Some marketing solutions contribute to promoting product consumption at Duy Tung Trading Company Limited

When talking about a product, people usually refer to it as a specific physical form of existence and therefore it only includes observable components or elements. For marketing experts, they understand goods in a much broader scope. Specifically:

“A product is anything that can satisfy a need or want and is offered to a market for attention, purchase, use or consumption.”

According to this concept, products include both tangible and intangible objects (services), including both material and immaterial elements. Even tangible goods include intangible elements. In reality, goods are defined by commodity units.

“A product unit is a distinct whole characterized by size, price, appearance, and other characteristics.”

 Product policy

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Product policy is the foundation of the marketing mix, which is determined by the larger business plan for the new product and the overall marketing strategy for all the company's existing products. When considering product policy, the company needs to pay attention to the following issues:

 Total quality management

Market and customer research not only answers the question of what customers need, how much, when and how much they need, but also knows what level of quality they require, what quality can satisfy them the most. However, customer quality requirements are unlimited, to decide on the appropriate quantitative level, the company must study the quality level of alternative competitive products. From there, determine the quality requirements with design and quality management orientation in the product manufacturing process.

 Product packaging and branding development

Choosing a brand for a product is important to ensure the success of new product development. Product packaging must ensure the simultaneous implementation of four functions: preservation, sale of goods, information about goods, aesthetics, creating the attractiveness of the product to customers and commercial function. Elements of a good brand:

 Suggest something about the product's characteristics such as the product's benefits and utility.

 Easy to pronounce, spell and remember.

 Easily distinguishable from other brands.

 Adapt new products to add to the company's existing product line.

 Comply with the law to be able to register the trademark with the competent authority. (Fundamentals of marketing - McGraw-Hills)

Packaging should perform protective, economical, convenient and sales support functions. The choice of product packaging is essential for identifying, describing and promoting the product. Therefore, these aspects should be considered when developing a product policy so that it can meet the needs of the target customers.

1.5.2.2 Price

Define

- In exchange activities , price is defined: "Price is the exchange relationship in the market."

Price is the symbol of the value of products and services in exchange activities. Therefore, price is indispensable in any exchange activity. Exchange through price is exchange based on the value of the things being exchanged. Therefore, when conducting exchange through price, the value of the things being exchanged must first be assessed. If the standard of value is economic benefit, then the acceptance of a certain level of value is a necessary condition.

Prices depend largely on the judgment of benefits that the participants in the exchange assess about that price.

- Buyers define price as follows: “The price of a product or service is the amount of money that a buyer must pay to the seller for the right to own and use that product or service.”

This definition clearly shows the buyer's perception of price:

Price is the monetary cost that buyers pay to obtain the benefits they seek in goods and services.

Buying cheap is a natural tendency in people's price behavior.

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Price is just a representation of a part of the cost (in money) that the buyer has to pay to own and use the product.

- For sellers : "The price of a good or service is the income that

the seller receives from the sale of that product”.

=> Here are some comments from marketers when evaluating the importance of price:

+ Price is the only variable of the Marketing-mix that generates revenue for the business. Pricing decisions are always linked to the financial results of the business. In exchange activities, the desire to sell products at a high price is one of the typical manifestations in the price negotiation behavior of the seller.

+ Price information always holds the number 1 position in proposing business decisions in general and pricing decisions in particular. Price management is considered a core content of marketing management.

Pricing policy

In pricing policy for new products, enterprises can pursue the following basic objectives:

 To survive (price higher than cost)

 To maximize immediate profits

 To increase market share

 To recover capital quickly

 To lead in quality

Other objectives: A business may use price to serve more specific objectives. A business may set its price low to prevent competition or set its price at a competitor's level to maintain market stability. Prices may be set to maintain reputation and support merchants or to avoid government intervention.

1.5.2.3 Place

Define

In general, a distribution channel is a set of independent and interdependent businesses and individuals involved in the process of bringing goods from producers to consumers. In other words, it is a group of organizations and individuals that perform activities to make products or services available for purchase and use by consumers or industrial users. Distribution channels create the flow of goods from producers through or without intermediaries to the final buyer.

There are many types of trade intermediaries involved in the distribution channel and perform different functions. Below are some of the main types of trade intermediaries:

1. Wholesalers are intermediaries who sell goods and services to other intermediaries, to retailers or to industrial users.

