1. Marketing and Supply Chain Management
Chapter 15
Marketing and Supply Chain Management

2. LEARNING OBJECTIVES
After studying this chapter, you should be able to:
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

3. MARKETING AND SUPPLY CHAIN MANAGEMENT
marketing - the effort 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

5. TERMS RELATED TO THE FOUR MARKETING Ps
product - offerings that customers purchase
market segmentation - way to identify consumers who differ from others in purchasing behavior

8. THREE OF THE FOUR MARKETING Ps
price - expenditures that customers are willing to pay for a product
price elasticity - how demand changes when prices change
total cost of ownership - direct and indirect costs related to cost of purchase and also all aspects in the further use and maintenance of the equipment, device, or system; a form of full cost accounting

9. THREE OF THE FOUR MARKETING Ps
promotion - communications that marketers insert into the marketplace: TV, radio, print, and online advertising, as well as coupons, direct mail, billboards, direct marketing (personal selling), and public relations
country-of-origin effect - positive or negative perception of firms and products from a certain country

11. FROM DISTRIBUTION CHANNEL TO SUPPLY CHAIN MANAGEMENT
place - fourth P in the marketing mix - to the location where products and services are provided which includes the online marketplace
distribution channel—the set of firms that facilitate the movement of goods from producers to consumers

13. TRIPLE As IN SUPPLY CHAIN MANAGEMENT
agility - ability to quickly react to unexpected shifts in supply and demand
adaptability - ability to change supply chain configurations in response to long-term changes in the environment and technology
alignment - way in which the interests of various players involved in the supply chain align
make-or-buy decisions - decisions whether to produce in-house or to outsource

14. TRIPLE As IN SUPPLY CHAIN MANAGEMENT
make-or-buy decisions - decisions whether to produce in-house or to outsource
third-party logistics - neutral intermediary in the
supply chain

15. INSITITUTIONS AND RESOURCES AFFECT MARKETING AND SUPPLY CHAINMANAGEMENT
most countries impose restrictions, ranging from taboos in advertising to constraints on the equity level held by foreign retailers and 3PL providers
most marketing blunders happen due to firms’ failure to appreciate the deep underlying differences in cultures, languages, and norms -all part of the informal institutions
norm in supply chain management is to source from Asia

17. RESOURCES, MARKETING AND SUPPLY CHAIN MANAGEMENT VRIO criteria
traditional media are losing viewers, readers, and thus effectiveness, but marketers do not have a good handle of how advertising on the new online media adds value
managers need to assess the rarity of marketing and supply chain activities – if all firms use FedEx to manage
logistics which does add value), these activities, in themselves, are not rare
how likely is it for rivals and partners to imitate?
is the firm organizationally ready to accomplish
objectives?

18. MANUFACTURING vs. SERVICES
Consider contract manufacturing service. Is it manufacturing? Service? Both? Does it matter?
Although marketing and supply chain management would be regarded as services historically, this classification may not matter that much.
Does McDonald’s manufacture hamburgers? How much difference is there between McDonald’s and Boeing?
Both market new products, both make to order (finalize a product based on an order), and both extensively rely on powerful supply chain management systems around the world.

19. Market Orientation vs. Relationship Orientation
Market orientation refers to a philosophy or way of thinking that places the highest priority on the creation of superior customer value in the marketplace.
A market-oriented firm genuinely listens to customer feedback and allocates resources accordingly to meet customer expectations.
Relationship orientation, defined as a focus to establish, maintain, and enhance relationships with customers.
Marketers have heavily debated whether a market orientation or a relationship orientation is more effective in global markets. Key to the debate is how firms benefit from market or relationship orientation differently around the world.