Marketing Channel

1) Compare conventional marketing channel and vertical marketing system. Discuss three
types of vertical marketing system.
2) Distinguish 3 distribution strategies. Provide examples to support your explaination.

Câu 1) – Conventional Channel: Independent producers, wholesalers, and retailers. Each seeks to maximize its
own profits, often leading to channel conflict and a lack of control.
- Vertical Marketing System (VMS): Producers, wholesalers, and retailers act as a unified system. One member
owns, contracts, or holds dominant power to maximize overall channel efficiency.

1. Corporate VMS: Combines successive stages of production and distribution under single
[Link]: Zara owns its design, manufacturing, logistics, and retail stores.
2. Contractual VMS: Independent firms join together through formal contracts to achieve economies of
[Link]: McDonald’s franchise system.
3. Administered VMS: Coordination is achieved through the size and dominant power of one channel
[Link]: Walmart dictates terms and logistics to its suppliers due to its massive buyer power.

Câu 2

1. Intensive Distribution:

Concept: Stocking products in as many outlets as possible for maximum consumer convenience.

Product Type: Convenience goods (routine purchases).

Example: Coca-Cola (sold in supermarkets, convenience stores, gas stations, and vending machines).

2. Selective Distribution:

Concept: Using more than one, but fewer than all intermediaries willing to carry the product.

Product Type: Shopping goods (where buyers compare price, quality, and style).

Example: Sony TVs or Nike shoes (sold only through selected electronics or sporting goods stores).

3. Exclusive Distribution:

Concept: Giving a very limited number of dealers the exclusive right to distribute the product in a region.

Product Type: Luxury / specialty items (maintains high prestige and brand control).

Example: Rolex watches or Rolls-Royce automobiles.

Chap 10: Pricing: Understanding and Capturing Customer Value

Chapter 11 Pricing Strategies: Additional Considerations
1) Distinguish between value-based pricing and cost-based pricing.
2) Differentiate between market skimming and market penetration pricing strategies. Explain
the conditions within which they are effective.
Câu 1:
1) Value-Based Pricing
 - definition: Setting prices based on buyers' perceptions of value rather than on the seller's cost.
- Pricing Flow: Assess customer needs & value perceptions → Target price based on value → Determine
allowable costs → Design product to deliver value at target price.
2) Cost-Based Pricing
- Definition: Setting prices based on the costs of producing, distributing, and selling the product plus a fair
rate of return for effort and risk.
- Pricing Flow: Design a good product → Determine product costs → Set price based on cost →
Convince buyers of product’s value.
Câu 2:
1. Market-skimming pricing: The company sets a high initial price for a new product to earn maximum
revenue from customers who are willing to pay more.
- Effective when: The product has high quality and a strong image, enough buyers are willing to pay the
high price, and competitors cannot easily enter the market.
2. Market-penetration pricing: The company sets a low initial price to attract many buyers quickly and gain
a large market share
- Effective when: The market is price-sensitive, the market is large, costs fall as sales volume increases,
and low prices help keep competitors away.

Chapter 8 Products, Services, and Brands: Building Customer Value

Chapter 9 New-Product Development and Product Life Cycle Strategies
Each product will have a life cycle, although its exact shape and length is not known in
advance. Briefly explain each phase of the product life cycle.
- The product life cycle (PLC) has four major stages: introduction, growth, maturity, and decline.
1. Introduction: Sales grow slowly because the product is newly introduced. Profits are low or negative
because of high marketing and development costs
2. Growth: Sales increase rapidly and profits rise. More competitors enter the market, so the company
improves the product and expands distribution.
3. Maturity: Sales growth slows down because most potential buyers have already purchased the product.
Competition becomes intense, so firms modify the product and marketing mix.
4. Decline: Sales and profits decline because of changes in consumer tastes, technology, or increased
competition. The company may maintain, harvest, or drop the product.

Chapter 5: Segmentation- Targeting- Positioning Strategies

1) Explain the four major steps in designing a customer-driven marketing strategy.
2) Why marketers need to segment the market? Explain the different segmentation variables used in
segmenting consumer markets.
Câu 1:
1. Market segmentation: requires dividing a market into smaller segments with distinct needs,
characteristics, or behaviors that might require separate marketing strategies or mixes.
2. Market targeting: Evaluating each market segment’s attractiveness and selecting one or more specific
segments to enter and serve.
3. Differentiation: Differentiating the firm’s market offering to create superior customer value relative to
competing offers.
4. Positioning: Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers.
Câu 2:why
- Diverse Consumer Needs: Buyers have unique wants, resources, locations, and buying attitudes; one
product cannot satisfy everyone.
 - Efficient Resource Allocation: Helps firms focus limited marketing resources on the most profitable
customer groups.
- Better Marketing Mix: Enables companies to design tailored products, prices, promotional messages,
and distribution channels for specific audiences.
- Competitive Advantage: Allows companies to identify underserved niche markets and avoid direct
competition with larger rivals.
1. Geographic Segmentation:
- Concept: Dividing the market into different geographical units.
- Variables: Nations, regions, states, cities, climate, population density
2. Demographic Segmentation:
- Concept: Dividing the market based on measurable population characteristics
- Variables: Age, life-cycle stage, gender, income, occupation, education, religion, generation
3. Psychographic Segmentation:
- Concept: Dividing buyers based on social class, lifestyle, or personality characteristics.
- Variables: Lifestyle (e.g., fitness enthusiasts), social class, personality traits
4. Behavioral Segmentation:
- Dividing buyers based on their knowledge, attitudes, uses, or responses to a product.
- Occasions ,benefits sought, user status, usage rate, brand loyalty.

