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. pple is also profitable bcz this is not working for more customers but for permanent
customers and in world apples 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 its not really that much price for example-when I purchase a Lloyd ac then I
assume that the price of the as is much more high but fact is that price is not a worth price for
a ac

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.

For example:-we take a real example which happened before 3 years ago a company jio sells
his sim to peoples in free but peoples are not trusting but after some days peoples to peoples
advertising everyone take it in free but after some days it take charges this is not free this
only take customer for free sake that’s why not any company sells his product in free

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 – MRP Rs. 50/- Value = 50
Javed Habibs – MRP Rs.125/- Value = 110

Local shop
Price = 50

Type of value Value in Rs

Product value 10/- (The quality of the service is low.)
Service value 0/- ( No 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 30

Javed Habibs
Price = 125

Type of value Value in Rs

Product value 35/- (The quality of the service is really high in comparison to
local shop.)
Service value 10/- ( after sales service.)
Personnel value 20/-( The personnel is this is safe high workers)
Brand/ image value 55/- ( Image value is high due to popularity.)
Total value 120

b) 32” LED TV
Croma – MRP 20000/- Value = 10,000
Videocon – MRP 28000/- Value = 19,000
Panasonic -MRP 41000/- Value = 32,000
Croma

Price – 20,000
Type of value Value in Rs
Product value 2,500/-(The value of the product is good compare to quality)
Service value 2,500/-( After sales service is average)
Personnel value 1,500/-( service provided by the sales man is polite)
Brand/ image value 3,500/-( It is not so popular )
Total value 10,000

Videocon
Price – 28,000

Type of value Value in Rs

Product value 5,000/-( Quality of the product is good)
Service value 3,000/-( After sales service is good)
Personnel value 4,000/-(service is good)
Brand/ image value 5,000/- (Better than croma)
Total value 19,000

Panasonic
Price- 41,000

Type of value Value in Rs

Product value 12,000/-(The value is high in comparison to others )
Service value 5,000/-(After sales services is also easily accessible.)
Personnel value 5,000/-(The salesman at the stores are very knowledgeable.)
Brand/ image value 9,000/-(Image value is high in comparison to Videocon and
croma)
Total value 31,000

c) Instant Noodles (70gms)

Maggie – MRP Rs. 12/- Value = 15

Patanjali – MRP Rs.15/- Value = 9
Yippee -MRP Rs. 12/- Value = 11
 Maggie
Price:- 12

Type of value Value in Rs

Product value 7/-( Its masala is unique then others its spices have many
ingredients and flavors)
Service value 0
Personnel value 0
Brand/ image value 8/-( trusted brand.)
Total value 15

Patanjali
Price:-15

Type of value Value in Rs

Product value 3/- (Herbal but has an average quality.)
Service value 0
Personnel value 0
Brand/ image value 6/-( Not a popular brand for noodles.)
Total value 9

Yippee
Price:-12

Type of value Value in Rs

Product value 5/-(more vegetables.)
Service value 0
Personnel value 0
Brand/ image value 6/-( less than maggie.)
Total value 11/-