Discussing Value Marketing, Customer Lifetime, and Societal Marketing

This homework assignment delves into core marketing concepts, providing detailed explanations and examples. It begins by defining value marketing as the process of highlighting a product's benefits and perceived cost from the customer's perspective, using BMW as an example. Customer lifetime value is then discussed, emphasizing the long-term profitability of a customer. The assignment also covers societal marketing, which integrates social responsibility into marketing strategies, with Walmart as an example. Furthermore, it explores positioning, which involves influencing customer perceptions through the 4Ps of marketing, using Coca-Cola and Walmart. The assignment also analyses macro-environmental factors (technological, economic, political, and demographic), publics (general and financial), and business portfolio, illustrating how these elements impact marketing decisions. Finally, it outlines a marketing strategy encompassing place, promotion, price, and product, tailored for a tech-savvy and affluent market.

Question one
Value Marketing is what profits a client from an item or the cost that the customer
perceives they have to pay to get the benefit of the product or the value the customer perceives
about a product. For instance, BMW makes luxurious cars that many clients perceive to be of the
highest quality.
Customer life-time value is the measure of how valuable a client is to your business
over their life-time as opposed to the value they add to your business with just a single first
purchase. For example, if acquiring a new cost costs $20 and their customer life-time value is
computed to be $30, then the customer is considered profitable, and acquisition of additional
such customers is deemed satisfactory (Chang & Li, 2012).
Societal marketing builds on the marketing concepts that only emphasize on business
requirements, and the customer wants, to include giving back to the society in a bid to make it
better. For instance, firms with robust corporate social responsibility programs like Walmart use
them to achieve societal marketing.
Positioning is the ability of firms to influence their client's perceptions concerning
particular products or brands as compared to their competitors. Positioning helps companies
achieve or create a brand image and identity of a product such that their clients perceive these
products in a specific way (Fuchs & Diamantopoulos, 2010). Positioning is achieved by
exploiting the 4Ps of marketing. For instance, Coca-Cola is perceived to bring happiness or
Walmart as the provider of the cheapest products.
Macro-environments
Technological factors are variables that rely on the existing and the change in
technology either by change in technological products or change in technological processes.
Firms should properly respond to the changes in their technological environment as it can affect
them either negatively or positively (Kilner, 2017). Also, it should be noted that these factors
change very rapidly. For instance, Record stores have practically disappeared as people can
download their music from the internet.
Economic factors are changes that happen in an economy, such as the rate of inflation or
the exchange rates in currencies. Firms remain sensitive to these changes and have to adapt to the
changes or perish. For example, in a time like now, when the world is fighting the Covid-19
pandemic, many companies are out of business with countries crossing their borders and flights

being canceled. At a time like this, we don't expect people to be buying new cars or making
investments. On the contrary, they have to cut on their spending to remain on budget.
Political factors are rules, government actions, policies, regulations, and pressure from
lobbyist groups, among others (Barkauskas & Jasinskas, 2015). Political factors that affect the
business cannot be controlled—for instance, the existing and the impending government
legislation or political instability in a region. A case example of a political factor in the form of
impending legislation is the need to expand a road network. Considering that some company
depends on its strategic location to be in business, an expansion in road network might force
them to move. Even with the compensation offered, the move might cripple the business.
Demographic factors can benefit or disorient businesses in many ways. For instance,
birth control treatments have led to a decrease in the demand for baby food (Vallabh & Mhlanga,
2015). Also, the increase in the number of female professionals working in business has
increased the demand for prepared foods. Consequently, this creates an opportunity for fast food
companies such as restaurants while putting other companies at a disadvantage like furniture
manufacturers.
Publics
The general public includes general clients. The client's brand observation is significant
for the organization's prosperity. Different publicizing efforts may be attempted to assemble a
sound picture. The overall population's judgments can be decided through their input via web-
based networking media. For instance, parents and alumni are considered the general public in
institutions of learning.
Financial publics are the individuals that influence an organization's financing. Banks,
speculators, financier firms, investors, and so forth. This sort of public affects an organization's
capacity to take credits, good installment terms, and so on. They likewise decide how the clients
or different publics see a business. For example, if a company is known to be always counting
losses, investors might shy away or refrain from investing in such firms.
Business portfolio
A business portfolio is a group of business units, products, and services that adapt a
particular firm allowing it to pursue its strategic goal. For instance, using the growth-share
method approach:

The Growth Share Market (Cash Generation)
Market Growth rate
(Cash Usage)
High Low
High A D
Low B C
A – Products with high growth and high market share
B – Products with low growth but have a high market share
C – Products with low growth and low market share
D - Products with high growth and low market share
Marketing strategy
Place – Due to prospective consumers in this new market is characterized as being tech-
savvy and affluent; the company will use a website as a place where customers can find our
products (Albadi, 2018). Also, in addition to our physical premises, we will use other retail and
wholesale outlets to market and sell our products, such as Walmart.
Promotion – The prospective consumers in this new market are characterized as being
tech-savvy and affluent. Since our target customers are aged between 27-35 years, then
promotion methods such as SEO, social media marketing, content marketing, and email
marketing will be adopted.
Price – our electronic consumer products are affordable. The high quality of our products
will enable us to leverage high-quality, high-priced premium electronic consumer products.
Product – high-quality electronics goods that meet industry requirements and standards.

References
Albadi, K. S. (2018). The Impact of Marketing Mix on the Competitive Advantage of the SME
Sector in the Al Buraimi Governorate in Oman. SAGE Open, 8(3), 215824401880083.
https://doi.org/10.1177/2158244018800838
Barkauskas, V., & Jasinskas, E. (2015). Analysis of Macro Environmental Factors Influencing
the Development of Rural Tourism: Lithuanian Case. Procedia - Social and Behavioral
Sciences, 213, 167–172. https://doi.org/10.1016/j.sbspro.2015.11.421
Chang, W., & Li, Q. (2012). Customer Lifetime Value: A Review. Social Behavior and
Personality: An International Journal, 40. https://doi.org/10.2224/sbp.2012.40.7.1057
Fuchs, C., & Diamantopoulos, A. (2010). Evaluating the effectiveness of brand‐positioning
strategies from a consumer perspective. European Journal of Marketing, 44(11/12), 1763–
1786. https://doi.org/10.1108/03090561011079873
Kilner, A. (2017). The Growing Impact of the Macro Environment. Holistic Marketing
Management Journal, 7(4), 10–19.
Vallabh, D., & Mhlanga, O. (2015). Influence of demographic factors on business performance
in small to medium tourism enterprises (SMTEs). African Journal of Hospitality, Tourism
and Leisure, 4.