Fundamental Martketing - Summary

8/14/2019 Fundamental Martketing - Summary

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CASE STUDY METHOD:How to read a case:

Detectthe key factsof problemof the enterprise Differentiatetheinternal data linked to enterpriseand theexternal data linked to environments Differentiatethecauses(the real problem) and theeffect(symptoms) Differentiatethe opinions put forward and the actual data.

The approaches of case study in marketing (6 key points)1. Highlighting of eventful facts of the situation2. definition of problem encountered by enterprise3. Propositions of solution4. Evaluation of different propositions5. Debated choice of the best solution recommended to enterprise6. Details of the implementation of this solution

Structure - from ADIDAS case:1. SWOTs analysis2. Problem to solve3. Constraint and inadequate solutions4. Strategic solutions and final recommendation5. Objectives targeting branding and positioning (detailed strategy)6. Driving elements of marketing mix (implementation of the final solution)

Structure from RIVA case1. Data recall2. Analysis3. Constraints4. Inadequate solutions5. Suggest final solutions6. Conclusion

In the field of intl marketing it is mandatory to think globally even if you will adapt the policlocally constraints but only with a light adaptation.Think globally, Act locally but carefully

Learning from BIZ simulation.Setting objectives: know your position in the market to put your goals - be dynamic but realistic (da vkt qu trong lch s, tnh hnh thc t, quan trng nht l a ra chng c thuyt phc)

Compare objectives vs results set new goals.

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MARKETING INTRODUCTIONMarketing basic definition: M is the process of planning and executing the conception, pricing, promotioand distribution of ideas, goods, and services to create exchanges that satisfy individual and organizatiogoals.Marketing definition: M is the delivery of customer satisfaction at a profit in short: meeting neprofitablyMarketing: strongly customer focused deal with customers (create customer value and satisfaction)

Marketing goal: attracting new customers by promising superior value and keeping current customers bdelivering satisfaction.E-marketing: use electronic communication devices (internet) to achieve marketing objective.Marketing is a social and managerial process by which individuals and groups obtain what they need anwant through creating and exchanging products and value with others.Marketing identifies and anticipates customer requirements->satisfies organizations objectives. But offeris under financial, social & legal constraintsProduction oriented selling oriented marketing oriented ???

MARKETING CONCEPTNeed: deficiency felt by consumer Want: the form that a human need takes as shaped by culture and individual personalityPeople have basic, narrow need but almost unlimited wants. But they have limited resource. They have tthe products that provide the most satisfaction for their money ->demandDemand: humans want that are backed by buying power.Satisfaction:the result of interaction btw the consumer and the pdt.Exchange:the transaction enabling a consumer to obtain a product in exchange of monetary valueMarket: the whole group of current and potential clients of a product.MARKETING IS AN INTERFACE OF: PRODUCT PRICE PLACE PROMOTIONTarget consumer central of interface(Book 105P121/ 110-P126)Product: Anything that can be offered to a market for attention, acquisition, use or consumption thasatisfy a want or need. It includes physical objects, services, persons, places, organizations and ideas.Price: The amount of money charged for a product or service, or the sum of the values that consumers exfor the benefits of having or using the product or service.Place: All the company activities could make the product or service available to target customers.

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Promotion: Activities that communicate the product or service and its merits to target customers and pethem to buy.

MARKETING IS A 4-STAGE APPROACH: (IMPLEMENTATION?)1. Marketing intelligence: Everyday information about developments in the marketing environment that helps managers preparadjust marketing plans.(book 318-P329)Evaluation of the current or future market

Understanding consumers behavior and tendenciesEvaluation of competitors performance (benchmarking)The marketing intelligence system determines the intelligence needed, collects it by searchenvironment and delivers it to marketing managers who need it.Marketing intelligence comes from:a) The company's personnel - executives, engineers and scientists, purchasing agents and the sales for b) Suppliers, resellers and customersc) Competitors (from what they say about themselves in annual reports, speeches, press releaadvertisements, in business publications and at trade shows. Or from what competitors do - buyanalyzing competitors' products, monitoring their sales and checking for new patents.d) Out-side suppliers.Marketing intelligence can work not only for, but also against a company. Companies must sometimsteps to protect themselves from the snooping of competitors. The methods used to gather cominformation range from the ridiculous to the illegal.

2. Marketing strategy: (Book 113_P131)Study SWOTs -> set objectives -> marketing mix ->action plan (shows when activities will start, be rand be completed; it answer:What will be done? When will it be done?Whois responsible for doing it? Howmuchwill it cost?)Marketing strategy is the marketing logic by which the business unit hopes to achieve its marketinobjectives. It shows how strategies for target markets and positioning build upon the firm's diffeadvantages. It should detail the market segments on which the company will focus. These segments their needs and wants, responses to marketing, and profitability. The company should put its effort inmarket segments it can best serve from a competitive point of view. It should develop a marketing streach targeted segment.- Identify the total market, divides it into smaller segments,- selects the most promising segments and focuses on serving them.- Design a marketing mix using mechanisms under its control: product, price, place and promotion - Engage in marketing analysis, planning, implementation and control to find the best marketing mi

take action.Four steps: Segmenting => Targeting => Positioning => BrandingSegmenting:identification the difference groups of consumers called market segmentBegin by getting knowledge on the criteria of choice according to which the potential clientele can beinto homogenous (ng nht) subgroup - been able to be chosen and satisfied in a specific way-> scustomer not productCriteria of segmentation:

Identify criteria: Geographic, Socio-demographic (age, gender, income, familiar lifeeducation level, type of habitat, Psychographic (personality, values, lifestyle)

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Behavioral criteria: Situation of use, Occasion of purchase, Advantages looked for, Ha purchase (frequency and volume, brand loyalty, Distribution network

Targeting: Choice of several segments which can best reach and satisfy them After defining market segments (evaluating each market segment's attractiveness) -> enter one o segments of a given market - in which company has a differential advantage over its competitor generate the greatest customer value and sustain it over time.- Companies with limited resources -> decide to serve only one or a few special segments; this strateg sales, but can be very profitable. Or to serve several related segments - perhaps those with different kcustomer, but with the same basic wants.- Large company might decide to offer a complete range of products to serve all market segmenleading company normally has different products designed to meet the special needs of each segment.- Or enter a new market by serving a single segment, and if this proves successful, they add segments

Fivestrategies of market coverage1. Concentration on a product/market couple2. Specialization by product3. Specialization by market4. Selective specialization5. Global coverage

Indicators of market potential 1. Demographic characteristics: Size of population/ Rate of population growth / Degree of

urbanization / Population density/ Age structure and composition of the population2. Geographic characteristics: Physical size of a country/ Topographical characteristics/ Climate

conditions3. Economic factors: GNF per capita/ Income distribution/ Rate of growth of GNP/ Ratio of

investment to GNP

Positioning: What 'position' it wants to occupy in target segments. A product's position is the place the product occupiesin consumers' minds.

