PLC as a tool for marketing strategy PCL CÔNG CỤ CHO CHIẾN LƯỢC MARKETING CONTENT Today, we’re heard a lot about marketing The company, the business enterprise has always trade in your marketing department So what is marketing, marketing processes occur, how and how to work effectively marketing to achieve the desired After learning process, research and learning, I would like to present and introduce about marketing the following: 1 The Marketing concepts - Marketing term first used in 1902 on the University of Michigan lecture in the United States, until 1910, all universities in the United States synthesis began teaching this course Internationalization process of marketing has grown so fast Today, the business enterprise wants to achieve high economic efficiency will need to have the understanding and application of modern marketing - Along with the development of marketing, Marketing concept also many different ways by different approaches as follow function approach, system approach, access management standpoint micro, macro And also do not have any concept is considered to be the only true, because the authors are their own views Here are some concepts that we often encounter: o The concept of the American Marketing Association - AMA  1960: “Marketing is the whole business operations in order to direct the flow of goods and services that suppliers provide to the consumer and user” This concept is influenced by traditional marketing ideas, emphasizing the distribution and circulation of goods That is an attempt to sell the produce has not yet shown the following thoughts can do to produce a product that can be sold  1985: “Marketing is a process of planning and managing the implementation of the pricing, marketing and distribution of ideas, goods and services aimed at generating transactions to satisfy the objectives of individuals and organizations and social” Overall this is an excellent concept with the advantages: Indicate the product being exchanged is unlimited to tangible goods but also ideas and services; Marketing to articulate not only apply to business activities for the purpose of profit; defined functions of Marketing is not just sales or distribution This concept approach standpoint Marketing function, when it comes to the 4P Marketing is said, this is also the approach of a number of textbooks on Marketing in Vietnam because it offers the advantage of simplicity and implementation guidelines high The appropriate approach to process management that Philip Korler Marketing launched o The concept of UK Chartered Institute of Marketing: “Marketing is the process of organizing and managing all business activities from the discovery of the real needs of consumers in a particular commodity to produce goods and provide them to consumers the last company to ensure profitable as expected.” This concept refers relative demand comprehensive search, discovery and demand assessment, determine the scale of production and distribution, sales effectively Institute of Marketing UK Marketing excavated to a strategy of market research as to the expected profits o Concept of Philip Kotler: “Marketing is the process through which individuals and organizations can achieve the needs and desires through creating and exchanging products and value between the parties.” This concept is presented in the form of philosophy, human motto He clearly identify the source of marketing ideas that needs and desires and basic content marketing is the exchange of value So, Marketing need for everyone - In addition, during the development of marketing science, there are some typical concept: o “Marketing is the management process to identify, predict and meet customer requirements efficiently and benefit.” (UK Chartered Institute of Marketing) o “Marketing is the whole system of business activities from the design, pricing, promotion distribute the product to meet the needs of the target market to achieve its objectives.” (Bruce J.W William, Michel J.Etzel, Fundamental of Marketing) o “Marketing is a science entire operating business activities from production to consumption, it needs based on market fluctuations in other words, the market is taken as a guide.” (I Ansoff, an expert on Marketing Research of the United Nations) o “Marketing is to establish, maintain and strengthen relationships with customers and partners concerned to satisfy the objectives of this member.” (Gronroos, model based on Relationship Marketing) o “Marketing is the economic activity in which goods are transported from producers to consumers.” (Hamilton Institute, USA) o “Marketing is a business philosophy with its focus on the consumer and profitability.” (General Electric Company, USA) - Through the above concepts, ideas can draw the following main Marketing: o Consumption meant to be taken seriously sale o Just sell the enterprise market should not sell what you have o Marketing activities towards satisfying the needs of customers better and better For the consumer market and what the manufacturers need to study the market carefully and respond flexibly o Marketing is not a phenomenon that is a process starting from the stage of market research, search needs to find a product to satisfy demand and then the process is repeated o Marketing associated with organization and management, bringing fast demanding scientific and technical progress in the production business - So, is understood as total harmonic Marketing activities, with clear purpose 2 Market Segmentation “Market segmentation is the process of dividing customers (overall market) of a certain commodity market into a number of smaller groups, but differ in each market have common characteristics and needs , desires, behavior.” Group above market called market segmentation “Market segment is a group of customers have the same response to the same set of stimuli Marketing a Business.” These same characteristics