Bài tập môn quan tri marketing tienganh

NHÓM 4_GAMBA01.D0109 MKTG676 – Marketing Management

GLOBAL ADVANCED MASTER OF
BUSINESS ADMINISTRATION
GROUP EXERCISE NUMBER 2
COURSE:
MARKETING MANAGEMENT
CLASSES: GAMBA01. D0109
GROUP 04 IMPLEMENTATION
1. Dinh Quoc Lam
2. Vu Huy Dung
3. Cao Minh Trung
4. Huynh Van Khanh
5. Nguyen Thanh Dung

HCM CITY - MAY, 2010
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SUBJECTS
Question 12: What's the difference between marketing tangible products and marketing
services (can select a tangible product and a specific service)

ANSWER
I. INTRODUCTION
In recent years Vietnam's economy is on the rise, the economic structure is shifting
positively.Free trade situation as increasingly joined with the World Trade Organization
(WTO), a very important role in marketing issues and consumer products especially
products and services.However, for services, such as intangible goods that businesses

provide to users and to satisfy needs and wants of them, and by the distinct characteristics of
services compared to goodstangible business products and services more difficult and more
complex risks. Prior to that status, enterprise business products and services should clearly
distinguish the differences of tangible products, services and products, to build a marketing
strategy, product mix, marketing-mix of products and services to bring the best performance
for businesses to meet needs and customer satisfaction. To better understand the importance
and differences of product marketing, and marketing services, Group 4 selected topic "The
difference between marketing tangible products and marketing services (can select a
tangible product and a particular service)"
II. ANALYSIS
1. Summary of marketing theory
By definition for managers, marketing is viewed as "art sale", but rather surprised
that the most important elements of marketing lies not actually sell products. Peter Drucker,
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the top of management theorists said: "But the purpose of marketing is how to know and
understand good customer that product or service that best fits them, and it will sell
itself. Ideally, marketing should result from the shopping available. Since then, the creation
of products or new products and services become necessary to create them
Modern Marketing Theory focuses on satisfying customer needs by focusing on
understanding the market, the customer. Enterprises must first be interested in the needs of
potential customers, then go on to produce goods and products or create products or services
that meet customer expectations. Theory and practice of marketing is set based on customer
use a product a product or service that only when they have a demand because the product
or service that delivers a real benefit to them
2. The difference between product marketing 4P and marketing services 7P
Two aspects of this marketing is to find new customers, keeping close contact with

existing clients. The commercial products are developed to meet the desires of different
groups of customers, and even in some cases, only a specific group of customers. E. Jerome
McCarthy marketing-mix classification of products into four basic groups of activities and
have become popular include:
2.1. Product
Product could be goods or services, including elements of intangible and tangible. A
product sold on the market if it meets certain needs of certain consumers.When referring to
a product (with all elements of intangible and tangible), they usually divide it into three
levels.
- Level 1: Level of basic or core products are the basic benefits that will bring
products to customers. For example, automobiles are a means of personal transportation, a
work vehicle, a means of storing the property and sometimes it makes you become more
luxurious.
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products

Level 2: The product actually includes all elements reflect the existence of
such

as indicators

reflect the quality, features,

brand, appearance,

packaging. These factors help businesses differentiate their products with products of

competitors and also as a basis for customer choice in the same products.
-

Level 3: Additional product (advanced). This level mainly consists of client

services such as warranty, installation, training, use, delivery door,. to help customers feel
more comfortable, happier. It is a weapon of competitive enterprises. Not long before,
when the difference in price and quality are no longer significant competition in the market
will move towards focusing on customer service.
2.2. Price
Price is the amount of money that customers spend to get products and prices of
products that affect the number of products will be sold on the market. To determine prices
for their products, companies must be based on many factors, including elements within the
(target marketing, production costs,.) and external factors (demand of the market field,
competitive situation,.).
2.3. Distribution
Distribution is the activity to bring products to targeted customers. For every
business there are many different channels as directly, indirectly through the intermediary
distribution or a mixture of two forms above. The organization of good distribution system
will help companies increase product consumption while saving costs.
2.4. Promotion
Promotion called Media Marketing with purpose of information, encourage, persuade
customers to trust in business, the product and lead to consumer products. Marketing

