Hossine's BUMKT5901 Individual

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CRICOS Provider No. 00103D School of Business

School of Business

Assignment Cover Sheet

STUDENT INFORMATION

STUDENT NO. MBA/P/10/03/0040 SURNAME Abdellah

PHONE NO.0172048155

Instructions for submission are found in the unit description. Assignments with Cover Sheets not signed at thebottom will be returned unmarked and may then incur a penalty for late submission.

ASSESSMENT INFORMATION

UNIT NAME Marketing UNIT CODE BUMKT5901

ASSIGNMENTDETAILS (title)

Individual Assignment

LECTURER /TUTORS NAME

Ms. Christine EiswaryCampus /Provider

UNITY COLLEGE INTERNATIONAL, MALAYSIA

DUE DATE 3rd May 2010SUBMITTEDON

PLAGIARISMThe School of Business and the University regards as a very serious matter the action of a student who acts dishonestly orimproperly, including plagiarism or cheating, in connection with his or her academic work. Under University Regulation 6.1.1Plagiarism is defined as the presentation of the works of another person / other persons as though they are one's own byfailing to properly acknowledge that person / those persons. Plagiarism may take many forms including: direct copying of sentences, paragraphs or other extracts from someone elses published work (including on the Internet

and in software) without acknowledging the source;

paraphrasing someone elses words without acknowledging the source;

using facts, information, ideas, concepts or diagrams derived from a source without acknowledging them;

producing assignments which should be the students own independent work, in unauthorised collaboration with and/orusing the work of other people (e.g. a student or tutor, or working in pairs or groups and producing similar assignments onindividual assessment tasks

not referencing accurately (e.g. not citing correctly the work you have actually read)OTHER UNACCEPTABLE BEHAVIOUR

stealing and later using other students' work (e.g. taking discs, picking up other's marked assignments)

recycling your own work / assignments or double dipping (e.g. re-submitting whole or significant parts of assignmentsacross units, across years or across courses)

Assisting plagiarism - which may involve a student lending work (or by posting it on the Internet for sale) which is intendedfor submission for assessment, or which has already been submitted, so that it can be copied in part or whole and handedin by another student as that students own work.Students are warned against making assignments etc. available to others, as they then could be regarded as a contributorto plagiarism and may be penalised as if they themselves had committed an act of plagiarism.

Students are expected to be proficient with referencing and must always acknowledge any sources for work that is not their

own. Inadequate referencing of cited materials is considered to be plagiarism. Details of referencing can be found on thefollowing University web address: http://www.ballarat.edu.au/aasp/is/library/research/citation/orhttp://www.ballarat.edu.au/ard/learningandteaching/internal/Avoiding_Plagiarism_Guidelines_for_Students.docStudents StatementI have read and understood the information provided on this assignment cover sheet relating to plagiarism and otherunacceptable behavior and therefore declare that the attached work is entirely my own, except where work quoted is dulyacknowledged in the text, and that this work has not been submitted for assessment in any other unit or course.

Signature Date 03/05/10

C
http://www.ballarat.edu.au/aasp/is/library/research/citation/http://www.ballarat.edu.au/aasp/is/library/research/citation/http://www.ballarat.edu.au/aasp/is/library/research/citation/


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1. The Concept of Value Marketing

Copy the Diagram, on the top of page 6 in 8 e Kotler.

Figure 1: Model of Value Creation and Marketing Process (Source: Kotler, 2009)

For each concept (that is, each box), provide a few lines of explanation what do these terms

mean.

Understanding the marketplace and customer needs and wants involves understanding the

marketplace, which is the a group of definite and potential buyers; needs which are when an

individual feel a deprivation for something necessary for him to live; wants, which are those needs

shaped by culture and background. Need are divided to basic physical needs like food and shelter;

social needs like belonging; and individual needs like self-expression. Designing a marketing

strategy is the plan of selecting target market and creating a profitable relationship with that market.

It usually involves creating, delivering and communicating customer value to find, attract, retain and

grow target customers.

