Session 6: Analyzing consumer behavior: targeting attractive market segments,

differentiating and brand positioning

Lo1. Fundamental tools in marketing

Fundamental tools in MKT’s toolkit include → market segmentation + target marketing +
product positioning → provide the platform with most effective MKT Programs

Market The process of dividing market into Market Segmentation: A smartphone

Segmentation distinct subsets of customers with brand divides customers into groups:
similar needs and characteristics (that
lead them to respond in similar way) ●​ Students (affordable phones)
●​ Gamers (high-performance
phones)
●​ Business Professionals (secure
and productivity-focused phones)

Target Marketing Evaluate the relative attractiveness of The brand chooses to focus on Gamers
various segment, firm’s mission and and Business Professionals because
capabilities → determine what each they spend more and fit the company’s
segment wants → to choose segment to strengths.
be served

Positioning Design offerings and MKT programs The brand promotes itself as “The best
in enduring competitive advantage in choice for high-performance and secure
target market → By creating unique smartphones”, using gaming influencers
image in customer’s mind and business endorsements.

Heterogeneous and homogeneous market segment

●​ Markets are rarely homogeneous (same benefits, same purchase rate, …)
●​ Variation between market segments in
1.​ Product preferences
2.​ Size and growth in demand
3.​ Media habits
4.​ Competitors activities
●​ The critical issue is → Find an appropriate segmentation methods to
facilitate target marketing
Core elements of segmentation strategy → Customer characteristics
●​ Four key forces shaping segmentation theory:
1.​ Population growth has slowed and many markets are maturing
 2.​ Social and economic changes/forces (ex: expanding disposable
incomes, employment patterns, educational level)
3.​ The shift toward micro-segmentation
4.​ Firms implement focused MKT programs & target their services
(***) Segmentation choices are based on size and values of sales

3 steps of Market segmentation process

Step 1: Identify homogeneous A company selling skincare products identifies different

segment that differs from other consumer groups: teenagers with acne-prone skin, adults
segments looking for anti-aging solutions, and individuals with sensitive
skin.

Step 2: Specify characteristics that The "teenagers with acne-prone skin" segment is defined by
define the segment characteristics like age (13-19 years old), concern (acne),
behavior (willing to try new products), and price sensitivity
(looking for affordable solutions).

Step 3: Determine the segment The company researches market data and finds that there are
size and potential 30 million teenagers in its target region, with 60%
experiencing acne issues. If 20% of them are likely to buy the
product, the potential market size is 6 million customers.

Segmentation decisions are based on:

• Who are the customers and what they do
• Where they are
• How the behave
Marketers divide segmentation into 4 categories
1.​ Demo
2.​ Geo
3.​ Behavioral
4.​ Psy
Demographic segmentation • Age, gender, income, occupation, education, cultural
background
• Industrial market segmentation: Macro
Segmentation and Micro Segmentation

Geographic segmentation • Where customer live and work

• Trade area
• Geodemographic segmentation: involves both
demographic and geographic factors.
 Behavioral segmentation • How customers behave: no limit to the insightful ways
which marketers have segmented market in behavioral
terms
• Behavior descriptors
●​ Customer needs
●​ Product-related
●​ Psychographic & lifestyle
●​ Social class
●​ Organizational attributes

Besides, market sector & competition characteristics drive segmentation decisions:

●​ An established firm often better to apply a common analytical framework
across segment
●​ Compare future potential of different segments using same set of criteria
→ decide which segments to target and allocate resources
●​ Judge the attractiveness of market by examining market, competitive and
environmental factors.

Lo2. Market-attractiveness-competitive position matrix

FIVE STEPS IN BUILDING MARKET-ATTRACTIVENESS-COMPETITIVE POSITION
MATRIX
Step 1: Choose criteria to measure market attractiveness and competitive position
Step 2: Weight market attractiveness & competitive position factors → reflect relative
importance
Step 3: Evaluate current position of each potential market on each factor
Step 4: Project future position of each market (based on expected environmental,
customers, and competitive trends.
Step 5: Evaluate implications of possible future changes for business strategies and
resources requirements.

FACTORS UNDERLYING MARKET ATTRACTIVENESS AND COMPETITIVE

POSITION

Step Description Example (Smartphone Company)

1. Choose Criteria Identify factors for market Market Attractiveness: Market size,
attractiveness (e.g., size, growth, growth rate, competition intensity.
competition) and competitive Competitive Position: Brand
position (e.g., brand strength, recognition, technology innovation,
distribution). distribution network.

2. Assign Weights Assign importance weights to each Market Growth: 40%, Competition
factor based on their impact on Intensity: 20%, Brand Strength: 30%,
success. Higher weights = more Distribution: 10%.
influence.

3. Evaluate Current Rate each market based on the India (High market size, fast growth, but
Position selected factors (use a scoring intense competition), USA (Mature, slow
system, e.g., 1-10). growth, strong brand presence), Brazil
(Medium market, moderate growth).

4. Project Future Predict changes in attractiveness India: Middle-class growth, increasing

Position and competition based on trends. smartphone adoption = More
attractive. USA: Saturated, slow
growth = Less attractive.

5. Develop Strategy Decide on business strategies & Invest heavily in India, maintain focus
resource allocation based on on the USA but limit growth, moderate
findings. investment in Brazil.
 ●​ Most successful entrepreneurial ventures target narrowly defined market
segments for 2 reasons:
(1) Allows the firm to achieve early success in a market segment it understands well
(2) Conserve valuable resources, both financial and otherwise.
→ However, other methods need to be considered to ensure the best strategy is used.
Lo3. Differentiate 3 common targeting strategies
3 common targeting strategies
Niche-market - Serve segments seeking specialized benefits
- Designed to avoid direct competition with larger
firms

Broader large-market - Objective: Capture sufficient volume to gain

economies of scale + cost advantage
- Approach: Design separate products and MKT
programs for differing segments
- Requires substantial resources, including:
Production capacity & Good mass-MKT capabilities

