Intro
Marketing takes place all around us, from the Levi’s jeans we wear on a casual Friday to the Sony screen advertising the latest Hungry Jacks’ combo meal you see while driving your German-made Mercedes down to work. According to Grönroos, he stated that marketing in short was, “Delivering superior value to customers is an ongoing concern of management in many business markets today, and the value concept is considered one of the most popular constructs among business managers and academia” (Grönroos, 1997). The objective of this paper is to understand marketing as a business philosophy, as well as customer value and the link between these two elements. The business, Village “Gold Class” Cinemas will be used to elaborate these concepts.
Marketing as a business philosophy
In recent years, the concept of marketing has been debated and evaluated since it was recognised as a distinctive discipline and domain. Kotler defined marketing as the process of organizing, analysing, controlling and planning a business’s customer impinging assets, guidelines and activities with a view of fulfilling the needs and wants of specific customer groups at a profit (Kotler, 1967), whereas the American Marketing association described marketing as the activity, set of institutions, and process for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large (AMA 2013). An example of how the above concept is exemplified is how Village “Gold Class” Cinemas offer an array of services such as wide screen cinemas, luxurious chairs and a full service bar lounge accompanied with gourmet dishes and a personal waiter service during screening. In return, customers will have to pay a premium...
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...(2014). THE MARKETING CONCEPT. [online] Retrieved from: http://jan.ucc.nau.edu/rgm/ha400/class/professional/concept/Article-Mkt-Con.html [Accessed: 3 Apr 2014].
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1. Customer Perceived Value (CPV) is essentially a consumer's evaluation of total benefits less total costs of a product or service compared against a perceived alternative (Kotler & Keller, 2012). There are a few ways for a company to take to improve CPV on a specific product. First, it may focus on expanding total customer's benefit by improving its product’s image. It may also invest into functional characteristics of the product as well as provide a better and more personalized service. Second, a firm may choose to reduce the time, energy and psychological costs bared by the consumer. Arguably one of the best received approaches would be a monetary costs' reduction technique (lower prices).
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Marketing is a core pillar of an organization and contribute significantly in its prosperity through attaining the laid down targets as well as scope of development. The position of an organization is hugely based on its competitiveness and capacity to capture a significant portion of the market in relation to the prevailing needs of consumers. Interaction of the organization with the consumers and the potential consumer in the market arena is attained through the marketing wing of the organization (Ferrell& Hartline, 2012). The preferences of the consumer and avenues of satisfaction are aligned to the established marketing frameworks. However, the success of organization marketing is highly inclined to the marketing strategies formulated and adapted towards coping with competition and eventually enhancing firm competitiveness.
It discusses broadening the concept of marketing and new approach to marketing, which emphasises on social and relationship marketing. Then, the government/public sector has been introduced and it proceeds with whether traditional marketing principles can be applied to the marketing of organisations in this sector. It concentrates on issues of relevance-how marketing mix fits to it, what are the benefits and constraints. 1.1 The Marketing Concept and the Marketing Mix: Before proceeding further, it is essential to define what marketing is: Kotler (1991) defines marketing as “a social and managerial process by which individuals and groups obtain what they want and need through creating, offering, and exchanging products of value with others.
Marketing is very important to the success of a business. Before people can buy a product or service they have to know about it. However, marketing entails more than just letting people know what your company has to offer. Throughout this paper, I will define marketing, offering my personal definition as well as more formal definitions from other sources. Furthermore, I will explain to the reader the importance of marketing to organizational success giving real world examples in support of this explanation. The field of marketing can include many things. I believe, however, the most important thing which it should include is communication with customers as to the value and benefits of using that particular company's products and services. It should help to establish the business's niche in the industry and distinguish it from other such businesses.
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Many scholars believe that customer satisfaction has a crucial role in the success of a business, and is pivotal in increasing the overall profitability of the business (Kotier, 1991). Customer value is gained through the experience they receive from the goods or purchases they have obtained from a certain business. Customer value has various definitions and concepts, Holbrook (1999) stated that it is a kind of “interactive, mutual, and preferred experience”; but simply said, “the term customer value has many meanings.”
...chase the product again, and are also inclined to say good things about the brand to others; the opposite applies to customers who are dissatisfied with the products. Value also affects post purchase behaviour, as research shows that 56 percent of Irish consumers agree, that if they purchase something that was not on sale, they feel like they have overpaid (Board Bia, 2012).
Marketing is a very broad term, which encompasses all the activities that help businesses in identifying their customers and needs of their target market, utilising all the communication resources in order to target their target market, eventually persuading them to purchase the organisations products and services. It is much broader than the concept of selling, as selling just includes techniques of direct communication used to persuade the customers to buy the products and services of an organisation. In fact, sales are the integral part of marketing. Marketing also helps organisations to utilise all resources in an efficient way to gain customer satisfaction, which will eventually help in the growth of the company. While, on one hand, marketers tend to focus on the needs and preferences of the customers, they also need to keep a close eye on their competitors (Gillespie, 2010). Companies always look to beat down their competition with providing better products and/or services, or by providing less-expensive goods to the customers than their competitors, in order to achieve or maintain the leading position in the industry. The core focus of this paper is to identify and discuss the core aspects how managers could maintain the marketing activities of the organisation in the global context.
Petty Ross D. Editor's Introduction: The What and Why of Marketing; American Business Journal, Vol. 36, 1999
Customer value is a customer’s perceived preference for an assessment of those products, attributes, characteristics, performance and outcome emerging from utilize, that encourages (or block), accomplishing the customers goal and objective in use situations. Woodruff (1997)
Every consumer has a unique way of measuring benefits versus costs and will sometimes pay for higher quality items and other times buy the low costs items, depending on which has the highest value to them.