MARKETING SECTION

MARKETING
CHAPTER 1:
BASIC MARKETING CONCEPTS & MARKETING PROCESS
1.1. What is marketing?
1.1.1. Definition of marketing
A function of business among other business functions, as production, accounting,
human resource management, R&D, etc.
Aims to connect the organization to its customers.
Started from product conception to consumption.
American Marketing Association (2005) added 2 new contents: Delivering value to
customers and managing customer relationships.
=> Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging value with others.
1.1.2. Marketing is about managing profitable customer relationships
Attracting new customers.
Retaining and growing, current customers.
1.2. The marketing process
1.2.1. Create value for customers and build customer relationships
Understand the marketplace and customer needs and wants

Design a customer-driven marketing strategy

Construct an integrated marketing program that delivers superior value

Build profitable relationships and create customer delight

1.2.1.1. Understanding the marketplace and customer needs
Consumers needs, wants and demand:

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- Needs: State of felt deprivation including physical (food, clothing, warmth, safety,
), social (belonging and affection), and individual needs (knowledge and selfexpression).
- Wants: Form that a human need takes as shaped by culture and invidual
personality (KFC, bread, rice,).
- Demands: Human wants backed by buying power (money).
Markets are the set of actual and potential buyers of a product.
Suppliers Company & competitors Marketing intermediaries Consumers
Market offerings:
- Marketing offer: Combination of products, services, information or experiences
that satisfy a need or want. Offer may include services, activities, people, places,
information or ideas.
+ Products: Anything that can be offered to a market to satisfy a need or want.
+ Services: Activities or benefit offered for sale that is essentially intangible and
doesnt result in the ownership of anything.
- Marketing myopia is focusing only on existing wants and losing sight of
underlying consumer needs.
Value and satisfaction:
- Value: Customers form expectations regarding value => Marketers must deliver
value to customers.
- Perceived value: The customers evaluation of the difference between benefits and
costs. Customers often dont judge values and costs accurately or objectively.
- Satisfaction: Products perceived performance relative to customers expectations.
A satisfied customer will buy again and tell others about their good experience.
Customer-driven quality:
- Customer value: Value gained from owning a product and costs of obtaining the product.
- Customer satisfaction: Products perceived performance in delivering value
relative to buyers expectations.
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- Total quality management: Involves improving the quality of products, services,

and business processes.
To understand the marketplace and customer needs: Research customers and the
marketplace, manage marketing information and customer data.
1.2.1.2. Designing a customer-driven marketing strategy
Selecting customers to serve (market segmentation & target marketing).
Choosing a value proposition (differentiation & positioning).
Marketing management orientations:
- Production concept: Customer will favor products that are available and
affordable.
=> Improve production and distribution.
- Product concept: Consumers will favor products that offer the most in quality,
performance, and innovative features.
=> Make continuous product improvements.
- Selling concept: Consumers will not buy enough without a large scale selling and
promotion effort.
=> Push for more sales.
- Marketing concept: The idea that achieving organizational goals depends on
knowing the needs and wants of the target markets and delivering the desired
satisfactions better than competitors do.
- Societal marketing concept: The idea that a company should make good marketing
decisions by considering consumers wants (satisfaction), the companys requirements
(profits), consumers long-term interests, and societys long-run interests (human welfare).
Starting point Focus Means Ends
The selling concept:
Factory Existing products Selling & Promoting Profits through sales volume
The marketing concept:
Market Customer needs Integrated marketing Profits through cust. satisfaction
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1.2.1.3. Preparing and integrated marketing plan and program

The marketing mix is the set of tools (4Ps) the firm uses to implement its
marketing strategy. It includes product, price, promotion, and place.
- Product - goods, services, features, package, brand, => Build strong brands.
- Place - channel, exposure, wholesale, retail, logistics, => Manage demand &
supply chains
- Promotion - advertise, promote, sales, media, publicity, => Communicate the
value proposition.
- Price - profit, units, discounts, allowances, terms, => Create real value.
Integrated marketing program is a comprehensive plan that commnunicates and
delivers the intended value to chosen customers.
1.2.1.4. Building customer relationships
Customer relationship management (CRM): Build strong relationships with
chosen customers.
- The overall process of building and maintaining profitable customer relationships
by delivering superior customer value and satisfaction.
- Use technology to gain insight into the behavior of customers and the value of
those customers.
- A business can:
+ Provide better customer service;
+ Make call centers more efficient;
+ Help sales staff close deals faster;
+ Simplify marketing and sales processes;
+ Based on customer attributes, companies can customize market offerings,
services, programs, messages, and media,;
+ Reduces the rate of customer defection.
Partner relationship management: Build strong relationships with marketing partners.
1.2.2. Capture value from customers in return
Capture value from customers to create profits and customer equity.
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Customer loyalty and retention:

