <10,000; 10,000-30,000…; ≥ 100,000

Nationality USA, France, Japan, Australia.

psychology

social classes Lower, middle, upper

lifestyle Dependent, accepted, successful.

personality Easy drag, imitate, authoritarian, ambitious.

Conduct

shopping circumstances Regularly on the special vacations

Using levels Less, moderate, and more

Attitude to commodity Passionate, positive, hostile, negative, hate

The production material market can be divided in many segments of the

variables used to segment the consumer market, such as geographical variations,

benefits and search usage levels. However, there are also more new varieties.

7

Bonoma and Shapiro have proposed production material market according to
the variables shown in Table 3.2. This table lists the main questions that people
working on production materials market should set out to determine whether to
serve market segments and customers. The demographic variables are the most
important, followed by the extraction variables, and finally the personal
characteristics of the buyer. For example, firstly, rubber Tire Company must decide
if you want to serve the public sector, and note the following differences: The
automobile manufacturers have different requirements, the vendor luxury cars
luxury wanted tires than the standard car maker. And the tires that aircraft
manufacturers need to meet higher safety standards than the tires that the production
of agricultural tractors need.

Table 3.2. The main criteria for industrial market segments

Jobs Demographics
Scale enterprises Should focus on public sector?
Location should focus on the enterprise scale like?
should focus on the geographic area ?
Technology
User status The extraction processing
Client capabilities should focus on the client's technology ?
user should not focus on heavy users, moderate, low, or who do not
Organize supply
use ?
should focus on the client needs more or less services ?

Mode of supply
should focus on providing enterprise organizations focus or

function decentralized ?
Power structure should focus on enterprises dominated by technical , financial
Nature of existing
dominates , etc. ..
should focus on the enterprise has a close relationship or pursue the

relationships most desirable business?
General should focus on enterprises prefer to hire purchase, contract

procurement policy services , purchasing or procurement system ?

Shopping criteria Shopping criteria should focus on the enterprise search quality ,
service or price?

8

Emergency These situational factors
Application There should or should not focus on enterprises that require goods
Scale orders
Buyer and or services quickly and unexpectedly
can it be particularly focused on the application of certain of its

products or in all applications?
can they be so focused on large orders or small ?

Personal Characteristics
Seller There should focus on the people and businesses have similar

are similar values as we do not?
Attitudes to Risk It should focus on the customer accepting the risk or not risk

aversion?
Loyalty Should we focus on the business proved to be very loyal to their
suppliers or not?

Briefly, Market segmentation will help businesses finding the "gap" of
markets and utilizing efficiently competitive advantages. The combination of
satisfying customer demand increasingly higher allocation of resources to more
effectively create competitive advantage and greater profitability.

4. Explain the process of integrated Marketing communication.
There are typically six steps in the IMC planning process. Each are important

in their own right and can be applied to practically any business or organization, no
matter the size or industry. While your plan might utilize each marketing
communications function differently, the overall idea remains the same.

Below are the major steps to keep in mind when developing your IMC
strategy.
Step 1: Know your target audience

9

As a general rule, there is no “general audience”. You always want to
communicate with a specific audience to make the most effective use of your
resources.

Segmenting specific audiences into groups based on characteristics will help
you identify who are most likely to purchase or utilize your products and services.
Step 2: Develop a situation analysis

Commonly referred to as a SWOT Analysis, this is basically a structured
method of evaluating the internal strengths and weaknesses, and
external opportunities and threats that can impact your brand.

A situation analysis can provide much insight into both internal and
external conditions that can lead to a more effective marketing communications
strategy.
Step 3: Determining marketing communication objectives

In this step, you basically want to document what you want to accomplish
with your IMC strategy. Objectives should be measurable if you truly want to map
your campaign’s effectiveness at the end of your plan’s term.
Step 4: Determining your budget

Having a realistic idea on what you have to work with is important as it will
shape the tactics you develop in the next step. Once you determine your overall
budget, you will want to come back to this after completing step five to further
refine your budget allocations.
Step 5: Strategies and tactics

10

Looking back at the objectives you created in step three, you will want to
develop strategies which are ideas on how you will accomplish those objectives.
Tactics are specific actions on how you plan to execute a strategy.

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

Direct Marketing is an interactive marketing system using one or more
advertising media to answer directly to create responsive measure or a transaction at

any location. Direct Marketing allows sales and learns about a particular client
entered into the database in order to establish regular relations with clients and early
enough.

With these characteristics to identify and directly reach target customers,
Direct Marketing has more advantages compared to traditional marketing, namely:

Direct Marketing offers many benefits to consumers: Convenient, Easy to
use, Private, Access to a wealth of information, Immediate, Interactive. Consumers
who order via e-mail to that e-mail purchase is fun, convenient, and not be harassed
(harassment). This approach saves time. They can choose at home by catalogs of
goods and the new way of life. They can receive gifts without leaving home. The
industrial customers also have many advantages. They may be more understanding
of products and services without spending time with salespeople.

