Principle of Marketing Assignment 1 BTEC Nguyen Huu Phong 2017

ASSIGNMENT 1 FRONT SHEET
Qualification

BTEC Level 5 HND Diploma in Business

Unit number and title

Unit 4: Principles of Marketing

Assignment due

Assignment submitted

Learner’s name

Nguyễn Hữu Phong

Assessor name

Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature

Date

Grading grid
P1.1 P1.2 M1

Assignment title

M2

M3

D1

D2

D3

The concept and process of marketing

1


In this assignment, you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.

Assessment criteria

Expected evidence

Task
no.

Assessor’s Feedback

LO1. Understand the concept and process of marketing

1.1 explain the various
elements of the marketing

process

Explain the marketing process and
key elements in the marketing
process which should include but
not limited by:

1

1.2 evaluate the benefits
and costs of a marketing
orientation for a selected
organisation

Explain marketing orientations
Identify which marketing
orientation followed by your
company and evaluate the
benefits and costs of your
company’s
marketing
orientation(s)

2

Assessment criteria

Expected Evidence

Feedback

(note on Merit/Distinction if applicable)
2


Merit descriptor No.1 (M1):
Identify and apply strategies to
find appropriate solution

Merit descriptor No.3 (M3):
Select/design and apply
appropriate methods/techniques.
In particular, you must present:

- Illustrate the marketing
process with suitable
examples from your
organization
- Effectively evaluate
whether the currently
followed marketing
orientation is appropriate
to your company
Relevant
theories
concerning
marketing
process and marketing
orientations have been
applied
- A wide range of resources

of information relating to
the
organization’s
marketing process and
marketing orientation has
been effectively used to
support your argument.

Merit descriptor No.3 (M3):
Present and communicate
appropriate findings:

- Clear assignment structure
with appropriate level of
academic English writing.
- A range of methods of
presentation have been
used effectively
3


- Marketing terminologies
are accurately used and
explained for nonmarketing background
audience.
- The assignment is written
with coherence and
consistence.
Distinction descriptor No.1 (D1):
Use critical reflection to evaluate

own work and justify valid
conclusion:

- Propose
recommendations for your
organization to improve its
marketing process.
- Provide appropriate
solutions for the
organization regarding to
the costs and benefits of its
marketing orientation

Distinction descriptor No.2 (D2):
Take responsibility for managing
and organizing activities

- An appropriate range of
research on the
organization marketing
process and marketing
orientation has been taken
place and supported your
ideas
- Sources of information are
correctly cited

Distinction descriptor No.3 (D3):
Demonstrate

- Generate your own ideas
on marketing process and
4


convergent/lateral/creative
thinking

marketing orientation
through the assignment
-Effectively self-evaluate
your own arguments when
analyzing and proposing
your recommendations on
the organization’s
marketing process and
marketing orientation
- Innovative and creative
thinking have been applied
to present your ideas and
appropriate
recommendations for the
organization’s marketing
process and marketing
orientation

5


Summative feedback

Assessor’s Signature
IV Grading Check:

Date
Comments if any:

Agree
Disagree

IV Signature

Modify grade to

Date

6


<ATTACHED EVIDENCE>


Contents
Introduction ………………………………………………………………………………...9
Part 1: The Marketing Process ……………………………………………………………11
Step 1: Understand Market Place and consumer needs and wants ………………..11
Step 2: Design a customer – driven marketing strategy …………………………...13
Step 3: Construct an integrated marketing program that deliver superior value …..15
Step 4: Build profitable relationships and create customer delight ………………..19
Step 5: Capture value from customers to create profits and customer equity ……...21

Part 2: The Marketing Orientation ………………………………………………………..22
References ………………………………………………………………………………...27

8


The world is growing rapidly every second, every minute. In just a short time with the
conservative old ways, the whirlwind of growth can kill a business even though it has the
big strength. Understand that, not just the business world in general but also the business in
Vietnam in particular, required to change and choose the correct direction to keep a foothold
in the market and expand the scale.
As a leading enterprise in the production of shoes in Vietnam, in more than 33 years
of establishment and development, through numerous ups and downs, Binh Tien limited
liability company producing consumer goods, also known by the familiar and trusted name
in the hearts of consumers in Vietnam is Biti's. Going through a difficult period in the
economy, Biti's has changed itself constantly, making new steps to beyond the core areas
and achieved a lot of success. It is a typical example, if conservatives continue unchanged,
do not look for new steps, not innovative and beyond the enterprise itself will be pushed
backwards in an era of rapidly growing speed.