mentioned above is called the criteria for market segmentation The purpose of market segmentation - Segment of a market for products from the market place becomes heterogeneous homogeneous pieces Helping businesses identify customer needs in each segment through research, analysis and market segmentation - On the basis that help businesses focus resources to formulate and carry out the appropriate marketing mix activities to exploit and serve the needs of selected market segments - The understanding of the target market segment will help enhance customer satisfaction through higher market strategies of enterprises with clearer objectives This promotes the product design, advertising programs, more focused - Market segmentation can also help to maximize profit on a unit of production rather than maximizing revenue because businesses do not need at this time investment spread because only towards one or several segments A company with large resources can not effectively compete with strong competitors in the market segment specialization Summary, the market segment will help businesses find the "gap" of markets and efficient utilization of the advantages his competition The combination of satisfying customer demand increasingly higher allocation of resources to more effectively create competitive advantage and greater profitability The segmentation process There is no formal process to be used as standard for the detection of major market segments Please recommend a common method that companies use to study Marketing segment This process consists of three steps: - Step 1 Survey period: Researchers conducted exploratory interviews and focus groups in order to better understand the motives, attitudes and behavior of consumers, using the results obtained, the researcher drafted a statement form asked to collect data on: o The nature and rank their importance o The extent known brands and brand rankings o The types of products used o Attitudes toward the product category o Data on demographic, psychological and media favorite who answered Enterprises need to rely on the results of the research process, this market survey that determines the characteristics and requirements of consumers - Step 2 Phase analysis: The study applied the factor analysis on the data to eliminate the variables that are closely related Analysis of the similarities and differences of the consumer Then the researchers will apply cluster analysis to create a certain number of different market segments most - Step 3 Attitude determines characteristics: Now each cluster are identified distinguishing characteristics of attitude, behavior, demography, psychology and habits of media use Maybe in a segment criteria or can combine several criteria, including the criteria and sub-criteria Each market segment can be named based on the characteristics of the most striking differences One way to discover new market segment is the study of the hierarchical nature of the consumer base on which to choose a brand Enterprise to track changes in the hierarchical nature of the arrangement and consumers adjust to the changing priorities of consumers The hierarchical nature also shows the customer market segment The first buyers decide on the price of the dominant group , who first decided on the design styling of the dominant group , who first decided to trademark brand of dominant groups I have can continue and discover who is heading the type or dominant value brand , in order to incorporate it into other markets , Each song can have different characteristics demographic , interest management and preferences for media 3 “PLC as a tool for marketing strategy" justify A product like a human being, born and lost over time Except for the basic product ( water , basic food ); precious metals ( gold, silver ); raw materials ( raw materials ) ( coal , cotton , milk ) ; classic sports ( swimming, athletics ) , and all other product life cycle must , especially fashion products or perishable Today no one comes to the carriage , the coachman his whip , the logarithm of the size , gas lanterns The first manufacturer of such goods either bankrupt or is known switch to doing something else For example, there are now no video products as well as DVD , but instead , the hard drive in the future or maybe landline will no longer dominate the mobile phone At the same time the market appears more and more new merchandise that five years ago , and absolutely no new goods contributed most to the overall profitability of the business This is a rule of competition , the rules relating to the concept of product life cycle We have the following definition : " the product's life cycle is the term that describes the variation of mass consumption and revenue in the period at the beginning products brought on the market until to withdraw from the market " The stages in the life cycle of the product A typical life cycle of a product is represented by a curve as S-shaped and consists of 4 stages based on the variation of revenue consumed: Introduction (Introduction), growth (Growth ), maturity (maturity) and recession (decline) There's also a very important stage when the product is not marketed but is very important: the development phase of new products (Product Development) The stages in the life cycle of the product Through the model can be seen on the stages of the product life cycle are almost equal, despite the fact it is not The different stages in the life cycle of any given public generally lasts for different periods of time The elongation of each stage will vary between the different products Some products through many years in the introduction stage, while some other products undergo only a few weeks However, in most cases the decline and extinction is likely to be inevitable (Inevitable), because the demand for the product is no longer available; a better or cheaper product than is given