CHAPTER 2

1. How do the economic and demographic environment affect the

marketing activities of enterprises in the dairy milk sector? Propose
solutions for enterprises to adapt to the changes in the economic and
demographic environment. (Chapter 2)
Macro environment: forces that shape opportunities and pose threats to
the company.
Factors of the macro environment: economic, demographic, natural,
technological, political-legal, cultural-social environment.
Economic Environment
The Economic Environment plays the most important role in the
movement and development of the market: it can directly affect the purchasing
power of the market and the purchasing characteristics of consumers.
The Economic Environment is reflected through: economic growth rate,
GDP trend, inflation rate, unemployment rate, income and income growth rate,
spending structure and change. Change customer spending structure...
Demographic Environment
Demography is the study of human populations in terms of size, density,
location, age, gender, race, occupation and other statistics.
Factors to consider in the demographic environment include:
 Population Size and Growth Trend
 Changing Age Structure of a Population
 The Changing Family
 Rising Number of Educated People
*The influence of the economic and demographic environment on the
marketing activities of dairy enterprises- TH TRUE Milk
The TH Milk Joint-Stock Company as part of TH Group which was
founded with the financial advisor of Bac A Commercial Joint Stock Bank is a
well-known brand in the dairy industry of Vietnam with a charter capital is
about 2000 billion VND. Established in 2010, processing and UHT (ultra-high-
temperature) milk is their major business. Madam Thai Huong is the
chairwoman of the board of directors and general director and Vice President
of Bac A Commercial Joint Stock Bank.
The company is famous for its advanced management system and
integrated production process, synchronized by international standards from
planting grass, building barns, cattle feed processing, management veterinary
control, processing, and packaging to the distribution of products to consumers.
It is their goal to become clean milk and UHT milk supplier in Vietnam and at
the same time develop a chain of convenience stores called TH True Mart to
provide clean fresh produce from Farm TH, safe and high-end products for
consumers.
TH True Milk decides to choose its own path to produce clean and fresh
milk products (not reconstituted milk). It can be said that until now, TH True
Milk has had its own position in Vietnam consumers’ minds and has achieved
many successes.
According to measurement data on the retail market of March 2021, TH True
Milk has reached 30% market share in the fresh milk sales segment and ranked
2nd in the top 10 reputable food companies in 2020.

2. Economic Forces
Globalization and International economic integration are increasingly
deepening, especially when Vietnam joined WTO, bringing many opportunities
for many businesses to cooperate with foreign partners, including the dairy
industry. In recent years, because of rising price material prices, the price of
milk products in the world has tended to increase, creating favorable conditions
for price competition in Vietnamese dairy enterprises, moving towards
expanding markets abroad. At the same time, domestic dairy businesses have a
chance to access new, more advanced technologies.
Although COVID-19 in 2019, 2021, and 2022 made the economic
growth of the world decrease, in Vietnam with the Government’s policies and
keen intelligence, Vietnam’s GDP growth still increased. In 2022, the GDP
increased by 8,02% compared with 2021, achieving the highest increase in the
2011-2022 period. The total amount of registered FDI capital as of December
20, 2022, reached 27,72 billion USD, equal to 89% compared to the same
period in 2021. With the data of 2022, the Research by the Central Insitute for
Economic Management Research provides forecasts for the Vietnamese
economy in 2023. Forecast results show that economic growth in 2023 can
reach 6,47% in scenario 1 and 6,83% in scenario 2. Exports for the whole year
increased by 7,21% in scenario 1 and 8,15% in scenario. Trade surplus is
forecast at 5,64 billion USD and 8,15 billion USD.
The increase in economic growth in Vietnam, it effects positively on the
dairy industry, especially TH true milk.
 A closed high-tech production chain "from green pastures to clean
glasses of milk", TH Group not only maintains its pioneering position in the
clean fresh milk and healthy beverage industry. , but also achieved impressive
growth figures in 2022. Many of TH's product lines achieved very high growth
rates from 10% to 60% compared to the same period in 2021.
Prominent is the Fruit Milk Drink industry. While the entire Market
didn’t record growth, the TH true JUICE milk brand of TH organization
achieved 60% growth. In this industry, TH has continuously launched many
new products with more diverse flavors and meets new segments, such as TH
true JUICE milk TOPKID
In the liquid milk industry, while the report shows negative market
growth (-11,3%), TH true MILK records growth of over 15%
In 2022, has made a mark with TH true MILK continuing to innovate,
and pioneer in a segment of high-end products from clean milk. For the first
time on the Vietnamese market, there is a fresh formula milk product TH true
MILK GOLD, that meets the comprehensive nutritional needs of the elderly.
In the same year, the recorded growth of the TH true YOGURT brand’s
products reached 30%, 8 times higher compared with the general growth rates
of the industry (3,7%). Also for the first time, TH true YOGURT
PROBIOTICS Fermented drink milk 85ml obtaining 18 billion probiotics/ box
of TH launched in the market

