ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2 Marketing Essentials

Submission date 24 June 2020 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Lưu Ngọc Phương Student ID GBS190613

Class GBS0808 Assessor name Hồ Hữu Lực

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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 I. Introduction

I am a new member of Marketing Department of Company X. My team is about to build a strategic

marketing plan for a new product line, which will be launched in 3 months. To prepare for this, I have been
assigned to conduct a small study in order to review the various ways in which organizations (especially
my company competitors) use the marketing mix to achieve their overall business objectives.

II. Body

The marketing mix is the combination of elements that business use to enable it to respond the needs and
expectations of customers (tutor2u, 2017). Elements of the marketing mix are often related together, it
leads to good effect in the desire of an organization. The difficult thing about marketing is how to combine
all of the things in how to get the right product at the right time of the market or how to get the right
product at the right time at the right price. The marketing mix 7Ps includes product, price, place,
promotion, process, people and physical evidences.

1. Product: all things are entered to market to attract the customer’s shopping, it is produced to
attend to the needs, wants, or demands of humans. It includes two kinds of products are tangible
and intangible.
+ tangible: things that can be seen, tasted, or touched, for example: laptop, car, food, etc.
+ intangible: often relate to services, immaterial things, and can not touch, for example: customer
care, warranty, insurance, etc.

2 types
Consumer product of Industrial product
product
Convenience
Raw Material
Shopping
Capital Item
Specialty
Supplies/Services

Unsought
+ Consumer Product
A convenience product is things that people buy it normally with a low cost such as toothpaste, food,
water, etc.
Shopping product: Customers are fighting in having decisions about what is the most necessary for the
family at that time, which brand is better (ex: clothes, interior, electronic device,…)
Specialty product: products have the condition on gender, age, substantial product because it is just
bought several times (ex: luxury goods, motorbike,…)
Unsought product: are consumer products that customer do not know about it and do not like but have
to buy in special situations (ex: medicine, fire extinguisher,etc.)
+ Industrial Product:
Raw material: it includes farm and natural products, it is sold directly to industrial users (2013)
Capital item: industrial products used in production or operations (ex: IT system, building infrastructure)
Supplies/services: operating supplies and business services (Riley 2019)

2. Price
The price of the product is the cost that customers have to pay to own or use the product. It has two parts
that are cost and margin. Costs must be calculated as production costs, logistic cost, and operational cost.
It is effect directly to the price of the product. Margin is the percentage of return on total revenue.
Calculation Formula
Markup + Product Cost = Price

Price and demand are often inversely ratio to each other, just a direct ratio in some situations. And it has
two types.
+ inelastic demand: higher price, lower demand
+ elastic demand: depend on factor effecting such as income, the price of substitute goods and expectation
of the customer
Six main pricing strategies:
+ pricing skimming: changing a high introductory price in tandem with heavy promtion and later slowly
dropping the price

+ penetration pricing: when a company charges a low price for their product initially to reach the largest
amount of their target market.
+ economy pricing: With this strategy, it is mainly aimed at low-cost customers, they will decide to buy
immediately without considering too carefully about the quality and origin.
+ prenium pricing: businesses will often pay higher prices than their competitors, mainly in highly engaged
and often related products, health products, beauty, and personal style.

+ psychology pricing: this strategy often strikes customers' emotions rather than rationalities. A typical
example, the set price of 199, 299 are attracted more buyers.
+ bundle pricing: is businesses offering cheaper rates when consumers buy several goods at the same time.
For instance, English centers often offer corresponding shorter and longer courses at different tuition
rates. They pursue customers by bringing out many benefits from the longer courses. Gym center or
packages often use this types.
Table A: An example of Direct English center
Direct English Center
D10 D15
Tuition fee: 56 million Tuition fee: 66 million
Be given more than 2 months Be given more than 5 months
Guaranteed increase of 2 levels Guaranteed increase of 4 levels

3. Places
In this factor, it is necessary to build a system to provide reasonable products and good services to help
customers have the convenience of using. There are three environments that customers use daily are
general trade, modern trade and online. Depending on customer behavior has different distribution and
often has three main channel that are intensive distribution strategy, exclusive distribution strategy
(exclusive), selective distribution strategy (selective), franchising. More and more the organization always
changed to have a better and professional systems to service customer in the best way.

4. Promtion
Integrated marketing communications (IMC) is often used in promotion, organization choose the different
and suitable media to connect with the market. It includes advertising, sales promotion, public relatations,
personal selling and direct marketing. The most important in promotion is the compelling messages that
is transmitted to the objective market.
+ advertising: use the mass media to introduce products to persuade and encourage customers to buy
goods. There are a lot of ways to advertising such as running the campaign on fanpage, leaflets and poster
on the street, creating small videos about product.
+ sale promotion: has many ways to type in customer psychology (discount or gift make customers will
prefer to buy). For example: discount 10, 20 percent, buy 1 get 1, and choose gift that is suitable with
products.
+ public relation: it build and protect the reputation of company, products or service in public. On this day,
more and more people live on the Internet, communication speed in public is very fast. Therefore, we
should mention on it to build credibility as well as build trust with customers to have more retailers and
introduction for people around customer (have more new customers).
+ personal selling: it is the direct transmission of information to customers. It is appeared in general trade,
they have a small store in it, some labours stay directly at store to introduce produce, then they persude
customer to buy it, some labours distribute flyers to people that go to the market.
+ direct marketing: use telephone or email to communicate and create services after selling for a customer.
( create mail advertising template, or texting and phoning customers files)

