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

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LO3 Understand the individual
elements of the extended
marketing

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 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" (Lake, 2015). After
all, selling the right product at the right price is how business gets done.

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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
want or need (Boundless, 2017). There are 2 types of product, that is tangible and intangible

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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.

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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

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 Tuition fee of Keuka program

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) 232.470.000 23.940.000 31.500.000 581.301.000

4th (at Vietnam) 71.400.000 430.000 3.150.000 73.930.000

(at the US) 232.470.000 23.940.000 31.500.000 581.301.000

TOTAL 278.920.000

1.295.762.000

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.

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Place

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.

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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)

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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

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. (The Marketing Mix, 2017).

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 (Professional Academy, 2017). 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 (CLEVERISM, 2017).

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

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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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