Market positioning gives a product a clear, motivating, distinctive and desirable place in the minds oconsumers compared with competing products - perceived position of products or brand in the customers according to objective criteria (technological quality, service associated, selling pricesubjective criteria (image of enterprise, prestige of the brand, comparative evaluation of producompeting alternatives)->Identifies possible competitive advantages upon which to build the position -> offer greater vchosen target segments, either by charging lower prices than competitors or by offering more ben justify higher prices. However, if the company positions the product as offering greater value, it must deliver greater value. Effective positioniwith actually differentiating the company's marketing offer so that it gives consumers more value than is offered by the coThe company can position a product on only one important differentiating factor or on several. However, positioning on factors can result in consumer confusion or disbelief. Once the company has chosen a desired position, it must take steps and communicate that position to target consumers. (Chapter 10) P125.Should be simple, credible, original and durable; Easy to communicate -> then declined to themarketing mix???Positioning and strategic approach: (xem tip trong sch ca Thy Session 3.2)Branding: definition of the brand architecture(xem them phan Marketing mix product)

3. Marketing Mix: (Book 109 _ P125)

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After choosing of overall competitive marketing strategy -> begin planning the details of the marketinThe marketing mix is the set of controllable tactical marketing tools that the firm blends to prodresponse it wants in the target market. The marketing mix consists of everything the firm can do to inthe demand for its product. The many possibilities gather into four groups of variables known as the product, price, place and promotion.(Chapters 13-22).An effective marketing program blends the marketing mix elements into a coordinated program desachieve the company's marketing objectives.The marketing mix constitutes the company's tactical tool kit for establishing strong positioning imarkets. However, note that the four Ps represent the sellers' view of the marketing tools availainfluencing" buyers. From a consumer viewpoint, each marketing tool must deliver a customer benefi

One marketing expert suggests that companies should view the four Ps as the customer's four Cs: FOUR Ps FOUR C s (meet customer needs economically and conveniently and with effecommunication)Product Customer needs and wantsPrice Cost to the customer Place ConveniencePromotion Communication

4. Marketing monitoring (part 118-P134) The last section of the plan outlines the controls that will monitor progress. Typically, there are go budgets for each month or quarter. This practice allows higher management to review the results

period and to spot businesses or products that are not meeting their goals. The managers of these buand products have to explain these problems and the corrective actions they will take.the process of measuring and evaluating the results of marketing strategies and plans and taking correaction to ensure the achievement of marketing objectives. It involves the four steps:

Compare outcome with goals Analyze market sales deviations Analyze cost and profitability Learn and revise

Operating control involves checking on-going performance against the annual plan and taking coaction when necessary. Its purpose is to ensure that the company achieves the sales, profits and other

out in its annual plan. It also involves determining the profitability of different products, territories, and channels. Strategic control involves looking at whether the company's basic strategies mopportunities and strengths. (part 118-P134)

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1. DEFINING THE PROBLEM (PROBLEM TO SOLVE?) SETTING RESEARCHOBJECTIVESa) Defining the real problem of consumer reactions to the products, service and prices offered in thechains stores.Example: explain the reason why market share is declining, penetration is low, no awareness of the br price is not adapted, advertising is not powerful, brand portfolio is not sufficientb) Setting one of three types of objective:(Ref. book 321)

The exploratory (tham do) research : to gather preliminary information that will help define the proband suggest hypotheses. Start with this and follow with:

- Descriptive research is to describe things such as the market potential for a product or the demograpand attitudes of consumers who buy the product.

- The objective of causal research is to test hypotheses about cause-and-effect relationships. For examwould a 10 per cent cut in CD prices increase sales sufficiently to offset the lost margin?

Collecting information for:evaluation the market and the potential/ follow permanently the sales and b profile/ know, understand and explain the consumer process/ benchmark the competitors/ crea products, new brand name/ test the products idea, the product, the advertising/ find the way to upg product/ search for product range or brand extension2. DEVELOPING THE RESEARCH PLAN: Determining the information needed, developing a plan for gathering it efficiently and presenting themarketing management. The plan outlines sources of existing data and explains the specific reapproaches, contact methods, sampling plans and instruments that researchers will use to gather new dData to gather/ collect:a) Secondary Information: already exists somewhere, having been collected for another purpose. evaluate the information to make sureit is relevant, accurate, current, and impartial (cong bang).Quick &cheap from internal or external sources (library, internet, buy from AC Nielson..)Secondary data provide a good starting point for research and often help to define problems and reobjectives. In most cases, however, secondary sources cannot provide all the needed information company must collect primary data. b) Primary data: information collected for the specific purpose at hand. This could bequalitative researchthat measures a small sample of customers' views, or quantitative research that provides statistics from alarge sample of consumers.Designing a plan for primary data collection calls for a number of decisioresearch approaches, contact methods, sampling plan and research instruments.

Research approach:Observational research is the gathering of primary data by observing relevant people, actionsituations. Experimental research gathers causal information (cause-and-effect relationshipExperiments involve selecting matched groups of subjects, giving them different treacontrolling unrelated factors and checking for differences in group responses. Observatisurveys can collect information in experimental research.

Contact methods. Mail, telephone, personal interviews-group interviews and the Internet

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.Sampling plans: Marketing researchers usually draw conclusions about large groups of consumstudying a small sample of the total consumer population. A sample is a segment of the popselected to represent the population as a whole. Ideally, the sample should be representative, so researcher can make accurate estimates of the thoughts and behaviours of the larger population.Designing the sample calls for three decisions. First, who is to be surveyed (what sampling unit)?Second,how many people are to be surveyed (what sample sise)?Large samples give more reliable results thsmall samples. (< 1% of a population can often give good reliability). Third,howare the people in thesampleto be chosen(what sampling procedure)?Research instrument: two main research instruments: thequestionnaire and mechanical devices.

The questionnaire: most common, very flexible instrument question is developed carefully,contributes to the research objectives. Wording: simple, direct, unbiased wording. Logical ordThe first question should createinterest if possible, difficult or personal questions lastForm of question:closed-endincludes all the possible answers, and subjects make choices amthem - provide answers that are easier to interpret and tabulate.open-endquestions allow respondents to answer in their own words. Open-end questions oftenmore than closed-end questions because respondents are not limited in their answers -usexploratory research in which the researcher is trying to findout what people think, but not measurinhow many people think in a certain way.Mechanical instruments: people meters and supermarket scanners.

Methods of data collecting (primary data)i) Explorative documentary research(exploration & familiarization informal method)Collect information on the market and its environment, from department within enterprise or publishemedia, internet, asked concerned people (expert, buyer, retailer, consumer)Three questions should be asked:

Where to find information (sources)?

How to look for it (collection methods)?

How to analyze it (data processing techniques)?

Advantages: low cost, fast, easy access (internet), diversity of information collected, general interest oenvironmentDrawbacks: global and not precise, quality to validate, out of update, self-contradictory data, little inta specific problem.ii) Standardize multi-client research(analysis of market performance and definition of marketing problematic): go deeper into the analysis of market performance and collect relatively precise informaclients or competitorsCollection of primary standardized dataSubscription by several enterprises at the same time

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Halfway between the documentary research and the ad-hoc researchDistinguish:

Panels: permanent research realized with the same methodologies, from a same sam persons or enterprises reveal in periodic way, through successive waves the same tyinformation concerning the behaviour of a group.Panels of convenience goods consumption, panels of audience, professional panels

Multi-client barometers: periodic surveys interviewees that vary from one wave to another

questions from one wave to another Barometer of satisfaction, researches of advertising tracking, research of brand awareness andresearch of audience

Omnibus researches: repetitive researches from national sample interviewees and questionthat vary from one wave to another multi-client researches in which each client buys a seexclusive questions.

