Bài giảng English for marketing
Objectives
• Understand and being able to use marketing basic terms correctly
• Understand the marketing process extended model
• Understand the marketing management orientation
• Being aware of the modern marketing landscapeMarketing Introduction
Core concepts:
• What is marketing?
• Market basic definitions
• Marketing strategy and the marketing plan
• The marketing mix
• The Changing Marketing Landscape
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ENGLISH FOR MARKETING COURSE NUMBER: MKMA1112 CREDIT: 03 NATIONAL ECONOMICS UNIVERSITY MARKETING FACULTY Marketing Department Faculty and Department Information • Faculty: Marketing • Department: Marketing • Office Address: R1305 – A1 building – NEU • Website: • Lecturer: • Email: hattv@neu.edu.vn COURSE STRUCTURE • Marketing IntroductionUnit 1 • Marketing EnvironmentUnit 2 • Marketing Information and ResearchUnit 3 • Consumer BehaviourUnit 4 • Segmentation - Targeting - PositioningUnit 5 • Company and Marketing StrategyUnit 6 • ProductUnit 7 • PriceUnit 8 • PlacesUnit 9 • PromotionUnit 10 Books and references Course Book: • Phillip Kotler, Gary Amstrong “Principles of Marketing”, Pearson Education Limited, 2014. Reference Books: • Cate Farrall (2008). Professional English in use - Marketing. Cambridge University Press • Simon Sweeney (2002). Test your Professional English – Marketing. Pearson Education Limited. • Sylee Gore (2007). English for Marketing and Advertising. Oxford Business English. Assessments • Participation: 10%: attendance and participation in class • Mid term: 20% - in class test, closed book (expected in week 5) • Group assignment and presentation: 20% (expected in week 10) • Final exam: 50% - closed book (expected in week 15) Group Assignment • Topic: Choose a product/ service (in Vietnam or foreign country) and develop a marketing plan for it in Vietnamese market. • Presentation: maximum 15 minutes – no extension (grade will be deducted if overtime) • Group report (in word, printed): • Submit before the presentation date (exact date will be informed by lecturer) • Length: 20-30 pages. • Logic, straight and simple presentation Group Assignment • Turnitin report: below 20% • Team evaluation: submit individually. • Grade structure: • 50% word report • 50% presentation: each member should make appearance in the presentation, either presenter or ask questions for other groups, or answer questions from other groups • Grades will be evaluated individually Class regulations #1 On time (if you are late than teachers, pls. wait until the break) #2 No voice in class (pls. show the respect for lecturer and others) #3 No sleep (if you feel sleepy, feel free to go out, no need to ask for lecturer’s permission) #4 No food (but drinks are permitted) #5 No cellphone (switch off your phone ring before class starting) #6 No laptop, ipad, ipod and others UNIT 1 MARKETING INTRODUCTION Objectives • Understand and being able to use marketing basic terms correctly • Understand the marketing process extended model • Understand the marketing management orientation • Being aware of the modern marketing landscape Marketing Introduction Core concepts: • What is marketing? • Market basic definitions • Marketing strategy and the marketing plan • The marketing mix • The Changing Marketing Landscape Marketing is: Managing profitable customer relationship The process by which companies: create value for customers & build strong customer relationship in order to capture value from customers in return - Philips Kotler- Marketing basic definitions • Customer needs, wants, and demands • Market offerings • Customer Value, Costs and Satisfaction • Exchanges and Relationships • Markets • Marketing process • Marketing management • Marketing management orientations Sates of felt deprivation • Physical needs: food, clothing, warmth and safety • Social needs: belonging and affection • Individual needs: knowledge and self expression Marketers did not create these needs, they are basic part of the human. Help the company: Identify the industry, the type of products that they want to market Answer the question: what customer’s need our product will satisfy Needs Wants: • Is human needs • but are shaped by personal preferences/ culture/ religion • People have unlimited wants but limited resources • Help the company: – Decide the features, characteristics of the products/ services – Competitive on the market Demands: • Human wants that are backed by buying power • Willing to buy • Ability to pay Market offerings ServicesProducts Places Ideas People Some combination of products, services, information, or experiences offered to a market to satisfy a need or want Experience Exchange The act of obtaining a desired object from someone by offering something in return The set of all actual and potential buyers of a product or service Understand the marketplace and customer needs and wants Design a customer- driven marketing strategy Construct an integrated marketing program that delivers superior value Building profitable relationships and create customer delight Capture value from customers to create profits and customer equity Research customers and the marketplace Manage marketing information and customer data Select customers to serve: market segmentation and targeting Decide on a value proposition: differentiation and positioning Product decisions Pricing decisions Distribution: manage demand and supply chains Promotion: communicate the value proposition Customer relationship management: build strong relationships with chosen customers Partner relationship management: build strong relationships with marketing partners Create satisfied, loyal customers Capture customer lifetime value Increase share of market and share of customer An expanded model of the marketing process Marketing management Marketing management is the art and science of choosing target markets and building profitable relationships with them – What customers will we serve? – How can we best serve these customers? Production concept The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency Product concept Consumers will favor products that offer the most quality, performance and features and that the organization should therefore devote its energy to making continuous product improvements Selling concept The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort