The Relationship between Customer Value and a Companys Distinctive Capabilities - Essay Example

Marketing Strategies affiliation Marketing Strategies Marketing refers to the process of informing s of the value of the product or services. This is done with the aim of enhancing the sale of the product or service. It is considered as the relation between the customers’ need for a product or service and the response they elicit in the economy. Marketing helps the products to connect with the products or services being sold. Below are questions regarding marketing, and their answers. Question 1: The relationship between customer value and a companys distinctive capabilities Customer value refers to the value derived from a product or a service by a customer. This could be low price, receiving what is desired from a product, in relation to the price paid. Company’s distinctive capabilities refer to the ability of the company to give the customer the value of the product as the customer desires. The company has to ensure that the product they are selling has some added value that will attract the customer. The prices set for products or services should suit the desire of the customer. Question 2 the role of organizational capabilities in corporate strategy The strategy of the organization is determined by the capabilities of the organization. Capabilities of a company refer to the things the company does best, to develop their business and to differentiate the products and services in the market. The capabilities of the organization must aim at meeting the demands of the customers (Zwick & Cayla, 2011). These capabilities determine the value added to the products and services. The capabilities of a company should also be exclusive to that company, so as to prevent imitation from competitors. A lot of corporate capabilities enable the company to achieve its strategy. Question 3: Important issues that should be considered in defining the product-market for a new product The introduction of a new product to the market requires the consideration of the following factors. First is the estimation of the market opportunity for the new product this will make an estimate the market prospective and the character of the opportunity. Second is to come up with a support system for the new product that will deal with the identification of issues concerning the new product. Also, consider carrying out test marketing just before launching the new product in the market. Finally, the organization could consider formulating forecast of the sales that looks into the market response to alternatives of the new product. Question 4: the marketing strategy advantages in using demographic characteristics to break out product markets into segments Segmentation of the market refers to the process used to spot major groups that have similar customer habits and the same characteristics. The advantages of market segmentation include: the company is able to set up marketing strategies that focus on the varying groups the company can develop new products or services that suit the segments (Zwick & Cayla, 2011). This method enables the company to focus on the particular groups, which other marketing programs have not reached. Segmentation makes the marketing process easy for the reasons above. Segmentation is also more efficient compared to the customary marketing methods. This leads to better results. Question 5: Review how an organizations marketing information skills and resources contribute to its distinctive capabilities The capability of a business is determined by the skills and resources. The presence of high skills that will lead to product improvement, and the availability of adequate resources will enable the firm to have high capabilities of producing products with high value. The vice versa is true. Question 6: important factors considered in selecting a target market The factors include; the clients that would yield the maximum profit for the products. The most profitable clients are chosen. Second factor is the size of the market. This market should be large enough, and should enable the business to thrive. The target market chosen should also be likeable. This is because the people that relate well with the business are easy to serve, which could lead to an increase in the market. The market target should also be easy to reach, and should have a high demand for the product being marketed. Question 7: Compare and Contrast vertical and horizontal strategic relationships between independent companies Vertical relations refer to companies that differ in the stages of the value chain working together. The companies involved remain economically and lawfully separated. It ensures; cost reduction, economies of scale, high quality, and secured supply. Horizontal cooperation is the relation between two companies that are in the same stage of the value chain an in the same industry. The companies with a horizontal relation normally trade or produce the same products (Zwick & Cayla, 2011). The firms in this relation complement each other thus gain more benefits. The relation leads to changes in the existing hubs, and the networks of distribution. It also involves cost sharing, flexibility in production, and cost coordination among others. Question 8: Identify and discuss the important issues in deciding how to organize for new product planning One should consider to carry out a test for the market, testing of the concept by presenting the concept to the consumers, screening of the new product to determine potential products, and establishing a committee for the new product. Question 9: the underlying logic of managing brand systems Brand system management entails analysis and planning of the following; the position of the brand in the market, the public target of the brand, and sustaining a preferred reputation of the brand. The management should retain a good relationship with the customers. Question 10: the advantages and limitations of the use of multiple channels of distribution by a manufacturer The advantages of using multiple channels of distribution include; they lead to an increase in sales, exposure to customers thus a high publicity, increased coverage area, and increased trust from the customers (Zwick & Cayla, 2011). The disadvantages include; decreased controls in marketing, increases costs of distribution, dilute the time spent by the staff, decrease in the economies of scale due to the increase in costs and decreased time spent working by the staff. Question 11: the role of price in marketing strategy for a particular product The price of a product plays the following roles in marketing. First price determines the targeted market since products are sold at high prices only to people who can afford them (Zwick & Cayla, 2011). Price also determines competition rate because people will buy cheaper products when considering the same product. Thus, marketing strategy has to convince the market that their product is of a better quality. Another role is demand a high demand on products will lead to higher prices; thus the amount spent marketing the product is low. Question 12: promotional, product, pricing and distribution strategies for a selected company Cadbury limited is a company that produces food products such as chocolates. The promotional strategy is the maintenance of a good brand of their properties and advertising products (Zwick & Cayla, 2011). The pricing of the products is moderate but gives the customer the desired value. The distribution of the products is mainly by the use of retailers like grocery stores. Question 13: the conditions under which a firms promotion strategy is more likely to be advertising/sales promotion-driven rather than personal selling-driven The above situation is possible when the firm has the ability to promote the products in this way in terms of finances, if the target group has access to the method of promotion, or if the firm does not have the required staff to carry out personal selling. Question 14: how to evaluate the effectiveness of a business unit sales force strategy The effectiveness of a business unit sales force can be evaluated indirectly by the income obtained after sales promotion. An increase of the income implies effectiveness of sales strategy, but lower income implies a strategy that is not effective. References Zwick, D., & Cayla, J. (2011). Inside marketing: Practices, ideologies, devices. Oxford [England: Oxford University Press. Read More