The Four Stages Of The Value Chain Model

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The Value chain is a tool, a set of interconnected procedures and marketing actions that corporations implement to evaluate how brands are built or need to be improved in order to create a more valuable product or service for their targeted consumers and consequently, succeed in the market. The data that results from the brand value chain analysis is key for the management team as it helps them brainstorm activities or even conduct effective marketing research, and therefore maximize value and customer's experience. Furthermore, this data provides rich information for potential investors. (Pearson Custom Business Resources, MKTG 1020, p. 102)

There are four stages that are contingent upon one another in this brand value chain model and they are as follows, the first stage is the marketing investment. Once the target market is well-defined, corporations will start investing in a marketing program. This would include a …show more content…

This will be reflected in the brand's stock price, price/earning ratio, and overall market capitalization and that is why it is important to make the best of the brand building process.

In addition, there are external factors that carry weight between these four stages, these are the "multipliers" such as the Program Quality Multiplier. "The ability of the marketing program to affect the customer mind-set will depend on its quality" (Pearson Custom Business Resources, MKTG 1020, p. 103). A low-quality marketing program will have a negative impact on the customer mind-set. Some traits worth considering when defining quality are, Distinctiveness, Relevance, Integrated, Value, and Excellence.

The next multiplier would be the Marketplace Conditions. Three variables will affect the customer's mind-set as well as the market performance, such as competitive superiority, channel support, and customer size and

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