Value Chain

All of the aforementioned parts of the marketing plan cannot be carried out to the full level of effectiveness without all areas—a value chain—working together. Generally, the value chain includes the fol- lowing activities:

1  Inbound logistics—bringing raw materials into the business.

2   Operations—management of processes to create the product or

service for the customer. 

3   Outbound logistics—the means for getting the product or service to the customer (for example, distribution systems and shippers to get products into retail stores).

4   Marketing and sales—creating value.

5   Service—aligning customer expectations and the performance

of the product or service.

6   Firm infrastructure—the organization of the firm to maximize service to the customer.

7 Human resources management—creating a structure for the

people in the firm, which includes recruitment, training, retention, and compensation of employees.

 8  Technology—using technology to maximize service, thereby

enhancing customer value.

      

 

Value Chain Management