Advantages: Harnessed and shared costs big volume of information, possibility of comparing resuthose of competitors and analyzing developments along the time.Drawbacks: Not always precise information Sometimes old information Not enough for specific a problem.

iii) Ad-hoc research(punctual & specific analysis of problem asked); punctual and specific surveys particular problem whose methodology of collection and processing of primary data is conceived spethe problem studied.In depth qualitative survey (individual or group interviews, quantitative survey through questionnaireface, over telephone or internet).Example: test of concept, of pack, of name, of priceAdvantages: Precise responses personalized methodology control of information collection quaratio good for making decision exclusivity of information.Drawbacks: technicality of methods high costs duration of research difficulty and slowness of priv) Market-tests (validation of behavioral reactions of consumers): register behavioral reactioconsumers Validate the whole set of elements of marketing strategySimulated of market-testsWhere buyers do not plan their purchases carefully or where experts are not available or reliabcompany may want to conduct a direct test market. This is especially useful in forecasting new-prodor established-product sales in anew distribution channel or territory.(Book 347 - Chapter 13.Part 4)(Presenting the Research Plan: summarize the plan in a written proposal- explain why and how to dresearch and get management approval. Proposal covers the management problems addressed anresearch objectives, the information obtained, the sources of secondary information or methods for co primary data, and the way the results will help management decision making).

3. Implementing the research plan:Field research plan: WHEN? WHO? HOW?

Marketing research plan action. This involves collecting, processing and analyzing the information.

4. Interpreting and reporting the findings;Data treatmentStatistical or interpretativeFinal report & presentation Interpret/present important findingsdraw conclusions report

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Interpretation is an important phase of the marketing process. In many cases, findings can be interprdifferent ways and discussions between researchers and managers will help point to the best interpreta

Marketing information system (MIS): People, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurateinformation to marketing decision makersThe information needed by marketing managers comes from internal company records, marketing inteand marketing research. The information analysis system then processes this information to make it mor for managers.

Finally, the marketing information system distributes information gathered from internal sources, marketiintelligence and marketing research to the right managers at the right times.Information, what for?

Evaluate the market and the potentialFollow permanently the sales and buyer profileKnow, understand & explain the consumer processBenchmark the competitorsCreate the new product, new brand nameTest the product idea, the product, the advisertisingFind the way to upgrade the productSearch for product range or brand extension

MARKETING RESEARCH QUALITATIVE & QUANTITATIVE RESEARCHQualitative research: exploratory research used touncover consumers' motivations, attitudes and behaviour.

Focus-group interviewing, elicitation (goi ra, suy luan ra) interview and repertory (kho tin tuc, tai lieu, kimuc?) grid (duong ke o, ban do) techniques are typical methods used in this type of research.Quantitative research: Research which involves data collection by mail or personal interviews from a suffvolume of customers to allow statistical analysis.

QUANTITATIVE RESEARCH(BOOK PAGE???)Ad-hoc research by quantitative methodsDefinition:

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Ad-hoc quantitative research is punctual, specific survey for a particular problem, whose methodocollection and processing of primary data is conceived specially to meet the objectives of the enterprise aquestionnaire or observation methods.Objectives:Supporting:

Market valuationProduct developmentBrandingMarketing mix decisionsLaunching

Techniques:

Concept test / product test blind test / brand test / Copy test advertising / usage and attitude awareness and image study / satisfaction barometer / market testCharacteristics:

Interrogate an enough large number of peopleTo measure phenomenaObtain numerical resultsStatistically the most representative thats possibleExtrapolable (ngoai suy) to the whole population

The four modes of data collecting1. Punctual survey by questionnaire on a representative or random sample2. Barometers: same questionnaire , same sample structure repeated as in the past3. Panels: permanent sample of respondents interrogated on the same questionnaire4. Omnibus: multi thematic questionnaire sample defined beforehand, each client demands and

set question.Elaborating the questionnaire

Step 1: Establish a list of themes and variables to measure according to the brief of research demStep 2: Then put them in questions/answer format from the most general theme to the most spec

Use closed or open format?+ closed: yes/no, liker scale, bipolar, others 5 degrees strongly agree, somewhat agropinion, somewhat disagree, strongly disagree+ Open: rich response, more difficult to interpret

Step 3: Then finish with descriptive of respondentUsing the right tools: mail questionnaire / telephone interviewing / personal interviewingPre-test the questionnaire: frequent error

Bias: Contamination be previous questionError of formulation: misunderstanding of the questionError of answer format: inability to answer Too long questionnaire

Sampling:

Step 1: Determination of target: who are they? Define the profile of respondents?Step 2: Choice of sampling method: how to select the respondents: random method or quota metStep 3: definition of sample size: how many? Determine the statistical precision, obtain the sam

SYNTHESIS (Tng hp) : QUALITATIVE AND QUANTITATIVE METHOD

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Qualitative research Quantitative research

Objectives Collect ideas, explore motivation Measure data and behaviors

Sample Small number representative respondents Representative sample of the group and big30

Mode of datacollection

Focus group individual interview internet -observation

Face-to-face, at home, in room, in the stretelephone, mailing, internet

Data collection Non-structure method: guide of interview,recording of response

Structure method: questionnaire with questions responses

Data analysis Study of discourses, analysis of content Data processing

Results Understanding of problem and its solutions Numerical diagnosis

PANELS:(syllabus Session 2.30 slide 12-19)What is panel?- Tool of permanent and regular observation of a market- Made up of permanent sample of consumers or distributors or purchasing advisors of a same cat

products- Allow one to know the behaviors and a situation at a given time and to follow their developme

the timePanels of distributors

MARKETING RESEARCH - QUALITATIVE RESEARCH

Phases of research

Definition of problem & objectives of research

Conception of research plan: method of collection (groups, individuals) and target

Elaboration of research instrument (guide, observation plan,)

Field collection of information

Information processing and analysis

Editing of report and presentation of conclusions

Recommendations

Methodology:* Objectives: WHAT FOR?

To describe buying process/ To understand usage/ To explain the desire/To verify the priTo test the new pdt/ To image a new concept of pdt* Data collection by interview:

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Group meeting (focus group): 8-10 persons or (4-5) conduct a deep investigation on a defined tduring 2-3 hrs

In depth individual interview: to interrogate separately a certain number of people (abt 30) durinon the theme held. (Should not be confused with face to face interview used in quantitative survey)* Sampling:Selection of sample: empirical (theo kinh nghiem) not statisticalSample size: abt 30 people interrogated individually or 1-2 groups of 8

* Instruments:Guide of animation for group and guide of interview for individual for individual interview

Formalize the question of interviewers

Construct according to a funnel-shaped scheme, from more general to more particular * Field: Basic rules when collecting information:

not to induce the responsesnot to interpret the remarksnot to give his/her opinionnot to judgemental with valuesoften reformulate, relaunch to make discourses preciseshow that one is attentive, that one understandmake accurate synthesis all along the interview or the animation of group

* Data analysis and interpretation> Analysis of content:all ideas and themes mentioned> Analysis of significant facts: search for explanatory variables, cause and effect relations> Interpretation of results: translation of information from a logic of research (the interviewees) to

problematic of decision (the enterprise, its strategies, its possibilities)* Recommendation:

> Synthetics of fact: what are your conclusions?> Recommendation: what do you recommend to do?