- Customer delight leads to emotional relationships and loyalty.
- Customer Lifetime Value shows true worth of a customer.
=> Create satisfied, loyal customers.
Share of customer is the portion of the customers purchasing that a company gets
in its product categories.
- Share of customers purchase in a product category.
- Achieved through offering greater variety, cross-sell and up-sell strategies.
=> Increase share of market & share of customer.
Customer equity:
- The combined customer lifetime values of all current and potential customers.
- Measures a firms performance, but in a manner that looks to the future.
- Choosing the best customers is key.
- Building the right relationships with the right customers involves treating
customers as assets that need to be managed and maximized.
- Different types of customers require different relationship management strategies:
Build the right relationships with the right customers.
=> Capture customer lifetime value.

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CHAPTER 2:
MARKETING ENVIRONMENT
2.1. Marketing environment
The actors and forces outside marketing that affect marketing managements ability to
build and maintain successful relationships with customers.
2.2. Aspects of the marketing environment
2.2.1. Micro-environment
Actors close to the company.
Includes all the factors close to the company that affect positively or negatively, its
ability to create value for and relationship with its customers as competitor, publics,
customers, marketing intermediaries, supplies,
2.2.2. Macro-environment
Larger societal forces that affect the micro-environment.
Including: Demographic environment, natural environment, political environment,
cultural environment, technological environment, economic environment,

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CHAPTER 3:
CONSUMER MARKETS AND CONSUMER BUYER BEHAVIOUR
3.1. Model of consumer behavior
Consumer buyer behavior refers to the buying behavior of final consumers individuals and households who buy goods and services for personal consumption.
Consumer market refers to all of the personal consumption of final consumers.
3.2. Characteristics affecting consumer behavior
3.2.1. Cultural factors
Culture is the learned value, perceptions, wants, and behavior from family and
other important institutions. Ex: Achievement & success, individualism, freedom, hard
work, activity and involvement, effciency and practicality, material comfort,
youthfulness, and fitness and health,
Subculture are groups of people within a culture with shared value systems based
on common life experiences and situations, including nationalities, religions, racial
groups, and geographic regions, Ex: Hispanic, African, American, Asian, Mature
consumers,
Social classes are societys relatively permanent and ordered divisions whose
members share similar values, interests, and behaviors.
- Measured by a combination of occupation, income, education, wealth, and other
variables.
- Marketers are interested in social class because people within a given social class
tend to exhibit similar buying behavior.
- Social classes show distinct product and brand preferences in areas such as
clothing, home furnishings, leisure activity, and automobiles.
3.2.2. Social factors
Groups & social networks
- Membership groups are groups with direct influence and to which a person
belongs.
- Aspirational groups are groups an individual wishes to belong to.
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- Reference groups are groups that form a comparison or reference in forming

attitudes or behaviors.
- Word-of-mouth influence & buzz marketing:
+ Opinion leaders are people within a reference group who exert social influence
on others.
+ Also called influentials or leading adopters.
+ Marketers identify them to use as brand ambassadors.
- Online social networks are online communities where people socialize or
exchange information and opinions, including blogs, social networking sites
(facebook), virtual worlds (second life),
Family is the most important consumer-buying organization in society.
Social roles and status are the groups, family, clubs and organizations that a person
belongs to that can define role and social status.
3.2.3. Personal factors
Age & life-cycle stage
RBC Royal Band Stages: - Youth: Younger than 18; - Getting started: 18 - 35; Builders: 35 - 50; - Accumulators: 50 - 60; - Preservers: Over 60.
Occupation affects the goods and services bought by consumers.
Economic situation includes trends in personal income, savings, interest rates.
Lifestyle is a persons pattern of living as expressed in his or her psychographics.
Measures a consumers AIOs (activities, interests, opinions) to capture information about
a persons pattern of acting and interacting in the environment.
Personality and self-concept: Personality refers to the unique psychological
characteristics that lead to consistent and lasting responses to the consumers
environment, as dominance, autonomy, defensiveness, adaptability, aggressiveness,
3.2.4. Psychological factors
Motivation:
- A motive is a need that is sufficiently pressing to direct the person to seek
satisfaction.
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- Motivation research refers to qualitative research designed to probe consumers

hidden, subconscious motivations.
- Maslows Hierarchy of Needs (from lowest to highest): Physiological needs
(hunger, thirst) Safety needs (security, protection) Social needs (sense of
belonging, love) Esteem needs (self-esteem, recognition, status) Selfactualization needs (self-development and realization).
Perception is the process by which people select organize, and interpret
information to form a meaningful picture of the world from three perceptual processes.
- Selective attention is the tendency for people to screen out most of the information
to which they are exposed.
- Selective distortion is the tendency for people to interpret information in a way
that will support what they already believe.
- Selective retention is the tendency to remember good points made out a brand they
favor and forget good points about competing brands.
Learning is the change in an individuals behavior arising from experience and
occurs through interplay of: Drives, stimuli, cues, responses, reinforcement,
Belief

is a descriptive thought that a person has about something based on

knowledge, opinion, faith.

