UNIT 1:

International trade: Purchase, sale, or exchange of goods and services across national borders.
Exporting: Sending goods to another country for sale or trade
Importing: Bringing in goods from another country for sale or trade
 Theories of International trade
Mercantilism (chủ nghĩa trọng thương): Trade theory holding that nations should accumulate financial wealth,
usually in the form of gold, by encouraging exports and discouraging imports.
Absolute advantage: Ability of a nation to produce a good more efficiently than any other nation.
Comparative advantage: Inability of a nation to produce a good more efficiently than other nations, but an ability
to produce that good more efficiently than it does any other good.
Factor proportions theory (tỷ lệ nhân tố): Trade theory holding that countries produce and export goods that
require resources (factors) that are abundant and import goods that require resources in short supply.
Terms of trade: Terms of trade or TOT is the relative prices of a country's export to import (TOT=PE /PI)
 The balance of trade (cán cân thương mại): is the difference in value between imports and exports of
goods over a particular period.
 The balance of payments (cán cân thanh toán): A detailed record of all financial and economic
transactions between the residents of two countries. The balance of payments comprises the current
account (TK vãng lai), the capital account (TK vốn), and the financial (tài chính) account. "Together,
these accounts balance in the sense that the sum of the entries is conceptually zero."
 Balance of payments identity
Current Account = Capital Account + Financial Account + Net Errors and Omissions
Protectionism is the economic policy of restraining trade (hạn chế thương mại) between nations, through
methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government
regulations designed to discourage imports, and prevent foreign take-over of local markets and companies =
The favoring of domestic industries
An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that
can be imported into a country in a given period of time.
A tariff is a tax imposed on goods when they are moved across a political boundary (ranh giới chính trị).
 ``

1. What are factors which help countries have an absolute or a comparative advantage in producing goods?
→ Factors of production, most importantly raw materials, but also labor and capital, climate, economies of scales,
and so on.
2. Why does the theory of comparative advantage seem not to explain the international trade?
→ Because it doesn't explain why the majority of the exports of advanced industrialized country go to other very
similar countries.
3. What is infant industries?
→ A recently developed one that has not yet grown to the point where it benefits from economies of scale, and can
be internationally completive.
4. What is the advantage of tariff for government? → Unlike quotas, they produce revenue.
5. What are the advantages of quotas in quantity of goods? → Unlike tariffs, you know the maximum quantity of
goods that will be imported

LCDS: THE LESS DEVELOPED COUNTRY

1. What is a structure of production and trade of LCDs? What about MDCs?
→LDCs produce and export primary products and import manufactures goods, intermediate inputs durable
consumer goods, machinery, transport equipment, chemical petroleum and so on, while MDCs export what LDCs
import and import what
LDCs export.
2. Give three examples of the current reliance of LCDs on primary products for export.
→They were heavily dependent on the production and export of a limited range of primary commodities
(foodstuffs, fuels and industrial raw materials) going mainly to the developed capitalist economy.
3. What are the arguments which suggest that there were no advantages to be gained by LDCs from their
structure of production and trade?
→Orthodox economists tended to argue that this structure of production and trade was consistent with the LDCs'
comparative advantage and that they enjoy significant gains from trade. The critics of this view, however,
maintain that the gain from trade were mostly more likely, for variety of reasons, to be appropriated by the
developed capitalist economies. The unequal exchange thesis espoused by some neo-Marxists, went further and
suggested that trade was actually carried out at the expense of the LDCs, producing the condition of under
development and poverty.
4. Give a definition of the net barter terms of trade.
→The commodity, or net barter, terms of trade are the ratio of the unit price of export to the unit price of import
and the deterioration in the index implies that a given volume of exports is exchanged for a smaller volume of
imports.
1. Does your country have a trade surplus?  Yes, in the last two years.
2. Does it have a balance of payments surplus or deficit? ➜ It has a balance of payments deficit.
3. What are its chief exports? → Agricultural products, raw materials
4. Which industries or sectors are protected? → Electricity, clear water, car manufacture.
5. Which do you think should be protected?  Infant industries
6. Give example of Vietnam, which can apply the theory of comparative advantage in importing and exporting?
 Vietnam has comparative advantage in producing rice compared to many countries. Shoes and foot wear
products need a huge number of labour which is abundant in Vietnam, so our industry has a comparative
advantage.
7. Does Vietnam gain or loss from trade? Give your explanation.→ VNgains from trade, because we have
comparative advantage of agricultural products to export.

