Solutions to improve marketing activities of manulife Vietnam from 2007 to 2010

MASTER IN MANAGEMENT PROGRAM (MMVCFB6)


















COMMITMENT







I would like to confirm this thesis is my own
research

All data and information mentioned in this
thesis is honest.





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ACKNOWLEDGEMENTS


After graduated from the Economic University of Ho Chi Minh city, I
have passed five years of working in several companies, some of them are very
famous like Ajinomoto Inc. with Japanese management style, Manulife Vietnam
– a western company bearing active authorization and MBO management
style… and one of them is not famous but very dynamic and flexible like H&M
– a new private local enterprise. I have learned from company managers the
way they lead their team, their company to meet goals. I heard several
complaints and discovered some disappointed emotions they received from their

staffs. But I did not know how the manager can do it well in handling job
management, harmonizing conflicts and benefits as well, creating strategy for
the company, selecting and processing from a hundred bundles of information to
make right decisions…To get the answer for this question, I decided to take an
advance study. The Master of Management (MMVCFB6) is very suitable and
the most efficiency course that can help me to understand and to improve
knowledge, skill of management.
After two years, the course is ending soon, and I am writing the thesis. I
have learned a lot during my study course from many people and received great
helps from them.
Firstly, I would like to thank to all Professors of the Course for their
instruction on all the newest and the deepest knowledge and experience to us.
Secondly, I would like to express my sincere thanks to Professor Le Tan
Buu – The Head of Commercial-Tourist Department of the Economic University
of Ho Chi Minh city who directly gave me advices to make the research and
final thesis.
The thesis discusses about marketing activities of Manulife Vietnam
company. I have also received many ideas contributing from my colleagues in
Marketing department, Sales managers and many agents. I would like to send
my thanks to them as well for I will never finish the thesis without their
assistances. Thank to Board of Management who gave me a chance to interview
them and helped me with many advices during the time I have worked with the
company.
Last but not least, I would like to send thanks to my classmates,
especially to my Group-One members for their sharing knowledge, experiences,
discussions that help me to build up my mind. Working with them in class
assignments is a chance for me to polish myself in the team.

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GUIDANCE ADVISER’S COMMENTS

The topic of research is highly concerned by Vietnam life
insurance companies, especially to Manulife Vietnam situation.
The thesis's structure is logical, and well established. The content
is comprehensive, clear and abundant in figures and facts. The
Market analysis is marvelous based on the market survey, face-
to-face interview and focus group showing the hard working of
student Nguyen Xuan Chinh. The solutions for improving
marketing activities in the company are highly practical. I hereby
agree to let the student present this thesis to the Board of
Examiners.









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i

TABLE OF CONTENTS

LIST OF TABLES VIII
LIST OF FIGURES IX
LIST OF GRAPHS X
CHAPTER 1 1
INTRODUCTION 1
1.1. INTRODUTION 1
1.2. OBJECTIVES AND SCOPE OF THE STUDY 2
1.3. METHODOLOGY 2

1.4. STRUCTURE OF STUDY 4
CHAPTER 2 5
LITERATURE REVIEW 5
2.1. THEORY OF MARKETING AND MODERN MARKETING 5
2.1.1. Definition of marketing 5
2.1.2. Vision of marketing 6
2.1.3. Marketing concept 6
2.1.4. Marketing Process 7
2.1.4.1. Understanding behaviors and motivations 9
2.1.4.2. Segmenting markets 10
2.4.2.3. Choosing the targets 13
2.1.5. Marketing Mix 14
2.1.6. Global Marketing Management 15
2.1.7. Roles of marketing to an enterprise activities 18
2.1.8. Content of marketing activities of a life insurance company 19
2.1.9. Factors effect to Marketing activities of a life insurance company 20
2.1.9.1. Internal factor. 20
2.1.9.2. External factor. 21
2.2. LIFE INSURANCE INDUSTRY 23
2.2.1. Roles of life insurance in an economy 23
2.2.2. Vietnam life insurance business 24
CHAPTER 3 26
MANULIFE VIET NAM - MARKETING ANALISYS 26
3.1. HISTORY, VISION, MISSION, ENVIRONMENT, ORGANIZATION AND
OPERATION 26
3.1.1. History of the company 26
3.1.2. Manulife Vietnam Vision and Values 28
3.1.3. Business Environment 29
3.1.3.1. Suppliers 30
3.1.3.2. Competitors 31