Marketing concept A philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do Societal marketing concept The idea that a company’s marketing decisions should consider consumer’s wants, the company’s requirements, consumers’ long-run interests, and society’s long- run interests MARKETING MANAGEMENT ORIENTATIONS Designing a Customer-Driven Marketing Strategy Designing a Customer-Driven Marketing Strategy • Market segmentation refers to dividing the markets into segments of customers • Target marketing refers to which segments to go after Selecting Customers to Serve Marketing Mix – 4Ps The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program Exchange Marketing Mix- 4Ps Profit Company Customer’s satisfaction Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Building Customer Relationships The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM) Review • Customer needs, wants, and demands • Market offerings • Customer Value, Costs and Satisfaction • Exchanges and Relationships • Markets • Marketing process • Marketing management • Marketing management orientations Objectives • Understand what are the marketing environment factors • Understand how they affect to marketing strategy and activities Marketing Environment The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers Analyzing the Marketing Environment • The Company’s Microenvironment • The Company’s Macroenvironment Topic Outline Marketing Environment Suppliers Resources of company Intermediaries Competitors Publics Customers Political-Regulatory Demographic Socio-cultural Technological Natural Economic Macro- Environment Micro- Environment Company Customers Marketing mix- 4Ps Micro - environment The actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors and publics Customers Company Suppliers Competitors Intermediaries Publics Interrelated groups Micro Environme nt Microenvironment - Company • In designing marketing plans, marketing management takes other company groups into account: top management: sets the company’s mission, objectives, broad strategies, and policies finance research and development (R&D) purchasing operations human resources accounting Interrelated groups that form the internal environment Microenvironment - Supplier Provide the resources needed by the company to produce its goods and services Microenvironment – Marketing intermediaries Firms that help the company to promote, sell, and distribute its goods to final buyers Microenvironment - Customer • The most important actors in the company’s microenvironment. • The aim of the entire value delivery network is to engage target customers and create strong relationships with them. • Consumer market, business market. Microenvironment - Competitors • Each firm should consider its own size and industry position compared with those of its competitors Microenvironment - Publics Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. Types of publics: financial, media, government, citizen, internal, general, local Macro - environment The larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics Demography Macro Environme nt Economic factors that affect consumer purchasing power and spending patterns Demography Macro Environmen t Economic The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Demography Macro Environme nt Economic Natural Demography Macro Environment Economic Natural Technological Political Forces that create new technologies, creating new product and market opportunities. Demography Macro Environment Economic Natural Technological Political Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society Economic Natural Demography Macro Environme nt Technological Political Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors. Cultural Environmental Sustainability: Developing strategies and practices that create a world economy that the planet can support indefinitely. SWOT Analysis Why you need SWOT analysis? • Help decision maker and strategic planner understand clearly about corporate’s internal/external situation • Analyze the issues/problems which may lead to success/failure. • Prevent costly mistakes Review • The Company’s Microenvironment: • Company • Customers • Competitors • Suppliers • Marketing intermediaries • Publics • The Company’s Macroenvironment • Natural • Cultural • Demography • Economic • Technological • Political UNIT 3 MARKETING INFORMATION Learning Objectives • Marketing Information & Customer Insights • Assessing Marketing Information Needs • Developing Marketing Information • Marketing Research • Analyzing & Using Marketing Information Topic Outline Marketing Information and Customer Insights Fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships. • Customer Insights are: Marketing Information and Customer Insights Marketing information system (MIS) consists of people and procedures dedicated to: • Assessing the information needs • Developing needed information • Helping decision makers use the information to generate and validate actionable customer and market insights • Marketing Information Systems (MIS) Assessing Marketing Information Needs MIS provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies • Developing Marketing Information Internal data Marketing intelligence Marketing research Developing Needed Information Developing Marketing Information Internal databases are electronic collections of consumer and market information obtained from data sources within the company network (Marketing, sales, customer service, accounting, operation ) Internal Data Developing Marketing Information Marketing intelligence is the systematic monitoring, collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace Marketing Intelligence Developing Marketing Information • Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization Marketing Research Developing Marketing Information Secondary data consist of information that already exists somewhere, having been collected for another purpose Primary data consist of information gathered for the special research plan Marketing Research Developing the Research Plan Developing Marketing Information Marketing Research Defining the Problem and Research Objectives Exploratory research Descriptive research Causal research Developing Marketing Information Marketing Research Defining the Problem and Research Objectives Exploratory research objective is to gather preliminary information