Growth-market - Often target 1 or more fast growth segment

- Favored by smaller competitors to avoid direct
confrontations
- Require strong R&D and MKT Capabilities

POSITIONING: The place a product or brand occupies in customers’ minds relative to

their needs
DIFFERENTIATION:
●​ The reason why people buy one brand as opposed to another
●​ Some differentiating attributes that customers base on to make decision:
1.​ Low-cost differentiation
2.​ Attributed-based differentiation
●​ Differentiation in business strategies: Cost leadership, Differentiation,
Focus
*Porter’s generic strategies are based on
●​ 2 broad needs (attributes) → Cost and differentiation
●​ Size of the market segment (broad scope or narrow scope of target
market)
 Comparison of physical and perceptual positioning analysis

ATTRIBUTES USED IN POSITIONING

Simple physically based attributes Directly related to a single physical

dimension

Complex physically based attributes Used by consumers to evaluate

competitive offerings

Essentially abstract attributes Influenced by physical characteristics, but

not related in any direct way
 Price Implies high or low quality

7 steps in Positioning process

Step 1: Identify a relevant set of competitive products
Step 2: Identify determinant attributes
Step 3: Collect data about customers’ perceptions for brands in the competitive set
Step 4: Analyze the current positions of brands in the competitive set
Step 5: Determine customers’ most preferred combination of attributes.
Step 6: Consider fit of possible positions with customer needs and segment
attractiveness
→ Identify position where additional new brands might be placed
Step 7: Write positioning statement or value proposition to guide development of
marketing strategy

Step 1: Identify a relevant set Identify the key competitors in the For a new premium coffee brand,
of competitive products market that offer similar products competitors might include Starbucks,
or serve the same customer Dunkin’, and Peet’s Coffee.
needs.

Step 2: Identify determinant Find the key factors that influence For coffee brands, determinant
attributes customer choices. These should attributes could be:
be meaningful and differentiate
products. Taste & Quality (e.g., bold, smooth,
organic)
Price (affordable vs. premium)
Convenience (store locations, delivery
options)
Brand Image (luxury, sustainable, fast
service)

Step 3: Collect data about Conduct market research (surveys, A survey could ask customers to rate
customers’ perceptions for reviews, focus groups) to Starbucks, Dunkin’, and Peet’s on
brands in the competitive set understand how customers view taste, price, and convenience.
different brands.

Step 4: Analyze the current Step 4 includes useful tools used

positions of brands in the for
competitive set assessing relative positions in the
competitive set.
• Positioning grid
 • also called perceptual maps
• based on a visual representation
around two
determinant attributes
• Value curve
• indicates how products within a
category
compare (high or low) in terms of a
number of
attributes

Step 5: Determine Identify the ideal mix of product Customers might prefer high-quality
customers’ most preferred attributes based on customer coffee with mid-range pricing,
combination of attributes. feedback. suggesting an opportunity for a new
brand in that space.

Step 6: Consider fit of Find gaps in the market where a A premium organic coffee brand could
possible positions with new or repositioned brand could target health-conscious customers
customer needs and segment succeed. who want high quality at a reasonable
attractiveness price, an area where major
→ Identify position where competitors might be weak.
additional new brands might
be placed

Step 7: Write positioning Step 7 (Exhibit 7.6) involves final "For busy professionals who need
statement or value proposition decision about where to position high-quality coffee on the go, our
to guide development of or reposition brand offers organic, ethically sourced
marketing strategy • Need to match preference of coffee with premium taste at an
market segment and current affordable price—unlike Starbucks,
position of competing brands which is overpriced, or McDonald's,
• Two common approaches which lacks premium quality."
• Positioning statement
• identifies the target market Generic format for positioning
• states unique benefits of the statements: for (target market),
product (brand) is the (product category)
• Value proposition that (benefit offered)
• similar to positioning statement
• includes information about pricing
relative to competitors
• Both reflect the unique
selling proposition (USP) of
 the product

Define unique value proposition

Brand Equity:
●​ The value created by establishing customer preference for one’s brand
●​ The result of effective positioning and differentiation
●​ Decisions about brand reinforcement and brand revitalisation
Cautions
1.​ Buyers RARELY look for uniqueness
2.​ If one is to differentiate, should the focus be on features or the benefits
those features deliver?

Session 7: Marketing strategies for new market entries

Lo1. Stages in product life cycle
Introductory → Growth → Shakeout → Maturity → Decline
Generalized product life cycle
 Characteristics of life cycle stages
Lo2. Strategic implications of the product life cycle
Stage Strategic Market Investments Profits Cash flow
Objective

Introduction For both innovators Moderate to Highly Highly negative

and followers, high R&D, negative
accelerate overall capacity, capital,
market growth and and MKT
product acceptance

Growth Increase competitive High to very High to Negative

position high moderate

Shake-out Improve competitive Moderate Low to Low to

position moderate moderate

Mature Maintain position Low to moderate High Moderate

 Seek expansion & Also expend
alternatives additional R&D
Lo3. Limitations of the product life cycle
• Normative approach to prescribing strategies: It gives general advice, but
companies have different strategies
• Strategies are based on assumptions about the features of each stage: It makes
predictions based on what each stage might be like, which isn't always accurate.
• It’s often an out-of-date tool: It helps explain what happened to a product, but not
necessarily what will happen
Lo4. New market entries
• The primary objective for new product and market development: Secure future volume
and profit growth.
• 6 categories of new products and their objective:

New-to-the-world products • Maintain position as a

product innovator Tesla's first electric vehicle
• Establish a foothold in (Model S)
new future market,
preempt a market share
• Capitalize on
distribution strengths

New product lines • Defend current

market-share position Apple's launch of the Apple
• Exploit technology in a Watch
new way
 • Capitalize on
distribution strengths
• Use excess or
off-season capacity

Additions to existing product lines • Establish a foothold in

new future Coca-Cola introducing new
market, pre-empt a flavored sodas
market share

Improvements in existing products • Maintain position as a

product innovator​ iPhone adding new camera
• Defend current features
market-share position
• Provide a cash generator

