(Luận văn thạc sĩ) một số giải pháp hoàn thiện marketing mix cho dòng sản phẩm TV LCD bravia của công ty sony việt nam năm 2012

VIETNAM NATIONAL UNIVERSITY, HANOI
SCHOOL OF BUSINESS

VU XUAN TUNG

SOME SOLUTIONS TO COMPLETE THE
MARKETING-MIX FOR BRAVIA LCD TV SERIES
OF SONY VIETNAM IN 2012
Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisor: Dr. Tran Doan Kim

Hanoi – 2012


ACKNOWLEGEMENT

First of all, I would like to express my deepest appreciation to my supervisor,
Dr. Tran Doan Kim, who has supported my dissertation from the beginning till the
end, encouraging me whenever I have had difficulties, whether from clarifying
research objectives, building the literature review, finding effective methods to
answer the research questions, data analysis to the final writing up of the
dissertation. Without his guidance and persistent help this dissertation would not
have been possible.
In addition, I would like to thank to my friends who helped me to send the
questionnaires for the customer survey of this dissertation.
I also extend my thanks to HSB library staffs for showing me how to access
different and useful sources to gather secondary data for the literature review

chapter.
Last but not least, I would like to take this opportunity to thank my family
who supported and encouraged me during the time I took my MBA program at
HSB.

i


ABSTRACT
SOME SOLUTIONS TO COMPLETE THE MARKETING-MIX FOR
BRAVIA LCD TV SERIES OF SONY VIETNAM IN 2012
VU XUAN TUNG
MBA candidate, 2009 - 2011
School of Business
Vietnam National University, Ha Noi
Supervisor: Dr. Tran Doan Kim
July 2012, 102 pages

In recent years, the TV market in general and hi-tech TV market in particular
become very hot due to the appearance of a number of new TVs, including LCD
TVs of famous brands such as Samsung, Panasonic, Sony, Sharp, and LG, etc.
Initially, LCD TVs was imported into Vietnam by electronic manufactures with the
purpose of introducing hi-technology and setting themselves apart from
competitors.
However, after a short period, this line of products gained consumers'
attention and made significant in roads into the TV market in Vietnam. LCD TV
now makes up nearly a quarter of the market and demonstrates its advantages over
other technical products thanks to its superior bandwidth than other TV
technologies and its reasonable price for most consumers.
Historically, a TV using cathode ray tube was considered the most famous

technology to give an ideal picture in terms of color, image and wide view angle.
Most important of all was affordable its price for most customers. However, It had
two weaknesses: its weight and its bulks, which limited its size to 36" display larger
than this was impractical.

ii


The main advantage of LCD TV is its "model" body. The thickness of a 40"
LCD display is only about 10 cm while an ordinary 21" CRT display is five times
as thick as an LCD, so, an LCD will take up less space. LCD display is also
recognized to not cause eyestrain or electromagnetic radiation like traditional CRT
displays.
Another advantage is its resolution. In the era of high resolution HDTV, high
definition (at least 1,280 x 720 pixels) is a necessary requirement. Most LCD TVs
in the market have resolutions of 1,366 x 768 pixels or higher.
Moreover, there are more products of 2 million pixel, or Full-HD, Display
(resolution up to 1,920 x 1,080 pixels) in the market. Together with high resolution,
each LCD TV also provides 2-3 high-definition HDMI ports to connect to
appropriate source components such as a Blu-ray disk player, HDTV decoder, or
next-generation play station.
To take over a quarter of the cake of the TV market in Vietnam, branded
electronic manufactures as Samsung, Sony, Panasonic or LG, etc… are applying
their own strategies. For this large segment, Samsung seems to have an advantage
since its products have reasonable prices with high quality.
In contrast, Bravia LCD TV series of Sony Vietnam is now facing with
tough competition from other TV manufacturers. Therefore, in this dissertation, the
author will discuss the Marketing environment for Bravia TVs of Sony Vietnam as
well as the marketing-mix being adopted by the Company with the purpose of
identifying existing weaknesses and recommending solutions to improve marketingmix for this product line, so that it may compete more effectively with other

products in LCD TV market in Vietnam in 2012.

