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THE UNIVERSITY OF DANANG

UNIVERSITY OF ECONOMICS
CENTER FOR INTERNATIONAL EDUCATION

ASSIGNMENT A2

MARKETING PRINCIPLES

Student name / BTEC Registration Number

Truong Thai Bao/Oliver HH43429
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Contents
I. LO3: ................................................................................................................ 2
1. Task 3.1: ....................................................................................................... 2
a. Marketing Mix 4Ps.................................................................................. 2
b. Marketing Mix 7Ps .................................................................................. 8
c. Begin by describing how the CIE Programs can be developed to
sustain competitive advantage. .................................................................. 10
2. Task 3.2: ....................................................................................................... 11
3. Task 3.3: ...................................................................................................... 12
4. Task 3.4:...................................................................................................... 12
5. Task 3.5: ...................................................................................................... 14
II. Reference: .................................................................................................... 17
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I. LO3:
1. Task 3.1:
The marketing mix definition is simple. It is about putting the right
product or a combination thereof in the place, at the right time, and at
the right price. The difficult part is doing this well, as you need to know
every aspect of your business plan.
As we noted before, the marketing mix is predominately associated
with the 4Ps of marketing, the 7Ps of service marketing, and the 4 Cs
theories developed in the 1990s.

a. Marketing Mix 4Ps

A marketing expert named E. Jerome McCarthy created the Marketing

4Ps in the 1960s. This classification has been used throughout the
world. Business schools teach this concept in basic marketing classes.
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The marketing 4Ps are also the foundation of the idea of marketing
mix.

Marketing Mix Product

A product is an item that is built or produced to satisfy the needs of a
certain group of people. The product can be intangible or tangible as it
can be in the form of services or goods. You must ensure to have the
right type of product that is in demand for your market. So during the
product development phase, the marketer must do an extensive
research on the life cycle of the product that they are creating.
A product has a certain life cycle that includes the growth phase, the
maturity phase, and the sales decline phase. It is important for
marketers to reinvent their products to stimulate more demand once it
reaches the sales decline phase.
Marketers must also create the right product mix. It may be wise to
expand your current product mix by diversifying and increasing the
depth of your product line.
All in all, marketers must ask themselves the question what can I do
to offer a better product to this group of people than my competitors.
In developing the right product, you have to answer the following
questions:

What does the client want from the service or product?

How will the customer use it?
Where will the client use it?
What features must the product have to meet the clients needs?
Are there any necessary features that you missed out?
Are you creating features that are not needed by the client?
Whats the name of the product?
Does it have a catchy name?
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What are the sizes or colors available?

How is the product different from the products of your
competitors?
What does the product look like?

Marketing Mix Price

The price of the product is basically the amount that a customer pays
for to enjoy it. Price is a very important component of the marketing
mix definition.
It is also a very important component of a marketing plan as it
determines your firms profit and survival. Adjusting the price of the
product has a big impact on the entire marketing strategy as well as
greatly affecting the sales and demand of the product.
This is inherently a touchy area though. If a company is new to the
market and has not made a name for themselves yet, it is unlikely that
your target market will be willing to pay a high price.
Although they may be willing in the future to hand over large sums of
money, it is inevitably harder to get them to do so during the birth of a
business.
Pricing always help shape the perception of your product in
consumers eyes. Always remember that a low price usually means an
inferior good in the consumers eyes as they compare your good to a
competitor.
Consequently, prices too high will make the costs outweigh the
benefits in customers eyes, and they will therefore value their money
over your product. Be sure to examine competitors pricing and price
accordingly.
When setting the product price, marketers should consider the
perceived value that the product offers. There are three major pricing
strategies, and these are:
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Market penetration pricing

Market skimming pricing
Neutral pricing
Here are some of the important questions that you should ask yourself
when you are setting the product price:
How much did it cost you to produce the product?
What is the customers perceived product value?
Do you think that the slight price decrease could significantly
increase your market share?
Can the current price of the product keep up with the price of
the products competitors?
Marketing Mix Place
Placement or distribution is a very important part of the product mix
definition. You have to position and distribute the product in a place
that is accessible to potential buyers.
This comes with a deep understanding of your target market.
Understand them inside out and you will discover the most efficient
positioning and distribution channels that directly speak with your
market.
There are many distribution strategies, including:
Intensive distribution.
Exclusive distribution.
Selective distribution.
Franchising.
Here are some of the questions that you should answer in developing
your distribution strategy:

Where do your clients look for your service or product?

