PRINCIPALS OF MARKETING

NAME
COURSE TITLE
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1. Acknowledgement
First and foremost, I would like to convey my gratitude to my Lecturers. They provided me
with invaluable advice and unwavering support. It was quite beneficial for me in completing
my assignment in the allotted time.

Also, I would want to convey my gratitude to College Name for providing me with the
opportunity to pursue this Course Title, as well as my sincere gratitude to College Name
Lecturers and Staff.

I thank my senior students for clearing up my doubts, as well as my parents for encouraging
me to study and engage in this study program in order to enhance my social and educational
status. Finally, I would like to convey my thankfulness to my friends for supporting me on this
assignment.

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Contents
1. Acknowledgement ............................................................................................................ 1

2. Section A – Essay Question .............................................................................................. 4

3. Section B – Short Essay Question ...................................................................................... 8

4. Section C......................................................................................................................... 12

5. References....................................................................................................................... 18

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Figures

Figure 1: Customer Obsession creates Customer Value……………………………………....5

Figure 2: Creating, Communicating, Delivering and Exchanging Customer Vale…………....6

Figure 3: Building Customer Relationships and Capturing Value for the Organization……...7

Figure 4: Product Life Cycle…………………………………………………………………..8

Figure 5: Strategies – Introduction Stage……………………………………………………..10

Figure 6: The Marketing Mix – 4Ps…………………………………………………………..12

Figure 7: The Core Concepts in Marketing…………………………………………………..12

Figure 8: Key Marketing Philosophies……………………………………………………….14

Figure 9: Key Pillars of Societal Marketing Philosophy……………………………………..15

Figure 10: Micro Environmental Actors………….………..………....………………………16

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2. Section A – Essay Question

(a) What customer value is?

Customer Value is a customer's judgment of how much a merchandise or a service is worth in

comparison to other available substitutes. Worth refers to whether the customer be certain of
he received greater benefits and service for what he paid for (Lax & Mau, 2013).

Customer Value (CV) = Benefits (B) – Cost (C)

The price here is not just the price consumer pays in terms of cash, cheque, interest, payment
while in use such as gas and vehicle maintenance. But also non-monetary means such as
his time, effort, energy and discomfort.

(b) How marketing creates, delivers and communicates customer value?

Customer value enhances happiness and satisfaction level of a customer and

improves customer experience. A positive customer experience on the other hand, adds value
to a customer. Customer value creation enhances loyalty, market share, price, reduces waste
and enhances efficiency. Profits rise as market portion grows and efficiency increases. That is
why every business invests and strives to build a consumer value.

The concentration on processes and methods as well as attitudes and culture, both contribute
to the creation of value. It is considerably more difficult to adapt and replicate one's mindset
and culture. It is much easier to imitate designs than it is to change people's minds and cultures.
Therefore, mindset and culture are essential for long-term success. These, along with
processes, result in a fantastic experience and value (Estrella-Ramón, Sánchez-Pérez, Swinnen,
& VanHoof, 2013).

With the use of a product or during the customer journey, there may be a shift
in customer value. Usually, value is seen in purchasing intent of a customer, the searching
for the particular product, the purchase decision or purchasing, the investment in the product,
the use of it and even the re-sale intentions at all times. Sometimes this is stated as the "Demand
Waterfall." So, during the consumer journey, their needs and value shift.

To generate customer value, marketers should first grasp the concept of customer value, what
a customer considers valuable, how a customer's value requirements evolve over time and how

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to obtain customer reviews. We must understand that individuals prefer to acquire a product or
service that adds the most value to their lives over competing alternatives.

Customer Value

Improved Increased customer

Customer happiness and
Satisfaction. morale.

Making it convinient for The image, brand

the customer to go and and trust towards
buy. the company.

Offering something Making the customer

extra over rivals. feels being valued.

Giving the price making

a customer believes Getting a proper
receiving more than he price justification.
pays for.
Customer Obsession

Figure 1: Customer Obsession creates Customer Value

Marketing consists of four activities concentrated on creating Consumer Value: Value

Creation, Communication, Delivery and Exchange. Once, the customer value is created,
marketers are supposed to communicate and deliver it to the clientele. The way of
communicating and delivering will have an impact on the overall activities. Because if our
communication and delivering methods are poor, the value we have created will not be
delivered properly. This is why creating customer value, communicating about the value
offering, delivering it to clientele and finally, exchanging value: for customers it is the valuable

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product offering and for the company it is the price which gives market share and profitability
is important.