iii


TĨM TẮT
MỘT SỐ GIẢI PHÁP ĐỂ HỒN THIỆN MARKETING HỖN HỢP CHO
DÕNG SẢN PHẨM TIVI LCD BRAVIA CỦA CÔNG TY SONY VIETNAM
NĂM 2012
Vũ Xuân Tùng
Học viên MBA, 2009 – 2011
Khoa Quản trị kinh doanh, Đại học Quốc gia Hà Nội
Giảng viên hướng dẫn: Tiến sĩ Trần Đoàn Kim
Tháng 07/2012, 102 trang

Trong những năm gần đây thị trường tivi nói chung và thị trường tivi cơng
nghệ cao nói riêng đang trở nên rất nóng do sự xuất hiện của nhiều chủng loại tivi
mới, bao gồm tivi sử dụng công nghệ LCD của các thương hiệu có tên tuổi như
Samsung, Panasonic, Sony, Sharp và LG. Ban đầu tivi LCD được nhập khẩu vào
Việt Nam với mục đích giới thiệu cơng nghệ mới và chứng minh thế mạnh của các
hãng sản xuất tivi.
Tuy nhiên sau một thời gian ngắn những sản phẩm này đã được người tiêu
dùng chú ý đến và đã thành công trong việc xâm nhập được vào thị trường Việt
Nam. Sản phẩm tivi LCD bây giờ đã chiếm lĩnh một phần tư thị trường và đã chứng
tỏ được lợi thế về cơng nghệ nhờ có bâng thơng rộng hơn và có giá cả hợp lý hơn
cho phần lớn khách hàng với các sản phẩm tivi sử dụng công nghệ khác.
Trước kia tivi bóng đèn hình được biết đến nhiều do sử dụng cơng nghệ cho
chất lượng hình ảnh lý tưởng về màu sắc, hình ảnh và góc nhìn rộng. Quan trọng
hơn cả, giá thành của nó phải chăng so với đại đa số người tiêu dùng. Tuy nhiên tivi
sử dụng công nghệ này sớm bộc lộ hai điểm yếu: ngoại hình cồng kềnh cùng với

màn hình khơng thể lớn hơn 36 inch vì chúng quá nặng.

iv


Lợi thế của tivi LCD là độ mỏng của ngoại hình. Phần dày nhất của màn
hình tivi 40 inch chỉ khoảng 10 cm trong khi màn hình CRT 21 inch có độ dày gấp
năm lần độ dày của tivi LCD do đó tivi LCD sẽ tiết kiệm nhiều diện tích hơn. Màn
hình tivi LCD cũng được cơng nhận là khơng gây đau hay mỏi mắt cho người xem
so với màn hình CRT truyền thống.
Một lợi thế nữa chính là độ phân giải của màn hình. Trong kỷ nguyên truyền
hình số sử dụng công nghệ HD cho độ phân giải cao (tối thiểu 1,280x720 điểm ảnh)
là yêu cầu bắt buộc. Phần lớn các tivi LCD trên thị trường đều có từ 1,366x768
điểm ảnh hay cao hơn thế nữa.
Tuy nhiên, hiện nay trên thị trường có rất nhiều các sản phẩm lên tới hai triệu
điểm ảnh hay được gọi là full-HD, màn hình với độ phân giải lên tới 1,920x1,080
điểm ảnh. Cùng với độ phân giải cao, mỗi một tivi LCD cũng đều tích hợp 2 đến 3
cổng kết nối HDMI để kết nối với các thiệt bị số khác như đầu đĩa Bluray, máy
quay HDMI hay các thế hệ máy điện tử cầm tay mới.
Để có thể chiếm một phần tư miếng bánh trên thị trường tivi Việt Nam, các
hãng sản xuất tivi tên tuổi như Samsung, Sony, Panasonic hay LG... đều áp dụng
những chiến lược riêng của họ. Trên phân khúc này Samsung dường như đang
chiếm ưu thế do sản phẩm của hang có thiết kế bắt mắt với giá thành hợp lý.
Ngược lại, sản phẩm tivi LCD Bravia của Sony đang phải cạnh tranh khốc
liệt với các hãng sản xuất khác. Do đó, trong bài luận văn này, tác giả sẽ phân tích
mơi trường Marketing của sản phẩm tivi LCD Bravia của công ty Sony Việt Nam
cùng với chiến lược Marketing hỗn hợp mà công ty đang áp dụng để từ đó nhận
diện ra những điểm yếu đang tồn tại và đề xuất giải pháp để hoàn thiện chiến lược
Marketing hỗn hợp cho dòng sản phẩm này và hi vọng sẽ cạnh tranh hiệu quả với
các sản phẩm cùng loại của các nhà sản xuất tivi khác trong năm 2012.