UNIT 2:
Foreign Portfolio Investment (đầu tư gián tiếp): The purchase of shares and long-term debt obligations from a
foreign entity. Portfolio investors do not aim to take control of a corporation. They can liquidate their investment at
market value any time.
Foreign Direct Investment: The establishment of a plant or distribution network abroad. Investors can acquire part
or all of the equity of an existing foreign corporation either to control or share control over sales, production, and
research and development.
Strategic Approach: Foreign direct investment decisions based on business strategies. Investors seek access to raw
materials, markets, product efficiency, and "know-how".
Cash Flow: The total amount of cash that remains in a company after it has paid taxes and other cash expenses.
Investment Incentives (khuyến khích đầu tư): benefits such as cash grants (trợ cấp tiền mặt), tax credits (tín
dụng thuế), accelerated depreciation(khấu hao nhanh), and low interest-bearing loans(vay lãi thấp), which
are sponsored by national or local authorities to attract foreign investment.
Exclusive Distributor(nhà phân phối độc quyền): An independent sales agent who is given the sols right, under
contract, to sell a foreign manufacturer's products.
Multiple Distributor = non-exclusive distributor (nhà bán lẻ): A sales agent who represents more than one
manufacturer.
Royalty Payments (phí bản quyền): the payments made by a foreign manufacturer to a company that has licensed
the manufacturer to product its products.
Joint Venture: A subsidiary formed by two or more corporations.
* (6W+H): • Who? (is the investor) • What? (kind of FDI)• Why? (are we investing) Where? (is the FDI going)•
When? (do we invest) • How? (the mode of entry)
*Types of FDI:
Horizontal FDI arises when a firm duplicates its home country-based activities at the same value chain stage in a
host country through FDI.
Platform FDI Foreign direct investment from a source country into a destination country for the purpose of
exporting to a third country.
Vertical FDI takes place when a firm through FDI moves upstream or downstream in different value chains i.e.,
when firms perform value-adding activities stage by stage in a vertical fashion in a host country.
*The typology of FDI was developed to explain the different objectives of FDI: Resource seeking FDI, Market
seeking FDI,Efficiency seeking (global sourcing FDI), Strategic asset/capabilities seeking FDI

1.Nếu khái niệm + so sánh

FPI FDI
Method Gain part or all of ‘equity’ of an foreign Buying house’s debentures
company
Aim Controlling or sharing control Seeking profit from investment
Liquidity Long – term commitment or cannot withdraw Liquidate the investment any
the capita; easily time
 Limitation of capital Limit up (higher than FDI) Limit down
2.Foreign direct investment decisions are normally based on clear business strategies. Name at least three
categories that companies are looking for.
→ The categories are: raw materials, markets, product efficiency, know-how,...
3.In considering foreign investment, what is an MNC's first strategic objective?
→ Their first strategic objective is the market for its present or future products. In addition, they are also raw
materials, product efficiency and know-how.
4.What are some financial considerations in making a foreign direct investment? → They are: interest rates, cash
flow projection, sources of working capital ...
3. When is a foreign project said to be viable (khả thi)? What is a nonviable project?
→ A foreign project is said to be viable when it has a availably reliable access to outside financing, while a non-
viable project has a lower rate of return compared to the project in the host country
4. Name two kinds of legislation that foreign investor study closely prior to making an investment? → They are:
antitrust legislation and labor laws.
6. Why are investment incentives highest in a depressed area?
→ Because these areas need to attract foreign investment to solve the problems like low- income and living
standard or unemployment.
7. When a corporation starts to export for the first time, how will it organize its sales? → It will usually engage
distributors who receive a commission on products sold.
8. What is a drawback of licensing or authorizing foreign distribution?
→ The drawback of licensing or authorizing foreign distribution is that manufacturer gives up the control over
their product so if licensed product lacks quality, the exporter's reputation suffers.
9. If a company does not want complete manufacturing responsibility for a foreign market, what ownership
possibility remains?
→ It is the original manufacturer gives up control over the product so if licensed product lacks quality, the
exporter's reputation suffers.

