final exam subject principles of marketing

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<b>ĐẠI HỌC KINH TẾ THÀNH PHỐ HỒ CHÍ MINHTRƯỜNG CƠNG NGHỆ VÀ THIẾT KẾKHOA CƠNG NGHỆ THÔNG TIN KINH DOANH</b>

<b>Final exam</b>

<b>Subject: Principles ofMarketing</b>

Lecturer: Đỗ Thị Hải NinhClass code: 23C1BUS50307017Student’s name: Nguyễn Hoàng Nam Student’s ID: 31231026682

Coursec - Class: K49 - EEP001

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Question 1

Segmentation, Targeting, and Positioning (STP) is a fundamental customer – centric approach that can be applied to analyze and plan the strategic positioning of products or services.

<b>I. Segmentation-Targeting-Positioning strategy for Mrs Hai Ninh restaurant?</b>

UEH - campus B on Nguyen Tri Phuong Street is a specific destination due to the factthat there are thousands of students study there daily; therefore, the demand for a not onlyeconomical but also nutrious meal are high.

In this part, the authors just generally mentioned the eating culture of each region in Vietnam. Meanwhile, marketing demographics also include characteristics such as age, geographic location, education level, occupation, income, etc. that are used to create groups and segment a market. Marketing demographics make use of readily available information. Personal traits, including the buyer's age and life cycle stage, employment, economic status, lifestyle, personality, and self-concept, all have an impact on their decisions. Demographic segmentation enables marketing strategies to be more targeted and personalized for potential clients who fall within a certain demographic market. To be more specific, here are six descriptions of demographics that I recommend adding on and suggestions of how to market to each of them

In this part, the authors just generally mentioned the eating culture of each region in Vietnam. Meanwhile, marketing demographics also include characteristics such as age, geographic location, education level, occupation, income, etc. that are used to create groups and segment a market. Marketing demographics make use of readily available information. Personal traits, including the buyer's age and life cycle stage, employment, economic status, lifestyle, personality, and self-concept, all have an impact on their decisions. Demographic segmentation enables marketing strategies to be more targeted and personalized for potential clients who fall within a certain demographic market. To be more specific, here are six descriptions of demographics that I recommend adding on and suggestions of how to market to each of them

1. Market analysis:

<b>a. Definition and theory:</b>

Market analysis is the systematic process of gathering information about a target marketor customers. It involves collecting data, analyzing it, and using it to make informed decisionsabout the business. Before diving into segmentation, understanding the bigger picture is crucial.

- Competitors: analyze existing restaurants around UEH - B and Nguyen Tri PhuongStreet. Assess their cuisine types, price points, ambience, and target customers. Identify any gapsor underserved segments you can exploit.

- Customer needs and preferences: conduct surveys or focus groups among UEHstudents, faculty, and residents to understand their dining habits, food preferences, budgetconstraints, and desired dining experiences. Consider factors like convenience, healthconsciousness, dietary restrictions, and social settings.

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- Market trends: Stay updated on food trends like healthy eating, sustainability, anddelivery preferences. These insights can inspire menu development and marketing strategies.

- Economic factors: consider the student budget, disposable income of faculty andresidents and overall economic trends in the area. This will help you set appropriate pricing andvalue propositions.

<b>b. Practical analysis:</b>

Although UEH – B campus located at District 10 – one of the central district, the price offood around the corner of Nguyen Tri Phuong Street and Dao Duy Tu Street are relativelyaffordable with only 30.000 – 40.0000 VND per serving. Moreover, many students prefer eatingat the convenience store for example: Ministop, Circle K rather than a normal store as it ischeaper and faster. Our restaurant must serve customers quickly and prove to clients that eating ahealthy meal at our diner is better than industrial food at convenience store.

2. Segmenting the product:

<b>a. Definition and theory:</b>

The clearest definition of segmentation is dividing a large market into smaller groups (segments) with similar characteristics and needs Segmentation in the marketing procedure can be consider one of the most importants as its concentrate the value of the products into the right customers which restults in higher efficiency. It can also helps employers or distributors saving resources by allocating their company’s budget and efforts efficiently towards segments with higher potential.

