Description
Based on the discussion made in Chapter-1 regarding the value creation concept, explain how a SR100 Timex watch and a SR20000 Rolex watch deliver value to their respective target markets? Which factors account for this dramatic difference in watch prices? Critically examine and provide your answer.Lexus brand is owned by the Toyota Motor Corporation. In many ways Lexus the luxury vehicle brand, operates independently from the Toyota Motor Corporation. Visit their websites (Lexus https://www.lexus.com.sa , Toyota https://www.toyota.com.sa) and identify what markets each brand targets and how the two companies use the marketing mix (4P’s) differently to target their unique target markets?Being a student of marketing management, critically examine how the technological advances such as artificial intelligence is influencing marketers in the current scenario? Critically examine and provide your answer with suitable examples. Chapter-1 (4 Marks) (Minimum 200 words) Chapter-2 (3 Marks) (Minimum 150 words) Chapter-5 (3 Marks) (Minimum 150 words)
Unformatted Attachment Preview
➔Q1:
The SR100 Timex watch’s value is driven by functionality, affordability, and durability,
making it a top choice for budget-conscious customers, appealing to a broad market segment
seeking reliable timekeeping without expensive features or somewhat pointless extra
expenses. Timex focuses on mass or bulk production, efficient distribution that aims to
produce more and less expensively without as much waste to produce more materials, and
cost-effectively to provide products that are accessible to a wide range of audiences.
Mass marketing involves targeting the entire market with a single product or offering,
ignoring any differences between market segments. It is a way to persuade a wide audience.
On the other hand, the Rolex SR20000 watch targets a specialized market that seeks
uniqueness, craftsmanship, prestige, and luxury regardless of budget, as customers of this
category have priorities and preferences that are more important than costs, which are the
desire for an attractive and luxurious appearance and the desire to appear unique and more
attractive. Rolex meticulously manufactures its watches using premium, high-quality
materials, advanced technology, and complex designs, making it a symbol of prestige and
success and an icon in international fashion houses. A high price reflects not only the
intrinsic value of the product but also the brand’s heritage, reputation, influence, and
perceived uniqueness.to buy a product.
Several factors contribute to the significant price (dramatic) disparity between the two
watches:
Brand Perception: Rolex has developed a strong brand image associated with luxury and
prestige over decades and has thus made itself a symbol of a luxurious and attractive
appearance, allowing it to command higher prices as it has established its brand in the minds
of customers (positioning) over several decades, compared to Timex, which is perceived as
less expensive. It is more utilitarian and has a more rational cost value.
Exclusivity and scarcity: Rolex intentionally limits production to maintain exclusivity,
unlike Timex, which aims to mass produce and sell in larger quantities, Rolex creates a sense
of scarcity, which enhances the brand’s appeal, induces the desire to obtain its product
greater, deserves greater costs, and consequently justifies premium prices.
Marketing and positioning: Rolex invests heavily in marketing, sponsorship, and brand
positioning to enhance its image as a symbol of success and luxury, which affects the
consumer’s perception and willingness to pay a premium, unlike Timex, which is more
concerned with limited costs and thus the lack of budget allocated for marketing so that the
customer does not bear a greater cost.
Materials and craftsmanship: Rolex watches are made with precise engineering and highquality materials such as precious metals and sapphire crystals, which makes their final
appearance very precise and craftsmanship as a result of working on them with the utmost
care and the work of a distinguished team of quality engineers, which increases their value
and durability.
In conclusion, although both Timex and Rolex watches offer value to their respective target
markets, the significant or dramatic difference in prices stems from factors such as brand
perception, materials, exclusivity, and craftsmanship, and that difference stems from different
customer psychology and marketing strategies. Each brand strategically caters to different
consumer segments and their purchasing behavior, reflecting diverse customer preferences,
priorities, and purchasing power.
➔Q2:
Target markets:
If any company wants its marketing campaign to succeed, it must identify and understand its
target audience, which is the most interested in its products and the most profitable for the
organization, as identifying the target market allows companies to formulate their products or
services according to the desires and needs of customers and also direct the industry in the
same direction as the market, based on analyzes of the behavior of that market. Target, to
maximize sales and thus revenues as a whole. A successful marketing campaign connects
with consumers at a personal level, which will help the company to develop long-term
relationships with customers and enhance the process. (Sherlock, 2014) [1]
Based on websites https://www.lexus.com.sa and https://www.toyota.com.sa
The target markets of Toyota and Lexus are as follows:
– Lexus: Lexus primarily targets the market of luxury cars with a luxurious appearance, as it
targets wealthy consumers who are not subject to a limited budget and who are looking for a
unique attractive appearance, regardless of the purchase price or any additional costs, and
therefore they are customers who have priorities apart from cost, which are high-end cars that
are characterized by advanced technology, superior craftsmanship, comfort and prestige. As
luxury is a priority and not just a luxury for them, the brand emphasizes elegance,
sophistication, and personal experiences to attract discerning customers who appreciate
luxury and exclusivity.
