BTEC L4 HND Marketing Essentials: Ethical Philosophies and Impact

This report provides a comprehensive analysis of ethical philosophies and their impact on business within the context of marketing essentials. It delves into the marketing mix, particularly the 7Ps (Product, Price, Place, Promotion, People, Processes, and Physical Evidence), and examines how organizations utilize these elements to achieve their business objectives. The report includes detailed explanations of product levels (core customer value, actual product, and augmented product), product classifications (convenience, shopping, specialty, and unsought products), and the characteristics of services (perishability, heterogeneity, intangibility, and ownership). Furthermore, it explores various pricing strategies, such as skimming, matching, surrounding, undercutting, and penetration, along with different payment methods and product mix pricing strategies. The report aims to provide a thorough understanding of how ethical considerations and strategic marketing approaches can influence business outcomes, with solved assignments and past papers available on Desklib for further study.

ASSIGNMENT FRONT SHEET <No.2> Retake
Qualification BTEC Level 4 HND Diploma in Business
Unit number and
title 486_Marketing Essentials
Assignment due Assignment submitted
Learner’s name Cao Ngoc Ngan Thuong Learner’s code GCS15440
Class GBS0604 Assessor name Nguyen Thi Thanh Nhan
Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.
Learner signature Date
Grading grid
P3 P4 M3 M4 D2

Assignment title Aspect of ethical philosophies and the impact of ethical issues on business
In this assignment, you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.
Assessment criteria Expected evidence Task
no.
Achieved (Stick
to mark as
achieve)
LO2 Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve overall business objectives
Compare the ways in which different
organisations apply the marketing
mix to the marketing planning
process to achieve business
objectives.
- The 7Ps marketing mix:
Product, Price, Place,
Promotion, People, Physical
Evidence, Process
- The shift from the 4Ps to the
7Ps and marketing mix.
- An overview of the marketing
planning process (Analysis,
Planning, Implementation and
Control) and marketing
strategy.
P3
 Achieved
 Not
achieved
LO3 Develop and evaluate a basic marketing plan

Produce and evaluate a basic
marketing plan for an organisation.
- Marketing planning:
importance, value of
marketing plans
- The links between marketing
plans, marketing objectives
and marketing strategies.
- Evaluate and monitor
marketing plan using
appropriate techniques (sales
analysis, market-share
analysis, efficiency ratios and
cost-profitability analysis).
- Structure and development of
marketing plans: setting
goals, analysis techniques,
creating marketing strategy,
allocate resources and
P4
 Achieved
 Not
achieved
Assessment
criteria
Expected Evidence Achieved (Stick to mark
as achieve)
M3 Evaluate different tactics applied by organisations to
demonstrate how business objectives can be achieved
 Achieved
 Not achieved
M4 Produce a detailed, coherent evidence-based marketing plan for
an organisation
 Achieved
 Not achieved
D2 Design a strategic marketing plan that tactically applies the use
of the 7Ps to achieve overall marketing objectives  Achieved
 Not achieved
Summative feedback:
Assessor’s
Signature
Nguyễn Thị Thanh Nhàn
Date

TASK 3.1:
Marketing mix is the tool for marketers to help determine a product
offering, simply means putting the right product with the right price in the
right place and time. Marketing 4Ps was created by E. Jerome McCarthy in
1960s and it is the foundation of the ideal of marketing mix. Marketing 7Ps
is the model modified from 4Ps. Marketing 7Ps included: Produce, Price,
Place, Promote, People, Processes, Physical Evidence.
1. Product:
The product can be intangible or tangible as it can be in the form of
services or goods. The product should appropriate to the market and it
must be the what the consumers expecting to get. There are three levels of
products and service: Core customer value, Actual product, Augmented
product.
- Core customer value: the fundamental need or want of customers, it is
what customers desire and believe they will have benefit from that product.
Example: with the high technological these day, customers required for a
cell phone not just simply a communicate device like it used to be. iPhone,
which from brand Apple, deliveries to customers a cell phone which could
communicating, playing game, using internet, taking picture and video, and