v


TABLE OF CONTENTS
Hanoi – 2012 ............................................................................................................... i
ACKNOWLEGEMENT ............................................................................................. i
ABSTRACT ............................................................................................................... ii
TÓM TẮT ................................................................................................................. iv
TABLE OF CONTENTS .......................................................................................... vi
TABLE OF FIGURES ................................................................................................x
INTRODUCTION.......................................................................................................1
1. Reasons to choose this topic ................................................................................1
2. Objectives of the Study ........................................................................................1
3. Subjects and Scope of the Study..........................................................................2
4. Methods of study and process of data .................................................................2
5. Significance of the Topic: ....................................................................................2
6. Structure of the Thesis: ........................................................................................3
CHAPTER 1: LITERATURE REVIEW ....................................................................4
1.1. Overview of Marketing.....................................................................................4
1.1.1. The Formation and Development of Marketing .........................................4
1.1.2. Definitions of Marketing ............................................................................5
1.1.3. Concepts of Marketing ...............................................................................7
1.1.4. Role of Marketing ......................................................................................8
1.2. Marketing Environment ....................................................................................8
1.2.1 Political and legal environment ...................................................................9
1.2.2 Economic and Demographic environment ................................................10
1.2.3 Cultural - Social environment ...................................................................11

vi

1.2.4 Technological and Natural environment ...................................................11
1.3. Target Market Identification ...........................................................................12
1.3.1. Concept of market: ...................................................................................12
1.3.2. Market Classification ...............................................................................12
1.4. Positioning ......................................................................................................14
1.4.1. Definitions ................................................................................................15
1.4.2. Positioning methods .................................................................................16
1.4.3. Stages of market positioning: ...................................................................17
1.5. Marketing-mix ................................................................................................17
1.5.1. Product strategy ........................................................................................18
1.5.2. Price strategy ............................................................................................19
1.5.3. Place (distribution) strategy .....................................................................21
1.5.4. Promotion strategy ...................................................................................22
1.6. The relationships between product and other remaining factors of Marketingmix: ........................................................................................................................26
Chapter 2: ANALYSIS OF MARKETING ENVIRONMENT AND CURRENT
SITUATION OF MARKETING-MIX FOR BRAVIA LCD TV SERIES OF SONY
VIETNAM ................................................................................................................28
2.1. General introduction of Sony Vietnam ...........................................................28
2.1.1. Overview of the Company .......................................................................28
2.1.2. Objectives and Purposes of the Company ................................................28
2.1.3. Main products of the Company ................................................................29
2.1.4. Activities and Sale performance of Bravia LCD TV Series ....................29
2.2. Target markets of Sony Vietnam: ...................................................................31
2.3. Analysis of Marketing environment of Sony Vietnam ...................................32