3.1.3.3. Customers 32
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3.1.3.4. Partners 33
3.1.3.5. Regulatory Agencies 33
3.1.4. Organization and Operations 34
3.1.4.1 Organisation 34
3.1.4.2 Procedure of Operation of Manulife Vietnam 39
3.1.4.3 Operation indication of manulife Vietnam from 2000 to 2006 40
3.2. MARKET SURVEY ANNALISYS 40
3.2.1. General market situation analysis from the survey 40
3.2.2. Reason of client not having an life insurance contracts 43
3.2.3. Reasons to terminate contract before due date (lapsed and surrendered
policies) 44
3.2.4. Factors to make a buying decision 44
3.2.5. Resistance to have a life insurance contract 46
3.2.6. Key factors when selecting a right service 46

3.2.7. Favorite benefits of life insurance service 47
3.2.8. Who should have an insurance contract 49
3.2.9. Life insurance and other investment vehicles 51
3.2.10. The company images 52
3.2.11. Potential clients 53
3.2.12. Income – Life insurance 54
3.2.13. Draft of future market shares of life insurance 55
3.3. MARKETING ACTIVITIES ANALYSIS OF MANULIFE VIETNAM 56
3.3.1. Human resource of Marketing department 56
3.3.2. Market research and analysis 57
3.3.3. Public relation activities 57
3.3.4. Sales support 58
3.3.5. Sale promotion and advertising 58
3.4. SWOT 59
3.4.1. Strengths 59
3.4.2. Weaknesses 60
3.4.3. Opportunities 60
3.4.4. Threats 61
3.5. MARKET SHARE ANALISYS 62
3.5.1. Market Share by collection premium (Revenue) 62
3.5.2. Share by distribution channel (Number of agents) 63
3.5.3. Market Share by new contracts 64
3.5.4. Productivity of agents 65
CHAPTER 4 66
SOME SOLUTIONS TO ENHANCE MARKETING ACTIVITIES 66
IN MANULIFE VIETNAM 66
4.1. MARKETING OBJECTIVES FROM 2007 TO 2010 66
4.2. SOLUTIONS TO MEET OBJECTIVES 66
4.2.1. Building up a marketing department with necessary functions 66
4.2.2. Market segmentation 68

4.2.2.1. Segmentation by sex 68
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4.2.2.2. Segmentation by income 69
4.2.2.3. Segmentation by age 70

4.2.3. Product development 71
4.2.3.1. Products development adapts to target segmentation 71
4.2.3.2. Products re-launching 71
4.2.4. Sales force – Distribution channel 72
4.2.4.1. Enhancing quality of distribution to build trust with customers 72
4.2.4.2. Enlarge distribution location 73
4.2.4.3. Facility for distribution 73
4.2.5. Building the Company Image 73
4.2.6. Public relation, promotion, advertisement and after sales services 74
4.3. VALIDITY OF SOLUTIONS 76
4.3.1. Estimate result of solution in segmentation and product development 76
4.3.2. Estimate results of solutions in distribution and product development 76
4.3.3. Estimate results of solutions in PR, advertisements, improving after sell
customer service 77
CONSCLUSION 78

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A contract with conditions between client and insurer in a life
insurance protection agreement.

Before a real contract is signed, agent can use
computerize proposal contract to deal and consult their client.

: a Vietnamese organization or citizen who is authorized
by Insurer to solicit life insurance business in Vietnam.

: any organization or individual who is residing in Vietnam having
obtained 18 years of age and above, having full capacity for civil acts, and is the
person who fills in and signs the Insurance Application Form and pays the
insurance premiums.

: any individual who is accepted by Insurer for insurance under the
policy terms and conditions.

: can be an organization or an individual designated by the policy
owner to receive the insurance benefits according to the terms and conditions of
the insurance policy.

the relationship between policy owner and life assured in
which the policy owner must suffer financial loss or mental detriment on the death
of the life assured, and the loss must be legal.

The policy owner shall have insurable interests in the following persons:

* The policy owner him or herself;

* Legitimate wife, husband, children, father, mother of the policy owner;

* Siblings, others who have lawful fostering/guardian relationships with the
policy owner;

* Nephew and niece of the policy owner;

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* Others in relation to whom the policy owner will be subject to material
financial loss as a result of the life assured's death.

: a specified amount of money that the insurer receives from the
policyholder in order to provide the policy benefits when a specific event occurs
as regulated in the policy wordings.

: the face amount of a policy agreed by both the policy owner and
insurance company in the insurance policy.

