Discussion 6

Follow the instructions below to participate in this discussion forum. NOTE: Do not post attachments!

Week 6 Reading: Chapter 11&12

Word Length Requirement: 250

References Requirement: Minimum of 2

Answer the following: After posting your original response, read other postings and post a response to at least two classmates using the following ABC Approach.

1. Why do marketing professionals care about distribution channels, supply chain and logistics decisions?

2. Do you believe that prices should reflect the value that consumers are willing to pay or should prices primarily reflect the cost involved in making a product or service? Defend your answer.

CAN YOU PLEASE PROVIDE ANSWERS TO THESE QUESTIONS AS WELL? i HAVE TO RESPOND TO TWO CLASSMATES!!!

1. Why do marketing professionals care about distribution channels, supply chain and logistics decisions?

Marketing professionals follow a product from start to finish. Marketing does not halt once a consumer has purchased a product or a service. Ensuring a product is shipped and received in an appropriate manner will ensure loyal customers.

Distribution channels are the exchange of products from a supplier or producer to the consumer or other businesses. Products being exchanged safely to prevent damages to the product and guarantee the customer receive the products as it was shipped from the producer is pertinent and reasons why marketing professionals care about distribution channels.

Just as marketing professionals follow start to finish, supply chain includes all aspects of products from the beginning to the end as well. A supply chain represents all organizations involved in supplying a firm, the members of its channels of distribution, and its end-user consumers and business users (Marshall, 2019).

Logistics is receiving of inbound products or shipping of outbound products. Marketing professionals care about logistics because it is the process of getting items to the consumer or other business. Goods receipt of any product nears the end of the cycle. Once a customer received their product, the customer is happy with the entire process or unhappy. Any setback in distribution channel, supply chain or logistic could produce an adverse effect on customer loyalty. These are reasons why marketing professionals care about distribution channels, supply chain and logistics.

2. Do you believe that prices should reflect the value that consumers are willing to pay or should prices primarily reflect the cost involved in making a product or service? Defend your answer.

As a consumer, I think prices should reflect the cost involved in making a product or service plus a little extra added to compensate the business. Businesses should be compensated for time, building expenses and utilities if there is a brick and mortar. Internet expenses if there is an online store. I do not believe that prices should reflect what customers are willing to pay because that could be an outrageous number is customers are in dire need.

Cigarettes is a great example on charging the price people are willing to pay. Cigarettes is an addictive habit and companies know that consumers are willing to pay whatever for a pack. In 1988, a pack of cigarettes costed an average of $1.30. In 2014, a pack of cigarettes cost an average of $5.84 and even more expensive in 2020. People have told me if cigarettes went over a certain dollar amount, they would stop smoking but with this addictive habit it is a hard task even with cigarettes being so expensive.

SECOND PART

Why do marketing professionals care about distribution channels, supply chain and logistics decisions?

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. (Kenton,2020).

Supply Chain Management involves the management of materials, information, etc. from the suppliers to the physical distribution of the finished products to the consumers which encompasses logistics, material handling, and purchasing. This area of marketing if properly executed reduces costs to a great extent. This is the reason this arm of marketing is gaining much importance, and organizations constantly strive to employ a right candidate for this role. (ABC of marketing,n.d)

The approach of marketers to supply chain-based decisions depends on the product being marketed. In the case of consumer goods, marketers consider the various costs incurred in the supply chain, including quality costs, landed costs, input costs, supplier relationship costs and costs. logistics, etc. The main goal of marketing professionals here is to reduce the costs incurred in the supply chain and simultaneously increase the value of the product. Marketers use this supply chain cost information to improve product performance. Pricing decisions are made based on the cost analysis involved in the supply chain. Marketing professionals also decide to add more value to the product based on supply chain costs.

2. Do you believe that prices should reflect the value that consumers are willing to pay or should prices primarily reflect the cost involved in making a product or service? Defend your answer.

In the case of marketers looking to increase product value, pricing should above all reflect consumers’ willingness to pay. This value-based pricing method differentiates the company from the rest of the companies in the market by adopting cost-based pricing on a majority basis. Marketing professionals adopt value-based pricing based on the customer’s perceived value on the product to differentiate them from the rest of the market by gaining a competitive advantage. The important aspect of value-based pricing is that it reflects the will of consumers by obtaining consumer feedback on perceived value and quantifying that value to set the price of the product. This method gives importance to the consumer in setting the price and helps the company to differentiate its product in the market.