Business Processes

As discussed in chapter 14, business processes are composed of bundles of interconnected activities that stretch across firms in the supply chain; they represent key areas that some or all of the involved firms are constantly working on in order to reduce costs and/or generate revenues for everyone throughout supply chain management. There are eight critical business processes on which supply chain managers must focus:
1. Customer relationship management
2. Customer service management
3. Demand management
4. Order fulfillment
5. Manufacturing flow management
6. Supplier relationship management
7. Product development and commercialization
8. Returns management

The customer relationship management process allows companies to prioritize their marking focus on different customer groups according to each group's long-term value to the company or supply chain. The customer service management process presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced. Demand management process seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior. Order fulfillment process is a highly integrated process, it is often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time. Manufacturing flow management process is concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process. Supplier relationship management process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers. Product development and commercialization process includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms. Returns management process enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain.

In my opinion, supplier relationship management process is the most important because it supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers. This is very important because it is a key step toward ensuring that firms' manufacturing resources are available. This has a direct impact on each supply chain member's bottom-line financial performance. This is also important because communication is key and the employers should always communicate with their employees to make sure that they know what is going on within the company/firm.

What business process do you think is the most important? Do you think one is more beneficial to have when working in a company/firm?

Response to Jade Brulotte

Do you think this ad is a clever way to sell more of a product they have already promoted in the past?

Yes, I think that this ad is a clever way to sell more of a product that they have already promoted in the past because if the company is trying to tell what people think that is why they are putting an ad out that is geared towards women's hair preferences for men then they are able to sell the product more. For example, I believe that this could work because most men would want to see what women prefer because they are trying their best to target them because they want to show off towards women and they want to do that in the best way possible.

I know for most women they do not think that a lot of hair on the chest is attractive. As Jade has stated, from an article about how back in the 60's and 70's men who had chest hair were attractive whereas now it is with men who have polished torsos and well defined six packs and pecs. I believe that this is true because women nowadays are attracted towards men who are muscular and in shape with six packs whereas if they are not. 

What is your own preference of men? Do you think that chest hair is more attractive in the past as oppose to the present?

Alternative Channel Arrangements

A producer uses several different or alternative channels, which include multiple channels, nontraditional channels, and strategic channel alliances. Each of these channels can be used to its own advantage.

Multiple channels is when a producer selects two or more channels to distribute the same product to target markets. This channel can be used to its advantage because more people are shopping online, therefore the number of retailers that are using multiple distribution channels are increasing. For example, Victoria's Secret sells their products in stores, online, and even through catalogs. This is very beneficial to their company because they are selling their products in different ways. Therefore, they have the ability to get more customers to buy their products because they are technically selling in three different areas.

Nontraditional channel arrangements help differentiate a firm's product from the competition. These include the Internet, mail-order channels, or even infomercials. An example of this is Redbox because you can find them in different stores such as Walmart, Walgreens, and they are even installing them in local gas stations too. Customers can also reserve their movies online in order to see which movies are available at the time being. Redbox has become very popular over the years and people don't go to different stores to rent their movies anymore because Redbox has come to the point where they are only charged $1.00 a night and it is much cheaper then renting a movie.

Strategic channel alliance is a cooperative agreement between business firms to use the other's already established distribution channel. For example, there was a signed contract between Verizon Wireless and the National Football League in allowing Verizon to broadcast live Sunday afternoon football games to their fans. This is becoming more successful in the business because sometimes working together can be very beneficial.

In my opinion, I believe that all three of these channels are beneficial in their own ways. But, I feel as if multiple channels is the one that I would choose because I am a typical girl who likes to shop. With the producer selecting two or more channels to distribute the same product to target their marketers I think that this is their most strong point because they are thinking of what is best for their company and how they can target their customers more and more. Making their products available in store, online, and even through catalogs is superb because everyone has their own preference and they have the ability to choose how to purchase their product.

Which alternative channel arrangement would you prefer and why? Do you think that one is more effective over the other? How so?

Response to Kaley DeBoer

I think that each market segmentation has its own benefits when establishing a target market and it also depends on the product. I believe that each market segmentation has to be included into the factor when they are trying to target the market because of their different advantages and disadvantages. For example, the different brand names such as Abercrombie and Hollister tend to be very popular in today's society. But, in most cases most people can not afford to spend $60-$90 on a pair of Abercrombie or Hollister jeans. Or in another case scenario, Abercrombie and Hollister are targeted more towards teenagers and people who are in their 20s as opposed to children or older people. In these cases, they are experiencing with demographic segmentation because they are marketing by the age and income. It would be very beneficial to consider all of the segmentations when determining to target a market. That way each segmentation can have their own advantage and not be excluded when they are trying to target a certain market.

For example, I am one of the people who shop at Abercrombie and Hollister based on their different products that they have to offer. Most of my clothes that you find in my closet will most likely be from Abercrombie or Hollister. But in this sense, if the product is expensive or out of my budget then I would not purchase it. For example, $90 for a pair of jeans is just crucial and ridiculous. I can find somewhere else to buy a pair of jeans for much cheaper. It also depends on how much you are willing to spend on a certain product.

