Principal of Marketing: Lecture 1: Key Concepts in Marketing

Principal of Marketing
Lecture 1: Key Concepts in

Marketing
Delivered by: Dr. Long Nguyen
Who I am
Dr. NGUYỄN VĂN THĂNG LONG
Lecturer, Professional Communication
School of Communication & Design
RMIT University, Vietnam
PhD, Marketing. MBA, Marketing. Master, Business Research
Coaching and Training: RMIT, University of Adelaide, Kent College, Ascott
Centre for Excellence, FPT University, BrandsVietnam
Management: Sales, Marketing, Business Development for Ascott Vietnam
(belong to Capitaland), Saigontourist
Tel: 0909377144 (Business hours only)
Email: nvthanglong@gmail.com
FB: https://www.facebook.com/nvthanglong
LinkedIn: https://vn.linkedin.com/in/long-nguyen-39659844
Creating a good class atmosphere -
guidelines
Respect for each other
Attendance, participation & punctuality
Communication
Use of technology
Learning Outcomes
Demonstrate an understanding of the underlying philosophy of the
marketing concept and its strategic importance for business.
Demonstrate an understanding of the key marketing concepts and
how they are applied within a business context.
Show an ability to analyse marketing situation critically, offer
marketing solutions and justify and support recommendations with
marketing theory and examples from industry.
Conceptualise broadly the marketing process and how the various
elements of the marketing mix, specific marketing tools and related
theory fit together to make up a complete marketing overview.
Demonstrate an understanding of the differences between goods and
services, consumers and business markets and the implications to
marketers managing these varied businesses.
Demonstrate capability in written and oral communication and
analytical skills in a marketing context.
Agenda for the course
Day 1: Marketing & concept of planning
Day 2: X-ray the Business & Environment
Day 3: Search for Potential Market
Day 4: Market Segmentation
Day 5: Market Targeting, Positioning
Day 6: Branding
Day 7: Marketing Strategy: Product
Day 8: Marketing Strategy: Price
Day 9: Marketing Strategy: Place
Day 10: Marketing Strategy: Promotion #1
Day 11: Marketing Strategy: Promotion #2
Day 12: Team Presentation
Assessment
Assessment 1 (Individual) (5%): Class
reflection & participation
Assessment 2 (Team project) (45%)
Situation Analysis (20%)
Marketing plan Presentation (25%)
Assessment 3 (50%): Examination
Further information will be provided during

the classes
Ice Break Activity
1. To introduce yourself
2. Any job, any plan to work now

and/or in the future
3. What do you think you will

know at the end of this course?
KEY CONCEPTS OF MARKETING
Today Learning Objectives
1. General Knowledge
2. Define marketing and outline the steps
in the marketing process.
3. Explain the relationships between
customer value and satisfaction, the
lifetime value of a customer
What is Marketing?
Marketing is the process by which
companies create value for customers
and society, resulting in strong
customer relationships which capture
value from the customers in return
Marketing is the Art of War in Business
What is Marketing?
Marketing Concept
The marketing management
philosophy that holds that achieving
organizational goals depends on
determining the needs and wants of
target markets and delivering desired
satisfactions more effectively and
efficiently than competitors.
Marketing Management
The art and science of choosing target
markets and building profitable
relationships with them
What Is Marketing?
Marketing is all around you…

The fruit seller has to:
Understand her market
Distribute her fruits at the
right place
Sell them at the right price
Be alert of who else are selling
fruits or possible substitutes
Make sure that she offers
superior customer value
Copyright ©2014 by Pearson Education

Marketing Framework
Marketing STP
Targeting
Product, Price
Market Brand Product

Segmentation
Analysis Positioning Development
Consumer
Place Insight
Pricing
Distribution Approach
Promotion (Execution) Creative

Idea
Promotion Promotion
Below Above the
the line line
Marketing Activities
Thực thi ngoài thị trường (In-market Execution)
Quảng cáo & Truyền thông (Advertising & Media)
Kế hoạch Marketing (Brand Marketing Plan)
Chiến lược Thương hiệu (Brand Vision Plan)
Kiến trúc Thương hiệu (Brand Architecture)
Định vị Thương hiệu (Brand Positioning)
Source: Brands Vietnam – Passport to client

