Chapter 1
• Compare the main perspectives of Classic Marketing and Modern Marketing across
their key characteristics. Illustrate your answer with reasoning and examples.
1. About Origins / Time of Emergence
Classic Marketing appeared in the early 20th century, during the rise of
industrialization and mass production. Supply was often lower than demand, which
led businesses to focus on large-scale production and distribution. The marketing
mindset was product-oriented, prioritizing efficiency, cost reduction, and availability.
In contrast, Modern Marketing emerged strongly from the late 20th century onwards,
shaped by globalization, digital technology, and saturated markets. Competition
became intense, consumers had more choices, and businesses needed to emphasize
customer satisfaction, innovation, and differentiation. For example, Ford’s Model T
represented the classic approach of mass production at low cost, whereas Apple today
illustrates modern marketing by focusing on continuous innovation, customer
experience, and brand loyalty.
2. About Market Orientation and Focus
Classic Marketing is fundamentally product-oriented. Businesses concentrated on
producing high volumes at lower costs, assuming that customers would naturally buy
affordable and widely available goods. This led to standardized products with little
concern for individual preferences. Modern Marketing, on the other hand, is
customer-oriented. Companies first study consumer needs and wants through market
research, then design products and services that match them. For instance, Procter &
Gamble traditionally emphasized efficient soap production in the early 1900s (classic),
while Netflix today tailors content recommendations based on individual viewing
habits (modern).
3. About Communication and Promotion
In Classic Marketing, communication was one-way, with firms sending messages
through mass media such as newspapers, radio, or television. The goal was to
persuade customers to purchase, with limited opportunities for feedback. In contrast,
Modern Marketing promotes two-way and interactive communication, made possible
by digital platforms and social media. Customers can now respond instantly, share
experiences, and even co-create brand narratives. Coca-Cola’s early “Drink
Coca-Cola” campaigns (classic) were purely persuasive, while today’s social media
initiatives like “Share a Coke” allow customers to personalize bottles and share stories
online, exemplifying modern engagement.
4. About Value Creation
Classic Marketing viewed value primarily as the functional benefit of the
product—durability, efficiency, or affordability. Emotional or experiential aspects
were less emphasized. Modern Marketing broadens the concept of value to include
emotional, social, and experiential dimensions. Today’s customers seek not only
useful products but also meaningful experiences and brand relationships. For example,
while General Motors in the early 20th century highlighted technical features of its
cars, Tesla today emphasizes sustainability, innovation, and customer lifestyle
aspirations.
5. About Relationship with Consumers
Classic Marketing was transactional, focusing mainly on generating sales and moving
on to the next customer. Loyalty programs and after-sale relationships were minimal.
Modern Marketing is relationship-driven, prioritizing long-term engagement,
customer retention, and lifetime value. Amazon demonstrates this by personalizing
recommendations, offering Prime memberships, and continuously enhancing customer
service—contrasting with traditional retailers that once concentrated primarily on
single transactions.
6. About Scope and Technology
Classic Marketing operated largely within local or national markets, with limited tools
for data collection and consumer analysis. Decisions were often based on intuition or
broad assumptions. In contrast, Modern Marketing uses global reach and advanced
technologies such as big data analytics, artificial intelligence, and CRM systems to
understand and target consumers more precisely. Starbucks, for example, relies
heavily on data to personalize offers and predict consumer behavior, something
unimaginable during the classic era.
Chapter 2
• Question: How do customers and competitors influence the marketing activities of
enterprises in the Vietnamese retail fashion sector? Propose solutions for enterprises
to adapt to these micro environment factors.
In the Vietnamese retail fashion industry, both customers and competitors play a
crucial role in shaping marketing activities. Enterprises must constantly adapt to these
micro environment factors in order to remain competitive and relevant in a dynamic
market.
1. Influence of Customers
Fashion customers, particularly young generations such as Gen Z and Millennials, are
highly sensitive to trends and rapid changes in style. Their preferences shift quickly,
which requires businesses to update collections more frequently and align with
emerging fashion directions. Moreover, customers are increasingly concerned about
price, quality, and brand reputation. This growing awareness pushes companies to
balance affordability with perceived value.
Another major factor is the rise of online shopping behavior, as platforms like Shopee,
TikTok Shop, and Lazada dominate retail channels. This digital shift has transformed
the way customers search for, evaluate, and purchase fashion items. As a result,
businesses must integrate both offline and online strategies, ensuring seamless
customer experiences across physical stores and e-commerce platforms.