3. Demographic Forces
Based on population density and spending patterns, divided into 2 groups:
urban and rural
To begin with urban. In 2022, the urban population is 37.09 million
people, accounting for 37.3 %. The average income per person per month in
2022 in urban areas reached nearly 5.95 million VND (an increase of 10.4%
compared to 2021). With higher income, the purchasing power of the urban
population would be bigger. They have high quality life so they care so much
about their health, and they use milk for their family. So they are ready to pay
for high-end products, such as nut milk, formula milk for children, the elderly,
or even teenagers, and oat milk.
About rural. In 2022 The rural population is 62.37 million people,
accounting for 62.7%. The average income per person per month in 2022 in
rural areas reached nearly 3.86 million VND (an increase of 10.8% compared
to 2021). With income rate, they prefer to pay for normal products but still full
of necessary nutrients, like nutritious milk, juice milk, spooned yogurt, and
drinking yogurt. However, both rural and urban tends to be concerned about
health, so nutrition and quality are big factors influencing their decision.
* TH TRUE milk has been very successful in using environment-based
marketing strategies, but there are still limitations and more developed
solutions are needed:
Faced with a difficult economic situation and decreasing consumer
purchasing power, businesses need to have new flexible adaptation measures,
change old strategies and ways of operating within the organization to
regenerate comprehensively restructure the business apparatus. This is to
improve productivity and business performance, find ways to develop and be
highly competitive in the market.
Stabilize the source of input production materials to get the best price in
an inflationary economy.
Complete the risk management structure to avoid urgent risks from
surrounding environmental factors.
Focus on research and development of product quality to meet consumer
needs and trust
Production and design of products are increasingly diverse and rich,
suitable for many customers to retain old customers and attract new customers,
and also customers of competitors.
Actively attacking many market segments with target groups with high to
medium-low incomes, so products need to have many suitable prices to
compete with other businesses.
Research and develop products according to people's age to have a large
market demand.
2. Analyze the effects of natural and technological environment to
marketing activities of a company in cosmetic industry? Provide
recommendations for the company’ future marketing activities. (Chapter
2)
A company's Marketing environment consists of the factors and forces outside
marketing that affect marketing management's ability to develop and maintain
successful transactions with its target customers
Macro environment: forces that shape opportunities and pose threats to the
company.
Natural Environment
 The natural environment involves the natural resources that are
needed as inputs by marketers or that are affected by marketing activities.

 Protection of the natural environment will remain a crucial

worldwide issue facing business and the public.

 Notable 4 trends in the natural environment

 Shortage of raw materials: air and water pollution, water

shortage, renewable resources like food and forestry, scarce non-renewable
resources.

 Increased cost of energy: increased price of oil which lead to

solar, nuclear, wind, and other forms of energy; or high energy-efficient
technologies.

 Increased pollution: look for more ecologically sensitive goods,

recyclable or biodegradable packaging, improved pollution controls and more
energy-efficient operations.

 Government Intervention in Natural Resource Management:

pressure to “go green” for governments.

Technological Environment
 Technological environment are forces that create new
technologies, creating new product and market opportunities.

 New technologies create new markets and opportunities.

 The marketer should watch the following trends in technology:

 Pace of technological change (shorter technological life cycles):

Technology life cycles are getting shorter. For example, the average life of
some computer software products is now well under one year.

 The following trends should be monitored closely

 High R&D budgets: in many industries such as pharmaceutieals,

cars, communications, computers, aerospace, engineering, entertainment, and
consumer electronics.
  Concentration on minor improvements: To reduce risk and cost,
many companies are copying competitors' products, making minor feature and
style improvements, or offering simple extensions of current brands.

 Increased regulation: Statutory and industry regulatory bodies

exist to set safety standards for consumer products and penalize companies that
fail to meet them, resulting in higher costs and longer research times.