: with regards to the life assured, the loss,
paralysis or dismemberment of:

* Two arms; or

* Two legs; or

* One arm and one leg; or

* Two eyes; or

* One eye and one arm; or

* One eye and one leg.

: A legal form issued by the Insurer. The policyowner
has the obligation to provide sufficient and accurate information in the application
form. This form is considered as an integral part of the Insurance Policy.

: A legal document issued by the Insurer and is an integral
part of the Insurance Contract listing core benefits of the insurance policy.

: the duration between two premium due dates. The premium
paying frequency can be:

* Monthly; or

* Quarterly; or

vi

* Half-yearly; or

* Yearly.


: The period of 21 days from the date on which the Life
Insurance Certificate is issued. This period is to give you time to re-consider
carefully and independently your decision of buying the insurance policy,
especially after you have plenty of time to go through the “policy terms and
conditions” provided in attachment with the insurance policy sent to you. This
free-look period is counted in the validity of the policy.

: A period of 60 days from the premium due date.

: during the insurance period, the annual anniversary of
the date on which the insurance policy comes into effect.

: the amount which the policyowner is entitled to receive if, at
any point during the period of effectiveness of the policy, the policyowner
chooses to cancel the insurance policy. Surrender value will be payable on a
policy after 2 full years insurance premium have been paid.

After the second anniversary of the insurance policy, the policyholder
may request surrender of all or a part of the accumulated bonuses which have
been declared by Insurer under the insurance policy. The value of bonus
surrender is smaller than the accumulated bonus value and is subject to the point
of time when the bonus is surrendered, and increases in proportion of the length
of validity of the policy.
Policy benefits payable in case of life assured's total and permernant disability:
the amount received by the policy owner in case of the life assured's disability as
regulated in the policy wordings.

Policy benefits payable in case of life assured's death: the amount received by the
policyowner in case of the life assured's death as regulated in the policywordings.

Insurance benefits have been made for death or total and permanent disability
prior to the date on which periodic payment of sum assured is due.

vii

Policy benefits payable on the maturity date: the amount received by the
policyowner on the maturity date.

: an amount of no more than 80% of the surrender value that the
policyowner may receive from Insurer if any surrender value becomes payable on
the insurance policy.

: where Insurer automatically makes an advance of
surrender value to the policy owner in an amount equal to the premium due in
order to settle the premium obligation if, upon expiry of the premium due date,
the policyowner fails to make premium payment and does not request

cancellation of the policy, and the surrender value is payable on the policy.
means the decrease in the proceeds gained from the investment
activities as a result of cash advance from the surrender value of a policy. Interest
shall be determined in the percentages to the cash advances from the surrender
value on the basis of the technical interest rate.

is the selling of basic life insurance products and riders through
the bank's distribution channels.

The quality of our future is determined by the plans we make today. Our
customers have many different needs when planning for their future: some make
financial plans with the hope of starting a new business; some buy various
investment vehicles for the purchase of a new home or for their retirement or for
their children's education and development

Now with Bancassurance you can solve all of your financial needs in one place -
the bank. You can select the financial plans best suited to your personal needs
and make sure your plans will be completed even in the event of unexpected
tragedy.
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viii

Table 2. 1 : Model of customer behaviors 10
Table 2. 2 : List of life insurer in Vietnam with investment amount 25
Table 2. 3 : Revenue and growth rate of Vietnam Life Insurance market 25

Table 3. 1 : List of suppliers 31
Table 3. 2 : List of current Life insurance companies in Vietnam 32
Table 3. 3 : Number of Manulife Vietnam employees 36
Table 3. 4 : Some operation indicator of Manulife Vietnam from 2000 to 2006 40

Table 3. 5 : Who should by service 49
Table 3. 6 : Income and purchasing decision 54
Table 3. 7 : Total revenue of Life insurance companies 62
Table 3. 8 : Total number of new contracts of Life insurance companies 64
Table 3. 9 : Productivity of agents of Life insurance companies 65

