Lesson-6: Discussion Questions (Based on chapter 15 &
16):
1.
Progressive companies have begun developing a value network system to get
products in the hands of consumers. A value network includes a firm’s
suppliers, its suppliers’ suppliers, its immediate customers, and their end
customers. Identify a company that has successfully set up a value network,
then compare and contrast the components of the value system to a competitor
that does not have one.
DQ No.1) Answer:
A value network system refers to the process
of building strong relationship among the company, its suppliers and immediate
customers. It is one of the most important value creating processes by
developing partnership relationship with close associates of the company. In other
words, it is a value creating process through an interdependent relationship
among suppliers, the company and its valuable customers. Producing a product
and making it available to ultimate customers is not an easy task for any
company. It is considered as the series of different departments that carry out
value-creating activities to design, produce, market, deliver, and support a
firm's product or services. As Value network system focuses on building a
strong relationship among suppliers, distributors, and customers that links raw
materials, components and manufactured goods and how to move ahead towards the final
consumers.
Here is an example of how McDonald's value network system is working
effectively to deliver superior customer value than other competitors. As you
know, McDonald is one of fastest growing restaurant companies in the world.
Just think a little bit about how it is maintaining its value network system
all over the world. For this, McDonald needs to look beyond its own value chain
and into the value chains of its suppliers, distributors, and, ultimately, its customers.
McDonald has approximately 30,000 restaurants in more than 100 countries
serving more than 52 million customers daily. Consumers are more likely to prefer
the McDonald's system, not just to its food product, rather than that, it is successfully
in making partners with its franchisees, suppliers, and others in order to deliver exceptionally high
customer value.
Here is an example that compares and contrasts the components between
McDonald and KFC fast Food companies. McDonald, as told above, has good value
network which is far better than KFC Company because McDonald has more partners
with its franchisees, suppliers and customers than KFC. KFC focuses on only
limited items than McDonald does.
However, both companies are good at delivering their values to their
respective customers. So, both of them are able to create more potential
customers and running at a profit due to good network value system.
References:
- Kotler, Philip & Keller, Kavin.
(2012). Marketing Management.
Addison-wesley: Prentice Hall.
- (n.d.). Retrieved from
http://en.wikipedia.org/wiki/Value_network_analysis
2. Describe the hybrid channel of
distribution. Do you think Internet sales will grow in the future or will customers
demand hybrid distribution choices like free shipment to store sites (Wal-Mart)
or a pick-up store (IKEA)?
DQ No.2) Answer:
Hybrid channel of
distribution refers to an activity of using two or more than two channels by a
company for managing its distribution channels effectively and efficiently. Today’s
marketing organizations are using more than one channel to get a competitive
advantage by providing superior customer value. It is very useful these days
because a company cannot achieve its efficiency by using just single channel so
that it needs to use different marketing channels to approach different target
consumers. Multi-marketing channels help to reduce costs, expand its market
coverage, and convert potential customers into profitable customers.
In addition, customers like
to have more options in the future while buying a particular product or
service. This is only possible when a company uses hybrid distribution channel
for providing customer superior value than competitors do. It is understood
that many customers are likely to spend more time with the companies who use
two or more than two channels to satisfy customers’ needs and demands. However,
to make it more effective, it is necessary to understand the customers’ needs
and wants before deciding whether to use hybrid or single distribution channel.
The trend of internet sales is increasing day
by day. Many people don’t have much time to buy the products by visiting real
stores or outlets. The internet is providing an ease platform for busy and
working people. It seems that our lives will be busier and even less time will
be left for purchasing. I think, most of customers in developed countries like
USA, UK are already started using internet sales, and this trend will keep
growing due to increase number of smart-phones and information technology. On
the other hand, it is also true that customers are demanding hybrid
distribution channels or pick up store as they want more for less. For example,
Wal-Mart and IKEA are also getting more success than ever before. Nowadays,
many companies have started to provide goods and services through multiple
channels, and it is quite preferable than just using a single channel. However,
in my opinion, the use of internet sales will grow faster than the use of
multiple channels in the future because many companies have started to sell the
products or services through internet selling, and also, customers started to
buy through it as a fun and convenient.
References:
-
Kotler,
Philip & Keller, Kavin. (2012). Marketing Management. Addison-wesley:
Prentice Hall.
-
Local
Mentor- Subash Chandra Baral
3. Chapter 16 identifies four
levels of service in retailing—self-service, self-selection, limited service,
and full-service. Visit at least one of each type of the described retailers
and are to comment vis-à-vis the retailer-positioning map (Figure 16.1). Answer
the following relative to your shopping trip: Did you experience a dissonance
between the service you received and their initial characterization of the
store? In other words, did you receive “better” service than you initially
expected to receive from a self or limited service retailer? Did you experience
a “lack” of service from the store you perceived as “full service”? If either
of these conditions occurred, postulate a causal relationship for the
occurrence.
DQ No.3) Answer:
Retailing is a process of
selling activities by a retailer in which goods and services are directly sold
to its end consumers for personal or non-business use. It is a part of an
integrated supply chain process where a retailer buys goods and services in
large volume form wholesaler or producer in order to sell them in smaller
quantities to its ultimate customers by taking a certain profit margin. It can
be done either locating its place in fixed area like retail stores or markets,
or door-to-door selling. Today’s marketing world, there are lots of stores that
are offering goods and services by differentiating its quality, prices,
convenient locality, and
after-sale-service etc. some of the examples are retail stores,
department stores, supermarket stores, and drugs store etc. Consumers’
preferences are affected by several service levels that are discussed in the
following paragraphs.
1.
Self-service: Self service refers to the practice of
serving ourselves by purchasing needed goods and services. This allows enough freedom to its customers
for choosing whatever they want to buy from the retailing stores.
