global business 3e chapter 15 marketing and supply chain management © 2014 cengage learning. all...

Global Business 3eChapter 15

Marketing and Supply Chain Management

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


After studying this chapter, you should beable to:15-1 articulate three of the four Ps in marketing (product, price, and promotion) in a global context.15-2 explain how the fourth P in marketing (place) has evolved to be labeled supply chain management.15-3 outline the triple As in supply chain management (agility, adaptability, and alignment).15-4 discuss how institutions and resources affect marketing and supply chain management.15-5 participate in two leading debates concerningmarketing and supply chain management.15-6 draw implications for action.

LEARNING OBJECTIVES

MARKETING

MarketingEfforts to create, develop, and defend

markets that satisfy the needs and wants of individual and business customers.

Supply chainFlow of products, services, finances, and

information that passes through a set of entities from a source to the customer.

Supply chain managementActivities to plan, organize, lead, and

control the supply chain.© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

THREE OF THE FOUR MARKETING Ps

Product refers to offerings that customers purchase

Although the word “product” originally referred to a physical product, its modern use may include services



Market segmentationIdentifying groups of consumers who differ from others in purchasing behavior and who will respond to the marketing mix in a similar fashion


THREE OF THE FOUR MARKETING PsPricePrice refers to the expenditures

that customers are willing to pay for a product



Price elasticityHow demand changes when price changes

Total cost of ownershipCosts incurred in addition to the point of purchase price



PromotionPromotion refers to all the communications

that marketers insert into the marketplacePromotion includes TV, radio, print, and

online advertising, as well as coupons, direct mail, billboards, public relations, direct marketing (personal selling), and social media marketing


? You see promotions for products and services every day. Which ones grab your attention and stay in your mind, and why?


Country-of-origin effectThe positive or negative

perception of firms and products from a certain country


FROM DISTRIBUTION TO SUPPLY CHAIN MANAGEMENT

Fourth P in the marketing mix, place refers to the location where products andservices are provided which includes the online marketplace

“Place” is also often referred to as the distribution channel—the set of firmsthat facilitates movement of goods from producers to consumers© 2014 Cengage Learning. All Rights

Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

THREE “As” OF SUPPLY CHAIN MANAGEMENT

AgilityThe ability to react quickly to

unexpected shifts in supply and demand

AdaptabilityThe ability to change supply chain

configurations in response to longer-term changes in the environment and technology© 2014 Cengage Learning. All Rights



Make-or-buy decisionsReconfiguring the supply chain in response to major geopolitical, social, and/or technological trends



AlignmentAlignment of interests of various

players involved in the supply chain


? Can you describe the steps in the supply chain for a common product, such as a pair of socks, using the three As?


Third-party logistics (3PL)Intermediaries (middlemen) who may more effectively align the interests in the supply chain


INSTITUTIONS, MARKETING, AND SUPPLY CHAIN MANAGEMENT

Most countries impose restrictions, ranging from taboos in advertising to constraints on the equity level held by foreign retailers and 3PL providers

In marketing, most blunders happen because firms fail to appreciate the deep underlying differences in cultures, languages, and norms—all part of the informal institutions


RESOURCES, MARKETING, AND SUPPLY CHAIN MANAGEMENT

Increasingly, as traditional media loses viewers and readers, and thus effectiveness, marketers do not have a good handle on how to add value with new forms of advertising, particularly online


? Do these activities add value?


Managers need to assess the rarity of marketing and supply chain activities

If all rival firms advertise in the Economist, use FedEx to manage logistics (all of which do add value), these activities, in themselves, are not rare



Managers need to assess how likely it is for rivals and partners to imitate those capabilities

Firms need to be careful about partners in the supply chain as it is always possible that some of the aggressive contract manufacturers may in turn directly imitate and compete


ORIENTATION

Market orientationA philosophy or way of thinking

that places the highest priority on the creation of superior customer value in the marketplace

Relationship orientationA focus to establish, maintain, and

enhance relationships with customers © 2014 Cengage Learning. All Rights


global business 3e chapter 15 marketing and supply chain management © 2014 cengage learning. all...

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