Table 4. 1 : Segmentation by sex 69
Table 4. 2 : Segmentation by income 70
Table 4. 3 : Market Segmentation by ages 70
Table 4. 4 : Estimate result of solution in segmentation & product development.76
Table 4. 5 : Estimate results of solutions in development of distribution 76
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exposures 575769¶
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Figure 2. 1 : Societal Marketing concept 7
Figure 2. 2 : The Marketing Process 8
Figure 2. 3 : Segmentation process 10
Figure 2. 4 : Segmentation according to the clients’ characteristics (consumers).11
Figure 2. 5 : Segmentation according to the clients’ characteristics 12
Figure 2. 6 : Segmentation according to the clients’ expectation 12
Figure 2. 7 : Segmentation according to the clients’ behaviors 12
Figure 2. 8 : Approaches for targeting 14
Figure 2. 9 : Culture – marketing values 17
Figure 2. 10 : New place of marketing in the organization 18
Figure 2. 11 : Internal Factor effects to marketing activity 20
Figure 2. 12 : External Factor effects to marketing activity 21
Figure 2. 13 : Source of information of marketing research and planning. 22


Figure 3. 1: Diagram showing the organization 29
Figure 3. 2: Manulife Vietnam Organization Chart 34
Figure 3. 3: Process of operation of Manulife Vietnam 39

Figure 4. 1 : New functions of marketing department 67



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Graph 3. 1 : Survey result – Clients have insurance contracts with insurers 41

Graph 3. 2 : Survey result – Resistance to have a life insurance contract 43
Graph 3. 3 : Survey result – Reason of stopping the contract before due date 44
Graph 3. 4 : Survey result - Reasons to have a life insurance contract 44
Graph 3. 5 : Survey result – Resistance to have a life insurance contract 46
Graph 3. 6 : Survey result – Key factors when selecting a right service 46
Graph 3. 7 : Survey Result – Client’s favorite benefits of life insurance service .47
Graph 3. 8 : Survey result - Who should have an insurance contract 49
Graph 3. 9 : Opinions on who should have life insurance contract 50
Graph 3. 10 : Investment – Best way of saving money 51
Graph 3. 11 : Impression of client on insurance companies’ images 52
Graph 3. 12 : Potential client of life insurers 53
Graph 3. 13 : Survey results - Income and purchasing decision 54
Graph 3. 14 : Survey result – Market shares of life insurance company in future 55
Graph 3. 15 : Markets share by Revenue 2005 62
Graph 3. 16 : Share of distribution chanel 63
Graph 3. 17 : Market share by new contracts 64

Annex 1 – Questionaire market survey
Annex 2 – Results of market survey
Annex 3 – Focus group inerview notices

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1


Vietnam, in process of integrating into the World Economy, has actively
attracted international resources in various fields. Besides that, people’s socio-
economic life has gradually increased. Together with the development of the
economy, the higher of the life’s standard, the higher demand for the life. People
care not only about essential demands such as foods, clothes, and place to live but
also about safety. They expect their life staying away from risks. Life insurance is
a kind of business which can satisfy that demand. The aim of all insurance
companies is to compensate the owner against losses arising from a variety of
risks of his life, property and business.
Life insurance market in Viet Nam just become more and more active after
1999 when the government accepts the operation for Multinational Companies in
Life insurance market. Base on the advantages of financial and experience, these
companies did lots of marketing programs to build their position in Vietnam
market. However, the business has a down trend after initial years (1999 – 2003)
that requires a study to find out the root causes of the decline of life insurance
industry in Vietnam market.
Since the life insurance is a new kind of financial service in Vietnam and
Manulife (Vietnam) Ltd was the first wholly foreign-owned life insurance
company authorized to transact business in Vietnam. It provides the best financial

protection and investment management services tailored to customers, studying
Manulife’s marketing activities will help us to understand about Life Insurance
market in Vietnam.
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be an experts in this field. The company
is chosen to apply the theories and
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Management course to real life.
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2
The study of “Some solutions to enhance marketing activities in Manulife
Vietnam” is to apply the theories and knowledge of the Master in Management
course to analyze the current situation of life insurance industry in Vietnam in
order to find out the solutions to improve the effectiveness of marketing activities
of Manulife Vietnam as well as to bring back the dynamic market for Life
insurance industry in Vietnam. It is also can be used as a reference for other
companies in Life insurance industry.
In the short time of research, analysis and assessment the real situation
there may have some shortcomings. Much appreciate your comments to make it
better.

Objectives : to find out the reason of market decline for Life insurance
service in Vietnam and recommend some solutions to improve marketing
activities of Manulife Vietnam.
Due to time constraint, the study concentrates on analyzing and evaluating
the life insurance market, specially for marketing activities and the survey is done
with clients in Ho Chi Minh City where is the most dynamic trade and financial
centre in Vietnam occupying the most demand of Life insurance service.

