chapter 1 - 7

1. <PRINCIPLE OF MARKETING>
CHAPTER 1: MARKETING
CREATING CUSTOMER VALUE AND ENGAGEMENT
Object 1-1 Define mkt and outline the steps in the mkt process
WHAT IS MARKETING?
MARKETING PROCESS
4:1
 Creating value for customers, marketers capture value from customers in return
Object 1-2 Explain the importance of understanding the marketplace and customers and identify
the 5 core marketplace concepts
UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS

2. e.g. An American needs food but wants a big Mac
safety needs:
love and belonging: tinder, zalo, tiktok, facebook
MARKET OFFERINGS – Products, services, and experiences
Market offerings: some combination of products, services, information, exp offered to a market
to satisfy a need or want
Marketing myopia: the mistakes of paying more attention to the specific products a company
offers > the benefits and exp produced by these products
EXCHANGE AND RELATIONSHIPS
Exchange: the act of obtaining a desired object from someone by offering sth in return
Market: the set of all actual and potential buyers of a product or service
MARKETING MANAGEMENT ORIENTATIONS

3. 5 alternative concepts under which organizations design and carry out their marketing strategies:
the production, product, selling, marketing, societal marketing concepts.
Production concept Consumers will favor products that are
available and highly affordable
 The org should focus on improving
production and distribution
Product concept Favor products that offer the most quality,
performance
 Org devotes its energy to making
continuous product improvements
Selling concept The idea that consumers will not buy enough
of the firm’s products unless the firm
undertake a large-scale selling and promotion
effort
Marketing concept Philosophy achieving organizational goals
depends on knowing the needs and wants of
target markets and delivering the desired
satisfactions better than competitors do
Object 1-3 Identify the key elements of a customer value-driven marketing strategy and discuss
the marketing management orientations that guide marketing strategy
DESIGNING A CUSTOMER VALUE-DRIVEN MKT STRATEGY AND PLAN
Marketing management: 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?
 Selecting customers to serve
 Choosing a value proposition
 Mkt management orientations

4. Marketing myopia: suggests that businesses will do better in the long-term if they concentrate on improving
the utility of a product or good, rather than just trying to sell their products

5.  company should consider customer’s wants, the company’s requirements, consumer’s
long-run interests, society’s long-run’s interests
Object 1-4 Discuss customer relationship management and identify strategies for creating value
for customers and capturing value from customers in return
MANAGING CUSTOMER RELATIONSHIPS AND CAPTURING CUSTOMER VALUE
Engaging customers and managing customer relationships
- Customer relationship management: the overall process of building and maintaining
profitable customer relationships by delivering superior customer value and satisfaction
- Customer-perceived value: the customer’s evaluation of the difference between all the
benefits and all the costs of a marketing offer relative to those of competing others

6. - Customer satisfaction: the extent to which a product’s perceived perf matches a buyer’s
expectations
Customer Engagement and Today’s Digital and Social Media
- Customer-engagement mkt: Making the brand a meaningful part of consumers’ conversations
and lives by fostering direct and continuous customer involvement in shaping brand
conversations, experiences, and community
- Consumer-generated mkt: Brand exchanges created by consumers themselves—both invited and
uninvited— by which consumers are playing an increasing role in shaping their own brand
experiences and those of other consumers.
- Partner relationship management: Working closely with partners in other company
departments and outside the company to jointly bring greater value to customers.
Capturing value from customers:
Creating Customer Loyalty and Retention
- Customer lifetime value: The value of the entire stream of purchases a customer makes
over a lifetime of patronage
Growing Share of Customer
- Share of customer: The portion of the customer’s purchasing that a company gets in its
product categories
Building Customer Equity
Customer equity: the total combined customer lifetime values of all of the company’s
customers
Strangers: low potential profitability and little project loyalty
 Don’t invest anything in them + make money on every transaction
Butterflies: potentially profitable but not loyal

7. True friends: both profitable and loyal
Barnacles: highly loyal but not very profitable
SO WHAT IS MARKETING?
Object 1-5 Describe the major trends and forces that are changing the marketing landscape in
this age of relationships
CHAPTER 2: COMPANY AND MARKETING STRATEGY
Object 2-1 Explain company-wide strategic planning and its four steps