to satisfy the same needs; or promotion makes opponents stronger market Note: Not all products also go through the stages of the cycle Some products may fail right at the introduction stage, a number of other products through the stage without introduction that quickly turned growth stage and mature, there is also the ideal product cycle coming to an end recovery period back to life and start a new cycle The significance of the study of the product life cycle Research the product life cycle has important implications in business No product life cycle is predetermined that the issue is important that businesses need to analyze the expression of specific volume, sales to consumers recognize their products are in phase any stage of the life cycle The accurate forecasting product life cycle is very important to be able to create impact marketing strategies appropriate to provide benefits for businesses These include the following key issues: o Strategic planning for the rational consumption of each product type o Determining the appropriate introduction and development of new products based on strategic product development right o Option strategies: production, finance personnel, marketing to suit each period o Help conduct and coordinate activities Marketing-Mix to match periods of products o Make forecasts based o Extend the product life cycle 4 Process of selecting the final price In business practice, businesses must be flexible in valuation work Therefore, the determination of the selling price in a process should only apply to the following cases: - Enterprise launched new products into the market - Enterprise products are launched in a new market, a new distribution channel - Participate in the bidding enterprise The process of pricing in the case of the need to follow 6 steps: 1 Identify target valuation 2 Identify the needs of the product in the target market 3 Estimated cost 4 Analysis of competitive product prices 5 Choose valuation methods 6 Choose prices Here, we analyze the steps in the valuation process 1 Identify target valuation The goal of enterprise marketing role for the orientation of the tasks set out price Want to become a marketing tool is cost effective to serve effectively for the marketing strategy of the target market and product positioning of the business Therefore, the valuation must be based on marketing objectives of the business and product positioning strategy that enterprises have chosen Typically, an enterprise could pursue one of the following basic objectives: - Maximize the current profit - Leading market share - Leading quality products on the market - Ensure that exist now on the market - The other goals To accomplish each objective mentioned above, businesses must make decisions different prices 2 Identify the needs of the product in the target market Each enterprise price fixed for the product will correspond to a certain level of demand of the target market and therefore will have different effects to the marketing objectives of the business The demand curve shows the relationship between two variables closely the price and demand Often the relationship between demand and price are inversely proportional relationship But for prestige goods, prices rose again accompanied by increased demand For example perfume price increase leads to increased purchasing power 3 Estimated cost The cost of a product unit, or a unit price of the product is important bases of valuation The cost of a unit of production (average cost) of fixed costs plus variable costs TC = FC + VC - TC is the cost (on average) for a product unit - FC is the fixed cost per unit of product - VC variable costs per unit of product For scientific evaluation, businesses need to know the volatility of costs under different production levels In principle, the average cost curve U- shaped, ie the average cost (unit costs) will reach a minimum at a certain level of output On the other hand, more production, more business experience, resulting in unit costs will decrease As costs decrease, the conditional businesses to reduce prices, increase market share 4 Analysis of competitive product prices Cost analysis, price and product competition Unit cost is the lower of the purchase price Determine the market's close on price Now businesses need to understand the price of competing products as a basis for determining the selling price for its product Enterprises should also compare its cost structure with the cost structure of the competitor to find out the strengths and weaknesses of his In addition, businesses also need to understand the quality of competing products 5 Choose valuation methods There are many different valuation methods Typically business combination and consider three factors based on three valuation methods 3C model (Cost-cost-competitive Competion, Customer-customer) to make decisions about prices for products 6 Choose prices The method of determining the price on this has narrowed the price range should last option When deciding on the final price, businesses need to consider adding the following additional factors: - Psychological factors of the customer to accept price - Effects of Marketing Variables - Policies of business valuation - The impact of the price to the other stakeholders 5 Explain “direct marketing" and its applicability with examples Direct Marketing (Direct Marketing) is the use of telephone, e-mail and other contact tools (not the people) to communicate and attract a response from the individual customer or potential Most companies rely on advertising, promotion and personal selling They use advertising, public relations to create awareness, interest and preference, promotions to stimulate buying and selling personal approach to selling Direct Marketing is to lead to direct sales without intermediaries Benefits of Direct Marketing Currently, due to the development of the means of communication, businesses