vii

2.3.1. Macro-environment ..................................................................................32
2.3.2. Micro-environment...................................................................................35
2.4. Analysis of product positioning strategy of Bravia LCD TV: .......................41
2.5. Analysis of current situation of Marketing-mix for Bravia LCD TV Series of
Sony Vietnam: .......................................................................................................46
2.5.1. Product......................................................................................................49
2.5.2. Price ..........................................................................................................50
2.5.3. Distribution ...............................................................................................52
2.5.4. Promotion .................................................................................................57
Chapter 3: SOME SOLUTIONS TO THE MARKETING MIX PLAN FOR
BRAVIA LCD TV SERIES OF SONY VIETNAM IN 2012 ..................................62
3.1. Development orientations and objectives of Sony Vietnam ..........................62
3.1.1. Development orientations: .......................................................................62
3.1.2. Marketing objectives of Sony Vietnam ....................................................62
3.2. Some solutions of Marketing-mix plan for Bravia LCD TV Series of Sony
Vietnam..................................................................................................................63
3.2.1. Product: ....................................................................................................63
3.2.2. Price: .........................................................................................................65
3.2.3. Place/Distribution: ....................................................................................68
3.2.4. Promotion .................................................................................................71
3.2.5. Some support measures: ...........................................................................75
3.3. Marketing Action Plan from June to December, 2012 ...................................76
3.3.1. Objectives .................................................................................................76
3.3.2. Sales Activities .........................................................................................76
3.3.3. Promotional program................................................................................78

viii


3.3.4. Marketing Budget .....................................................................................83

CONCLUSION .........................................................................................................88
LIST OF REFERENCES ..........................................................................................89
LIST OF APPENDICES ...........................................................................................90

ix


TABLE OF FIGURES

FIGURE 1FIGURE 2.1: MARKET SHARE BY PRODUCTION OF SOME TV FIRMS IN VIETNAM ..................... 30
FIGURE 2FIGURE 2.2: MARKET SHARE BY REVENUE OF SOME TV FIRMS IN VIETNAM ............................ 31
FIGURE 3FIGURE 2.3: CONSUMPTION MARKETS OF SONY IN VIENTAM ....................................................... 32
FIGURE 4FIGURE 2.4: CURRENT DISTRIBUTION NETWORK OF SONY VIETNAM ......................................... 55
FIGURE 5FIGURE 3.1: PROPOSED DISTRIBUTION SYSTEM IN THE FUTURE .................................................. 71

x


INTRODUCTION
1. Reasons to choose this topic
LCD TV is a product that has captured the attention of customers in an era of
continuous development of technology, repeated competition among different
manufactures. By developing ranges of appealing designs, LCD TV has become
more attractive than other TV products, satisfying the increasing demands of the
market. Faced with consumer demands and integration into the global technology
revolution, such famous brand names as Samsung, Sony, Panasonic, LG, etc. have
introduced exclusive lines of products besides traditional ones, for example, a FullHD TV with multi-function, super-slim, super-connection, super-fast and
environmentally-friendly features.
Acknowledging this fact, Sony Vietnam introduced its Bravia LCD TV
series and considered this to be the strategic product line of the Company...

However, for Bravia LCD TV series to compete with TV products of other major
manufacturers in Vietnam market such as Samsung, LG, etc., it is necessary for the
company to have an overall vision of the marketing environment for its Bravia LCD
TV series, on the basis of which, solutions can be made to direct its Marketing
strategy and enhance business performance of this strategic product line. This is
also the reason why the author decide to carry out the dissertation: "Some solutions
to complete the Marketing-mix for Bravia LCD TV series of Sony Vietnam in
2012".
2. Objectives of the Study
-

To conduct a comprehensive study of the theories on Marketing,

Marketing mix and methods to develop Marketing mix strategy for a product;
-

To research about TV market in general and LCD TV market in

particular, both globally and in Vietnam;
-

To analyze current situation and evaluate Marketing strategy of

Bravia LCD TV series of Sony Electronics Vietnam;

1


-

To suggest some solutions to complete the strategy of marketing mix

for Bravia LCD TV series of Sony Electronics Vietnam.
3. Subjects and Scope of the Study
Bravia LCD TV Series and Marketing environments (internal and external of
Sony Vietnam).
4. Methods of study and process of data
-

Methods of study: quantitative and qualitative study in combination

with expert method, summary, statistics, comparison method, etc.
-

Interview method: direct interview over 300 respondents with a

questionnaire by selective sampling method to identify consumers' opinions on
factors that affect on Marketing mix strategy (product, price, place, and promotion).
-

Data processing tool: SPSS 13.0 software.