Marketing Mix (4Ps & 7Ps)
Marketing’s role in the
organization
Major differences between
strategic marketing and
marketing management
THE DEVELOPMENT OF MARKETING
Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations
Production Product Selling Marketing Societal

concept concept concept concept concept

Designing a Customer-Driven Marketing Strategy
Production concept
consumers will favor products
that are available and highly affordable
Product concept
consumers favor products that offer
the most quality, performance, and features.
Focus is on continuous product improvements.
Selling concept
consumers will not buy enough of the firm’s products
unless it undertakes a large scale selling and
promotion effort
Designing a Customer-Driven Marketing Strategy
Marketing concept
knowing the needs and wants of the target markets
and delivering the desired satisfactions better than
competitors do
Societal marketing
make good marketing decisions by considering
consumers’ wants
and long-term interest company’s requirements
society’s long-run interests
Designing a Customer-Driven
Marketing Strategy

MARKETING PROCESS
A simple model of the
marketing process
Needs, Wants & Demands
Needs
Demands Wants
Needs: the basic human requirements such as for

air, food, water, clothing, and shelter
Wants: specific objects that might satisfy the need
Demands: wants for specific products backed by an
ability to pay
Maslow Hierarchy of Need
Understanding the Marketplace
and Customer Needs
The case of Highland Coffee
Needs •?
Wants •?
Demands •?

Understanding the Marketplace
and Customer Needs
Market offerings are some combination of products,
services, information, or experiences offered to a
market to satisfy a need or want
What does Starbucks offer? What does this homestay in Dalat

offer?
Activity
Wants, Demands with tourism
products/services?
Needs: Represent a young and savvy person
Needs: Represent a mature and high profile
person
Marketing Offerings
Customer wants and needs are fulfilled

through some combination of tangible
and intangible products and services.
Value & Satisfaction
Customer Customer Customer

Value Satisfaction Expectations
Customer Value
The difference between the benefits that the
customer gains from owning and/or using a
product and the costs of obtaining the product
Customer Satisfaction
The extent to which a product's perceived
performance matches a buyer's expectations
Customer Expectations
Based on past buying experiences, the opinions
of friends, and market information
Value Proposition
Value Proposition: The full positioning of a
brand—the full mix of benefits upon which it
is positioned
Functional Value: service/product
attribute that provides the customer with
functional utility.
Emotional Value: a positive feeling when
they experience or purchase a particular
brand
Social Value: the extent to which owning
a product or engaging in a service allows
the consumer to connect with others.
Exchanges & Relationships and Markets
MARKET
Exchange vs. Relationships

Lifetime Value of the Customer
Losing a customer means losing more than

a single sale.
It means losing the entire stream of
purchases that the customer would make
over a lifetime of patronage.
A company can lose money on a specific
transaction but still benefit greatly from a
long-term relationship.
This is one of the reasons successful
companies empower employees to
resolve customer complaints.
Lifetime Value of the Customer
Share of Customers: the portion of the

customer’s purchasing that a company
gets in its product categories and beyond.
Customer Equity: the total combined

customer lifetime values of all of the
company’s customers
Principles of Marketing
Lecture 2: X-ray the business,
scanning the environment
X-RAY THE BUSINESS
Characteristics of a High-
Performance Business
Stakeholders Processes
Resources Organization
Microenvironment

Microenvironment
The Company
Top management
Finance
R&D
Purchasing
Operations
Accounting

Microenvironment
Suppliers
Provide the resources to produce goods and services

Treat as partners to provide customer value

Microenvironment
Marketing Intermediaries
Help the company to promote, sell and distribute its
products to final buyers
Types of Marketing Intermediaries
Physical
Resellers distribution
firms
Marketing
Financial
services
intermediaries
agencies
Microenvironment
Competitors
Firms must gain strategic advantage by positioning

their offerings against competitors’ offerings
Companies that
offer similar services Companies that
to the same make the same
customers at a product or class of
similar price products
Companies that
Companies that
compete for the
supply the same
same consumer
service
dollars

Levels of Competitors
Source: Kotler et al. (2017)

