1
Chapter 14: Competing in Marketing and Supply Chain Management
Chapter 14
Competing in Marketing and Supply Chain
Management
Learning Objectives
After studying this chapter, students will be able to accomplish the following objectives:
1. Articulate three of the four Ps in marketing (product, price, and promotion) in a global
context.
2. Explain how the fourth P in marketing (place) has evolved to be labeled supply chain
management.
3. Outline the triple As in supply chain management (agility, adaptability, and alignment).
4. Discuss how institutions and resources affect marketing and supply chain management.
5. Draw three implications for action.
Chapter Overview
Chapter 14, Competing in Marketing and Supply Chain Management, focuses on important
questions associated with marketing and supply chain management. Instead of viewing
marketing and supply chain as two separate, stand-alone functions, this chapter treats them like
one crucial, integrated function. The chapter begins with definitions of marketing, supply chain,
and supply chain management, and it then goes on to discuss three of the four Ps that comprise
the marketing mix—product, price, and promotion. The fourth P, place, refers to the location
where a product is provided, as well as the distribution channel used to move it from producer to
consumer. The chapter segues from distribution channel to supply chain management and
outlines the triple As underpinning supply chains: agility, adaptability, and alignment. It then
describes how the institution-based and resource-based views enhance marketers’ understanding
of marketing and supply chain management success before concluding with an explanation of the
managerial implications of these key business processes.
Opening Case Discussion Guide
Marketing Aflac in the United States and Japan
Founded in 1955 and based in Columbus, Georgia, Aflac is the largest provider of supplemental
insurance in the United States. It also operates in one other country—Japan. Although Aflac’s
2
Chapter 14: Competing in Marketing and Supply Chain Management
business has been successful, its name has been problematic from the beginning.
It first started as American Family Life Insurance Company. In 1999, in an effort to market itself
better, Aflac engaged Kaplan Thaler Group, an advertising agency based in New York. But the
agency had a hard time coming up with an idea that would make the relatively obscure insurance
company’s name memorable. During one lunch break, one of the agency’s frustrated directors
took a walk around Central Park and still scratched his head, uttering “Aflac, Aflac.” As he
walked around the duck pond, in a moment of inspiration he realized how much “Aflac” sounded
like a duck’s quack.
The Aflac Duck debut was aired on CNN on New Year’s Day, 2000, with the Duck quacking
“Aflac” to prospective policyholders. The response was overwhelming. In the first year, Aflac
sales in the United States went up by 29 percent and in three years they doubled.
The famous American duck, however, had a hard time making itself heard in Japan. In Japan, a
duck does not yell “quack-quack,” it says “ga-ga.” In Japan since 1973, Aflac did not suffer from
being in the middle of a crowd of firms named “American.” Instead, in Japan it was known for
its full name: American Family Life Assurance Company. Now when people come to visit
Aflac’s headquarters in Georgia, they want to see the Aflac Duck. So the company has added a
duck pond to its headquarters—probably the first and only duck pond among all American (and
Japanese) company headquarters.
Lesson Plan for Lecture
Brief Outline and Suggested PowerPoint Slides:
Learning Outcome PowerPoint Slides
Learning Objectives Overview 2: Learning Objectives
LO1
Articulate three of the four Ps in marketing
(product, price, and promotion) in a global
context.
3: Marketing and Supply Chain
4: Exhibit 14.2: The Four Ps of Marketing
Mix
5–6: Product
7: Price
8: Promotion
9: Exhibit 14.3: Some Blunders in
International Marketing
LO2
Explain how the fourth P in marketing
(place) has evolved to be labeled supply
chain management.
10: Place
11: From Distribution Channel to Supply
Chain Management
12: Exhibit 14.4: Supply Chain
3
Chapter 14: Competing in Marketing and Supply Chain Management
Management
LO3
Outline the triple As in supply chain
management (agility, adaptability, and
alignment).
13–15: Triple As in Supply Chain
Management
LO4
Discuss how institutions and resources
affect marketing and supply chain
management.
16: Institutions, Marketing, and Supply
Chain Management
17: Resources, Marketing, and Supply
Chain Management
18: Exhibit 14.5: Institutions, Resources,
Marketing, and Supply Chain Management
LO5
Draw three implications for action.
19: Exhibit 14.6: Implications for Action
Key Terms 20: Key Terms
Summary 21–22: Summary