Marketing Principles

An adequate and efficient marketing system is crucial as it enables diversification, while providing producers with superior prices. Value adding refers to the process of enhancing a particular product or service, and includes the act of shifting goods from producers and suppliers towards consumers. It is imperative for retailers to add value to the marketing system to make goods and services more available and accessible to target markets. Marketing channels add value through key functions, including information, promotion, contact, matching, negotiation, physical distribution, financing and risk taking.

The gathering of information assists in the value adding process for marketing channels, where the accumulation of extensive market research is distributed within the marketing environment to assist in the exchange of goods and services. Promotion is also a significant factor in the value adding process, where the development of offers, products and services are communicated on a large scale to endorse a particular business. Contacting and communicating with potential buyers is also critical to add value, as it is crucial to have a strong attachment with likely buyers. Matching and shaping offers to meet buyer's needs also adds value, by ensuring a strong connection with potential buyers. Negotiating to reach a mutual agreement on prices also assists in the value adding process, to ensure that possessions or ownerships can be transferred. Physical distribution is also a key function of value adding, where the controlled transporting and storing of goods would ensure operations run in an organized manner. Well-structured financing is also crucial to ensure that funds are acquired and used accordingly to cover the costs associated with channel work, and maintain a well-built reputation. Risk taking is the final key function that adds value to marketing channels, where assuming potential risks present in channel work and overcoming them, ensures that a business remains stable.

David Jones, established in 1838 is an Australian-wide chain of premium department stores. Not only is it Australia's oldest department store; it is also the oldest department store in the world still trading under its original name. There are 37 stores in Australia, retailing in fashion, home wares, cosmetics, electronics and a number of other products. David Jones is continuously seeking to enhance both their physical and online orientation. However, David Jones prides itself on its flourishing physical presence, with their growing number of department stores. David Jones gathers their information physically, by monitoring the wants and needs of their customers, and their buying patterns to support the exchange process. Similarly, David Jones promotes their products physically through their catalogues to spread communications about their offers. Recently, David Jones has also promoted their products online through their personalized