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END-OF-CHAPTER GUIDE
*Review Questions and Answers
*Critical Discussion Questions and Answers
*Global Action
*Closing Case
REVIEW QUESTIONS AND ANSWERS
1. ON CULTURE: What cultural issue could be involved in product decisions in terms of
localization versus standardization?
Many examples could be given. McDonald’s operates around the world and some of their
operations and product line sometimes have to be modified to take into account local
2. If global warming persists, how would it affect shipping and transportation routes? You
can probably list some of the dangers of global warming but how may it actually benefit
the economies of some countries or regions?
While there are many concerns related to global warming, the possibility of year around
3. Refer to PengAtlas Map 4.2 (World Labor Force) and to Maps 2.1 and 2.2 that cover the
top exporters and importers. To what extent is the size of the labor force an indicator of
the size of markets, and to what extent is it not? Why?
China and the U.S. are among the top four in labor force and among the top four in the
importing and exporting of merchandise but only the U.S. is also among the top four in
export and import of services. India is second in labor force but is not among the top four
4. If marketing efforts could help produce an inelastic demand for a product, a firm would
have much more upward pricing flexibility. Explain why that is true.
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 125
Chapter 14: Competing On Marketing And Supply Chain Management
Elasticity and inelasticity refer to price sensitivity. Of course, in almost all cases, if price
goes up, the quantity demanded will go down and, if price goes down, the quantity
5. Which of the four P’s has come to be known by a new term? Why the change?
“Place” is now often referred to as Supply Chain Management. At one time, “Place” (it
was also sometimes referred to as “Distribution”) largely referred to getting “Product”
6. What marketing risks are taken by outsourcing? How would you minimize those risks?
In recent years there have been some very high profile news stories of various products
(including food and pharmaceuticals) that were deemed deadly or at least dangerous.
Even one instance affecting a particular brand can have a very negative impact on its
survival. One way to minimize the risk of poor quality would be an agreement between
7. In supply chain management, what are the differences between agility and adaptability?
There are continual technological, geopolitical, and social changes occurring and
8. In aligning the interests of various players in the supply chain, what is the role of power
and trust?
Two elements involved in the alignment of interests of various players in a supply chain
are power (the bargaining power of each player) and trust (the extent that the various
9. What are examples of how institutions affect marketing and supply chain management—
i.e., examples of government-imposed rules of the game?
In regards to examples of formal and institutions, the important thing is not so much the
answer as the extent to which the student demonstrates thought in providing the answer.
In regards to formal institutions, countries impose restrictions, ranging from taboos in
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 126
Chapter 14: Competing On Marketing And Supply Chain Management
10. How is the issue of the “value” of some traditional marketing resources being affected by
recent changes in technology?
Technology can impact the extent to which a product can be imitated. That may be a
11. In your opinion, are manufacturing and service separate issues, and can one of the two be
considered more important than the other? Explain.
12. What is the difference between market orientation and relationship orientation?
Market orientation begins with understanding those who make up a given market and
13. Select one of the four Ps, and make the case that it is more important than the other three.
Then make the case that all are equally important.
Students may make various possible points in answering this question. For example, a
firm must have a product or service to exist. It must have a price that people will be
14. Select one of the Triple As, and make the case that it is more important than the other
two. Then make the case that all are equally important.
The same approach can be used in this question that was used in the previous question.
CRITICAL DISCUSSION QUESTIONS AND ANSWERS
1. ON CULTURE: Canada has an official animal: the beaver. In 2007, the Canadian prime
minister suggested replacing it with the wolverine, and stirred up a national debate. Does
your country have an official animal? If you were hired as a marketing expert by the
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 127
Chapter 14: Competing On Marketing And Supply Chain Management
Government of Canada (or of whatever country), how would you best market the country
using an animal?
One might start by trying to identify who or what constitutes the market the country is
2. ON ETHICS: In Hollywood movies, it is common to have product placement (having
products from sponsored companies, such as cars, appear in movies without telling
viewers that these are commercials). As a marketer, you are concerned about the ethical
implications of product placement via Hollywood, yet you know the effectiveness of
traditional advertising is declining. How do you proceed?
If you are a marketer, you may first wish to do some marketing research before deciding
how to proceed. First, you may want to determine whether there is either an actual
ethical problem or at least perceived ethical problem. (Many people do not give the
3. ON ETHICS: You are a supply chain manager at a UK firm. In 2014, Ebola broke out in
Africa and the United States, potentially affecting your suppliers in these regions. On the
one hand, you are considering switching to a new supplier in Asia. On the other hand, at
this difficult moment you feel bad about abandoning your African and American
suppliers, with whom you have built a pleasant personal and business relationship. Yet,
your tightly coordinated production cannot afford to miss one supply shipment. How do
you proceed?
It might be worthwhile to consider developing a committee or alliance in which you and
your suppliers work together in helping to solve each others problems and, as a group,
GLOBAL ACTION
1. Your company has developed an extensive global supply network that has contact with
nearly every country in the world. However, recent internal initiatives have encouraged
managers to reconfigure your company’s supply network to increase efficiency. As a part
of this process, you must use established logistics performance metrics to identify the
country that has the highest logistics competence on each continent (Africa, Asia, Europe,
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 128
Chapter 14: Competing On Marketing And Supply Chain Management
North America, and South America). Prepare a report that indicates your
recommendations and rationale for each continent. What could explain the results of your
analysis?
Exercise 1 Answers
One resource which can be used is “Logistics Performance Index”. This website can be
2. You are conducting an international survey concerning possible acceptance of a new
leisure activity: space tourism. One issue that can influence whether individuals in a
country find this new concept interesting is culture. Discuss what cultural traits can be
used to measure general acceptance of space tourism by country. Then, determine which
countries are ideal to target for initial commercialization. Explain why.
Exercise 2 Answers
One resource which can be used is “the hofstede centre”. This website can be found by
CLOSING CASE DISCUSSION GUIDE AND ANSWERS
Zara Excels in Marketing and Supply Chain Management
1. Using the four Ps of marketing, explain what is behind Zara’s marketing.
2. From a VRIO standpoint, identify the features of Zara’s supply chain management that
contribute to its performance.
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 129
Chapter 14: Competing On Marketing And Supply Chain Management
3. Visit a Zara store in (or near) your city. Does it meet your expectations for a successful
store?
Answers will vary depending on each student’s expectations. If a store is not located near
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