Answer Question
Answer Question
Question 1
This means that the bought the device at:
($600- cost)/ $600 = 0.25
Cost = 450
The device was sold at $450 to McKenson.
Question 2
Retailer
Using markup formula 33% markup
($299-cost) /cost=0.33
Working out
Cost = $300
Distributor 25% margin
Using the margin formula
($300-cost)/ 300 = 0.25
300-cost = 300*0.25
Cost= 300-75
Cost = $225
Manufacturer
Using margin formula
($225- Cost)/ $225 = 0.5
Cost = 225-112.50
Cost = $112.5
Question 3
The Usefulness of Distributors
Distributors are very important in a supply chain. Finding the right distributor is always a plus to the supply chain system. The following are reason as to why the company must make keep the distributors.
First it leads to the specialization of labour. Distributors normally have professionals in distribution and supply of products, hence factoring in efficiency in the company. It should be appreciated that distributors provide for economies of scale, aid in direct marketing and leads to the development of healthy relationships between the company and the customers (Ng 2008, p.28).
Distributors also enable a company to overcome discrepancies, provides for contact efficiency and provide for channel transactional, logistical and facilitating functions
Question 4
Marketing Concept and Marketing Orientation
The marketing concept is a concept which stipulates that an organization’s overall success is determined by the manner in which an organizations’ activities are aligned to meet customer needs. The main elements of the marketing concept are the customer needs and firm’s activities. The firm’s activities are processes which are organization does in order to meet the needs of the individual customers. The customer needs are the wants/ desires which the customer wants fulfilled (Hooley, Lynch & Shepherd1990, p.8).
The main elements of the market orientation are the internal and external market intelligence generation, the dissemination and coordination of information throughout the whole organization and the implementation of the intelligence.
Marketing orientation and concept are related in that an all the aspects of marketing orientation must be synchronized in the firms activities towards satisfying the needs of a customer; a system called for by the marketing concept.
Question 5
Value and it Importance in marketing
Value is a function of perceived benefits divided by cost. Over the recent past, value has come out strongly a key aspect in marketing. Ideally, it is important to acknowledge the line which separates value from a price point. There is a misconception that the value of a product or service is the specific price at which the product/ service sells at. However, the value of a product/service is its ability to satisfy the needs of the customer. However, detaching the price point and value is always a hard task. Generally, the value of a product or a service must be equal to the price at which it is being sold for. This is the reason as to why many marketing bodies and campaigns always talk of giving their customers ‘value for money’ which is basically matching a specific value to a specific price. This essay gives a critical insight into the concept of value.
Ideally, value is a perceived function in that it is subjective to what a customer, seller pr marketer perceives to as value. This explains the reason as to why value is a perceived function, hence the formula
(P)V = (P) Benefit(s)/Cost
whereby the ‘P’ represented a perceived function. From the formula and the definition of value, it is important to acknowledge that value is a tradeoff between the perceived benefits and the cost (Sánchez-Fernández & Iniesta-Bonillo 2007, p.429). On this point, it is important to give an insight into the functions of benefits and costs.
Just like value, the benefits are perceived in that they are subjective to the interpretation and the perception of the stakeholders involved. Ideally, it is important to appreciate that buyer and sellers have various perceptions as to what value is. On this note, it is important to make allusions to the expectancy value theory which indicates that each person has a specific value
expectation from a product. This expectation of value is what that leads to the development of a buyer –seller relationship. In the relationship, each of the parties tries to maximize its benefits and minimize its costs; hence ensuring that they maximize their perceived value.
The buyer – seller relationship is influenced by various factors, key among them being a price point. A price point gives a monetary value to a product or service. As indicated earlier, the price point must give an ideal allusion to the value which is given by a specific product. Giving ‘value for money’ should be the key objective of each seller, hence enabling a marketer to lure customers from the perceived value. One thing which should be appreciated is that customers just do not buy products and services; but instead buy the benefits which they promise. With this value concept, there has been a development of the customer value concept; a concept which upholds the need for giving value to the customers (Szinski & Marn 197, p.100).
