NGUYEN HOANG TIEN DINH BA HUNG ANH GLOBAL STRATEGIC MARKETING MANAGEMENT NGUYEN HOANG TIEN DINH BA HUNG ANH GLOBAL STRATEGIC MARKETING MANAGEMENT Warsaw 2017 Dr Nguyen Hoang Tien wrote chapters: I, III, IV, V and VI. Dr Dinh Ba Hung Anh wrote chapter II. © Copyright 2017 by Wydawnictwo EMENTON Issue I, Warsaw 2017 All rights reserved. Any fragment of this book may not be reproduced, copied or saved in processing systems or any other form using mechanical and electronic devices or others with- out permission of the publisher.
ISBN 978-83-65009-22-7 Publisher: Wydawnictwo EMENTON ul. 11 01-173 Warszawa e-mail: biuro@ementon.pl Printing and binding: Drukarnia cyfrowa ELPIL ul. Artyleryjska 11, 08-110 Siedlce tel.: (25) 643-50-42, fax: (25) 643-43-46 e-mail: info@elpil.pl THIS BOOK IS DEDICATED TO NGUYEN THANH VINH BORN IN 04.2016 Table of contents Foreword. 11 Chapter I INTRODUCTION TO GLOBAL MARKETING.
MARKETING AND MARKETING CONCEPT. The Marketing Concept. MARKETING STRATEGY AND MARKETING MIX. Target Markets and Marketing Mix.
MANAGEMENT ORIENTATION TO GLOBAL MARKETING. GLOBAL MARKET AND GLOBAL MARKETING. Global Marketing Issues. Global Marketing Practices.
GLOBAL MARKETING IN SUPPLY CHAIN MANAGEMENT. 64 Chapter II MARKET RESEARCH METHODS. MARKET RESEARCH PROCESS. Market Research and Marketing Research.
Market Research Process. PRIMARY AND SECONDARY RESEARCH. Primary or Secondary Research. Sources of Data for Research.
Primary Research Techniques. SAMPLING AND INCREASING RESPONSE RATES. RELIABILITY AND VALIDITY OF RESEARCH. ETHICAL ISSUES OF RESEARCH.
95 Chapter III MARKET ENTRY STRATEGIES. BARRIERS OF MARKET ENTRY. MARKET ENTRY STRATEGIES. 114 Chapter IV STRATEGIC MARKETING MANAGEMENT.
Different Levels of Strategy. KEY CONCEPTS OF STRATEGIC PLANNING. PROCESS OF STRATEGIC PLANNING. STRATEGY IMPLEMENTATION AND CONTROL.
151 Chapter V SEGMENTING, TARGETING, POSITIONING. CONSUMER MARKET AND ORGANIZATION MARKET. Consumer Market and Organization Market. Consumer Demand and Organization Demand.
CONSUMER BEHABIOR AND BUYING DECISION. Consumer Buying Behavior. Consumer Buying Decision Process. Factors Affecting Consumer Buying Decision Process Motives.
ORGANIZATION BEHAVIOR AND BUYING DECISION. Organization Buying Behavior. Organization Buying Decision Process. Factors Affecting Organization Buying Behavior.
SEGMENTATION, TARGETING, POSITIONING. Market Segments Targeting. Positioning on Targeted Market Segments. Marketing Mix and Positioning.
184 Chapter VI SERVICE MARKETING. CHARACTER OF SERVICE MARKETING. SERVICE MARKETING MIX. Product Life Cycle.
Role of Product in Service Marketing. Market Entry Pricing Strategies. Pre-service Process. In-service Process.
Post-service Process. People Strategy Mix. 237 LIST OF ILLUSTRATIONS. 241 LIST OF TABLES.
243 9 Foreword Marketing has strong influences on the management of a firm, internal, inter-firm relationships, and the supply chain. The marketing, as a business philosophy, guides firms to look for customer satisfac- tion at profit in a coordinated manner. Marketing means a basic set of values and beliefs about the importance of the customer that guide the firms in their daily operations. Marketing also provides philosophical foundation for human behaviors within a firm.
In other words, market- ing as a business philosophy, guides a firm's behaviors to develop, maintain, and enhance inter-firm relationships to satisfy customers. Marketing is also a necessary component for implementing supply chain management. One of the components of supply chain manage- ment implementation is partnership with compatible corporate philos- ophies, at least for key relationships. Marketing should be the compat- ible supply chain partners' philosophy, so all partners in the supply chain strive to satisfy customers at a profit through inter-functional coordination within and among the supply chain partners.
Thus, under compatible marketing philosophies, supply chain partners become more willing to be efficient and effective toward a common goal which is customer satisfaction at a profit. Effective supply chain man- agement requires all partners in the chain to build and maintain close long-term relationships. Successful supply chain relies on forming strategic partnerships that means long-term, inter-firm relationships with trading partners. This book is about marketing management, its role and im- portance to the supply chain management in a global scale.
Second book published simultaneously is about supply chain management on which marketing and marketing management have great impact. As 11 marketing and supply chain are interrelated research areas, both of these books could be useful for university students to study the “Mar- keting Management” and “Supply Chain Management” courses at both graduate and postgraduate levels. Dr Nguyen Hoang Tien 12 Chapter I INTRODUCTION TO GLOBAL MARKETING Objectives: Define marketing, principles of marketing and marketing management Define the marketing strategy and marketing mix Define global market and global marketing Global marketing in supply chain management MARKETING AND MARKETING CONCEPT MARKETING STRATEGY AND MARKETING MIX GLOBAL MARKET AND GLOBAL MARKETING GLOBAL MARKETING IN SUPPLY CHAIN MANAGE- MENT I. MARKETING AND MARKETING CONCEPT I.