-

Base on data collected from quantitative and qualitative study,

solutions shall be suggested to complete Marketing mix strategy for Bravia LCD
TV Series of Sony Electronics Vietnam.
5. Significance of the Topic:
-

Help the managers to see clearly Marketing operation of Bravia LCD

TV Series of the Company, its ability to cope with internal and external influencing
factors, and its competitive status compared to other rivals in the market;
-

Research about consumers' knowledge about various types of TVs

and assess their opinion on factors affecting on Marketing mix for Bravia LCD TV
Series of the Company;
-

The conclusions of the dissertation shall serve as reference materials

for marketing managers to know and understand better about current situation of
LCD TV market as well as the positioning of Bravia LCD Series of Sony Vietnam.
In addition, strategies of product, price, place and promotion for Bravia LCD TV

2


Series as suggested are practical for business situation that of Bravia LCD TV
Series now occupies.
6. Structure of the Thesis:
In addition to the Introduction and Conclusion parts, the Thesis is consisted
of three parts:
Chapter 1: Literature review
Chapter 2: Analysis of Marketing environment and current situation of
Marketing-mix for Bravia LCD TV Series of Sony Vietnam

Chapter 3: Some solutions to the Marketing-mix for Bravia LCD TV Series
of Sony Vietnam in 2012

3


CHAPTER 1: LITERATURE REVIEW
1.1. Overview of Marketing
1.1.1. The Formation and Development of Marketing
Marketing literally means, "doing the market". The concept of Marketing
first appeared in America in the beginning of 20th century but was not widely
developed and popular until after World War II, then, it spreads to Western Europe
and Japan during 1950-1960. Since its first appearance and for a long time, the term
"Marketing" was limited to only commercial business. It was recognized as getting
the ready-made products/services to be consumed quickly in order to achieve the
best efficiency. At that time, it was called "traditional marketing".
During 1960 - 1970, from the most complex matters in production and
consumption of goods as well as tough competition within capitalist market, the
role and significance of Marketing in capitalist economic management was
heightened. During this period, a number of scientific research institutions,
Marketing research centers, and advisory offices within enterprises were established
and Marketing became the decisive factor in management and competition among
capitalists. The term was not limited to only sale and purchase contracts or readymade products/services, but expanded to embrace the mass market. That was the era
of modern Marketing, inclusive of every calculation regarding the objectives and
strategic ideas before production, to sales and consumption, and until after-sale
services.
From 1960, Marketing started to gain acceptance in East European socialist
countries such as: Hungary, Poland, Romania, and Czechoslovakia. In 11/1976, the
international conference - "Marketing Application in Foreign Trade Activities and
Socialist Nations" was held in Berlin. In 1977, it was affirmed by members at this

conference that marketing activities applied not only to capitalist countries but to
socialist countries as well.

4


1.1.2. Definitions of Marketing
The concept of Marketing, as an activity to generate economic benefits on
many aspects, has been continuously applied, developed and completed since its
first appearance, in 1905 at the University of Pennsylvania (U.S.), when Mr. W. E.
Kreussi gave a series of lectures on Marketing.
Marketing, in the view of economists, is the business approach that
orientates production towards satisfying consumer needs. Hence, it has been a
decisive influence on the development of capitalist economies. They assign to
Marketing such names as "New business philosophy", "The secret of success in
business", etc. And Marketing is considered a science, an art of business. It never
ceases to be useful and has been supplemented and developed constantly; therefore,
there have been a number of definitions of Marketing by various authors and
scientists:
- Definition by Hamilton College (U.S.): “Marketing is the performance
of business activities that direct the flow of goods and services to customers or
users.”[1]
- Definition by American Marketing Association (AMA), Board of
Directors: “Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.”[2]
- Definition by Philip Kotler (U.S.) - President of World Marketing
Association: “Marketing is the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit. Marketing
identifies unfulfilled needs and desires. It defines measures and quantifies the size

of the identified market and the profit potential. It pinpoints which segments the
company is capable of serving best and it designs and promotes the appropriate
products and services.”[3]

