Group 2, Module 4 Brief, MKTG-721-F2WW, Instructor Banks, March 13, 2021

To: Instructor Banks, Franklin University

From: Group 2 – Antonyuk, Hiland, Lattan, Samineni, Santiago
Subject: Module 4 – Business Brief: Customer Value Place
Date: 03/13/2021

Business Brief: Customer value Place

Introduction:
This brief talks about how the customer feels or gets the benefits and services over what they
paid. Customer value refers to the perception of what a product or service is worth to a customer
versus the possible alternatives. Customer value measures a product or service's worth and
compares it to its possible alternatives. This determines whether the customer feels like they
received enough value for the price they paid for the product/service. Customer value describes
what benefits the customers are expecting from buying a product or a service against the cost of
that purchase. Every customer has a customer value, and this determines how a product is
performing in the market. The product quality, service quality, and price play an important role
in determining customer value. So, if the customer value is good then customer satisfaction will
also increase. There is a positive correlation between customer value and customer satisfaction.
The product quality is measured from the perspective of a customer because he is the end-user,
and his feedback will matter a lot. Hence the company needs to give importance to product
quality. The service provided to the customer after the purchase also matters a lot. The customer
would expect good support when he faces some problem with the product. This will show how
much the company career for its customers. The cost of the product will differentiate the
company from its competitors in the market. It can provide a competitive advantage if a good
pricing strategy is followed. The pricing should be in the favor of the customers and it should be
affordable to them. So, customer value is directly related to customer satisfaction.

Distribution Strategies:

A necessity for the success of Find My Ride and a part of the marketing mix is distribution. We
strive to make our product line and distribution methods a value to the consumer and perform
superior to our competition. Our marketing distribution methods have regular evaluations to
ensure that we have limited competition with our distribution partners, supply is readily available
to multiple outlets, and our brand continues recognition for quality and customer convenience.

The selective distribution strategy will be our focus at this time. Our product is targeting a
consumer purchase for a convenience item that has a relatively inexpensive price point. This
strategy will lead to impulse purchases, in addition to the visual connection of seeing an article
discussed on social media or word of mouth success stories of our product's satisfaction. We
want our customers to have the ability to seek out our product directly online or at retail outlets.
However, establishing our product availability at multiple locations will enhance the opportunity
of new customers that were not pursuing our item initially. With this desired availability in mind,
the full distribution method involved with intensive distribution would not be manageable for
this product. We do not intend to have our product available at grocery or convenience stores to
serve our customers and our distribution partners and methods more efficiently. The product will
be readily available at major home improvements stores, Walmart, Costco, Sam's Club, Meijer,
and other large retailer outlets. The product will have direct online sales through Find My Car
and Amazon.

Our product is lightweight, small, and conveniently packaged. The shelf life is extensive and
does not require seasonal stocking or rotation. Warehouse requirements are limited and
manageable; however, we desire to distribute through small energy-efficient vehicles from
warehouses to our in-store outlets. Our green product is made from recycled materials, and we
strive to limit pollution to our environment through our transportation efforts. Along with the
selective distribution model, these factors will decrease the need for excessive supply to multiple
locations.

In addition to helping keep an environmentally friendly distribution strategy, our goal is to

decrease costs while providing a quality product to benefit the consumer. The selective
distribution strategy will lower our distribution cost by eliminating increased transportation,
packaging, and product sorting. This strategy will also prove to be easier to manage for our
distributors as opposed to intensive distribution. This improved time management will allow for
the concentration of our efforts to focus on sales and production efficiency. (Vinish,2020)

Channel Management:

There are two types of distribution, direct and indirect. Direct, sales between producer and
consumer, and indirect, having a retailer between the consumer and the manufacturer. Both types
of distribution will be beneficial to Where's My Ride based on the different scenarios. For
example, for the roll-out of Where's My Ride, indirect distribution will work best in
collaborating with intermediaries to distribute the product to retailers such as Sam's Club and
Costco. Once Where's My Ride has hit stores, direct distribution will come into play, where
consumers, having seen, and used the product in-store, can buy the product online directly from
the company. In any case, it is our responsibility to control all services to prevent delays and bad
service that could affect Where's My Ride's credibility or its customers. Using indirect
distribution channels for Where's My Ride will help us use the intermediary's experience and
their business owner contacts to access the market efficiently and rapidly.
Global Marketing:
As technology, transportation, and the economy become more intertwined throughout countries
worldwide, companies can share and market their products internationally. Over the past few
decades, global trade has increased significantly (Armstrong, 2020). Although selling products in
home markets may be safer, companies who choose not to sell internationally may lose the
opportunity to enter other markets and lose their home consumers to other competitive markets.
To enter into the global market with our product, Where’s My Ride, we will focus on targeting
urban and industrialized countries with large middle classes with medium-high levels of income.
We would choose direct investment as our mode of entry because of our sustainability goals and
selective distribution strategy. Though the risk, commitment, and control are higher, investing
directly will allow our company to create jobs in the host country and decrease labor and
materials costs while maintaining our company’s vision to reduce pollution through
transportation efforts.
Due to the nature of our product, consumers will need a car to use the product. In industrialized
countries, “the number of passenger cars in circulation can act as a direct measure of the middle
class” (Dadush, 2012, para. 2). While countries like the United States, Italy, Germany, and
France have high per capita rates worldwide, other countries like India, China, and Indonesia are
comparatively lower (Fisher, 2012). One of the reasons Asian countries have lower car
ownership rates is the high population density and the countries' regulations to reduce car
ownership. Also, in some countries, public transportation systems may be prioritized, reducing
the number of cars needed.
In addition to legal implications, we will have to consider technological advancements in the
global countries we are targeting. Because our product is designed to be used with an
application, being mindful of WIFI and cellular service availability is crucial. While some
countries have fast WIFI connections accessible publicly, like Canada, Portugal, and Sweden,
other countries, like Venezuela, have significantly slower internet speeds (Sumra, 2020).
Additionally, because our product will be offered in various colors, we will have to be aware of
color meanings between different cultures. For example, in Indonesia, the color green is
forbidden, representing exorcism and infidelity (Eriksen, 2020). Although we would offer all of
our product colors online, we would not sell products with offensive colors in stores globally.
Finally, because we are selling a technological product where the use and function do not change
from culture to culture, we will be using a standardized global marketing strategy. In contrast to
adapting a strategy for each unique culture, our focus will be using a consistent approach that
demonstrates how our product and save users time and bring peace of mind. Additionally, we
will concentrate on straight product extension to distribute globally, selling the same product
throughout the world without any changes.
Standardization and Adaptation:
Product standardization can be beneficial because it can reduce the cost of manufacturing, as
well as making the entire process of selling a lot more efficient. This is because standardization
makes the product have identical characteristics that appeal to all markets. For our product,
Where’s My Ride we are including a double-sided glass adhesive mount for in-car installation,
and extreme double-sided mounting tape for router installation. This will allow consumers in all
markets to take advantage of the multiple uses of our product. The main body of our product will
also be offered in three neutral colors: Black, white, and gray to satisfy the masses globally.
On the contrary, Where’s My Ride will use adaptation to appeal to specific markets to better suit
their niche. Since Where’s My Ride is primarily powered by sunlight. Vehicles from strong
winter weather areas may run on lower battery life, the same can be said for vehicles that spend
most of the time parked indoors or in a parking garage. Because of those situations, Where’s My
Ride will have an additional bundle that will include a fast-charging USB-C cord that connects
directly from the Where’s My Ride mainframe onto a 12V adaptor. The adaptor will charge an
external battery case that then wraps around the Where’s My Ride product/disk.
Value to Customer:
Because the Where’s My Ride device is so many things -Vehicle finder, anti-theft device, mobile
app optimized, and real-time tracking GPS device – the price of $49.99 is a highly attractive
bargain considering everything it does. There is a $0.99 monthly subscription per device that is
charged at the beginning of every month. Additionally, the Where’s My Ride device/disk does
not need a cellular plan to operate, but rather it uses a VPN network to connect the device
wirelessly to the internet. The $0.99 subscription is a competitive price for the services/options
this product offering.

Conclusion:

A good customer experience will make an incentive for a Customer. Making Customer Value
(better advantages versus cost) builds dedication, piece of the pie, cost, lessens blunders, and
expands productivity. Higher piece of the overall industry and better proficiency prompts higher
benefits.

References:

Armstrong, G., Kotler, P. (2020). Marketing, An Introduction. Pearson Education.

Dadush, U. (2012, July 23). In search of the global middle class: A new index. Carnegie
Endowment for International Peace.
https://carnegieendowment.org/2012/07/23/in-search-of-global-middle-class-new-index/cyo2

Eriksen. (2020, February 3). How translating colors across cultures can help you make a
positive impact.
https://eriksen.com/marketing/color_culture/

Fisher, M. (2012, August 14). It's official: western Europeans have more cars per person than
Americans.
https://www.theatlantic.com/international/archive/2012/08/its-official-western-europeans-have-
more-cars-per-person-than-americans/261108/

Sumra, H. (2020, July 21). Best and worst countries for Wi-Fi access.
https://www.ooma.com/blog/best-worst-wifi-countries/

Vinish, P. (2020, April). Advantages and Disadvantages of Selective Distribution.

https://www.letslearnfinance.com/advantages-and-disadvantages-of-selective-
distribution.html