Marketing, Customer Value, and the Lin Essay

INTRODUCTIONIn at presents economy, firms are no longer the center of business. In order to survive, companies need to ac chicaneledge the fact that business now revolves just about nodes (Keith, 1960). As a result, merchandising becomes one of the most prominent philosophies in business. Therefore, to experience a better understanding of todays business, this essay lead be discussing about three important innovations. These concepts are marketing as a business ism, the understanding of customer value, followed by the link between marketing and customer value. In addition, this essay will be using the colonisation amber physical body movie house as example of the concepts application.MARKETINGMarketing as a business philosophy has grew astoundingly for the past few decades. It becomes one of the influential subjects that creation thoroughly explored in the society. Many have tried to define marketing in different ways. Based on a marketing expert Philip Kotler (1983), mar keting is defined as a human activity directed at repaying needs and wants through exchange processes (p. 7). Marketing exists in order to know what the customers wants and what are their needs, and satisfy those wants and needs through trans exploits. According to Kotler (1983), there are various philosophies that can guide the business conducts exchange and achieves desired outcomes. Using Village golden Class Cinema as example, philosophies that will be discussed here are fruit philosophy and marketing philosophy.Product PhilosophyAccording to Kotler (1983), reaping philosophy assumes that customers will choose to demoralise extravagantly quality products, and thus organizations should focus on the product design and its quality.Village bullion Class Cinema is an example of product philosophy application in business. In February 1997, Village Cinemas and Warner Bros partnered to open a new type of cinema in Melbournes treetop CasinoGold Class cinema (Wikipedia, 2014). Thi s new luxury cinema format was then expanded to otherwise Village Cinemas1throughout Australia and around the world. Gold Class Cinema is a premium venue, offering personalized service level with smaller and private cinemas. Gold Class Cinema focuses extremely on its products quality by improving the art projection and its sound trunks as well as adding recliner to its seats (Village Roadshow Limited, n.d.). All these new highschool quality products were prove as how Gold Class Cinema extremely value the quality of its products.However, product concept will not be full for Village Cinema to become successful. The purpose of a cinema is to entertain customers. Yet, entertainment as humans needs can actually be satisfied by something else such as sport events or music concerts. Thus, Village Cinema needs to apply marketing philosophy to complement the product philosophy.Marketing PhilosophyTo understand marketing philosophy, it is important to know the purpose of business in adv ance. Peter F. Drucker (1999) stated, there is only one valid description of business purpose to create a customer (p. 35). Marketing concept focuses on identifying what the customer needs, what products can attract customers and how to promote them effectively (Kotler, 1983). By pose marketing philosophy in practice, business can serve what consumers want and will generate greater profit.Village Cinemas developed the Gold Class concept even further in order towiden the appeal of going to movies and attract broader demographic (Village Roadshow Limited, n.d.). They put marketing philosophy into practice by analyzing what action should be undertaken in order to satisfy the customers need of being served. In addition to entertainment, human likes to be given personal service. Thus, Village Cinemas remediate the Gold Class Cinemas by providing entertainment with high quality products and giving a personalized service at the alike conviction. Gold Class Cinemas boast a full service bar, lounge and gourmet food with personal waiter service during each screening (Village Cinemas, n.d.). As the pioneer of this concept, Village Cinema has successfully embraced the marketing philosophy where business should focus on the customer and to provide what they want.2CUSTOMER VALUEZeithaml (1988, as cited in Smith & Colgate, 2007, p. 8) defined customer value as being what customers get from the purchase and use of a product versus what they pay. According to Drucker (1999), customer value determines what the business will produce and whether it will prosper or not. Clearly, customers will prefer to consume the product that offers them most benefits with least costs possible. Based on their researches, Smith and Colgate (2007) proposed four major values of customer that applicable to consumer and to customer value creation strategy. According to Smith and Colgate (2007), functional value is concerned about the purpose and usefulness of a product. existential value is con cerned with the customers stepings created by the product whereas symbolic value is concerned about the psychological meaning of a product to customers. On the other hand, cost is related to the both direct and indirect costs of using the product.The following table shows customer value creation strategy with Village Gold Class Cinema as the example.FunctionalCorrect/- Movies, sound systems, and seats has high qualityaccurateattributecreativity)Productcharacteristic(quality,customization, Given appropriate attributes when incumbent (e.g. 3Dglasses when watching 3D movies) All food and beverages menu should be availablewhen orderedAppropriate Movie delivered without any disturbance instruction