Repositionings • Provide a cash generator

Arm & Hammer repositioning
baking soda as a deodorizer

Cost reductions • Defend current Tesla reducing battery costs for

market-share position EVs
• Establish a foothold in
new future market,
preempt a market share
Question: Is it better to be A PIONEER or A FOLLOWER?
Lo5. Strategic marketing programs
For Pioneers (thị trường tiềm năng, nguồn lực) → cons: costly, ngủ quên trên
win, risk of failure
Mass-market penetration ●​ Most successful when entry barriers
inhibit or delay the appearance of
competitors
●​ Crucial task: Rapidly maximize
number of customers
●​ Require MKT program focus on: (1)
Increase customers’ awareness, (2)
willingness to buy, (3) ability to buy

Niche penetration ●​ New products are more popular with

innovators, market mavens, opinion
leaders and early
●​ MKT efforts focused on
target segment to maximize the
impact from limited resources

Skimming and early withdrawal ●​ Charge higher price to maximize

return to take cream off the top
(skim) → then early withdrawal
●​ Major difference involves pricing
policies
●​ Tập trung vào least price-sensitive
customers (for sure): reduce
promotion costs & wasting
marketing efforts
●​ Đã plan to leave market thì không
nên effort nhiều vào expand product
line → Focus on next generation of
technology

Chiến lược Mục tiêu Cách thực hiện Ví dụ thực tế

Mass-Market Maximize the - Quảng bá mạnh để iPhone đời đầu (2007):
Penetration number of triers tăng nhận diện Apple chi mạnh tay cho
and adopters in thương hiệu. marketing, hợp tác với
the total market. - Giảm giá ban đầu AT&T để phân phối rộng
để khuyến khích rãi.
mua.
- Mở rộng kênh
phân phối.

Niche Tận dụng nguồn - Nhắm đến nhóm Tesla Model S (2012):
Penetration lực hạn chế, tập khách hàng có ảnh Ban đầu chỉ nhắm vào
trung vào nhóm hưởng (opinion khách hàng đam mê công
khách hàng sớm leaders, innovators). nghệ và xe điện, không
thích ứng. - Marketing tập phổ biến đại trà.
trung vào nhóm nhỏ
nhưng tiềm năng.

Skimming & Tối đa hóa lợi - Định giá cao, tập Google Glass (2013):
Early nhuận nhanh trung vào khách Định giá cao ($1,500), chỉ
Withdrawal chóng, sau đó rời hàng ít nhạy cảm bán cho nhóm khách hàng
thị trường. với giá. thích công nghệ, sau đó
- Giảm chi phí rút khỏi thị trường.
marketing.
- Không mở rộng
dòng sản phẩm,
chuẩn bị công nghệ
thế hệ mới.

📌🔹Tóm gọn:​

🔹 Mass-market → Đánh vào thị trường lớn, phủ sóng nhanh.​

🔹 Skimming & withdrawal → Định giá cao, khai thác lợi nhuận nhanh rồi rút lui
Niche → Nhắm vào nhóm khách hàng tiên phong, tận dụng nguồn lực hạn chế.​

Session 8: Marketing strategies for growth market

Lo1. Opportunities and Risks in Growth market
• OPPORTUNITIES:
●​ Easily gain share
●​ Share gains are worth more
●​ Less price competition
●​ Keep pace with technology
• RISKS:
●​ Likely to be shaken out later when growth slows
●​ Not exploiting growth advantages sufficiently
Opportunities in Growth Markets

📌 1. Easier Market Share Gains

●​ Many potential customers lack brand loyalty or supplier commitments.​

●​ There may be gaps or untapped segments with unique needs.​

●​ Established competitors are less likely to react aggressively as long as their

sales continue to grow.​

📌 2. Market Share Gains Become More Valuable

●​ As the market expands, revenue and profit per market share point increase.​

●​ Network effects make the product more valuable as more users adopt it.​

📌 3. Less Price Pressure

●​ In fast-growing markets, demand often exceeds supply, reducing price
competition.​

●​ Excess demand can even support premium pricing.​

📌 4. Early Entry Helps Keep Up with Technology

●​ Late entrants may struggle to catch up with technological advancements
and competitive advantages.​

Risks in Growth Markets

⚠️ 1. Changes in Technology or Success Factors

●​ If the "rules of the game" change, early advantages may become obsolete.​
 ⚠️ 2. Unexpected Increase in Competition
●​ More competitors may enter than initially expected, making market share
maintenance harder.​

⚠️ 3. Market Fragmentation
●​ As the market expands, customer preferences may diversify, leading to
segmentation.​

●​ Businesses must adapt their product offerings, distribution, and services to

different segments.​

⚠️ 4. Shakeout When Growth Slows

●​ Many followers attracted by rapid growth may be forced out when the market
slows down.​

●​ Companies that fail to build a sustainable competitive advantage may not

survive.

Marketing actions to achieve share-maintenance objectives

Marketing objectives
Maintaining/improving • Increase attention to quality control as output
satisfaction and loyalty expands
• Product modification and improvement
• Increase salesforce’s servicing
• Expand post-sale service capabilities

Encouraging/simplifying repeat • Expand production capacity in advance

purchase • Improve inventory and logistics
• Continue to build distribution channels
 • Consider building automatic reorder systems

Reducing attractiveness of • Develop a product line with appealing features

switching • Develop multiple line extensions
• Meet or beat lower prices

Head-to-head positioning • Develop a product line with more features

→ Against competitor’s offerings • Make product modifications
in primary target market • Meet or beat lower prices
• If resources are limited, consider withdrawing from
smaller segments

Differentiated positioning • Develop multiple-line extensions

→ Focus underdeveloped • Build unique distribution channels
segments • Design multiple advertising
●​ stimulating selective demand among later
adopters.
Lo2. Five growth-market strategies for Market Leaders
Strategic defensive and offensive decisions for growth market leaders.
(Contributes to ULO4)
(1) Fortress defense Maintain brand position by maintaining current
competitive advantages

(2) Flanker defense Creates sub-products or brands to protect its

main market share (avoid direct competition)

(3) Confrontation Directly compete with its rivals

(4) Market expansion

(5) Contraction/strategic withdrawal Thu hẹp/rút bớt phân khúc để tối ưu cost và
resource
5 strategies that market leader may use to maintain leading position
 Strategy Concept Applicable Conditions Real-World Example
- The market is stable or
experiencing moderate
growth.
The market leader
- The company holds a
strengthens its position
strong market position
1. Fortress by leveraging Coca-Cola maintains market
with high customer
Strategy competitive adv : brand dominance through strong
loyalty.
(Position strength, cost branding, extensive distribution,
- High entry barriers
Defense) advantages, or a strong and continuous marketing efforts.
prevent new competitors
distribution system to
from easily entering.
protect market share.
- market that is relatively
homogeneous in relation
to customer needs and
 purchase criteria?