One of the most popular brand of comestic industry in Vietnam is “Co

Mem - homelab” - A natural comestic brand
Vietnam is in a very favorable geographical location; nature has favored
our Vietnamese with a vibrant plant world from fruits to herbs. That good
condition helps “Co Mem” quickly obtain raw materials to serve production
needs at a much lower cost than importing from abroad.
Each Co Mem product is marked with "Vietnamese Element." It have
many type of product, such as skincare product extracted from pennywort or
silk, Old coriander seed attar product, makeup product, and shower gel,
shampoo for both children and adult. The ingredient of Co Mem product is all
from natural, for example: locust, dried grapefruit peel, soapnut,….
With the modernization of society, the problem of environmental
pollution is becoming increasingly severe. Therefore, people are increasingly
aware of the importance of living a clean, green lifestyle and prioritizing
health. Thus, in addition to meeting their needs, consumers also care about
whether businesses operate environmentally friendly.
It is obvious to see Co Mem’s development potential. Recently, the brand
has conquered users with quality products and environmentally friendly
packaging made of paper, no plastic film, and recyclable product bottles. In
addition, Co Mem is also a brand that positively inspires and spreads positive
messages “To talk about Co Mem, there are two words “Lanh & That”, to talk
about myself I hope to have two words “Love life”. This brand calling people
to cherish their life, starting with taking care of themselves with pure nature
products, staying away from bad chemicals
Technological Environment
The development of the 4.0 technology era has brought businesses highly
favorable conditions for advertising and promoting brands on mass media and
social networks such as Facebook and YouTube, ... And Co Mem also takes
advantage of this effectively. Thanks to that, the images of the products come
closer to the public
Technological factors not only ensure the development of businesses but
also create competitive advantages. Before going to market, 100% of Co
Mom's products go through 4 steps of quality inspection according to strict
standards, from qualified input materials to inspection of intermediate semi-
finished products and finished products. Production and tracking of products
after shipment. The tests are fully performed at a testing laboratory that meets
GLP standards ISO 17025. Good Laboratory Practice (GLP) is a quality
management system with strict regulations for a testing facility in terms of:
Management system, personnel, organization, facilities substances, equipment,
solvents, chemicals, testing procedures, results reports and records to ensure
testing results are accurate, honest and objective.
Recommendations:
By understanding and focusing on its existing advantages, Co Mem has
developed its Marketing activities methodically and effectively. However, in
the context of the market and customers changing daily, Cocoon still needs to
have plans to adapt.
Corporate social responsibility (CSR) is becoming increasingly important,
with 77% of consumers prioritizing brands committed to helping society
develop and up to 73% of investors saying efforts to improve the Businesses'
environment and society influence their investment decisions. Co Mem needs
to implement some strategies to continue to grow bigger.
Partnering with local organizations effectively demonstrates a
commitment to positively impacting the community. Non-profit organizations
or agricultural support organizations are potential partners. Besides
collaboration, Co Mem should also consider supporting events that positively
impact the community.
In addition, Co Mem should consider partnerships with experts or
influencers in the health field. Besides product promotion, Co Mem should
emphasize natural and organic ingredients in its products and provide
educational content about their benefits when conducting Marketing
campaigns.
 CHAPTER 3

1. Analyze the factors that could influence the customer behaviors when
purchase a mobile phone. Propose marketing solutions for a company in
the sector. (Chapter 3)
“Consumer behaviors are all actions that consumers take during exchange
process. The model of consumer behavior is the process that consumers make
decision on purchasing or using a product/service to satisfy personal needs and
wants.”
Factors affecting consumer behavior:
a. Cultural factors
Culture:
 Culture is the most basic cause of a person's wants and behavior.
 Reflects basic values, perceptions, wants, and behaviors
 Learned from family, peers, school, colleagues
 Watch out for cultural shifts.
Sub-culture: (tiểu văn hóa) groups of people with shared value based on
common life experiences and situations. (nationality, religions, racial groups
and geographic regions)
Social class: Relatively permanent and ordered divisions in a society whose
members share similar values, interests and behaviors. Measured by:
occupation, income, education, wealth, and other variables.
b. Social factors
Groups
Membership groups are groups that have a direct influence on a person's
behavior and to which a person belongs.
Reference groups are groups that serve as direct (face-to-face) or
indirect points of comparison or reference in forming a person's attitudes or
behavior.
Family: Most important consumer buying organization
Family of orientation is made up by the buyer's parents who provide a
person with an orientation towards religion, politics and economies, ambition,
self-worth and love.
The family of procreation - the buyer's spouse and children - have a
more direct influence on everyday buying behavior. This family is the most
important.
Role and status (vai trò và vị thế)
A person belongs to many groups - family, clubs, organizations. The
person's position in each group can be defined in terms of both role and status.
c. Personal factors
Age and Life-Cycle Stage: People change the goods and services they
buy over their lifetimes. Buying is also shaped by the family life cycle - the
stages through which families might pass as they mature over time.
Occupation: Marketers try to identify the occupational groups that have
an above-average interest in their products and services. A company can even
specialize in making products needed by a given occupational group.
Economic Circumstances: Marketers of income sensitive goods closely
watch trends in personal income, savings and interest rates.
Lifestyle: is a person's pattern of living as expressed in his or her
activities, interests and opinions.
Personality and Self-Concept: Personality refers to the unique
psychological characteristics that lead to relatively consistent and lasting
responses to one's own environment. A person's self-concept: people's
possessions contribute to and reflect their identities.
d. Psychological Factors
Motivation: A motive (or drive) is a need that is sufficiently pressing to
direct the person to seek satisfaction. Maslow’s hierarchy of needs implies that
lower level needs must be satisfied prior to higher level needs.
Perception: perception is the process by which people select, organize
and interpret information to form a meaningful picture of the world.
Learning are changes in an individual's behavior arising from
experience.
Beliefs and Attitudes A belief is a descriptive thought that a person
holds about something. An attitude is a person’s consistently favorable or
unfavorable evaluations, feelings, and tendencies toward an object or idea.

