Respond to the following in a minimum of 175 words and respond to two peers in 100 word count
· Select a product you recently purchased and consider what channels were available for the marketing and purchase of this product. Based on the distribution channel through which you purchased the product, discuss how the value chain was affected by that channel of distribution.
I recently purchase some wireless Earbuds and golf balls from Amazon for iPhone vice the unattractive white apple earbuds. The Earbuds and golf balls I purchased from Amazon could have been purchased on numerous different channels such as Apple or Walmart store, eBay, Offerup, Letgo, PGA store, Craigslist, and Facebook Market place.
I have used Amazon for many purchases in the past. So, I elected to use Amazon for this purchase as well based my experience, and the real customer feedback of the earbuds and golf balls were more realistic, quality of the product was inline of with cost of the product. I am Amazon Prime member for and budget-friendly pricing because most of the advertising is driving by customer feedback contrary to the big money some corporation spend advertising. The value is more conducive because a small business or individual are selling the product.
Amazon value chain consist of the following:
– Sales and marketing: Amazon uses your cookies to market product to you. For example, if I was viewing laptops on another website. After a while, I will see Amazon’s add in the sidebars with laptops.
– inbound Logistics: Amazon gets their product by third-party buyers.
– Operations: Once the products are ordered, it is sent to the Amazon’s warehouse, where its sent for packaging.
– Outbound Logistics: The product gets ready and is all set to be sent towards the designator
– Service: Amazon has excellent customer service. They know how to keep their customers happy. For example, if you are not entirely satisfied with your purchase, you can get a full refund on your purchase.
I recently purchased some music from amazon.com. I found the delivery channels for these purchases interesting. Downloaded music files go directly from the dealer (amazon) to the consumer without the need for a transporter. This is opposite of how ordering products online normally works when there is a physical item that must be shipped, which can take a few days. There is also the option to purchase physical copies of music in various formats, such as CD or vinyl. What is interesting to me is that purchasing one of these formats also comes with a download, but the cost can actually be less than the download alone. These distribution options help the value chain of amazon’s music service. What may be even more valuable is their streaming services. Amazon Prime members can stream a somewhat limited selection of music, and Amazon Unlimited allows customers to pay a monthly fee to stream pretty much anything they want to listen to. For me, I use Unlimited and I still download music and occasionally purchase CD’s. These options allow more customers to get what suits them best, and gives amazon different ways to generate revenue.