For example, recently I
visited to Bhatbhateni Supermarket for shopping a winter jacket where a lot of
retailing stores were there. The most interesting thing was that I was given
enough freedom to select the jacket that I really wanted to buy. There were
good staffs staying everywhere to assist me if required. But it was quite fun
for me to choose from a variety of jackets. Thus, I felt no dissonance in this
supermarket because I got the services that were characterized by its
popularity in Nepal.
2.
Self-selection: Self-selection refers to the practice of choosing
goods from the retailing for our own purposes. It provides more options to
select our needed goods and services.
As I said above, In Bhatbhateni,
I chose a specific retailing store for buying my own jacket. I was feeling
quite free to move on any product or department. First of all, I was confused
to select which retail stores were better but I asked one staff for finding a
better store for a jacket. In this case,
I also got what I was expecting to get so that I felt better experience here
too.
3.
Limited service: These retailers carry more shopping goods,
and customers need more information and assistance during the purchasing of
goods and services. These retailers provide us very limited services like no
credit allowed but may have freedom to choose the goods and services.
For instance, last Friday I
visited to Civil Mall for buying a LCD TV, one of the supermarkets, I found
many shopping verities with different ownership. However, I did get the service
that I was thinking to get from this supermarket like credit service so that it
disappointed me instantly.
4.
Full service: In these retail stores, salespeople are
assisted from the first phase of purchasing to the last phase of buying goods
and services. Some retailers, who think that providing full service is an added
value to its customers, are likely to use full-service, and in return, they
charge high prices for the services they provided.
Like I said above, I was thinking to get a
home delivery service for LCD TV, but I did not get as I expected to get as a
part of full services from this supermarket store. In this case, I felt lack of
services which need to be offered to potential customers like me.
Hence, having discussed all the above, there
are basically four levels of services that are available in the retail stores.
It is interesting that customers’ preferences are affected by those four
services while purchasing the particular products or services like I felt
between Bhatbhateni supermarket and Civil Mall. So, it seems that if customers
are happy with the store then they are likely to be a potential customer and
think positively towards it and vice-versa.
References:
- Kotler, Philip & Keller,
Kavin. (2012). Marketing Management.
Addison-wesley: Prentice Hall.
- Local Mentor: Subash C. Baral
4. Atmospherics is an important
component of store attractiveness. Every store has its own unique look, feel,
and smell. Yet each consumer may react differently to each of these elements.
Visit three retailers of your own choosing and comment on how the store
atmospherics affected you personally. Have a friend of the opposite sex visit
the same retailers. roup the findings by sex. Why are there such differences?
What can a store do to appeal to both sexes?
DQ No.4) Answer:
Atmospherics refers to the surroundings that
are likely to attract or repel customer for purchasing decisions. Atmospherics
includes the store layout, noises, temperature, lighting and decorations etc.
it is necessary to design them effectively in order to attract more customers
for long-lasting effect. It needs to be set up as the preferences of customers
so that they frequently visit to buy the goods and services. For making a
positive impact, every store has to design the atmospherics in such a way that
is quite better than other competitors. However, it is not guarantee that if it
is designed properly then they visit repeatedly because each and every customer
may feel it very differently. The common belief is that if it is managed
properly then more customers are likely to visit in the future.
Here I will share my own experience regarding three retailers’
atmospherics which affected me personally. They are described as follows:
1. Civil
Mall: Civil mall has strived to
lure more customers through different and unique features like QFX Cinemas,
well architecture, games station, and verities of shopping retailers. It is
quite fascinating and attractive in comparisons to other malls of Kathmandu.
2. The
Kathmandu Mall:
Though Kathmandu Mall is located at the heart of Kathmandu, Nepal, the
architecture, interior and exterior designs are not good as much as it should
be to attract new customers. However, it is true that I found a variety of
products and services for clothing and cosmetic items.
3. Bhatbhateni
Supermarket: The
architecture, exterior and interior designs of the whole building and blocks
are attractive. All products are placed systematically to attract more
customers. It is offering a variety of product and services such as kitchen
items, groceries, clothing items, cosmetics and others which attracted me to
enter there.
As one of my friends, she also visited with me but our likings and
disliking towards respective stores are quite similar but not totally the same.
It is surprisingly true that male and female have some differences in looking
the same malls. It is due to sex factor because males are not like the same as
females for various things. As we know,
people are more likely to be attracted on those things which they usually
prefer to have. Also, they are different in nature and basically females want
to buy more cosmetic items than men do. The color most females preferred is
pink whereas Males’ preferences are not the same as women do. It can be noticed
that some differences are there between male and female due to cultural
differences, Psychological differences, and behavioral differences and so
forth.
However, a store can appeal both sexes by doing following activities:
1.
Providing
a variety of products or services for both sexes: If a store has only products
related to males, then males are less likely to visit a store. Thus, a store
has to offer an array of products that match both sexes.
2.
Giving
attractive discounts/bonuses for both sexes: A store has to lure the both sexes
by offering discounts or bonuses. For instance, Buy one and get one free.
3.
Designing
atmospherics as good as possible: A store can appeal both sexes by designing
and architecting its surroundings as beautiful as possible.
Hence, having said all the above, it is
understood that atmospherics is one of the important marketing tools to attract
more customers so that it should be managed properly and effectively. We as a
marketing future manager needs to think all these factors including
atmospherics which have a great impact for appealing both sexes to buy the
products or services.
References:
-
Kotler,
Philip & Keller, Kavin. (2012). Marketing
Management. Addison-wesley: Prentice Hall.
-
(n.d.).Retrieved from
ntt://en.wikipedia.org/wiki/Atmospherics/
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