8. Company-Wide Strategic Planning: Defining Marketing’s Role
Defining a Market-Oriented Mission
- Strategic planning: the process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities
- Mission statement: a statement of the organization’s purpose – what it wants to accomplish in
the larger environment
Setting Company Objectives and Goals
Designing the Business Portfolio
Business portfolio: the collection of business and products that make up the company
1. Analyze its current business portfolio and determine which businesses should receive more, less,
or no investment
2. Shape the future portfolio by developing strategies for growth and downsizing
THE BOSTON CONSULTING GROUP APPROACH
DEVELOPING STRATEGIES FOR GROWTH AND DOWNSIZING
- Product/ market expansion grid: a portfolio-planning tool for identifying company growth
opportunities through market penetration, market develop

9. - Market penetration: comp growth by increasing sales of current products to current market
segments without changing the product
- Market development: comp growth by identifying and developing new market segments for
current comp products
- Product development: company growth by offering modified or new products to current market
segments
- Diversification: comp growth through starting up or acquiring businesses outside the comp’s
current products and markets
Planning Marketing: Partnering to Build Customer Relationships
Marketing Strategy and the Marketing Mix
Mkt strategy: the marketing logic by which the company hopes to create customer value and achieve
profitable customer relationship
Customer value-driven mkt strategy STDP
1. Market Segmentation
Market segmentation: Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors and who might require separate marketing strategies or mixes

10. Market segment: a group of consumers who respond in a similar way to a given set of mkt efforts
2. Market Targeting
- Market targeting: evaluating each market segment’s attractiveness and selecting one or more
segments to serve
3. Market differentiation and Positioning
- Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers
Developing an integrated marketing mix
Mkt mix: The set of tactical marketing tools— product, price, place, and promotion— that the firm
blends to produce the response it wants in the target market (4 Ps)
 Product – acceptability: goods-and-services combination the company offers to the target market
 Price – affordability: the amount of money customers must pay to obtain the product
 Place - accessibility: company activities that make the product available to target consumers
 Promotion - awareness: refers to activities that communicate the merits of the product and
persuade target consumers to buy it

11. Managing the Marketing Effort and Marketing Return on Investment
Managing process:
- Analysis
- Planning
- Implementation
- Organization
- Control
MARKETING ANALYSIS

12. Marketing implementation: turning marketing strategies and plans into marketing actions to
accomplish strategic marketing objective

13. MARKETING PLAN
MARKETING DEPARTMENT ORGANIZATION
MARKETING CONTROL

14. CHAPTER 3: ANALYZING THE MARKETING ENVIRONMENT
Marketing environment: The actors and forces outside marketing that affect marketing management’s
ability to build and maintain successful relationships with target customers
MICROENVIRONMENT: The factors close to the company that affect its ability to serve its
customers— the company, suppliers, marketing intermediaries, customer markets, competitors, and
publics
- Mkt intermediaries: Firms that help the company promote, sell, and distribute its goods to final
buyers
+ resellers: distribution channel firms that help the company find customers or make sales to them
(wholesalers: người buôn, retailers: nhà bán lẻ)
+ physical distribution firms: help the company stock and move goods from their points of origin to
their destinations

15. + mkt services agencies: mkt research firms, advertising agencies, media firms, mkt consulting firms
=> help th ecomp target and pr its products to the right markets
+ financial intermediaries: banks, credit companies, insurance companies, other business helping
finance transactions/ insure against the risks related to buying and selling
- Competitors
- Publics (financial, media, government, citizen-action, internal, general, local)
Internal publics: workers, managers, volunteers, board of directors)
- Customers
5C: COMPANY COMPETITORS CUSTOMERS COLLABORATORS CONTEXT
COMPANY: about us (mission & vision), business, strategy
MACROENVIRONMENT: The larger societal forces that affect the microenvironment—
demographic, economic, natural, technological, political, and cultural forces
- Demographic
(demography: size, density, location, age, gender, race, occupation)

16. + Baby boomers
+ Gen X
+ Gen Y (millenials): their comfort with digital technology
+ Gen Z

17. CONSUMER/ BUSINESS MARKET & BUYER BEHAVIOUR
Buyer’s characteristics include behavior, personality, situation
Customer decision making unit:
CUSTOMER JOURNEY: need, look for brands, order, purchase, use, review, share, loyalty
customer
 Interaction with customers
“the process of experiencing service through different touchpoints from the customer’s point of
view”
Touchpoint: physical and digital

18. CHAPTER 4: MANAGING MARKETING INFORMATION
(to gain customer insights)
- Big data: the huge and complex data sets generated by today’s sophisticated information
generation, collection, storage, analysis technologies
- Customer insights: fresh marketing information-based understandings of customers and
the marketplace that become the basis for creating customer value, engagement,
relationship
- Marketing information system (MIS): people and procedures dedicated to assessing
information needs, developing the needed information, helping decision makers to use the
information to generate and validate actionable customer and market insights