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Communications, including four small elements: advertising, direct sales, promotion and

customer relations.
A marketer can use these properties to build a complete marketing-mix plan. 4P
model has the most effective applications when marketing-mix create the value of tangible
consumer goods. Use it to set policies on product, pricing, distribution systems and promote
at the best direction. In fact, competition for global markets at present, in addition to
tangible products also have products and services, so there 4P model has limitations when
applied to marketing products and services. So many researchers have given the extended
model 7P, to satisfy needs and wants of them, and by the distinct characteristics of services
than tangible goods are:
- Differences in the characteristics of products and services than tangible products:
Tangible Products

Products and Services

* Can see:

* Can not see the (invisible):

- There exists a material form

- Services can not touch, smell or see them
before use, does not exist in material form,

- The patented

- Services can not be patented

- It can display and advertise
-

Customers

can

handling

and

- Services can not display or advertise

discrimination, assess the quality before - Customer assess service quality after use,
purchase, or before use

based on experience, information and belief
of the customer. based on the location,
nature, place of supply, the supply

* Can be separated:

* Can not be separated:

Tangible products can be separated from
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manufacturers, transported to another place The process used and provide services can
for the proceeds. Customers can purchase not be separated. Customer service can not
for home use.

Tangible Products

take home to use
Products and Services

* Storage:

* Do not store:

- Can be archives, can be inventories, can - Services can not be stored as tangible
be return, may withdraw or re-sale.

products,

- Supply and demand can be balanced by

no

inventory,

can

not

be

refunded, sold or withdrawn.

the number of products produced between - Supply and demand balance is difficult,
different times.

often imbalances between different times.

* Stable quality:

* Diversity and quality is not stable

- Stable quality by the same design, - Service quality can not be the same, due
technology, production process, the product to the impact of human factors
quality

as

each

other,

through

the

examination process, products do not meet
quality will be eliminated before workshop.
- No involvement of customers in the
manufacturing process.

identical service
- Customers who participate in and
influence the process of implementation
services.

- Quality products certainly true as the
original design.

- Quality of service is single, can not have

- Service quality depends on factors of
control.
- Not sure whether services are delivered in

accordance with service plans & be
announced
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From the above characteristics, we found the service is operation process of activities
and behaviors based on intangible factors to handle relationships between enterprises and
customers. Services associated with the performance / achievement by each service have
targets that bring value to consumers. Performance here is the utility value and increase
value that consumers will receive through the use of services. So the differences of tangible
products and services to marketing-mix 4P model for tangible products is not enough to
perform the services that need to add three more factors including:
2.5. People
Human factors are primarily the company's staff, especially staff in direct contact
with customers. They both are involved in the exploitation process of creating the service,
just as the seller. Acts, gestures, speech, dress,. will affect their psychological
customers.Knowledge, skills affect their quality of service. Customers receive services and
participate in the process of customer service, relationships between customers together also

the problem that "Marketing-Mix Services" interest.
2.6. Tangible Factors (Physical Evidence)
The disadvantage of service is that intangible should need to use tangible elements to
effect positive psychological customers, improve service quality in customer perception.
These elements exist at transaction, together with products, people, advertising equipment
and facilities, corporate culture.
2.7. Process
For the service sector, the supply and consumption occur simultaneously, customers
participate in the process of creating the service. That process has psychological impact on
customers. Marketing-mix therefore also focuses on the service provider process.

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3. The difference between marketing tangible products and marketing services about
factor productivity and quality
3.1. Productivity
For tangible goods and products, yield is the product of the marketing requirements
of the criteria, the creation of commodities have increased productivity criteria so
completely invested in technology and production processes.
For services, productivity is the amount of services that particular level of production
of a unit providing services in a given unit of time and is offered to customers. Productive
health services associated with production. Productivity is dominated by specific labor, with
mature operations skills of man-made services. Due to the characteristics of the service is an
intangible product, is a big difference on productivity issues, typically has 04 major issues
dominated productivity services are:
- Improve the quality of labor force
- Increase investment in technology and equipment