Fill in the blank in the sentences below with the correct word or phrase
1. When investors establish a plant overseas, it is called FDI. If they buy shares or long- term debt obligations, this
is called portfolio investment.
2. The amount of cash that remains after a company has paid taxes and other cash expenses is profit.
3. Rate of return is often measured in terms of profits realized on assets employed.
4. A cash grant is called an investment incentive whose purpose is to support foreign investment.
5. Prior to making a foreign direct investment, exporters can make a contract with a distributor with a foreign
manufacturer, who will be engaged to manufacture their products. For this, the foreign manufacturer pays
commission.

UNIT 3:
Foreign Exchange(ngoại hối): money or currency of a foreign country.
Gold Standard: A monetary system used in the nineteenth and early twentieth centuries whereby the value of
currencies could, on request of the owner (holder), be converted in to gold at a country's central bank. As all
currencies had a gold value, they also had a certain value in relation to each other. This was the beginning of a
foreign exchange system.
Central Bank: A country's chief bank, which is government owned. It regulates the commercial banks and holds
gold and foreign currency reserves. It actively intervenes by buying and selling its own currency in the foreign
exchange markets so that the currency will keep a certain value.
Fixed Exchange Rate: A system whereby central banks are required by international agreements to maintain their
currency at a relatively fixed value. This is achieved by buying the currency when it reaches its low point and by
selling when it reaches its high point.
Floating Exchange Rate: A system in which currencies have no specific par value; value is normally determined
by supply and demand. Central banks are not required to intervene, buy they often do to avoid wild fluctuations.
Spot Transaction(giao dịch ngay): Currency bought or sold today with delivery two business days later.
Forward Transaction(giao dịch kỳ hạn): To buy or sell a currency in the future, with payment and delivery at that
future date.
The difference in the price of a future or forward contract versus a spot contract takes into account the time value
of the payment, based on interest rates and the time to maturity. Hedging(phòng vệ giá)To offset a "buy" contract
with a "sell" contract and vice versa, matching the amounts and the time span exactly.
Speculation(đầu cơ): When dealers do not offset a "buy" contract with a "sell" contract. This means that their
position is left open.
Premium: The additional amount it will cost to buy or sell a currency at a given future date (relative to the spot or
today's price).
Discount: The lesser amount it will cost to buy or sell a currency at a given future date (relative to the spot or
today's price).
Arbitrage: The transfer of funds from one currency to another to benefit from currency differentials or disparities
in interest rates. In arbitraging, at least two markets are entered. Thêm: Arbitrage exists as a result of market
inefficiencies and it both exploits those inefficiencies and resolves them. (An inefficient market is one that does not
succeed in incorporating all available information into a true reflection of an asset's fair price.)
Arbitrage may take place when: - the same asset does not trade at the same price on all markets - two assets with
identical cash flows do not trade at the same price - an asset with a known price in the future does not today trade
at its future price discounted at the risk-free interest rate