Influence the customer behaviors when purchase a mobile phone:

a. Social factors
Today, using technology to access online social networking sites
through popular applications such as Facebook, Instagram, Zalo,... will help
consumers easily search for products. They often search for product
information they are interested in before making a purchasing decision. Among
them, up to 95% of shoppers read online reviews before making a purchase and
91% of consumers said they trust personal reviews and recommendations from
random users on the Internet.
Consumers often tend to consult, receive advice and opinions from
people around them, have a lot of knowledge and experience about the product
and will buy smartphones similar to what their friends, family, and colleagues
are buying. use. This shows that people will be influenced by their peers and
family when making any purchasing decision.
Besides, consumers also tend to imitate famous and influential people
when buying phones. They feel confident in the products that famous stars use
or represent smartphone brands.
b. Personal factors
Making the decision to buy a smartphone to serve a consumer's career
also has a great influence. Because some people only need it for
communication, while others use it to take photos, surf the web, and edit,
people also learn about the features of smartphones.
Product choice is greatly influenced by each individual's economic
situation. Individuals with a low average income or students will choose a low
price that suits their needs, while People with higher incomes choose phones
with higher prices and more features to serve their needs.
The age issue also affects somewhat because usually when students are
of school age, they mainly use smartphones to study. Young people will often
follow the trend of new phone lines from famous brands such as are iphone,
samsung, vivo... As for middle-aged people, they often do not follow trends but
only focus on necessary features.
In addition, depending on age, there will be different smartphone shape
and color requirements. Young people like many colors and eye-catching
shapes. For example, the iPhone launches in many colors so that consumers
have many choices, and Samsung has a line of foldable zlip phones. Young
people like basic designs and colors like black, white, etc.
c. Psychological factors
The decision to buy a smartphone first comes from the consumer's
motivation and need to have a smartphone. Each person will have different
needs to serve personal purposes.
To make choices about product brands, consumers often tend to
remember popular brands in their awareness, then consider whether the
advantages of the smartphone brand match the criteria that they want. whether
they need it or not. They also rely on reviews from the surrounding
environment for reference.
Additionally, they rely on both the experience and knowledge they have
acquired to find products that match their expectations.
Consumers will have ways of viewing, evaluating beliefs and attitudes
about smartphone brands on the market. If consumers have a good view of a
certain brand, they tend to learn about it first, but when they have a bad attitude
about a product, it is difficult for them to change their view of the product. .

SOLUTIONS FOR COMPANIES IN THE SMARTPHONE INDUSTRY:

Firstly, other phone companies need to build their own brands and
promote brand introduction to consumers through promotions, marketing, and
better customer service. .
Second, focus on reasonable price segments because economic factors
are the first influence on smartphone purchases.
Third, diversify marketing forms. Today marketing on technology
platforms is very important for brands.
Last but not least, the quality issues that consumers respond to are
increasingly improving. Research and launch new, exclusive features to attract
and conquer demanding customers.
 CHAPTER 4

