Marketing Principles Notebook: S3978188 - Topic 1: What is Marketing?

This marketing principles notebook, created by student Nguyen Minh Chau (S3978188), provides a comprehensive overview of essential marketing concepts. It begins by defining marketing and its core components, including understanding customer needs, wants, and demands, as well as market offerings. The notebook then delves into designing customer-driven marketing strategies, exploring market segmentation, targeting, and differentiation. It covers various marketing orientations and emphasizes the importance of building customer relationships through effective customer relationship management (CRM). Furthermore, the notebook examines the marketing environment, including micro and macroenvironmental factors, and discusses how to respond proactively to these factors. Finally, the notebook explores product, service, and branding strategies, including product classification, decision-making, and the significance of branding, packaging, and labeling in marketing. The content is aimed at students seeking to understand the core principles of marketing and is available on Desklib, a platform offering AI-based study tools.

Marketing Principle
Notebooks
Nguyen Minh Chau
S3978188

Topic 1: what is marketing?
Marketing is the process that engages customers, builds st
relationships, and creates customer value to capture value
customers in return.
Example: Heineken: bring them together, emotional value, c
Dior: make customers feel the same energy like soft pretty
Stage 1: understand the marketplace and custome
5 core customer and marketplace concepts
Customer needs, wants, and demands
Things are
essential such fas
food love, safer...
Things make us to
satisfy. Influenced
by cultural,
environmental, and
personal factors.
Desire of customers
goods/service in the
market and the
ability to pay for it.

Market offerings: goods, services, and experience
Physical products, services, activities or benefits offered for sale

Marketing myopia:
Attention to the specific products a company offers than to
benefits and experiences from customers
EX: Kodak's marketing myopia
Too confident with their existing successful film camera tha
ignored the suggestion by Steve sasson, which he recomm
should invest in a new type of camera (digital camera)
Customer value and satisfaction:
- Customers form expectations about the value and satisfac
different market offerings will bring, and buy accordingly
- creating the balance between customer expectations and
market's ability to deliver value.
Exchanges, transactions and markets.
Receiving goods or
services from others and
offering something in
return
A deal between two parties that
involves at least tho things of
values, agreed-upon
conditions and a time and of
place agreement
Marketing's unit of
measurement
There is a
combination of
all actual and
potential buyers
of a product or
service

Stage 2: Design a customer-driven marketing stra
Designing a customer-driven marketing strategy
Marketing management
Defined as the art and science
of choosing target markets
and building profitable
relationships
To find, attract, keep, and gr
target customers by creating
delivering, and communicati
superior customer value.
Select customers to serve
- Can serve well and profitably
- Dividing the market into segments
of customers (market segmentation)
and selecting which segments will be
suitable (target marketing)
Choose a value proposition
Marketing management orientations
Product concept.
- Available affordable
- Focus on improving production
and distribution efficiency
- Offer the most in qualify,
performance, and innovative
- Continuous product improve
Production concept

Selling concept
- Large scale selling
- Promotion effort
Consumers will buy
Marketing concept
- Understanding customer needs
- Desired satisfactions better than competitors do
- Make products suitable for local people
Societal marketing concept
- Considering consumers wants
- The company's requirements
- Consumers' long-term interests and society's long-run inte
community needs
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Stage 3: Preparing an integrated marketing plan an
- Create a need-satisfying market offering (product)
- Decide how much it will charge for the offer (price)
- Decide how it will make the offering available to target con
- Communicate with target customers about the offer and pe
its merits (promotion).
Stage 4: Building customer relationship
- Building and maintaining profitable customer relationships
delivering superior customer value and satisfaction
- Managing detailed information about individual customers
carefully managing customer touch points in order to maxim
customer loyalty
Relationship building blocks: customer value and satisfactio
Customer perceived value:
Customer satisfaction:
- Perceived performance < expectations => dissatisfied.
- Perceived performance = expectations => satisfied.
- Perceived performance > expectations => highly satisfied
Customer relationship management CRM)

Stage 5: Capturing value from customers
Creating customer loyalty and retention
- Customer lifetime value is the value of the entire stream o
that a customer would make over a lifetime of patronage
Growing share of customers:
Good CRM → increase their share of customers <- offer g
variety or train employees to cross-sell and up-sell to hel
more products and services to exist customers.
Building customer equity
- Customer equity is the total combined customer lifetime va
the company’s customers. The bigger the firm's customer eq
profitable and devoted its customers are.
- Building the right relationship with the right customers.
. Strangers: Don’t invest
anything in them.
• Butterflies & True Friends:
should invest and pay atten
to them.
• Barnacles: Firm may need
rid off this group, depends o
situation.

