Contents

LO3 Understand the individual elements of the extended marketing.............................................2

Marketing Mix (4P’s)..................................................................................................................3

Extended Marketing Mix (7P’s)................................................................................................11

LO4 Be able to use the marketing mix in different contexts.........................................................15

Bibliography..................................................................................................................................16

1|Bruce
 LO3 Understand the
individual elements of
the extended
marketing

2|Bruce
 Marketing Mix (4P’s)
A marketing mix, was first expressed in 1960 by E. J. McCarthy, is a way to make important
decisions about how to execute a successful marketing plan. Several concepts and ideas
combined together to formulate final strategies helpful in making a brand popular amongst the
masses form marketing mix. The marketing mix comprises four main pieces that create the
picture of a successful business: Price, place, promotion and product, known as the "4 Ps"
[ CITATION Lau15 \l 1033 ]. After all, selling the right product at the right price is how business
gets done.

3|Bruce
Product

 What does the customer want from the product /service? What needs does it satisfy?

 What features does it have to meet these needs?

 Are there any features you've missed out?

 Are you including costly features that the customer won't actually use?

 How and where will the customer use it?

 What does it look like? How will customers experience it?

 What size(s), color(s), and so on, should it be?

 What is it to be called?

 How is it branded?

 How is it differentiated versus your competitors?

 What is the most it can cost to provide and still be sold sufficiently profitably?

In general, a product is defined as a "thing produced by labor or effort" or the "result of an act or
a process. In marketing, a product is anything that can be offered to a market that might satisfy a

4|Bruce
want or need [ CITATION Bou17 \l 1033 ]. There are 2 types of product, that is tangible and
intangible product. Tangible product are physical items that can be perceived by the sense of
touch. Examples of a tangible product include cars, food items, computers, telephones, etc. In the
other hand, intangible products is travel, freight forwarding, insurance, repair, consulting,
computer software, investment banking, brokerage, education, health care, etc.

In the case of CIE, their products are subjects, disciplines and curricula for students. CIE's
curricula and disciplines specialize in aspects of economics such as business administration or
accounting. Compared to CIE rivals such as VN - UK and AUV (The American University for
Vietnam), CIE has fewer majors. In VN- UK, in addition to the economics, they also have the
field of biomedical sciences, computer science and engineering. At AUV, they have majors in
communications, computer science, hotel management and tourism.

In general, the current weakness of CIE over its rivals is the low academic choice for its students.
As for the quality of teaching, college is mainly for gaining knowledge and gaining employment
as well as success in later work, CIE has been established longer than its competitors so it is
difficult to verify whether CIE programs are more realistic than their competitors. But in return,
graduate students will be recognized by the universities in the United Kingdom and the United
States as well as the university degrees that will be awarded by the universities themselves.

5|Bruce
Price

Pricing is one of the most important elements of the marketing mix, as it is the only element of
the marketing mix, which generates a turnover for the organization. The other 3 elements of the
marketing mix are the variable cost for the organization;

Product - It costs to design and produce your products.

Place - It costs to distribute your products.

Promotion - It costs to promote your products.

(Source: Learn Marketing, 2017)

Tuition fee of Sunderland program

Year Tuition Fee Cost of Living Insurance Book Total

1st (at Vietnam) 44.100.000 430.000 2.100.000 46.630.000

2nd (at Vietnam) 67.200.000 430.000 2.100.000 69.730.000
3rd (at Vietnam) 75.600.000 430.000 2.100.000 78.130.000

4th (at Vietnam) 136.500.000 430.000 3.150.000 140.080.000

(at the UK) 290.700.000 246.240.000 5.130.000 6.840.000 548.910.000
TOTAL 334.570.000
743.400.000

Tuition fee of Keuka program

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 Year Tuition Fee Cost of Insurance Book Total
Living

1st 60.900.000 430.000 2.100.000 63.430.000

2nd 67.200.000 430.000 2.100.000 69.730.000
3rd (at Vietnam) 69.300.000 430.000 2.100.000 71.830.000
(at the US) 23.940.000 31.500.000 581.301.000
232.470.000
4th (at Vietnam) 71.400.000 430.000 3.150.000 73.930.000
(at the US) 23.940.000 31.500.000 581.301.000
232.470.000