Basically, a perceived value approach to selling/ marketing should aim at setting the value of a product, which is setting the benefits which customers are due to get from a product/service rather than setting a price point at which the product will be sold. However, the value created must be sustainable, hence the need to balance it by doing a check on the costs. Basically, the costs must be easily borne by the seller, hence ensuring that he/she stays in the market.
Question 6
Should there be a worry that BIG DATA will distract some firms’ managers from being customer-centric?
One of the emerging trends in the modern marketing is the use of big data movement. With the increase I interne use and advancements in technology, there has been a rise in the use of the use of technology to get crucial data for marketing purposes. The embracement of big data movement in company has elicited a heated debate as to the ethics of getting data from internet users. However, websites indicate the terms and conditions of use hence informing the users about their intentions. With respect to the performance of organizations, there has been criticism that the adoption of big data movement by organization will lead to a reduced productivity in instances when they lose their customer centeredness. However it should be acknowledged that the use of big data necessitates for a strategic plan just like any other business process. The following paper indicates why there should be no worry that some firm managers will turn from being customer centric due to the use of big data technologies.
As indicated by David Meer in his articles ‘The ABSs of Analytics’, the use of big data in marketing has received an increased use in the modern world. Ideally, the large volumes of data which is available from the online monitoring of internet users activities is overwhelming, which might in turn replicate negatively on a manager’s customer centeredness approach. However, it is important to acknowledge that the use of big data is a business process just like any other business process; hence its success or failure is based on the company’s ability to manage it strategically. Meer prescribes three basic processes which companies should put in place in order to ensure that they benefit from bid data movement in their marketing and still retain their customer centeredness.
The first basic process is a theory. Weer stimulates that an organization should make use of an appropriate theory which indicates how the organization will execute its big data movement process. With respect to the theory, companies must be precise in the exact target market that they want to reach out to. This ensures that they streamline their dig data movement towards achieving their specific objectives as per the theory (Meer 2012, p.3).
When an organization has come up with an appropriate theory, it then comes up with a strategic way of mining/ getting the data. Weer call this state ‘a day in the life’. As indicated by Weer, a company should not discount any information which might be helpful to the organization’s marketing strategies. Ideally, data mining should take as much data as possible, hence being able to link up information or data gaps which might prove out to be helpful in marketing. With the collection of data, managers should not be so much amassed in the big data movement; but rather always uphold the need for the basic marketing fundamentals.
While implementing a big data project in an organization, it is recommended that organizations carry out pilot programs/ studies which are meant to indicate how a big data movement process will be executed. In his article Meer compares this to learning to walk. Ideally, Meer points out that an organization should carry out experiments, hence learning how to use the bid data movement (leaning how to walk) before using it for marketing purposes (before running). On this stage, it is important that an organization should carry out a pilot study which ensures that it is able to plan well on all the possible occurrences during the actual data mining (Meer 2012, p.4).
Lastly, it is important for an organization to always ensure that its activities are in line with the its marketing objectives and also ensuring that it always upholds the fundamentals of marketing; a process referred to by Weer to as ‘getting to the basics’. This ensures that an organization is continuously driven towards achieving its goals strategically.
In conclusion, it can be acknowledged from this essay that getting I right in big data movement is a hard task and might ultimately lead t a lack of customer centeredness just as critics say. However, it is manageable is an organization makes use of the three basic practices discussed above. It should be acknowledged that bid data movement is a strategic process just like any other business process, hence must be managed with equal importance.
Question 7
Should managers be involved in both the Front and Back Ends of Innovation?