Constructing an integrated marketing mix that delivers superior value involves developing a

marketing mix of product, promotion, price, and place to deliver intended customer value. Building

profitable customer relationships happens when companies put efforts to retain their existing

customers because the cost of attracting new customers is rising. As a result of the previous steps,

Capturing value from customers to create profit and customer loyalty occurs. Thats where the

company receive value from customers in the form of loyal customer who continuously by from the

company and long-term profit (Figure 1).


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Whyin your viewis valuethat is, the concept of valueso important.

The concept of value is important because the modern market is highly competitive and

customers have the choice of many similar product providers. Relying only on sales wouldnt ensure

the long-term profitable relationship with the customer. However, creating and communicating value

based on understanding customers needs and wants can ensure retention and therefore profitable long

term relationship.For example, if Nokia provide customers cell-phones with only basic features, customers will

look for more value of money and switch to Sony-Ericsson that provide cell-phone with basic

features as well as an added value of music player features. Realizing the missing value of music

player features, Nokia now offers XpressMusic - a complete range of cell-phones with music player

features.

2. Customer Value and Associated Core Concepts

Whats customer value and give an example.

Customer value is the difference between what the customer gains from owning and using a

product compared to the cost of obtaining that product. When it comes to buying decision, price is an

important factor, and the customer will evaluate the benefits of buying a particular product.

Nevertheless, the customer will base their decision on the perceived value of a specific product which

is very subjective.

For example, whats the value of owning a bag designed by Louis Vuitton or one designed by

Guess? They are both fine quality bags, both renowned brands but Lous Vuitton bags cost, at least,

double the price. The difference is that Louis Vuittons bag gives higher status and image level to the

customer, so much so that the customer might be willing to pay a premium price. Fundamentally,

consumers base their buying decisions on how they value productcustomer value (Kotler, 2009)


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Whats the concept of value exchange and give an example.

Exchange happens when a party obtains a desired object from another party by providing

something ofvalue in return. Other than the conditions that each party has a choice of accepting or

rejecting the offer and each party must be able to communicate and deliver, its important that parties

exchange something of value to each other. By exchanging something of value to each other, a

profitable long term exchange will take place other than a short term transaction.For example, the Australian surfing wears company Quicksliver offers a range of clothes and

accessories for people who follow a surfing lifestyle. Their surfing shorts are of high value to their

target customers because they are of fine quality and of stylish design in the same time. Therefore,

when Quicksilver provides their stylish and quality surfing shorts, customers are satisfied with the

value they are getting and that in turn creates a long term value exchange with its customers (Image

2.1).

Image 2.1: Quicksilver Ad (Source: Surfshot Magazine, 2010)


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What is a market and give an example.

Market is a group of all the definite and possible buyers of a particular product or service (Kotler,

2009), (Figure 2.1). Customers of particular market typically share common needs, wants and other

characteristics. Usually, not only one company tries to serve a particular market needs and wants but

a number of other companies will be working to fulfill the same market needs and wants by

providing the same product or servicecompetitors (Figure 2.2).

Figure 2.1: The Simple Marketing System (Source: UOB, 2010)

For example, one of active markets in Australia is the surfing and beach wear market. Australia is

a country known by its beautiful beaches and high waves thats suitable for surfing and there is a big

number of Australians who loves surfing and beach life and share common needs and wants. These

people are actual or potential buyers of surfing and beach wears and are served by local brands like

Quicksilver and Billabong.

Figure 2.2: The Marketing System (Source: Kotler, 2009)


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What does the term value proposition mean and give an example.

When marketers create a marketing strategy they go through two common processes, selecting

the customer to serve, and choosing a value proposition that communicate value to the customer and

differentiate the product from competitors. Therefore, value proposition is the group of all the values

and promises offered to customers to satisfy their needs and wants. The value proposition will be

communicated throughout all the products marketing efforts such as advertising.For example, the value proposition of Qantas Airlines the official airline of Australia is to

offer its customers a wide range of destinations around the region of Australia and New Zealand. As a

matter of fact, their marketing efforts theme is mainly about the Australian destinations and the

Australian hospitality. Their advertising efforts communicate this value proposition and includes its

tagline; Qantas The Spirit of Australia or Youll see more of Australia with Qantas (Image 2.2).