TOTAL 278.920.000
1.295.762.00
0

Price must support the other elements of the marketing mix. Pricing is difficult and must
reflect supply and demand relationship. Pricing a product too high or too low could mean lost
sales for the organization. There are many ways to decide the prices of a product. With CIE, they
apply Cost Based Pricing to determine their tuition fees. Cost Based Pricing is a form of product
pricing based on the amount of money that a company must spend to create that product. In the
case of CIE, that is the amount of money CIE must spend to bring the training system of schools
abroad such as University of Sunderland of England and Towson of America and use them for
lecturing their students. CIE tuition fees are usually higher than those of other competitors,
because their programs are from countries which have higher monetary values than Vietnam. In
return, CIE's teaching, learning programs and their degrees will be more quality than their
competitors because the quality of instruction will be managed by universities such as
Sunderland, Keuka and Towson as well as CIE's graduation will be granted by foreign
institutions.

Place

7|Bruce
In the marketing mix, the process of moving products from the producer to the intended user is
called place. In other words, it is how your product is bought and where it is bought. This
movement could be through a combination of intermediaries such as distributors, wholesalers
and retailers. In addition, a newer method is the internet which itself is a marketplace now.

Through the use of the right place, a company can increase sales and maintain these over a
longer period of time. In turn, this would mean a greater share of the market and increased
revenues and profits.

Correct placement is a vital activity that is focused on reaching the right target audience at the
right time. It focuses on where the business is located, where the target market is placed, how
best to connect these two, how to store goods in the interim and how to eventually transport
them.

(Source: CLEVERISM, 2017)

CIE chooses Da Nang, which is the center of central Vietnam, Da Nang is not only close to other
central provinces, but Da Nang is also the largest and busiest city in Central Vietnam, parents
with children who are in college age will have enough conditions to pay for CIE courses, so this
will be the right place for CIE to set up its headquarters here. Furthermore, CIE subjects are
primarily economics-oriented, so they choose the Danang University of Economics (DUE) to
place their office there. When they set up an office here, people who come to DUE are interested
in economics courses so many people know more about CIE.

8|Bruce
Promotion

Promotion includes all activities that involve communicating with the customer about the
product and its benefits and features. Once a company has worked on the product and price
elements, it is time to start a conversation with the consumer about the product. This includes
raising awareness through different mediums to increase sales, as well as to create and foster
brand loyalty. Information provided to the customer at this stage helps them in making purchase
decisions regarding the product. Objectives of promotional activities:

 Building Awareness
 Creating Interest
 Providing Information
 Stimulate Demand
 Differentiate product
 Reinforce the Brand

(Source: CLEVERISM, 2017)

9|Bruce
About CIE, they have their own promotion methods and campaigns. First, they deduct 5% of
tuition fee for the first year for students enrolled before August. Second, they have scholarships
to support full tuition fees for students with the highest college score. Third, after each school
year, CIE will summarize the academic results of each student, the best students in the school
year will receive the scholarship. And in particular, they also provide 50% tuition fee to go
abroad for master's degree for the graduates with the best performance. In addition, CIE
cooperates with high schools in Da Nang to support scholarships for the best students. CIE
focused on Facebook to promote its program and posted pictures of extracurricular activities of
CIE students. They also provide students with access to large businesses such as Grand Tourane,
Naman and Furama to learn, so that more people will know about CIE.

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Extended Marketing
Mix (7P’s)
The marketing mix is the combination of elements used by a business to enable it to meet the
needs and expectations of customers.

It is called a marketing mix because each element of the marketing mix is related to the others.
The challenge for marketing is to ensure that the elements of the mix work together to achieve
the marketing objectives. Traditionally the marketing mix has been taken to comprise four
elements: (product, price, promotion and place).

However, in recent years it has become more common to add three new elements to the
traditional marketing mix, making a combined 7p’s. This is the so-called extended marketing
mix.