can use many ways to communicate directly with customers Manufacturers, retailers, service companies, through catalog sales companies, and nonprofit organizations are using Direct Marketing (Direct Marketing) Direct Marketing offers many benefits to consumers Those who order via e- mail to that e-mail purchase is fun, convenient, and not be harassed (harassment) This approach saves time They can choose at home through catalogs of goods and the new way of life They can receive gifts without leaving home The industrial customers also have many advantages They may be more understanding of products and services without spending time having salespeople Direct Marketing has provided benefits to the seller:  This method can select more potential customers better  Messages sell personalized merchandise and customers  Direct Marketing to build ongoing relationships with each client  It is possible to potential customers at the right time and be more receptive  Through direct marketing can test how changes in advertising, title, price, benefits,  Competitors not see is the strategy of the company dedicated to our customers  Evaluate effectiveness can be measured because of the customer response 2 The goal of Direct Marketing The goal of Direct Marketing want to achieve is to make potential customers buy immediately The success of the campaign reflected a response rate In addition, Direct Marketing also has the following objectives:  Impact on awareness and purchase intention of customers then  Create opportunities for salespeople  Send messages and pictures to emphasize the preferred company  Information and guidance clients to prepare for the next purchase 3 Some kinds of direct marketing:  Catalog Marketing Catalog: many companies use sales forms via e-mail after they released the catalog Contents of the Catalog may be additional information on the characteristics of the catalog , product , sample collection , hotline to answer questions gifts , discounts  Direct mail marketing: including letters , small ads , movies , free phone number  Marketing remotely via telephone ( telemarketing ) is an important tool in direct marketing and is being used more and more Customers using the phone and call the toll-free number to place an order  Marketing directly on the TV , radio , newspapers and magazines  Direct response television marketing: have two types of contracts are long form and short form Long form that uses a long period of time ( Clause 30 minutes ) to describe the product in detail and form short period of time using short advertisement ( 30 seconds or 1 minute ) to ask the customer feedback immediately by calling the phone on the screen or on the Website  Coupons artifacts ( couponing ) is a form of Puong used in print media to get feedback from readers with cutting out coupons in exchange for discounted cash  Direct selling is a form of Face to Face with customers through salespeople 4 The determinants of the success of direct marketing: In pure marketing system type, it is often said to 4P Marketing mix that includes: product (Product), price (Price), distribution (Place) and promotion (Promotion) For direct marketing, the same will have the following 6 key factors:  Database: The first thing to remember is the database client must be based on " human " and not on the basis of " company " or " business " Data must be made on the basis of " human " because it is the object that you " communicate " , " persuasive " , " get crush " build loyalty  The Offer: As you make suggestions for potential customers Offerings include details about the product or service category , price , special incentives , the benefits to consumers , In other words , touted as the main content of what you threads recommendation and believe that it meets what the customer needs , customer wants For example , " 5 the opportunity to tour Europe in 15 days with only $ 2,000 night "  Creative: If the offer is to say the content of what you suggested with customers , the innovative ( creative ) is a form of greeting customers , it includes presentation, images , word documents , digital printing  Media: If as in traditional marketing media is used mainly newspapers, radio, TV, the direct-marketing in the media is primarily used direct mail, phone calls, and with technology information can now also email, and internet  Implementation organization ( Organizing ): Talking about implementation is talking about the work to be done, the conduct and progress of computational time so that everything goes smoothly, according to plan Compared to traditional marketing, the direct marketer is somewhat more favorable in controlling the content and timing: you want to send 1 sheet or 10 sheets, wants to send early December or late January also, etc this is not easy when you want to newspapers or TV, because of the schedule depends newspaper or television station  Customer Service: Every effort, the enterprise is trying to achieve the ultimate goal is customer consent order, spends money to purchase goods or services of the business If customers call at your company has no loading machine, or answering not enthusiastic, or not enough goods for delivery, or delivery delays, the cumbersome hassle of payment, the effort make your direct marketing can pour river, pouring sea All the things mentioned in the concept of " customer service " References 1 Philip Kotle, “Marketing Management, Millenium Edition - Custom Edition for University of Phoenix” ISBN 0–536–63099-2 2 Philip Kotle (Northwestern University), Kevin Lane Keller (Dartmouth College), Marketing Management 14th ed ISBN 978-0-13-210292-6 3 Truonghoabinh, Vo Thi Tuyet ( CORPORATE GOVERNANCE ), “The concept, role and development of the marketing process”, The Guardian, [Online] Available at: http://voer.edu.vn/c/khai-niem-vai-tro-va-qua-trinh-phat-trien-cua- marketing/4dbdd6c5/3b7c63f4 (Accessed: 01 Jun 2014)