Words: 2709
Advanced Marketing Section 1 Exam Question 1: Each department in the enterprise can contribute to the success of the enterprise by not only performing its own tasks well but also collaborating with other department to successfully implement core business processes which include five processes listed below: a. The market sensing process: it is also called as the process of identifying specific needs and segments of market. Not only that, it is also analyzing competitors and performance measurement, value assessment and technology which was released in 1982.
This is a significant example for the market sensing process. b. The new offering realization process: these activities involve in research, development and launch new high-quality services or products in the fast-paced market within the limited budget. The best example for this new offering realization process is the application of Lean methods to shoe-making technology of Nike. By carrying out the Lean principles, Nike has been able to reach the major reduction in making lead time, all kinds of wastes. Eventually this can help in reducing the cost of the product which may help in boosting the sale target. . The customer acquisition process: this is also one of the significant phases in the business development. In this development the aim markets and the potential customers will be defined that would help the entrepreneurs to build up the effective and efficient marketing strategy. One of the famous examples for the customer acquisition process is a Nike ID. Nike has created the Nike ID line for the customers who want to customize their own shoes such as football glide. There are certain customers who are willing to pay more to customize the shoes’ width.
Customer’s shoe design will be received by Nike ID team and the order of production will be sent to the manufacture. They will start making the shoe exactly as a customer wants. The shoes will be delivered after few weeks of procession. d. The customer relationship management process: the relationship management process is involved in with everyone in the company with the customers. The customer relationship management is based on the needs, inputs and feedbacks of customers. This will show how much satisfaction the customers have for the company. This is very important because the company knows where they should start to improve o be a successful company. One of the examples is also about Nike. Nike has built up the return policy and the defective return center. This is very helpful because it will help in solving claims from customers and quality issues. e. The fulfillment management process: this process consists of transactions of the order and approval, on time shipping and payment collection. Another example for this process is also about Nile. Nike has applied a very good RPM system which supports control of purchasing orders, planning, shipping and delivery worldwide. Reference:
Philip Kotler, Kevin Lane Keller (2009), Marketing Management, 13th Edition, Page 75 ??? 76 Question II: I am holding a position in management in Human Resource of Nike Inc. Vietnam. In my own opinions and observation, I think that the most significant demand state which is very irregular because of the period of time such as monthly, weekly, daily or even hourly and it may be seasoning. There is low season and high season. In order to adjust to the irregular demanding, Nike partners have to prepare themselves for this such as ready in their labor force, well-planned for production.
On the other hand, there are seven demands below which are ranked accordingly to their own significant: 1. Declining demand: this is a sign of decreasing in demand or no demand. 2. Overfull demand: when the company cannot cater the needs of the customers. 3. Full demand: it is said that the supplies and the demands are equal. 4. Unwholesome demand: the products still attract consumers that cause the increase of demand however there is the undesirable social consequences for instance environment pollution, criminals and etc. going along with. 5.
Negative demand: the customers do not show any interest in the products. For this example, Nike had hired a 16 year-old employee which turned Nike Company to face the consequences of child laboring. 6. Nonexistent demand: there is no awareness or interest from consumers to the products. That would often happen to the new products therefore the marketers need to collaborate with sale people to launch the marketing campaigns to introduce the new products to the market. 7. Latent demand: it exists when there is a strong need from consumers but the existing products or services cannot satisfy them.
It is clearly seen in Vietnam in terms of infrastructure ??? drainage system in the cities. Reference: Philip Kotler, Kevin Lane Keller (2009), Marketing Management, 13th Edition, Page 48 Question III: In my own opinions, everyone has their own thoughts and beliefs because everyone comes from different walk of life. Hence, there are differences between core beliefs and secondary beliefs. Core beliefs are the necessary thoughts and expectations based on early choices and decisions. Core beliefs are passed on over generations, enhanced by major social institutions and remain stable.
They are not easy to change because they are solidly maintained and reinforced by culture, religion, tradition and moral principles. While, secondary beliefs can be reformed or replaced due to the impacts and influences of environment, cultural phenomena and individual life experiences. For instance, many Asian are becoming more westernize and the Vietnamese too. In Asia, there is no such thing as living together before getting married, however, the young couples are influenced by the western life style and recently live together before getting married.
