Core Marketing Concept-LV

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Neo Cabby MM

Keepall 55 with Strap

Cabas Ipanema GM

What is Core Marketing Concept?

Background

• A French fashion company since 1854.

• Known for bags and trunks.

• Internationally expanded.

Needs, Wants and Demands

• Needs - State of felt deprivation• Target to specific groups based on

their: 1. Social needs; 2. Esteem needs• Wants – specific objects that can

satisfy needs shaped by culture and individual personality.

• Prada, Gucci, LV, Chanel, D&G, Versace…

Cont’• Demand- backed with buying power– Eg. I want LV and I can buy it.. Which

one to choose?– In Malaysia, it can range from RM800-

RM5000, depending on the brand

$255.0

0$245.0

0 $45,352.0

0$459.0

0

Products

• Anything (satisfies wants and needs)• Not limited to physical objects.• For LV… It’s all the physical objects• Customer services not fair– Casual vs. Glitz and Glamarous

• There are options to choose from:– Cabas Ipanema GM

Value, Satisfaction and Quality

• Value- cost and benefit

• LV is a luxury brand. – fine craftsmanship, tradition, style and

exclusivity– “ordinary people” buys imitation

COST BENEFIT

-Expensive -Stylish and trendy

-Imitations hard to control

-Satisfy social and esteem needs

Satisfaction

• Satisfaction of product varies.

• Does it meet buyer’s expectation?

• $$$???

Quality

• Product performance Customer Satisfaction

• TQM– Quality of the leather, frame of trunk

Defects?– Colours used – Shape of the item

Exchange, transactions and relationships

• Exchange- obtaining something by offering something in return - satisfy needs

• It can be an intra thing.– Friends Friends– Family Family

Conditions to Exchange

• 2 parties• Something of value to another• Willing to deal• Can make a choice• Communicate and deliver

Transactions

• An element of exchange• Must have agreement on T&C

Relationship

• Customers and stakeholders• Make sure everyone is happy.• Customer satisfaction- More profits

Market

• Actual and potential buyers of a product, where sellers make the industry

– Authentic LVs- Higher income, wealthy

– Counterfeit LVs- Average or lower income, not well-off

Customer, company and competitor

CUSTOMER-Any party exchanging with organization

COMPETITOR-Alternative entity

COMPANY-Entity making the offer

The End

Thank you for listening.