1. Steps in identify positioning strategy. Illustrate by an example in

soft drinks industry (Chapter 4)
The way the product is defined by consumers on important attributes - the
place the product occupies in consumers’ minds relative to competing
products.
The importance of positioning
Consumers are overloaded with information about products and
services. To simplify buying decision making, consumers organize products
into categories.
A product's position is the complex set of perceptions, impressions and
feelings that consumers hold for the product compared with competing
products.
Positioning strategy objectives
To search for a new unoccupied position that is valued by enough
consumers and grab it.
To deposition or reposition the competition.
To strengthen a brand's current position in the mind of consumers.
Positioning strategy
Identifying a set of differentiating competitive advantages on which to
build a position
Choosing the right competitive advantages
Selecting an overall positioning strategy
Communicate and deliver the chosen position to the market
PRACTICAL CONTACT FOR MARKET POSITIONING OF COCA
COLA PRODUCTS OF COCA COLA COMPANY IN VIETNAM:
Coca-Cola was prepared by pharmacist John Pemberton in the late 19th
century with the initial goal of becoming a medicine. The Coca-Cola brand is
always the top selling water brand and everyone in the world Everyone loves
Coca-Cola or one of the other attractive exercise drinks.
Today, the Coca-Cola Group has succeeded in the race to expand the
market with many different types of drinks, initially carbonated water, and later
fruit drinks, energy drinks for sports, living water, etc. tea and some other
types.
Coca Cola's market positioning strategy
1. Target market positioning
+ About geography
Coca Cola Vietnam is targeting a large customer base stretching from
urban areas to rural areas, developed delta areas to remote mountainous areas.
From south to north, across the S-shaped strip of land, this brand has appeared
because of its popularity and reasonable price for the majority of consumers.
However, the main goal is to target large cities, places with a large population
concentration, eateries, beverage shops, restaurants, tourist areas,...,. With this
goal, Coca Cola has been and is still focusing on 4 major city areas across the
country including: Ho Chi Minh City, Hanoi, Da Nang, Hai Phong.
+ Regarding demographic characteristics:
Age: from 10 to 50 years old, especially young people from 15-30 years
old
Income: With low price, most people can buy it
Target audience: Active young people: Students, office workers,
workers.
CocaCola's advertisements are often aimed at all audiences, especially
meaningful advertisements that connect and engage people such as "share a
coke".
2. Positioning quality and price:
The two criteria of quality and price are always important criteria for
creating a product.
● Age: from 10 to 50 years old, especially young people from 15 to 30
years old
● Income: with the low price and popularity of carbonated soft drinks,
the majority everyone can buy and use it CocaCola products are priced based
on the buyer's perceived value. Surnames consider the buyer's perception of
value, not the seller's cost, as the basis important for pricing. They use cost-
price factors in the marketing mix to build perceived value in the mind of the
buyer. Price is determined based on the basis based on that perceived value
CocaCola always comes up with strategies to suit market fluctuations. Adjust
product prices so that they do not differ too much from the prices of competing
products; market valuation is relatively low to penetrate the market, putting
quantity and quality first with the hope of attracting a large number of
customers and gaining a large market share. Currently, it has a discount policy
for customers who buy in large quantities.
3. Value positioning
Recognizing the importance of value positioning, CocaCola always
researches and learns to offer suitable products that satisfy customers' needs,
products that are not only meant to quench thirst. physically, but also inspires
spiritual life and connects communities with joy, optimism and happiness, a
product that balances price sales and the quality and value that customers
receive.
CocaCola always has appropriate positioning strategies for products and
highlights the following factors:
- Product attributes: Carbonated drinks with many flavors
- Product benefits: Quench thirst, create a refreshing feeling for users
- Vision value: Announcing the mission "continue to Innovate the world and
Make a difference". Aim to find solutions that lead to positive changes and
build a sustainable future.
- Quantity positioning: CocaCola's global product portfolio includes 4,300
products and 500 brands. In addition, it is also recognized as the best brand of
the year in Vietnam.
- Company initiatives and messages: The company has invested 86 billion
VND in social and environmental initiatives in Vietnam. CocaCola always has
increased awareness of recycling and collection of product packaging. With the
slogan: "Our customers around the world are the ones who enjoy the best
quality beverages." CocaCola is always constantly innovating to enhance the
value of its products.
CocaCola has been very successful in implementing its product
positioning strategy, giving them outstanding success that many businesses
dream of. Thanks to this strategy, Coca has become the leading brand in the
beverage industry in Vietnam. Thanks to the difference and meaningful
messages, Coca has increasingly affirmed its position both now and in the
future.
However, CocaCola also faces great competition, so the pressure on
employees is huge. The company must always research and keep up with
trends and needs to increasingly improve its position.
 2. Choose two most convincing criteria to segment motorcycle market.
Explain the basis of choice with example (Chapter 4)
Definition: Dividing a market into distinct groups of buyers with
different needs, character-istics or behavior, who might require separate
products or marketing mixes.
Reasons for segmentation
From the market: a homogeneous product can not satisfy all customers
in the market.
From the company: company’s resources are limited, can not efficiently
exploit the entire market.
From Marketing activities’ performance: for better marketing activities
orientation, developing policies that best suits target customers, reduce
redundancy, improve activities efficiency, and cost savings.
Segmenting Consumer Markets
Geographic Segmentation: Dividing the market into different
geographical units, such as nations, states, regions, counties, cities, or
neighborhoods.
Demographic Segmentation: Dividing the market into groups based on
variables such as age, gender, family size, family life cycle, income,
occupation, education, religion, race and nationality.
Psychographic Segmentation: Dividing a market into different groups
based on social class, lifestyle or personality, and characteristics.
Behavioral Segmentation: Dividing a market into groups based on their
knowledge, attitude, use, or response to a product.
Requirements for effective segmentation:
Measurability: the degree to which a marketing segment's size,
purchasing power, and profits can be measured.
Accessibility: the degree to which a market segment can be reached and
served.
Substantiality: the market segments are large or profitable enough to
serve.
Actionability: effective programs need to attract and serve the segments.
Example: Honda Vietnam
Overall about Honda: Founded in 1996, after more than 20 years of
presence in Vietnam, Honda Vietnam has continuously developed and become
one of the leading companies in motorcycle production and prestigious
automobile manufacturers in the Vietnam market.
With more than 10,000 employees, Honda Vietnam is proud to offer
customers high-quality products, dedicated services and contributions to a
healthy transportation society.
The slogan “The power of dreams”, Honda wishes to share and join
people in fulfilling their dreams by creating new joys for people and society.
Mission: Maintaining a global perspective, we do our best to provide the best
quality products at reasonable prices to satisfy customers worldwide.
* In the analysis, I choose 2 criteria: Gender (male/female) and Income
(high/middle/low) because:
In terms of gender: male and female will have a choice of different
motorcycle designs.
In terms of income: depending on the income, you can choose an
expensive or affordable motorbike, high quality or not, durable (độ bền), or just
beautiful design.
To better understanding about 2 factors, I will analyze each type of
income with each gender
- High-income male:
Demand: travel needs, self-image, interest in design and brand
Behavior: search for information through advertising, fashion magazines,
marketing; want to catch the trend; buy new at genuine stores.
- Middle-income male
Demand: travel needs, interested in models with high durability and reasonable
prices.
Behavior: consult with friends and relatives and listen to advice from
salesperson to choose the suitable motorcycle model
- Low-income male
Demand: travel needs, used in work as motorbike taxis, high durability, low
fuel consumption.
Behavior: search for information through friends and relatives, maybe acquire
from others, buy when discount.
- High-income female:
Demand: travel needs, self-image, focus on design and color, suitable when
wearing a skirt.
Behavior: buy new at genuine stores; want to capture fashion trends like in ads
and magazines; often buy a scooter for convenience when wearing office
clothes like a skirt.
- Middle-income male
Demand: travel needs, durable, suitable design and price
Behavior: consult market prices and buy when prices are comfortable
- Low-income male
Demand: travel needs, good maintenance, high durability, low fuel
consumption, unexpensive .
Behavior: search for information through friends and relatives, maybe acquire
from others, buy when discount.
Conclusion that, the company is now focusing on serving the middle-
income male segment. Wave Alpha is the best-selling Manual Transmission
Motorcycle in the 6 months of the fiscal year 2020, with total sales reached
255.428 vehicles and accounted for 18% of total motorbike sales.
 CHAPTER 5