9


Biti’s is a business is considered to be the oldest history of Vietnam in the footwear
industry. Was established in 1982 with two combinations of production is Van Thanh and
Binh Tien, along with 20 workers specializing in simple rubber shoes. Under the leadership
of Mr. Vuon Khai Thanh and Mrs. Lai Khiem, Biti's was going in the right direction and
become a solid brand in the shoe industry not only in Vietnam but also in the countries in
the region, especially in the Chinese market, a market that the majority of enterprises in
Vietnam are abandoning the lane.

Export market of Biti's (2015) – Source: Internet

10


Biti's currently has a product distribution system stretching from North to South with
07 branch Centre, 68 marketing Shop and more than 1,500 retail distribution intermediaries,
have created stable jobs for the more than 9,000 employees, with annual production of over
20 million pairs. In China, Biti's has established 4 representative offices, more than 300
points of sale in order to gradually bring Biti's products to dominate this market. Biti's has
exported over 40 countries of the world such as Italy, France, uk, USA, Russia, Japan, South
America, Mexican, Cambodia, .... In addition, Biti's is also the outsourcing partner of the
international famous brand as Decathlon, Clarks, Skechers, Speedo, Lotto, ...

Part 1: The Marketing Process
What is Marketing?
These factors directly to customers such as packaging, ads on the media, creating a
reputation for the brand, ...The people who work in the field of marketing to create because
the main goal is to distribute, sell the product and delivering it to the customer. All that is
known is the Marketing. Basic Marketing process is shown in a visual manner according to
the diagram below.

Source: Principles of Marketing (2012) – Kotler and Armstrong

Step 1: Understand Market Place and consumer needs and wants
What is the Market Place? Market Place is understood as a place for customers to
purchase products directly, or can also be the place where the actual products to
customers to experience and direct contact with the product. Shops, supermarkets are
examples what is Market Place. Market Place extension means there are many shops for

customers to conveniently exposed and easily buy directly product. That is why Biti's has
68 stores and more than 1,500 marketing intermediaries retail distribution in Vietnam
only. It also is part of Biti's access to the majority of consumers.
11


Biti’s Store – Source: Internet

According to Cotler (2012) stated that:"Market offerings are some combination of
products, services, information, or experiences offered to a market to satisfy a need or
want.". A product to a customer's hands need to accompany a variety of factors such as
product information, the service comes after the purchase as a warranty, paid constant
support, commitment to quality ... transporting a most convenient way to get customers.
Steve Jobs once said that: "We do not sell products to customers, we sell a great
experience." Gives customers a great product is not enough, brings satisfaction and
happiness to customers that is the objective that every business should aspire to.
In a way easy to understand is like this, consumers needs and consumers want are two
completely different things because it is two different ranks. For consumers need is the
basics that need to be brought to consumers, they need the things necessary for life and
survival such as clothing, food, ... According to Kotler and Armstrong (2012), it was
written that: "They include basic physical needs for food, clothing, warmth, and safety;
social needs for belonging and affection; and individual needs for knowledge and selfexpression.". Besides, what the customer wants is the things that feature high condition,
than the things they need. The things that customers want is not needed for survival but
gives them the feeling of comfort and satisfaction. For example here, a man like to eat a

12


plate of pasta to meet demand every day then that is what he needs because it's necessary
for life. However, for him, then he would like a big pasta accompanied by eggs, meat and

prepared to bring the delicious feeling as well as decorated beautifully, and it is these
higher condition that consumers want to be bring a sense of satisfaction and comfort.
Return to Biti's in a different example, if the Biti's customer previously just a durable
pair of shoes to go everyday in life, it is what their customers need and select Biti's.
However, the era of development as well as the lives of each person improve the customer
requires the products of Biti's external quality must also have more variety of designs,
trendy designs. That's what customers want advanced to Biti's.