1.Explain how the gold standard represented the beginning of a foreign exchange system.
→ Khái niệm gold standard
2. Under a floating exchange rate system, what normally determined the value of currencies? → Supply and
Demand determined the value of currencies.
3. Under what circumstances is an exchange rate system fixed? → Buying the currency when it reaches its low
point. Selling the currency when it reaches its high point.
4.Name a payment mechanism used in earlier times. What was it later replaced by? → Gold standared - after that
was replaced by Breton Wood Systems.
5. Briefly describe the importance of the gold standard. → Determining the value of all currencies based on
gold.
6. Under the gold standard, currencies were convertible into gold. This convertibility was abolished for most
currencies. Which currency remained convertible into gold until 1971? → United States dollars.
7. What is the system of fix exchange rates? Which conference agreed upon this system?
→ When central banks intenvene in the foreign exchange markets at the intervention points - Bretton Wood
Agreement
8. What does devaluation mean? Name the countries in the Western industrialized world that devalued their
currencies (phá giá)between 1967 and 1973?
 Devaluation means lowering the value of a currency interms of gold. Three countries are: England, France and
United States.
9. Name two countries that revalued their currencies(nâng giá) in the early 1970s. → West Germany and Holland
10. Are intervention points applicable in a system of floating exchange rates? Explain your answer.
→ No, because central banks were no longer required to support their own currencies, Supply and Demand
determined the value of currencies.
11. What is the snake? Why is it called the snack and which Common Market members are outside it? → Snake is
the system where a country can keep its fixed rate system but allow a widering of the intervention points to within
2.25% of the par value of the currencies.
12. Where and how does the foreign exchange market take place?
➜ It is not an actual marketplace but a system of telephone of telex communications between banks, customers
and middlemen.
13. What is the function of a foreign exchange broker?→ Acting for a client (customer) vis-a-vis the bank, brokers
often trade on behalf of banks or corporations
14. Name at least five active participants in the foreign exchange market.→ Tourists, investors, exporters,
importer, governments...
15. Briefly describe spot and forward transactions. Give an example of each.→ Spot transaction: a French father
transfer money to his son in New York. Forwarding: Japanese exports on Toyota cars to the US from the SC that
they will receive a specified US dollar amount in 6 months.
16.When does delivery of the foreign exchange take place in a spot transaction → 2 days later - a sufficient time
to consumate the transaction.
17. When does payment and delivery of foreign exchange take place in a forward transaction? At what point is
the exchange rate determinate?
→ Couples of month later - on the date of contract.
18. What causes an open position?
→ A forward contract.( Dealers, having concluded a forward contract, should always hedge with an offsetting
contract, so as not to leave the position open)
19.An open position is either long or short. Describe both types.
→ If they buy currency forward without selling forward at the same time, this position is known as long If they sell
a currency forward without buying forward at the same time, this is called short.
17. What is the difference between a bid and an offer. → A bid is the price dealers will pay to acquire pounds
(buying) while an offer is the price they will sell the pounds for (sell price).thường offer – (dealer bán – mua) > bid
(dealer thu mua – bán)
18. What is arbitrage? Is this usually a very profitable transaction for a bank? → khái niệm Arbitrage. No. Such
arbitraging makes sense only if transaction costs (cable, paperwork, etc.) are covered and a small profit if realized.
Opportunities to realize big profits do not exist in this type of arbitrage, since communication systems today make
the price, and therefore profit opportunities, available to everyone
19. Give an example of interest arbitrage. In which case is interest arbitrage not possible? → If Internet rates in
England are 2 % higher than in the US money market and a US investor would dowell to change USD into pounds
sterling at the English interest rate in present of foreign exchange regulation. Such transactions can only be realized
in the absence of foreign exchange regulations, such as capital transfer limitations, which are sometimes
imposed by governments

1. Bartering is based on the exchange of GOODS for goods.

2. The Bretton Woods Agreement stipulated that all members would express their currencies in GOLD.
3. When central banks intervene in the foreign exchange markets at the intervention points, this is called the
system of FIXED exchange rates. The opposite is called the system of FLOATING exchange rates.
4. If dealers buy currencies forward but do not sell forward simultaneously, their position is said to be LONG