-Toyota: Toyota caters to a broader market segment as it is focused on mass production,
offering a range of vehicles ranging from economy cars to mid-range cars and SUVs that
meets the common-sense equation for most buyers “value equals price”. Toyota targets a
diverse demographic of consumers, including families, professionals and budget-conscious
buyers. The brand focuses on reliability, practicality, fuel efficiency and affordability,
making it attractive to a wider audience looking for reliable transportation solutions that get
the job done without spending a lot of additional expenses
Marketing Mix (4P):
Kotler has defined the marketing mix as the “set of marketing tools that the firm uses to
pursue its marketing objectives in the target market”.[2]
Based on customers’ assessment of potential product attributes (in any category, e.g. product,
price, promotion, etc.), and the attributes of products sold by any other companies, the
problem of selecting and defining product attributes to maximize the number of preferred
customers and thus increase total sales is computationally intractable problem.[3]
Lexus:
Product
Price
Place
Promotion
Lexus focuses on
Lexus demands
Lexus maintains
Lexus is used for
premium features,
premium prices that
exclusive
advanced marketing
craftsmanship, high
reflect the luxury
dealerships and
methods to deliver
precision, advanced
and exclusivity of its
showrooms in
their brand values
technology,
cars, appropriate to
upscale locations
more luxurious and
performance and
the target market
within more affluent
ambitious, including
comfort in its cars.
group. Therefore,
communities,
targeted
The product range
the prices are higher,
ensuring a distinct
declarations,
includes luxury
unlike Toyota, which retail environment in
specialized
sedans, SUVs,
is in line with the
keeping with the
marketing
coupes and hybrids
brand’s positioning
brand’s image of
campaigns, care and
designed to provide
as a luxury brand
luxury and
events and
an exceptional and
with a luxurious and
sophistication. It is a
cooperation with
very successful
attractive appearance narrow-range
luxury brands of life.
driving experience
that has been
distribution network,
The focus is on
with a luxurious
associated with the
as Lexus intends this
building an
appearance and to
luxury brand for
so that its brand
ambitious image and
meet the diverse
decades.
appears with rare
promoting emotional
and unique design.
links with wealthy
preferences within
the luxury car sector
customers who are
with an attractive
not interested in
appearance.
budget.
Toyota:
Product
Price
Place
Promotion
Toyota offers a
Toyota is adopting a
Toyota has a wide
Toyota uses a mix
diverse range of
more competitive
distribution network
of traditional and
products as it
pricing strategy,
that includes agents,
digital marketing
focuses on mass
catering to budget-
service centers, and
channels and aimed
production,
conscious customers
online platforms, as
at reaching customer
including small cars,
and offering value
it is interested in a
care about value-for-
sedans, SUVs,
for money across its
greater number of
price to reach a
trucks and hybrids.
product range. In
sales, and serves a
wider audience, with
The focus is on
general, Toyota
large and diverse
an emphasis on
reliability, durability, brand prices are less
customer base across reliability,
safety, practicality
expensive compared
different regions and
innovation and
and the most
to luxury brands
population groups.
sustainability.
practical materials,
such as Lexus,
Therefore, Toyota is
Marketing efforts
with models
which makes Toyota
interested in
often highlight
designed to meet
cars accessible to a
spreading across a
features of
different consumer
wider customer base. larger demographic
needs and
category.
technological
advancements,
preferences across
safety and
different price points
environmental
that suit the budget
initiatives that are of
of customers in that
interest to diverse
target group.
consumer segments.
In conclusion, Lexus and Toyota target distinct markets and use different marketing
strategies within the 4P framework to meet the unique needs, preferences, and aspirations of
their customer base. Not all consumers are the same. Determining the target audience is key
to reaching the loyal and high-profit customers, in order to ensure a return on investment
(Cahill, 1997, p. 10-11) [4]. To effectively determine the brand’s target audience, marketing
managers should consider the three main general aspects of target audience grouping:
demographics, psychographics and consumer lifestyle (Percy, Rossiter, & Elliott, 2001, p.65)
[5].
➔Q3:
Artificial intelligence (AI) advancements have reshaped and transformed the field of
marketing in several ways due to its advanced tools and the wide range of data.
Data Analysis and Insights: Artificial intelligence helps marketers very effectively, as it
enables them to analyze huge amounts of data to obtain insights about consumer preferences,
behavior, purchasing power, trends, etc. For example, AI-powered tools such as Google
Analytics and Salesforce Einstein provide actionable insights. It helps marketers make more
accurate and specific decisions, as it depends on customer data, which has many dimensions.