Attitudes describe a persons relatively consistent evaluations, feelings, and
tendencies toward an object or idea.
3.3. Types of buying decision behavior
High involvement
Significant differences b/w
brands
Few differences b/w brands

Complex buying behavior

Dissonance-reducing
buying behavior

Low involvement
Variety-seeking buying
behavior
Habitual buying behavior

3.4. The buyer decision process

Need recog. Info. search Evaluation of alternatives Pur. decision Postpur.
3.4.1. Need recognition
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Occurs when the buyer recognizes a problem or need triggered by internal & external
stimuli.
3.4.2. Information search & sources of information
Personal sources - family & friends,
Commercial sources - advertising, internet,
Public sources - mass media, consumer organizations,
Experiential sources - handling, examining, using the product,
3.4.3. Evaluation of alternatives
How the consumer processes information to arrive at brand choices.
3.4.4. Purchase decision
The act by the consumer to buy the most preferred brand.
The purchase decision can be affected by attitudes of others, unexpected situational
factors.
3.4.5. Post-purchase decision
The satisfaction or dissatisfaction that the consumer feels about the purchase.

Relationship

between:

Consumers expectations

&

products perceived

performance.
The larger the gap between expectation and performance, the greater the
consumers dissatisfaction.
Cognitive dissonance is the discomfort caused by a post-purchase conflict.
Customer satisfaction is a key to building profitable relationships with consumers to keeping and growing consumers and reaping their customer lifetime value.
3.5. The buyer decision process for new products
Adoption process is the mental process an individual goes through from first
learning about an innovation to final regular use.
Stages in the process include:
Awareness Interest Evaluation Trial Adoption

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Influence of product characteristics on rate of adoption - relative advantage,

compatibility, complexity, divisibilty, communicability.

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CHAPTER 4:
BUSINESS MARKETS AND BUSINESS BUYER BEHAVIOR
4.1. Model of business buyer behavior
The environment - Marketing & other stimuli (4Ps, economic, technological, political,
cultural, competitive)

The buying organization (center) - Buyers black box (buyer characteristics interpersonal and individual influences & buying decision process)

Buyers responses - Product or service choice, supplier choice, brand choice, dealer choice,
purchase amount, order quantities, delivery terms and times, service terms, payment,)
4.2. Business to business market
Sales to businesses rather than consumers.
Example: IBM
- Business to business - sale of a personal computer to be used in an office environment.
- Consumer marketing - sale of a personal computer for use by a student while at
college.
4.3. Business markets
4.3.1. Definition
Business market is all organizations that buy goods and services to use in the
production of other products & services that are sold, rented, or supplied to others.
Business markets involve many more dollars and items do consumer markets.
4.3.2. Characteristics
Marketing structure and demand - compared to consumer markets:
- Business markets have fewer but larger customers.
- Business customers are concentrated geographically.
- Demand is different: Derived from final consumer demand; price inelastic;
fluctuates more, and changes more quickly.
Nature of the buying unit - compared to consumer purchases:
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Business purchases involve more decision participants & a more professional

purchasing effort.
Types of decisions and the decision process - compared to consumer purchases:
- Business buyers face more complex buying decisions.
- The buying process is more formalized.
- Buyers and sellers work together closely and build long-term relationships.
4.3.3. Business markets vs. consumer markets
Business markets

Consumer markets

Nature of the buying unit

- More participants in the purchase.
- Few participants in the purchase.
- Professional purchasing effort.
- Amateur purchasing effort.
Types of decisions & decisions process
- More complex decisions.
- Simpler decisions.
- Often higher risk; more at stake.

- Usually limited risk.

- Process is more formalized.

- No formal info search or decision.

- Buyer/seller depend on one another.

- Buyer & seller have limited interface.

- Build close long-term relationships with - Psychology can be important.

customers.
- Predominantly sales force.

Marketing mix
- Mostly mass communications.

- Price is often negotiated.

- Price is fixed.

- Advertising and other communications - Advertising is emotional or rational;

are frequently technical.

reminder, persuasive, comparative, or

awareness.

