Marketing; MT2 - QB; Lesson12 Flashcards
(9 cards)
Compare and contrast upstream and downstream partners in a company’s supply chain. Explain why value delivery network might be a better term to use than supply chain.
In a company’s supply chain, upstream partners are involved in providing raw materials and services for production, while downstream partners handle marketing, selling, and distribution of the final products. The term “value delivery network” better captures this process as it emphasizes a holistic, interconnected approach to creating and delivering customer value. It underscores collaboration across the network, focusing on customer-centric goals and adaptability to market changes, highlighting the mutual dependencies and dynamic nature of modern supply chains.
Why is it often necessary and advantageous to have intermediaries in a marketing or distribution channel?
Intermediaries in marketing and distribution channels are vital as they enhance distribution efficiency, bridge the gap between producers and consumers, and reduce transaction costs. They bring valuable market knowledge and extend customer reach through established networks. This specialization allows producers to concentrate on production and innovation. Intermediaries also share risks, manage inventory, provide added value services like marketing and customer support, and increase customer convenience by making products more accessible. Their role streamlines product flow and aligns distribution with consumer needs, making them an essential component in the marketing process.
How would you distinguish between exclusive and selective distribution?
Exclusive distribution limits a product’s availability to a single retailer or distributor in a specific area, commonly used for luxury or niche products to maintain control over marketing and enhance brand prestige. Selective distribution, on the other hand, allows a product to be sold through a limited but greater number of outlets than exclusive distribution. It’s suitable for premium products that need controlled availability for brand image maintenance, yet require wider accessibility than exclusive distribution offers. Exclusive distribution focuses on exclusivity and brand prestige, while selective distribution balances brand image control with broader availability.
Name and describe the three strategies available when determining the number of marketing intermediaries.
When deciding on the number of marketing intermediaries, there are three main strategies: Intensive Distribution, which maximizes product availability in numerous outlets for high visibility consumer goods; Selective Distribution, which limits intermediaries to those that align with the product’s positioning and brand image; and Exclusive Distribution, used for luxury or specialized products to maintain exclusivity and high service levels. The choice among these strategies depends on the product type, target market, and the company’s marketing objectives.
- List and briefly describe the major logistics functions. Provide an example of a decision a logistics manager would make for each major function.
In logistics, key functions include Transportation, where decisions involve selecting the most suitable mode like air or road for efficiency; Inventory Management, determining optimal stock levels for cost-effectiveness; Warehousing, choosing between centralized or multiple warehouses for optimal storage and distribution; Order Fulfillment, employing systems like automated processing for accuracy; Material Handling, investing in efficient solutions like automated conveyors; Packaging, opting for materials and methods that align with product and environmental needs; and Information Management, integrating software for real-time tracking and coordination. Decisions in each of these areas are critical to enhancing the efficiency and effectiveness of the supply chain.
As completely as possible, sketch the value delivery network for Apple Pay.
The value delivery network for Apple Pay includes Apple Inc., which develops and maintains the technology; consumers who seek a seamless and secure payment experience; financial institutions providing transaction security and processing; merchants and retailers accepting Apple Pay; technology providers offering infrastructure like NFC; telecommunications companies ensuring connectivity; regulatory bodies overseeing compliance; and marketing partners promoting adoption. This integrated network supports Apple Pay’s proposition of convenient, secure, and efficient digital payments.
With respect to Apple Pay, is Apple a producer, a con- sumer, or an intermediary? Explain.
In the context of Apple Pay, Apple functions as a producer. They are responsible for developing, managing, and providing the Apple Pay service, integrating it seamlessly with their wider product ecosystem. Unlike a consumer who uses services for personal use, or an intermediary that facilitates transactions between parties, Apple creates and offers a comprehensive digital payment solution, collaborating with financial institutions and retailers to ensure its functionality and acceptance. Thus, their role in Apple Pay is that of innovating and producing a value-added service for their users.
Identify all the reasons why Apple’s partnerships are essential to the success of Apple Pay.
Apple Pay’s success hinges on its partnerships, which enhance acceptance and accessibility through collaborations with a wide range of merchants. Partnerships with financial institutions ensure seamless payment integration, while those with technology providers guarantee secure transactions. Regulatory compliance, achieved through liaisons with authorities, ensures legal integrity. Joint marketing efforts increase visibility and user base, and collaborations for innovative features enhance user experience. Finally, global expansion is facilitated through strategic partnerships in diverse markets. These partnerships are integral to Apple Pay’s functionality and widespread adoption.
With respect to marketing channels, what are some threats to Apple Pay’s future?
Apple Pay’s future in marketing channels faces threats from increased competition offering more advantageous terms, shifting consumer preferences towards alternative payment methods or technologies, and technological advancements that could outdate its current system. Regulatory changes might impact operational costs or functionality, while security concerns could erode consumer trust. Market saturation presents a challenge in maintaining or growing market share. Apple Pay’s reliance on the Apple ecosystem could limit its user base, and varying global market conditions may hinder its expansion or effectiveness in certain regions. These combined factors pose significant risks to Apple Pay’s market position and efficacy as a digital payment solution.