2. Influence of Competitors
Competition in Vietnam’s fashion sector comes from both domestic and international
brands. Local brands such as Canifa, Yody, and Routine are expanding rapidly, while
global names like H&M, Uniqlo, and Zara have established strong positions in urban
markets. This dual presence creates intense rivalry, forcing firms to differentiate their
products and marketing campaigns.
Additionally, the emergence of Chinese fast fashion brands in e-commerce platforms
introduces new challenges. These competitors often offer lower prices and diverse
designs, putting pressure on Vietnamese firms to maintain both competitiveness and
brand loyalty. Enterprises must therefore improve design innovation, enhance
customer service, and strengthen their brand image to stand out in a crowded
marketplace.
3. Proposed Solutions for Enterprises
To adapt effectively, Vietnamese fashion companies can adopt several strategies. First,
they should invest in trend forecasting and market research, which will help them
anticipate shifts in consumer preferences and launch new collections in a timely
manner. Second, enterprises should strengthen their digital marketing strategies,
making full use of social media platforms, TikTok marketing, and influencer
collaborations to connect with younger audiences. Finally, a balance between
affordable pricing and strong brand identity is essential, ensuring that customers
perceive value not only in the product but also in the overall brand experience.
Conclusion
In summary, customers influence marketing activities through their fast-changing
preferences, growing quality expectations, and online shopping habits, while
competitors exert pressure through intense local and international rivalry. By investing
in trend forecasting, enhancing digital marketing, and reinforcing brand
differentiation, Vietnamese fashion enterprises can adapt successfully to these micro
environment factors and sustain long-term growth.;
Chapter 3
• Analyze consumer decision process and applications for marketers.
Give an example to illustrate the process of buying a technology product
The consumer decision-making process can be divided into five main stages. Each
step provides an opportunity for marketers to influence the final purchase decision and
strengthen long-term relationships with customers.
1. Problem/Need Recognition
The process begins when the consumer identifies a gap between their current situation
and a desired state. For example, a student may realize that their old laptop is too slow
for online learning or design work. At this stage, marketers can stimulate awareness
through advertising, influencer recommendations, or promotional campaigns that
highlight common problems and suggest possible solutions.
2. Information Search
Once the need is established, the consumer starts looking for relevant information.
This can involve browsing websites, watching product reviews on YouTube, or
reading feedback on social media. Marketers can guide this stage by ensuring
accurate, engaging, and accessible content on official channels, as well as optimizing
their visibility through search engines and social platforms.
3. Evaluation of Alternatives
After gathering information, consumers compare different options based on features,
price, brand image, and value. For instance, the student might weigh the benefits of a
MacBook versus a Dell laptop, considering aspects such as performance, durability,
and after-sales service. Here, marketers should emphasize the brand’s unique selling
proposition (USP) and provide clear comparisons to highlight strengths over
competitors.
4. Purchase Decision
At this point, the consumer makes the final choice and proceeds with the purchase.
The decision may still be influenced by situational factors such as discounts,
availability, or peer recommendations. Marketers can support this step by offering
seamless buying experiences, attractive promotions, and convenient payment or
delivery options.
5. Post-Purchase Behavior
The process does not end with the purchase itself. Consumers evaluate their
satisfaction with the product and share opinions, both online and offline. Positive
experiences lead to repeat purchases and brand loyalty, while dissatisfaction may harm
the brand’s reputation. Marketers must therefore provide strong after-sales service,
customer support, and loyalty programs to ensure continued engagement.
Example:
When buying a smartphone, the consumer may first realize their old phone no longer
supports new apps (need recognition). They then compare information on Samsung,
Apple, and Xiaomi devices (information search and evaluation). Based on budget and
desired features, they may decide to purchase an iPhone (purchase decision). Finally,
if Apple provides smooth software updates and reliable customer service, the
consumer is more likely to recommend the brand to friends and remain loyal
(post-purchase behavior).
Chapter 4
• Choose the two most convincing criteria to segment the motorcycle market. Explain
your choice with examples.
When developing a pricing strategy, businesses must carefully evaluate a range of
internal factors that directly affect their ability to set and adjust prices. In the
Vietnamese market, several critical aspects can be highlighted:
1. Production Costs
The cost structure of a product—covering raw materials, labor expenses, and
logistics—plays a decisive role in pricing decisions. Companies with lower production
costs can adopt competitive pricing strategies, enabling them to attract price-sensitive
consumers. For instance, many domestic automobile manufacturers in Vietnam, such
as those producing mid-range vehicles, are able to set lower prices compared to global
brands like Honda or Yamaha due to their cost advantages.