III. IMPLEMENTATION OF THE MARKETING MIX:MARKETING IS AN INTERFACE OF: PRODUCT PRICE PLACE PROMOTION

PRODUCT POLICY (Section 5).1) Value of the brand, portfolio and extension

What is a brand? (Ref. book 571 page 578)A brand is a name, term, sign, symbol, design or a combination of these, which is used to identify the gservices of one seller or group of sellers and to differentiate them from those of competitors. Thus identifies the maker or supplier of a product.A brand conveys a specific set of features, benefits and services to buyers. It is a mark, a tangible emblemsays something about the product. The best brands, for example, oftenconvey a warranty of quality. A brand can deliver up to four levels of meaning:

1. Attributes . A brand first brings to mind certain product attributes.(See Kano Model re. Attributes)

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2. Benefits . Customers do not buy attributes, they buy benefits. Therefore, attributes must be translatfunctional and emotional benefits. For example, the attribute 'durable' could translate into the functional benefit, 'I won't have to buycar every few years.' The attribute 'expensive' might translate into the emotional benefit, 'The car m feel important and admired.' The attribute 'well built' might translate into the functional and emobenefits. I am safe in the event of an accident.'

3. Values. A brand also says something about the buyers' values.4. Personality. A brand also projects a personality. The brand will attract people whose actual or desireimages match the brand's image.

The challenge of branding is to developa deep set of meanings or associationsfor the brand.

From the four levels of a brand's meaningdecide the levels at which they will build the brand's identity (cadac tinh). The most lasting and sustainable meanings of a brand are its core values and personality. They the brand's essence. The company must build its brand strategy around creating and protecting this brand personality.The role of brand: (Section 5.1 slide 6)Brand as a level of communication: (Section 5.1 slide 8)Consumer brand sensibility: (Section 5.1 slide 10)

Consumer attachment to the brand:Cognition (awareness): the brand is known

Sensibility: The consumer takes the brand into accountPerception (image): The image is attractive

Confidence: the brand inspires confidenceAttachment: the consumer has emotional relationship to the brand

Brand development:(Brand strategy???)

Founding period: The success of new product brings fame to the brand

Different level of awareness: top of mind Spontaneous (tu phat, tu nhien) awarenessaided awarDecoupling period: The territory of brand is affirmed

Rooting period:The values of the brand become perennial (ton tai mai mai, lau nam, luon tai dien)

Expansion period:The brand spreads to other categories of productsLine extensionUsing a successful brand name to introduce additional items in a given product caunder the same brand name, such as new flavours, forms, colours, added ingredients or package sRisk of line extension: The brand name might lose its specific meaningBrand-extension (or brand-stretching) using a successful brand name to launch new or mod products in a new category.

Advantages: 1) may capture greater market share and realize greater advertising efficiencindividual brands. 2) well-regarded brand name helps the company enter new product categorieasily as it gives a new product instant recognition and faster acceptance.Risk: 1)Poorly conceived brand extensions as the brand name was not appropriate to the new peven though it was well made and satisfying. This problem occurs when the established brand launched into a very different market from the original brand and target customers in the new mnot value the brand's associations. 2) lose its special positioning in the consumer's mind through o3)can hurt the core values of the original product when managers get it wrong.

2) New product and product policyi) What is new product?

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ii) Development of a new product: The development of original products, product improvements, 'product modifications and new brandsthe firm's own R & D efforts.(Ref. book 603 Page 610)As all products eventually decline, the firm must find new products to replace ageing ones (the pronew-product development). New attributes but not necessarily a new nameThe diversity of new products:

innovation for the marketnew category for the enterprise

extension of the seriesGiven the rapid changes in taste, technology and competition, a company cannot rely solely on its products to sustain growth or to maintain profitability. The firm can hope to maintain market an performance only by continuous product innovation. Product innovation encompasses a variety ofdevelopment activities - product improvement, development of entirely new ones, and extensioincrease the range or number of lines of product the firm can offer..Aninnovationis defined as anidea, product or piece of technology that has been developed and marketcustomers who perceive it as novel or new.Its a process of identifying, creating and delivering new-provalues or benefits that were not offered before in the marketplace.Consequence of degree of innovation:

Level of commercial and technical risk: Innovation may be very risky due to+ High cost+ Spend time: The uncertainty and unpredictability of market environments further raise tof commercialization+ Unexpected delays in development+ The new-product success record is not encouraging

Rapidity of product diffusion Synergies (ho tro, hiep luc) for the enterprise Duration and content of development process

New product development process (figure 14.1)

Four steps of new product development:Step 1:From idea to concept

Emergence of idea and filtering

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Elaborate (soan thao ky luong) the test of concept Study of technical and economic feasibility

Step 2:Conception of product From prototype (ma~^u dau tien) to mass-produced product Technical test Product test (with client)

Concept is a key-step:

Passage from idea to marketing conceptWho / When / Why / How to use the product?A same idea can lead to several concept

Test of concept:

Group meetings or individual interviews with leading users in b-to-bEventually quantitative phase

Step 3:Elaboration of marketing policy Marketing strategy Determination of marketing-mix Eventual market-tests

Step 4:Launching Preparation and implementation Control

Priorities

Let people know the productEncourage trial

Principal lever of action:

communication in order to build awareness and explicate the content of product: advertisinsales force

Promotion and salons to promote trialOther components of marketing-mix:

Limited seriesOften limited distribution (but not voluntary)The dilemma of selling price

iii) After launching the concept of life cycle of product:

Launching Growth Maturity DeclineIts utility:

Anticipate the development of sales and adapt the marketing policy in consequenceAnticipate the actions of competitorsBalance the portfolio of products

Its Limits:

Diversity of form of life cyclesDifficulty to position oneself in real timeDoes the life cycle determine the marketing policy or result from it?Which level of application?

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iv) The product range:Definition: its the group of products of a same category commercialized by an enterpriseThe Series break down into product lines:

Breadth of the series: number of product linesDepth of a series: number of benchmarks.

Short range:

Concentration of resourceBetter knowledge of products by sales forceEconomy of scaleEasiness of management

Long range:

Possibility of covering several segmentsRisk dispersion (phan tan, lam tan mat, lan truyen)Possibility of keeping customers who like changing

Management of product range:Why having balanced range?

Generate sales and profitsIn the short but also in the mid termsConquer and develop loyalty

A necessary condition: an analytical accountingv) Conclusion:

The increasing number of new products will shorten life cycle (or with shortened life cycle???)Strengthens the importance of the phase of preparation and launching???..

(Phan Doc them cho 4 steps tren tu ref book 613 page 619) New-product ideas are generated from many sources: customers, competitors, distributors, suppliers and

Large number of ideas then is screened / reviewedto reducethat number to a manageable few which desefurther attention.Attractive ideas must now be developed into product concepts (Concept Development and Testing)

Product idea: An idea for a possible product that the company can see itself offering to the marketProduct concept: A detailed version of the new-product idea stated in meaningful consumer termsProduct image: The way consumers perceive an actual or potential product.

Concept testing: testing new-product concepts with a group of target consumers. The concepts may be pto consumers symbolically or physically.The next step is to develop a marketing strategy for introducing product to the market

The marketing strategy statement consists of three parts:

- The first part describes the target market (young, well-educated people), the planned positioning, and the sales, market share and profit goals for the first few years.