19. - Internal databases: collections of consumer and market information obtained from data
sources within the company network
(via customer characteristics, in-store and online sales transactions, web and social media site
visits
Competitive marketing intelligence: the systematic monitoring, collection, and analysis of
publicly available information about consumers, competitors, and developments in the marketing
environment
 Improve strategic decision making by understanding the consumer environment,
assessing and tracking competitors’ actions, warning of Opportunities and Threats
MARKETING RESEARCH: systematic design, collection, analysis, reporting of data
relevant to a specific marketing situation facing an organization
DEFINING THE PROBLEM AND RESEARCH OBJECTIVES
 Exploratory research: Marketing research to gather preliminary information that will help
define problems and suggest hypotheses
 Descriptive research: describe marketing problems, situations, or markets, such as the
market potential for a product or the demographics and attitudes of consumers.
 Causal research: Marketing research to test hypotheses about cause-and-effect
relationships
- Secondary data: Information that already exists somewhere, having been collected for another
purpose.
+ Gather from the company’s internal database
+ Buy from outside suppliers
+ Using commercial online database
+ Internet search engines
- Primary data: Information collected for the specific purpose at hand
A. PRIMARY DATA COLLECTION
 RESEARCH APPROACHES
Observative
research
gathering primary data by observing
relevant people, actions and situations
e.g. food retailer Trader Joe’s might
evaluate possible new store locations by
Not observed: attitudes,
motivates, private
behaviors

20. checking traffic patterns, neighborhood
conditions, and the locations of competing
Whole Foods, Fresh Market, and other
retail chains
Ethnographic
research
A form of observational research that involves
sending trained observers to watch and
interact with consumers in their “natural
environments.”
Survey
research
Gathering primary data by asking people
questions about their knowledge, attitudes,
preferences, and buying behavior.
Not remember, not willing,
busy pp may not take the time
Experimental
research
Gathering primary data by selecting matched
groups of subjects, giving them different
treatments, controlling related factors, and
checking for differences in group responses
Best suited for exploratory
research
 CONTACT METHODS
- Mail, telephone, personal interviewing
- Focus group interviewing: Personal interviewing that involves inviting small groups of people
to gather for a few hours with a trained interviewer to talk about a product, service, or
organization. The interviewer “focuses” the group discussion on important issues
- Online marketing research: Collecting primary data through internet and mobile surveys, online
focus groups, consumer tracking, experiments, and online panels and brand communities
- Online behavioral and Social tracking and Targeting
+ Bahavioral targeting: Using online consumer tracking data to target advertisements and
marketing offers to specific consumers
 SAMPLING PLAN
- Sample: a segment of the population selected for marketing research to represent the
population as a whole

21.  RESEARCH INSTRUMENTS
- Questionaires:
- Mechanical instruments:
B. IMPLEMENTING THE RESEARCH PLAN
Collecting, processing, analyzing the information
C. INTERPRETING AND REPORTING THE FINDINGS
<CHAPTER 5: CONSUMER MARKETS AND BUYER BEHAVIOR>
1. Consumer buyer behavior
CHARACTERISTICS AFFECTING CONSUMER BAHAVIOR

22. A. CULTURAL
Social class: Relatively permanent and ordered divisions in a society whose members share similar
values, interests, and behaviors: upper-upper class, lower upper class, upper middle class, middle
class, working class, upper lower class, lower lower class
B. SOCIAL FACTORS
Word of mouth influence: the impact of the personal words and recommendations of trusted
friends, family, associated, other consumers or buying bahavior.
Opinion leader: a person within a reference group exerts social influence on others

23. Online social networks: Online social communities—blogs, online social media, brand
communities, and other online forums—where people socialize or exchange information and
opinions.
D. PSYCHOLOGICAL FACTORS
BUYING DECISION BEHAVIOR AND THE BUYER DECISION PROCESS