5. Process
There are four important process in marketing mix and it is known as a particular operating procedure or
a sequence of actions, usually involving steps which must take place in a given sequence (Lovelock and
Wright, 1999).
+ people process: involve tangible actions to people’s bodies, customer has to meet directly throughout
the service process to be recieved benefits that they want.
+ possession process: tangible actions to goods and other physical possessions belonging to customers (ex:
lawn mowing, cleaning services,..) (Lovelock and Wright, 1999). And goods are through an intermediary
will create an addition layer of price
+ mental stimulus process: intangible actions directed at peoples minds.
+ information process: intangible actions directed at customer’s assets. There are many ways to have this
information which can be direct or mediate.

6. People: are important of the marketing mix, it has three factors following
+ core value: help maintain the firm’s positioning, they are often inventor, worker, and BOD
+ support people: are agencies, digital marketers, PG, PB and IT, they are the key driver of productive of
frontline operation, customize service delivery
+ value-added people: relate to warranty, transporters, distributor and supplier
Each of the factors has an important role in combining to generate sales, cross-sales, and up-sales how to
be effective.

7. Physical Evidences: visual or other tangible clues that provide evidence of service quality (Lovelock
& Wright, 1999), it is dimensions of the service enviroment. This section is about aspects of logo, slogan,
design, deal, sticker of product. Researching the processes they use to select, use (consume) and eliminate
appropriate products and services based on their emotional, mental, and behavioral responses to create
conveniences for customers.

Marketing Mix of OMO

1. Product

''White and light'' are the two positioning elements of OMO. Product is with a high position in cleaning, so
OMO constantly launches products that meet the needs and conditions of Vietnamese consumers such as
OMO MATIC for washing machines, OMO with "only soaked, clean technology", and the combination of
OMO with COMFORT fabric softener. Moreover, they are very focusing on packaging the product, always
creating the packaging such as 90gm, 400gm, 800gm, 1,5kg ... to be more convenient for consumers and
can be preserved in the best way.
 The products of OMO
(Source:Popimedia)

2. Price
Price is an equally important component in Omo's Marketing Mix strategy including wholesale price,
retail price, discount, discount, credit. The good point of this brand is that it identifies the market
segment to offer a fair price. They know that 80% of Vietnamese people have low incomes, so they
have reduced prices and have the most convenient support measures to buy products from customers.
 (Source: Iprice, 2020)

3. Places

More and more people are shopping in modern trade, so OMO has been sold in supermarkets like Big C,
Coopmart and Maximax.

On the other hand, the company has brought the concept of online retailing, using salespeople to each
retail store by route, who are responsible for offering new orders, delivery, and credit for orders next
row. They provide shelves to display products
 4. Promotion

An advertising strategy is also considered as a strong point in Omo's Marketing Mix strategy when it first
entered the market, the company made advertising and direct sales as the main goal of the business.

They use the trick is to interview consumers directly as an advertisement, which helps them receive direct
feedback from customers to change weaknesses and also a strong point to attract more customers from
the comments that are not virtual. Besides that, they use the influencers and catch up with the hot trends
to create advertisements.

Although OMO just runs the project with 4P that brings a lot of good results, I think if they combine with
more 3P, OMO will bring more value for customers and the organization.

1. People: they should have more human resources with good expertise or purchase more about
delivery and customer services. I think inventor is important in this feature, people always a tendency to
like new things. Therefore, inventor combines with digital marketers, IT to create new styles and has more
benefits for customer.
2. Process

The possession process is expanded more when they find distribution as much as possible.
The information process helps OMO change the weakness to be better by feedback of customers. Or
collecting information through online quizzes.

3. OMO attach special importance to packing, so they take care of physical evidence more, OMO

is further increased. Customers often use lemongrass water after using washing powder to make clothes

smell better, so they need to have combo products to serve customer better.

III. Conclusion

Marketing mix 4P has brought a lot of benefits for the project of the organization, it is added 3P that has
more value in some respect. Marketing mix 7P is higher and more difficult, they should apply these suitably
to improve or develop the organization.

Reference

GTV, 2020. Available at: https://gtvseo.com/4p-marketing/ (Accessed: 5 January 2020)

Iprice, 2020. OMO Viet Nam. Available at: https://iprice.vn/omo/ (Accessed: 22 June
2020)

Riley, J. (2019) https://www.youtube.com/watch?v=z0RzUo99W1c

Lovelock C., Wirtz J. & Chew P., 2009, Essentials of Services Marketing, Prentice Hall

Lovelock C. & Wright L., 1999, Principles of service marketing and management, Prentice Hall

Tomorrow Marketers, 2020 Avaible at: https://blog.tomorrowmarketers.org/6-chien-luoc-dinh-

gia-hieu-qua-danh-cho-marketers/ (Accessed: 22 June 2020)