5


- Definition by British Institute of Marketing (U.K.):“Marketing is the
management process responsible for identifying, anticipating and satisfying
customer requirements profitably.”[4]
- Definition by John H. Crighton (Australia): “Marketing is getting the
right goods and services to the right people at the right place at the right time at the
right price with the right communication and promotion” [5]
- Definition by Peter Drucker – the American modern economists:
“Marketing is the distinguishing, the unique function of the business. It
encompasses the entire business. It is the whole business seen from the point of
view of its final result that is from the customer's point of view. Concern and
responsibility for marketing must therefore permeate all areas of the enterprise.”[6]
From above definitions, it can be seen that there are many diversified ways
of understanding about Marketing. Two first definitions are suitable for traditional
marketing while other definitions are suitable for modern marketing. However, each
definition is correct for its point in time only. Therefore, it is not necessary to have a
common definition of Marketing. A single definition may limit the diversity and
dynamics of marketing activities in practice.
The differences between traditional and modern Marketing are shown in the
following diagram:
Objective
Traditional
Marketing

Modern
Marketing

Product

Satisfy
customer’s
needs

Means

Sales & Advertising

Adopt comprehensive
Marketing strategies

6

Result
Generate

profit

by

selling many products
Generate
satisfying
needs

profit

by

customer


1.1.3. Concepts of Marketing
During the development of Marketing, there have been 5 fundamental
concepts of how to organize Marketing activities, specifically as follows:


Production concept:

It is considered that customers will feel attracted to those products that are
popularly sold at reasonable prices. Therefore, management should focus efforts on
improving effective production and distribution.


Product concept:

It is considered that customers like to use products that have the highest
quality and the best utilities. Therefore, enterprises should frequently innovate their
products.


Sale concept:

It is considered that customers will not buy many products of an enterprise if
it doesn't spend regular efforts on sales and promotion.



Marketing concept:

It is considered that the key to achieve objectives of an enterprise is to
identify the needs of target market and satisfy customer’s needs to the maximum
extent and more effectively than those of rivals.


Social Marketing concept:

It is considered that activities of an enterprise is to identify the needs, desire
and preferences of target market and take measures to satisfy such customer’s needs
more effectively than the rivals do and in such a manner to maintain and promote
benefits for consumers and society.
In my opinion, currently, most enterprises, even small-scale ones, have
considered the change of Marketing concepts. Therefore, to various extents, they
have applied the concepts of modern Marketing to their business, trying to
understand and listen to customer’s needs to modify their products for sales.

7


However, in order to survive and develop in a sustainable and long-lasting
manner, enterprises should apply social Marketing concept in their business process
while considering supported activities to help maintain and promote benefits for
consumers and society. For example, companies may research technologies to
create products that are better for users' health, make commitments regarding the
use of parts, chemicals or technologies that are harmful to living environment, and
carry out activities to preserve and build up a green and clean environment, etc.

1.1.4. Role of Marketing
Marketing plays a very important role in business. It guides and coordinates
the operating activities of a company. Thanks to Marketing, decisions made during
the course of business are based on more scientific and reliable grounds, with
companies capturing sufficient information to know how to satisfy customer needs.
A product is attractive since it has useful features that are always innovated,
updated or improved to satisfy diversified and changing needs of consumers.
Marketing is also helpful in adapting a product to market needs. It promotes
research and development activities. It doesn't involve any technical operations,
however, producers base on its research to answer the questions such as "what to
produce," "how to produce," "how many to produce," and "when to introduce to the
market".
Marketing has delivered success for many companies. So, it has been praised
as "new theory of business", "theory of market take-over", "behaving etiquette in
modern business", "golden key", "secret of success in business", etc.
1.2. Marketing Environment
Marketing environment is the total of "uncontrollable" forces that a company
should pay attention to in developing its marketing-mix. Marketing environment is
understood as follows:

8


The set of active entities and external forces of the company that affect on
the control of marketing unit, establishment and maintenance of good cooperative
relationships with target customers.
Given the uncertain climate, Marketing can have a deep influence on
operations of a company. Because the changes of current environment are rapid and
unforeseeable, they may cause sudden impact and result in severe consequences.
Therefore, a company should monitor and anticipate every change of this

environment by applying marketing research and collecting marketing information
from current external environment of the company.
Marketing environment consists of micro and macro-environment. Microenvironment includes forces that are directly related to a company and its ability to
serve the customers, including suppliers, marketing agencies, customers,
competitors and direct public. Macro-environment is external forces on social,
much broader scale that have influences, including demography, economy, natural
condition, technology, politics and culture.
The Marketing environment may be analyzed under PEST model, which
comprises the following factors: Political-legal, Economic, Social, Technological
and Natural factors (or environments). In order to succeed, enterprises must be able
to adapt to the changing Marketing environment while not resisting those trends [4].
1.2.1 Political and legal environment
Government, interested parties (in some other countries), public interest
protection groups, etc. are those affecting the political environment, which, in turn,
cause policy makers to enact new laws and regulations impacting on consumers and
enterprises. These enacted laws, directly or indirectly, influence the practical
implementation of marketing policies of a company, such as: anti-monopoly law,
environment law, consumer protection law, etc.
Enterprises pay attention to legal and political environment of not only a
single country but also on global scale, such as: multilateral/bilateral agreements

9


between organizations, regions and nations, international treaties such as WTO
agreement, free trade area agreements, trade and investment agreements, etc.
1.2.2 Economic and Demographic environment
Factors of economic environment affecting Marketing activities include
income and distribution of income, price, consumption and savings-investment,
debt and borrowing capacity, debt payment, and expenditure pattern.

Development level and model of the economy are fundamental factors of the
economic environment. In developed economies, people have high incomes; wider
income distribution may assure living standards for the consumers; and many people
need high-quality goods and services. On the contrary, in underdeveloped economies,
consumption trend focuses on essential goods and low-end services. However, in
such economies, the needs of high-end products/services are increasing rapidly
thanks to the industrialization and development of the economy. In developed
countries, consumers tend to spend more since they can easily borrow money. But
during recessions, they cut back their expenditure and reduce borrowing, which in
turn cause a negative effect on the growth of needs of goods and services.
In addition, population scale, structure and growth rate are having
considerable influence on the marketers. Population together with economic growth
is the measurement of market scale.
In the demographic environment, age structure, race, education level and
others are factors to divide the market into segments of different scales and
characteristics. Expenditure pattern of families of two or more generations as well
as type of products/services that they choose tends to be decided on basis of people
community preferences. The movement of living places and among people groups
will also affect the changes of needs; therefore, marketing policy should also adapt.

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1.2.3 Cultural - Social environment
The society where people grew up defines the basic believes, values and
standards. There are three aspects that should be considered in cultural - social
environment:
Core values: it is necessary to define the belief or core values that tend to last
for long and identify which are vulnerable to change.
Cultural branches: a group of people share values acquired from certain

living experience and conditions. Religions have influence on the consumption of
goods and services defined by religious rules and social traditions.
Values that are vulnerable to change over time and social trends are both
opportunities and threats to marketing activities. They can be the trends and
preferences among young people about music, fashion or career ambitions, such
social trends will then affect on consumers' attitude to themselves, surrounding
people and organizations.
1.2.4 Technological and Natural environment
Natural environment results in changing trends of production materials,
energy cost, environmental pollution level and attitude of governments toward
environmental protection. Technological environment is always the most important
force to improve the quality of life for humans, as it becomes more effective at
harnessing the natural environment’s resources.
Technological trends are developing and changing at fast pace while product
life cycle is shortening; therefore, Marketing-implementing tools are also changing.
Opportunities for innovation of products and services are unlimited, which causes
prices to drop and enable consumers to access products more easily. Budgets for
Research and Development activities should be increased, especially for enterprises
that aim to be market leaders. Regulations to control technology are being tightened
and tightened to protect the consumers and ensure their privacy.