2. Corporate Objectives
The pricing strategy also reflects the firm’s overarching objectives. If the priority is
market expansion, businesses may pursue penetration pricing, setting lower prices to
rapidly increase market share. Conversely, when the goal is to maximize profitability,
premium pricing may be adopted to target high-income segments. A case in point is
Vinamilk, which implements a dual strategy: while its mass-market products are
priced affordably to sustain market reach, its premium organic product lines follow a
higher pricing policy to optimize profit margins.
3. Product Characteristics, Quality, and Brand Reputation
Pricing is further shaped by the unique attributes and perceived quality of the product.
Superior quality or innovative features often justify higher price points, particularly
when backed by a strong brand reputation. In Vietnam, brands that have established
consumer trust, such as Viettel in telecommunications, can charge premium prices due
to their reputation for reliability and service quality.
Chapter 5
• Discuss the functions and desirable qualities of product packaging.
How should businesses make effective packaging decisions? Give examples to
support your analysis
Packaging: Packaging includes all activities of designing and producing the container or
wrapper for a product".
• Primary package: containing or packing product directly
• Secondary package: layer used to protect, ensure the safety of product
• Shipping package: for more convenience during distribution
Function:
+ To protect the product quality and safety: The basic function of packaging is to protect the
contents from outside factor, damage, watering,... Packaging helps in the protection of the
contents of the products. Seasonal fluctuations in demand may be smoothed out through
packaging.
+ To attract consumers attention and stimulate consumption: It's at this point where the final
customer will first see the product for sale, therefore the packaging needs to have a positive
influence on the buyer's decision.
+ To advertise for the product and the company: packaging enable the product to be
promoted. It's at this point where visual identification of the product beings, as the buyer
needs to recognise what the product is.
+ To provide information on origin, components, manuals, expiration, and so on.
Importance of packaging
+ Packaging is "the silent salesman"
+ To meet consumers' growing needs and demands
+ To position and imprint company and brand image into consumers' mind
+ Sources for product innovation and improvement
-Requirements/ Desirable qualities for packaging
+ Able to protect product during cargo handling, transport and storage.
+ Easy to use and handle.
+ Be attractive and able to stimulate consumption,
+ Anti-counterfeiting and piracy,
+ Suitable to different consumers in different markets.
Chapter 6
• Analyze the internal company factors that influence pricing strategy.
Illustrate your answer with examples from the Vietnamese market.
When developing a pricing strategy, businesses must carefully evaluate a range of
internal factors that directly affect their ability to set and adjust prices. In the
Vietnamese market, several critical aspects can be highlighted:
1. Production Costs
The cost structure of a product—covering raw materials, labor expenses, and
logistics—plays a decisive role in pricing decisions. Companies with lower production
costs can adopt competitive pricing strategies, enabling them to attract price-sensitive
consumers. For instance, many domestic automobile manufacturers in Vietnam, such
as those producing mid-range vehicles, are able to set lower prices compared to global
brands like Honda or Yamaha due to their cost advantages.
2. Corporate Objectives
The pricing strategy also reflects the firm’s overarching objectives. If the priority is
market expansion, businesses may pursue penetration pricing, setting lower prices to
rapidly increase market share. Conversely, when the goal is to maximize profitability,
premium pricing may be adopted to target high-income segments. A case in point is
Vinamilk, which implements a dual strategy: while its mass-market products are
priced affordably to sustain market reach, its premium organic product lines follow a
higher pricing policy to optimize profit margins.
3. Product Characteristics, Quality, and Brand Reputation
Pricing is further shaped by the unique attributes and perceived quality of the product.
Superior quality or innovative features often justify higher price points, particularly
when backed by a strong brand reputation. In Vietnam, brands that have established
consumer trust, such as Viettel in telecommunications, can charge premium prices due
to their reputation for reliability and service quality.
Chapter 7
• Analyze the advantages and disadvantages of different types of distribution
channels. Which type of distribution channel should a large stationery production
company use to sell its products?
A marketing distribution channel is a set of interdependent organizations involved in
the process of making a product or service available for use or consumption by the
consumer or business user.
Distribution channels are the path and mode of moving goods from the producer to the
end consumer
There are two types of distribution channel:
● Direct distribution channel is a channel that has no intermediary level
- Pros:
+ Maintain and strengthen direct relationship with consumers
+ Reduce costs of consuming the products, create competitive advantage
+ Profit concentration
- Cons:
+ Increase workload for manufacturers
+ Low level of specialization
+ Difficult to expand current markets or enter new market
+ Might face excess inventories or slow inventory turnover
- Apply conditions:
+ Agricultural, fresh food, fragile goods.
+ Goods with large transport and handling volume.
+ Services, internal supply, or small-scale businesses.