4.4. Major types of buying situations

-

Straight rebuy
Modified rebuy
New task
Reordering
without - Requires modification to prior - First time purchase.

modification.
Straight rebuy

purchase.
Modified rebuy

New task

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- Most common, most - A window of opportunity for - Rarest, most comples type.
simple.
-

other suppliers.

Small

buying

- Big buying unit.

unit - An aging newtask or a - Many people involved.

(generally one person).

rejuvenated straight re-buy.

- Lots of indirect influence.

- Low perceived risk.

- Compared to new buy:

Slower

than

usual

- So long as quality is

+ Smaller buying unit.

processes.

acceptable

+ More rapid decision.

- High risk.

+ Less risk.

- Buying unit gathers and

+ In supplier wins.
+ Out supplier cant get an
appointment.

+ Performance & price weighs lots of information.

considered

- Anyone can win.

- Out supplier salespeople - Compared to straight re-buy:

- Performance matters (price

must wait for in supplier to

+ Larger buying unit.

not always as much).

fail

+ Slower decision.

or

requirements

to

change.
+ More risk.
4.5. Participants in the business buying process
Gatekeepers (control the flow of information to others), users, influencers (technical
personnel,), buyers, deciders, Buying center.
4.6. Major influences on business buyer behavior
Environmental: Economics developments, supply conditions, technological
change, political & regulatory developments, competitive developments, culture &
customs,
Organizational: Objectives, policies, procedures, organizational structure, system,

Interpersonal: Authority, status, empathy, persuasiveness,

Individual: Age, education, job position, personality, risk attitudes,
4.7. Satges of the business buying process
Stage 1: Problem recognition.
Stage 2: General need descritption.
Stage 3: Product specification - value analysis helps to reduce costs.
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Stage 4: Supplier search - supplier development.

Stage 5: Proposal soliciation - the buyer invites qualified suppliers to submit
proposals.
Stage 6: Supplier selection.
Stage 7: Order-routine specification - blanket contracts are often used for maintenance,
repair and operating items.
Stage 8: Performance review.
Business buying on the internet
E-procurement is growing rapidly.
Reverse auctions account for much of the online purchasing activity.
E-procurement offers many benefits: Access to new suppliers; lower purchasing
costs; quicker order processing and delivery.
4.8. Institutional and government markets
4.8.1. Institutional market
Consist of churches, schools, prisons, hospitals, nursing homes and other
institutions that provide goods & services to people in their care.
Often characterised by low budgets & captive patrons.
Marketers may develop separate divisions & marketing mixes to service
institutional markets.
The background: Institutional markets are often overlooked in B2B marketing.
The potential: This market is somewhat recession-resistant; great target for hard
economic times.
How to sell them: Catalogs are often the best method of contact.
Crossover potential: Same consumer catalogue items could be targeted to
institutions.
Timing is important: Appropriate times to mail vary by institution. Ex: August is a
good month for schools, but often a poor time for other institution due to worker
vacations. Understanding when government funding becomes available, or when the new
budget year begins can help. Many institutions purchase early, then run low on funds.
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4.8.2. Government markets

Features: Specialized buying, public review, outside publics, open bids, negotiated contracts.
Governmental units - federal, state, and local that purchase or rent goods and
services for carrying out the main functions of government.
More than 82,000 buying units.
Require suppliers to submit bids.
Favor domestic suppliers.
Extensive paperwork is required from suppliers.
Government buyers often favor: Depressed business firms & areas; small
businesses; minority-owned businesses; firms which follow non-discriminatory practices.
Most firms that sell to government buyers are not marketing-oriented. Some
companies have separate government marketing departments.
Much of government buying has migrated online. Government buying online:
Procurement gateway allows authorized defense and civillian agencies to buy online.

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CHAPTER 5:
MARKET SEGMENTATION
5.1. Definition
Market segmentation is dividing a market into distinct groups with distinct needs,
characteristics, or behavior who might require separate products or marketing mixes.
5.2. Steps in market segmentation, targeting, and positioning
5.2.1. Market segmentation
1. Identify bases for segmenting the market.
2. Develop segment profiles.
Segmenting consumer markets:
- Geographic segmentation: Marketing mixes are customized geographically. Ex: World
region, country; country region; city; city or metro size; neighborhood; density; climate;
- Demographic segmentation: Most popular type, closely related to needs, wants
and usage rates. Ex: Age; gender; family size; family life cycle; income; ethnicity;
occupation; education; religion; generation; nationality;
- Psychographic segmentation: Lifestyle; social class; personality-based segmentation;
- Behavioral segmentation: Typically done first. Ex: Occasions; loyalty status;
benefits; user status; user rates; readiness stage; attitude toward the product;
- Using multiple segmentation variables.
Segmenting business markets:
- Demographic segmentation: Industry; company size; location;
- Operating variables: Technology; usage status; customer capabilities;
- Purchasing approaches.
- Situational factors: Urgency; specific application; size of order;
- Personal characteristics: Buyer-seller similarity; attitudes toward risk; loyalty;
Segmenting international markets:
- Geographic segmentation: Location or region.
- Economic factors: Population income or level of economic development.
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- Political and legal factors: Type/stability of government; monetary regulations;

amount of bureaucracy;
- Cultural factors: Language; religion; values; attitudes; customs; behavioral patterns;