There are many ways to segment a market and the best approach depends on the target customers, and business goals. Some common segmentation bases include:

- Demographics: age, gender, income, education level, family size.- Psychographics: values, interests, lifestyle, personality.

- Behavioral factors: purchase frequency, brand loyalty, usage patterns. - Geographic factors: location, region, climate.

- Gender: adjust the restaurant to become suitable for genders of all kind.

- Income: students are the main clients but they have limited budgets so we will have toadjust the restaurant to become more affordable.

<b>Psychographics describe the values and emotions that persuade a potential UEH students</b>

to enter our restaurant:

- The decoration as well as the atmosphere of the restautant is suitable to younggenerations.

- Staffs at the restaurants create a friendly feeling that makes customers especiallystudents feel better after stressful courses.

3. Targeting potential customers:

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There are plenty of restaurants and street vendors near UEH – B campus, therefore, itwould make the markets more competitive as customers have more choice. With that much ofcompetitors, Mrs Hai Ninh should focus the model of the restaurant into the budget price typebecause our restaurant can not compete with street vendors about the price and high – endrestautant about luxurious meals. As a matter of fact we should diversify the menu that therewould be affordable combos, quick bites in the menu because whether how quality the foods are,students will not willing to purchase as they lack money alongside premium choices for staff ofthe school to target both types of customers. A quick survey around UEH B campus shows thatthe best – seller course is rice with grilled pork chops with the price of 32.000 VND. The bestoption for us is to revoke the menu of the restaurant around the 38.000 VND price for a betterquality product to compete with street vendors but also cheap enough to let clients come back.As our main customers are students, we must accept the fact that out profit per meal will not behigh, we must use quantity instead of quality.

Moreover, we would also add on special offers for students:

- Seasonal specials: we will adapt our menu to cater to student schedules and interests,such as students who use our services during study break will get a promotion or there would bean extra snack for late – night student.

- Discount for UEH students: there would be a campaign that any UEH students will get aspecial offering if they bring their student’s card. By this way, our restaurant would more likelyto attract more and more learners to visit.

- Offer delivery service: consider delivering meals directly to the study room to savestudent’s time.

- Coffee and study space for students: create a designated study area with Wi-Fi and offercoffee deals to attract students during off-peak hours.

4. Positioning:

<b>a. Definition of positioning:</b>

Positioning in marketing refers to the strategic process of creating a unique perception ofthe restaurant in the minds of target customers. It is also the proceess of letting clients to tounderstand who we are, what we offer, and why they should choose our food.

The reason why positioning is immensely vital is it provides a lot of benefits for ourrestaurant:

- Stands out from the crowd: with effective positioning strategies, we will stand out fromcompetitors and attract targeted customers.

- Clarifies our value proposition: it defines what makes us unique and valuable, enablingus to communicate the benefits clearly and persuasively.

- Guides the marketing strategy: From branding and messaging to pricing anddistribution, positioning informs all aspects of the marketing efforts, ensuring consistency andrelevance.

- Builds customer loyalty: When customers identify with the brand's position and values,they become loyal and advocate for our business.

<b>b. Practical positioning:</b>

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As to become outstading in the market, we firstly have to create a good impression to ourfuture customers even before opening through excessive marketing on social platform forinstance: group Facebook of UEH student. Through that, we will promote discount for studentswho pay a visit when we officially open as well as promise more offerings if they become a loyalcustomers.

The segmentation, targeting and positioning method is vital, espicially in opening a newrestaurant. Therefore, after all the process from analyzing the market, segment the products,targeting potential customers and place the product in the market. If the owner follow all theprocedures, I can ensure a success for the upcoming restaurant.