Figure 2: Creating, Communicating, Delivering and Exchanging Customer Vale

Sometimes communication entails informing potential clients about the benefits of an

offering and other instances it simply entails informing clients where they could find a product.
The company may use several techniques such as asking a series of questions, give away
samples or other activities in order for the company to receive feedback. Companies today are
discovering that in order to thrive, they must engage in a more dynamic communication with
their clientele. On the other hand, customers get an opportunity to tell the company how they
feel when they communicate. Organizations employ a variety of communication methods
including online and television marketing, billboards and publications, product endorsements
in movies and salespeople engaging in special events.

Marketing must not only promise but actually deliver the value. Delivering a valuable offering
entails more than simply giving the product into the hands of a customer. It also entails ensuring
that the consumer understands how to get the most out of it. A company's supply chain plays a
vital role in delivering value. The supply chain is made up of various functions that harvest,

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produce, assemble and transfer resources and deliver products from the manufacturer to
customers via wholesalers, retailers, logistics and transportation.

(c) How marketing builds customer relationship and captures value for the organization?

The process by which organizations provide value for customers and establish solid customer
relationships are interconnected in order to obtain value from customers. Marketing, in its
broadest sense, is a social and management process through which organizations achieve what
they need by generating and exchanging value with customers.

Building consumer relationships and catching value for the organization involves several stages
(Yoo, 2017).

Building Customer Relationships and Capturing Value for the Organization

1) Understanding the Marketplace & Customer Needs.

2} Designing a Customer-driven Marketing Strategy.

3) Prepare a Marketing Plan and Program that is Integrated.

4) Customer Relationship Management.

5) Capturing Value from Customers

Figure 3: Building Customer Relationships and Capturing Value for the Organization

Likewise, creating excellent client value and happiness is the key to forming long-term
customer relationships. Marketers can deploy specific marketing strategies to strengthen
consumer bonds. Many businesses have frequent marketing programs that encourage
customers who purchase regularly or in large quantities while some businesses support club
marketing programs that provide members with exclusive benefits and build community
among members. Ex: Apple encourages users form local Apple user clubs (Kotler, 2017).

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3. Section B – Short Essay Question

(a) Draw the Product Life Cycle.

Figure 4: Product Life Cycle

The span of time between when a product is launched to the market and when it is dropped out
from the shelves is depicted by Product Life Cycle. A product's life cycle has four stages:
Introduction, Growth, Maturity and Decline.

(b) Describe each of the four stages of in the Product Life Cycle in detail.

The product life cycle is divided into four diverse stages, each with its own set of elements that
have varied implications for organizations trying to manage the life cycle of their specific
products (Norris, 2006).

Introduction Stage - Because introducing a new product is not a simple initiative, this stage of
the cycle could be the priciest for an organization. However, the costs of things such as research
and development, user analysis and the marketing required to inaugurate a product can be very
expensive specially if it is in an economical industry.

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Growth Stage - The growth stage is often marked by rapid increases in sales and incomes and
therefore the company can begin to enjoy economies of scale in production, profit margins as
well as net income will rise. This allows businesses to spend more money on advertising
activities in order to comprehend the opportunities of this stage of growth (Bhander, Hauschild,
& McAloone, 2003).

Maturity Stage - During the maturity stage the company's focus now is to retain the market
segment they have gained so far. For most times, this is the most expensive and hectic time
period and of course, firms should invest intelligently in any marketing initiative they plan
to do. They must also examine any product deviations or upgrades to the manufacturing process
that could provide them a competitive advantage. Such as new features and so on.

Decline Stage - As human beings also grow gray hair and aged, a product also experiences the
same. The market for a product will inevitably begin to collapse, which is known as the decline
stage. This decrease could be the result of the market becoming overcrowded or flooded or
may be any other reason such as all of the customers who will buy the particular product have
by now bought so or customers shift and give their preference to a different sort of product.

(c) Describe the marketing strategies for each stage in relation to Price, Promotion and
Distribution.

Every year, we buy thousands of products as consumers. These products, like humans,
also have a life cycle. When they grow older, products gradually lose favor in customer's
mindset whereas demand for newer and current products typically rises quickly once they are
introduced (MATSUNO, 2008).

Introduction Stage

At first, we should aim to target the product or service to a particular type of customer. Because
being picky can increase demand and grab attention at the initial level. Meanwhile, we can
consider below strategies at this level.

 Develop a unique brand identity.

 Find the ideal associates to help promoting the product.
 Set up consumer quizzes or send out samples or demonstrations to important target
markets.
 Pricing product or service as much as we think we can get away with it while still
matching the degree of service proposing.