- Actively tested before delivery tasks to employees
- To renew personal communication services.
Increasing productivity requires services involving the cooperation of customers, in
the process of production and distribution services. Services increase productivity by
changing customer behavior and expectations along with their acceptance of such
changes. For example, some hotels with attractive price, but did not meet the demand for
morning coffee at the bar. To meet this demand, the hotels must increase this service by
equipping the rooms, electric hot water, tea, coffee. and encourage customer self-service. As
a result of customer demand is satisfied, the employees have time to do other important
work and services to increase productivity.
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3.2. Quality
For tangible goods and products: a cognitive perspective on quality as "Quality is as
good product from the beginning, do not have disabilities, "Quality control by maintaining
strict manufacturing processes and technologies, control of all the errors until the finished
product
For products and services: Awareness and assessment of service quality more
difficult and complex than the existing product quality, intangible by nature, heterogeneity,
essentially no inventory, perishable and no interruption in production and consumption. So
when the marketing-mix service, managers to focus efforts on the provision and control of
tangible clues used by customers in evaluating service. Service quality to relative and
subjective, depends on perceptions, expectations and satisfaction of customers. In short,
customer satisfaction is related to service quality. If high service quality, satisfaction level
achieved expectations, customers feel happy and satisfied otherwise. The basis of the
quality of service is labor quality and the quality perception gap. Quality of labor depends
on the skill of the contingent labor supply. Due to the high skills that make personalized

services and maximize satisfaction
In short, quality marketing services including criteria are: Consumer satisfaction
level of customers, employees transactions, the organization inside physical environment
and facilities, corporate image and the interaction between client staff during
implementation services.
3.3. Reviews
In the competitive global market today, Marketing in the 21st century is no longer
confined in the traditional formula 4P, which has been 3P expanded into a formula 7P. The
marketing effort will be to add more power and defeating the competition with this new
formula. The reason many businesses now not want to apply the 4P model anymore because
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it's too simple, not to mention it is based on subjective assumptions that customers always
have the ability to reacognize and express their needs in a way beneficial to marketers
In addition, businesses should remember that the customer is an individual, but they
also represent a set of consumers capable of decision markets, or target market segments.
Therefore, marketers must consider each individual customer is the source and destination
marketing activities. 7P model has additional marketing overcome deficiencies above,
marketing professionals can easily influence and control the results of your marketing
initiatives and demonstrate the basic spirit of modern governance is weak Human factors
and system factors. People or personnel is not the most important factor in planning,
implementation and management strategies of the enterprise to increase productivity and
product quality but also to build and maintain relationships with customers, offering
solutions to improve service quality to retain customers by improving customer loyalty and
increase profits for businesses.
4. Evidence specific tangible product marketing and services marketing
4.1. Toyota success on the U.S. market 1955-1980 with the application 4P model

From 1955-1980 the company produced Japan's Toyota has successfully penetrated
the U.S. market with the application of effective marketing 4p model as follows:
4.1.1. Product strategy
Faced with the cars products of American and Europe, Toyota's product strategy is to
make high-quality car, nice small design, design refinement, fuel economy, fast, convenient
maintenance and economy. Because it is compatible with American demand, it just moves
in the U.S. Toyota has established a reputation of quality. After standing on American soil,
they have quickly expanded application product strategy, continuous improvement improve
product quality and improve labor productivity. Add to that an additional continuous
investment in technology, building workshop with advanced equipment, staff training with
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technical high, and a series of training professional workers, strengthen scientific
managemen. 1958 Toyota average production worker was 1.5 units a year, in 1969 to yield
up to 39 units a year. At the same time the average labor productivity of employees GM
cars on average 8.9 units a year and increase only 11.4 units a year. Improving product
quality, create a product "no errors" is the slogan Toyota. They focus on quality control in
the production line. They consider quality as the lives of enterprises, thereby assuring the
reputation of the Toyota brand.
4.1.2. Pricing strategy
Toyota moves in the U.S. market, they apply a low price strategy, competitive, target
is not high profit from products that can quickly moves in the market, achieving the number
certain market share, establishing a long-term dominance. To penetrate the market, must
take advantage of potential customers, setting prices lower than competitors, as loss of
profits in the near future as part of investment to exploit long term market expansion.
Toyota moves in the U.S. market, they apply a low price strategy, competitive, target is not
high profit from products that can quickly moves in the market, achieving the number