Question 2

<b>II. 4Ps strategy in the process of establishing the restaurant </b>

In the world of marketing, four keys factors that dominate the stage are Product, Price,Place, and Promotion. These are the 4Ps, a framework not just for selling, but for deliveringvalue of the products to buyers; understanding this vital concept is the key for any business toconquer the market. The 4Ps work together seamlessly to create a cohesive marketing strategy.Analyzing each element individually and then looking at the bigger picture will help identify anyweaknesses or opportunities for improvement.

1. Product

<b>a. Theory</b>

Product sits at the heart of the marketing mix, captivating customers with its attraction.It encompasses everything from the tangible attributes of the offering, like its design andfeatures, to the intangible benefits it provides, like convenience or emotional connection.Developing a winning product demands meticulous attention to detail. Understanding the targetcustomers's needs and desires is paramount. What problems does the product solve? Whataspirations does it fulfill? Filling the gap between desire and reality is where successful productdevelopment begins. But it's not just about functionality. The product's personality is equallyimportant. What story does it tell? Does it convey elegance, innovation, or reliability? Eachfacet, from packaging to branding, must resonate with target customers and create a compellingnarrative. Remember, product evolution is essential. Market trends shift, competitor innovationsemerge, and customer preferences evolve. Stay nimble, be responsive to feedback, andcontinuously refine the product to maintain its competitive edge and ensure it remains the star ofthe show.

<b>b. Applying theory into reality:</b>

As for a dish that is familiar, tasty and reasonable, i suggest using rice as the main courseand diversify the menu with a wide range of dishes ranging for the economical as well as theluxurious. By that, the restaurant can attract a variety set of customers as low income people willeat reasonable price dishes while luxurious people can enjoy well – made courses.

2. Price

<b>a. Theory:</b>

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Pricing product is a major thing between value perception and profitability. Setting aprice too high risks alienating customers, while undervaluing your offering can erode profitmargins and brand image. Understanding the cost of production, customer price sensitivity, andcompetitor pricing strategies is crucial in determining the optimal price point. But price is notsimply a number; it communicates value. A premium price tag can imply exclusivity and quality,while a lower price can attract budget-conscious consumers. Strategic pricing tactics likediscounts, bundles, and loyalty programs can further enhance value perception and enticecustomers. Furthermore, price flexibility can be a powerful tool to navigate seasonal fluctuations,promotional periods, and competitive landscapes. Ultimately, finding the sweet spot betweenaffordability and profitability is key. Pricing strategy should reflect the value of the service andproduct delivers, resonate with target customers as well as ensure the sustainability of thebusiness.

<b>b. Applying theory into reality:</b>

In order to place the right price, we need to calcute carefully our costs of ingredients,rent, labor, and utilities to ensure pricing covers expenses. However during the period when firstopen, we should place price a little lower than we expected and accept the fact that our income isdecreased. We dtermine a reasonable profit margin that ensures the restaurant remainssustainable. Start with a slightly higher margin and adjust based on customer demand and salesperformance. Finding the ideal price is an ongoing process. Be flexible, adapt to market changes,and use data to inform the pricing decisions. By finding a balance between affordability, quality,and profitability, we can set reasonable prices that attract customers and contribute to the successof the business. We should also monitor customer feedback and adjust the pricing based on theirresponses and purchase patterns.

3. Place

<b>a. Theory:</b>

Place encompasses the channels through which product reaches customers. In today'sdigital age, this stage extends beyond physical stores to online platforms, social media andmobile apps. The challenge lies in choosing the right channels to connect with target customerseffectively. For some products, a brick-and-mortar presence showcasing the product's experiencemight be essential. Others might thrive solely through online marketplaces or direct-to-consumerplatforms. Understanding target customers's purchasing habits and preferred touchpoints iscrucial in making this decision. Distribution channels shouldn't be static. As online shoppinghabits evolve and new platforms emerge, adapt our distribution strategy accordingly. Experimentwith different channels, measure their effectiveness and prioritize those that offer the mostefficient and profitable pathways to reachcustomers. Make sure that product is readily availablewhere and when your target customers expects it. Convenience adds value and enhances thecustomer experience, solidifying the place in the market.