Have you ever found yourself to buy something that affected one market segmentation over the other? Which one was more beneficial to you that made you purchase the item?

Multi-Segment Targeting Strategy

In the article, "What Is Multi-Segment Marketing?" by Helen Akers, it states that marketing is a discipline that attempts to identify and serve the unique needs of separate segments. Throughout research, it is known that marketers divide potential customers into groups based on their own characteristics. Some of these traits include professions, income levels, geographic groups, lifestyles, aspirations, and even perceptions. It is stated that when companies target more than one segment, then they are experiencing with multi-segment marketing. Some of their segment needs include that when companies decide to bring a product or service to the market, then they will look for needs that are either not being met or that could be met in a different way.
To read more visit: http://smallbusiness.chron.com/multisegment-marketing-25419.html

As discussed in our textbook, multi-segment targeting strategy is a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each (pg.141). Multi-segment targeting offers many potential benefits to firms, including greater sales volume, higher profits, larger market share, and economies of scale in manufacturing and marketing. Another potential cost of multi-segment targeting is cannibalization, which occurs when sales of a new product cut into sales of a firm's existing products.

I feel like cannibalization can be a huge advantage and disadvantage to the firm because in one way it is willing to help the firm out because there is a new product on sale and everyone would be so drawn into it and would research more about it. But, then it can also be a disadvantage because if the company is trying to sell their product and there is a new product that is on sale then, most likely that product would target the customers more. The company would be dealing with competition and that is not what they would want to do. Also, having a multi-segment target has its benefits because of what they have to offer: greater sales volume, higher profits, and larger market share. All these factor into what makes the company become more and more successful.

Do you think multi-segment targeting strategy can have disadvantages? What do you think they are?

Response to Jonathan Tomachick

Has a sale ever persuaded you to buy something you didn't expect to at first? Do you find yourself doing the same when you shop? Have you ever had to cut another shopping trip short because of splurging for sale items the week prior?

 Yes, a sale has persuaded me to buy something that I didn't expect to at first. I was watching television and I remembered watching commercials of someone advertising to sell snuggies; the advertisement was so convincing and persuading that it caught my attention and I wanted to buy the product and test it out. For example, a sleeved blanket just sounds so convincing and interesting to me. It also advertised that it is very comfy and you are able to do anything because both of your hands will be free. It also stated that you will be very warm when using this product. I remember that I would tell myself that I would never get this product but now, I am second guessing myself because it seems like a product that I would be very satisfied with.

Yes, I also find myself doing the same thing when I shop because I would think to myself if I would really need the product that I want to purchase. But, in the end if the sale is worth it I would end up buying it because I know for my favorite stores such as Hollister and Abercrombie; their clothings are most times expensive and if the clearance of the sale goes down by an effective amount then I would most likely purchase the item. No, I have not found myself to cut another shopping trip short because of splurging for a sale item the week prior because I am the type of person who likes to shop and I can basically do it for numerous hours. I also believe that shopping is somewhat of my stress reliever because it makes me feel better. Shopping is what I do best and I would never pass up on that opportunity to do it.

Is there a certain percentage of sale that would influence you to change your mind in purchasing an item? For example, if the product was 25% off as opposed to 50% off? Which one would you end up picking?

Maslow's Hierarchy of Needs

As discussed in chapter 6, Maslow's hierarchy of needs is a method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization (pg. 106). It is noted that as a person fulfills one need, a higher-level need becomes more important. Physiological needs are the most basic needs for a human; such as food, water, and shelter. These needs are needed in order to survive. In my opinion, I think that the physiological needs are the most important because they are a necessity to life. Without those needs, nobody would be able to survive. Safety needs are needed for security and freedom from the pain and discomfort. This need helps marketers sell their products. For example, everyone would want to feel safe at all times. Mostly, for the ones who are ill; they would want to know that they can count on the doctors and nurses in the hospital to take care of them. Social needs include love and the sense of belonging. Love is always needed because it is the acceptance without regard to one's contribution. Self-esteem needs include self-respect and a sense of accomplishment. Esteem needs include prestige, fame, and recognition of one's accomplishments. I also believe that esteem is very important because it sets an image for oneself and it is very significant to have self-respect for yourself. The highest human need is self-actualization; which means that "people are what they feel they should be." I feel as if this need is the one who mostly convinces the consumers to buy their products.

If I had to narrow it down, the top three Maslow's hierarchy of needs that are the most significant to my life are the physiological needs, safety needs, and the social needs. Physiological needs are the most essential for me because without them I would not be able to survive in the world because no one person is able to survive without food, water, or even shelter. Those things are the most important in everyday life. Safety needs are also important because everyone needs to feel secure and protected. In my opinion, I would like to feel safe everywhere I go because that is the type of person I am and I would get paranoid if it was any other way. Social needs are also a huge factor in my life because without my friends and family I would not know what I would do. They are always there for me whenever I need them and in the end I know that I can always lean on them if I am feeling down and need someone to cheer me up.

What three Maslow's hierarchy of needs are essential to your life? Which one do you think is the most important to you?