that will help define problems and suggest hypotheses Developing Marketing Information Marketing Research Defining the Problem and Research Objectives Descriptive research objective is to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers. Developing Marketing Information Marketing Research Defining the Problem and Re ... timuli are changed into responses inside the consumer’s black box, which has two parts: - How the characteristics influence the way the consumer react to the stimuli - The buyer decision process itself affect the consumer behaviour Culture is the set of basic values, perceptions, wants, and behavior learned by a member of society from family and other important institutions Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior Membership Groups • Groups with direct influence and to which a person belongs Aspirational Groups • Groups an individual wishes to belong to Reference Groups • Groups that form a comparison or reference in forming attitudes or behavior Groups and Social Networks Groups Characteristics Affecting Consumer Behavior Personal factors Characteristics Affecting Consumer Behavior Lifestyle is a person’s pattern of living as expressed in his or her activities, interests, and opinions Personal factors Characteristics Affecting Consumer Behavior Personality is the unique psychological characteristics that distinguish a person or group Personal factors Characteristics Affecting Consumer Behavior A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Psychological factors Characteristics Affecting Consumer Behavior Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world. Psychological factors TYPES OF BUYING DECISION BEHAVIOUR Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands. Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands. Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences. Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences. 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. Awarene ss Interes t Evaluatio n Trial Adoption Review • The Buyer Decision Process • Model of Consumer Behavior • Characteristics Affecting Consumer Behavior: • Social • Groups and social networks • Personal • Cultural • Buying decision behavior • The Buyer Decision Process for New Products UNIT 5 Customer-Driven Marketing Strategy Creating Value for Target Customers • Customer-Driven Marketing Strategy • Market Segmentation • Market Targeting • Differentiation and Positioning Topic Outline Customer-Driven Marketing Strategy Creating Value for Target Customers MARKETING STRATEGY Market segmentation is dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. Market Segmentation Market Segmentation Bases GeographicNations, States, Regions, Counties, Cities DemographicAge, Gender, Income, Marriage status PsychographicPersonality, Lifestyle BehavioralKnowledge, attitudes, uses . Market Segmentation To be useful, market segments must be: Measurable Accessible Substantial Differentiable Actionable Requirements for Effective Segmentation Evaluating Market Segments 1. Segment size and growth 2. Segment structural attractiveness 3. Company objectives and resources HOW TO CHOOSE A SEGMENT? Selecting Target Market Segments Selecting Target Market Segments Target several market segments & designs separate offers for each Goes after a large share of one or few segments or niches Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments Selecting Target Market Ignore market segment differences and go after the whole market with one offer Undifferentiated marketing Differentiated marketing Concentrated marketing Micromarketing Positioning The way product is defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products Positioning Map: Large Luxury SUVs What is your positioning strategy? Positioning for Competitive Advantage Differentiation and Positioning Competitive advantage is an advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices. Identifying Possible Value Differences and Competitive Advantages Differentiation and Positioning • Value proposition is the full mix of benefits upon which a brand is positioned • The answer to the customers’ question: why should I buy this brand? Selecting an Overall Positioning Strategy • Market Segmentation: basis, criteria • Market Targeting: undifferentiated, differentiated, concentrated (niche), micro • Differentiation and Positioning: • Positioning maps • Differentiation • Competitive advantages • Value proposition REVIEW UNIT 6: Company – Wide Strategic Planning The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities Strategic Planning Strategic Planning Business portfolio: The collection of businesses and products - SBUs- that: • Make up the company • Best fits the company’s strengths and weaknesses to opportunities in the environment • SBUs: Strategic business units • An SBU can be a company division, a product line within a division, or sometimes a single product or brand Growth-share matrix A portfolio-planning method that evaluates a company’s SBUs in term of its market growth rate and relative market share Developing strategies for growth and downsizing Planning Marketing 1. Choose the real product 2. Define your target customer and target customer behavior 3. Marketing Environment Analysis 4. Positioning Proposal 5. Product strategy 6. Price strategy 7. Place Strategy 8. Promotion Strategy 9. Marketing Action Plan Marketing Plan Products, Services, and Brands Building Customer Value Product, Services, and Branding Strategy • What Is a Product? • Product and Services Decisions • Services Marketing • New Product Development • Product Life Strategy Topic Outline Market offerings Some combination of products, services, information, or experiences offered to a market to satisfy a need or want ServicesProducts Places Ideas People Experience Products, Services and Experiences Marketing-mix planning begins with building an offering that brings value to target customers 3 levels of Products and Services Levels of Product and Services Core customer value What is the buyer really buying? The core, problem-solving benefits or services that the consumers seek Levels of Product and Services Actual product Turn the core benefit into an actual product Levels of Product and Services Augmented product Offering additional consumer services and benefits Products and Services Classifications • Consumer products • Convenience products • Shopping products • Specialty products • Unsought products • Industrial products • Organizations, Persons, Places, Ideas What Is a Product? Industrial products are products purchased for further processing or for use in conducting a business • Classified by the purpose for which the product is purchased • Materials and parts • Capital • Raw materials Product and Service Classifications What Is a Product? Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization Organizations, Persons, Places, and Ideas What Is a Product? Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people Organizations, Persons, Places, and Ideas What Is a Product? Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places Organizations, Persons, Places, and Ideas What Is a Product? Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society Organizations, Persons, Places, and Ideas Product and Service Decisions Product and Services Decisions Product mix (or product portfolio) consists of all the products and items that a particular seller offers for sale • Width: Product mix width refers to the number of different product lines the company carries. • Length: Product mix length refers to the total number of items a company carries within its product lines. • Depth: Product line depth refers to the number of versions offered of each product in the line • Consistency: the consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. Product Mix Decisions Services Marketing New-Product Development Strategy New Product Development Process Product Life-Cycle Strategies The course of a product’s sales and profits over its lifetime Product Life-Cycle Strategies Review • What Is a Product? • Consumer products: convenience, shopping, specialty, unsoughted • Industrial products: capital, materials and parts, raw materials • Organization, people, place, social • Product and Services Decisions: features, brand, package, labels, product support services • Services Marketing • New Product Development • Product Life Strategy CHAPTER 10: PRICING Pricing Concepts Understanding and Capturing Customer Value Understanding the meaning and the use of: • What Is a Price? • Pricing approaches • Pricing strategies Topic Outline Price is the amount of money charged for a product or service. It is the sum of all the values that customers exchange for the benefits of having or using the product or service Price is the only element in the marketing mix that produces revenue; all other elements represent costs What Is a Price? Major pricing approaches Customer value – based pricing Cost – based pricing Competition – based pricing Customer Value – Based Pricing Setting price based on buyer’s perceptions of value rather than on the seller’s cost Assess customer needs and 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 Cost – Based Pricing Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk28 Set price based on cost Convince buyers of product’s value Design a good product Determine product costs Competition – Based Pricing Setting prices based on competitor’s strategies, prices, costs, and market offerings Considerations affecting pricing decisions Internal Considerations Overall marketing strategy, objectives and mix Organizational considerations The market and demand Pricing in different types of markets Analyzing the price-demand relationship External Considerations The Economy Other External Factors Pricing Strategies New – Product Pricing Strategies Product Mix Pricing Strategies Price Adjustment Strategies New Product Pricing Strategies Market – Skimming Pricing Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price, the company markets fewer but more profitable sales Market – Penetration Pricing Setting a low price for a new product to attract a large number of buyer and a large market share To penetrate the market quickly and deeply Product Mix Pricing Strategies Product line pricing Optional product pricing Captive product pricing By – product pricing Product Bundle Pricing Price Adjustment Strategies Discount Allowance Segmented pricing Psychological pricing Reference prices Promotion pricing Geographical pricing Dynamic pricing International pricing Review • What Is a Price? • Pricing approaches • Cost based • Customer value-perceived • Competitors based • Pricing strategies • New Product Pricing • Product Mix Pricing • Price Adjustment Pricing UNIT 9: PLACE Marketing Channels (Distribution Channel) Delivering Customer Value Objectives Understanding: The nature and importance of marketing channel Channel Behavior and Organization Channel design decisions Marketing channel decisions Marketing channel A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user The Nature and Importance of marketing channel Number of Channel Levels Channel level: A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer Direct marketing channel Has no intermediary levels Indirect marketing channel Channel containing one or more intermediary levels Channel Behavior and Organization Channel conflict Disagreement among marketing channel members on goals, roles and rewards Horizontal conflict Horizontal conflict occurs among firms at the same level of the channel Vertical conflict Conflict between different levels of the same channel Channel Behavior and Organization Vertical Marketing System Conventional and Vertical marketing system Channel Design Decisions Analyzing Consumer Needs Setting Channel Objectives Identifying Major Alternatives Evaluating the Major Alternatives Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives hann l Desig Decisions Selecting Channel Members Managing and Motivating Channel Members Evaluating Channel Members Selecting, managing, and motivating individual channel members and evaluating their performance over time Marketing channel management Review The nature and importance of marketing channel Channel Behavior and Organization Channel conflicts Vertical and conventional marketing system Channel design decisions Analyzing consumer needs Setting channel objectives Identifying major alternatives Evaluating the alternatives Marketing channel decisions Integrated Marketing Communication Review The Promotion Mix Advertising PR (Public Relations) Direct Marketing Sales Promotion Personal selling Integrated Marketing Communication Push and Pull Marketing
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