1. Analyze the influence of different product component levels on the

purchase of motorcycle products. Propose solutions to complete the
product component levels of motorcycle products. (Chapter 5)
Dividing a market into distinct groups of buyers with different needs,
character-istics or behavior, who might require separate products or
marketing mixes.”
Product Component Level
Core product is the most basic level which addresses the question: What
is the buyer really buying? It consists of the problem-solving or core benefits
that consumers seeks.
An actual product may have as many as five characteristics: a quality
level, features, styling, a brand name and packaging. All are combined
carefully to deliver the core benefit a convenient, high-quality way.
An augmented product around the core and actual products including
additional consumer services and benefits. Today, most competition takes place
at this level.
 Reasons for segmentation
 From the market: a homogeneous product can not satisfy all
customers in the market.
 From the company: company’s resources are limited, can not
efficiently exploit the entire market.
 From Marketing activities’ performance: for better marketing
activities orientation, developing policies that best suits target
customers, reduce redundancy, improve activities efficiency, and
cost savings.
Segmenting Consumer Markets
 Geographic Segmentation: Geographic area, regional size, population
density, climate,...
 Demographic Segmentation: age, gender, family size, family life cycle,
income, education level, religion and nationality.
 Psychographic Segmentation: social class, lifestyle, personality
characteristics of customers.
  Behavioral Segmentation: consumption motivation, benefits found from
the product, intensity of product use, attraction and loyalty to the
product, attitude toward the product.

Selecting motorbike market segments based on 2 criteria:

Income criteria: Choose this criterion because people with different incomes
will have different standards when choosing a motorbike. Researching this
criterion helps research enterprises produce many types of motorbikes, aiming
to provide products with functions and designs that are most suitable for
different income products.
Gender criteria: It's the same motorbike, but each gender has its own choices
such as shape, size, color,...
HONDA – TYPICAL MOTORBIKE BRAND IN VIETNAM
 Founded in 1996, after more than 20 years of presence in Vietnam,
Honda Vietnam has continously developed and become one of the leading
companies in the field of motorcycle production and prestigious automoblie
anufactures in Vietnam market.
 Income criteria:
- Low-income group: Price is their top criterion when choosing a motorbike;
they do not have high requirements for the design and function of the
motorbike. They buy mainly for their travel needs, to use for work, high
durability, low fuel consumption. Usually, I will get information through
friends and relatives. Honda also has digital cars for this group of customers
such as Wave Alpha, Cup, Wave RSX,...
- Middle income group: Price is not their biggest concern and they care more
about design, high durability, and reasonable price. They search for
information through friends, relatives, and listen to consultants about suitable
car models. They often choose mid-range motorbikes such as Visson,
Winner,...
- High income group: They do not care about price and have high requirements
for the quality, design, function, and brand of motorbikes to express their own
image. This group will search for information through advertising channels,
fashion magazines, and marketing to keep up with trends. Honda's high-end car
models such as Air Blace, SH,...
 Gender criteria:
Female:
When choosing regular motorbikes, for women, design is the first thing they
care about before buying and fuel economy is the second thing. Women will
choose models with compact designs that match their style. For example, when
going to work or going out wearing dresses, they often choose scooter models
such as Visson, SH, Lead. Fashionable car colors suit each person's personality.
Male:
For men, Design is a necessary condition, but Gas savings and a durable, strong
machine are sufficient conditions. Besides, men will choose cars with strong
personality designs, large displacement, and masculine colors to suit each
individual need. Honda has the winner X, Honda SH,...
COMPLETE SOLUTION FOR PRODUCT COMPONENT LEVELS OF
MOTORBIKE PRODUCTS:
First is: Completing product policy. The company actively researches and
brings to the market vehicles with diverse designs, many new functions,
equipped with advanced technology to increase competitiveness. Product
colors need to be more diverse to fully meet the needs and tastes of customers.
Second is: Completing market research and forecasting work. The company
needs to learn and accurately identify market needs for future products. These
new products must suit the shape and preferences of Vietnamese people.
In recent years, the trend of switching from manual cars to using scooters has
been increasing, but gas prices are rising, so many people are afraid of scooters.
Therefore, the company should launch a scooter line that saves fuel to the
maximum.
Next: Complete the pricing policy. The company needs to increase production
output of hot car models on the market to increase total output and reduce
costs.
In addition, the company should establish a membership club to answer and
support customer needs, thereby creating a close relationship between
consumers and manufacturers.
 CHAPTER 6