- The second part of the marketing strategy statement outlines the product's planned price, distribumarketing budget for the first year.

- The third part of the marketing strategy statement describes the planned long-run sales, profit gomarketing mix strategy.

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PRICING POLICYPrice The amount of money charged for a product or service, or the sum of the values that consumers efor the benefits of having or using the product or service.The selling price is determinedby taking into account thecost price, the prices used by competitors and th prices acceptable for potential clients.

COST: two forms, fixed and variable. Fixed costs (also known as overhead) are costs that do nwith production or sales level. Variable costs vary directly with the level of production & total varthe number of units produced. (also called indirect and direct cots)Cost price: an element of indispensable (khong the thieu) information, but insufficient

Factors to consider when setting a price:

Behavior of buyer in front of prices:Resilience of demand to prices (tinh chat co gian cua cau theo gia):(Average resilience coefficients: he so co gian trung binh)

Price elasticity A measure of the sensitivity of demand to changes in price.Price elasticity of demand = % change in quantity demanded / % change in price

Competition:cost of competition is the price that permits positioning oneself in relation to the competitionincreasing this competition to penetrate a market (price war) or in the contrary escaping this competition creating opacity on the market (different tariffing basic than that of competitors)

Marketing strategy and positioning(Ref book P725)Price is the expression of a strategy. In numerous cases in order to conciliate policy of volume and policymargin, price is differentiated to reach different groups of clientele.a) Market Penetration pricing: setting a low price for a new product to attract a large number of bu

and gain a dominant (vuot troi) market share (penetrate the market deeply and quickly)

Penetration or domination by costs = low price penetration = attracting price, weak unit margin =>+ Little protected market (low price must help keep out the competition?)+ Potential of huge development+ Demand elastic to price (high sensitive to price)+ Economies of scale ??? ( production and distribution costs must fall as sales volume increases.?)

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b) Market skimming pricing: setting a high price for new products to maximize revenue from tmarket sector (the segment willing to pay the high price company make fewer but more profitabDifferentiation = high price > positioning to up marketSkimming = high price, high unit margin =>+ Innovators market of image+ Protected market+ Little elastic demand+ Weak economies of scale???

c) Tariffing / Product line differentiation (Product-mix pricing strategies)Product linepricing: Setting the price steps between various products in a product line baaed on codifferences between the products, customer evaluations of different features, and competitors' pric

Establish a product line bound to cover different line of price

Justify the differences of prices with differences of aspect, of functionality, of design, and of brYield management:Fix the price of a service in a way to maximize the global revenue => sell the same service (or differentiated service) at a different price according to predictable demand and risk of non-sale=> Yield concept is to cover the risk of non-sales by demand to reach the break-even point, marginal poin

Break-even pricing: (target profit pricing)Setting price to break even on thecostsof making and marketing a product;or setting price to make a target profit.

Doc ThemChanging price as reaction to market change

1. Reduce price. Whencompetitor reduce price/ when market is price sensitive - lose too much market sharlower-priced competitor. Cutting price will reduce the company's profits in the short run. Some companialso reduce their product quality, services and marketing communications to retain profit margins, ultimately will hurt long-run market share. The company should try to maintain its quality while it cuts pr2. Raise perceived quality.The company might maintain its price but strengthen the perceived value of its ocould improve its communications, stressing the relative quality of its product over that of the lower-pricecompetitor. The firm may find it cheaper to maintain price and spend money to improve its perceived quato out price and operate at a lower margin.3. Improve quality and increase price.The company might increase quality and raise its price, moving its brainto a higher price position.The higher quality justifies the higher price, which in turn preserves the comphigher margins. Or the company can hold price on the current product and introduce a new brand at a hig position.4. Launch low-price 'fighting brand'.One of the best responses is to add lower-price items to the line or to cra separate lower-price brand. This is necessary if the particular market segment being lost is price sensitivwill not respond to arguments of higher quality.

PROMOTION AND ADVERTISING POLICYI) INTRODUCTION (phan doc them)1) Promotion mix: A company's total marketing communications mix. PM consists of the specific ble

four main tools: advertising, personal selling, sales promotion and public relations.

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Advertising.Any paid form of non-personal presentation and promotion of ideas, goods or servian identified sponsor. Personal selling. Oral presentation in a conversation with one or more prospective purchasers for purpose of making sales and building customer relationships. Sales promotion.Short-term incentives to encourage the purchase or sale of a product or service. Public relations. Building good relations with the company's various publics by obtaining favour publicity, building up a good 'corporate image1, and handling or heading off unfavorable rumors, and events.(Book P756)Mass communications or mass promotion tools: advertising, sales promotion and Public relation

2) Nature of each promotion tool: (Book P776)ADVERTISING.Qualities can be noted: Can reach masses of geographically dispersed buyers at a low cost per exposure. Advertising's public nature => consumers tend to view advertised products as standard and leg buyers know that purchasing the product will be understood and accepted publicly. Can be repeated a message many times => buyer receive and compare the messages of competitors. Large-scale advertising by a seller says something positive about the seller's size, popularsuccess. Advertising is also very expensive, allowing the company to dramatize its products through thuse of print, sound and colour. Can be used to build up a long-term image for a product & can trigger quick sales (as wdepartment store advertises a weekend sale). Can reach masses of geographically spread-out buyers at a low cost per exposure.Advertising also has some shortcomings: im-personal and cannot be as persuasive as company salespeople. Only able to carry on a one-way communication with the audience, and the audience does not fehas to pay attention or respond. In addition, advertising can be very costly. Although some advertising forms, such as newsparadio advertising, can be done on smaller budgets, other forms, such as network TV advertising,very large budgets.PERSONAL SELLING. the most effective tool at certain stages of the buying process, particularly in building up b preferences, convictions and actions. Compared to advertising, personal selling has severalqualities: It involves personal interaction between two or more people, so each person can observe theneeds and characteristics and make quick adjustments. Personal selling also allows all kinds of relationships to spring up, ranging from amatter-of-factsellingrelationship to a deep personal friendship. The effective salesperson keeps the customer's interestsin order to build a long-term relationship. Finally, with personal selling the buyer usually feels a greater need to listen and respond, everesponse is a polite 'no thank you'.These unique qualities come at a cost, however. A sales force requires a longerterm commitmedoes advertising - advertising can be turned on and off, but sales force size is harder to change. Pselling is also the company's most expensive promotion tool, costing industrial companies an avalmost 200 per sales call.

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SALES PROMOTION Includes a wide assortment of tools - coupons, contests, price reductions, premium offers, free goothers - qualities: Attract consumer attention and provide information that may lead to a purchase. Offer strong incentives to purchase by providing inducements or contributions that give additionto consumers, Invite and reward quick response.

Sales promotion can be used to dramatize product offers and to boost sagging sales. Sales proeffects are usually short-lived, however, and are not effective in building long-run brand preferework, manufacturers must carefully plan the sales promotion campaign and offer target cusgenuine value. Only then will they enhance perceived brand image, build sales and maintain cloyalty.PUBLIC RELATIONS.All activities that the organization does tocommunicatewith target audiences which are not directly pfor. very believable: news stories, features and events seem more real and convincing to readers than Can reach many prospects who avoid salespeople and advertisements, since the message get

buyers as 'news' rather than as a sales-directed communication. And, like advertising, PR can dramatize a company or product.A well-thought-out public relations campaign used with other promotion-mix elements can beffective and economical.DIRECT MARKETING.Many forms: direct mail, telemarketing, electronic marketing, online marketing and others.Four distinctive characteristics: non-public as the message is normally addressed to a specific person. immediate and customized, so messages can be prepared quickly and tailored to appeal to scustomers. interactive: it allows a dialogue between the communicator and the consumer, and messagesaltered depending on the consumers response.

is well suited to highly targeted marketing efforts and to building one-to-one relationships.