Step 2: Design a customer – driven marketing strategy
2.1 Marketing management
According to Philip Kotler, “Marketing management is the analysis, planning,
implementation and control of programmes designed to bring about desired exchanges
with target markets for the purpose of achieving organisational objectives.". Due to
the increasing competition should improve and optimize the distribution process to
help reduce production costs to increase profits but still keep the price competitive
with rivals. Marketing management gradually became one of the most important parts
of a business and in business. To do that, a business needs to answer two important
questions: "What customers will we serve?" or also out in another way: "What’s our
target market?" and "How can we serve these customers best?"

2.2 Selecting customer to serve
A company must know what the customer object they will serve. Of course, the
leaders of companies know that they will not be served up all kinds of customers
because they make sure that they cannot serve all people. Instead, each company will
focus on a certain customer objects to do the best. To answer that question, people
who do Marketing management divide their clients into groups called Market
Segmentation, we can understand Market Segmentation that divide the market into
many parts then select the part that you have the ability to serve and best exploit. From
that they determined what the company's target market is and what the focus of
attraction and how satisfied the customers from that market, bring the best things for

the target market that they determine to be in the market segment. And we can
understand the Target Market is certain customer segment that the business towards,
13


or in other words, the target market is the market consists of all the potential customers
of the business. Then, they will analysis to find out the appropriate customer objects
with their business. For example, Zalo established in 2012 and the market
segmentation which they shaped right from the beginning was focused on the business
objects, the business, the retailer to become a social network for the trade, which is
why we see zalo not strong focus on web platforms that focus only on mobile
applications, as well as creating the most favorable conditions for those who do
business to advertise on Zalo. That is a segment that Zalo towards.

Source: Internet

That is more easily seen than in Biti's, segmentation of Biti's focus strongly on
customers who have intensity high shoes in the gym and go back every day, especially
the children, active students. To gain market share there, Biti's become the top choice
because of durability, factors helped Biti's always stood for 33 years. Besides selected
market segments right, every business need serving clients in the best way because
that is how friable retain customers, create a good relationship with customers. These
potential customers are not just customers who bought the product but also the ones
who will introduce the product to other. so to retain and acquire customers like that
should have a good customer service Best. And Biti's also done it, as evidenced during
the last 3 decades Vietnam, people have trusted for not only product quality but also
customer service. Biti's always supported their customers the most thoughtful before
14

and after purchasing the product. I have bought shoes of Biti's, it was a small error by
the manufacturer inside the shoes, I wear one week during error detection and I
brought Biti's warranty. With all devotion, Biti's has made me feel very happy and
changed the new shoes. One thing is for sure, I will always choose Biti's and they had
a potential customer.

2.3 Choosing a value proposition
A company must choose a value proposition as a commitment to customers,
their thoughts when mentioning the company's brand. It will differentiate and
position itself in the market place.
Businesses need to create for clients feel that they get "use value" than the cost
that they put out. Meanwhile, clients will not care much to price and businesses can
plan to higher prices for its products. Apple is a good example for this concept, the
Apple product is not only good but also brings to the luxury, a superficial appreciation
when customers use their product and of course the price of Apple products. For Biti's,
the slogan "cherish feet Vietnam" are people feel over the product, the cared for each
product as well as the quality and enduring product, creating peace of mind for
customers when using product.

Step 3: Construct an integrated marketing program that deliver superior
value

15


Source: Principles of Marketing (2012) – Kotler and Armstrong

Marketing-mix is understood to be the set of these Marketing methods can control
such as product, price, place, promotion, ... that the combined business used to create the
response required in the target market to achieve Marketing objectives.