some extra services with high security to protect customer’s information in
the cell phone.
- Actual product: is the actual product of how the core product is going to be.
Actual products are quantifiable in nature and have properties like brand
name, features, quality level, design, packaging.
Example: iPhone 5s
1. Brand name: Apple.
2. Features: calling, message, face time with HD quality, playing game,
using iOS 7 operating system, camera 8.0 megapixel, secure by Touch
ID fingerprint sensor, accelerometer, gyro, proximity, compass. Browser
uses HTML5 (Safari), Siri natural language commands and dictation,
iCloud cloud service, MP3/WAV/AAX+/AIFF/Apple Lossless player,
MP4/H.264 player, audio/video/photo editor, document editor.
3. Quality level: one of the most popular brand cell phone with high quality
and one of the most realizable brand.
4. Design: the phone is light and thin with a thickness of only 7.6 mm, the
length of the machine has increased by 8.6 mm compared to iPhone 5s.
The screen size is 4 inches. Machine is surrounded by shiny metallic
lines for the purpose of better machine protection and avoid the
occurrence of scratches during use.

5. Packaging: The packaging for iPhone 5s is highly recyclable, its box is
made primarily from bio-based materials, including fiberboard
containing 90 percent post-consumer recycled content.
- Augmented product: adding more benefits to the customers. Augmentation
product is adding to the product’s offering outside of the product itself, it
could be the form of a warranty, after-sale service, product support,
instructions on how to use the device and so further.
Example: iPhone 5s
1. Delivery and credit: support delivery worldwide and pay by
credit/debit/visa/mastercard. Buy directly from the store and pay by
credit/debit/visa/mastercard or cash. Moreover, when buying directly at
the shop, customers are supported by installment payment.
2. After-sale service: a year warranty from Apple, iPhone service answer
center where troubleshooting about iPhone service options, warranty,
and pricing.
3. Warranty: one-year warranty worldwide, replace iPhone for malfunction
and technical fault or repair only the machine depending on the level of
failure and error and will be determined by Apple or authorized
representatives of Apple from the Apps Store or distributor decision.
Product definition: product could be a service or item which for sale. Every
product has a cost and is sold with a price. In marketing, the product must
be closely meet the requirements of the target market and capable to
make profit.
Product classifications: is divided products according to its specific
characteristics so that they form a structured portfolio. Classifying product
help marketers decide the strategies and promote to help organization’s
product. There are many types of classification depend on each
organization. Below is the information of classification product based on
consumer products.
Consumer products: is the product bought by final consumers for
personal consumption. Consumer products classifies on the base of
the manner of purchase & manner of marketing:
+ Convenience Products: is the items which do not require
customer’s effort or forethought, those products are bought immediately and
frequently. Example: tooth brush, soap, cooking oil, newspapers.
+ Shopping products: is bought less frequently and customers spend time and
effort buying shopping products. Customers usually compare price, quality,
safety information and style before making a final decision. The most effective

marketing strategies are using advertises and promotion according to the book
“Principles of Marketing,” by Ashok Jain. Example: Clothing, furniture, services.
+ Specialty Products: requires significant thought. It is the product with brand
identification or unique characteristics, and the most important thing is a group
of customers are willing to buy those products. Specialty products usually
expensive, durable, often involving authorized dealerships and personal selling.
Example: luxury brand car, clothes.
+ Unsought Products: is the product which customers are not aware or do not
have intention to buy. Example: life insurance, blood donation to Red Cross.
Product line: is a series of different product made by the same company.
Example: Apple product line
Definition Service: is intangible product such as medical treatment, insurance,
education. It cannot be stored or transported, are instantly perishable, its existence
right the moment when it is bought and consumed.
Characteristic Service: there are several characteristic of service depended on a
product, but there are four typical characteristic of services which are Perishability,
Heterogeneity, Intangibility and ownership.
+ Perishability: this characteristic is services which intangible. It is highly perishable
and time factor has a great significance in marketing services. It cannot be stored
so if it will be wasted if organization stop working.
+ Heterogeneity: the quality of service cannot be standardized. Service can have
different price such as a doctor can charge higher price for rich people and lower
for poor.