1. How does the price segmentation affect business operation and other
Marketing activities? Give an example of a hotel segmenting their price to
illustrate. (Chapter 6)
Segmented pricing is selling a product or service at two or more prices,
where the difference in prices is not based on difference in costs.
In the market economy, businesses often set “soft prices”. This pricing
mechanism reflects the flexibility of price decisions in businesses.
Forms of segmented pricing:
+ Time-based pricing (season, month, daytime, hour)
+ Location-based pricing (seating at concert)
+ Volume and payment-based pricing
+ Product-segment pricing (different versions of the product)
+ Customer-segment pricing (gender, age, jobs, etc)
-The price segmentation affects business operation and other Marketing
activities:
+ Each price segment will target a certain customer segment.
+ Enterprises earn more profit from selling at different prices than from
selling at the same price.
+ The market is clearly segmented and each segment has distinct needs
differences.
+ Prices in high-priced business segments can still be price-competitive
compared to competitors.
-An example of a hotel segmenting their price:
+ Time division: At different times, due to changes in supply and demand, the
selling price of a product is determined at different prices.
For example, On public holidays of the year, the hotel room rate will be more
expensive than normal days because on those days, there are often many
guests, so there is an additional cost to pay so that the hotel will increase the
room rate.
+ Segmentation by service conditions: hotel room rental rates have different
prices to satisfy diverse needs, and businesses diversify service conditions with
differentiated selling prices.
Example: Daewoo Hotel in Hanoi
+ Duluxe room: $74.75
+ Grand Duluxe room: $91.00
+ Duluxe Suit room: $175.50
+ Club room: $128.70

CHAPTER 7
3. Analyze the advantages and disadvantages of different types of
distribution channel types. A large stationery production companies
will use which type of distribution channel to sell their products?
(Chapter 7)
Distribution channels create a flow of goods from producers, through
intermediaries to final buyer => Distribution channels are the path and mode of
moving goods from the producer to the end consumer.
Functions of distribution channels:
- Research income market information.
- Stimulate consumption.
- Establish and maintain relationships.
- Finishing goods.
- Organizing the circulation of goods.
- Negotiate and negotiate.
- Share business risks.
- Consolidate old markets and develop new markets
A,Direct distribution channel: A channel that has no intermediary level.
- Advantages:
Maintain and strengthen direct relationship with consumers
Meeting market needs promptly
Grasp of market information and movement
Reduce costs of consuming the products, create competitive advantage
Profit concentration
- Disadvantages:
Increase workload for manufacturers
Low level of specialization
Difficult to expand current markets or enter new market
Might face excess inventories or slow inventory turnover
- Apply conditions
Agricultural, fresh food, fragile goods.
Goods with large transport and handling volume.
 Services, internal supply, or small-scale businesses.
B. Indirect distribution channel: A channel that has intermediaries and
appearance of intermediary levels. Between the channel, the members tranfers
the following entities: the physical product, ownership, money or payment,
information, and promotion.
- Advantages:
Wide distribution of goods with expanded market area
Specialization in production and trade helps manufacturers focus on
their work, reducing the workload.
More influence on the market.
Greater channel complexity, reduce inventory risks
- Disadvantages:
Increased distance between manufacturer and consumers in term of
space and time.
Increase costs of distribution, especially in case of ineffective
management
Less control over the flow of products, information, and payments.
- Apply conditions
Large manufacturers
Consumer goods industry
Products of high specialization levels
 A large stationery manufacturing company should use a combination of
both types of distribution channels to sell its products.
Example: Thien Long Stationery Company
Currently, Thien Long Stationery Company is using direct distribution
channels and indirect distribution channels.
a, Direct distribution channel
- B2B model
The company directly sells products to industrial customers at product
display stores and e-commerce sites (flexoffice.com, Shopee, Lazada...). This
is the leading distribution channel between Thien Long and industrial
customers.
In this direct distribution channel, there are only manufacturers and
industrial customers. Manufacturers sell products directly to customers
without going through intermediaries, so they can:
+ Accelerate the speed of goods circulation.
+ Gain higher profits to reduce intermediary costs, do not waste time
transporting and warehousing, and do not have to give discounts to
distributors.
+ Receive new opinions, needs and direct contributions from businesses.
- B2C model
Direct distribution channels include product display and introduction
stores: The company directly sells products to consumers at product display
stores and commercial center offices. Thien Long has a chain of stores under
the FlexOffice brand specializing in retail stationery, including pen products,
to introduce them to consumers as quickly as possible.
b, Indirect distribution channel
- B2B model
Unlike the above channel, this distribution channel, Thien Long has
additional intermediaries such as agents, representative branch offices and
exclusive industrial distributors. The company will sell this product to
intermediaries, who will sell it to industrial customers. With more than
65,000 office sales points named Thien Long, Thien Long Group Joint Stock
Company has been and will affirm its position in the stationery market.
The company will have 4 branch stores and 1 representative office to
distribute goods to exclusive distributors and industrial customers. In
addition, Thien Long also sells products directly to agents and then from
distribution agents to exclusive industrial distributors. These exclusive
distributors can distribute directly from Thien Long's manufacturers but
ensure to satisfy Thien Long's conditions.
- B2C model
Thien Long Group has large distributors in each province, and each
province will have its own agents to distribute in narrower areas such as
private bookstores, stationery stores, etc. To distribute or consume the
company's products, provincial distributors have their own distribution
departments: Large agents, Retail marketers, Distributor, Advertising
department introduces products.