UNIT 4:
Open account: Open account means the exporter ships the goods to the buyer and just waits till a fixed date as
agreed in their contract for payment from the buyer. Normally, the exporter only accepts open account method of
payment if he has known the buyer quite well and they have established a long-term and trustworthy business
relationship.
Documentary letter of credit: A document issued by a bank, whereby the bank replaces the buyer as the paying
party. The exporter is basing his risk of getting paid on the bank rather than on the importer. The bank will have to
be reimbursed by the importer.
Revocable letter of credit: A letter of credit that may be canceled at any moment without prior notice to the
beneficiary
Irrevocable letter of credit: A letter of credit that cannot be canceled nor amended without agreement of all parties
Deferred payment letter of credit: A letter of credit under which the documents are forwarded to the importer's
bank, while sight draft is presented at a latter future date
Red clause letter of credit: A letter of credit permitting the beneficiary to receive a sum prior to shipment
Transferable letter of credit: A letter of credit that can be utilized by someone designated by the original
beneficiary
Revolving letter of credit: A letter of credit calling for renewed credit to be made available when the issuing bank
informs the beneficiary that the buyer has reimbursed the issuing bank for the drafts already drawn
Back to back letter of credit: Two letter of credit with identical documentary requirements, except for the
difference in the price as shown by the invoice and draft.
Standby letter of credit: A letter of credit that can be drawn against, but only if another business transaction is not
performed.
Advised letter of credit: A letter of credit issued by a bank and forwarded to the beneficiary by a second bank in his
area. The second bank validates the signatures and attests to the legitimacy of the first bank.
Confirmed letter of credit: A letter of credit issued by one bank to which a second bank adds its commitment to
pay.
Usance draft (Time draft): A draft that has been drawn to be payable after a specific number of days.
Banker's acceptance: A usance draft drawn on a bank that stamp ACCEPTED across the face, thereby making it a
prime obligation of that bank to pay. It is used to finance specified short-term, self-liquidating transaction,
including foreign trade.
Bills for collection: A negotiation instrument, drawn by a company or individual, that is presented to the drawee
bank for payment.
Clean collection: A negotiable instrument presented for collection with no document attached.
Documentary collection: A collection item with title documents that accompany the draft. The documents are
released to the drawee, upon payment of the draft.
Advance payment: the payment method that the buyer agree to make payment of whole grand values or part of
values to the seller before sending the cargo.
1. Invoice: Lists of goods sold as a request for payment.
2. Clean collection: Payment by bill of exchange to which documents are not attached.
3. Documentary collection: Payment by bill of exchange to which commercial documents (and sometimes a
document of title) are attached.
4. Bill of exchange: Signed document that orders a person or organization to pay a fixed sum of money on demand
or on a specified date.
5. Bill of lading: Document that shows details of goods being transported; it entitles the receiver to collect the
goods on arrival.
6. Document of title: Document allowing someone to claim ownership of goods.
7. Issuing bank: Bank that issues a letter of credit (i.e. the importer's bank).
8. Collecting bank: Bank that receives payment of bills, etc. for their customer's account (i.e. the exporter's bank).
9. Confirming bank: Bank that confirms they will pay the exporter on evidence of shipment of goods.
10. Letter of credit: Method of financing overseas trade where payment is made by a bank in return for delivery of
commercial documents, provided that the terms and conditions of the contract are met
1. Promise or guarantee given to or by a bank = Undertaking
2. Load of goods sent to a customer = Consignment
3. Person or company that acts as a middleman in a transaction = Intermediary
4. Date when a bill of exchange is due for payment = Maturity
1. What are some of the risks involved in trading internationally?
→ They are: non-payment, late payment, late delivery, wrong documents ......
2. What payment methods do you know that are used when exporting or importing goods?
→ There are 4 methods: open account, documentary credit, documentary collection and advanced
payment.
3. What is the role of the banks in international trade?
→ They can either be active or be passive.