24. - Complex buying bahavior: Consumer buying behavior in situations characterized by
high consumer involvement in a purchase and significant perceived differences among
brands.
(know what models, attributes, accessories,…)
- Dissonane-reducing buying behavior: Consumer buying behavior in situations
characterized by high involvement but few perceived differences among brands.
(after purchase, consumers might experience postpurchase dissonance – aftersale
discomfort)
- Habitual buying bahavior: Consumer buying behavior in situations characterized by
low consumer involvement and few significant perceived brand differences.
- Variety- seeking buying behevior: Consumer buying behavior in situations characterized by
low consumer involvement but significant perceived brand differences
(firms encourgae consumers by offering lower prices, speacial deals, coupons, free samples,
advertising)
- Need recognition: the first stage of the buyer decision process, in which the consumer
recognizes a problem or need.
- Inf search : The stage of the buyer decision process in which the consumer is motivated to
search for more information:
+ personal sources: family, friends, neighbors, acquaintances,
+ commercial sources: advertising, salespeople, dealer and manufacturer web and mobile sites,
packaging
+ public sources: mass media
+ experimential sources:
engage with your Audience Online and Offline:
- Provide inf to customer on various channels
Information search: retargeting, offer promotions
Postpurchase behavior:
- Memberships

25. - Encourage to review and share the experience
- Welcome to receive feedbacks
<CHAPTER 6: BUSINESS MARKETS AND BUSINESS BUYER BEHAVIOR>
Business buyer behavior: The buying behavior of organizations that buy goods and services for use
in the production of other products and services that are sold, rented, or supplied to others
MARKET STRUCTURE AND DEMAND
- Derived demand: Business demand that ultimately comes from (derives from) the demand for
consumer goods.
- Supplier development: Systematic development of networks of supplier-partners to ensure an
appropriate and dependable supply of products and materials for use in making products or
reselling them to others.
BUSINESS BUYER BEHAVIOR
- Straight rebuy: A business buying situation in which the buyer routinely reorders
something without modifications.
- Modified rebuy: A business buying situation in which the buyer wants to modify
product specifications, prices, terms, or suppliers
- New task: A business buying situation in which the buyer purchases a product or service
for the first time.
- Systems selling (or solutions selling): Buying a packaged solution to a problem from a
single seller, thus avoiding all the separate decisions involved in a complex buying
situation.
PARTICIPANTS IN THE BUSINESS BUYING PROCESS
Buying center: All the individuals and units that play a role in the purchase decision-making process
- Users: Members of the buying organization who will actually use the purchased product or
service
- Influencers: People in an organization’s buying center who affect the buying decision; they often
help define specifications and also provide information for evaluating alternatives.
- Buyers: People in an organization’s buying center who make an actual purchase

26. - Deciders: People in an organization’s buying center who have formal or informal power to select
or approve the final suppliers.
- Gatekeepers: People in an organization’s buying center who control the flow of information to
others
MAJOR INFLUENCES ON BUSINESS BUYERS
THE BUSINESS BUYER DECISION PROCESS
Problem recognition The first stage of the business buying process in which someone in the
company recognizes a problem or need that can be met by acquiring a
good or a service
General need
description
The stage in the business buying process in which a buyer describes
the general characteristics and quantity of a needed item
Product specification The stage of the business buying process in which the buying
organization decides on and specifies the best technical product
characteristics for a needed item
Supplier search The stage of the business buying process in which the buyer tries to
find the best vendors.
Proposal solicitation The stage of the business buying process in which the buyer invites
qualified suppliers to submit proposals.
Supplier selection The stage of the business buying process in which the buyer reviews
proposals and selects a supplier or suppliers
Order-routine
specification
The stage of the business buying process in which the buyer writes the
final order with the chosen supplier(s), listing the technical
specifications, quantity needed, expected time of delivery, return
policies, and warranties.

27. Performance review The stage of the business buying process in which the buyer assesses
the performance of the supplier and decides to continue, modify, or
drop the arrangement.
ENGAGING BUSINESS BUYERS WITH DIGITAL AND SOCIAL MARKETING
E-procurement: purchasing through electronic connections between buyers and sellers –
usually online
B-to-B digital and social media marketing: Using digital and social media marketing approaches
to engage business customers and manage customer relationships anywhere, anytime
Institutional market: Schools, hospitals, nursing homes, prisons, and other institutions that provide
goods and services to people in their care.
Government markets: Governmental units—federal, state, and local—that purchase or rent goods and
services for carrying out the main functions of government.
<CHAPTER 7: CUSTOMER VALUE-DRIVEN MARKETING STRATEGY>
(creating value for target customer)
Why need select customers to serve: LIMITED RESOURCES
 Which customers should we serve?
 How will we serve them?
1. Segmentation
2. Targeting
3. Differentiation

28. 4. Positioning
- Occupy a place in customer’s minds
 Perception (image, percieved benefits)
AIRLINE:
- Business traveller
- Economic traveller :
+ family
+ young adults (deal-hunters, saving-economical, experienced)
+ students
SEGMENTATION
 Target consumers
 Difference & positioning
 Repositioning
 (same) difference & positioning