- The market is segmented,

with diverse customer
needs.
The leader creates
- Competitors are entering
2. Flanker secondary products or
and targeting niche Toyota launched Lexus to compete
Strategy sub-brands to protect
segments the leader has with BMW & Mercedes in the luxury
(Proactive & its market share from
not yet fully addressed. car segment.
Reactive) competitors targeting
- The leader wants to
untapped segments.
preemptively cover new
segments to avoid losing
market share.
- The market is highly
competitive, with
aggressive new entrants.
The leader directly
- Customers are
3. challenges competitors
price-sensitive, making Apple and Samsung engage in
Confrontatio by lowering prices,
price wars a potential direct competition by releasing
n Strategy increasing advertising, or
strategy. flagship products and launching
(Proactive & launching innovative
- Competitors are actively aggressive marketing campaigns.
Reactive) products to maintain
launching new products
market share.
or marketing campaigns
that threaten the leader’s
position.
- The market is in a growth
The leader expands its phase with an increasing
market share by number of potential new
attracting new customers.
4. Market customer segments, - Opportunities exist to Netflix expanded from the U.S. to
Expansion entering new expand geographically or Europe and Asia to attract more
Strategy geographical markets, to new demographics. users.
or improving its - Demand is strong, and
product to appeal to expanding product lines or
more users. distribution can capture
more customers.
- The market is saturated,
leading to diminishing
The leader withdraws
returns.
from a market or
5. - Intense competition has
segment that is no Ford exited the passenger car
Contraction eroded profitability, making
longer profitable to market in India to focus on SUVs
or Strategic the segment
focus on more and trucks in stronger markets.
Withdrawal unsustainable.
competitive and profitable
- The company needs to
areas.
refocus resources on
stronger or more
 profitable markets.

Lo3. Five secure growth-market strategies for Challengers

(1) Frontal attack Successful when:
●​ Customers mostly do not have strong
brand preferences/loyalties
●​ Target competitor’s product does not
benefit from positive network effort
●​ Resources and competencies in
marketing is larger than competitors

(2) Leapfrog ●​ Attract competitor's customer from

operating superior product (haven't
available in the market)
●​ Often inhibits quick retaliation by
established competitors

(3) Flank attack ●​ Focus on the weakest 'flank' or area of

a competitor
 ●​ Focus on segments whose needs are
not being satisfied (avoid direct
competition)
Successful when:
●​ Market can be broken more segments
●​ Leader competitor hold strong position
in primary segment
●​ No existing brand fully satisfies
customers needs

(4) Encirclement ●​ Involves targeting several smaller

untapped segments simultaneously
Successful when:
●​ Market is fragmented into many
segments

(5) Guerrilla attack ●​ Để tránh massive retaliation: use this

strategy sporadically (limited
geographic areas)
5 strategies that challengers may use to secure growth in market share

• Choose best strategy will depend on:

 ●​ Market characteristics
●​ Existing competitors’ current positions and strengths
●​ Challengers’s own resources and competencies

Attack Applicable
Concept When Successful Real-World Example
Strategy Conditions
- Defender has no
significant - Customers mostly do not
weakness. have strong brand
- High-resource preferences/loyalties.
The attacker challenges the
attacker willing to - Target competitor’s
defender head-on by Pepsi vs. Coca-Cola – Pepsi
1. Frontal engage in direct product does not benefit
matching or exceeding directly competes in branding,
Attack competition. from positive network
their strengths (e.g., price, pricing, and distribution.
- Customers are effects.
product features, distribution).
not highly - Attacker has stronger
brand-loyal. marketing resources and
-homogeneous competencies.
market
- The attacker has
strong R&D and - Competitor's current
The attacker attracts innovation product lacks innovation.
Apple iPhone vs. Nokia – Apple
2. Leapfrog competitor's customers by capabilities. - The new product is
leapfrogged Nokia with a
Attack (Bypass offering a superior product - Market demand superior and unique.
touchscreen smartphone and
strategy) that is not yet available in the exists for - Competitor is slow to
an app ecosystem.
market. significantly better respond or lacks
technology or technological flexibility.
features.
- The market leader
- Market can be segmented
is strong overall but
into smaller groups.
weak in certain
The attacker targets the - The leader holds a strong
areas (e.g., Samsung vs. Apple – Samsung
competitor’s weakest position in the primary
premium or budget initially focused on large-screen
3. Flank Attack areas, such as neglected segment but ignores
segments). smartphones when Apple was
market segments or niche markets.
- Attacker has slow to adopt the trend.
geographical regions. - No existing brand fully
limited resources
satisfies customer needs in
and seeks to
the flanked segment.
exploit gaps.
- The attacker has
surround the leader’s brand strong resources to
- The market is fragmented
with a variety of offerings challenge the Amazon vs. Walmart – Amazon
into many segments,
4. Encirclement aimed at several peripheral leader in multiple attacked Walmart with superior
making it difficult for the
Attack segments, targeting several areas. e-commerce, logistics, pricing,
leader to defend all of
smaller untapped or - The market leader and Prime membership benefits.
them.
underdeveloped segments is struggling to
defend all areas.
 - The attacker has
limited resources
but is agile.
The attacker uses
- The market leader
unpredictable, small-scale, Dyson vs. Vacuum Giants –
is slow to react to - To avoid massive
and high-impact moves (e.g., Dyson disrupted the vacuum
5. Guerrilla disruptions. retaliation, attacks should
price cuts, aggressive cleaner market with bagless
Attack -when the needs be sporadic (e.g., limited to
marketing, niche product technology and aggressive
and small geographic areas).
launches) to destabilize the marketing.
preferences of
defender.
customers in most
segments are
currently satisfied

