Assignment 3

Ali Asghar
19U00380

1. What are the phases of value creation and value

delivery?

2. What is Value Chain?

3. Most large companies consist of four organizational

levels: What are those four organizational levels?

Ans 1) In marketing the entire focus is on the creation of value and the delivery of value for the
product or service a business is offering.

Value creation is a primary aim for any business. Creating value for customers helps in selling
products and services for ex. Creating value for shareholders in the form of increases in stock
price which will ensure the future availability of investment capital to fund operations.

Value Delivery is a whole lot of tasks that help ensure every paying customer is a happy
customer for ex. order processing, inventory management, delivery/fulfillment,
troubleshooting, customer support, etc.

The value creation and delivery sequence consist of the following three phases:

The first phase is choosing the value in which marketers segment the market then select the
appropriate target and develop the offering’s value positioning. The formula “segmentation,
targeting, positioning (STP)” is used.

The second phase is providing the value through identifying specific product features, prices,
and distribution.
The third phase is communicating the value by utilizing the Internet, advertising, sales force,
and other communication tools to announce and promote the product.

Ans 2) A value chain is a business model that describes the full range of activities needed to
create a product or service. For ex. A company that produces goods a value chain will comprise
the steps that involve bringing a product from conception to distribution, and everything in
between—such as using raw materials, manufacturing functions, and marketing activities.

Ans 3) Most large companies consist of four organizational levels:

the corporate level, division level, business unit level, and product level.

The corporate level is responsible for designing a corporate strategic plan to guide the whole
enterprise. It then makes decisions on the number of resources to allocate to each division.
Each business unit establishes a plan covering the allocation of funds to each business unit
within the division. Each business unit develops a strategic plan to carry that business unit into
a profitable future. Moreover, each product level within a business unit develops a marketing
plan for achieving its objectives is its market.