<b>b. Applying theory into reality:</b>

Having great premises that is close to the school is a big advantage. An excellentpremises is the one that consists of strategic location which is near UEH – B campus andstudents can go there on foot. A clean, well-maintained and inviting exterior with proper signage

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grabs attention and entices customers to enter and increase the brand awareness. Last but notleast, a comfortable ambience with pleasant and well-designed interior encourages longer stays,fosters positive customer experiences, and builds loyalty. With all that factors, customers willlikely to return as well as introduce our store to other people.

Moreover, the restaurant should also apply e-commerce into its daily business byaccepting orders online and deliver them directly to school. Students can call directly to thehotline of the restaurant, giving details about the orders as well as their room number; later thatthe food will be delivered directly to them.

4. Promotion

<b>a. Theory:</b>

Promotion is the megaphone that amplifies our product's message, attracting attentionand sparking interest. It requires understanding target customers's media consumption habits andcrafting engaging messages that resonate with them. From eye-catching advertisements tocompelling social media campaigns, the promotional offers a diverse range of catchingcustomers attention. The key lies in targeting the right channels, utilizing the right tone andcrafting the right message. A multi-pronged approach that combines traditional and digitalmarketing strategies is often the most effective. Promotion is also about building trust andestablishing a meaningful connection with customers, our promotional efforts should not onlyentice customers, but also nurture long-term loyalty.

<b>b. Applying theory into reality:</b>

As for our product to gain more popularity, we should invest a lot of money onmarketing:

- Content marketing: create valuable content, such as blog posts, articles, andinfographics, that educates and informs the target audience about our product and its benefits.This can help to build trust and credibility and position our restaurant as an expert in the field.

- Influencer marketing: partner with influencers in UEH to promote product. This can bea great way to reach a wider audience and tap into the trust that consumers have in influencers.We should also create a social media such as Tiktok under the restaurant name and post ourmenu, our speciality as for clients to know about.

- Run contests and giveaways: deploy frequently to attract customers attention.By applying the 4 key role of marketing in the opening of Mrs Hai Ninh restaurant, shewould succedd in this field as well as earn the chance of expanding the franchuise to othercampus of UEH University.

Question 3

<b>III. The factors influencing consumer behavior in Marketing</b>

Cracking the code to consumer behavior has long been a goal of marketers. By understanding how and why they make their decisions in purchasing, marketers can carry out more effective plans and grow their market share. Four broad categories can be used to analyze

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the elements that have a strong impact on consumer purchases consisting of: cultural factors, personal influences, psychological influences and social factors.

<b>1. Cultural factors</b>

Cultural factors has significant impact when it comes to the decision-making process of customers. Especifically, these are the effects of people and groups influencing one another through culture, subculture and social class.

- Culture is a system of values, beliefs, traditions, norms and behaviors that are formed, developed and inherited over generations. It is also a broad and multifaceted concept with many layers and interpretations that influence a person’s needs and wants because it is through culture that we learn how to live, what to value, and how to conduct ourselves in society. Culture encompasses the customs, arts, social institutions, and achievements of a particular nation, people, or group. It is the "way of life" that's shared and passed down through generations. Thinkof language, cuisine, traditions, beliefs, music, art, and so much more. Culture is learned and transmitted through social interaction. We acquire cultural knowledge and behaviors from our families, communities, and broader society. It's not something we're born with, but something welearn and adapt over time. Culture is dynamic and ever-evolving. It's not static or fixed, but constantly changing and adapting to new influences and circumstances. What we think of as "traditional" culture was once new and innovative at some point. wide selection, and long opening hours.