+ Intangibility: services are intangible which cannot be touched. The customers can
not touch, smell and taste the product. The concentrate is to satisfy and benefit
consumers.
+ Ownership: In the transact of goods, through some process the buyer becomes
the owner of the goods. This case is not applicated for service.
2. Price:
Basically it is the amount which customers pay to enjoy or own the product. It
determines organization’s profit and survival so it is important in marketing mix as
same as marketing plan. Setting the right price for the products or services helps
organization maximize profits and maintaining a good relationship with customers.
- List price: Manufacturer's, distributor's, or retailer's quoted, published, or displayed
price on which quantity, seasonal, or other discounts are computed. Also called
manufacturer's suggested retail price (MSRP). (Businessdictionary, n.d.).
- Positioning: to position your rates or prices more appropriately to the market and
competitors’ rates and products, considering to use these strategies:
1. Skim: this strategy is telling to the customers that the organization is special, it
above the rest, setting higher price than competitors does in order to “skim off”
customers who are willing to pay more. High price give more high quality to
customers, but the important thing that they understand why they willing oay
higher price for the products.
2. Match: this strategy is to put the organization’s product price on par with the
competitors. This allows organization to remain competitive for a larger group
of customers, but does not reduce the competition.
3. Surround: this strategy positions the organization’s products as the cheapest in
the market, offering customers a better option with the price close to
competitors’ first available rates.
4. Undercut: undercutting in some categories compared to competitors to attract
more customers. This strategy is offer a price that can comparable to
competitors but with one or more categories lower.
5. Penetrate: this strategy mostly encouraging customers to try new products or
services, it is put a lower priced option in the market.
- Payment methods: Customers have various methods to pay the products or services.
In developed countries the most common method is use credit card, debit card or
mastercard, while in developing countries cash still the most common method. Other
than that there are still have some extra method for customers to choose such as
installment, through internet like paypal.
- Price Strategies: is a way to determine the price for the products or service which help
organization maximize the profits. The pricing is extremely complex and intense, the
managers have to consider everything pricing a product, ensure the price includes
cost of production and bring back profit while in line with affordability of target

customers. There are various price strategies based on the products or services,
target market and customers of the organization, and there are four main strategies:
1. New product pricing strategy: new products always have difficult when enter
the market, and they can use one of these strategy:
+ Price Skimming: is a strategy that setting the high price for new products
when the market has few competitors. This one helps organization to maximize
their profits before competitors enter the market then the price has to be lower.
This is popular for technology industry.
+ Penetration Pricing: is using to gain market share by offering a lower price
than their competitors. This strategy is usually used when marketers get their
product into market and want to encourage customers try their products. This
strategy might get losses for the organizations at first, but after achieving a
stronger market penetration, the prices will be raised to get more profitable
level. C2 used to use this strategy, they sale their product with only 3,500 dong
while at that time O degree price is 7,000 dong.
2. Product mix pricing strategy:
+ Product line pricing: For a product line, the manufacturer will assign different
prices corresponding to the value and cost of production of each product.
These prices will show different levels of value, quality in the mind of the
customer. Example for iphone, each product line has the different price.
+ Optional product pricing: lots of product have their optional product, which is
order and made according to the requirements of the customer with the
advisory support from organization. Car industry usually have this strategy,
they provide the GPS speakers, led lights, electronic door controls, etc., due to
customer demand.
+ Captive products pricing: there is some complementary products must be
used with the main product. Normally, the price of the main product will be set
at a low price, but the price of complementary products is set at a high price,
profit will be focused mainly on auxiliary products. Example for camera, the
body does not cost so much, but the lens and genuine accessories are sold at
high price.
+ By-products pricing: by-products are products got during the process of
producing main products. Example in metallurgy is slag cement, slag concrete,
etc. In some case by-products also brings high profit to the business.
+ Bundle Pricing: organization sells a bundle of product with a reduce price
compared when they being sell separate. This strategy common in food
industry such as you buy your portion as a combo, it is also effective to move
unsold items but taking up the space. Bundle gives customers a mindset that
they have more benefit and their get a very attractive value for their money.
Food industry uses this strategy the most, example for KFC, they encourage
customers to buy their combo instead of separate.

