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Course Evaluation Criteria

 Attendance: 10%

Principles of Marketing  Midterm exam: 30%

 Presentation and in-class tasks: 10%

 Written exam: 20% (in the form of multiple choice questions covering
Lecturer: Pham Thi Minh Chau (Ms.) | MSc. chapter 1 to 5)
School of Economics and International Business
Phone: 0942024060  Final exam: 60%
Email: minhchaupham@ftu.edu.vn (60-minute written exam in the form of multiple choice questions
and essay questions)

Reading materials Course content

 Textbook: Chapter 1: Introduction to Marketing

Principles of Marketing (17th edition) by Phillip Kotler and Chapter 2: Marketing Environment
Gary Armstrong, Publisher: Pearson Prentice Hall.
Chapter 3: Marketing Research

 Reference book: Chapter 4: Consumer Market and Consumer Buying Behavior

- Giáo trình Marketing Căn Bản – GS.TS Trần Minh Đạo – Chapter 5: Business Market and Business Buying Behavior
NXB ĐH Kinh tế quốc dân
Chapter 6: Market Segmentation – Targeting – Positioning (STP)

- Foundations of Marketing (7th edition) by William M.Pride Chapter 7: Products

and O.C. Ferrell Chapter 8: Pricing
Chapter 9: Place (Distribution)
Chapter10: Promotion

CHAPTER 1: INTRODUCTION TO MARKETING

1. What is marketing?
1.1. Definitions of marketing
1.2. The marketing process
1.3. Basic concepts in marketing

2. Marketing management orientations

3. Marketing strategy, Marketing mix decision, Marketing plan

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1. What is marketing?
1.1. Definitions of marketing:
Marketing is the activity, set of
The performance of
institutions, and processes for
business activities that
creating, communicating,
direct the flow of
delivering, and exchanging
goods and services
offerings that have value for
from producers to
customers, clients, partners, and
consumers
society at large.

1960 2007 (2013)

1985
The process of planning and
executing the conception, pricing,
promotion, and distribution of ideas,
goods, and services to create
exchanges that satisfy individual and
organizational objectives.

 The digital age: The explosive growth in digital technology has

fundamentally changed the way we live— how we communicate, share 1.2. The marketing process
information, access entertainment, and shop.
Marketing is the process by which companies create value for
 The growth for non-profit marketing: Colleges, hospitals, museums, customers and build strong customer relationships in order to
zoos, symphony orchestras, foundations, and even churches face stiff
competition for membership, funds, and support.
capture value from customers in return.

 Rapid globalization: refers to the spread of the flow of financial products,

goods, technology, information, and jobs across national borders and cultures. M = R+ STP + MM + CRM + C
 Sustainable marketing: Today’s customers expect companies to deliver
value in a socially and environmentally responsible way.

M – Marketing process
R – Research
The changing STP – Segmentation, Targeting and Positioning
MM – Marketing mix
marketing CRM – Customer relationship management
C – Capturing value from customers
landscape

1.2. The marketing process

1.2. The marketing process

A Simple Model of the Marketing Process

A Expanded Model of the Marketing Process

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1.3. Basic concepts in marketing

1.3. Basic concepts in marketing

Needs Wants

Needs
Product
Wants
Satisfaction
Demand
Satisfaction Demand

Exchange
Product Exchange

1.3. Basic concepts in marketing 1.3. Basic concepts in marketing

 Needs: Human needs are states of felt deprivation.  Needs:

Conclusions from Maslow's hierarchy of needs:

 Human needs are arranged in a hierarchy, from the most

pressing at the bottom to the least pressing at the top.

 A person tries to satisfy the most important need first.

When that need is satisfied, it will stop being a motivator,
and the person will then try to satisfy the next most
important need.

 Needs are driving forces for actions.

1.3. Basic concepts in marketing 1.3. Basic concepts in marketing

 Wants:  Demands:
Wants are the form of human needs which is shaped by culture
and individual personality. Demands are human wants backed by buying power.

E.g: An American needs food but wants a Big Mac, fries, and a
soft drink. A person in Papua, New Guinea, needs food but
wants taro, rice, yams, and pork.

 Wants are shaped by one’s society and are described in

terms of objects that will satisfy those needs.

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1.3. Basic concepts in marketing 1.3. Basic concepts in marketing

 Products: Products are all goods and services that can be  Exchange:
offered to satisfy a human need or desire, attract attention,
stimulate shopping and consumption.  Exchange is the act of obtaining a desired object from someone
by offering something in return.

Market offerings: Some combination of products, services,  Exchange is the basis for all marketing activities
information, or experiences offered to a market to satisfy a
need or want.

1.3. Basic concepts in marketing

 Satisfaction:

Customer satisfaction measures how well the expectations of a

customer concerning a product or service provided by your
company have been met.

 When a customer is satisfied with a product: a return

customers/ advocacy. This can be a powerful marketing
advantage.

 When a customer is not satisfied with a product: unlikely to

return/ hurt the firm by making negative comments to
prospective customers.