Session 9: Strategies for

Lo1. Challenges for mature and declining markets
• Challenges in mature markets
●​ Keep existing customers
●​ Sustain competitive advantages
• Challenges in declining markets
●​ Divest or liquidate: tiếp tục bán hay close down luôn?
●​ Maximize cash flow and profit over the product’s remaining life
Shakeout: A phenomenon by which consumers behavior and market situation
significantly change as a whole (generally là ở trong giai đoạn shakeout này, các doanh
nghiệp nhỏ lẻ/hoặc unstable businesses có thể bị out khỏi thị trường do price
competition increase)
Lo2. 4 strategic traps during shakeout period
4 Strategies traps during a shake-out period:
1.​ Failure to anticipate transition from growth to maturity
2.​ Unclear competitive advantage
3.​ Assume the early advantage will insulate firm
4.​ Choose short-run profit than market share
Success in mature markets requires 2 actions
1.​ Develop a well business strategy to sustain
●​ Competitive advantage
●​ Customer satisfaction
●​ Loyalty
2.​ Flexible and creative MKT programs → growth or profit opportunities
(1) Strategies for maintaining competitive advantage
●​ Analysers and defenders sustain competitive
advantage through differentiation.
●​ It’s difficult for a single business to pursue both low-cost & differentiation
strategies at the same time
●​ Should not ignore desirable customer benefits (cho dù m đang pursue
low-cost)
 The process of customer value management
Dimensions of product quality Performance → Durability → Conformance with
specifications → Features → Reliability →
Serviceability → Fit and finish → Brand name

Dimension of service quality Tangibles → Reliability → Responsiveness →

Assurance → Empathy

Determinants of perceived service 5 gaps

quality 1.​ Customer expectation & service quality
expectation
2.​ Management perceptions and service
quality specifications
 3.​ Service quality specifications & Service
delivery
4.​ Service delivery & External
communications
5.​ Perceived service & Expected service
Key to maintain low-cost position
●​ No-frills product
●​ Innovative product design
●​ Cheaper raw materials
●​ Innovative production processes
●​ Low-cost distribution
●​ Reductions in overheads
(2) Key marketing strategies for mature markets
●​ Focus on maximizing profits throughout the product's maturity during the
early market maturity
●​ Top priority: Protect and maintain market share
●​ In a mature market where few new customers buy the product for the first
time, the business must continue to win its share of repeat purchases from
existing customers.

(*) 3 main strategies to maintain current market share: The fortress defense, Add
flanker brands, Pursue niche strategy
(*) 3 strategies to extend volume growth: Increase penetration, Extended use, Market
expansion
Focus on defending the current market position
→ Increase barriers to entry (make difficult for others
The fortress defense
to entry)
→ Might invest in customer loyalty

Vừa introduce new products/brands with specific

segments within the existing market vừa protecting
the core brand.
Add flanker brands
Meaning: appeal different customer segments or price
points without directly cannibalizing sales of the core
product

Focus on serving a specific, often underserved

Pursue niche strategy
segment
​
Tactics to maintain current market share

Strategy Key Actions Purpose Applied Condition Example

 - The company has a
strong brand presence
Strengthen market and existing customer
Prevent new Apple’s ecosystem lock-in
position by increasing loyalty.
competitors from with iOS, App Store, and
1. Fortress barriers to entry, - Industry has high entry
entering and protect exclusive hardware keeps
Defense improving customer costs or switching costs.
existing market users from switching to
loyalty, and defending - The market is stable with
share. Android.
core segments. limited growth, making
defense more important
than expansion.
- The market is diverse with
multiple customer segments. Toyota owns Lexus (luxury)
Introduce new Appeal to different
- A single brand cannot and previously Scion
products/brands consumer groups
2. Add Flanker effectively satisfy all market (youth-focused) to serve
targeting different while protecting the
Brands needs. different price segments
customer segments core brand from
- There is a risk of losing without harming its core
within the same market. direct competition.
customers to competitors brand.
who offer tailored solutions.
- The industry has
heterogeneous demand,
meaning different groups
Rolex focuses on high-end
Build strong brand have unique needs.
Focus on underserved or consumers who value luxury
3. Pursue Niche loyalty in a focused - Large competitors focus
highly specialized and prestige, rather than
Strategy market with reduced on mass markets, leaving
customer segments. competing with
competition. gaps in specialized areas.
mass-market watch brands.
- The company has unique
capabilities or expertise in a
niche.

Tactics to extend volume growth

Increased penetration Convert current non-users in target

segment into users

Extended use Increase frequency of use among current

users

Market expansion Develop differentiated positioning focused

on untapped segments
Lo3. Actions for growth extension objectives
 Increase • Enhance product’s value
d • Stimulate additional primary demand
penetrati
on

Extended • Move product’s storage closer to the point of end use

use • Stress basic product benefits for a variety of usage
• Encourage large volume purchases
• Develop line extensions

Market
expansio
n

Growth Strategy Key Actions Applied Condition Example

- The market has low penetration

- Convert non-users in the
(many potential customers haven't
target segment into users.
adopted the product). Apple introducing low-cost
- Enhance product’s perceived
1. Increased - The product is well-established iPhones (SE models) to attract
value.
Penetration but needs more users. budget-conscious consumers
- Stimulate additional primary
- There is a large untapped who haven’t adopted iPhones.
demand (increase total market
audience that can be convinced to
size, not just market share).
try the product.
 - Increase frequency of use
among current users.
- Move product storage closer - The market has high penetration - Coca-Cola’s “Share a Coke”
to the point of end use. but low usage frequency. campaign encouraged social
- Promote multiple usage - The product can be used in drinking.
2. Extended Use
occasions (versatile use). multiple scenarios. - Shampoo brands promote daily
- Encourage bulk purchases. - Consumers need incentives or use instead of occasional
- Introduce line extensions to reminders to use more frequently. washing.
cater to more consumption
habits.

