Global Business 3e Chapter 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 be able to: 15-1 articulate three of the four Ps in marketing (product, price, and promotion) in a global context explain how the fourth P in marketing (place) has evolved to be labeled supply chain management outline the triple As in supply chain management (agility, adaptability, and alignment) discuss how institutions and resources affect marketing and supply chain management participate in two leading debates concerning marketing and supply chain management draw implications for action. LEARNING OBJECTIVES

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. © 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 © 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 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 © 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 Price Price refers to the expenditures that customers are willing to pay for a product © 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 Price elasticity How demand changes when price changes Total cost of ownership Costs incurred in addition to the point of purchase price © 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 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 © 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. ? You see promotions for products and services every day. Which ones grab your attention and stay in your mind, and why?

THREE OF THE FOUR MARKETING Ps Country-of-origin effect The positive or negative perception of firms and products from a certain country © 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.

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 © 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 Agility The ability to react quickly to unexpected shifts in supply and demand Adaptability The ability to change supply chain configurations in response to longer- term changes in the environment and technology © 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 Make-or-buy decisions Reconfiguring the supply chain in response to major geopolitical, social, and/or technological trends © 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 Alignment Alignment of interests of various players involved in 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. ? Can you describe the steps in the supply chain for a common product, such as a pair of socks, using the three As?

THREE “As” OF SUPPLY CHAIN MANAGEMENT Third-party logistics (3PL) Intermediaries (middlemen) who may more effectively align the interests in 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.

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 © 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.

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 © 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. ? Do these activities add value?

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 © 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.

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 © 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.

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 © 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.