Product is the combination "products and services" that business devoted to the target
markets include: quality, features, variety, brand, packaging, size (size), design, warranty,
... For instance, Samsung Galaxy S7 is a product that samsung used to toward the senior
market, so it come to these advanced features, the groundbreaking designs, top brand,
packaged in a classy way, good customer support services and warranty packages.
Price is the amount that the customers have to spend to get the product. Prices must
correspond to the value of items, otherwise the buyer will be looking to buy the other
manufacturers. For milk products from TH True Milk are produced from pure milk farm
and spent many purification processes milk helps bring many benefits to health. With
reasonable prices and quality, the TH True Milk is selected by the customer
16


Place includes various activities of the business to bring products to consumers that
businesses want to reach, such as determining the distribution channel, selection of
intermediaries, inventory, shipping, storage. The types of Biti's footwear distributed
through two payment methods is to buy products directly at the store or order online.
Thereby diversity in the distribution of Biti's products to the customer. Besides, Biti's also
had to choose the trusted intermediaries to ensure reasonable prices for the products.
Reserve quantities sufficient supply to customer demand.
Promotion means the communication activities of the value of products and convince
customers of target market to buy products. Promotion includes the activities of
advertising, direct sale, promotion, public relations. Oppo is a smartphone manufacturer
in China but when set foot in Vietnam market, Oppo has made reasonable and strongly
promotion progress. Specifically Oppo brings a strong focus on advertising the selfie
possibility that are very popular in the young. Besides Oppo also invited the most famous
singers in Vietnam to represent the product. In addition, the product also comes a lot of
incentives and promotions combined with strong communication on popular channels in
Vietnam. All of that has brought many customers to Oppo.

17


Some of Biti’s products – Source: Bitis.com.vn

We can see clearly the Marketing-mix of Biti’s. First, about the product, the product
of Biti’s has always known about the durability and it was confirmed by the customers in
Viet Nam. Durability accompanied feeling comfortable to help create a top choice for
Vietnamese people. Besides durability, Biti's is always growing more in design, style, ...
to enrich more than items of Biti’s. Second, about the price, Biti's has done very well in
the pricing of its products, due to the target market of Biti's in Vietnam, so the application
of high prices will be a barrier for most everyone, particularly especially pupils and
students. On Biti's website, we can easily see the prices of Biti's products agitated under
500,000 VND, an affordable price for Vietnamese people. Recently, Biti’s also launched
the Hunter sports shoes to compete with the Giants Nike, Adidas, ... However, the price
is only 650,000 VND stopped .. The quality and reasonable price are reasons why
Vietnamese people always choose Biti's, especially customers in the target market of

18


Biti's. Next, on the place, as the example above, Biti’s has many modes of distribution of
products to the customer in the best way as direct distribution in the store and through the
intermediary agent or order online and pay at home. With a distribution system consisting
of hundreds of stores stretches from North to South, stable source of Biti's always fully
meet the needs of customers. Finally, about the promotion. Biti’s has built customer care
service as the promotions, consultants support customers are made to take advantage of
the customer; strong product promotion on Facebook, investing in the construction of the
distribution center in the direction of more advanced and professional.

Step 4: Build profitable relationships and create customer delight
According to Cotler (2012) stated that: “Customer relationship management is the
overall process of building and maintaining profitable customer relationships by
delivering superior customer value and satisfaction.”
Biti's has built a sustainable customer relationship throughout 33 years and they have
been the trust as well as the top choice of a generation ahead. Up to now, the world is
growing strongly and the young are reaching up, a dynamic young generation is the future
of the country, are the new customers that Biti's needs to focus on building customer
relationship. Biti's from a veteran brand spectacularly transformed itself to the youth not
only domestically but also abroad, typical of the change that is to launch the Hunter
product line. Hunter is the next step of Biti's to shape the brand in the heart of the young.
Biti's has invested to improve the design, at the same time rejuvenating activities to youth
customer segment. The results are from the beginning of the year, on the social network,
young people in general and in particular footwear believers constantly stir about Biti's
Hunter. Biti's has invested 5 million dollars to produce domestic Hunter line. This shows
the continuous efforts of Biti's in high quality construction and customer relationships,
especially the younger generation to the next. By organizing several events at major
universities in Hanoi and Ho Chi Minh City has attracted the enthusiastic participation of
the majority of Vietnamese hot teen, collected information from people to help Biti's is
always on track and bring the best products to customers. Biti's is close chemistry, brand
rejuvenation and leave a good impression with pride in the hearts of Vietnamese.

