Vo Hoang Yen Nhi: Marketing Processes and Planning (5033) Report

This report examines marketing processes and planning, with a focus on the fashion industry and the company ZARA. The report begins with an introduction to marketing, defining it as the process of creating customer value and building relationships. It explores the importance of marketing, its key roles, and the core concepts of needs, wants, demands, products, services, value, satisfaction, exchange, relationships, and markets. The report then analyzes the role and responsibilities of the marketing department, providing an overview of ZARA as a case study. It discusses the marketing environment, including micro and macro environmental factors that influence marketing efforts. The conclusion highlights ZARA's success in the global fashion market based on the marketing environment. The report references relevant sources such as Kotler and Armstrong's "Principles of Marketing" and includes a link to a VNExpress International article about the Vietnamese fashion market.

MARKETING PROCESSES AND PLANNING (5033)
INSTRUCTOR:Mr. Dang Son Tung
UNIT 2
INDIVIDUAL
ASSIGNMENT
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By Vo Hoang Yen Nhi/GBH1010
[Draft]

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Preface
“Major international brands are setting up shop in Vietnam and expanding
quickly to tap a rapidly growing fashion market.” (VNexpress International,
2019)
Vietnam, with its young demographic, growing incomes and 95 million
population, is considered a hugely promising market. Foreign brands are
attracted to its 15-20 percent annual growth, according to the chairman of the
Vietnam Retailers Association, Dinh Thi My Loan.
Vietnamese consumers are also shifting towards prioritizing items like clothes
and fashion. In a report released last year, market research firm Nielsen said
clothes were Vietnamese consumers’ third spending priority after food and
saving.
Laura McCullough, a senior Nielsen executive, said: “The change in the level of
wealth of Vietnamese people enables them to buy international standard
products and services. More and more Vietnamese are choosing to buy luxury
goods or exclusive products.”
Thanks to the Vietnamese fondness for fast fashion, ZARA’s revenues in
Vietnam doubled to $73.27 million last year, four times its Thailand sales, the
company said in its latest financial report.
To go further, this script will provide introduction and analysis to Marketing,
and its influence on the fashion industry, particularly, with ZARA organisation.

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Introduction
1. Definition of Marketing
In fact, Marketing is understood in many ways. People think marketing is
advertising. People think marketing is the retail market. But the essence of
marketing is “The process by which companies create value for customers and
build strong customer relationships in order to capture value from customers
in return”. (Kotler & Armstrong, 2014)
Overview
1. How important is Marketing
Marketing allows businesses to maintain long-term relationships with
their audience. It is an ongoing strategy that creates customer
engagement which is a path to business flourishment.
2. The key roles of Marketing
As Marketing becomes a significant function in every business, so for it
to be successful, according to Kotler & Armstrong, the marketer needs
to understand the five core customer and Marketing concepts:
I. Needs wants and demands
In short, Needs are what satisfy the basic requirements, a part of
human makeup; Wants are shaped by culture and personality, which

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are directed requests of specific types of products; and Demands are
when Wants are back having the ability and willingness to pay.
II. Products and services
Products are anything that can be offered to satisfy customer
requirements, which can be called “satisfier”, “resource” or “marketing
offer”.
Services are basically one kind of product.
III. Value, satisfaction, quality
(Customer) Value: The difference between the gained value from how
customers own and use a type of product, and the cost of obtaining
the product. While the value gained is not necessarily monetary, and so
is the cost of obtaining.
(Customer) Satisfaction: Perceived performance relative to
expectations.
Quality: The ability to satisfy customer needs, which ends up with their
Satisfaction. Hence, Quality is closely related to Satisfaction.
IV. Exchange, transactions, relationships
Exchange: Offering something such as money, product, or service, in
return for obtaining a desired object from someone.
Transaction: An unit of measurement in Marketing and trade of values
between two parties. There are two kinds of transactions, which are
Monetary transactions, and Barter transactions.

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Relationship (Marketing): Going beyond short-term to long-term
relationships with valued customers, partners, etc. This essentially
needs a Marketing Network which includes the company, and all its
supporting stakeholders.
V. Markets
Market - Economist’s definition: A virtual or physical place where
buyers and sellers meet.
Market - Marketer’s definition: The set of actual and potential buyers
of a product, where the sellers are labeled as the “industry”.
Industry - Marketer’s definition: A product’s seller.

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Role and Responsibilities of Marketing
As well-known, the Marketing Department plays a vital role in creating value
for customers and building customer relationships. It serves as the face of a
company, coordinating and producing all materials representing the
business. It is the Marketing Department's job to reach out to prospects,
customers, investors, and/or the community while creating an overarching
image that represents the company in a positive light. And to understand
thoroughly, this section will analyse more about the Marketing Environment
in detail.
1. Overview: The company
ZARA is a Spanish clothing retailer based in Galicia, Spain. Founded by
Amancio Ortega in 1975, it is the flagship chain store of the Inditex group, the
world's largest apparel retailer. ... Zara has consistently acted as a pioneer in
fast fashion based on a highly responsive supply chain.
ZARA is considered one of the world's largest international fashion
companies according to BOF (the Business of Fashion). The company belongs
to Inditex, the world’s biggest fashion group.
Spanish fashion brand ZARA entered Vietnam in 2016 but has so far only sold
products through its two stores in Hanoi and Ho Chi Minh City.
As a big-name company, it is notable that the Marketing Department takes
part of the responsibility for their success.

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2. The Marketing Department
3. The Marketing Environment
Overview: Actors and forces outside marketing ... that affect marketing
management's ability to develop and maintain successful transactions with
its target customers. = All external forces affecting the result of a company's
marketing efforts Includes opportunities and threats. (Kotler & Armstrong,
2016)
a. Microenvironment
- The company itself:
- Suppliers:
- Marketing intermediaries:
- Customers:
- Competitors:
- Publics:
b. Macroenvironment
- Demographic:
- Economic:
- Natural:
- Technological:
- Political:
- Cultural:
In conclusion,based on the Marketing Environment, ZARA has made it
successful in the worldwide Fashion Market...

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Reference list
KOTLER, P. and ARMSTRONG, G. (2016) Principles of Marketing.7th Ed London:
Pearson.
VnExpress International. [Online] VnExpress International – Latest news,
business, travel, and analysis from Vietnam. Available at:
https://e.vnexpress.net/news/business/industries/foreign-brands-eager-to-ent
er-booming-fashion-market-4009814.html.
Business Of Fashion (2019). BoF Careers | The Business of Fashion. [Online]
The Business of Fashion. Available at:
https://www.businessoffashion.com/organisations/zara.