This research is conducted in 3 stages:

1. Review literature on marketing management, modern marketing and the
role of Life insurance in the economy.
2. Marketing analysis and assessment for Manulife Vietnam including the
market survey on Life Insurance service in Ho Chi Minh City
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¶
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g
the reasons leadin
g
to
some decreases in the growth trend of
Manulife’s market. After that proposals
on marketing strategy for improvement
in future of the company from 2007 to
2010.

3
To identify the current situation of life insurance market in Vietnam, the
survey was done with clients in Ho Chi Minh City where is the most dynamic
commercial and financial centre of Vietnam and evaluate the customer’s
behavior and demand tendency in Life insurance service, the research focuses on
assessment of customer’s satisfaction, brand name and implicit demands through
questionnaires, the interview and focus group.
The questionnaires are designed with four main parts: 1). Evaluate
customer’s satisfaction; 2). Customer’s demand tendency; 3). Research on brand
name and Manulife Vietnam ’s position in the market; 4). General information of
the person who does the questionnaires. The survey was conducted by two ways
through online and hard copy to get the figures from people of many walks of life.
Online survey was designed on a special website for people who are working in
the office. Survey with hard copies was sent to people who rarely use internet. A
total of 200 hard copy questionnaires were delivered and 100 answers were
collected. With the online survey, 170 feedbacks were received. Totally, there
are 270 feedbacks for the survey. The data was processed by statistic tools of
excel.
The interview was done with Sales managers, Department managers and
agencies of Manulife Vietnam to gather their opinions about Life insurance
service in Vietnam.

Focus group are applied to get client’s opinions and behaviors about life
insurance in general and life insurance companies.
3. Conclusion and recommendations:
Following the survey result and the current situation analysis of the company
in Vietnam as well as a comparison with the literature of Marketing management,
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market segment, target market, target
product – after that analysis marketing
mix, besides that interview and focus
group
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4
some conclusions and recommendations are given to help Manulife Vietnam to
improve marketing activities.

The thesis includes the following parts:
♣ Chapter 1: Introduction. Presenting the research background, research
methodology and scope of the study.
♣ Chapter 2: Introducing literature review of marketing management,
modern marketing and the role of Life insurance in an
economy.
♣ Chapter 3: Marketing analysis and evaluation of Manulife Vietnam

♣ Chapter 4: Some solutions to enhance marketing activities of Manulife
Vietnam.
♣ Conclusion

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Deleted: enhance
Deleted: M
Deleted: This report will not mention
about the marketing budgets or price and
financial data of the company because
some sensitive and confidential issues.¶
RESEARCH FRAMEWORK¶
¶

5



Marketing of products, services and ideas to individuals and organizations
comes from the faster world, more competitive world, more uncertain world and
more global world.
There are different definitions of marketing as follows:
“Marketing is the process of planning and implementing the price
conception, the promotion and distribution of ideas, goods and services allowing
for exchanges consistent with the individual and organizational goals.”

“Marketing is the social and economic mechanism by which individuals
and groups satisfy their needs and desires through the creation and exchange of
products and other entities of value for others.”
“Marketing is a process initiated by organizations in order to get a control
over the exchanges that are crucial for their existence and their future.”

“Marketing is much like shooting at a moving target, and in this kind of
target shooting, it’s more useful to have a general sense of the direction and
velocity of the target than it is to have an extremely sensitive and accurate

gunsight.”
“Marketing Research can provide the « general sense of the target »
necessary for decision making.” James L. Heskett.
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6


A potential supplier (of products, services or ideas) initiates and
implements a process aiming at convincing a potential client to carry out with him
a transaction bringing to each of them a feeling of satisfaction.
That process may lead to a negotiation.

A supplier builds and maintains trustful long term relationships with a

group of clients (partners) in order to carry out repeat transactions to everyone’s
satisfaction.
That process leads to the creation of a marketing network that becomes
one of the supplier’s prior assets


Core marketing concepts
According to Kotler, “Marketing is a social and managerial process by which
individuals and groups obtain what they need and want through creating and
exchanging products and value with others”
1
. The core marketing concepts
include:
a. Needs, Wants and Demand
b. Offering
c. Value and Satisfaction
d. Exchange and Transactions
e. Relationship

1
Source: Philip Kotler, Marketing management 11
th
Edition
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7
Philip Kotler also mentioned about “The societal marketing concept” – the
newest of the five marketing management philosophies. It is showed:
Figure 2. 1 : Societal Marketing concept



The purpose of Marketing process are :
- To choose the target and understand its needs, its desires and its requests.
- To conceive a unique offer, fitting the needs of the target and different
from competitors.
- To communicate and make it accessible.
- To convince the aimed target to carry out the action that will lead to its
satisfaction.
The Marketing process includes a strategic phase and an operational phase. It
requires two types of skills: analysis and creativity.