19


Biti’s Hunter – Source: Internet

In addition, in this section we have added two more concepts that Kotler (2012)
mentions, that are: “Customer satisfaction is the extent to which a product’s perceived
performance matches a buyer’s expectations.” and “Customer- perceived value is the

difference between total customer value and total customer cost.”
A more understandable way, the satisfaction of customers based on what the product
brings compared to the expectations of the customer. If the customer's expectations are
high that what the products do not meet expectations, customers will be disappointed.
And conversely, what the product brings to pass the client's expectations, they will be
very happy. And customer - perceived value is the difference between the benefits
customers receive in comparison to those values that the client spent under rating of
customers
Once again we return to Biti's, throughout the years, the domestic customers want to
buy sports shoes, they always have the choice from Nike, Adidas, Converse, ... the desire
of customers to have a Vietnamese brand producing sports shoes with better appearance,
but a reasonable price, and Biti's Hunter was born to meet the customer's expectations,
leading to Customer satisfaction of Biti's highly. Besides, the customers feel with the
value that they dropped out for Biti's Hunter is worthy of what Hunter would bring, so
customer-perceived value of Biti's also are rising.

20


Step 5: Capture value from customers to create profits and customer
equity
According to Kotler (2012) stated that: “Customer lifetime value is the value of the
entire stream of purchases that the customer would make over a lifetime of patronage.”
To understand that we try to do a calculation as follows, we default to a client of Biti's
buy 2 pairs of shoes a year and in 60 years, that person will buy 120 pairs of shoes, the
average per pair of shoes is 500,000 VND then we can calculate the amount of people
that used to buy shoes is 500,000 x 120 = 60,000,000 VND. So Customer lifetime value
for Biti's of one person is of 60 million VND. Due to the financial reports of Biti's was
not revealed, so we do not have the specific figures of Biti's revenue in the last year but
with the support of the consumers for Biti's, we can guess customer lifetime value of Biti's

is very high.
“Share of customer is the portion of the customer’s purchasing that a company gets
in its product categories.” (Kotler, 2012)
Share of Customer can be understood simply as follows, for example, 5 people were
awarded large cake, then that cake is divided into five parts, each person will be a part,
the part that is the market share of that person in the entire cake. When Biti's
transformation by focusing on youth with Biti's Hunter, in the sports shoe market Biti's
would face so many other giants such as Nike, Adidas, Vans, .... Because Biti's just landed
in this market. Biti's Hunter still occupies a very small market share. However, with the
support of customers and the continual development of Biti's for this product line, Biti's
still able to be optimistic about the market share of Biti's Hunter will be extended.

And finally we came up with the definition of Customer Equity. So what is it? In
Principles of Marketing (2012), Cotler has referred to: "Customer equity is the total
combined customer lifetime values of all of the company's customers."

21


By Biti's business figures in recent years are not widely published, so we consider
temporarily through the dataset in 2013, in the client and production operations, business
in 2013. According to Mr. Duong Hung, Deputy General Director of Biti's in 2013, Biti's
continued steady growth, achieving sales of more than 2,000 billion VND. Since then, the
profits generated are not small and we can see how Biti's has been successful. Thereby,
customer equity of Biti's is very high over the years.