Direct Marketing has provided benefits to suppliers: Building relationships,
targeting of small groups or Individuals with customized offers in a personalized
fashion, Furniture buyers to access could not be reached via other channels, low-
cost, effective alternative for Reaching specific marketing ... Direct Marketing
builds ongoing relationships with each client. This approach can choose many
potential customers better. Actually, Direct Marketing can test how it changes in
advertising, title, price, benefits. Selling messages personalized merchandise and
customers. Direct Marketing can come up with potential customers at the right time
and becomes more receptive. Competitors do not see the strategy of the company
dedicated to our customers.

11

In addition, the Direct Marketing also has the following objectives: Impact
on awareness and purchase intention of customers then. Create opportunities for

salespeople. Send messages and images to emphasize the preferred company.
Information and guide customers prepares for later purchase.

Direct Marketing channel is used as intermediate complement marketing
activities of the business as well as interact directly aimed at maintaining and
enhancing relationships with customers. Here introduce the Direct Marketing forms
an overview and examples as follows:

Direct_Mail Marketing : Through the letter, fax, mail, e-mail, voice mail, ...
business communication and implementation of marketing activities such as
mailing pieces together with products, coupons, small advertisements, movies,
number free Phone ... This form of marketing is extremely inexpensive, and it can
send a message that thousands of recipients are not cost efficient significantly,
through to define the direction of the object and the measure the reaction rate of the
receiver simply and clearly. Many methods used, such as the mail regularly send
product introduction (newsletter) or email widespread dispersal of information
related to products and services of the business. Or They introduce products online (
Website marketing ), product information (images, quality, features, price, ...) are
displayed 24 hours, 365 days, ready to serve consumers, customers can order
products, services and payments available online. For example, in the U.S.
Direct_Mail Marketing is a huge business, sales have reached tens of billions of
dollars each year.

Catalog Marketing : Many companies use sales forms by via e-mail after
they released the catalog. The industry field application of this method tend to
consumer for electronics, clothing, housewares, ... A number of companies have
created their own characteristics that level by additional material or information
about yourself in the catalog , send samples attached, equipped hotline (hotline) to
answer specific questions, gifts, discounts, ... They guarantee free phone number 24
hours a day, payment by credit card and shipping soon. DELL is a good example

for the success of the brand known for combining the effects of catalogs and the
internet to market dominance individuals. It is recognized as a finance company to

12

fully exploit the effects of internet and direct sales model. Particularly, they use the
catalog as a tool to maintain effective relationships and customer loyalty.

Telephone marketing: an essential tool of direct marketing is being used
increasingly for industrial customers, consumer customers. Unlike mobile
marketing to send promotional messages, you talk to the customer directly and can
ask questions to assess their interests, understand their needs and answer queries
questions and objections. Normally tax forms are sent out after the catalogs, sales
letters, or after the Expo. Telephone marketing is one of the fastest growing
segments of the form of Direct Marketing in Australia. The financial institutions,
especially banks and Systems Company are providing a financial service which is
the unit used this form of the most common ways.

Direct_Response Television Marketing: The direct response marketers
handing out short TV program, usually from 60 to 120 seconds, introduced a
compelling product to the customer and toll-free number to order . It is very suitable
for magazines, books, small appliances, records and many other products. For
products need to educate the consumer and create awareness , and typically have
higher price promotions are applied to a long interview or topics, and are longer
than 2 minutes to describe the product in detail. Another method is that the home
shopping channels, in which the entire program or an entire TV channel dedicated
to sales and service channel programs which do provide sufficient categories of
goods at low prices , and viewers will call to a landline for reference and ordering,
payment via bank transfer and are delivered to the home.

Kiosk Marketing (purchases only) : There are a number of companies have
designed “machine for living orders” (another service vending machine) and put
together at the shop, airport and other places. For example Florsheim Shoe
Company company in America has this feature for a number of its stores , in which
customers choose the type of shoes you want to buy, colors, sizes .. One other
applications such as USA Hosts is the Kiosk located at the airport . Tourists look on
screen narrations of the type of product , such as indirect gifts to the governor , gifts
for friends, ... Tourists touch the screen to indicate that your goods concerned ,
specifying local only and time of delivery .

13

Door to Door Leaflet Marketing: Marketing is the form used in the food
industry, many consumers (Fast Food Industries). This mode focuses entirely by
region. This is a traditional type of marketing that is now rarely used because it has
too many shortcomings to be no consumer trust and information spread slow, spend
a lot of manpower and higher costs.

References:
Dr. Tran, Thi Ngoc Trang (ed.), 2007, Basic Marketing, Publishing House of Labor
- Social, Hanoi
MBA Nguyen, Van Dung; MBA Nguyen, Van Thi and others 2012, Marketing
Management, Publishing House of Labor, Hanoi
Dr. Vu, The Phu, Basic Marketing, Marketing Management, Open University of Ho
Chi Minh City
University of Finance and Marketing Library,
-
-
-
-

14