Another clearly example is that in the accent days, there is no such thing a woman can divorce her husband by herself and the divorce rate is relatively low. However, women are getting more independence in this. There is a higher rate in divorcing ever than before. According to the text book, the primary core beliefs of American are work, marriage, charity activities and honesty. In my point of view, the core beliefs are getting more common than ever and they are overwhelmingly received by not only the Americans but most people in the world. Reference:
Philip Kotler, Kevin Lane Keller (2009), Marketing Management, 13th Edition, Page 121 Question IV: Exploring, identifying, collecting, analyzing and communicating information are the factors that will affect the business decision. According to the text book, a good marketing research should have seven characteristics as follow: 1. Scientific methods: these methods are applied in marketing research in order to get more from the existing theory. It includes observation of a phenomenon, formulation of a hypothesis, prediction, and experimental testing. 2. Research creativity: it is about the innovation and creativity.
They are very important in order to carry out the marketing research, it would help the researchers to overcome both internal and environmental barriers to develop the effective research and resolve issues confidently. 3. Multiple methods: they are more ideal than single method because when the multiple approaches are used the researchers will gain more confident in the results. 4. Interdependence of models and data: the marketing researchers have been aware of the interdependence of models and data, data interpretation follows underlying models which guide the type of information sought. . Value and cost of information: this is very concerning according to the marketing researchers because of the estimation of values of information against its cost. Cost is easily to be evaluated and determined compared to the value. The value of the research depends on the reliability and legitimacy of the findings and management acceptance and response to the research outcomes. 6. Healthy skepticism: this area is where the marketing researchers address a healthy cynicism toward statement of how market works which is raised by managers. 7.
Ethical marketing: both sponsored company and customers gain benefits from marketing researches, however the misuse of marketing research can bring the counter effect and frustration to the customers, for instance customer’s privacy violation. Besides the above 7 factors, there are two factors which I think they are also considered very important: 1. Systematic: the marketing researchers should go through the process that requires the systematic planning and well documented. It would support the scientific methods in collecting, analyzing and testing data prior to hypotheses. . Objective: The research data should reflect the truths and real situations; therefore it is necessary to have research data free from personal or political biases of researchers. Reference: Philip Kotler, Kevin Lane Keller (2009), Marketing Management, 13th Edition, Page 144 Question V: Every company cannot face the fact of its customers’ leaving. This is very dangerous problem if it keeps going on for a long term. It will lead to bankruptcy. Hence, every company tries its best to identify and recognize what is wrong and what makes the customers’ dissatisfaction.
There are three main steps: 1. Identification and measure of company’s retention rate: the holding rate will be recognized and restrained on the numbers of customers and their purchasing volumes. In other words, the retention rate in the service industry is very important compared to other industries. 2. Differentiation and identification of customer attrition to manage the situation better: the differentiating and identifying customer attrition is necessary to carry out in order to figure out why the customers are leaving.
It is dangerous to realize that the reasons are because of service such as poor services, low-quality products, unfair treatments or policies, and not competitive prices causing customer attrition. For instance, VPN is the internet service company in Vietnam. This company is facing the problem with the high customer defection rate because of its poor services including after sale service and unfair policy toward the existing customers and the prospective customers. 3. Retention strategy: the company management must take practical consideration in weighing losses and gains when making decision on investment in retention strategy.
The company only finances for the retention program as long as the lost profit is higher than the cost of discouraging the customer defection rate. During the economic recession, Nike Inc. is very successful in globally retaining its customers that support Nike’s annual revenues consistently to increase. Reference: Philip Kotler, Kevin Lane Keller (2009), Marketing Management, 13th Edition, Page 177 Question VI: Using database to assist company in its marketing efforts is very popular currently. This is a form of using databases of customers or potential customers such as name, addresses, phone numbers, history of transactions and etc. o initiate communications to promote its products or/and services. There are five steps which are needed to carry out: 1. Prospects identification: there are many ways of advertising; however, the most common way is the business reply cards and toll-free phone number to collect responses from existing and prospective customers. With the responses, the company can build up its own customer database through which the best prospects will be identified, classified and contacted by mail, phone in the effort to attract them to be company customers. 2.