Chatbots and Virtual Assistants: Thanks to advances in artificial intelligence, chat bots and
virtual assistants have been developed and activated, which work to improve customer
service through active engagement and ensuring a rapid and more accurate response when the
customer searches for a product or any inquiry. For example, the Sephora brand uses
chatbots supported by artificial intelligence to provide recommendations based on the bestselling and preferred makeup products by customers and customized makeup tutorials, which
enhances the customer experience. Also, online shopping sites such as Noon are an excellent
example of the effective application of artificial intelligence techniques, as they provide the
customer with a successful experience in showing the products he is looking for and offering
recommendations based on previous data for the same client or other clients.
Content Creation and Optimization: Artificial intelligence tools automate content creation
and optimization processes, and that makes the process more efficient due to saving time and
resources for marketers. For example, platforms like Grammarly use AI to improve writing
quality and help to write smarter with text generation and personalized AI guidance, while
tools like Canva generate design recommendations and make it more professional by using
AI.
Personalized Marketing: Artificial intelligence algorithms can personalize marketing offers
and messages based on individual customer preferences, behaviors, purchasing power, etc.
For example, Netflix uses AI to recommend shows and movies based on viewing history and
preferred type of movies like action, drama, tragedy, etc.., leading to higher engagement and
retention which make the watching experiment successful.
Predictive Analytics: Artificial intelligence algorithms are able to predict future trends and
results based on monitoring market trends and customer behavior, which can determine the
future path and this helps marketers to identify future potential customers, market shifts, and
future trends. For example, retail companies use complex forecasting analytics to improve
pricing and inventory management strategies.
In conclusion:
Artificial intelligence has an effective impact on marketers, as it has revolutionized the world
of marketers and contributed to the occurrence of marketing campaigns that are more
successful, more personalized, and more specific, through several tools and data analysis.
However, despite this, artificial intelligence is considered a challenge for marketers, as their
fear regarding privacy, information security, and problems increases. Ethics and also the
increasing need for development in this field in order to keep pace with progress in it
References list:
1. Sherlock, T. (2014). “3 KEYS TO IDENTIFYING YOUR TARGET AUDIENCE”.
Promotional Marketing.
2. Kotler, P., Marketing Management, (Millennium Edition), Custom Edition for
University of Phoenix, Prentice Hall, 2001, p. 9.
3. Rodríguez, Ismael; Rabanal, Pablo; Rubio, Fernando (2017). “How to make a bestseller: Optimal product design problems” (PDF). Applied Soft Computing. 55 (June
2017): 178–196.
4. Cahill, Dennis J. (February 1997). “Target marketing and segmentation: valid and
useful tools for marketing” (PDF). Management Decision. 35 (1): 10–13.
5. Percy, L., Rossiter, J. R., & Elliott, R. H. (2001). Strategic advertising management.
Oxford: Oxford University Press.
المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية اإللكترونية
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
Department of Business Administration
College of Administrative and Financial Sciences
Assignment 1
Marketing Management (MGT 201)
Due Date: 9th March 2024 @ 23:59
Course Name: Marketing Management
Student’s Name:
Course Code: MGT201
Student’s ID Number:
Semester: 2nd
CRN:
Academic Year:
For Instructor’s Use only
Instructor’s Name: MS. Noof Aldossary
Students’ Grade: Marks Obtained/Out of 10
2023-24
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for
poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
1.
2.
3.
Recognize an understanding of the overall marketing concepts, goals and strategies within the context of
organizations goals and strategies. (CLO-1)
Demonstrate the ability to formulate marketing strategies that incorporate psychological and sociological
factors which influence consumer’s decision.. (CLO-3)
Use effective and collaborative interpersonal skills to carry out scientific analysis of consumers’ needs and
wants to formulate a marketing Plan. (CLO-5)
Critical Thinking
Max Marks-10
Reading required: – Read Chapter 1, 2, and 5 carefully and then answer the following
questions based on your understanding.
1. Based on the discussion made in Chapter-1 regarding the value creation concept, explain
how a SR100 Timex watch and a SR20000 Rolex watch deliver value to their respective
target markets? Which factors account for this dramatic difference in watch prices?
Critically examine and provide your answer.
Chapter-1 (4 Marks) (Minimum 200 words)
2. Lexus brand is owned by the Toyota Motor Corporation. In many ways Lexus the luxury
vehicle brand, operates independently from the Toyota Motor Corporation. Visit their
websites (Lexus https://www.lexus.com.sa , Toyota https://www.toyota.com.sa) and
identify what markets each brand targets and how the two companies use the marketing
mix (4P’s) differently to target their unique target markets?
Chapter-2 (3 Marks) (Minimum 150 words)
3. Being a student of marketing management, critically examine how the technological
advances such as artificial intelligence is influencing marketers in the current scenario?
Critically examine and provide your answer with suitable examples.
Chapter-5 (3 Marks) (Minimum 150 words)
Important Notes: •
•
•
Avoid Plagiarism
Support your answers with course material concepts, principles, and theories from the
textbook and scholarly, peer-reviewed journal articles etc.
Use APA style for writing the references.
Answers
1.
2.
3.
Purchase answer to see full
attachment
