Marketing Essay Example | Topics and Well Written Essays - 1750 words - 1

Marketing - Essay Example Some customers are price sensitive whereby, an increase in price may cause the customers to buy from competitors. On the contrary product/service involves taking into consideration the needs and wants of a customer. Finally, promotion entails creating awareness about the product or service being offered by the company. This may involve taking into consideration the methods that the company will use to promote their product as well as determining the methods used by their competitors (Hoffmann, 2008). Therefore, this study aims to provide an insight of how the company achieves advantage of delivering value to the consumers and to what extent. 1. â€Å"A company achieves advantage by delivering superior value to its consumers in the marketplace†. To what extent do you agree with this statement and why? A company achieves advantage by delivering superior value to its consumers through utilization of value chain approach/model as proposed by Porters. Different companies tend to ha ve numerous activities that are being involved in the conversion of raw materials to finished goods so as to deliver superior value to their customers. Those activities may be broadly classified into two categories namely; primary activities and secondary activities /support activities within the value chain model. Primary activities comprises of five major activities/ operations namely; inbound logistics, outbound logistics, operations, marketing and sales, and services. On the contrary, support activities include; procurement, human resource management, technological development and infrastructure (Saha, 2011). The value chain creation model may be presented in the diagram below. Primary Activities The value Chain Support/secondary activities Source: The five primary activities involve all operations that are aimed at delivering superior value to the customers. Under this section there are activities such as; inbound logistics. Those are operation that is attributed to handling of goods and services within the company. Additionally, inbound logistics involves activities such as material inputs and acquisition, warehousing activities as well as inventory control. Material input and acquisition are those operations that are carried out to ensure that there is proper flow of all the necessary materials and equipments that might be required in order to come up with a finished product that can deliver superior value to the customers. Material input and acquisition further involves determining the most appropriate vendors to supply the company with the necessary raw material in a cost efficient manner. Therefore, procurement managers, operation managers and finance managers should carry out a prior assessment of the most appropriate vendor who can supply raw materials at a minimal cost. This may help to minimize the cost of material acquisition while at the same time ensures that materials obtain deliver superior value to the customers and further enables the comp any to make profits. Both procurement manager and finance manager should collaborate to ensure that materials available in the warehouse are in proper condition. Moreover, they should carry out inventory valuation to determine when to order new material (re-order point) and when to dispose the available stock. This may help to ensure there is efficiency in the flow of raw materials and finished goods within and outside the company