Marketing Management I - Marketing Eco System

Value Delivery Network and Marketing/Distribution Channel

A Value Delivery Network (VDN) is a system of organizations, individuals, and technologies that work together to deliver a product or service to the end consumer. It encompasses the entire supply chain and distribution channels involved in the process of creating, distributing, and delivering a product or service.

Supply Chain Management (SCM) is the coordination and management of all activities involved in sourcing, procurement, production, and logistics. It involves managing relationships with suppliers, manufacturers, distributors, and retailers to ensure that the right products are available in the right quantities, at the right time, and at the right cost.

Demand Chain Management (DCM) focuses on understanding and fulfilling the needs of the end consumer by managing relationships with customers, understanding their preferences and behaviors, and providing them with the right products and services.

Marketing/Distribution Channels are the pathways through which products and services are delivered to the end consumer. They include wholesalers, retailers, e-commerce platforms, and other intermediaries who facilitate the movement of products from the manufacturer to the end consumer.

In a Value Delivery Network, all these elements work together to create value for the end consumer. The network is designed to ensure that the right products are available at the right time, in the right place, and at the right price. By managing the entire value chain, companies can achieve greater efficiency, reduce costs, and improve customer satisfaction.

Market Segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. Targeting involves identifying the most attractive segments and developing a marketing mix that meets their needs. Positioning involves creating a unique image and identity for a product or service that sets it apart from competitors.

For example, a company that produces sports shoes might segment the market based on age, gender, income, and lifestyle. It might identify the most attractive segments, such as young adults who are interested in fitness and have a higher disposable income. It would then develop a marketing mix that appeals to this group, including the design and features of the shoes, the price, and the distribution channels.

The company would also position the shoes as a high-quality, fashionable product that is perfect for fitness enthusiasts who want to look and feel their best. By focusing on this target segment, the company can deliver more value to its customers, increase customer satisfaction, and build brand loyalty. The company can also work with its supply chain and distribution partners to ensure that the shoes are available in the right locations, at the right time, and at the right price.

Marketing Eco-System

Marketing ecosystem refers to the interconnected network of organizations, individuals, technologies, and processes that work together to create, deliver, and capture value for customers. In a marketing ecosystem, various stakeholders collaborate and coordinate their efforts to meet the needs and preferences of the customers.

For example, consider the marketing ecosystem of a food and beverage company. The ecosystem includes farmers, distributors, wholesalers, retailers, packaging suppliers, advertising agencies, and consumers. The farmers supply raw materials such as fruits, vegetables, and grains to the company, which are processed into finished products such as snacks, beverages, and frozen foods.

The distributors and wholesalers transport the products to retailers such as supermarkets, convenience stores, and restaurants, who sell them to the end-consumers. The packaging suppliers provide packaging materials such as cans, bottles, and boxes to the company, which are used to store and transport the products.

The advertising agencies help the company to promote its products through various channels such as TV, radio, print, and digital media. The consumers provide feedback on the products, which helps the company to improve its offerings and better meet the needs and preferences of the customers.

Thus, the marketing ecosystem of a food and beverage company consists of various stakeholders who work together to create, deliver, and capture value for the customers. By understanding and managing the marketing ecosystem, the company can improve its marketing performance and build strong relationships with its customers.

In a marketing ecosystem, the stakeholders can be broadly classified into five categories: suppliers, company, marketing intermediaries, final consumers, and competitors. Here is how each of these stakeholders fits into the marketing ecosystem:

1. Suppliers: Suppliers provide the raw materials, components, and other resources required by the company to produce goods or services. For example, the suppliers of a car company may provide steel, tires, engines, and other parts that go into making a car.
2. Company: The company produces goods or services that are marketed to the customers. The company may also engage in marketing activities such as advertising, sales promotion, and personal selling to reach out to the customers.
3. Marketing intermediaries: Marketing intermediaries are the middlemen or intermediaries who help the company to distribute its products to the final consumers. Examples of marketing intermediaries include wholesalers, retailers, and logistics companies.
4. Final consumers: Final consumers are the individuals or organizations that purchase and use the products or services offered by the company. The company's marketing efforts are aimed at identifying the needs and preferences of the final consumers and developing products that satisfy these needs.
5. Competitors: Competitors are the other companies that offer similar products or services to the final consumers. Competitors are an important part of the marketing ecosystem as they influence the company's marketing strategy and help the company to improve its offerings.

Overall, the marketing ecosystem is a complex network of stakeholders who are interconnected and interdependent. By understanding the role of each stakeholder and managing the relationships among them, the company can create a sustainable marketing ecosystem that delivers value to the customers and generates profits for the company.