Requirements for effective segmentation:

- Measurable: Size; purchasing power; profile of segment;
- Accessible: Can be reached and served.
- Substantial: Large & profitable enough to serve.
- Differentiable: Respond differently.
- Actionable: Effective programs can be developed.
5.2.2. Target marketing
3. Develop measure of segment attractiveness.
2. Select target segments.
Evaluating market segments look at 3 factors:
- Segment size & growth: Current segment sales; growth rates; expected profitability
for various segments.
- Segment structural attractiveness:
+ Level of competition - many strong & aggressive competitors => less attractive
segment.
+ Substitute products - may limit prices & profits in a segment.
+ Power of buyers - who control the prices or reduce the quality or quantity of
ordered goods & services.
+ Powerful suppliers.
- Company objectives & resources.
Market targeting can be carried out at several different levels. The companies can
target very broadly (undifferentiated marketing/mass marketing), very narrowly
(micromarketing), or somewhere in between (differentiated or concentrated marketing).

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- Undifferentiated (mass) marketing: Marketing targets the whole market with one
offer - mass marketing; focus on common needs rather than whats different => All
buyers in 1 segment.
- Differentiated (segmented) marketing: Marketing targets several different market
segments and designs separate offers for each - goal is to achieve higher sales &
stronger position; more expensive than undifferentiated marketing => Segment 1,
segment 2,...
- Concentrated marketing (niche marketing): Using concentrated marketing
strategy, instead of going after a small share of a large market, the firm goes after a
large share of one or a few smaller segments or niches.
+ Limited company resources.
+ Knowledge of the market.
+ More effective and efficient.
- Micromarketing: The practice of tailoring products & marketing programs to the
needs and wants of specific individuals and local customer groups, including local
marketing & individual marketing,
Choosing a target marketing strategy requires consideration of company
resources; the degree of product variability; products life-cycle stage (introduction
growth maturity declince); competitors marketing strategies.
5.2.3. Market positioning
5. Develop positioning for target segments.
6. Develop a marketing mix for each segment.
Positioning: The place the product occupies in consumers minds relative to
competing products; typically defined by consumers on the basis of important attributes.
Examples:
- Tide is positioned as a powerfull, all-purpose family detergent.
- Nissan Versa & Honda Fit are positioned on economy; Mecredes & Cadillac on
luxury; Porsche & BMW on performance; Toyota positions its fuel-efficient.
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Choosing a positioning strategy:

- Identifying possible competitive advantages - many potential sources of
differntiation exist as product, service, channel, people, image.
- Choosing right competitve advantage - how many differences to promote? Unique
selling proposition, positioning errors to avoid; which differences to promote?
Important, distinctive, superior, communicable, preemptive, affordable, profitable,
Selecting an overall positioning strategy - Value proposition is the full mix of
benefits upon which a brand is positioned.
Developing a positioning statement - Company and brand positioning should be
summed up in a positioning statement. The statement should follow the form:
To (target segment & need) our (brand) is (concept) that (poiny of different)
Ex: To busy, mobile professionals who need to always be in the loop, BlackBerry is a
wireless connectivity solution that give you an easier, more reliable way to stay
connected to date, people, and resources while on the go.

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CHAPTER 6:
MARKETING MIX
6.1. Products, services and brands
6.1.1. Products & services
Product is anything that can be offered in a market for attention, acquisition, use, or
consumption that might satisfy a need or want.
Product includes more than tangible objects, such as cars, computers, or cell
phones. Broadly defined, product also include services (events, persons, places,
organizations, ideas, or mixes of these).
6.1.2. Levels of products & services
Core customer values (core benefits) represent what the buyer is really buying.
Actual product represents the design, brand name, features, quality level, and
packaging that delivers the core benefit to the customer.
Augmented product represents additional services or benefits of the actual product
as delivery & credit, product support, warranty, after-sale service,
6.1.3. Product classifications - consumer products
Convenience products

Shopping products

- Buy frequently & immediately.

- Buy less frequently.

- Low priced.

- Gather product information.