Microenvironment
Publics
Any group that has an actual or

potential interest in or impact on
an organization’s ability to
achieve its objectives
Financial publics
Media publics
Government publics
Citizen-action publics
Local publics
General public
Internal publics

Microenvironment
Customers
Consumer markets
Business markets
Government markets
International markets

Where are we? Who are we?
Internal
External
Meaning of strengths and
weaknesses
Strengths refer to the competitive advantages
and other distinctive competencies that the
company can exert in the marketplace.
The distinctive competence of an organisation

is more than what it can do; it is what it can
do particularly well.
Weaknesses are constraints that hinder

movements in certain directions.
Meaning of strengths and
weaknesses
Area of strength
Some areas of strength as far as marketing

is concerned are:
Excellence in product design and/or
performance
Leadership in product innovation
Effectiveness in sales promotion
Merchandising efficiency
Customer loyalty
Dominant market share position, deal
from position of strength
Effectiveness of advertising
Area of weaknesses
Typical marketing weaknesses include:

• Inadequate definition of customer for
product/market development
• Ambiguous service policies
• Too many levels of reporting in the
organisational setup
• Overlapping channels
• Lack of top management involvement in
new product development
• Lack of quantitative goals
SWOT: External factors
The macro-external environment: the
economic, social, cultural, political,
legal, demographic, technological issues
and their effects
The market: market size, potential,
structure and trends
The consumer:
who, what, when, why, how?
the consumer's wants, gaps, opportunities
attitudes, involvement in decision making
social and cultural trends affecting purchase
SWOT: External factors
Competitors:
direct, indirect and potential competitors
size, performance
level of threat and vulnerability
Strengths, weaknesses, competitive
advantages
product, price, positioning, distribution etc.
Porter’s model of industry
competition
SCANNING THE ENVIRONMENT
Macroenvironments
PESTLE Analysis
Management
Orientations
Trends in the Political &
Legal Environment
Increased Legislation and Regulation
Changing Government Agency

Enforcement
International Politics
Economic Trends
Changes Economic The Global

In Income Trends Economy
The Super Rich

Social - Demographic Trends
Changing Age The Changing

Structure of Increasing
Traditional
the Diversity
Family
Population
A Better
Geographic Educated,
Shifts in More
Population Professional
Population
Social - Cultural Environment
Socially
Cultural Cultural
Environment Responsible
Values
Behavior
Environment (Natural)
Growing Shortages
of Raw Materials
Increased Increased
Government Pollution
Intervention
Technological trends
The Digital Age
Artificial Intelligence
The Changing Marketing Landscape
Changing
The Digital Rapid
Economic
Age Globalization
Environment
Sustainable The Sharing

Co-Creation
Marketing Economy
Local Science- Health and

Experiences based target well-being
Principles of Marketing
Lecture 3: Searching for
Potential Marketing
SEARCHING FOR
POTENTIAL MARKETING
Identifying markets to serve
Why research first?
“Reseach is what I’m doing

when I don’t know what I’m doing.”
— Wernher von Braun
Source: Brands Vietnam – Passport to research

The scope of marketing
research
American Marketing Association
Marketing research is the function that

links the consumer, customer, and public
to the marketer through information—
information used to identify and define
marketing opportunities and problems;
generate, refine, and evaluate marketing
actions; monitor marketing
performance; and improve
understanding of marketing as a
process.
Assessing Marketing Information Needs
What types of decisions do you make regularly?
Strategic decision, Operational decisions, Marketing decision,
Financial decision..
What types of information do you need to make these
decisions?
Qualitative data vs. quantitative data
What information would you want daily? weekly?
monthly? yearly?
What topics would you like to be kept informed about?
current issues, new trends, customers…
What databases would be useful to you?
Internal vs. external , Free vs. Paid, Market intelligences
Research categories
Customer & Market research
Product Research
Promotional Research
Distribution research
Sales Research
Market Environment Research

Research categories
Customer & Marketing Research
Market & Segment Size
On-the-go meals are becoming more common as consumers

spend more time working and commuting
Research categories
Customer & Marketing Research
Trends for Forecasting