II. ADVERTISING(Section 7) 1) Definition: Advertising is neither information nor propaganda (tuyen truyen). Its clearly aff

objective is to sell a product or a service or to create a favourable predispositions (tinh trang/huong thien ve) to its purchase by influence people.

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Advertising can use both media and non-media(or means of communication)Media: TV, press, outdoor, radio, movie Non-media: direct marketing, promotions, on-site advertising, sponsoring

2) How to do?Mainly act on the attitudes of consumers of a product/service in 4 levels:- Cognitive dimension: make them know the product or the brand, inform them of novelty, signa promotion campaign- Emotional dimension: build or modify a brand image, create and develop a privileged relation t brand, give it sense- Conative ( y muon? No luc?) (behavioral) dimension: by incentives, gift, fearless trial- Relational dimension: create a link, offer an interactive dialog.

3) Stages of advertising processa) Present the problematic and type of communication

Present the problematic: link with marketing objectivesCommunication types:

Product: present new product (pioneering), compare benefit (CompetiRemind/reinforce/repeat purchase (reinforce)

Brand: Better knowing (awareness), create/reinforce image (image building), convalues/societal values (Value)

b) Advertising strategy:Two elements creating the advertising messages and selecting theadvertising media.

Pull strategy: advertising and direct marketing(direction of searched or realized action)(thong tin ditu nha sx-> khach hang va phan hoi den nguoi sx thong qua kenh phan phoi.)Push strategy: actions on sales force and distribution(Direction of marketing of marketing effort)(thong qua kenh phan phoi den nguoi mua)i) Define the target and the objectives of communication (Promise: advertising message)

Stay coherent in relation to the marketing target and could not forget to take an interest in all thinfluence the consumer An advertising objective is a specific communication task to be accomplished with a specifiaudience during a specific period of time. Advertising objectives can be classified by purpose:whether their aim is to inform, persuade or remind.

I nformative advertising : used to inform consumers about a new product or feature and to build primary demand.

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P ersuasive advertising: used to built selective demand for a brand by persuadingconsumers that it offers the best quality far their money Comparison advertising (knocking copy): compares one brand directly or indirectly toone or more other brands.Reminder advertising: Advertising used to keep consumers thinking about a

product (Coca Cola)

Promise: Choose ones positioning (USP Unique Selling Propositioning rule)Find the major dimension that will distinguish the product/brand couple by unique promise or bencapture the interest of target.ii) Determine the schedule, the advertising pressure & the budget+ Schedule:can be scheduled at one per week during the year or pulsed in several bursts.Continuitymeans scheduling ads evenly within a given periodPulsingmeans scheduling ads unevenly over a given time period.The idea is to advertise heavily for a short period to build awareness that carries over to thadvertising period. Those who favour pulsing feel that it can be used to achieve the same impsteady schedule, but at a much lower cost. However, some media planners believe that although achieves minimal awareness, it sacrifices depth of advertising communications.+ The advertising pressureDepends on ad objectives, competitive position, advertising pressure of competitors, media effthresh hold and resources of advertising enterprise.The communication plan and the timing allow organizing along the time the combination of dmeans of advertising as well as the arrangement of campaigns.Reach is a measure of the percentageof people in the target market who are exposed to the ad camp(at least once) during a given period of time.Frequency is a measure of how many times the average person in the target market is exposedmessage. (the average number of times that a member of the audience will have been exposed to vehicle during the specified time period.)Media impact is the qualitative value of a message exposure through a given medium. For examp

products that need to be demonstrated, messages on television may have more impact than messradio because television uses sight and sound. The same message in a national newspaper may h believable than in a local daily.

Pressure = GRP (Gross grating point) = Reach x Frequency

+ Advertising Budget:Some specific factors that should be considered when setting the advertising budget: Stage in the product life cycle. New products typically need large advertising budgets to build awarand to gain consumer trial. Mature brands usually require lower budgets as a ratio to sales. Market share.High-market-share brands usually need more advertising/sales % than do low brands. Building the market or taking share from competitors requires larger advertising spendidoes simply maintaining current share. Competitionand clutter. In a market with many competitors and high advertising spending, a bmust advertise more heavily to be heard above the noise in the market. Advertising frequency.When many repetitions are needed to present the brand's message to consuthe advertising budget must be larger. Product differentiation.A brand that closely resembles other brands in its product class (coffee, ladetergents, chewing gum, beer, soft drinks) requires heavy advertising to set it apart. When the differs greatly from competitors, advertising can be used to point out the differences to consumers

ii) Establish a selection of media and support

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Advantages and limitations of media forms (book 807)

Outdoor media: Weak selectivity with respect to the target, strong geographic selectivity, selec permit strong, simple and direct interpellations (chat van). Role: formalize, , make credibleCinema: good selectivity with respect to certain targets and medium geographic selectivity, inf

imagination. Role: construction and reinforcement of image.National daily: rather good selectivity with respect to the targets, but weak penetration in region, guarantee of the message of the support, rapid implementation. Role: reach the opinion leaders, alRegional daily:Weak selectivity with respect to the target. Maximum geographic selectivity, helpvalue to the product. Role: construction and reinforcement of imagePress magazine: selectivity with respect to the target depending on the network used, rathergeographic selectivity, rapidity of implementation, allows mobilizing rapidly, leave place for imagRole: promotion, awareness (repetition), sound brand of the brand territoryTV: Medium selectivity with respect to the target, weak geographic selectivity, give value brand/power. Role: make credible, construct and reinforce image and awareness

Internet: Very good selectivity with respect to certain targets, weak geographic selectivity but woraccess, large flexibility of use, interactivity, addressability.

*** Define the creation strategy-creative brief (book P798) Product/ brand expected action of the campaign: what effect should the

campaign have on the product/ brand couple? (The message focuses on the brand'spositioning)

Targeting: the socio-demographic characteristics of the main and secondarytarget

Profile and insight: the psychological portrait of the individuals to whom the

campaign is addressed with priority. The hidden power of attitude or of psychology of theindividual targeted. Promise: the most persuasive argument to highlight Proof: the justification(s) can one give to convince the target Tone: What form to give to the message according to brand personality; its

status of transmitter, its relation to the target, its style and the mechanism used? Constraints: what should b done in the core and in the form to comply with

the codes of the brand. And what should absolutely be avoided?

Doc them:

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The first step in creating effective advertising messages is to decide what general message communicated to consumers - to plan the message strategy.Generally, the purpose of advertising is to gtarget consumers to think about or react to the product or company in a certain way. People will only if motivated to do so. Thus, developing an effective message strategy usually begins with idetarget customer benefitsthat can be used as advertising appeals. Ideally, advertising message strfollows directly from the company's broader positioning strategy. The planner must also have in mtarget audience and the type of response the message should evoke among those that get the messaMessage strategy statements tend to be plain, straightforward outlines of benefits and positioninthat the advertiser wants to stress. This means the advertiser must develop a compellingcreative concept

- or 'big idea' -that will bring the message strategy to life in a distinctive andmemorable way. Thecreative concept may emerge as visualization, a phrase or a combination of the two. The creative concept should guide the choice of specific appeals to be used in an adcampaign. Generally, the appeals should have three characteristics. First, theyshould be meaningful, pointing out benefits that make the product more desirableor interesting to target customers. Second, appeals must be believable.