- Many purchase locations.

- Fewer purchase locations.

- Includes: Staple goods, impulse goods, - Compare for: Suitability & quality; price
emergency goods,

& style,

Newspapers, candy, fast food,

Specialty products

Furniture, cars, appliances,

Unsought products

- Special purchase efforts.

- New innovations.

- Unique characteristics.

- Products consumers dont want to think

- Brand identification.

about.

- Few purchase locations.

- Require much advertising & personal

Medical services, designer clothes, high- selling.

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end electronics,

Life insurance, funeral services, blood

donations,

6.1.4. Product & service decisions

6.1.4.1. Individual product & service decisions
Brand is a name, term, sign, symbol, design, or a combination of these, that
identifies the maker or sellers of a product or service.
Brand equity is the differential effect that the brand name has on customer response
to the product & its marketing.
Brand gives the seller many advantages:
- Brand becomes the basis on which a whole story can be built about a products
special qualities.
- Legal protection for unique product features that otherwise might be copied by
competitors.
- Branding helps the sell to segment market.
Branding helps buyers in many ways:
- Help consumers identify products that might benefit them.
- Brand also say something about product quality and consistency.
Product attributes Branding Packaging Labeling Product support services
Innovative product design can help revitalize a company, such as with the Apple iMac.
Packaging involves designing & producing the container or wrapper for a product.
Packaging perform many sales tasks - from attracting attention to describing the product
to making the sale.
Labels identify the product or brand, describe attributes, and provide promotion.
Labels perform several functions:
- Identifies the product or brand.
- Describe several things about the product - who made it, where it was made, when
it was made, its contents, how it is to be used, and how to use it safety,
- Help to promote the brand, support its positioning, and connect with customers.

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- Labeling has been affected in recent times by unit pricing, open dating, and
nutritional labeling,
6.1.4.2. Product line decisions
Product line is a group of products that are closely related because they function in a
similar maner, are sold to the same customer groups, are marketed through the same types
of outlets, or fall within given price ranges. Product line length is the number of items in
the product line.
6.1.4.3. Product mix decisions
Product mix (product porfolio) consists of all the products and items that a
particular seller offers for sale.
Product mis has 4 important dimensions:
- Width refers to the number of different product lines the company carries.
- Length refers to the total number of items the companies carries within its product line.
- Depth refers to the number of versions offered of each product in the line.
- Consistency refers to how closely related the various product line are in end use,
production requirements, distribution channels, or some other way.
Ex: Sonys diverse portfolio consists of 4 primary product business worldwide:
Sony Electronics, Sony Computer Entertainment (Games), Sony Pictures Entertainments
(Movies, TV shows, music, DVDs), and Sony Financial Services (Life insurance,
banking, and other offerings). Each major Sony business consists of several product line Sony Electronics includes cameras, computers, TV, and home entertainment, etc. Each of
these lines contains many individual items - Sonys TV & home entertainment line
includes TVs, DVD players, digital home, etc.
6.2. Pricing & pricing strategies
Cust. perceptions of value Other inter-external considerations Product costs
6.2.1. Factors to consider when setting prices
6.2.1.1. Customer perceptions of value
Price floor: No profits below this price.
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Price ceiling: No demand above this price.

Cost-based pricing: Product driven
Design a good product Determine product costs Set price based on cost
Convince buyers of products value.
Value-based pricing: Customer driven. Value-based pricing uses the buyers
perceptions of value, not the sellers cost, as the key to pricing. Price is considered before
the marketing program is set.
Assess customer needs & value perceptions Set target price to match customer
perceived value Determine costs that can be incurred Design product to deliver
desired value at target price.
Good-value pricing offers the right combination of quality & good service to fair
price. Existing brands are being redesigned to offer more quality for a given price or the
same quality for less price.
Everyday low pricing involves charging a constant everyday low price with few or
no temporary price discounts.
High-low pricing (nh gi b bom) involves charging higher prices on an
everyday basis but running frequent promotions to lower prices temporarily on selected
items.
Value-added pricing attaches value-added features & services to differentiate
offers, support higher prices, & build pricing power.
Pricing power is the ability to escape price competition & to justify higher prices &
margins without losing market share.
6.2.1.2. Other internal & external consideration affecting price decisions
Other internal & external considerations include economic conditions, resellers
response to price, government, social concerns - Marketing strategy, objectives, and mix;
nature of the market and demand; competitors strategies and prices;
6.2.2. New product pricing strategies
Skimming price strategy - Pricing new products high to recover costs & make high
profits while competition is limited - Skim revenue layers from the market.
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MARKETING SECTION

- Product quality & image must support the price.