Image 2.2: Qantas Ad (Source: Business Traveler, 2010)


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3. Linking Value to the 4 Ps

What are the four Ps of marketing and give an example of how each can be used in marketing

The four Ps are the components of the Marketing mix and they are plans and programs of

Product, Price, Promotion, and Place that are put in place to deliver the value proposition of a product

or service (Figure 3.1). They work as tools to transfer the marketing strategy to measurable actions to

build customer relationship. Product is an offer created by the company to satisfy a certain market

need and want. For example, product used in marketing in a way that is to be improved to contain to

fulfill customers needs. Price, on the other hand, is how much the marketers decide to charge for

that offering. Its used to marketing in a way that entice people to buy as some marketers price prices

with AUD$9.99 because psychologically its more attractive than two digit price of AUD$10.00.

Promotion is the activity the company carry out to communicate the offers value proposition to

the target customer. For example companies usually offer end of the year discounts to entice

customers to buy their products. Lastly, Place is the efforts put by marketers to make that offering

accessible to target customers through distribution. For example, some brands offer their products

through delivery, and some others offer it through outlets.

Figure 3.1: The Marketing Mix


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Study the diagram on page 16 and discuss in general terms how each of the 4 Ps used by the

company to add value to a product or service. Give two examples of about two paragraphs each.

Figure

3.2: Linking the 4 Ps Marketing Mix to Value (Source: Kotler, 2009)

New Zealand Natural Low Fat Yogurt Ice Cream

New Zealand Ice Cream constantly develops and improves its Low Fat Yogurt Ice Cream to

satisfy the health-cautious women that like ice cream but they avoid them because it gains them

weight. The Low Fat Yogurt Ice Cream is healthy, low in fats, premium ice cream made of fresh

ingredients offered in a range of flavors and packaged in attractive packaging reflecting its origin. It

could be served in cones, cups, or with waffle. Its offered for AUD$3 per scoop. The price is

considered affordable by middle-income class.

Promotion can add value to the product or service by communicating the value proposition to the

target customer and educating them on what they can gain by acquiring the product. In their

advertisement and promotions, New Zealand Natural use a number of pictures demonstrating people

with slim healthy body enjoying their premium ice cream. To communicate the value proposition

father, they have put in place vivid banners and billboards around shopping malls reflecting its taste

and how health it's (Appendix 1). The outlets can be found in all the major malls in the major cities in

Australia like Sydney, Perth, and Melbourne.


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JetStar Low Cost Airline

JetStar Airlines constantly develops and improves its Low Cost flights routes to serve many cities

around Australia and New Zealand. Their low-cost flights satisfy the price-cautious traveles that need

to travel but tries to save in the same time because traveling can be costly with full-frill carriers.

JetStar offers low cost flight from Auckland to Sydney for about AUD$ 700. The price is considered

affordable by most Australians.The Airlines chooses to communicate its offerings of Christmas discounted flights around

Australia via online display ads on Pay-per-Click bases and drive traffic to their website. Or get one

way and get the return way free (Appendix 2). The ads always emphasize on and highlight the cheap

fares. When it comes to distribution JetStar chooses to offer its cheap regional flights only through

their website and very few sales offices in airports to save cost.


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Reference List:

Kotler, P, 2009,Marketing, 8th Ed, Prentice Hall, Australia

Anon, Surf Report, 2010, Surfshot Magazine, viewed 20 April 2010,

.

Anon, Index Page of the Magazine, 2010, Business Traveler Magazine, viewed 22 April

2010,

.
http://www.surfshot.com/Online+Exclusive/SACRED+CRAFT+in+VENTURA+Photos+and+Article+by+Paul+Tralka-183464.htmlhttp://www.surfshot.com/Online+Exclusive/SACRED+CRAFT+in+VENTURA+Photos+and+Article+by+Paul+Tralka-183464.htmlhttp://www.businesstraveler.com/indexlhttp://www.businesstraveler.com/indexlhttp://www.surfshot.com/Online+Exclusive/SACRED+CRAFT+in+VENTURA+Photos+and+Article+by+Paul+Tralka-183464.htmlhttp://www.surfshot.com/Online+Exclusive/SACRED+CRAFT+in+VENTURA+Photos+and+Article+by+Paul+Tralka-183464.html


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Appendix 1


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Appendix 2

JetStar Website

JetStar Promotions

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