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People

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All companies are reliant on the people who run them from front line Sales staff to the
Managing Director. Having the right people is essential because they are as much a part of your
business offering as the products/services you are offering, 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, programmers…etc. [ CITATION
The17 \l 1033 ].

About people at CIE are lecturers, students, officers and people involved in CIE training
programs. About lectures, CIE is very selective, they only choose people who have experience
and teaching qualifications. For students, although the input is very easy but to be officially
qualified at CIE, students must pass the English language selection exams to ensure that they will
be able to understand the lecture when they attend the class. learn. After that, students must pass
many subjects, pass assignments and complete the CIE-related learning activities so that they can
graduate with CIE programs.

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Physical Evidence

Almost all services include some physical elements even if the bulk of what the consumer is
paying for is intangible. For example, a hair salon would provide their client with a completed
hairdo and an insurance company would give their customers some form of printed material.
Even if the material is not physically printed (in the case of PDF’s) they are still receiving a
“physical product” by this definition [ CITATION Pro171 \l 1033 ]. Additionally, physical
evidence pertains also to how a business and its products are perceived in the marketplace.

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. And with CIE, their Physical Evidence is a
foreign curriculum and a professional, highly professional learning environment.

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Process

Since service provision needs to strike a balance

between customization and standardization, the
processes involved in the activity require special
mention and attention. A process needs to be
clearly defined for the service provider. This
basic process should ensure the same level of
service delivery to every customer, at any time
of day, on any day. Within this process, there
should be defined areas where a customer
preference can be accommodated to provide a unique experience [ CITATION CLE172 \l 1033 ].

In terms of the curriculum of the curriculum, CIE almost entirely uses BTEC's programs and
universities abroad. As for the output, CIE controls quite closely, first, the students will have to
undergo the first year of English training at CIE under the program of TEG Singapore. After that,
the students will have to pass all courses taught by the BTEC program in order to gain a BTEC
college degree. From there, the students will be in the fourth year, also the last year of the CIE
training program. For students attending Keuka's program, in the last 2 years they can choose to
study in Vietnam or study at Keuka in USA. As for the students attending the Sunderland training
course, the last year they can choose to take the top-up classes at CIE Danang, or they can go to
Hanoi or Ho Chi Minh City for the next year. Sunderland's program. Moreover, for students who
want to experience self-reliance and live and study in a foreign environment, they can attend
Sunderland in Sunderland, England.

And to assess the quality of CIE teaching and learning, every year there will be experts from
TEG and Sunderland who come to CIE to check on CIE's teaching and learning process and
check the knowledge of teachers and students attending the CIE.

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LO4 Be able to use the
marketing mix in
different contexts

16 | B r u c e
Bibliography
Boundless. (2017). Defining Product. Retrieved from Boundless:
https://www.boundless.com/marketing/textbooks/boundless-marketing-
textbook/products-9/what-is-a-product-66/defining-product-331-7301/

CLEVERISM. (2017). 7Ps of Marketing | Additional Elements of Marketing mix. Retrieved from
CLEVERISM: https://www.cleverism.com/7ps-additional-aspects-marketing-mix/

CLEVERISM. (2017). Marketing Mix | Place in Four P’s. Retrieved from CLEVERISM:
https://www.cleverism.com/place-four-ps-marketing-mix/

CLEVERISM. (2017). Marketing Mix | Promotion in Four P’s. Retrieved from CLEVERISM:
https://www.cleverism.com/promotion-four-ps-marketing-mix/

Lake, L. (2015). What is a Marketing Mix? Retrieved from The Balance:

https://www.thebalance.com/what-is-a-marketing-mix-2295520

Learn Marketing. (2017). The Marketing Mix. Retrieved from Learn Marketing:
http://www.learnmarketing.net/price.htm

Professional Academy. (2017). MARKETING THEORIES – THE MARKETING MIX – FROM 4

P’S TO 7 P’S. Retrieved from Professional Academy:
https://www.professionalacademy.com/blogs-and-advice/marketing-theories---the-
marketing-mix---from-4-p-s-to-7-p-s

The Marketing Mix. (2017). The Marketing Mix 4P’s and 7P’s Explained. Retrieved from The
Marketing Mix: http://marketingmix.co.uk/

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