This objective is difficult because many consumers doubt the truth of advertising ingeneral. One study found that a full one-third of the public rates advertisingmessages as 'unbelievable'. Furthermore, the most meaningful and believablebenefits may not be the best ones to feature (dac trung). Appeals should bedistinctive in terms of telling consumers how the product is better than thecompeting brands.

There are several creative message strategies that firms adopt: The message taps one or other of the motivations that drive human consumption for example, functional benefit , pleasure , self-identity , admiration and altruism(chu nghia/ hanh dong vi tha) The idea could be spawned by addressing the ways in which product sales can beincreased: current users must be encouraged to use more, or new usersencouraged to start buying the product. The message homes in on the differences between the advertised product andcompetitors' offering The idea for the message could have developed from an in-depth knowledge of the consumer's own experience with the product, particularly the buying process,

die process and effect of consumption, and the benefits sought. The advertiser must come very close to the consumer and follow his or herexperience with the product, usually through lengthy, labour-intensive qualitativeresearch, including point-of-purehase observations and analysis.

III. NON-MEDIA COMMUNICATIONSDirect marketing, promotions, on-site advertising, sponsoring, public relations, Lobbying

* Direct marketing:an interactive system of marketing that use one or several advertising media to oa measurable response and / or a transaction.Characteristics:

absence of intermediaries between enterprises and client

Double function of communication and/or direct selling

Systematic collection and exploitation of individual information concerning the clientsTypes of action:

direct selling by catalog

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Mailing bound to create traffic in store, to propose a promotion

Relational marketing: establish a durable relation with the target

E-marketing and e-commerceApproach of direct marketing

Objective Which offer? Which target? Which file? Which Communication? Which budget?

Objective: recruit? Make loyal? Reinforce the communication on a target> (amarketing strategy)

Offer: with or without promotion, which type of promotion, immediate effect or deeffect/

Target: the whole target, a niche (cho thich hop), a sub-segment?

File; internal, bought, rent

Communication: creation of support, insertion in a media or mailing to domicile

Budget: fabrication, mailing, pick-up rate, management of contacts.The RFM model of client value:Recency- Frequency-Monetary (khong hieu gi ca)Media of direct marketing:Mailing Phoning Press insert Green number of TV E-mailing

PLACE: DISTRIBUTION CHANELSDesigning a channel system calls for: Analyzing customer service needs. Defining the channel objectives and constraints. Identifying the major channel alternatives.

Evaluating those alternatives.Distribution chanels:

Untra short channel: direct marketing

Short channel; an intermediary

Long channel: several intermediariesThree actors specific expectations three type of marketing

Producer (Business) Consumers: marketing mix

Producer (Business) Distributors (retail): Trade marketing

Distributors (retail) Consumers: retailing mix

Producer (Business) Distributors (retail): Trade marketing+ Relations:

EqualityIndustrial advantagesDistributor advantageSearch of new forms of cooperation

+ Form of cooperation:

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Trade marketing: recognition by producers of the marketing concerns of ensigns considered as pa(partnership) Co-management of logistics and merchadizing Co-promotion Co-management of brand Systems of information exchange

Category management: Organization of stores by categories (consumer logic) considered as bu

units and managed jointly by producer and distributor Marketing mix and Retailing mixM. of brands M. of ensigns (???) personnel & services physical support

* Product * Assortment (phan loai/hang)* Price * Price* Communication * Communication* Distribution * Setting-up

Doc them:Having defined its channel objectives, the firm then identifies its major channel alternatives in terms of ttypesandnumber of intermediaries touseand theresponsibilitiesof each channel member.

- Direct marketing- Broker A wholesaler who does not take title to goods and whose function is toluring buyers and sellerstogether and assist in negotiation.- AgentA wholesaler who represents buyers or sellers on a relatively permanent basis, performsfew functions, and does not take title to goods.- Intermediaries Merchants,which include wholesalers and retailers, buy, take title to and reselfirm's goods. Other intermediaries - transport companies, independent warehouses, finance com banks - perform a range of channel functions to facilitate the flow of goods or services from prouser.

WholesalerThere are many types of wholesaler. They are classified according to the breadth and depth o product/service lines and the range of services they offer.

- Full-service wholesalersprovide a full set of services, such as carrying stock, using a sales foffering credit, making deliveries and providing technical advice and management assistance

- Limited-service wholesalers perform a limited number of functions and offer fewer services tosuppliers and customers. There are several types of limited-service wholesaler.

+ Cash-and-carry wholesalers have a limited line of fast-moving goods, such as groceries,household goods, clothes, electrical supplies, office supplies and building materials. Theysmall retailers and industrial firms for cash and normally do not deliver.+ Truck wholesalers (also calledtruck jobbers) perform a selling and delivery function. Thcarry a limited line of goods (such as milk, bread or snack foods) that they sell for cash make their rounds of supermarkets, small groceries, hospitals, restaurants, factory1 cafeterhotels+ Producers cooperative wholesalers:owned by farmer-members, who assemble farm prodto sell in local markets, and

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+ Mail-order wholesalers: use catalogues lo sell to retail, industrial and institutional custoand give discounts for large orders. Their main customers are businesses located in small oareas.

Retailers:

- Self-service retailerscater for customers who are willing to perform their own 'locate-compare- process to save money. Today, self-service is the basis of all discount operations and is typically sellers of grocery and convenience goods (e.g. supermarkets) and nationally branded, fast-shopping goods (e.g. discount stores). Limited-service retailers, such as department stores, provi

sales assistance because they carry more shopping goods about which customers need informatioalso offer additional services such as credit and merchandise return not usually offered by lowstores. Their increased operating costs, however, result in higher prices.

- Full-service retailers, such as specialty stores and first-class department stores, assist customers in phase of the shopping process. They usually earn' more specialty goods and slower-moving itemscameras, jewellery and fashions, for which customers like to be waited on. They provide more sresulting in much higher operating costs, which are invariably passed along to customers as highe

A specialty storecarries a narrow product line with a deep assortment within that line.A department store carries a wide variety of product lines typically, clothing and fas

accessories, cosmetics, home furnishings and household goods each operated as a separate depmanaged by specialist buyers or merchandisers.

Convenience storesare small stores that carry a limited line of high- turn over convenigoods essential groceries, toiletries, cigarettes and newspapers. These locate near residential arremain open for long hours, seven days a week. They satisfy an important consumer need in segment shoppers in this segment use convenience stores for emergency or fill-in purchasesnormal hours or when time is short, and they are willing to pay for the convenience of locatiopening hours.

Supermarkets are large, low-cost, low-margin, high volume, self-service stores that cawide variety of food, laundry and household products.

Hypermarkets are even bigger than superstores. A typical hypermarket occupies about 1square metres of space, almost as big as six football fields. They carry more than just routinely pugoods, for they also sell furniture, appliances, clothing and many other things. The hypermarket olike awarehouse.