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Skimming

Introducing the Introducing the

product at a product at a
high price and high price with
with a bunch of little to no
promotion promotion
Rapid

Slow
Introducing the
Introducing the
product at a low
product at a
price and with a
low price with
bunch of
little marketing
promotion

Penetration

Figure 5: Strategies – Introduction Stage

Growth Stage

The prime goal of marketing techniques utilized in the growth stage is to enhance profits.

 Increasing the quality of the product by introducing new features or support services to
expand the market share and enter new market sections.
 Maintaining as high a price as is realistic in order to maintain high demand and
profitability.
 Increasing distribution networks to meet rising demand.
 Changing marketing memos from product awareness to product preferences.

Maturity Stage

Common Techniques that can aid during this stage can be classified into two groups.

 Market Modification - Redefining target audiences, winning over competitors'

customers and altering non-users to users.
 Product Modification - Modifying or upgrading the contents, quality and pricing of
the product while make it unique from other items in the market.

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Decline Stage

If we wish to save money, we will have to decide what techniques to use at this stage.

 Lesser the investment on product promotion.

 Minimize the number of outlets.
 Price cut offs to encourage customers to buy the product.
 Approach a new use for the product.

Or else, in the worst case,

 Get rid of all the inventory at a greatly reduced price.

 Sell the brand to another business.

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4. Section C

(a) What is Marketing? Use the concept of marketing to illustrate your understanding of
marketing.

All of a company's activities aimed at promoting and selling products or services to customers
are stated to as marketing. The "Marketing Mix," generally known as the 4Ps: Product, Price,
Place and Promotion is used to accomplish this effort (Kotler, 2017).

Figure 6: The Marketing Mix – 4Ps

The core concepts of marketing provide the foundation to entire marketing process (Roering &
Seibert, 1973).

Figure 7: The Core Concepts in Marketing

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1) Needs - Marketing aims to meet the needs of customers. It is the mental condition that
represents the sense of scarcity and unrest. The existence of unmet demands is a foundation for
marketing.

2) Wants - The availability of superior options determines the maximum satisfaction of a

consumer's need. Wants are the alternatives for fulfilling a certain need. Marketers are able to
control and sway wants but not needs. That is why they focus on generating and fulfilling
wants.

3) Demand - Not all wants are conveyed in the form of a demand. Demand is defined as a want
for specific things backed by the capacity, willingness, and ready to purchase them. Such
wants, if backed up by the ability and willingness to buy, can become demand. The marketer
seeks to sway demand by making the product pleasant, affordable and accessible. As a result,
it is also known as demand management.

4) Market Offering / Product - Marketers can use their market offerings to win the hearts and
minds of their target customers. It can be typically understood as everything that can be
provided to someone in order to fulfill a need or want.

5) Vale and Satisfaction - Every product has a different level of value. The consumer's
estimation of the product's entire capacity to meet his or her demands is called value.
Satisfaction is defined as the satisfaction of one's wants. When a buyer believes that a product
is worth more than the price paid for, then he or she will be satisfied. The greater the value is,
the greater the satisfaction will.

6) Exchange - The act of acquiring a desired product from someone in exchange for something
in return is known as an exchange. Only when people wish to satisfy their needs and wants
through exchange does marketing arises. Marketing centers on exchange (Grandinetti, 2020).

7) Relationships - A intelligent marketer works to develop long-term trusting and "win-win"

relationships with valued consumers, partners and vendors. With the time, a strong network of
relationships with important stakeholders leads to improved marketing results.

8) Market - A market is comprised of all potential customers who share a common need or
want and are willing and able to exchange products or services in order to meet that need or
want (Pulido Polo, 2018).

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(b) Describe five alternative marketing philosophies. Describe how marketing era differs
from prior years oriented to production and selling.

Businesses utilize marketing concepts known as marketing management philosophies to guide

their marketing operations.

Figure 8: Key Marketing Philosophies

1) Production Philosophy

It says that consumers prefer products that are easy to access and highly reasonably
priced. This is one of the most ancient marketing philosophies for marketers. Reduced
production costs aid in the firm which in turn aids in the expansion of the market. As a result,
a company can attempt to establish a dominant position in the market where it exists. In modern
era, this philosophy is also being used in service organizations such as hospitals. However, it
is debatable that the firm's service will suffer greatly as a result.

