Using Marketing Channels And Price To Create Value For Custo

Using Marketing Channels And Price To Create Value For Customerslearni

Using Marketing Channels and Price to Create Value for Customers Learning Outcomes Marketing Channels. Student can outline a multi-channel distribution system Marketing channel strategy. Student can recommend a marketing channel strategy for a product or service offering that assures the correct amount of intensity. Value chain. Student can discuss how each channel in the product or service offering adds value to the customer.

Pricing strategy. Student can analyze a current pricing strategy and make recommendations for modifications. Directions This assignment assesses your ability to relate marketing mix concepts of distribution and pricing to your product or service offering. You will also have a chance to recommend new distribution and pricing strategies based on your new target market to meet their needs. Prepare your assignment beginning with a title page to include your name, your product or service name, and the name of your target market.

Then answer each of the following four questions in order numbering each of your responses. There is no need to repeat the question. Marketing channels. To the best of your ability, outline the marketing channels of your product or service offering as they currently exist. Refer to Figure 6.2 for some ideas.

Most product and service offerings will have more than one channel, so your system should include at least two, for example (1) a direct channel for internet sales: manufacturer --> customer; and (2) an indirect channel such as manufacturer --> distributor --> wholesaler --> retailer --> customer. If your product or service only has only a direct channel, explain why. Would this channel strategy change as a result of your new target market? Why or why not? Marketing channel strategy.

Why type of distribution intensity strategy does your product or service currently use? How do you know this? Would this distribution intensity strategy change for your new target market? Why or why not? Value chain.

Referring back to your marketing channel diagram, discuss what each member of the value chain does to bring value to the consumer. Pricing strategy. Referring to the various pricing strategies outlined in the week's readings, which one does your product or service currently use. Would you recommend any changes for your new target market? If so, how would you change it and why?

Be sure to follow all of the submission requirements outlined in the syllabus and provided below again for your easy reference: • Prepare as a word processed document (such as Microsoft Word). • Your assignment should be the equivalent of two pages of double-spaced text, approximately 1/2 page for each of the four questions. • Be sure your name, writing assignment number, and the name of your product or service are on the first page of your writing assignment. • Use a simple 12-point font such as Times New Roman. Use black ink for majority of your work and only use colors if it enhances your ability to communicate your thoughts.

Paper For Above instruction

Introduction

Creating value for customers involves strategically designing marketing channels and pricing strategies that effectively meet customer needs while optimizing organizational objectives. A well-structured marketing channel system ensures that products or services are accessible to target consumers efficiently, while pricing strategies influence perceptions of value and competitiveness. This paper explores the current marketing channels, distribution intensity, the value chain, and pricing strategies for a selected product/service, considering potential modifications to enhance value delivery to a new target market.

Current Marketing Channels

The product selected for this analysis is a premium organic skincare line. Presently, the marketing channels comprise primarily direct sales through an official website, complemented by indirect channels such as retail partners and authorized beauty salons. The direct internet sales channel operates as manufacturer --> customer, allowing for control over branding and customer experience. Indirectly, the manufacturer distributes products via authorized retail outlets and salons, which serve as intermediaries to reach a broader customer base. This multi-channel approach facilitates wider reach while maintaining control over branding and customer engagement. If the target market shifts to younger consumers valuing online convenience and personalized experiences, the channel strategy might lean more heavily toward digital direct channels, enhancing online sales and social media engagement.

Distribution Intensity Strategy

The current distribution intensity strategy is selective, focusing on high-end retail outlets and exclusive spa locations. This approach ensures premium positioning and maintains brand prestige. The strategy is evident in the limited but strategic placement of products at select high-end retail partners. To adapt this to a new, more price-sensitive target market, perhaps younger consumers seeking affordability and accessibility, a shift toward an intensive distribution strategy may be necessary. This would involve expanding availability to mass-market retailers and online marketplaces to increase reach and cater to lower price points, aligning distribution intensity with consumer expectations.

Value Chain Analysis

Within the existing value chain, each member contributes uniquely to value creation. The manufacturer invests in high-quality organic ingredients, ensuring product efficacy and safety, which appeals to health-conscious consumers. Packaging and branding teams enhance product appeal and communicate value propositions. Retailers and salons provide personalized customer experiences, fostering brand loyalty and credibility. Distributors facilitate efficient logistics, minimizing delays and maintaining product freshness, thus adding value through reliability. Each link in the chain aims to elevate perceived value, ultimately benefiting the end customer through quality assurance, accessibility, and trusted service providers.

Pricing Strategy

The current pricing strategy is primarily premium pricing, justified by organic certification, high-quality ingredients, and exclusive branding. This approach targets consumers who associate higher price with superior quality and are willing to pay a premium for health-conscious products. However, for a new target market consisting of younger, budget-conscious consumers, a value-based or penetrative pricing strategy could be more appropriate. This might involve introductory discounts, bundling, or tiered pricing to attract first-time buyers and build brand loyalty. Gradually, as brand recognition strengthened, prices could be adjusted to reflect value perception and market positioning.

Conclusion

Effective management of marketing channels and pricing strategies is vital in creating and delivering customer value. A flexible distribution approach that aligns with target market preferences, complemented by tailored pricing strategies, can optimize market penetration and customer satisfaction. By analyzing current strategies and proposing modifications relevant to a new target market, businesses can enhance their competitive advantage and foster long-term growth.

References

  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  • Armstrong, G., & Kotler, P. (2015). Principles of Marketing (16th ed.). Pearson.
  • Rosenbloom, B. (2013). Marketing Channels Management (8th ed.). Cengage Learning.
  • Coughlan, A. T., Anderson, E., & Pearson, M. (2019). Marketing Channels (8th ed.). Pearson.
  • Berman, B. (2018). Retail Management. Routledge.
  • Lamb, C. W., Hair, J. F., & McDaniel, C. (2018). MKTG, Principles & Practice (12th ed.). Cengage.
  • Day, G. S. (2017). Managing Market Relationships. Sage Publications.
  • Jain, R. (2019). Pricing Strategies for Business Growth. Journal of Business Research, 105, 240-250.
  • Schindler, R. M., & Dibb, S. (2018). Strategic Marketing Channels. Journal of Marketing Channels, 25(1), 5-15.
  • Porter, M. E. (1985). Competitive Advantage. Free Press.

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