execution Being served with high quality service Seat recliner move accordingly Ordered food and beverages come correctly andwithin appropriate time length.Appropriate Everything function effectively and appropriately as itoutcomesshould be Cinema should be able to entertain and serve the3cus tomers Foods and beverages should be able to satisfycustomersExperientialSensory More specialised and high quality flying field design forGold Class customers than other normal customers inorder to improve aesthetic value Food plating should be appealing Foods and beverages should smell and taste goodEmotional The movie watched will bring pleasure andenjoyment, (fun, excitement, happy, adventurous,sad, ludicrous or any other emotional feeling) Customers should feel satisfied after being entertainedand served personallySocial The design of Gold Class theatre have fewer seatsand intimate setting, which could lead to a love bondingbetween partners or loved ones Friendship and love bonding with families and friendsby watching movie in Gold Class cinema togetherEpistemic Some high quality movies provided by the GoldClasscinemas efficacyprovideknowledgeandeducational movie, fantasy, or any other experiencesdepend on the movie genreSymbolicSelf identity Staff and system interaction can make customer feel / worthbetter about their own selves. Personalised service can make customer feel exclusivePersonalWatchingwiththemeaninglovedoneandbecomeunforgettable memories Irreplaceable quality time with family or friends everyweek in the cinemaSelf Customers can express their taste of movie andexpressionpreference of way to spend their leisure timeSocial Customers can happen upon prestige and status by watching4meaningmovie in Gold Class Cinema in front of their friends The term Gold Class itself can boost up thecustomers image and self esteem when they enter thespecial theatre in front of ring As the ticket is expensive, customers will be known asrich by other, which can make them feel exclusiveConditionalmeaning greet People will think only those with higher disposableincome or rich background can watch in this cinemaEconomic The bell of the ticket, food and beverages The transportation cost or any other indirect costPsychologi- Some psychological relationship cost suc h ascal bail bond or addiction Equity conflict for customers who think highly of howsome people cant afford to enjoy the privilegePersonal Energy, labor and time spent to queue or click theinvestmentorder button through internetRisk Low personal and operational bump as Village GoldClass Cinema is a well-known brand High financial risk as the price is higher than othertheatre5LINK BETWEEN MARKETING AND CUSTOMER VALUEWhatever the market or the business operating at, marketing has one third estate theme to create perceived customer value that is superior to alternatives available while at the same time creating value for the business (Kotler, Brown, Burton, Deans, & Armstrong. 2010, p. 4). When marketing philosophy is applied in a business, customer value will play a really important role. Creation of the customer value is critical for marketing, in particular when the business is going to develop new products and services (Smith & Colgate, 2007). Customer value represents customer point of view, and marketing needs it in order to manage a profitable relationships between business and customers. With marketing philosophy, business needs to know what customers consider important in a productwhat customers value in a productand to develop those products according to customers preferences.Compared to marketing philosophy, customer value doesnt really influence product philosophy. In this case, business assumes that customers will prefer to buy high quality product with reasonable price, thus marketing effort is not much needed (Kotler, 1983). However, Village Gold Class Cinema whitewash considers customers value as critical to their business. Village Cinema didnt only focus on the product quality, yet they deliver a personalized and high quality service as well in order to satisfy the customers. Village Cinema knows that customers want to be entertained and personally served in the same time. Thus, the importance of customer value was demonstrated by applying m arketing philosophy in their business and develop Gold Class concept.CONCLUSIONTo conclude, marketing is highly linked with customer value. Despite having different philosophies, every business should not take customer value lightly if they want to survive in todays competition. Even if some businesses like Village Gold Class Cinema embrace more than one philosophy, they still need to address customer value as a really important concept that can influence their business outcome.REFERENCE LISTDrucker, P. F. (1999). The Practice of Management. Oxford, London Butterworth Heinemann.Keith, R. J. (1960). The Marketing Revolution. daybook of Marketing, 24(3), 35-38. Retrieved from http//www,jstor.org/stable/1248704Kotler, P. (1983). Marketing and Human Needs. Marketing in Australia (pp. 3-27). Melbourne, VIC Prentice-Hall of Australia.Kotler, P., Brown, L., Burton, S., Deans, K., & Armstrong, G. (2010). Marketing (8th ed.). Sydney, NSW Pearson Australia.Smith, J. B. & Colgate, M. (2007). Customer Value Creation A Practical Framework. Journal of Marketing Theory and Practice, 15(1), 7-23. inside 10.2753/mtp10696679150101 Village Cinemas. (n. d.) Gold Class. Retrieved from http//villagecinemas.com.au/goldclass VillageRoadshowLimited.(n.d.)CinemaExhibition.Retrievedfromhttp//www.villageroadshow.com.au/Company-Profile/Exhibition.htm Wikipedia.(2014).VillageCinemas.Retrievedfromhttp//en.wikipedia.org/wiki/Village_Cinemas