Marketing Marketing is an area of research on the needs and on how busi- ness can satisfy customer needs in profitable ways. Marketing is both a science (economic science) and an art (to make people satisfied, to gain their trust and sympathy). Although there is no single definition of marketing, it is usually accepted that marketing consists of individual and organizational ac- tivities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promo- tion and pricing of goods, services and ideas. So, marketing consists 13 of many activities which are aimed at facilitating and expediting ex- changes.
Marketing facilitates the satisfying exchange relationships and for an exchange to occur, four following conditions must exist: Two or more individuals, groups or organizations must par- ticipate; Each party must possess something-of-value that the other party desires; Each party must be willing to give up something-of-value to receive something of value that the other party holds; The parties must be able to communicate with each other to make their something-of-value available. Marketing concept Values A (seller) B (buyer) Values Source: Own development Table 1. Exchange relationship SELLER wants BUYER wants High price (profit) High quality (reliability) Fair payment Values for money Branding On time delivery Continuing cooperation After sales services and warranty Source: Own development 14 There is one thing to be remembered that the exchange must be satisfying to both buyer and seller. Satisfaction for the buyer may re- sult from being satisfied with the product and service or with the transaction itself, whereas satisfaction for the seller is derived from making a profit through a particular exchange relationship, or from achieving another organizational objective.
Although it is mentioned that there is no single definition of marketing, the concepts of ex- change and customer satisfaction are the two most popular compo- nents of a definition of marketing. Philip Kotler (1988, p3) defines marketing as: “….as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”. Before, that is in 1972, he proposed that the es- sence of marketing is the transaction (exchange of values actually made between parties) and, thus, marketing is specifically concerned with how transactions are created, stimulated, facilitated, and valued. Drucker, marketing is about understanding and properly responding to (fulfilling) the needs of customers.
American Marketing Association (1985) defines marketing as: “…the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create ex- changes that satisfy individual and organizational needs”. In other words, the objective of marketing is creating exchanges, and the out- put of it is customer satisfaction. Kotler (1997) and Churchill and Peter (1995) defined an ex- change as a process in which two or more parties voluntarily provide something of value to each other. According to Kotler (1997), a trans- action takes place when an agreement is reached, whereas exchange is the process to execute an agreement.
Exchange takes place within 15 a market, defined as a collection of buyers and sellers that interact with each other (Pindyck and Rubinfeld, 1992). In this context, Churchill and Peter (1995) proposed various parties who are involved in the marketing effort: firms that produce goods or services, whole- salers and resellers of goods and services (such as stores), and cus- tomers or clients and after-sales service operators. In an express recapitulation we agree that those above men- tioned definitions of marketing rest on the following core concepts: Needs – the state of lacking something, both materially and spiritually; Wants – the expressions of needs; Demands – the expression of needs in certain economic conditions; Products – instruments to fulfill the needs of customers; Utility – how products effectively fulfill the needs of cus- tomers; Value – customers benefits brought about by products compared to the price they have to pay; Satisfaction – an emotional state to be achieved by compar- ing real benefits brought about by products and prior ex- pectation; Exchange – a voluntary behavior to give up something for something in return; Transaction – the exchange expressed in detail by terms of agreement such as price, place and time of a deal; Relationship – relation between the buyers and the sellers which could be transactional (one-off) or based on long term mutual benefits and interests; 16 Market – a place or space where the buyers and the sellers meet to carry out transactions; Marketer – market maker, marketing staff. It must be clear that marketers do not create needs.
Needs pre- exist marketers and hence marketers do influence wants and demands. Defining customer’s wants and demands is not easy. Marketers may need to teach customers to learn what they want. Consider high tech- nology products such as iPhone and Nokia as examples.
Marketing occurs in a dynamic environment. It exists in an en- vironment of changing forces such as laws, regulations, political ori- entations, social pressures, economic issues and competitive condi- tions and technological changes which will be discussed later in this chapter. These factors influence the effectiveness of marketing in fa- cilitating and expediting changes. Marketing involves product, place, promotion and pricing ac- tivities.
It involves designing and developing a product, communi- cating and making the product available to the right people at the right time at an acceptable price. Marketing activities are important to businesses and the whole economy. A business organization must sell products or services or ideas to survive and remain healthy financially and marketing activi- ties, whether directly or indirectly, help sell the organization’s prod- ucts. Marketing ultimately helps to keep the economy alive and healthy.
As technology develops, it drives down the cost of globaliza- tion and as a result, global competitors are penetrating more markets and this has increased competition tremendously in all major markets. The increase in competition is expected to continue to a level that has never been experienced before. Hence, marketers must think globally, strategically and creatively to maintain their own competitive position. 17 Being offered with more choices and the freedom to choose, custom- ers will become more demanding, making it difficult for marketer to satisfy them and maintain long-term relationships.
Mass customization and relationship management are some of strategies that can be adopt- ed in creating better value for customers. Hopefully, through this, cus- tomers can appreciate their suppliers better and continue working them. Marketing Management After understanding marketing as such, it is now necessary to consider the key role of marketing management in enterprises. Mar- keting management is defined as a process of planning, organizing, implementing and controlling marketing activities to facilitate and expedite exchanges effectively and efficiently.
Planning should be a systematic and continual process that focuses on assessing external opportunities and internal resources. Organizing marketing activities must involve developing the internal structure of the marketing unit to direct them (marketing activities). Implementing the marketing plan should involve all-out co-ordination of marketing activities, employee motivation and effective communication within the marketing unit.