CHAPTER 8
Why should business advertise? What are the requirements for a
successful advertising program. Analyze the effectiveness of advertising
for a brand of your choice in the food and beverage sector. (Chapter 8)
Definition
Any paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor.
Reasons for advertising
+ Customers lacking information about the market.
=> Advertising is one source that provides accurate information to customers
+ Customers lacking knowledge about the products.
In the process of customers planning to buy a product, consumers will compare
and evaluate similar products on the market, thereby making purchasing
decisions, if customers lack knowledge about the product, they will not be able
to compare and evaluate or may misjudge the product) => Reduces the benefits
of the product
+ Advertising has a strong influence on customers’ psychology and perception.
When researching customer psychology, businesses found that advertising also
partially influences purchasing decisions.

For the advertising program to be successful, it is necessary to adhere to

the following guidelines:
1. Information from advertisements must be typical, unique, and rich in
information.
+ Advertising information must be typical, feature, and reflect the primary
benefits of product consumption.
+ In addition to the typical features, it must show the product's unique
features.
+ It needs to be unique to improve the effectiveness of advertising thanks to
its appeal.
+ The high amount of information does not necessarily have to be listed, but
the sentence is short, concise, and succinct, easy to remember for viewers.
2. Advertisement must meet cultural and artistic criteria.
+ Advertising stimulates the flavor but at the same time can still retain the
cultural value of advertising, which is essential.
+ Advertising requires careful study of each region's social, environmental and
cultural factors to have the suitability of the advertising program with
characteristics and customs.
3. Advertisement must be truthful.
+ Show respect for consumers
+ Enhanced corporate image
+ Honesty so as not to push up customer expectations, reduce the reputation of
the product in the market
4. Advertisement must be repeated regularly and at the appropriate time
+ To reach a wide range of customers
+ Have a positive impact on consumer psychology
+ Save costs and achieve high advertising efficiency
5. Advertisement must be practical, effective, and consistent with the
advertising budget.
Advertising costs are too high, so businesses need to have realistic advertising
strategies, ensuring not to waste the value of advertising costs can evaluate
advertising effectiveness by sales revenue, ..

Example
Besides product quality, one factor that makes Coca-Cola successful is
effective communication campaigns. A typical example is the multinational
marketing campaign "Share a Coke."
In Vietnam, the "Share a Coke" campaign called "Give Coca-Cola,
Connect Friends" in the summer of 2014 made a huge splash. Coca-Cola
creates Coca-Cola bottles with Vietnamese names and encourages customers to
share their emotions on media channels. It has become a fever, becoming the
most shared phenomenon on social networks. The main slogan of the "Share A
Coke" campaign is a great and memorable call-to-action phrase that acts as a
sticky note, a reminder in customers' minds. It motivates and encourages
customers to buy and share a bottle of Coke with loved ones and tell their
stories online.
A personal name has an essential meaning for every Vietnamese person.
Coca-Cola printing the consumer's name on the Coca-Cola label has turned the
product into a memorable keepsake and an exciting gift to give friends and
loved ones.
 In the Vietnamese market, Coca-Cola launched 2 main TVCs broadcast
on popular TV channels such as VTV, HTV, etc., with two key messages:
- "Give Coca-Cola, the whole family is happy" with lyrics that are a message
full of creativity and community connection. For the first time in Vietnam, the
Coca-Cola logo "gives way" to letters of love to encourage people to share love
and connect closer together.
- Also, "Give Coca-Cola, Connect Friends" was broadcast with the connection
of friends through each person's unique name printed on Coke bottles. Coca-
Cola also printed on Coke bottles and cans popular Vietnamese nicknames
such as Lan, Huy, Nam, Hien, Thao, Linh, Tuan, Duc, Ha..., later adding other
handles such as "handsome," "pretty girl" and family relationships such as
"dear dad", "dear mom", "youngest darling"...
For young people who regularly use social networks, Coca-Cola also
introduced an application to create cans on Facebook. People can combine
avatars with their friends' names or personal characteristics. After making it,
click share and tag the name of the person you want to give Coca-Cola to, and
you can connect with friends everywhere. 500 pairs of Coca-Cola cans
(character and personality) will be given to lucky players.
In this campaign, Coca-Cola only spends a little effort and money on
advertising because this trend has been spread and is contagious.
The summer 2014 campaign "Give Coca-Cola, Connect Friends" in
Vietnam has achieved desirable results:
- 200,000 people are liking Coca-Cola's fan page, creating more than 40,000
conversations on the topic of printing names on Coke cans; the keyword:
"Giving Coca-Cola to connect friends" gives 54,400 results on Google search
for the keyword "Share a Coke Vietnam" has 548,000 results (results obtained
after one month of implementation).
- The number of Coca-Cola bottles sold increased by 2%, the number of bottles
with a user's name printed on the surface increased by 11%, and the number of
Coca-Cola bottle buyers increased by 870,000.
"Share A Coke" has created clever and seemingly endless "storytelling"
in its advertising - a big plus for Coca-Cola and bringing much value to the
brand. Coca-Cola created an outstanding advertising campaign combining
customer engagement and effective marketing strategies.