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What kind of stores do potential clients go to? Do they shop in

a mall, in a regular brick and mortar store, in the supermarket,
or online?
How do you access the different distribution channels?
How is your distribution strategy different from your
competitors?
Do you need a strong sales force?
Do you need to attend trade fairs?
Do you need to sell in an online store?
Marketing Mix Promotion
Promotion is a very important component of marketing as it can boost
brand recognition and sales. Promotion is comprised of various
elements like:

Sales Organization
Public Relations
Advertising
Sales Promotion
Advertising typically covers communication methods that are paid for
like television advertisements, radio commercials, print media, and
internet advertisements. In contemporary times, there seems to be a
shift in focus offline to the online world.
Public relations, on the other hand, are communications that are
typically not paid for. This includes press releases, exhibitions,
sponsorship deals, seminars, conferences, and events.
Word of mouth is also a type of product promotion. Word of mouth
is an informal communication about the benefits of the product by
satisfied customers and ordinary individuals. The sales staff plays a
very important role in public relations and word of mouth.
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It is important to not take this literally. Word of mouth can also

circulate on the internet. Harnessed effectively and it has the potential
to be one of the most valuable assets you have in boosting your profits
online. An extremely good example of this is online social media and
managing a firms online social media presence.
In creating an effective product promotion strategy, you need to
answer the following questions:

How can you send marketing messages to your potential

buyers?
When is the best time to promote your product?
Will you reach your potential audience and buyers through
television ads?
Is it best to use the social media in promoting the product?
What is the promotion strategy of your competitors?
Your combination of promotional strategies and how you go about
promotion will depend on your budget, the message you want to
communicate, and the target market you have defined already in
previous steps.
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b. Marketing Mix 7Ps

The 7Ps model is a marketing model that modifies the 4Ps model. The
7Ps is generally used in the service industries.

Marketing Mix People

Of both target market and people directly related to the business.
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Thorough research is important to discover whether there are enough

people in your target market that is in demand for certain types of
products and services.
The companys employees are important in marketing because they
are the ones who deliver the service. It is important to hire and train
the right people to deliver superior service to the clients, whether they
run a support desk, customer service, copywriters, programmersetc.
When a business finds people who genuinely believe in the products
or services that the particular business creates, its is highly likely that
the employees will perform the best they can.
Additionally, theyll be more open to honest feedback about the
business and input their own thoughts and passions which can scale
and grow the business.
This is a secret, internal competitive advantage a business can have
over other competitors which can inherently affect a businesss
position in the marketplace.
Marketing Mix Process
The systems and processes of the organization affect the execution of
the service.
So, you have to make sure that you have a well-tailored process in
place to minimize costs.
It could be your entire sales funnel, a pay system, distribution system
and other systematic procedures and steps to ensure a working
business that is running effectively.
Tweaking and enhancements can come later to tighten up a business
to minimize costs and maximise profits.
Marketing Mix Physical Evidence
In the service industries, there should be physical evidence that the
service was delivered. Additionally, physical evidence pertains also to
how a business and its products are perceived in the marketplace.
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It is the physical evidence of a business presence and establishment.

A concept of this is branding. For example, when you think of fast
food, you think of McDonalds.
When you think of sports, the names Nike and Adidas come to mind.
You immediately know exactly what their presence is in the
marketplace, as they are generally market leaders and have
established a physical evidence as well as psychological evidence in
their marketing.
They have manipulated their consumer perception so well to the point
where their brands appear first in line when an individual is asked to
broadly name a brand in their niche or industry.
c. Begin by describing how the CIE Programs can be
developed to sustain competitive advantage.
CIE is well-known for its international program, its students are
trained in English language with a lot of experienced foreign teachers,
they know how to best communicate knowledge to Vietnamese
students. The difference of CIE's ability to compete with other school
programs is that students do not need to take courses such as
philosophy, advanced math, or revolutionary thinking. In addition,
CIE also organizes extracurricular activities, inter-class competitions,
and visits to other English language programs. Large agencies and
enterprises to learn and absorb more information, this makes CIE's
program more competitive.
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2. Task 3.2:
There are several ways in which businesses arrange distribution to
provide customer convenience. The methods used may vary slightly
based on what sort of business is being operated.
For example, those who are running an e-commerce business will
have different techniques than those who have a standard "real
world" business headquarters. Also, different real-world businesses
may have different techniques dependent upon the size of the
business and where they may be dealing with customers.
First, let's look at e-commerce. Amazon.com is a great example of
how distribution can be arranged to make things more convenient
for customers. Amazon offers free standard shipping for items that
are advertised through Amazon. One of the reasons that they are
able to do this is because they have distribution centers located all
over the place. When you make a purchase from the site, you will
receive your packages from a particular distribution center and the
location of the center is based on whichever one of the Amazon
fulfillment centers is nearest you and contains the item within its
standard inventory.
This results in savings for the customer as well as faster receipt of
items purchase, as they often do need to travel very far. It also means
that packages are less likely to arrive damaged or in poor condition,
as they don't have to be in transit as long or switch hands as many
times.
Next, there are stores that you can walk into and order from their
display inventory. The item will then be sent to you from a local
distribution center that is found in another part of your city or state.
This method allows stores to cut down on transportation costs as
items don't have to be shipped in large quantities to each individual
store. They are just housed at a central distribution warehouse
instead.
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The savings that companies see in their own transportation,

