Question

1) Regarding the notion of customer Value. Give a personal example of a product or service that you purchased (or are considering purchasing) where you perceive high value. Justify why you perceive value to be high. Provide another example where you found the value to be low. Justify why.

2) Regarding how a company integrates multiple tools (e.g., advertising, personal selling, sales promotion, direct marketing, etc.) in promoting their product, service, or brand. Give a personal example of a marketing promotion effort that you experienced which integrated multiple tools.

Speak

Answer 1

1. A customer's notion of a product or service being high value or low value is decided by many determinants such as the scarcity of the product or the service, the taste and preference for the product, and ultimately the utility that a customer derives from consumption of the product or the service. The higher the value of a product, higher would be satisfaction or utility derived after consumption of the product.

Purchasing an expensive car is a high value product for most of the people as utility or the satisfaction derived from using the car is very high. This is the reason why we spend so much money for purchasing the car.

A low value product for a customer could be an item that he can purchase without worrying about its cost, and he doesn't derive very high utility from consumtion of such a product. For example, purchasing a burger on a normal day may be an example of a low value product.

2. Car manufacturer companies such as BMW, Mercedez Benz, etc,. are perfect examples of companies integrating multiple tools such as advertising, personal selling, sales promotion, direct marketing to sell their products. An integrated strategy of marketing where companies use various channels of advertising to promote their product is a strategy with all forms of advertising adopted for promoting products vigorously.