- The market is heterogeneous

- Target new geographic
(diverse customers with varying
regions or untapped customer - Netflix expanding into Asian and
needs).
segments. African markets with local
- The product has low penetration
3. Market - Develop differentiated content.
in some areas (e.g., international
Expansion positioning to attract new - Tesla launching lower-cost
markets, niche demographics).
users. models to appeal to a broader
- There are unmet needs in certain
- Adapt products for local audience.
segments that the product can
preferences or new applications.
address.

Lo4. Marketing strategies for declining markets

Harvest → Maximize short-term cash flow
●​ Eliminate R&D + capital investment
●​ Reduce: MKT and sales budget, production cost
●​ Raise price if maintain margin

Maintenance → Maintain market share for short term

●​ Design service programs
●​ Continue trade promotion
●​ Focus sales force efforts
●​ Lower prices if necessary to maintain share

Profitable survivor → Increase share of the declining market

●​ Signal competitors
●​ Introduce line extensions
●​ Lower prices if necessary to increase share
●​ Consider agreements to produce replacement
parts

Niche strategy → Strengthen share position in one or a few segments

●​ Continued product and process R&D
●​ Produce for private labels
●​ Focus advertising, sales promotion, etc.
●​ Maintain distribution channels
 Marketing strategies for declining market, including: harvest, maintenance, profitable
survivor, niche strategy

Strategy Key Actions Applied Condition Example

- Eliminate R&D and capital - The market is in decline, and
investment. further investment is not
1. Harvest - Kodak reducing investments
- Reduce marketing, sales justifiable.
(Maximize short-term in film photography while
budgets, and production costs. - The company aims to exit
cash flow) transitioning to digital.
- Raise prices if possible to the market while maximizing
maintain profit margins. profits.
- Maintain service programs to
retain customers. - The market is shrinking, but
- Continue trade promotions to stable for now.
2. Maintenance - Microsoft continuing support
sustain demand. - The company wants to stay
(Maintain market share for older Windows versions
- Focus salesforce efforts on key competitive temporarily before
for the short term) before discontinuing them.
accounts. deciding on a long-term
- Lower prices if necessary to strategy.
maintain market share.
- Signal competitors to deter
aggressive pricing wars.
- The market is declining, but
- Introduce line extensions to
3. Profitable Survivor some players will survive. - IBM focusing on enterprise
capture remaining demand.
(Increase share of the - The company is stronger hardware services while others
- Lower prices if needed to gain
declining market) than its competitors and can exited the industry.
share.
outlast them.
- Consider agreements to produce
replacement parts.
- Continue product and process - The overall market is
R&D to improve offerings. shrinking, but some profitable
- Produce for private labels or segments still exist.
4. Niche Strategy - Vinyl records industry is
specialized markets. - The company has a loyal
(Strengthen position in rebounding as a niche market
- Focus advertising and sales customer base in certain
a specific segment) despite the decline of CDs.
efforts on niche customers. segments.
- Maintain distribution channels for -but limited overall
key segments. resources?

What are the causes of market decline?

Answer: The causes of market decline include:
Technological advances
Changing customer demographics
Changing customer tastes or lifestyles
Write a brief note on the profitable survivor strategy. Illustrate the conditions
most
appropriate for its usage.
The profitable survivor strategy focuses on increasing market share in a declining
industry by outlasting competitors. The goal is to become the dominant player as others
exit, ensuring continued profitability.

When to Use It?

✅
This strategy works best when:
The firm already has a strong market share and competitive advantages (e.g., cost

✅
leadership, brand loyalty).

✅ The market is declining gradually, allowing time to consolidate demand.

✅ There are niche customer segments with sustained demand.

The firm benefits from shared resources across its business units (e.g., distribution
channels, production facilities).

💡
Key Success Factor
Encouraging weaker competitors to exit early, reducing price wars and market
fragmentation. Once this is achieved, the firm can transition to a harvesting strategy to
maximize profits.

📌
Example:
Kodak in film photography – As digital cameras took over, Kodak attempted to
dominate the shrinking film market, though it ultimately failed due to poor adaptation to
digital trends.

Note quiz 2:
Không bỏ câu tự luận (ngắn hay dài mà lệch thì cũng sẽ được ít, nói chung có hơn 0)
Suggest ---> Viết dạng bulletpoint, viết dạng đoạn văn sẽ hơi tốn thời gian viết chủ ngữ
đồ đó
Có thêm ví dụ sẽ có thêm điểm. Ví dụ có 3 loại business strategy → ví dụ cho 3 loại đó
luôn
2.5/câu tự luận (20/7)
Session 6 → 10 (chứ ko phải chap 6 tới 10)
Tự luận:
1. Ôn lại pioneer and follow strategy: điều kiện nào sẽ worth với các tactics này + ví dụ
2. Có 1 câu về hãng điện thoại lớn nhất thế giới (vì sao apple lại success trong việc
lauching new product ở giai đoạn early launching) → Có thể hỏi 1 khía cạnh khác, cứ trl
đúng câu hỏi
3. Ôn market positioning analysis có gì và giúp gì, quyết định gì trong sự thành công
của 1 brand khi họ tung ra sp hoặc chiến dịch mới, hay gia nhập thị trường ntn
4. Profitable survivor strategy: có gì, điều kiện gì sẽ tốt nhất cho công ty (conditions
make this strategy successful)
(*) Rút kn quiz 1: ngta hỏi most factor thì nhớ chọn và nêu lí do
5. Hãng đt lớn, làm cách nào để nó vẫn maintain market position và 4Ps nên phát triển
thế nào
Pharmacity: Công ty truyền thống: làm sao convince các leader mà theo traditional mkt
sử dụng innovative/creative MKT plan hơn
6. Máy bay muốn xâm nhập thị trường thì làm sao để win được thị trường: Chọn MKT
strategy nào -> tại saoo và sẽ implement chiến lược này ntn→ đưa ví dụ (giảm giá:
giảm bao nhiêu so với competitor)
7. Market segmentation, target marketing, positioning, xem thử nó liên quan với nhau
ntn STP (overlap qua các giai đoạn)
8. Product life cycle (4 stages) cho 1 sp cụ thể, hỏi đang ở stage nào (thường là stage
đi xuống và làm cách nào để vực dậy nó) → dùng lý thuyết của PLC
—
Game
Tóm tắt 5 kì vừa rồi làm gì, phân khúc, strategy cho q6 là gì để thầy điều chỉnh (thứ 4)
Tuần sau học online chiều t7

