PGD013: Marketing Management

Batch: 2019-21
Assignment - 1
Value Versus Cost

 Consider three products, normal tubelight, CLF and LED tubelight. Assume that a 40W
product of all of these respectively are priced at Rs. 40/-, Rs. 100/- and Rs. 350/-
respectively. Explain the value for each of these products.
Ans:-
Product Cost Value

Normal tube light Rs 40 1. Consume more electricity.

2. Easily affordable to all lower and middle
class families.
3. no psychic cost
CFL Rs 100 1 Consume less electricity.
2. time period is more than tube lights
3. brightness is much better than tubelights .
LED tube light Rs 350 1. clear and bright light
2. Long lasting.
3. warranty period is 2 years.

 Justify the following statements

1. Apple is one of the most profitable product companies in the world because it focuses on
value rather than cost.
Ans :- apple is one of the most profitable company product in the world because this focuses
on value rather than cost this targeted only customers who afford it not on those who can’t buy
it. Apple is also profitable company because this is not working for more customers but for
permanent customers and in world, apple sale on their value not for cost.

2. Cost and Quality is not directly proportional.

Ans:-. Cost and quality is indirectly proportional because sometime many of the things have
more price but it’s not really that much price. Cost of some products is very high but
sometimes the quality of that product is not good. For example- I purchase a Samsung phone
then I assume that the price of this is too much as comparison to its quality .

3.It is very difficult to sell something for free

Ans:-yes we all know that it is very difficult to sell something for free because every people
thinks that there is a mind game behind that and one reason is that we cant sell free to peoples
if we sell it free then our company troubles for loss. The mentality of the consumers is like
that if company gave them some products free of cost then they think there is any problem in
that product and they refuse to take that product.

For example:- Before 2-3 years back reliance sells his Jio simcard to public free of cost. But
public refuse to take it. But after some time people get trust on this and peoples take this and
after some it make a charge .

In the following find the value in Rs. Give your logic of how you derived this value. If you
need, take any assumptions and mention the same

a) Men’s Hair Cut

Local shop Rs. 50/- Value = 50
JAVED HABIBS – Rs.125/- Value = 130

Local shop
Price = 50

Type of value Value in Rs

Product value 20/- (The quality of the service is low.)
Service value 10/- ( little service value.)
Personnel value 0/- (No personnel value)
Brand/ image value 20/- ( some shops have good customers they all come to same
shop.)
Total value 50

JAVED HABIBS
Price = 125

Type of value Value in Rs

Product value 40/- (The quality of the service is AWESOME.)
Service value 20/- ( PROVIDE GOOD SERVICE.)
Personnel value 10/-( we are safe because workers are highly trained)
Brand/ image value 60/- ( Image value is high due to popularity.)
Total value 130

b) 32” LED TV
Croma – MRP 20000/- Value = 6,000
Videocon – MRP 28000/- Value = 8500
Panasonic -MRP 41000/- value - 15000

Croma

Price – 20,000
Type of value Value in Rs
Product value 2000/-(The value of the product is good compare to quality)
Service value 2000/-( After sales service is average)
Personnel value 500/-( service provided by the sales man is polite)
Brand/ image value 1500/-( It is not so popular )
Total value 6,000

Videocon
Price – 28,000

Type of value Value in Rs

Product value 2500/-( Quality of the product is good)
Service value 3,000/-( After sales service is good)
Personnel value 1000/-(service is good)
Brand/ image value 2,000/- (Better than croma)
Total value 8500

Panasonic
Price- 41,000

Type of value Value in Rs

Product value 3,000/-(The value is high in comparison to others )
Service value 4,000/-(After sales services is also easily accessible.)
Personnel value 3,000/-(The salesman at the stores are very knowledgeable.)
Brand/ image value 5,000/-(Image value is high in comparison to Videocon and
croma)
Total value 15,000

c) Instant Noodles (70gms)

Maggie – MRP Rs. 12/- Value = 18

Patanjali – MRP Rs.15/- Value = 6
Yippee -MRP Rs. 12/- Value = 14

Maggie
Price:- 12

Type of value Value in Rs

Product value 7/-( Its masala powder is unique then others its spices have
many ingredients and flavors)
Service value 0
Personnel value 3
Brand/ image value 8/-( trusted brand.)
Total value 18

Patanjali
Price:-15

Type of value Value in Rs

Product value 3/- has an average quality.)
Service value 0
Personnel value 0
Brand/ image value 3/-( Not a popular brand for noodles.)
Total value 6

Yippee
Price:-12

Type of value Value in Rs

Product value 5/-(more vegetables.)
Service value 0
Personnel value 5
Brand/ image value 6/-( less than maggie.)
Total value 16/-