Part 2: The marketing orientation

Kotler (2012)

“Production concept is the idea that consumers will favor products that are available
or highly affordable.” (Kotler, 2012). The specific in production concept, we will focus on
the products that when customers need and want to buy the products that are available to
respond to the client with an affordable price. Return to Biti's with Biti's Hunter product line,
there have been long time Biti's Hunter became a phenomenon among young people and the
youth hunt for all templates.Biti's probably should have known that increase production
earlier to the launch, any customers who want to own Biti's Hunter can be bought at the store
with reasonable prices. Biti's has really done well in securing sources of goods to customers
whenever customers need to buy the product. However, Biti's should improve technologies
to produce products faster and save production costs and reduce product cost.

22


Production line of Biti’s – Source: Internet

According to Kotler (2012) confirmed that: “Product concept is the idea that
consumers will favor products that offer the most quality, performance, and features.
Organization should therefore devote its energy to making continuous product
improvements.”. The customer always requires the best products, many features, luxury,
breakthrough and advanced. Understand that, businesses are always the focus on research
and development, continuous product innovation to bring new things to clients. Quality of
life improve, especially the young customer always requires the product to be designed
beautifully and personalities, trendy. Biti's also understand that, they know that the durability
and comfort of the product is not enough for them to continue to stand firmly in the hearts
of customers forever. Biti's has invested very heavily in research, product development,
constantly to bring the more advanced product line more breakthroughs, to meet the
increasing demand of the customers. In addition, besides research and product innovation,
enterprises also need to listen to customers, improve the product to best suit the customer.

23


In the book priciples of marketing, Kotler (2012) made it very clear about Selling
concept that: “Selling concept is the idea that consumers will not buy enough of the firm’s
products unless it undertakes a large scale selling and promotion effort.”. In this concept,
this particular problem is the enterprises want to sell their products as much as possible, so
the enterprises has progressed efficiently operating introduction, persuading customers to
purchase its products by introducing and promoting the product to the customer. In this
example we will not talk about Biti's that will talk about a few companies specializing in the
manufacture of shampoo, they want to sell their products in bulk as possible, so they
conducted measures to boost sales as mobilizing employees to each customer's home to
introduce their products and donate the products to try. This helps clients focus more on the
company's products and help the company sell more products.
“Marketing concept is the idea that achieving organizational goals depends on
knowing the needs and wants of the target markets and delivering the desired satisfactions
better than competitors do.” (Kotler, 2012). This is a very easy concept to understand that
almost all companies use, this concept is specifically talking about the business always like
to collect customer information to improve the products and product development tailored
to the needs of customers as well as create the difference compared with rivals. That is the
reason why the enterprise not only in Vietnam but also in the world spend a lot of money for
the collection of customer data for the purpose of improving the products and promote the
brand, new product to the customers correctly. Understanding the customer's tastes, needs,
opinions and wishes of the customer and then devise strategies, new steps to build customer
relationships. That is exactly the goal which this concept towards. Biti's also do that, they
hold many events, the product rollout, exchanging and receiving suggestions from customers
to improve the product even more. When launching Biti's Hunter, Biti's has organized the
event at the university in Ho Chi Minh City and Hanoi with the aim not only advertise
products to the target customers but also collect information to the next generation of Biti's
Hunter increasingly more complete and satisfying customer expectations.

24


Activities discuss about Biti's Hunter on social media - Source: Brandsvietnam

“Societal marketing concept is the idea that a company should make good marketing
decisions by considering consumers’ wants, the company’s requirements, consumers’ longterm interests, and society’s long-run interests.” (Kotler, 2012). Societal Marketing Concept
is understood as the rain repellent long beams, support good experience in the palm of the
potential customers for brand, helping them more sympathetic than other traditional
Marketing methods such as advertising. Through it, they also strengthen the social
responsibility of the companies to build the foundations for sustainable development.
Besides promoting the product, enterprise want to promote its image in the eyes of customers
through the operation of social responsibility and the environment. Create a trust and a
beautiful image of the brand in the heart of the customer. Biti's with many social activities
and humanities has consolidated more firmly on a Vietnamese brand is widely trusted.
Typical activities that Biti's offer are: Contributions building stones of Changsha, February

25