- Subculture is another factor that exist within larger cultures and add even more variety and vibrancy to the human tapestry. This is a group of people within a larger culture who share symbols and rituals: specific clothing styles, hairstyles, music, slang, jokes, or even greetings that solidify their identity. Subculture can also alternate values and norms, it might challenge some aspects of the mainstream culture and have their own set of expectations and behaviors. It also has strong sense of community

<b>2. Personal influences</b>

Personal influences play a major role in shaping consumer behavior, often acting as invisible puppet masters pulling the strings of our purchasing decisions. These influences can be broadly categorized into four main groups:

- Age: our needs and wants evolve as we age, throughout our life we will have different changes in the goods and services we buy. A teenager might prioritize trendy clothes and gadgets, while an adult might focus on practical items, suitable clothing, for home and family.

- Gender: Marketing often targets specific genders with products and messaging tailored to their perceived preferences and roles.

- Income level: Spending habits are naturally influenced by how much money we have. Those with higher incomes have more disposable income for luxury purchases or experiences. Education level: Education can shape our values and priorities, influencing the types of products and services we choose.

- Occupation: our jobs can influence our needs and spending habits. For example, a construction worker might need practical workwear, while an office worker might prioritize comfortable clothing and productivity tools. Working environment can also influence product choices, for instance a chef might invest a whole lot of money on cooking gear while farmers might prioritize practical outdoor gear and clothing. Therefore, each job groups will have different priority and we strive to ensure that priority.

<b>3. Psychological factors.</b>

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When it comes to psychological factors influencing consumer behavior, we delve into thefascinating realm of the mind! These internal forces play a crucial role in shaping our choices, desires, and ultimately, our purchasing decisions. How and why consumers make decision when purchasing are also influenced by six psychological factors:

- Cognition: The engine of information processing, attention, memory, and perception guide how consumers take in and interpret the message. It is how we interpret and understand information from the world around us. A distracted consumer might miss our advertisements, while a strong memory of a past positive experience can fuel brand loyalty.

- Emotion: The fuel that drives behavior, joy, anger, fear, and other emotions influence purchase decisions. Connecting with consumers on an emotional level can create powerful attachments and drive brand advocacy.

- Motivation: The spark that ignites action, intrinsic desires and extrinsic rewards push consumers to choose the product. Understanding their motivations allows us to tailor the offerings and messaging to resonate with their needs and aspirations. Everyone needs become a motivation only when it is increased to a sufficiently strong level and then thrive into making them choose a specific type of product immediately.

- Perception: A perception factor is any of the different components that affect These elements have the power to influence our feelings, ideas, and eventually our behavior. For instance, while forming early opinions about goods and services, consumers mostly rely on sensory data such as sight, hearing, touch, taste, and smell. Evocative scents, cozy textures, and appealing packaging can all subtly affect a buyer's choice to buy. Additionally, after utilizing a good or service, customers assess how well it performed in comparison to what they had initiallyanticipated. A product that performs better than expected can encourage positive word-of-mouth and brand loyalty, but a subpar experience can tarnish perceptions and influence future purchasing decisions.

- Learning is the process by which customers alter their behavior in response to new knowledge or experiences. Learning influences customers' shopping behaviors in addition to the products they select. A person learns about a good or service only after using it himself. Individuals who are unfamiliar with a product or brand tend to research it more thoroughly than those who have previously utilized it. Moreover, a person who expresses satisfaction with a specific product or service is likely to purchase it again.

- Belief systems and attitude: A belief is a descriptive idea that a person holds about something; it is founded on actual information, opinion, or faith. On the other hand, an attitude isa person's generally consistent assessments, emotions, and dispositions toward a concept or object. Consumers are guided toward goods and services that are consistent with our values and perceived advantages by the filters of attitude and belief systems. This implies that even if sustainable brands and products are more expensive, customers with strong environmental views may prioritize them. Furthermore, customers' evaluation of the qualities and benefits of products is influenced by their attitude and belief systems. When choosing food, for instance, a consumer who values health would put more emphasis on nutritional content than flavor, whereas a customer who values social

<b>4. Social factors</b>

Consumer behavior is greatly influenced by social influences, which go beyond internal drivers to shape choices, preferences, and motivations. It is possible to highlight a wide range of social aspects, including roles, status, families, groups, and social networks. These social factors

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