Topic 2: The marketing environment
- Marketing environment: actors and forces that affect man
ability to build and maintain successful relationship with cu
Microenvironment: actors are close to the company that aff
service it's customers.
The company:
The relationship btw the marketing management and other
departments in the company. Marketing managers take int
considerations of other departments and prepare the mark
line with their policies.
Interrelated groups → internal environmentprovide superior
customer value and relationships.
canange.
fleencein
can
'
t
'
change

Supplier:
Provide the resources needed by the Company to produce
services.
Treated as partners to provide customer value.
Marketing intermediaries:
Help company to promote, sell, and distribute its products
buyers.
Customers:
- Consumer market: for personal consumption.
- Business markets: buy goods and services for further pro
for use in their production process.
- Reseller markets: resell at a profit
- Government markets: produce public services.
- International markets: buyers in other countries, includin
producers, resellers, and governments.
Competitors
- Marketers must gain strategic advantage by positioning th
strongly against competitors offerings in the minds of consu
- 2 types of competitors: direct and indirect
Publics
- Any group of people that have an actual or potential intere
on the org’s ability to reach their goals.

Macro environment
Demographic environment
Economic environment
Affect consumer purchasing power and spending patterns:
- changes in income
- changing consumer spending patterns
Natural environment
- That include the natural resources that are needed as input
or affected by marketing activities.
Technological environment
It creates new products and opportunities, and kills of older
Political / Legal environment
Laws, government agencies, and pressure groups that influ
organizations and individuals in a given society.
3 purposes of business legisation:
+ protects the companies from unfair competition
+ protects the customers form unfair business practices
+ protect the interest of society form unbridled business b

Cultural environment
- Consists of institutions and other forces that affect a socie
values, perceptions, and behaviors
Responding to the Marketing environment
- Marketing managers should take a proactive rather than re
to the environment marketing.
SWOT analysis

Topic 3: customer- driven Marketing stra
Step1: market segmentation
Divide into small marketsreached more efficiently and effectiv
products and service that matches these markets.
Greographinentation
- Business divides their market based on geography. (city,
state, ...; rural, suburban, ...; climate, the population in ea

Demographic segmentation
- Divides into groups based on variables such as age, gende
income, occupation, education, religion, generation, and na
using different marketing approaches for different age an
groups
- Demographic factors are the most popular bases for segme
groups.
Psychographic segmentation
- Divides buyers into different groups based on social class, l
personality characteristics.
Behavioral segmentation
- Based on their knowledge, attitudes, uses, or responses to
Occasions: buy or when they consume products (morning,
evening....)
Benefits sought: different customer seek for different bene
same item.
User status: non-users, ex-users, potential users, first tim
Usage rate: light, medium and heavy users of a product.
Loyalty status: degree of loyalty level (standard, gold, dia
platinum card, ...)
Effective segmentation
- Measurable: the size, purchasing power and profile of segm
measured
- Accessible: can be reached and served
-Sustainable: large and profitable enough to serve
-
humabeing
,characterintic1 -
LEx . LexresEpremium 3 7 c
Togotae( feel-
saving ,
econo mical )

- Differentiable: respond differently to different marketing m
and programs
- Actionable: mkt programs can be designed for actually and
segment.
Step 2: Market targeting
- A set of buyers who share common needs or characteristic
company decides to serve.
Targeting- undifferentiated Marketing
- A firm might decide to ignore market segment differences
whole market with one offer.
Targeting- differentiated (segmented) Marketing
- A firm decides to target several market segments and desi
offers for each.
Targeting- concentrated Marketing / Niche Marketing
- Firm will pursue a large market share of a small market.
- Has a strong capability in this market.
Targeting- Micro Marketing
- The practice of tailoring products and marketing programs
and wants of specific individuals and local customers segme
cities, neighbourhoods,
and even specific stores.
‘one-to-one marketing’,
‘customised marketing’, and
‘markets-of-one marketing’.

Step 3 and Step 4: Differentiation and positioning
Positioning strategy
Product position:
- The way the product is defined by consumers on importa
Positioning of a market offering should occupy a clear, dis
desirable place relative to competing products in the min
consumers
Positioning maps:
Differentiation could be based on:
Product: feature, performance, style, design,…
Services: speedy, convenient, and careful delivery
People: hiring and training people better than competitor
Channel: coverage, expertise, and performance
Image: should convey the product’s distinctive benefits an
Using symbols

Topic 4: product, services, and branding
Product
Is anything that can be offered to a market for attention, a
use, or consumption that might a want or need.
Tangible goods Intangible services
Product-services
Services are a special form of product that consists of activ
or satisfactions offered for sale
Product-experience
Represent what the product or service will do for the custo
focusing on the product/services features)
Three levels of products.
- Core benefit: what’s the customers really buying (watch:
accurate time)
- Actual product: product/ service features, design, quality
name,.. all that
made the products work and deliver the core value to custo
- Augmented product: additional consumer services and be
Gdon' t result any ownership.