certain market share, establishing a long-term dominance. To penetrate the market, must
take advantage of potential customers, setting prices lower than competitors, as loss of
profits in the near future as part of investment to exploit long term market expansion.
4.1.3. Consumption distribution
Based on thorough analysis of competitors, the Toyota company selected a retail plan
advance and synchronized. To ensure product easily penetrate into the market, must be
completed risky step from production to consumption levels charge
-First, the service instance of maintenance and after sales is good. Second, selected
key consumption. Initially, Toyota selected a number of seaside cities like Los Angelet, San
Francisco. Timely detection and repair error, gain experience in international business.
After stabilization, Toyota began full force landed in America.
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- Third, strict screening agents. To ensure the brand, especially early to bring
products to market, precise recruitment agents both have strong capital and must have
extensive experience in sales to reduce the risk, increasing consumption but also work as a
model and training of skilled personnel marketing for company.
- The four, use funds to help and encourage the consumption
4.1.4. Strategies to promote consumption (Promotion)
In order to succeed in the U.S., nuclear in strategy to promote consumption of Toyota
is full power is concentrated to direct advertising to the market. To polish the image of
Toyota automobiles, they had a propaganda campaign very large, young and old baby
causing great everyone knows to Toyota. During this period, advertising costs for Toyota
more than many competitors. Content advertising designed by experts, sophistication is and
high technical. To avoid conflicts in trade relations between the U.S. and Japan, Toyota has
enlisted the support of the American people. Along with the advertising efforts, they also
mention the many advantages in function and bring benefits to consumers when used

Toyota. Advertising strategy "import car but American spirit." Toyota is finally successful
in the U.S. market, not to affect situation of 02 friendly countries.
4.2. BeeLine company with application service marketing 7P model
In the context of competition increasingly severe current between products and
services brands in all fields and industries such as: FMCG, consumer technology. can easily
see that paradox is while the pricing of other commodities rising more, the
telecommunications sector have opposite. Suppliers of mobile network services continuous
offering marketing programs, promotions attractive, lower prices to attract and expand their
market share. Overall, the big names in the field of mobile telecommunication networks has
been on the market position as well as position in the minds of consumers for many years.
So the question is what direction, the marketing model for the "next person"? Furthermore
in time at which the impact and effects of world economic crisis is very large, this is a new
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challenge to join! The appearance of BeeLine is a major brand of mobile telecommunication
networks active in the countries and territories in Eastern Europe and Central Asia has
caused "fever" for the market and the community in recent months.
Just over a month after joining the market, BeeLine was up "stirring"
telecommunications market and attention in the world of marketing, has been quick to
recognize high (78% level of brand awareness - CBI). This demonstrates that BeeLine is a
strategic platform quite strong, or more correctly say is a complex model of marketing
based on the principles of modern marketing in planning and find an effective competition
policy for and appropriate their style.

Today, undeniable the role, impact and applications of marketing in different fields.
It is easy to see through the decades, most businesses successful and sustainable
development is the marketing oriented company. Modern marketing through model 7P with

trend of empowering marketing in corporate governance organization and management, has
shown how in the case of BeeLine products launched.
4.2.1 Product & Price

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This is a strategic group has nature background in marketing management that
BeeLine has shaped the product strategy, from idea until the formation of a complete
product to consumers, with reasonable price policyand was launched at the right time.
Mobile telecommunications market Vietnam has great potential with a population of more
than 80 million people, a high percentage of young population, and is one of the most
developed areas in economic integration. Exploit "vulnerability" of the market when
consumers have not been put in place of "God" and the psychology of loyalty is not high,
BeeLine launched attractive products is Big Zero, a package with "value champion" and
"spoiled say forget the date!". This is persuasive messages about the benefits of the product
because it meets the expectations of consumers clearly, no specific limbo and was
visualized by a giant Zero (Big Zero).
For the price policy, all calls within the network of BeeLine will only charge for the
first minute of 1199, reminiscent of very high nature, because 0199 is the number of
BeeLine network. Charge of network messages would be 250 per message in the internal
network and 350 VND / messages to foreign networks, and this is definitely the cheapest
package in GSM group current. Even the off-net calls BeeLine will be lower than the 2030% compared to other GSM networks. As can be seen clearly that the competitive
advantage of the BeeLine is: (i) The service provider network international, (ii) international
experience in the top 10 global telecommunications brand, (iii) the Strategy of products
4.2.2 Place & Promotion
For distribution strategy, how to cover market and bring products to consumers
quickly, as well as displaying images and messages of products, advertising items,