Chapter 5 Consumer Markets and Consumer Buyer Behavior

1) A consumer's behavior is influenced by social factors, such as the consumer's small groups, family, and
social roles and status. Explain the differences among these social factors.
2) Each person's distinct personality influences his/her buying behavior. Personality is usually described
in terms of traits. What are these traits, and how do they affect the way people purchase items? Give at
least one example.
Câu 1:
1. Small Groups: Includes membership groups (friends, co-workers) and reference groups (idols,
influencers). Creates peer pressure and word-of-mouth influence on brand choices.
2. Family: The most important buying organization in society. Has the strongest and most lasting influence
on daily buying habits
3. Roles & Status: Role is the expected activity in a position; Status is the esteem given to it by society.
People buy products to reflect their position in society
Câu 2:
- Personality Traits is Unique psychological characteristics of a person: Self-confidence, Autonomy,
Sociability, Adventurousness.
- Personality traits: Influence how consumers respond to marketing, handle risk, choose brands, and
express themselves.
- Brand personality: Brands are given human traits to match the consumer’s actual or ideal self-image.
Examle : Trait: Sociability & Trend-seeking->Wants to socialize and stay trendy->Chooses
Mixue/Chagee/Starbucks to hang out & check-in

Chapter 1 Marketing: Creating and Capturing Customer Value

1) Compare the selling and marketing concepts, listing the key components of each philosophy.
2) Briefly explain the societal marketing concept. Give an example of an organization that has
effectively used the societal marketing concept.
Câu 1:
1. Selling Concept
- Focuses on the seller’s needs and existing products
- Inside-out perspective (starts at the factory/production line)
 - Heavy selling and aggressive promotional efforts
- Profit through high sales volume.
2. Marketing Concept
- Focuses on the buyer’s needs and customer satisfaction.
- Outside-in perspective (starts with target market needs).
- Integrated marketing activities (the 4 Ps working together)
- Profit through customer satisfaction and long-term relationships.
Câu 2:
- The societal marketing concept:the company’s marketing decisions should consider consumers’ wants,
the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
- Example: Starbucks reduces the use of single-use plastic straws and encourages customers to use
reusable cups. This helps satisfy customers who care about the environment while reducing plastic
waste. Therefore, Starbucks balances customer satisfaction, company profits, and society's well-being.

Chapter 3 Analyzing the Marketing Environment

1) What is demography? Why is the demographic environment of major interest to marketers? Provide
example(s) to support your explanation.
- Demography is the study of human populations in terms of size, density, location, age, gender, race,
occupation, and other statistics.
- People make up markets: Demographic shifts directly reflect changes in consumer needs, buying power, and
market demand.
- Predictable trends: Demographic data helps companies forecast market size and adapt products to shifting
population structures.
- Example: Vietnam has a large number of young consumers who use smartphones and social media. Therefore,
companies such as Shopee and TikTok Shop can target young customers through online shopping and social
media marketing.

2) What are the major trends in today's natural environment? How do these trends affect
companies?
- Shortages of Raw Materials: Depletion of non-renewable resources (e.g., water, oil, timber, rare minerals).
- Increased Pollution: Air/water pollution, plastic waste, and carbon emissions.
- Increased Government Intervention: Strict environmental laws, carbon taxes, and sustainability mandates.
- Growing Environmental Sustainability Movement: Rising consumer demand for eco-friendly products.

=> Higher Costs: Scarcity drives up raw material and energy prices.
=>Operational Shift: Companies must invest in green production, sustainable sourcing, and recyclable
packaging.
=>New Opportunities: Creates markets for green products (e.g., electric vehicles like Tesla/VinFast, paper
straws, solar panels).
3) Why is the technological environment such a dramatic force in today's market?
- Rapid Change & Creative Destruction: Technology creates new markets and opportunities while quickly
making old products obsolete
- Changes Consumer Behavior: E-commerce, mobile payment apps (Momo, GrabPay), and AI-driven
recommendations completely change how consumers discover, evaluate, and buy goods.
- Competitive Advantage: Companies that adopt new technology quickly gain a massive lead over competitors
who fail to adapt.
1)Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly
explain each phase of the product life cycle
1 Introduction: Low sales, high marketing/R&D costs, negative/low profits, little to no competition. Build
product awareness and encourage trial adoption
2 Rapid :sales growth, rising profits (economies of scale), new competitors enter the market. Maximize market
share and build brand loyalty/distribution.
3 Maturity: Sales peak then slow down, market saturation, intense price competition, profits stabilize or begin to
decline. Protect market share through product differentiation and finding new market segments.
4 Decline: Consistent drop in sales and profits due to technological advances, market saturation, or changing
consumer preferences. Reduce costs, harvest remaining value, or phase out/discontinue the product.