Some managers believe that when the product has passed through the “back end of innovation” the new product manager’s job is finished
The product development and life cycle is associated with two main phase of innovation namely the front end innovation and the back end innovation. The front end innovation entails the processes of researching, designing, testing and developing a product. This is a very crucial phase since it ensures that there is the development of a specific product which will in turn satisfy specific wants. The other phase is the back end of innovation. The back end of innovation is responsible for the product after its commercial production has started (Katz 2012, p.20). Ideally, the two phases should be interrelated; with players in the front end of innovation being involved in the back end of innovation. However, some managers believe that when the product has passed through, the back end of innovation, the job of the new product manager is finished. However, this statement is false. This essay will show why the job of the new product manager is not finished when he product passes through. The essay shows why the statement does not hold true.
First, it should there is a need for a smooth transition and relationship between the front end and back end of innovation. It should be acknowledged that a good relationship between the two ensures that the product is successful in the market. One of the basic factors which should be considered is that the back end of innovation deals with a product which was developed in the front end of innovation (Katz 2012, p.21). For this reason, the knowledge and experience of a manager who was involved in the front end of innovation is important in the back end of innovation. Moreover, the product must satisfy the requirements and standards in the market, hence its development is based on data and information which is gotten from the back end of innovation. Taking a process like marketing, it is important that the design, product specifications and utility fit the market standards so as to enable the marketing department have an edge and content while marketing it. Moreover, the front end of innovation provides the required logistics such as handling, transportation and installation which must be fulfilled in order to achieve a successful product launch.
Secondly, it is important for the front end innovation manager to get involved in the front end innovation so as to harmonize the market demands with the manufacturing process. On this point, it is important to acknowledge that manufacturing is the heart of the product and company. The more efficient the manufacturing process is, the more successful the product launch is likely to be. It is also important to acknowledge that the manufacturing volumes and preferences are dependent on the data gotten from the market, hence the need for the managers to be involved in the two phases of innovation. Katz talks about the materials and product line which are key aspects in manufacturing. From his article, it can be seen that there is a need for a manager to integrate knowledge from the two phases, hence being able to ensure that most appropriate manufacturing process is upheld (Katz 2012, p.23)
Lastly, there are many fled issues which are associated with a specific product. In addition to this, there is a need for the constant development of a product so as to match the ever changing standards in the market. This means that a product will always be finding it s way back to the front end of innovation. Moreover field issues such as the maintenance and installation of the product is dependent on the knowledge from back end of innovation (Katz 2012, p.24). For this reason, a manager should not leave a product once it passes on to the back end of innovation, but instead treat a product as a baby which he or she must see to a rich ripe age, not just leaving it once it becomes an adult.
Concluding, it has been seen from this essay that there is a need, for a manager to stay with a product in the two phases of innovation; namely the front and the back ends. From the essay, it has been seen that this is important so as to ensure that the relationship of the product in the design and development stage and in the market/commercial stage is synchronized, that the manufacturing processes are efficient and that the product development and field issues of the product are effective and strategic. Concluding, the statement that ‘Some managers believe that when the product has passed through the “back end of innovation” the new product manager’s job is finished’ is false.
References
Hooley, G., Lynch, J., & Shepherd, J., (1990) The Marketing Concept: Putting the Theory into Practice, European Journal of Marketing, 24(9,) ;7 - 24
Katz, G., (2012). The Back End of Innovation, Visions, 3 (1); 20-25
Meer,D., (2012). The ABSs of Analytics, Strategy + Business Magazine, Booz & Company,1-5
Mootee, I., (2011). Strategic Innovation and the Fuzzy Front End, Ivey Business Journal. 1(1);1-8
Ng, T., (2008). The Roles of Distributor in the Supply Chain – Push-pull Boundary, International Journal of Business and Management, 3(6): 28-40
Sánchez-Fernández ,R., & Iniesta-Bonillo, A., (2007). The Concept Of Perceived Value: A Systematic Review Of The Research, Marketng Theory, 7 (4); 427- 452
Szinski, R., & Marn,M., (1997).Setting Value, not price”, The McKinsey Quarterly,1 (1); 99-115