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MARKETING PLANNING AND BUDGETINGII. MARKETING STRATEGY ( PLANNING ) :The aim of marketing planis to ensure that:

- Marketing activities are appropriate to the achievement of corporate objectives- can be implemented within limited resource- Capable of creating and sustaining a competitive position

Plan is formal and systematic process of forecasting the future business environmentdeciding on the most appropriate goals, objectives and positions for best exploiting that environment a

establish strong market positionsIt is the dynamic processyearly adapted to the change of environment, consumers wants and competitorsoffersType of plans (strategic marketing): Annual plan: short term plan- describe current situation, company objectives, the strategy for the year, the program, budgets and control The long-range plans: describes factors and forces affecting companies during next several years. It inclulong-term objectives, the main marketing strategies used to attain them and the resources required. Reviewupdated each year.Strategic plan: involves adapting the firm to take advantage of opportunities in its constantly chenvironment. It is the process of developing and maintaining a strategic fit between the companies gocapabilities and its changing marketing opportunities.

Object Type Term

Who are we? Where do we go? Strategic development plan 5 years and +

In which market? with which offers? Marketing plan 3-5 years

By means of what/ Commercial action plan 1 year Typical structure of a marketing plan:(section 12.10 slide 4)

STRATEGIC PLANNINGSet the stage for the marketing plan, start with its overall purpose and mission.The planning process involves four stages: Analysis, planning, implementation and control

+ Analysis:SWOT+ Planning: what company wants to do with each Biz unit deciding marketing strategies to atoverall strategic objectives. Marketing, product or brands are at the centre of this process.+ Implementation:turn strategic plans into action.+ Control: measuring and evaluating the results of plan and activities, and taking corrective actimake sure objectives and being achievedMission planning:+ Remember the general mission of the organization+ Invisible hand that guides all choices of the enterprise24739645.doc11/11/2009 0:33:06 a11/p11.Page 30 of 33


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THE STRATEGIC PLAN:Contains the mission, the strategic objectives, the strategic audit, SWOT analysis, portfolio analysis, oband strategiesMission:purpose of a company. Set by founder. Should be Market-orientedWhat business are we in? Who are our customers? What are we in business for? What sort of business areMission should not too narrow or too broad. It should be realistic, specific, based on distinctive competemotivating.Visions guide the best missions.Strategic objectives:Mission to be turned into S.O to guide management.Objectives: for example: to achieve a 15 per cent market share, a 20 percent pre-tax profit on sales a percent pre-tax profit on investment. If current market share is only 10 per cent, the question needs anWhere are the extra sales to come from? From the competition, by increasing usage rate, by adding, and s

Objectives:Marketing objectives: sales volume / turnover / market shares / distribution coverage ratio

Consumer objectives: awareness rate/ fidelity rate/ traits (net tieu bieu) of imageFinancial objectives: Contributions by products/ global marketing contribution/ return on c

invested.Strategic Audit: external (marketing environment: market competition, biz & economic environmeninternal audit (all aspects of the company, evaluation of entire value chain)SWOT analysisdraws the critical strengths; weaknesses, opportunities and threats (SWOT) from the staudit. The audit contains a wealth of data of differing importance and reliability. SWOT analysis distils thto show the critical items from the internal and external audit. The number of items is small for fcommunications, and they show where a business should focus its attention.> External analysis = Opportunities and Threats: to anticipate important developments that can have imon the firm:

+ Environment: political & legislature/ economic climate /socio-cultural (Demographic chIncreasing single parenthood, dual-income families and ageing, the aged population)/ technofactors+ Market: qualitative and quantitative analysis on the clients/ purchasing advisors/ distribution/ pressure+ The competitor: who are they? What are they? Their strength and weaknesses, images

> Internal analysis = Strengths and Weaknesses: all features relating to critical success factors.+ Breaking down of activity and profitability by products/ market trend

+ Analysis of positioning by products+ Research on strengths weaknesses about: products/ prices/ distribution modes/ sale

communication/ commercial organization/ sales administration/ control system..Strengths: Market leader in the market. Skill, Technology DistributionWeaknesses: Number in the market. Brand: little known, wide range, low skills, poor performanceThe weaknesses suggest a need for more focus (simplifying the brand structure and concentrat some weak aspects)

> Diagnosis:

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Do my strengths allow me to take advantage of opportunities in the market and cope with foreseeathreats?Are my weaknesses serious considering the evolution of external environment?Forecast; which will be my situation in three years if I maintain the present marketing strategy?

IV. MARKETING CONTROL

MARKETING WITHIN STRATEGIC PLANNING (c Them Cho Ph n Marketing Strategy.)Portfolio analysis:

The Business Portfolio is the collection of businesses and products that make up the company. It is a link between the overall stcompany and those of its parts. Biz portfolio must fit the company's strengths and weaknesses to opportunities in the environmestrong resources into its more profitable businesses and phase down or drop its weaker ones.

A strategic business unit (SBU) is a unit of the company that has a separate mission and objectives, and which can bindependently from other company businesses. An SBU can be a company division, a product line within a division, or sometim product or brand.

Most standard portfolio-analysis methods evaluate SBUs on two important dimensions: the attractiveness of the SBU's market oand the strength of the SBU's position in that market or industry.

Developing growth strategies

The product/market expansion grid : a useful device for identifying growth opportunities. This shows four routes to growdevelopment, new markets (penetration), new products (pdt development) and diversification.

Planning Functional Strategies

Strategic plan establishes what kinds of business the company will be in and its objectives for each. Then, within each businessdetailed planning takes place. The main functional departments in each unit - marketing, finance, accounting, buying, manu personnel and others - must work together to accomplish strategic objectives.

Each functional department deals with different publics to obtain resources such as cash, labor, raw materials, research imanufacturing processes, For example, marketing brings in revenues by negotiating exchanges with consumers. Financeexchanges with lenders and stockholders to obtain cash. Thus the marketing and finance departments must work together to obtfunds. Similarly, the personnel department supplies labor, and the buying department obtains materials needed for operamanufacturing.

Marketing's Role in Strategic Planning

There is much overlap between overall company strategy and marketing strategy.

Marketing: consumer needs and the company's ability to satisfy them -> guide the company mission and objectives. Moststrategic planning deals with marketing variables - market share, market development, growth - and it is sometimes.

Marketing plays a key role in the company's strategic planning in several ways:

1st: provides a guiding philosophy (needs of important consumer groups).

2nd: provides inputs to strategic planners by helping to identify attractive market opportunities and by assessing the firm's potenadvantage of them

Finally, within individual business units, marketing designs strategiesfor reaching the unit's objectives.

->Marketing management must manage demand to the level decided upon by the strategic planning prepared at headquarters.helps to assess each business unit's potential, set objectives for it and then achieve those objectives.Marketing and the Other Business Functions

Customers are attracted by promises and held by satisfaction. Marketing defines the promise and ensures its delivery. Howeveactual consumer satisfaction is affected by the performance of other departments,all functions should work together to sense, serve asatisfy customer needs. Marketing plays an integrative role in ensuring that all departments work together towards consumer sati

Conflict between Departments

Ideally, all the different functions should blend to achieve consumer satisfaction. In practice, departmental relations are full of comisunderstandings.

Customer satisfaction requires a total company effort to deliver superior value to target customers. Creating value for buyers is than a 'marketing function';

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Fundamental Martketing - Summary

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