Session 1

Marketing in
a Nutshell
(Introduction to Marketing)

Prepared by Kim Du
Objectives & Key terms
1. Define Marketing and Steps in Marketing Process
2. Customer Need, Want, and Demand
3. Customer Driven Marketing Strategy
• Production, Product, Selling, and Marketing Concepts
4. Marketing Strategy and Marketing Mix
5. SWOT Analysis
1. Define Marketing and
Steps in Marketing Process
- What is Marketing?
→ The process by which companies
→ create value for customers and society,
→ capture value from the customers in return.

- Marketing Process

Kim Du - Adapted from Philip Kotler, Gary Armstrong, Pearson Education

International School of Business (ISB) - University of Economics HCMC
2. Understand Customer
Need, Want & Demands
- Customer Needs, Wants, and Demands
States of deprivation
• Physical—food, clothing, warmth, safety
Need • Social—belonging and affection
• Individual—knowledge and self-expression

❖ Maslow's Hierarchy of Needs

= a powerful tool to tap into consumer psychology

Form that needs take as they are

Want shaped by culture and individual
personality

Demand Wants backed by buying power

Kim Du - Adapted from Philip Kotler, Gary Armstrong, Pearson Education

International School of Business (ISB) - University of Economics HCMC
2. Understand Customer
Need, Want & Demands
- Customer Needs, Wants, and Demands

It’s afternoon. When you’re hungry, you Need FOOD.

Talking about the specific kind of food, you Want

-- shaped by culture and individual personality

In economics, demand is the quantity of a

Demand good that consumers are willing and able
to purchase at various prices during a
given period of time.

5 mil VND/bowl
Kim Du - Adapted from Philip Kotler, Gary Armstrong, Pearson Education
International School of Business (ISB) - University of Economics HCMC
3. Customer Driven Marketing Strategy
- Marketing Management - Marketing Management Orientation
The art and science of choosing target Production concept
markets and building profitable • Production and distribution efficiency
relationships with them. Product concept
• What customers will we serve? • Quality, performance and innovative features
• How can we best serve these • Continuous improvements Marketing myopia…
customers? Selling concept
• Pushing sales volume > Customer relationships
• Quantity > Quality
Marketing concept
• Needs → Wants → Demands
Societal Marketing concept
• Individual wants also satisfy social needs
• My consumption is “good”
3. Customer Driven Marketing Strategy
- Marketing Management - Marketing Management Orientation
The art and science of choosing target Production concept
markets and building profitable • Production and distribution efficiency
relationships with them. Product concept
• What customers will we serve? • Quality, performance and innovative features
• How can we best serve these • Continuous improvements Marketing myopia…
customers? Selling concept
• Pushing sales volume > Customer relationships
• Quantity > Quality
Marketing concept
• Needs → Wants → Demands
Societal Marketing concept
• Individual wants also satisfy social needs
• My consumption is “good”
4. Marketing Strategy & Marketing Mix

- What is Marketing Strategy?

The marketing logic
which the company hopes to create customer value
and achieve profitable relationship.

- STDP - Marketing Mix – 4Ps

▪ Segmentation ▪ Product
▪ Targeting ▪ Price
▪ Differentiation ▪ Promotion
▪ Positioning ▪ Place

Kim Du - Adapted from Philip Kotler, Gary Armstrong, Pearson Education

International School of Business (ISB) - University of Economics HCMC
4. Marketing Strategy & Marketing Mix

What How much

How Where

Kim Du - Adapted from Philip Kotler, Gary Armstrong, Pearson Education

International School of Business (ISB) - University of Economics HCMC
4. Marketing Strategy & Marketing Mix
The Evolution of the Marketing Mix

4P 5P 6P 7P 4C
• Product • Product • Product • Product • Customers
• Price • Price • Price • Price • Costs
• Promotion • Promotion • Promotion • Promotion • Communicate
• Place • Place • Place • Place • Convenience
• People • People • People
• Process • Process
• Physical evidence
(McCarthy, 1964) (Judd, 1987) (Kotler, 1984) (Booms and Bitner, 1981) (Lauterborn, 1990)

Kim Du - Adapted from Philip Kotler, Gary Armstrong, Pearson Education

International School of Business (ISB) - University of Economics HCMC
 In the past, most Indians lived in rural areas where they used to clean their teeth
with leaves of a plant. When Colgate entered this big market, they applied the following strategy:
COLGATE IN INDIA

At first, they hired van drivers to go to every village; on each van they played radio advertisements
which educated Indians about the use of toothpaste to build up confidence and create more gender
ACTIVITY:

attraction. Then instead of selling toothpaste in normal packages

at more than $2 each, they made small tubes of toothpaste priced
at below 50 cents. Colgate made huge success with this strategy.

Questions:
1. Identify needs of people living in rural areas in the case.
2. How did Colgate create a want and a demand?
3. Do you think Colgate had a smart marketing strategy?
Why or why not?
5. SWOT Analysis
Internal

distinctive competence of an organization constraints that hinder

is more than what it can do movements in certain directions

refer to favorable external factors that could an unfavorable trend that has the
give an organization a competitive advantage potential to do harm to the organization

External

Kim Du - Adapted from Philip Kotler, Gary Armstrong, Pearson Education

International School of Business (ISB) - University of Economics HCMC
 Assume the context is during
OMACHI INSTANT NOODLES

the outbreak of COVID-19.

ACTIVITY:
 - Potato starch - Lack of market penetration
- Wide spectrum of product portfolio - Need more investment in new technologies
- Affordable, accessible, comes in a variety of flavors - Investment in Research and Development is limited
- Top of mind in premium instant noodles cup - Low level of social media advertisement
SWOT Analysis

- Diverse Marketing Channels

ACTIVITY 2:

- Potential market
• Vietnam ranks no.3 of the world’s leading - Competitive marketplace
nations in instant noodle consumption • A significant growing number of enterprises from
• Vietnam’s instant noodle consumption has been growing abroad and domestic joining the market.
steadily • Increase in the number of fast food restaurants both
- Less home food preparation in local and Western styles.
- High demand for greater convenience in food products & - Public and media scrutiny over the health impact.
preparation - Increase in health consciousness: lifestyle changes - more
- The working population now prefers affordable + quick meals healthy and balanced lifestyles
- The innovative in manufacturing and communications of - No switching cost
instant noodles - Immense growth of fresh food delivery service
- Huge demand under COVID-19
FOR THE NEXT CLASS

• Re-read Chapter 1 + 2
• Form groups (ISB E-learning/Groups List)
• Read Chapter 3 + 4