Global Business 2e
C ha p t e r 14
Competing on
Marketing and Supply
Chain Management
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
LEARNING OBJECTIVES
After studying this chapter, you should be
able to:
1. articulate three of the four marketing Ps
(product, price, and promotion) in a global context.
2. explain how the fourth marketing P (place) has
changed into supply chain management.
3. outline the three As of supply chain
management (agility, adaptability, and alignment).
4. discuss how institutions and resources affect
marketing and supply chain management.
5. participate in two leading debates concerning
marketing and supply chain management.
6. draw implications for action.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MARKETING
Marketing
Efforts to create, develop, and defend markets that
satisfy the needs and wants of individual and
business customers.
Supply chain
Flow of products, services, finances, and
information that passes through a set of entities
from a source to the customer.
Supply chain management
Activities to plan, organize, lead, and control the
supply chain.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2011 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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2011 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
Market segmentation
Identifying groups of consumers who differ
from others in purchasing behavior and
who will respond to the marketing mix in a
similar fashion
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2011 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
Price
Price refers to the expenditures that
customers are willing to pay for a
product
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THREE OF THE FOUR
MARKETING Ps
Price elasticity
How demand changes when price
changes
Total cost of ownership
Costs incurred in addition to the point of
purchase price
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THREE OF THE FOUR
MARKETING Ps
Promotion
Promotion refers to all the communications that
marketers insert into the marketplace
Promotion 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?
© 2011 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
Country-of-origin effect
The positive or negative perception of
firms and products from a certain
country
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FROM DISTRIBUTION TO
SUPPLY CHAIN
MANAGEMENT
Fourth P in the marketing mix, place
refers to the location where products and
services are provided which includes the
online marketplace
“Place” is also often referred to as the
distribution channel—the set of firms
that facilitates movement of goods from
producers to consumers
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2011 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
Agility
The ability to react quickly to unexpected
shifts in supply and demand
Adaptability
The ability to change supply chain
configurations in response to longerterm changes in the environment and
technology
© 2011 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
Make-or-buy decisions
Reconfiguring the supply chain in
response to major geopolitical, social,
and/or technological trends
© 2011 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
Alignment
Alignment 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?
© 2011 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
Third-party logistics (3PL)
Intermediaries (middlemen) who may
more effectively align the interests in the
supply chain
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
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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?
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
RESOURCES, MARKETING,
AND SUPPLY CHAIN
MANAGEMENT
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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
RESOURCES, MARKETING,
AND SUPPLY CHAIN
MANAGEMENT
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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ORIENTATION
Market orientation
A philosophy or way of thinking that
places the highest priority on the
creation of superior customer value in
the marketplace
Relationship orientation
A focus to establish, maintain, and
enhance relationships with customers
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.