- Buyers must want the product at the price.
- Costs of producing the product in small volume should not cancel the advantage of
higher prices.
- Competitors should not be able to enter the market easily.
Penetration price strategy - Pricing products low with the hope of attracting more
buyers & discouraging other companies from competing in the market - Sets a low initial
price in order to penetrate the market quickly & deeply to attract a large number of
buyers quickly to gain market share.
- Price sensitive market.
- Inverse relationship of production & distribution cost to sales growth.
- Low prices must keep competition out of the market.
Product line pricing (nh gi chui) takes into account the cost differences
between products in the line, customer evaluation of their features & competitors prices.
Optional product pricing (nh gi thiu thn) takes into account optional or
accessory products along with the main product.
Captive product pricing (nh gi tri chn) involves products that must be used
along with the main product.
Two-part pricing involves breaking the price into fixed fee & variable usage fee.
By product pricing (nh gi n k) refers to products with little or no value
produced as a result of the main product. Producers will seek little or no profit other than
the cost to cover storage & delivery.
Product bundle pricing (nh gi bn km) combines several products at a reduced
price.
Other pricing strategies:
- Prestige pricing - nh gi ng cp.
- Leader pricing - nh gi lnh t.
- Decoy pricing - nh gi nh mi.
- Limit pricing - nh gi ngng ca.
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MARKETING SECTION

- Predatory pricing - nh gi ca c.
- PWYW pricing - nh gi ty tm.
- Freemium pricing - nh gi biu thm.
- Odd pricing - nh gi l.
6.3. Marketing channels
Channel efficiency - How intermediaries reduce the number of channel
transactions.
The nature & importance of marketing channels:
- How channel members add value: Information, promotion, contact, matching,
negotiation, physical distribution, financing, risk taking,
- How many intermediaries?
+ Intensive distribution: Stock product in as many outlets as possible.
+ Exclusive distribution: Granting a limited number of oultets the exclusive right
to sell product.
+ Selective distribution: Somewhere in between intensive & exclusive
distribution.
Intermodal transportation combines two or more modes of transportation - Fishyback
= water & trucks; Piggyback = trucks & rail; Trainship = water & rail; Airship = air & water.
6.4. Promotion
Promotion mix - The combination of promotional tools an organization uses to
persuasively communicate customer value & build customer relationships; the traditional
mix includes: Advertising, personal selling, sales promotion, public relations.
- Advertising is any paid form of non-personal presentation & promotion of ideas,
goods, or services by an identified sponsor - broadcast, print, internet, outdoor, direct mail,

- Sales promotion is the short-term incentives to encourage the purchase or sale of a

product or service - discounts, coupons, displays, demonstrations, sampling, sign-up
rebates, gifts, prize promotions,

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MARKETING SECTION

- Public relations involves building good relations with the companys various
publics by obtaining favorable publicity, building up a good corporate image &
handling or heading off unfavorable rumors, stories, & events - press releases/kits,
sponsorships, special events, web pages, press conferences, trade shows/exhibitions,
media-initiated coverage*,
- Personal selling is the personal presentation by the firms sales force for the
purpose of making sales & building customer relationships - sales presentations, trade
shows, incentive programs,...
- Personal communications: Selling, customer service, training, telemarketing, word
of mouth*,
- Instructional materials: Web sites, manuals, brochures, video/audio cassettes,
software CD-ROM, voice mail,
- Coporate design: Signage, interior dcor, vehicles, equipment, stationery, uniforms,
* Denotes communications originating from outside the organization.
Direct marketing involves making direct connections with carefully targeted
individual consumers to both obtain an immediate response & cultivate lasting customer
relationships - through the use of direct mail, telephone, direct-response television, email,
& the internet communicate directly with specific consumers - catalog, telemarketing,
kiosks,
Push promotional strategy - Producer (Marketing activites as personal selling,
trade promotion, other) Retailers & wholesalers (Marketing activities as personal
selling, advertising, sales promotion, other) Consumers.
Pull promotional strategy - Demand of Consumers Demand of Retailers &
wholesalers Producer (Marketing activities as consumers advertising, sales promotion,
other) Consumers.

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MARKETING SECTION

SAMPLE TEST
PHN I - TRC NGHIM (30 )
1. Vic gii thiu nhng tnh nng u vit ca 1 sn phm qua bao gi ca sn phm
c xem nh l:
a. Quan h cng chng b. Bn hng c nhn c. Bn hng qua bao gi

d. Qung co

2. Trong trng hp no sau y th doanh nghip nn ch ng tng gi?

a. Nng lc sn xut d tha

b. Cu qu mc

c. Th phn ang c xu hng gim

d. Nn kinh t ang suy thoi

3. Cng ty xe Bus H Ni gim gi v cho nhng hc sinh, sinh vin khi i xe bus. l
vic p dng chin lc:
a. Gi trn gi b. Gi 2 phn

c. Gi phn bit

d. Gi theo hnh nh e.