2) Product Philosophy

It says that consumers will prefer products with top quality, performance and unique features
in it. As a result, marketing efforts are centered on continuously improving the product. Many
marketers still believe this philosophy and it has such control over some that they have
forgotten that the market is heading in a different direction. This approach has very little space
for marketing.

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3) Selling Philosophy

It claims that unless the company engages in a massive selling and advertising effort, people
will not buy any of its products. In many businesses, the selling philosophy still stands strong.
This concept is most commonly employed when a company has excess capacity and wants to
sell what it produces.

4) Marketing Philosophy

This states that achieving organizational goals requires considerate of target market needs and
wants, as well as offering needed satisfactions better than rivals. All the firm's activities in
production, engineering, finance and as well as marketing, should first determine what
customers want and then satisfy those demands while still producing a respectable profit.

5) Societal Marketing Philosophy

It says marketing tactics should give value to customers in a way that preserves or enhances
both the consumer's and social conditioning and well-being (Karande, Rao, & Singhapakdi,
2002).

Figure 9: Key Pillars of Societal Marketing Philosophy

While huge corporations occasionally develop socially beneficial programs or products, it is

rare to find a corporation that is completely socially dedicated nowadays even though it is a
trend now.

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(c) Describe any five actors in micro environment, explaining how each of them impacts
on organization’s marketing activities with examples.

There are numerous aspects to consider while doing marketing efforts for a company and micro
environmental actors play a critical role.

Figure 10: Micro Environmental Actors

1) The Company - In order to construct marketing tactics, marketing management should

consider numerous groups inside a company such as top administration, finance, operations,
human resources, research and development, accounting and so on.

2) Suppliers - Suppliers are a crucial component of a company's total customer value delivery
network. They are the ones who give raw materials, tools and equipment to companies.

3) Customers - Customers are the most trivial players in the company's microenvironment.
Because the entire value delivery network attempts to interact and build positive relationships
with them.

4) Competitors - Competitors are opponents whom we have to compete in the market with. A
company should deliver higher consumer value and satisfaction than its rivals.

5) General Public - The term "Public" refers to the number of people who have an existing or
perceived interest in a company's product or who have the ability to pressure the firm's capacity
to achieve its goal (Coulter, Lei, & Jenkins, 2007).

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The company’s capabilities and resources directly influence its capacity to take marketing
related decisions while suppliers also play a huge role in it. Because, any supply deficiencies
or interruptions caused by natural disasters or other happenings might harm sales in the short
term and lead to consumer disloyalty in the long term. Since all we do is to satisfy our
customers, they are the core of marketing initiatives. Meanwhile, competitors play a vital role
in it as they are the ones whom we need to go ahead of. General public also influence in a
company because they can even ban a product which gives bad marketing output to the
community if they stand strong and start protesting.

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5. References
Bhander, G., Hauschild, M., & McAloone, T. (2003). Implementing life cycle assessment in
product development. Environmental Progress, 255-267.

Coulter, J., Lei, S., & Jenkins, S. (2007). Environment as the Stage for Economic Actors.
Chinese Journal of Population Resources and Environment, 3-8.

Estrella-Ramón, A., Sánchez-Pérez, M., Swinnen, G., & VanHoof, K. (2013). A marketing
view of the customer value: Customer lifetime value and customer equity. South
African Journal of Business Management, 47-64.

Grandinetti, R. (2020). How artificial intelligence can change the core of marketing theory.
Innovative Marketing, 91-103.

Karande, K., Rao, C., & Singhapakdi, A. (2002). Moral philosophies of marketing managers.
European Journal of Marketing, 768-791.

Kotler, P. (2017). Customer Value Management. Journal of Creating Value, 170-172.

Lax, A., & Mau, N. (2013). Customer Value and Value for Customer – Retail Sector’s Need
for Transformation. Journal of Marketing Research and Case Studies, 1-12.

MATSUNO, Y. (2008). Theories and Methodologies for Supporting Life Cycle

Assessment―Part 1. Journal of Life Cycle Assessment, Japan, 165-168.

Norris, G. (2006). Social Impacts in Product Life Cycles - Towards Life Cycle Attribute
Assessment. The International Journal of Life Cycle Assessment, 97-104.

Pulido Polo, M. (2018). Acts or events? A perspective from the marketing mix. IROCAMM-
International Review Of Communication And Marketing Mix, 56-66.

Roering, K., & Seibert, J. (1973). Concepts of Marketing Management. Journal of Marketing,
119.

Yoo, Y. (2017). The Impact of Customer Value on Customer Satisfaction and Customer
Loyalty in Hotel Firms. Tourism Research, 141-158.

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