Marketing: Real People, Real Choices 9th Global Edition by Greg W. Marshall Solution manual

 
 
 
 
 
 
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3.2.2   Add Value through the Value Chain
Many different players—both within and outside a firm—need to work together to create and deliver value to customers. The value chain is a useful way to appreciate all the players that work together to create value. This term refers to a series of activities involved in designing, producing, marketing, delivering, and supporting any product. In addition to marketing activities, the value chain includes business functions such as human resource management and technology development.
 
The main activities of value-chain members include the following:
Inbound logistics: Bringing in materials to make the product
Operations: Converting the materials into the final product
Outbound logistics: Shipping out the final product
Marketing: Promoting and selling the final product
Service: Meeting the customer’s needs by providing any additional support required
 
We have organized this book around the sequence of steps necessary to ensure that the appropriate value exchange occurs and that both parties to the transaction are satisfied—making it more likely they will continue to do business in the future.
3.2.3   Consumer-Generated Value:  From Audience to Community
One of the most exciting new developments in the marketing world is the evolution of how consumers interact with marketers.  Haul videos are videos consumers post on YouTube that detail the latest stuff they bought. Consumer-generated content include:
Ghirardelli Chocolate broadcast consumer-generated comments in New York’s Times Square about when and where they most enjoyed eating its chocolate squares.
At iReport, budding citizen journalists can upload photos and videos to CNN in response to breaking news.Figure 1.2   Snapshot: Apple’s Value Chain
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 1.3 Process:
Create and Deliver Value

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3.2.4   Consumer Generated Value: Social Networking
Consumers also create value through social media, Internet-based platforms that allow users to create their own content and share it with others who access their sites. On social networking platforms, a user posts a profile on a website and he or she provides and receives links to other members of the network to share input about common interests.
Cloud is a network of servers that provide an almost infinite amount of storage space.
Social networking is an integral part of what many call Web 2.0, the new generation of the World Wide Web that incorporates social networking and user interactivity. Web 3.0 refers to the current generation of the web that offers consumers real-time instant communications through live chats and instant messaging and marketers the ability to track customers’ online behavior. Web 4.0 gives consumers access to thousands of apps and makes the ability to use their smartphones and tablets to access brands anywhere and anytime a necessity.
The web categorizes entries according to folksonomy rather than “taxonomy.” In other words, sites rely on users rather than pre-established systems to sort contents.
The “Wisdom of Crowds” perspective (from a book by that name) argues that under the right circumstances, groups are smarter than the smartest people in them are. If this is true, it implies that large numbers of (non-expert) consumers can predict successful products. Marketers rely on crowdsourcing when they outsource marketing activities to a large group of people, often through a social networking community.
 
 
 
 
 
 
 
 
 
 
 
 

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3.3  Value from Society’s Perspective
Every company’s activities influence the world around it in ways both good and bad. We must consider how marketing transactions add or subtract value from society. Companies usually find that stressing ethics and social responsibility also is good business, at least in the long run.
 
3.3.1  The Dark Side of Marketing and Consumer Behavior
Whether intentionally or not, some marketers do violate their bond of trust with consumers. Despite the best efforts of researchers, government regulators, and concerned industry people, sometimes consumers’ worst enemies are themselves—our desires, choices, and actions often result in negative consequences to ourselves and the society in which we live.