warehousing, labor and other costs translate to savings in final prices
for customers. They also usually mean that fulfillment processes are
more reliable as well, as the network for handling distribution isn't
as complex and prone to problems of challenges.
3. Task 3.3:
In the course of operation and development, it is necessary to
understand the purpose of the CIE. The goal may be to improve
facilities, the quality of teaching attracted much attention of
students and parents. One of CIE's next major goals is to expand its
base to other provinces in Central Vietnam. Now the price of CIE is
set to achieve long-term and short-term goals. Price of the product
is directly related to customer perceptions of value. It is all about
when learners are taught in a career environment and have the
opportunity to get high on graduation. Anyone can find, CIE prices
are reasonable but on the rise in any scene. No one can find a good
curriculum, with the condition of professional learning, as practiced
regularly, as practiced in CIE. Daily low pricing, constant price
fluctuations is another matter to maintain quality because of low
prices so customers will be used to make this change. So CIE should
follow all of this when going to set prices.
4. Task 3.4:
Promotion means making the customers aware of the product to
increase the sale of the product. Promotion is one of the very
important elements of the marketing mix. For the effective
marketing the marketing department must integrate the
marketing activities with the promotional activities. The
promotional strategies that the company can adopt are
persistence, competition and the far reaching effect of the
promotional activities. A lot of money has to be set aside for the
promotional and marketing activities. The most common
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mediums of advertisements are Television, radio, newspapers,

banners and the hoardings. These days the most upcoming
medium of promotion is the social media. Different organization
has different methods of the promotion and advertising. (Mack,
2016)
Promotional Mix consist of the strategies of the company to
promote the product such as public relation, sales and promotion,
personnel selling of the goods and advertising the products. The
elements of promotional mix are as follows:

Advertisement
The most common mediums of advertisements are Television,
radio, newspapers, banners and the hoardings. These days the
most upcoming medium of promotion is the social media.

Public relation
The company also gives bonus points on the birthdays and
festivals of the customers. In the advertising through the public
relation the administration push the company towards advertising.

Promotion through sales

Sainsburys has the promotional strategy through telemarketing
and by giving the loyalty card to the regular customers.

Direct marketing
The sales person promote the product directly to the customer in
malls and markets.
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Personal selling
Personnel selling is one of the other strategy which involves direct
interaction with the customers by organizing various group
gathering, also through various messages and calls.

Integrated marketing communication (IMC) is the promotion of a

bran through tradition and non-traditional manner using different
channels. IMC enables the companies to have a cost effective
promotion as it concentrated the promotion from mass
advertisement to niche advertisement. It involves the
advertisement through digital and social media. The various
techniques are as follows:
SOSTT
It stands for situation, objectives, strategies, tactics and targets.
Push strategy
It is a promotional strategy that involves taking the product
directly to the customer. Push here refers to taking the idea directly
to the market.
Pull strategy
Pull marketing means attracting the customers to the product.
Here the markets try their best to pull the customers towards
themselves.
5. Task 3.5:
Service marketing covers the different processes such as selling of
products, communication, health services, financial and other
professional issues. The characteristics of services are as follows:
Perishability
These are the services in which time plays an important role.
These services cannot be stored.
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Fluctuation
These are the products whose demand changes with time and
season. For example the season of ice cream is summer.
Intangibility
These are the services which cannot be touched and sensed but
they can be availed. This is an abstract phenomenon.
Heterogeneity
These are the services which cannot be standardized. For example,
a doctor charges rich clients higher than the poor ones. (Chand,
2016)
The basic four elements of the marketing mix are product, price,
place and promotion. The three additional elements were added
later on. They are given as follows:
Process
There is some system or the organization to conduct the
marketing strategies such as the delivery of the service,
consumption of the service and the uniformity in the offering. The
marketing department is concerned with the efficiency and
effectiveness of the difficult process. The company makes sure
that the message of the marketing reaches the concerned
customer at the right time.
People
The main people responsible for the marketing process are the
management and the employees. They make the customer aware
about the products of the organization and the rich culture of the
organization. They are responsible for presenting the services of
the company in a good manner in front of the customers and the
people outside. Human resource management holds the
important responsibility of hiring the employees for the HR
department and the other department as well. This department
holds the responsibility of increasing the efficiency of the
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company by motivating and managing the employees. These

employees have the responsibility of promoting the products and
services of the company. Human resource department trains and
develop the employees for performing the essential functions of
the company.
Physical presence
This aspect includes the delivery of the service, development of
the infrastructure of the company and providing services. The
company should deliver the services in a very friendly and a
healthy way. The ambience of the store should be neat and tidy
enough to attract a lot of customers. The facilities provided by the
store should be latest and modern. (Martin, 2014).
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II. Reference:
https://www.professionalacademy.com/blogs-and-advice/marketing-
theories---the-marketing-mix---from-4-p-s-to-7-p-s
https://www.tutor2u.net/business/reference/marketing-distribution-
channels
http://www.marketingmo.com/strategic-planning/how-to-develop-a-
pricing-strategy/