2. Retailers are intermediaries that sell goods and services directly to final consumers.

3. Agents and brokers are intermediaries who have the legal authority to act on behalf of the manufacturer.

4. Distributor is used to refer to intermediaries who perform distribution functions in industrial markets. Sometimes it is also used to refer to wholesalers.

Some trade intermediaries buy goods from sellers, store them, and resell them to buyers. Other intermediaries such as agents and brokers represent sellers but do not take title to the products; their role is to bring buyers and sellers together. The importance of intermediaries becomes apparent when one considers the functions they perform and the benefits they create for the end buyer.

A distribution channel is the route through which goods move from the producer to the consumer. A distribution channel overcomes the time, place and possession gaps between the producers and consumers of goods and services.

Product distribution policy

The basic content of distribution policy in new product marketing is to design and manage the sales network in the initial stage of launching the product to the market.

The sales network is a collection of channels with the participation of different entities with different strengths and reputations to successfully bring goods from the manufacturing enterprise to customers. The design and management of new sales channels of the enterprise must ensure the following basic requirements:

 Suitable for the nature of the product.

 Create the most favorable conditions for customers to access and purchase products easily.

 Review competitors' distribution channels.

 Distribution channels need to ensure increased company sales and establish sustainable relationships with intermediaries.

What is a manufacturer's agent?

It is an intermediary wholesaler that sells part or all of a company's product line in a given territory. A manufacturer's agent is useful in the following three situations:

 A small business with a limited range of products and no sales force. Thus, the agent is the one who takes care of the sales.

 A business wants to add a completely new or perhaps unrelated product to its existing product line. But the business's sales force has no experience with the new product or with a new market segment. Distribution of this new product can be delegated to a dealer.

 A business wants to enter a new market but their sales team is not yet developed enough to handle it. The business can use an agent who is familiar with that market segment.

There are three main types of distribution channels: Exclusive distribution:

 Limit the number of intermediary distributors.

 The intermediary does not sell competitors' goods.

 Businesses hope that customers have enough knowledge and motivation to buy the product.

 Enhance product impression and high profit.

 Choose a location to sell your product.

Selective distribution: is a method in which the number of manufacturing enterprises is greater than the number of distributors and the manufacturing enterprise does not spend much money to control the sales locations.

Wide distribution: businesses will find many sales locations to make it easier for customers to find products but will lose control of the sales system.

1.5.2.4 Promotion:

Define

Promotional mix is considered very important for modern businesses. The essence of promotional activities is to communicate information about products.

products and businesses to customers to persuade them to buy. Some of the main forms commonly used by companies in the promotion mix strategies are: Advertising, Sales promotion (sales promotion), Publicity (public relations), Personal selling, Direct marketing.

Traditional policies and sales promotion

When a new product is introduced to the market, the main objectives of the communication and sales promotion policy are:

 Inform potential customers that a new product is now available, how it is used, and the benefits of the new product.

 Direct selling should be increased targeting both distributors and consumers.

 Instead of calling or meeting each customer, businesses can introduce new products at fairs to attract interested customers.

Policies that may apply:

Direct Selling Advantages:

 Great flexibility.

 Aim directly at target customers.

 Generate real sales Difficulty: High cost

· Advertisement

Advantage:

 Support direct sales activities to attract customers that the sales team has not been able to market to.

 Improve relationships with wholesalers, enter a new (geographic) market or attract a new market segment.

 Introduce new products.

 Expand the usability of a product.

 Increase industrial sales.

 Against substitute products.

 Build public goodwill towards the business.

· Sales support

Consider the following two policies:

 "Pull" policy: This policy is used when the business's goal is to increase sales and requires entering a new market. To encourage customers to try the new product and persuade them not to use other products, businesses can use measures such as coupons, payment discounts, sample deliveries, and bonuses.

 "Push" policy: this policy contributes to supporting retail operations and goodwill of dealers. Support activities in this policy can be training for the sales force of the retailer, point of sale displays, and advertising subsidies.

· Advertising materials

Advantage:

 Lower costs than advertising and direct selling

 Provide customers with more trustworthy advertising content than advertising on other media, attracting more people's attention.

 Customers can get more information.

 More timely.

· Foreign relations

These activities are organized to build and develop a good image or relationship between the business and the public - customers, employees, local agencies and government. The media can be used in advertising campaigns.

Some marketing solutions contribute to promoting product consumption at Duy Tung Trading Company Limited - 4

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