Gi

chit

khu
4. Khi sn phm ca doanh nghip c nhng khc bit so vi nhng sn phm cnh
tranh v s khc bit ny c khch hng chp nhn th doanh nghip nn:
a. nh gi theo chi ph sn xut

b. nh gi cao hn sn phm cnh tranh

c. nh gi thp hn sn phm cnh tranh

d. nh gi theo thi v

5. u im ca vic vn dng chin lc t tn nhn hiu cho ring tng loi sn phm
l:
a. Danh ting ca doanh nghip khng gn lin vi mc chp nhn sn phm
b. Chi ph cho vic gii thiu sn phm l thp hn
c. Vic gii thiu sn phm mi d dng hn
d. C a v b
6. Nu doanh nghip quyt nh b qua nhng khc bit ca cc on th trng v thm
nhp ton b th trng ln vi mt sn phm thng nht th iu c ngha l doanh
nghip thc hin Marketing:
a. a dng ha sp

b. i tr

c. Mc tiu

d. Thng nht

7. S trung thnh ca khch hng l 1 v d c th v tiu thc______ phn on th

trng:
a. a l

b. X hi

c. Tm l

d. Hnh vi
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MARKETING SECTION

8. Mt ngi m cc quyt nh ca anh ta tc ng n quyt nh cui cng ca ngi

khc c gi l:
a. Ngi quyt nh

b. Ngi nh hng

c. Ngi khi xng

d. Ngi mua sm

9. Mt khch hng c nh mua chic xe my A nhng li nhn c thng tin t mt

ngi bn ca mnh l dch v bo dng ca hng ny khng c tt lm. Thng tin trn
l:
a. Mt loi nhiu trong thng ip

b. Mt yu t cn tr quyt nh mua hng

c. Mt yu t cn nhc trc khi s dng

d. Thng tin th cp

10. Quan im_____cho rng ngi tiu dng a thch nhng sn phm c cht lng,
tnh nng v hnh thc tt nht v v vy doanh nghip cn tp trung n lc khng ngng
ci tin sn phm.
a. Sn xut

b. Sn phm

c. Dch v

d. Marketing

e. Bn hng

PHN II - NG SAI (10 )

1. Cc t chc phi li nhun khng cn thit phi lm marketing.
2. Mong mun ca con ngi l trng thi khi anh ta cm thy thiu thn mt ci g .
3. Nhng th khng th s m c nh dch v khng c coi l sn phm nh nh
ngha trong sch.
4. Mc tiu chnh ca ngi lm marketing l pht hin ra mong mun v nhu cu c kh
nng thanh ton ca con ngi.
5. Chin lc ht phn ngon l chin lc t gi bn cho mt sn phm mc thp nht
c th chim c phn ln th trng.
PHN III - T LUN (60 )
1. Chn 1 sn phm anh/ch a thch, m t vic phn khc th trng, xc nh khch
hng mc tiu v nh v hng ha trn th trng mc tiu ca sn phm (20 ).
2. Trn th trng xe gn my nc ta hin nay c rt nhiu cng ty tham gia kinh
doanh nhng phn tch k ra, chng ta thy rng tht s chng ch bao gm 4 nhm:
Nhm 1: Honda - hng c th phn ln nht.
Nhm 2: Piaggio, Yamaha, Suzuki, nhng hng c th phn ln v ang quyt
lit tranh ginh th trng vi Honda.
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MARKETING SECTION

Nhm 3: SYM, cc nhn hiu xe Hn Quc, cng l nhng hng c th phn ln

nhng cc sn phm a ra ch l hng m phng, bt chc cc hng ln trn (Daelim
m phng theo Dream, Attila m phng theo Spacy,).
Nhm 4: Cc hng xe Trung Quc, cc x nghip lp rp xe my ca VN, h n
tranh cnh tranh vi cc hng trn bng cc loi xe gn my cht lng thp, gi rt r.
=> R rng mi nhm i din cho 1 loi chin lc marketing cnh tranh.
a. Anh/ch hy cho bit nhm no ang thc hin chin lc marketing cnh tranh ca: (16
)
-

Ngi

dn

th

trng.
-

Ngi

thch

th

trng
- Ngi i theo th trng..
- Ngi in khuyt th trng..
b. Anh/ch ch ra nhng hot ng marketing in hnh ca cc cng ty trong nhm th
hin chin lc marketing cnh tranh ca h. (24 )

30