Session 10: Strategies for Digital economy

Lo1. Challenges for mature and declining markets
Shakeout: A phenomenon by which consumers behavior and market situation
significantly change as a whole (generally
5 benefits around a modern business digital strategy
Grow sales through wider distribution to customers +
Sell
product range (based on online additions)

Add extra value through online platforms, include:

Serve ongoing customisation and
continuous dialogue

Get closer to customers by understanding users on a

daily basis through digital interactivity, include:
Speak
monitoring behaviors and
having consistent conversations

Save costs with digitally-enabled reductions that keep

Save that heighten regular interactivity but at the same time
lower transaction costs

Expand the reach and engagement of the service and

Sizzle performance so that the digital and virtual world
enhances offline brand activities.
LO2: Transition to the digital economy
●​ Important part of transition to digital economy: Where the digital readiness
creates better marketing strategy
●​ Consumer and business adoption is the key digital economy driver
●​ To form strategic views on levels of sophistication of online environment,
marketers need to track debates & developments
One mkt element is the “rapid digital pace of change on the web”:
→ Offers an abundance of opportunities to create new companies
→ Helps company transform and provide growth opportunities
Ex: Media in Australia has changed away from hard copy (Newspapers, magazines) to
soft copy (Tablets, tablet size phones such as the iPhone6 Plus or Samsung’s Galaxy
Note Range).
7 Domains of attractive - ONLINE OPPORTUNITIES

1. Macro Level (Cấp độ vĩ mô)

●​ Market Attractiveness (Sự hấp dẫn của thị trường): Thị trường này có tiềm
năng phát triển không? Quy mô, xu hướng và tốc độ tăng trưởng như thế nào?​

●​ Industry Attractiveness (Sự hấp dẫn của ngành): Ngành này có nhiều rào cản
gia nhập không? Mức độ cạnh tranh và khả năng sinh lời ra sao?​

2. Micro Level (Cấp độ vi mô)

●​ Target Segment Benefits & Attractiveness (Lợi ích và sự hấp dẫn của phân
khúc khách hàng): Sản phẩm/dịch vụ có đáp ứng tốt nhu cầu khách hàng
không? Có cơ hội chiếm lĩnh một phân khúc khách hàng cụ thể không?​

●​ Sustainable Advantage (Lợi thế cạnh tranh bền vững): Công ty có năng lực
gì để duy trì lợi thế trong dài hạn? Ví dụ: công nghệ, thương hiệu, chi phí thấp
 hơn, mối quan hệ khách hàng vững chắc.​

3. Team Domains (Yếu tố nội bộ đội ngũ)

●​ Mission, Aspirations, and Propensity for Risk (Sứ mệnh, khát vọng và khả
năng chấp nhận rủi ro): Đội ngũ sáng lập có đủ động lực, tầm nhìn và sự sẵn
sàng để chấp nhận rủi ro không?​

●​ Ability to Execute on CSFs (Khả năng thực thi các yếu tố thành công quan
trọng - CSFs): Doanh nghiệp có đủ nguồn lực (con người, tài chính, công nghệ)
để thực hiện chiến lược không?​

●​ Connectedness Up, Down, and Across Value Chain (Mối liên kết trong
chuỗi giá trị): Công ty có mối quan hệ tốt với nhà cung cấp, đối tác và khách
hàng không?

Connectivity
●​ Broadband and fast speeds do matter!
●​ It’s about digital infrastructure and how people use infrastructure to
connect with others
●​ Social media and Web 2.0 applications focus on user-generated content
and fit with service-dominant logic marketing
Service and digital-dominant logic (S&DDL) marketing
●​ Service-centric businesses focus on: creating value by providing users
with devices/things that come with the necessary knowledge, tools, or
means to use them effectively.
●​ CRM analytics is a strategic area:
●​ Descriptive: historic customer behavior
●​ Predictive: identify segments and forecast possible behaviors
Evolution of customer interface:
LO3: Develop a digital marketing strategy
Decision framework summaries key strategic issues:
●​ Assessment of digitalization
●​ Strategy development
●​ Digital MKT strategy roadmapping
Digital economy MKT strategy framework
Giải thích mô hình

1.​ Digitisation (Số hóa)​

○​ Là bước đầu tiên, liên quan đến việc chuyển đổi các hoạt động truyền
thống sang môi trường kỹ thuật số.​

2.​ Các yếu tố trong quá trình phát triển chiến lược​

○​ Current and Next General Access (NGA): Cơ sở hạ tầng truy cập kỹ

thuật số hiện tại và tương lai, như 5G, băng thông rộng tốc độ cao.​

○​ Digital Economy Rankings: Xếp hạng nền kinh tế số của quốc

gia/doanh nghiệp dựa trên mức độ phát triển kỹ thuật số.​

○​ Service Dominance Level: Mức độ chi phối của dịch vụ trong nền kinh tế
số, ví dụ như SaaS, thương mại điện tử, nền tảng số.​

○​ Collaborative, Co-creative Platform Development: Phát triển nền tảng

hợp tác, nơi doanh nghiệp và khách hàng cùng tham gia sáng tạo giá trị
(VD: marketplace, hệ sinh thái mở).​

○​ Customer Interface: Cách thức doanh nghiệp tương tác với khách hàng
thông qua các kênh kỹ thuật số.​
 ○​ Social Networked Information Management: Quản lý thông tin dựa trên
mạng xã hội, bao gồm thu thập dữ liệu, phân tích và phản hồi khách hàng.​

3.​ Digital Marketing Strategy Roadmapping​

○​ Sau khi hoàn thành các bước trên, doanh nghiệp sẽ xây dựng lộ trình
chiến lược tiếp thị số, lựa chọn các lĩnh vực trọng tâm trong e-marketing
(tiếp thị điện tử).