Societal
marketing
conce
p
t
Society
(human welfare)
Consumers
(Want satisfaction)

Company
(Profits)
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8
Figure 2. 2 : The Marketing Process

With the conception, communication, channeling, convincing and under the
pressure of competition and fighting spirit, a company needs to identify its target
to aim to and make them to decide to buy or consume their products or services.
Therefore, targeting plays a very importing role in marketing.
Targeting is done based on three main aspects:
1). Understanding behaviors and motivations
2). Segmenting markets
3). Choosing the targets

TARGET
SATISFACTION
CONCEPTION

COMMUNICATION

CHANNELING

CONVINCING
COMPETITION
FIGHTING SPIRIT
Decision/Action*
MARKETING
PROGRAM
(or marketing mix)
* Buying, using,
consuming,…

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9
2.1.4.1.

Understanding behaviors and motivations
Why customer choose such offer is called a personal black box. It contains
factors influencing customers’ needs or wants and customers’ sensitivity in
decision making process.
ϖ Factors influencing customers’ needs or wants are:
Geographic factors: home and main activity location such as continent,
region, sub-region, country; megacities, medium-size town, small town, village;
urban centers, suburbs, rural areas. The fact that the geographic condition is
mobile or stable also impacts customers’ behaviors. Languages or cultures are
considered as geographic factors as well.
Demographic factors: age, sex, family situation, family life cycle.
Socio-economical factors: gross income, assets, access to credit, level of
education or occupation, activity for full time, part time
Psychological factors : state of needs as mentioned by Maslow and
personal experience such as each person is unique or his or her personality and
his or her own values are the results major influence on lifestyles.
ϖ Customers’ sensitivity in decision making process:
Depending on how important the decision is, customers will act at different
ways. With important or risky decision, they will learn > fell > Do. With a daily
and no risk decision, they will learn > do > feel.
Customers’ behaviors and motivations are also influenced by socio-cultural
environment, cultures et sub-cultures, family and social classes, contact groups,
reference groups, mega trend ( European, Asia ), mass media, marketing and
communication stimuli.
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Theoretical framework¶
The aim of this report is focus on the
marketing strategy, going to analysis
deeply the strategy and finding out the
way to improve it. The foundation of
marketing is necessary to review and
concentrate into which one is the most
important. By reviewing the literature
and combine with realistic, there are
several books and document concerning

this topic: ¶
Principles of Marketing
(Philip Kotler
and Gary Armstrong – 11th edition): ¶
Basic knowledge about marketing: t
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his book will
g
ive
g
eneral
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is
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the
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b
ehavior
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b
u
y
er behavio
r
, bu
y
er
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?
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B
esides, this book also
g
ive
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In this book, Kotler also
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[21]
[28]
[25]
[20]
[31]
[23]
[27]
[22]
[24]
[33]
[29]
[34]
[30]
[35]
[26]
[36]
[32]
[37]

10
Table 2. 1 : Model of customer behaviors


2.1.4.2.

Segmenting markets
ϖ is the search for homogeneousness of behavior among a
group of potential customers in order to better calibrate the marketing approach
(and therefore maximize the chances of success…) while making it economically
profitable.
Figure 2. 3 : Segmentation process



ϖ :
♣ Looking for several factors that could explain or characterize customers’
behaviors (segmentation criteria)
Marketing and
other Stimulation
Marketing
Product
Price
Place
Promotion
Other
Economic
Technological
Political

Cultural

Buyer’s Black Box


Buyer
Characteristics
Cultural
Social
Personal
Psychological
Buyer Decision
Process


Buyer
Responses


Product Choice
Brand Choice
Dealer Choice


Purchase
Timing
Purchase
Amount
Markets are not
homogeneous

(customers’ profiles and
purchase behaviors
differ)
Inefficiency
if unique offer
and
communication
process
Need to split
the market
in order to be able to :
• conceive more specific
proposals
•to communicate them
more efficiently
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2
.
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Figures:
[43]
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[46]
[39]
[45]
[47]
[44]
[41]
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[48]