● Indirect distribution channel is a channel that has intermediaries and
appearance of intermediary levels . Between the channel, the members
tranfers the following entities: the physical product, ownership, money
or payment, information, and promotion
- Pros:
+ Wide distribution of goods with expanded market area
+ Specialization in production and trade helps manufacturers focus on their
work, reducing the workload.
+ More influence on the market.
+ Greater channel complexity, reduce inventory risks
- Cons:
+ Increased distance between manufacturer and consumers in term of space
and time.
+ Increase costs of distribution, especially in case of ineffective
management
+ Less control over the flow of products, information, and payments.
- Apply conditions
+ Large manufacturers
+ Consumer goods industry
+ Products of high specialization levels
Large stationery companies typically adopt a multi-channel distribution strategy to
maximize their reach and efficiency. By utilizing various channels—such as direct
sales to retailers, wholesale distribution, e-commerce platforms, and partnerships with
large retail chains—they can access a broader customer base, including both
consumers and businesses. This approach allows for greater market flexibility,
enabling them to adapt to diverse customer preferences and demands. Additionally,
working with wholesalers can reduce distribution costs, while having a presence in
both physical and online spaces enhances brand visibility and recognition. Ultimately,
multiple channels create more sales opportunities and provide customers with the
convenience of shopping in their preferred manner, leading to higher overall sales
volume and improved customer satisfaction.
Kokuyo is a Japanese business that mostly focuses on office supplies and stationery. I
can offer some basic insights about how businesses frequently employ a combination
of direct and indirect distribution channels to market their products, though the
company's distribution methods may have changed since then.
Direct Distribution: Without the use of middlemen, direct distribution entails selling
goods directly from the producer or business to the final customer. To offer its items
directly to clients, Kokuyo may run its own retail locations or an online storefront.
This gives the business more control over pricing and customer service.
Indirect Distribution: Indirect distribution involves using intermediaries or third
parties to reach customers. Kokuyo may collaborate with wholesalers, merchants, or
distributors to make their goods available to a larger market. Customers of retailers
like stationery or office supply stores can purchase Kokuyo products from them.
In order to reach a larger audience and satisfy a variety of client preferences,
businesses frequently combine direct and indirect distribution methods. For instance,
Kokuyo might use sales reps to do direct sales to larger corporate clients while also
selling goods for individual consumers through retail partnerships. This strategy
enables the business to efficiently handle the varied needs of both businesses and
individual customers.
Chapter 8
• Why do businesses need to advertise? What are the key requirements of a
successful advertisement? For each requirement, give one example to illustrate your
point.
Advertising plays a crucial role in connecting businesses with their target customers. It
is not only a means of promoting products but also a tool to build brand image and
create awareness in a competitive market. In situations where consumers may lack
sufficient knowledge about a product or service, advertising acts as a bridge that
provides information, enhances brand recognition, and stimulates purchase intentions.
Example: The cosmetics brand Innisfree regularly launches campaigns on Facebook
and Instagram to introduce new product lines. These advertisements allow the
company to effectively reach young consumers who are highly engaged with beauty
trends.
Purpose of Advertising
The primary goals of advertising can be summarized as follows. First, it helps a brand
capture attention, making products stand out in an overcrowded market. Second, it
persuades consumers by highlighting unique benefits and encouraging them to choose
one product over competitors. Finally, advertising is also used to retain existing
customers, reinforcing loyalty through consistent brand messages and positive
associations.
Example: Vinamilk, one of Vietnam’s leading dairy companies, frequently airs TV
commercials emphasizing the nutritional benefits of fresh milk. This not only attracts
new buyers but also reassures current customers of the brand’s reliability and
long-term value.
Requirements for a Successful Advertisement
For an advertisement to be truly effective, several conditions must be met. First, the
message must be clear and compelling, focusing on the core benefit that consumers
care about most. Second, it should be creative and memorable, standing out from the
clutter of competing ads. Third, the content and medium must be aligned with the
target audience, ensuring that the campaign resonates with the right group of
customers. Finally, every successful advertisement should include a call-to-action,
guiding consumers toward the next step such as purchasing, subscribing, or trying out
a product.
Example: Shopee’s catchy jingle “Shopee, Shopee” accompanied by promotional
campaigns like the “9.9 Super Sale” is a prime example. The message is simple yet
memorable, directly targets online shoppers, and motivates them to engage in
immediate purchasing.
Conclusion
In essence, advertising is indispensable for businesses because it builds awareness,
influences consumer behavior, and fosters loyalty. A successful advertisement
combines clarity, creativity, audience relevance, and a strong call-to-action. When
these requirements are fulfilled, advertising becomes not only a promotional activity
but also a strategic driver of long-term growth.