2. Marketing management 2. Marketing management

2.1. Marketing management orientations
2.1. Marketing management orientations

There are 5 alternative concepts under which organizations design and The production concept
carry out their marketing strategies: the production, product, selling,
marketing, and societal marketing concepts. The production concept holds that:

• Consumers will favor products that are

available and highly affordable.
The The The The
The selling • Management should focus on improving
production product Marketing Societal
concept production and distribution efficiency.
concept concept concept concept

 The production concept might lead to

marketing myopia. Companies adopting this
orientation run a major risk of focusing too
narrowly on their own operations and losing
sight of the real objective- satisfying customer
needs and building customer relationship.

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2. Marketing management 2. Marketing management

2.1. Marketing management orientations 2.1. Marketing management orientations

The product concept The selling concept

 The product concept holds that  The selling concept holds that
consumers will favor products that consumers will not buy enough of the
offer the most in quality, performance, firm’s products unless it undertakes a
and innovative features. large-scale selling and promotion
effort.
 Under this concept, marketing strategy
focuses on making continuous product  A selling-oriented organization thus
improvements. focuses on short-term results- profit via
sales now rather than on long-term
 The product concept can also lead to market and financial benefits created
marketing myopia. by satisfied customers who want more
of the goods or services offered by the
organization.

2. Marketing management 2. Marketing management orientations

2.1. Marketing management orientations Question: Make comparison between Selling concept and
Marketing concept?
The marketing concept
Selling concept Marketing concept

 The marketing concept holds that Starting

achieving organizational goals depends on point
knowing the needs and wants of target
markets and delivering the desired
satisfactions better than competitors do.
Focus

 Instead of a product-centered “make and Means

sell” philosophy, the marketing concept is a
customer-centered “sense and respond”
philosophy. The job is not to find the right Ends
customers for your product but to find the
right products for your customers.

2. Marketing management
SOCIETY
2.1. Marketing management orientations (human welfare)

The societal concept

 Societal marketing concept: a company’s

marketing decisions should consider consumers’
wants, the company’s requirements, consumers’
long-run interests, and society’s long-run
interests.

 It calls for sustainable marketing, socially and

environmentally responsible marketing that
meets the present needs of consumers and CUSTOMERS COMPANY
businesses while also preserving or enhancing (satisfaction) (profits)
the ability of future generations to meet their
needs.

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2. Marketing management
2. Marketing management orientations
2.2. Defining the company mission

 An organization exists to accomplish something, and this

purpose should be clearly stated by asking the following
questions: What is our business? Who is the customer? What
do consumers value? What should our business be?

The The
The selling
The The  A mission statement is a statement of the organization’s
production product Marketing Societal purpose —what it wants to accomplish in the larger
concept
concept concept concept concept
environment

 A company’s mission should not be in product or technology

terms but it should be market oriented and defined in terms
of satisfying basic customer needs.
Traditional marketing phylosophy Modern marketing phylosophy

 It doesn’t define itself as just an online place to post pictures

 Its mission is to give people a social media platform for

collecting, organizing, and sharing things they love.

3. Marketing plan, marketing strategy and

marketing mix decision.

 It doesn’t define itself as creating the world’s best software,

technologies, and devices.

 Its mission is to “empower every person and every

organization on the planet to achieve more.”

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3. Marketing plan, marketing strategy and

marketing mix decision.
Marketing strategy
 Marketing strategy is the marketing logic by which the company hopes
to create this customer value and achieve these profitable
relationships.

 To design a winning marketing strategy, the marketing manager must

answer two important questions: What customers will we serve (what’s
our target market)? and How can we serve these customers best
(what’s our value proposition)?

 Selecting Customers to Serve: The company selects only customers

that it can serve well and profitably.

 Choosing a Value Proposition: The company decides how it will

serve targeted customers—how it will differentiate and position itself in
the marketplace.

3. Marketing plan, marketing strategy and

marketing mix decision.
Marketing mix
Marketing mix is
the set of tactical
marketing tools -
product, price, place,
and promotion - that
the firm blends to Promotion
produce the includes all of the
Place activities
response it wants in Product Price marketers
the target market. Product means Price is the Place includes
undertake to
the goods-and- amount the company activities
inform consumers
services consumer must that make the
about their
combination the exchange to product available
products and to
company offers to receive the to target
encourage
the target market. offering . consumers.
potential
customers to buy
these products.

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3. Marketing plan, marketing strategy and

marketing mix decision.
Marketing plan
Marketing planning involves choosing marketing strategies that will help the
company attain its overall strategic objectives.

 Executive summary

 SWOT analysis

 People are all human actors who play a part in service delivery and thus influence  Major objectives
the buyers’ perceptions (firm’s personnel, other customers, etc.)
 Marketing strategy
 Process are the actual procedures, mechanisms, and flow of activities by which
the service is delivered (hotel check-in, restaurant order-taking, etc.)  Action programs
 Physical evidence: The environment in which the service is delivered, and where
 Marketing budget.
the firm and customer interact, and any tangible components that facilitate
performance or communication of the service (buildings, equipment, website, etc.)
 Controls