Mia Jemimah E.

Lumanog

Activity #2

Market Research and Behavior

Video 1: Value Creation

1. How do you understand Value Creation based on the video?

Based on the video, value creation is providing goods and services that customers continually find valuable. In addition
to assessing the significance of balancing the 4Ps in the marketing mix, such value creation depends on the product,
the innovation process, and an awareness of customer needs in today's trend. The value proposition describes why a
customer should purchase a good or use a service and how it will bring more value or more effectively solve a problem
than competing products or services. Once the value proposition is established, you still need to provide your target
market with value. The marketing mix defines the elements used by entrepreneurs to provide value for customers. As
a result of value creation through a marketing mix, just lke in the video the three customers have different preferences
but the company could be able to provide goods or services that are more than what the consumers gave up.

2. Why is value creation vital in every business?

Value creation is vital in business as it adds value to a company's goods and services. It is a strategy that businesses
utilize to boost revenue or expand their customers. Business is built on the creation of value. It distinguishes the
company from the competition, generates satisfied consumers, and gives your business a unique, significant solution
to attract customers. Moreover, it would make the company's outstanding service that will be viewed as a unique
object in the target audience's viewpoint when it is established value for the company.

3. What is your role, as an entrepreneur, in value creation?

As an entrepreneur, the goal is to generate profit, but in the world, wealth does not just happen by accident. Before we
can use or enjoy something, it must first be made or produced. Entrepreneurs largely drive value creation. I would
create value for others first in order to gain value for the company. While adding value for shareholders through higher
stock prices ensures the future availability of investment capital to fund operations, adding value for customers
benefits in the sale of goods and services.

Video 2: Dramatic Shift in Marketing Reality

1. What does the video convey about the dramatic shift in marketing?
In the video, consumer decision-making was easy back then. Fewer channels for product searching and limited (but
manageable) information were available to consumers. Customers could express strong preferences among the
obviously distinct alternatives because there was less fierce competition. But times have changed, and the necessity
for individualization in contemporary economies and digitization have added to the situation's complexity.

2. With this dramatic shift in marketing, how will you keep and grow your customers?
This has been a challenge for marketing managers in the commodity industry for some time. The marketing effort will
be concentrated on answering queries like what customer preferences there are for particular body care tastes and
what demands and wants to go along with this. It's crucial to understand not only the general importance of consumers
but also how many of them use skin care products since this will reveal the market share we are selling to and the
number of clients we are missing out on. Finding out the specific target audience is also essential. For instance, is the
target audience primarily women, making the segmentation gender-based, or is the target audience primarily young
adults, making the segmentation age-based? All of these types of segmentations provide marketing managers with
crucial consumer insights. It is also essential to gather data from consumers who have never used the brand or even
heard of it and those who are now using it or have in the past. This will show marketers how much of the market they
are successfully reaching through marketing efforts and how much of the market they are missing out on.

3. Suggest some customer retention strategies applicable to your proposed business or established business.
Customers are extremely difficult to acquire, so it is essential to adopt strategies to ensure that those few acquired are
kept and develop high levels of customer loyalty. Every small increase in customers results in an increase in profits,
while a decrease in customers results in losses.
In order to ensure that the company keeps a close eye on the new, existing, and even old consumers, which will aid in
bringing in new ones, focusing on customer retention and expressing it in the organization's yearly marketing strategy
is vital.