Product classification - Types of products
Consumer products: are products or services bought by fin
for personal consumption.
Industrial products: Purchased for further processing or fo
conducting a business.
Convenience products: buy frequently, immediately, and
with g minimum of comparison and buying effort.
Shopping products: less frequently purchased consumer
services that costumers compare carefully on stability, pr
Specialty products: unique characteristics or brand ident
invest only the time need
Usesought products: not normally think of buying, such a
insurance or funeral services
Product decisions
1. Individual product and service decisions
Product attributes
Quality (2 dimensions):
- Performance quality (level): the ability of a product to pe
functions, this supports the positioning.
- Conformance quality (consistency): free from defects an
in delivering a level of performance.
Features: dimensions, source ingredients, services, structu
performance, components, materials.
Style and design: style is the appearance of a product, des
just appearance, It includes architecture and the building o

Brand
- Branding helps buyer in:
- Branding helps sellers in:
A name, term, sign, symbol, or design, or a combination of t
identifies the maker or seller of a product or service.
It protects and distinguishes the sellers from competitor
Helps sellers segment market
Packaging
Designing and producing the container or wrapper for a pr
- Helps to promote the product on shelves. It also gives a co
over competitors and boost sales.
- Helps to attract customers’ attention, and describe the pro
Labels
Identify the product or brand, describe attributes, and pro
Labels range from simple tags to products to complex gra
of the package.
Product support services:
A company’s offer usually includes some support services
1 Ilentifyingproducts
\ Dis
tinguishproduat quality
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☆

2. Product line
A group of products that are closely related because they fu
similar manner, are sold to the same customer groups, are
the same types of outlets, or fall within given price ranges.
Product line length is the number of items in the product li
- Line filling: adding more items within the present range o
line. E.g. Coke’s various flavour products.
- Line stretching: lengthen a firm’s product beyond its cur
range, by downward, upward or both ways.
3. Product mix
A product mix (or product portfolio) consists of all the pro
and items that a particular seller offers for sale.
Company can increase its business by:
+ adding new product line, widening its product mix
+ lengthen its existing product lines to become a more full
+ adding more versions of each product, deepen its produc
+ company can pursue more product line consistency or le
Branding Strategy:Building strong brands
Brand:
- Presents the customers’ perceptions and feelings about a
its performance.
- It’s the company’s promise to deliver a specific set of fea
services and experiences consistently to the buyers.

Advantage:
Major brand strategy decisions and process:
1. Brand positioning
2. Brand name selection
3. Brand sponsorship
Brand name selection
Desirable qualities for a brand name include:
Suggest benefits and qualities: LandCruiser, Vietnamworks,
Easy to pronounce, recognize, and remember: iPod, JetStar,
BBQ, ...
Distinctive: Lexus, Innova, Galaxy, etc.
Extendable (to other categories): IBM, Amazon.com, Sony
Translatable for the global economy: Irish Mist (Mist means
German); Pizza Hut P'Zone: “Pe Zon” means “nipple” in Spa
Capable of registration and legal protection: a brand name c
protected if it reuses or is similar to existing brand names. E
King in Australia.
Brand sponsorship
National brand (manufacturer brand): manufacturers sell th
under their own brand name (sony bravia, samsung galaxy,

Private brand (store brand): retailers and wholesalers creat
brands (Saigon corp market)
-Licensed brand: some companies license name or symbols p
created by other manufacturers, names of well known celeb
from movies, books (harry porter, Bitis’s marvel,...)
-Co- brand: when two established brand names of different c
used on the same product. (nike + ipod, sport kit)

Topic 5: Price
What is price?
Pricing and value
- Price is the amount of money charged for a product or serv
of the values that consumers exchange for the benefits of h
using the product or service.
- Price is the only element in the marketing mix that produc
The pricing framework
Setting price objectives
Firms can set price objectives to:
- Maximize Sales
- Maximize Profits
- Maximize Market Share
- Meet short and long-term brand growth objectives

Major considerations in setting price
The price the company charges falls between one that is t
any demand and one that is too low to produce a profit.
Customer value-based pricing strategies
Based on buyers’ perceptions of value, rather than on the
Price is considered before the marketing program is set.
- Good value pricing: Offering just the right combination of q
good service that customers want at a fair price.
- Value-added pricing: Rather than cutting prices to match c
prices, marketers adopting this strategy attach value-added
services to differentiate their offerings, and this supports hi
Value-based pricing is customer driven. Cost-based pricing is

Cost-based pricing
Based on the costs for producing, distributing, and selling
plus a fair rate of return for its effort and risk
Types of costs: Company and Product Costs. Main types of c
- Variable cost: are the costs that vary with the level of prod
packaging, Raw materials, Components & parts, Ingredients
- Fixed costs: are the costs that do not vary with production
Such as: Facility, equipment, Building, Rent, Heat, Interest,
CEO salaries, etc.
- Total cost: are the sum of the fixed and variable costs for a
of production
Competition-based pricing
Based on competitors’ strategies, costs, prices, and market
Consumers will base their judgments of a product’s value on
that competitors charge for similar products.
Operational Pricing Strategies
New-product pricing strategies
A. New-product pricing strategies
1. market-skimming pricing:
- Setting a high price for a new product to skim
maximum revenue fro the segments willing to pay he
high price; the company makes fewer but more
profitable sales.
- Many companies that invent new products set high
until prices to “skim” revenues layer-by-laye from th