Principles of Marketing

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A
1. Zara's supply chain begins with the design, the fabric is cut in-house, then the designs are sent to several co-operatives for sewing, the items return to Zara's, they are ironed, clothing is wrapped and sent on conveyor belts to warehouses. Customized machines process large number of items, these are packed, labeled, and allocated. These are transported to 1,494 stores through appropriate transport, where they are placed on shelves and bought by customers.
2. Horizontal conflict would happen if processes at the same level conflicted. For instance, the co-operative stores had conflicts among themselves. Vertical conflict would take place at Zara's if units at different levels entered into conflict. For example, if there were a conflict between the persons that ironed the clothes and the warehouse personnel.
3. The vertical system is administered at Zara's, where the dominant partner namely Zara's that brings about coordination and conflict management. The benefits are that Zara's has a control over the marketing system, it speeds up the process, it saves costs, and gains competitive advantage through fast deliveries.
4. The disadvantages of fast fashion distribution system are that it locks in a lot of capital. The cost of production is higher than outsourcing. Zara's has to depend on fixed sources of supply and has to focus on a particular type of clothes.
5. Zara's adds value to the customer by having the latest designs on shelves at medium level costs. The advantage is that the fashion conscious customer can wear the latest fashion at affordable prices.

B
1. Easyjet's marketing objectives were to get the revenues it needed early. So its pricing strategy wa to offer lower rates for tickets when the flights were first announced. As the time to flight became short, the prices were increased. This enabled Easyjet to gauge the demand in a particular route.
2. The factors that have affected the costs of the airlines industry since 2000 are the increasing cost of fuel. In addition, there was a demand for low cost flights this made it very important for Easyjet to reduce costs. Finally, the free onboard catering services were removed to reduce costs.
3. The nature of the airline market and airline service changed since 2000. The demand is for ...