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Chapter 14


Learning Objectives Explain how marketing mix in a global context has changed into supply chain management. Outline the supply chain management. Discuss how institutions and resources affect marketing and supply chain management.

Subject Definition
Marketing refers to efforts to create, develop, and defend markets that satisfy the needs and wands of individual and business customers. Supply chain is the flow of products, services, finances and information that passes through a set of entities from a source to the customer. Supply chain management refers to activities to plan, organize, lead and control the supply chain.

4Ps Marketing Mix




Promoti on

Supply Chain Management

Supply network

Producer /manufacturer

Distribution network


The 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. ALIGNMENT The alignment of interests of various players involved in the supply chain.

How Institutions and Resources Affect Marketing and Supply Chain Management
Institution-Based View Formal rules of the game such as taboos in advertising and equity limits in retail and 3PL sectors. Informal cultures, values and norms such as localization in promotion

Marketing and supply chain management

Resource-Based View Value, Rarity,Imitability,Organization

Marketing Debates and Extension

Standardization versus localization Manufacturing versus services Market orientation versus relationship orientation

Management Savvy
Dos and donts to avoid blunders in international marketing Dos Avoid ethnocentrism. Be sensitive to nationalistic feeling of local consumers, employees and government. Do your homework about the new market. Pay attention to details and nuances, especially those related to cultures, values and norms. Avoid the pushy salesman approach. The pace of business may seem too slow in some countries but impatience does not bring sales. Act like a diplomat with build a relationship.

Management Savvy
Dos and donts to avoid blunders in international marketing Donts Dont be overconfident about the potential of your products or services-firms will be better off by continuously testing the water and experimenting. Dont cut corners and save back-translation cost-always back translate. (After translating from English to Russian, get someone else to translate it from Russian to English to check accuracy. Dont use jokes in international advertising. Humor is usually impossible to translate. What is viewed funny by some may be offensive to others.