decorative shelves. To attract attention and make it easy for customers to choose. In this
respect, BeeLine has been implemented successfully, contributing to promoting awareness
of packages and brand. Distribution of BeeLine network has over 3000 retail sale of SIM
and scratch cards, including traditional distribution channels and new distribution channels
in Vietnam market that the shops selling mobile phones are specially designed with BeeLine
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international standards. The official store of BeeLine will be launched next year in major
cities. The interesting thing here is the point of sale BeeLine working with eye-catching
design is placed on major streets, it was easy to reach this target audience and also features
new, innovative in marketing activities in Vietnam.
Advertising or media purpose to the dialogue beyond to consumer, market and
community recognize and feel the key messages of the brand in a better way, but it is also
active with the most costly! BeeLine brand mobile network shows highly integrated and
synchronized with a media campaign to create the best interactive effect between the brand
and target customer groups by optimizing brand touch point through media channels such
as: Televisions ads, newspaper ads, public relations, brand activation, marketing events.
Building program of the brand (brand visibility) decorative objects by advertising in sales
channels, outdoor advertising signs as signboard, billboard. also occurs in a consistent
manner
4.2.3. People & Systems
This is a strategic group to show the basic spirit of modern governance that human
factors and system factors. People or Personnel is the most important factor in planning,
implementation and management business strategies towards building and maintain
relationships with customers and other stakeholders.
Process systems or professional apparatus to standardize operations as well as
enhance the competitiveness of enterprises. Thus through the marketing activities in the

recent past, in other words see through things, much less can we imagine the profession of
BeeLine Vietnam.
4.2.4. Philosophy Factor (Philosophy)
At the strategic level is the level of ideology, philosophy, culture in an organization,
including the factors of mission and vision of the business. Marketing first is a philosophy,
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an important component of corporate culture where all members must understand and
implement, its orientation in understanding the needs and satisfy customer needs. BeeLine
can do this with the idea of advertising impression through pictures of cute baby chicken,
accompanied by a message brought interesting philosophical "live on the bright side",
reflecting the friendly, funPop, youthful, modern and active life motto, very close to the
young. Since the first in the history of movie ads Vietnam's using computer graphics
techniques like high technology used in the animation genre, BeeLine has created characters
almost so real and vivid, with clear messages to convey a creative way so they occupy a
position in the ranking of 10 consumer TVC favorite!
It was found that BeeLine has been building and deploying applications 7P
marketing model and a comprehensive system, initially made a mark for target customers as
well as the positive reception from the market and community. We hope that BeeLine will
continue to expand coverage increasingly larger. Besides, should continuously improve
service quality and always bring new marketing activities, unique, creating attraction
between the BeeLine brand and customers in the coming time which are sources of
sustainable development and prosperity.
4.3. Overall Comments
Over 02 specific examples above, the general phase 02 companies including Toyota
and BeeLine are successful marketing of tangible products with traditional 4P model.
General meaning of the combination 4P is: A marketing strategy is built on the chassis 4P

will start on product policy. This is a reasonable for the most essential of a business is to
have a product or service to put on the market. After receiving the product, the manager will
start to calculate the tariff policy. After receiving the product, the manager will start to
calculate pricing policy. Pricing policies may affect the distribution system of
products. Finally, after determining the product distribution policy, the manager will decide
what type of advertising to promote the sale of products. All policies are built on targeting
the item tieu.Tren theory, if the enterprise can perform any one factor in any P 4P better
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opponent, the enterprises will have the advantage competition - Toyota 2P investment focus
is basic product strategy and pricing for different levels than its competitors, including
economic factors and better quality opponents - Customer results become more popular and
more successful
Toyota also recognized that if their products are presented to better opponent, they
can make a difference for their products while promoting it and attracted the attention of
customers. The key to the success of businesses in developing marketing strategies based on
the 4P framework that they must realize that customer is the focus, target market while the
focus 4P around it.
Conversely, even if your company has a good product but if you sell products at
prices that are not consistent (with target customers), customers buy hard to find or not easy
to find or buy your product (the role of distribution), few people know your product (the
role of media marketing), you would still likely fail in business product. Both companies are
02 to combine smoothly and successfully all four factors mentioned above.
However, for an enterprise current service provider as joint-stock company
communications services BeeLine.) then the 4P marketing is not enough, but must also
focus on the model 7P according to the characteristics of a services business.
Two in three strategic element are added such as people & process (P5 & P6) also be