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1.3. Target Market Identification
1.3.1. Concept of market:
Under marketing concept, a market is the actual and potential buyer of a certain
product/service. A market consists of buyers while an industry consists of sellers.
Phillip Kotler’s definition: “A market is the set of actual and potential
buyers of a product. These buyers share a particular need or want that can be

satisfied thought the exchange.”[7]
1.3.2. Market Classification
1.3.2.1. Reasons of market segmentation and market targeting
A market consists of buyers that are different in single or many aspects; for
example, they may be different from each other by their desire, purchasing power,
location, purchasing attitude and pattern. No company has the capacity to satisfy the
needs of all of its potential customers. In addition, there are many other rival
companies in the market so, it has to face the challenges posed by competitors.
Anyway, each company has strengths in certain aspects so that it can use such
strengths to satisfy part of market needs.
1.3.2.2. Market Segmentation


Definition

Consumers in the market are homogeneous and can be divided into segments by
various manners. A group of consumer can be segmented on basis of geographical
factor (region, city), demographic factors (gender, age, education level), psychological
factor (social class, life style), and behavioral factor (purchasing opportunity,
consumption rate, benefit-oriented). The segmentation of customer base into groups to
highlight the differences of needs, characteristics, or behavior is called market
segmentation. Each market is constituted of many market segments.
Market segmentation is defined: “Dividing a market into instinct groups of
buyers with different needs, characteristics or behavior, who might require separate

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products or marketing mix”. [8]


Requirements of an effective market segmentation [9]
- It is internally homogeneous (potential customers in the same

segment prefer the same product qualities).
- It is externally heterogeneous (potential customers from
different segments have basically different quality preferences).
- It responds similarly to a market stimulus.
- It can be cost-effectively reached by market intervention.


Segmentation criteria:

Segmentation basis Segmentation criteria

Geography

Demography

Psychology

Consumption
behavior

Region (North, South), area (urban, rural, etc.), town,
district, commune, etc.
Age, gender, family generation, family life cycle, income,
profession, education level, religion, ethnicity, etc.
Attitude, motivation, social class, life style, personality.
Purchasing reason, desired benefit, consumer status,

loyalty level, readiness stage, and attitude toward
products.

1.3.2.3. Market targeting


Definition

“Market targeting is the process of evaluating each market segment’s
attractiveness and selecting one or more segments to enter.”[10]


Reasons of market positioning

Coverage of the whole market:

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-

Insufficient resources.

-

Includes of unattractive segments.

-

May not be able to satisfy the best needs of a customer group since

trying to satisfy too many segments.
-

Suitable to multinational and transnational corporations.



Basis of market positioning

-

Scale and development potential of the segment.

-

Attractiveness of the segment: large number of customers, diversified

and abundant needs, changing consumption style, few competitive threats, high
profit, favorable macro-environment.
- Suitable to resources of the organization.
1.4. Positioning
In Marketing, positioning has come to mean the process by which marketers
try to create an image or identity in the minds of their target market for its product,
brand , or organization and what adds value to the customers.
Re-positioning involves changing the identity of a product, relative to the
identity of competing products, in the collective mind of the target market.
De-positioning involves attempting to change the identity of competing
products, relative to the identity of your own product, in the collective minds of the
target market.

The original work on Positioning was consumer marketing oriented, and was
not as much focused on the question relative to competitive products as much as it
was focused on cutting through the ambient "noise" and establishing a moment of
real contact with the intended recipient. In the classic example of AVIS claiming
"No.2, We Try Harder", the point was to say something so shocking (it was by the
standards of the day) that it cleared space in your brain and made you forget who

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