Decision-making on which customer should receive a particular offer: every company wants to boost their sale target as high as possible; hence, they have strategy and set up the criteria for the target customers for particular offers. Based on the customer database, the company can identify and classify its customers by category and the particular offer will be done for the respective groups of target customers. 3. Deepening customer loyalty: retaining customer loyalty is one of the strategies of the company therefore there are many ways to deepen customer loyalty.
Sending gifts on the special occasions to customers for instance customer’s birthday, granting VIP cards and/or discount coupons, sending advertisement brochures are applied broadly in Vietnam and other countries nowadays. 4. Reactivation of customer purchase: this is a new marketing which is automatic. The purpose is to send the shopping reminders to the existing customers on the special anniversaries, off-season promotions and regular promotions on quarterly or yearly basis. In the other words, the customer’s database is extremely important because the company cannot do anything without the database. . Avoidance of serious customer mistakes: to find the customer’s database is very important but how to use the database is more important. It is because without carefully handle the database, it can lead to many mistakes which can cause in losing customers, damaging company image, declining in sales and revenues. An example for this factor is one head hunting agency has lost the service contract with Nike Inc Vietnam because they did not use their customer database properly. They cannot carter the needs of the customers. Reference:
Philip Kotler, Kevin Lane Keller (2009), Marketing Management, 13th Edition, Page 183-185 Question VII: Proctor and Gamble (P&G) is famous for its household products. There are more than 180 countries which have P&G and P&G is a global leader in 22 different product categories. According to the text book, there is a list of ten P&G capabilities and philosophies relating to its successful marketing. The below five P&G capabilities and philosophies selected from the successful tips of P&G in marketing field: 1.
Customer knowledge: P&G has mastered the needs, wants, desires and expectation of its consumers and business partners. Hence, P&G can elevate values of the products and services that will help P&G move beyond its competitors. 2. Product innovation: P&G devoted 3. 5% of sales on product innovation. It helps P&G in bringing in the high qualified employees from the famous universities in the United States. Hence, it helps bringing in the successful results in the current competitive environment. 3. Quality strategy: the quality is always the first concern to the customers.
Therefore, P&G has designed premium quality and kept moving with improvement in quality of its products and services. 4. Multi brand strategy: different customers have their own favorite brands, hence, P&G has applies this strategy successfully by having multiple brands in the store. If there are more choices for the customers, they will help in improving the customers’ satisfaction. 5. Manufacturing efficiency and cost cutting: P;G is also like other company, they want to have efficiency and cost saving manufacture.
Hence, they have supported and encouraged the programs or projects of production development and improvement that would help to speed up the manufacturing efficiency and retain the costs at the lowest in the industry. Reference: Philip Kotler, Kevin Lane Keller (2009), Marketing Management, 13th Edition, Page 279 Question VIII: Brand equity consists of all values added to the products or services and it might reflect the customer’s perceptions with respect to the brand. The below five element keys: 1.
Brand loyalty defines the reliable attitudes and authenticity of customers toward a particular brand through their iterating purchases regardless the marketing pressure caused by competing brands. A good example is Nike for building up the brand loyalty. Compared to brands such as Adidas, Sketcher, and Puma. Nike has built up and taken the commitment of customers which make the customers at the end of satisfaction. 2. Brand awareness is about the recognition of the customers. It is a main step in promoting a product because this factor help differentiate one product from its competitors.
An example for this brand awareness for the Vietnamese is that “Philip” is good for the household electronic. 3. Perceived quality is the perception of customers of the overall quality or superiority of a product or service. In the Vietnam market, Honda can consider the best motorcycle. 4. Brand associations have to do with different individual. It is because everyone has one own feelings, beliefs, experiences in order to judge the product of that brand. For instance, when Vietnamese thinks of Toshiba, he/she will think about the household electronics which are really long lasting.
Hence, when Toshiba launches its computers and another hi-teach electronics, those who are familiar with Toshiba will eventually buy the products. 5. Other Proprietary Brand Assets such as trademark, patents protection. This is very important because it protects the company’s image. For example, Vinasun is a famous taxi company in Vietnam. Hence, there are many companies which names Vinasum in order to get the customers. Reference: Philip Kotler, Kevin Lane Keller (2009), Marketing Management, 13th Edition, Page 278