adapted very well to analyze the factors management in 7P model. This is the second group
of elements within the company. Marketing Management should have creativity and
principled and a very good combination P5 role of individual as well as systems and process
management P6
P7 (Philosophy) is a business philosophy, including vision, mission, values and
corporate culture.If P7 is better applied to create a dynamic working environment, creativity
and consistency in strategic action. Services also feature "inseparable", ie the provision of
services often occurs simultaneously with the consumption of services. Thus, the role of
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human factors (people) are very important in providing services. In the case of company
BeeLine, the human element above is employees and customers, is the embodiment of
service quality of BeeLine. Customers with good or bad impression with the media services
company depends very much on their perception contact with the employees. This means
that service companies must be very focused on the recruitment and staff training,
especially those who frequent contact with customers.
III. CONCLUSION
From the analysis and evaluation of marketing model above, we see the need to
clearly distinguish the difference of the tangible product marketing and marketing services
in the service business is located is particularly important with the success of businesses,
marketing services is an aspect quite different from conventional products marketing. The
word "services" refers to the relationship of communication more personal.
Understood in a sense, marketing services is marketing of the promise, the promise
of enterprise will give consumers some specific benefits. Organization of marketing in
companies producing tangible products often apply traditional 4P model. This is the most
classic models in marketing, is the foundation of most of the strategies, solutions or
analyzing and evaluating marketing strategies for existing products. Use 4P to establish

policies on product, pricing, distribution systems and promote best direction.
In fact, with global market competition today, most companies are developing
tangible products coupled with service, so there 4P model has limitations when applied to
marketing services. This principle is quite constrained and is based on subjective
assumptions that customers always have the ability to recognize and express their needs in a
way beneficial to marketers. So many researchers and practitioners has taken the extended
model as model 7P. for strategic marketing services.
Model 7P added and overcome the above shortcomings and demonstrate the basic
spirit of modern management ensure that innovation and expand the traditional elements of
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marketing tangible products to suit business services, while implementing effective
elements: people, process services and services customers.
In the context of appear competitive markets about current trading of electricity,
customer needs change rapidly, the companies providing services and producing electricity
by EVN when application of strategic marketing services will be constantly concerned "7
character P" to ensure that their business the go on right way and achieving the best results,
can best serve the interests of business and customers on the current competitive market.

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REFERENCE
- Textbook "Marketing " - Master training programs internationally
- Textbooks "Marketing service" - Assoc. TS "Luu Van Nghiem"

- Slice "Marketing Management" - Dr. Dang Ngoc Dai
- Website: www.vnbrand.net/./ung-dung-mo-hinh-7p-phan-tich-chien-luoc
NOTES
- Peter Ferdinand Drucker (November 19, 1909 - November 11, 2005) is the world's
leading experts on management consulting. He is considered the father of the Management
of modern business, is the author of many popular management books, including books of
management challenges in the 21st century. His contributions are appreciated, the Financial
Times magazine voted him as one in four managers master of all time (along with Jack
Welch, Phillip Kotler and Bill Gates)
- E. Jerome McCarthy is an American, a marketing professor at Michigan State
University and other schools like the University of Notre Dame. He is the author of the
book affect the basic marketing.
- Toyota is the company produces the world's largest car is headquartered in Japan
- Vietnam, October 5, 2009: Altimo and Telenor, two major shareholders of
Vimpelcom Group, leading provider of telecommunication services in Eastern Europe and
Central Asia with the BeeLine brand has decided to merge the ownership of shares of
Vimpelcom and packages Kyisvstar into a new company called Ltd Vimpelcom. Ltd
Vimpelcom. will provide mobile communication services of high quality integrated in
Europe, Central Asia, as well as in Vietnam.
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