Research categories
Customer & Market research – Customer Attitude &
Behaviour
Research categories
Product Research:
Opportunities for NPD
Product/Design Requirement
Comparative Performance vis-à-vis Competitors’ offer
Packaging & Pricing

Research categories
Product Research:
Comparative Performance vis-à-vis Competitors’ offer

Research categories
Product Research:
Packaging & Design
FAIRLIFE
A disruptor in the dairy aisle
OLD NEW
Research categories
Promotional Research:
Suitable Media Use

Effectiveness of
Communication
Research Categories
Market Environment Research:
Political influences
Economic studies
Social influences
Technological influences
Competitor analysis

Assessing Marketing Information
Needs
Characteristics of a Good MIS
Balancing what the information users would like to

have against what they need and what is feasible to
offer
User’s
Needs
MIS
Offerings
MARKETING RESEARCH PROCESS
Marketing Information System

Research Process
1. Marketing Research Objectives
Managers often start with exploratory research and
later follow with descriptive and/or causal research
To gather preliminary information

that will help define the problem
and suggest hypotheses
Exploratory
Causal Descriptive
•To test hypotheses about cause- •To describe the size and
and-effect relationship composition of the market
2. Develop the Data Collection Plan
Collecting Marketing Information
Marketers obtain information from
Internal data
Marketing intelligence
Marketing research

Developing Marketing Information
Internal data
Internal data are electronic collections of

consumer and market information obtained from
data sources within the company network

Marketing intelligence
The systematic collection and analysis of

publicly available information about
consumers, competitors and developments in
the marketplace

Marketing research
The systematic design, collection, analysis, and

reporting of data relevant to a specific marketing
situation facing an organization

Types of research
35
Secondary Data
Advantages Disadvantages
Cost Current
Speed Relevant
Could not get

Accuracy
data otherwise
Impartial

External Data
Government Data
Publicly available reports (including Internet)
Academic Articles/Journals
Networkings
Customer Advisory Panels
Trade Associations
Books, Magazines
Secondary research and evaluation sources
Library/
electronic
databases
eg. Journals
Media and Archives/
audiences periodicals government
data – from records –
media good for
outlets statistical
Secondary data
Research
and
Evaluation
Sources
Monitor on social media
Real-time collection of content from all social
media channels
1. Brand discussions
Data 2. Alert for negative
Mining
issue
Sentiment 3. Campaign
Rating
discussions
4. Hot Social Trends
Evaluations of secondary data
What are your source’s credentials?
What methods were used?
Is the information current or out-of-date?
Is the intended audience other researchers or the
general public?
Is the document’s coverage of the topic area broad or
too narrow?
Does the author provide references for the data and
information reported?
Do the figures make sense?
Marketing Research
Planning Primary Data

Collection
Research
approaches
Contact methods
Sampling plan
Research
instruments

Market Research
Research Approaches
Observational research involves gathering primary

data by observing relevant people, actions, and
situations
Ethnographic research involves sending trained
observers to watch and interact with consumers in
their natural environment

What can be observed?
Market Research
Research Approaches
Survey research is the most widely used method and

is best for descriptive information—knowledge,
attitudes, preferences, and buying behavior
Flexible
People can be unable or unwilling to answer
Gives misleading or pleasing answers
Privacy concerns
Experimental research is best for gathering causal

information—cause-and-effect relationships

Market Research
Research Approaches
Mail Telephone Personal Online

Flexibility Poor Good Excellent Good
Quantity of data Good Fair Excellent Good
collected
Control of Excellent Fair Poor Fair
interviewer effects
Control of sample Fair Excellent Good Excellent
Speed of data Poor Excellent Good Excellent

collection
Response rate Poor Poor Good Good
Cost Good Fair Poor Excellent

Market Research
Contact Methods
Focus Groups
Six to 10 people
Trained moderator
Challenges
Expensive
Difficult to generalize from small group
Consumers not always open and honest

Marketing Research
Online Contact Methods
Internet Online
surveys panels
Online Online focus

experiments groups
Marketing Research
Online Contact Methods
Advantages
• Low cost
• Speed
• Higher response rates
• Good for hard to reach
groups
Marketing Research
Sampling
Sample is a segment of the population selected for

marketing research to represent the population as
a whole
Who is to be studied?
How many people should be studied?
How should the people be chosen?