Originator: Người khởi tạo, người bắt đầu hoặc sáng tạo ra một ý tưởng, sản phẩm,
hoặc dự án.​

Contactor: Có thể liên quan đến vai trò liên lạc, kết nối giữa các bên hoặc khách hàng
(mặc dù "Contractor" có thể là thuật ngữ chính xác hơn nếu liên quan đến nhà thầu).​

Distributor: Nhà phân phối, người chịu trách nhiệm đưa sản phẩm ra thị trường, đến
khách hàng hoặc các đại lý khác.​

Optimizer: Người tối ưu hóa, đảm nhiệm việc cải thiện hiệu suất, chất lượng hoặc hiệu
quả của một hệ thống hoặc quy trình.

Syndicator (Nhà phân phối nội dung): Một trang web hoặc tổ chức cung cấp nội
dung (ví dụ: tin tức, bài báo, nội dung truyền thông) ở dạng điện tử cho các trang web
khác, mỗi trang có thể phục vụ các đối tượng khác nhau.

Rules-based personalization (Cá nhân hóa dựa trên quy tắc)​

●​ Đây là phương pháp cá nhân hóa nội dung dựa trên các quy tắc được lập trình
sẵn, chẳng hạn như hiển thị sản phẩm phù hợp dựa trên dữ liệu người dùng
trước đó.​

●​ Ví dụ: Một trang web hiển thị gợi ý sản phẩm dựa trên lịch sử mua hàng của
khách hàng.​
Mass-customization (Tùy chỉnh hàng loạt)​

●​ Đây là kỹ thuật kết hợp giữa sản xuất hàng loạt và tùy chỉnh sản phẩm theo yêu
cầu của từng khách hàng. Khách hàng có thể điều chỉnh một số đặc điểm của
sản phẩm theo sở thích cá nhân.​

●​ Ví dụ: Nike cho phép khách hàng tự thiết kế màu sắc và logo trên giày thể thao.​

Collaborative filtering (Lọc cộng tác)​

●​ Đây là phương pháp đề xuất sản phẩm hoặc nội dung dựa trên hành vi của
những người dùng có sở thích tương tự.​

●​ Ví dụ: Netflix gợi ý phim dựa trên những bộ phim mà người dùng khác có sở
thích tương tự đã xem.​

Mass-media (Truyền thông đại chúng)​

●​ Đây là các phương tiện truyền thông nhắm đến nhiều đối tượng cùng lúc mà
không có cá nhân hóa, chẳng hạn như TV, báo chí, hoặc quảng cáo trên mạng
xã hội.​

●​ Ví dụ: Quảng cáo trên TV dành cho toàn bộ người xem mà không nhắm mục tiêu
cụ thể.

Dynamic pricing (Định giá động)​

●​ Đây là chiến lược giá linh hoạt, trong đó giá sản phẩm hoặc dịch vụ thay đổi theo
nhu cầu của khách hàng, điều kiện thị trường hoặc các yếu tố khác như thời
gian trong ngày.​

●​ Ví dụ: Giá vé máy bay thay đổi dựa trên nhu cầu đặt vé.​

Price pooling (Gộp giá)​

 ●​ Đây là chiến lược trong đó nhiều khách hàng chia sẻ chi phí của một sản phẩm
hoặc dịch vụ, nhằm giảm giá cho từng cá nhân.​

●​ Ví dụ: Nhiều người đăng ký chung một tài khoản Netflix để chia sẻ chi phí.​

Price skimming (Định giá hớt váng)​

●​ Chiến lược này áp dụng mức giá cao khi sản phẩm mới ra mắt, sau đó giảm giá
dần theo thời gian để tiếp cận các phân khúc khách hàng khác.​

●​ Ví dụ: Giá của iPhone mới thường rất cao khi ra mắt, nhưng giảm dần sau một
năm.​

Hedonic pricing (Định giá dựa trên giá trị cảm nhận)​

●​ Đây là phương pháp định giá dựa trên các đặc điểm chủ quan của sản phẩm
như thương hiệu, chất lượng hoặc cảm xúc mà sản phẩm mang lại.​

●​ Ví dụ: Xe sang như Mercedes có giá cao hơn vì mang lại cảm giác sang trọng.

Aggregation (Tổng hợp)​

●​ Quá trình thu thập, sắp xếp và trình bày thông tin từ nhiều nguồn khác nhau để
cung cấp cái nhìn tổng thể.​

●​ Ví dụ: Google News tổng hợp tin tức từ nhiều trang báo khác nhau.​
Syndication (Phân phối nội dung)​

●​ Bán hoặc cung cấp lại cùng một nội dung (thường là nội dung thông tin) cho
nhiều khách hàng hoặc nền tảng khác nhau, sau đó họ có thể kết hợp với nội
dung khác và phân phối lại.​

●​ Ví dụ: Một bài báo của AP (Associated Press) có thể được nhiều tờ báo khác
nhau đăng tải lại.​

Customization (Tùy chỉnh)​

●​ Điều chỉnh sản phẩm/dịch vụ để phù hợp với nhu cầu riêng của từng khách
hàng.​

●​ Ví dụ: Netflix đề xuất nội dung dựa trên sở thích của từng người dùng.​

Subscription (Đăng ký thành viên)​

●​ Mô hình kinh doanh trong đó khách hàng trả phí định kỳ để tiếp cận nội dung,
sản phẩm hoặc dịch vụ.​

●​ Ví dụ: Netflix, Spotify hoặc tạp chí online hoạt động theo mô hình đăng ký.