True (T) or false (F)

Open - Risk: delay payment. not pay at all. a long time to process payment in some countries.
1. The importer pays for the goods after receiving the documents. - T
2. There is no contract involved. - F
L/C - Risk: Exporters must comply with the conditions of the credit documents, take care to present the correct
documents..long time..
4. If a letter of credit is issued, the importer's bank agrees to pay for the goods without conditions. - F
5. If a letter of credit is confirmed, the exporter's bank takes responsibility for payment.- T
Collection - Risk: delay payment. may not pay at all. a long time.high bank charge
6. Commercials documents and the document of title are always enclosed with a bill of exchange. - F
7. Importers may not accept the bill of exchange until the goods arrive. - T
8. Exporters can keep control of goods by sending bills of lading through the banking system.- T
9. Exporters reduce risk if documents are released against acceptance of the bill rather than - F
AD - Risk: bank charge

Các bước L/C

1. The applicant (the buyer) completes a contract with the seller.
2. The buyer fills in a letter of credit application form and sends it to his or her bank for approval.
3. The issuing bank (the buyer's bank) approves the application and sends the letter of credit details to the seller's
bank (the advising bank).
4. The advising bank authenticates the letter of credit and sends the beneficiary (the seller) the details. The seller
examines the details of the letter of credit to make sure that he or she can meet all the conditions. If necessary, he
or she contacts the buyer and asks for amendments to be made.
5. When the seller (beneficiary) is satisfied with the conditions of the letter of credit, he or she ships the goods.
6. The seller presents the documents to his or her bankers (the advising bank). The advising bank examines these
documents against the details of the letter of credit and the International Chamber of Commerce rules.
7. If the documents are in order, the advising bank sends them to the issuing bank for payment or acceptance. If the
details are not correct, the advising bank tells the seller and waits for corrected documents or further instructions.
8. The issuing bank (the buyer's bank) examines the documents from the advising bank. If they are in order, the
bank releases the documents to the buyer, pays the money promised or agrees to pay it in the future, and advises
the buyer about the payment. (If the details are not correct, the issuing bank contacts the buyer for authorization to
pay or accept the documents.) The buyer collects the goods.
9. The issuing bank advises the advising (or confirming) bank that the payment has been made.
10. The advising/confirming bank pays the seller and notifies him or her that the payments has been made.

Điền từ
1. The first step the exporter takes is to ask his bank to draw a bill of exchange on the overseas buyer.
2. The exporter's bank forwards the bill of exchange, together with the commercial documents, to the importer's
bank.
3. At the same time, the exporter dispatches the goods.
4. The exporter must take care to present the correct documents to the bank.
5. When the importer accepts the bill of exchange, the bank will release the documents of title to the goods.
6. If the importer dishonours the bill, the exporter may have to find an alternative buyer or ship the goods back
again.
7. In some parts of the world, banks may be slow to remit payment to the exporter's bank.
 UNIT 5
Marketing: According to the social definition, marketing is societal process by which individuals or groups obtain
what they need and want through creating, offering, exchanging products and services of value freely with others.
Marketplace: The marketplace is physical, such as a store you shop in; marketspace is digital, as when you shop
on the Internet.
Market: Market is condition permits buyers and sellers work together.
Market research: Collecting, analysing and reporting data relevant to a specific market situation (proposed new
product)/ use a questionnaire to carry out a survey.
Needs, Wants, and Demands: Needs are the basic human requirements. People need air, food, water, clothing, and
shelter to survive. People also have strong needs for recreation, education, and entertainment. These needs become
wants when they are directed to specific objects that might satisfy the need. Demands are wants for specific
products backed by an ability to pay.
Market Segmentation: Dividing a market into instinct group of buyers who have different requirements or buying
habit
Brand: a name, symbol or design (or some combination) that identify a product
Trademark: a name or symbol that cannot be used by another producer
Value reflects the sum of the perceived tangible and intangible benefits and costs to customers. It's primarily a
combination of quality, service, and price ("qsp"), called the "customer value triad".
Satisfaction reflects a person's judgments of a product's perceived performance in relationship to expectations. If
the performance falls short of expectations, the customer is dissatisfied and disappointed. If it matches
expectations, the customer is satisfied. If it exceeds them, the customer is delighted.
Marketing Channels:
Communication channels deliver and receive messages from target buyers and include
newspapers,magazines,radio,television,mail,telephone,billboards, posters, fliers,CDS
Distribution channels(1) to display, sell, or deliver the physical products or service(s) to the buyer or user. They
include distributors, wholesalers, retailers, and agents. (2) All the companies or individuals involved in moving a
particular good or service from the producer to the consumer. Service channels to carry out transactions with
potential buyers, include warehouses, transportation companies, banks, and insurance companies that facilitate
transactions.
To launch a product: To introduce a new product onto the market.
Market opportunities: Possibilities of filling unsatisfied needs in sectors in which a company can profitably
produce goods or services.
Packaging: Wrappers and containers in which product are sold.
Point of sale: Places where goods are sold to the public - shops, stores, kiosks, market, stalls, etc.
Product concept: An idea for a new product, which is tested with target consumers before the actual product is
developed.
Product feature: Attributes or characteristics of a product: quality, price, reliability, etc. 10. Sales representative:
Someone who contacts existing and potential customers and tries to persuade them to buy goods or services.
PRODUCT - Optional features, after-sale service, line - filling, packaging, brand name, sizes, Optional features,
after-sale service, line - filling, packaging, brand name, sizes, characteristics, quality, guarantee, style.
PRICE - Inventory, credit terms, market penetrations, going – rate, list price, market skimming, payment period,
prestige pricing, cash discount, production costs, quantity discounts.
PROMOTION - Advertising, commercials, franchising, public relations, free sample, poster, publicity,
sponsorship, mailing, media plan, personal selling.
PLACE - Point of sales, transportation, rending machines, ware housing distribution channels, wholesaling.