Marketing Research
Sampling
Probability Sample
Simple random sample Every member of the population has a known and equal
chance of selection
Stratified random The population is divided into mutually exclusive groups
sample and random samples are drawn from each group
Cluster (area) sample The population is divided into mutually exclusive groups
and the researcher draws a sample
Nonprobability Sample
Convenience sample The research selects the easiest population members
Judgment sample The researcher uses their judgment to select population
members
Quota sample The researcher finds and interviews a prescribed number
of people in each of several categories

Marketing Research
Research Instruments
Questionnaires
• Most common
• Administered in person, by phone, or online
• Flexible
• Research must be careful with wording and
ordering of questions

Marketing Research
Research Instruments
Questionnaires
• Closed-end questions include all possible

answers, and subjects make choices among
them
• Provide answers that are easier to interpret
and tabulate
• Open-end questions allow respondents to
answer in their own words
• Useful in exploratory research

Marketing Research
Implementation
Collecting the information

Processing the information
Analyzing the information
Interpret findings
Draw conclusions
Report to management

Analyzing and Using Marketing
Information
Customer Relationship Management (CRM)
Managing detailed information about individual

customers and carefully managing customer touch
points to maximize customer loyalty.
Service and
Customer Sales force website
support
purchases contacts visits
calls
Credit and
Satisfaction Research
payment
surveys studies
interactions

Distributing and Using
Marketing Information
Information distribution involves entering information

into databases and making it available in a time-
useable manner
Intranet provides information to employees and
other stakeholders
Extranet provides information to key customers
and suppliers

Other Marketing Information
Considerations
Public Policy and Ethics
• Customer privacy
• Misuse of research findings

Principal of Marketing: Lecture 1: Key Concepts in Marketing

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Principal of Marketing: Lecture 1: Key Concepts in Marketing

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Format Tersedia

Principal of Marketing

Lecture 1: Key Concepts in

Further information will be provided during

2. Any job, any plan to work now

3. What do you think you will

Marketing is all around you…

Copyright ©2014 by Pearson Education

Market Brand Product

Promotion (Execution) Creative

Thực thi ngoài thị trường (In-market Execution)

Quảng cáo & Truyền thông (Advertising & Media)

Kế hoạch Marketing (Brand Marketing Plan)

Chiến lược Thương hiệu (Brand Vision Plan)

Kiến trúc Thương hiệu (Brand Architecture)

Định vị Thương hiệu (Brand Positioning)

Source: Brands Vietnam – Passport to client

Production Product Selling Marketing Societal

Copyright ©2014 by Pearson Education

Copyright ©2014 by Pearson Education

Needs: the basic human requirements such as for

Copyright ©2014 by Pearson Education

What does Starbucks offer? What does this homestay in Dalat

Customer wants and needs are fulfilled

Customer Customer Customer

Exchange vs. Relationships

Losing a customer means losing more than

Share of Customers: the portion of the

Customer Equity: the total combined

Copyright ©2014 by Pearson Education

Copyright ©2014 by Pearson Education

Provide the resources to produce goods and services

Copyright ©2014 by Pearson Education

Firms must gain strategic advantage by positioning

Copyright ©2014 by Pearson Education

Source: Kotler et al. (2017)

Any group that has an actual or

Copyright ©2014 by Pearson Education

Copyright ©2014 by Pearson Education

The distinctive competence of an organisation

Weaknesses are constraints that hinder

Some areas of strength as far as marketing

Typical marketing weaknesses include:

Increased Legislation and Regulation

Changing Government Agency

Changes Economic The Global

The Super Rich

Changing Age The Changing

The Digital Age

Sustainable The Sharing

Local Science- Health and

“Reseach is what I’m doing

Source: Brands Vietnam – Passport to research

Marketing research is the function that

Market Environment Research

Source: Brands Vietnam – Passport to research

Market & Segment Size

On-the-go meals are becoming more common as consumers

Trends for Forecasting

Opportunities for NPD

Comparative Performance vis-à-vis Competitors’ offer

Packaging & Pricing

Source: Brands Vietnam – Passport to research

Comparative Performance vis-à-vis Competitors’ offer