3. Price adjustment strategy: when there is changing about the conditions,
environmental or customer-related factors, organization has to change their
product’s price.
+ Discounted and allowance pricing:
Discounts: discounted the product within the specific days, discount for
customers when they buy more than one product which depended on the
company. This strategy is usually use before holiday, example for beauty
product, they discount for customers within a week before Tet.
Allowance: allowance a product when customers register for service which the
organization suggest.
+ Segmented pricing: more than one price level depended on customers,
location, time, etc.,
Pricing by customer: Each customer will have a different price for the same
product or service. Example for CGV, students will be paid lower price than
adult.
Pricing by location: There are different prices for different locations. Due to
delivering cost, clothes at the same chain stores will have different price.
Time-based pricing: Prices are determined differently for the same product at
different times of the year, month, day. Example for Adidas shoes when the
product is “hot” the price will be higher, and for a while it will be reduced.
+ Psychological pricing: is when marketers encourage customers buy the
product base on emotion rather than common-sense logic. The most common
is when organization prices the product at $99 instead of $100, even the price
not have so much change but consumers perceive $99 as being substantially
cheaper. This is known as the "left-digit effect.".
+ Reference prices: is the price which customers carry in their minds and refer
to when looking at a given product. Example for a clothes store, they shirt is
200,000 dong, but after a few weeks they offer a 30-50% discount, customer
think they are having a good deal because they have discount in the reference
price.
+ Promotional pricing: in some case, organization will temporarily lower their
product prices than listed prices and sometimes even lower than listed prices
in a short time to encourage consumption in the short term. Example: a store
offers “buy 1 get 1” for their product.
+ Geography pricing: with the customers in different regions in the country, the
organization will price a different price for the same product. Example for
Chanel, they are selling their bag in Korea with the higher price than in U.S
due to the transport cost.
+ Uniformed-delivered pricing: the organization charges the same price plus
freight to all customers, regardless of location. For example, if you buy a pair of

shoes and it is delivered to your house then irrespective of which sector you’re
in, you will be charged the same delivered price.
+ Zone pricing: the organization sets up two or more zones where customers
within a given zone pay a single total price.
+ Freight-absorption pricing: the seller absorbs all or part of the actual freight
charge as an incentive to attract business in competitive markets
+ Dynamic pricing: when prices are adjusted continually to meet the
characteristics and needs of the individual customer and situations.
+ International products pricing: the same product will have different price for
different country shipping costs, marketing costs, the economic situation of that
country, competitive status internal and abroad, law, etc. For example,
Starbucks may operate at a loss in some locations but still need a local
presence in order to maintain their economies of scale, as well as their
reputation as a global player, so they price at some country may lower than
others.
4. Price change: Actively change the price: Increasing or decreasing, must take
into the possible response of competitors and customers.
Increase due to cost inflation, increased demand, lack of supply.
Decrease due to excess capacity, increased market share.
Buyer reactions to pricing changes: Customers do not always understand the
price change.
+ Increase: when a product increase, customer think either is a popular
product or it is the greed from the organization.
+ Decrease: a discount can also encourage customers to buy or cause a
suspect, such as the quality is lower or the product is not selling well. In some
case they think that the sight for a new product is coming out.
Competitors reaction to price changes: they will wonder why the organization
change the price, will it permanent or temporary, will it effect on market share
and profits. And to handle all this question, competitor may either change their
price to match the organization, or maintain price but raise the awareness
through communications, or improve their product and increase the price.
3. Place:
This is the very important part which organizations have to put their products or
services in the right position and distribute them in a place that is accessible to
potential customers. Take an example like restaurants, stores, medical offices and
similar establishments need to be in the right location to attract the right customers.
Many companies use distribution networks and/or a sales force, so for them the world
wide web has become their “place”.
Distribution channels is the stage that move product from production to market. It
could have various levels, each party called “intermediary”. Distribution channels