1.Conversional marketing is the difficult task of reversing negative demand, eg. for dental work, or hiring disable
people.
 Find out why people dislike the product, and redesign it, lower prices, and use more positive promotion.
2. Stimulation marketing is necessary where there's no demand, which often happens with new products and
services.
 Connect the benefits of the product with people's needs and interests
3. Developmental marketing involves developing a product or service for which there is clearly a talent demand,
eg. a non-polluting and fuel-efficient car.
 Measure the size of the potential market and develop the goods and services that will satisfy it.
4. Remarketing involves revitalizing falling demand, in the face of competition or changing tastes.
 Find new target markets, change product features, develop more effective communication.
5. Synchro-marketinginvolves altering the times pattern of irregular demand, eg. for public transport between rush
hours, or for ski resorts in the summer.
 Alter the pattern of demand through flexib le pricing, promotion, and other incentives.
6. Maintenance marketing is a matter of retaining a current (may be full) level of demand, eg. for churches, inner
city areas, or ageing film stars.
 Keep up or improve quality and continually measure consumer satisfaction.
7. De-marketing is the attempt (by governments rather than private businesses) to reduce overfull demand,
permanently or temporarily, eg. for some roads and bridges during rush hours.  Raise prices, reduce promotion
and the level of service.
8. Counter-marketing is the attempt to destroy unwholesome demand for products that are considered undesirable,
eg. cigarettes, drugs, handguns, or extremist political parties.  Increase prices, reduce availability, make people
scared.
ĐIỀN TỪ
The classic product life cycle is Introduction, Growth, Maturity and Decline. In the Introduction stage the product
is promoted to create awareness. It has low sales and will still be making a loss. If the product has few competitors,
a skimming price strategy can be used (a high price for early adopterswhich is then gradually lowered). In the
Growth phase sales are rising rapidly and profits are high. However, competitors are attracted to the market with
similar offerings. The market is characterized by alliances, joint ventures and takeovers. Advertising budgets are
large and focus on building the brand.
In the Maturity phase sales growth slows and then stabilizes. Producers attempt to differentiate productsand brands
are key to this. Price wars and competition occur as the market reaches saturation. In the Decline phase there is a
downturn in the market. The product is starting to look old-fashioned or consumer tasteshave changed. There is
intense price-cutting and many products are withdrawn from the market.
UNIT 6:
REARRANGING

UNIT 7
UNIT 8:
UNIT 9:
UNIT 10