Chapter 15 Flashcards
Global Marketing, Distribution, and Supply-Chain Management
Components of Global Marketing
The 4 P’s:
Product
Price
Promotion
Place
Global Sourcing
Buying raw materials or components that go into a company’s product from around the world
Distribution Management - What is it?
Channels in emerging markets are less developed, which means that companies may need to seek novel solutions for distributing their products.
Advantages of Multi-sourcing
- More flexibility in times of distribution
- Negotiating lower rates by pitting one supplier against the other
- Switch between suppliers with minimal downside loss of time or resources to company
Disadvantages of Multi-sourcing
- Quality across suppliers may be less uniform
- Less influence with each supplier
- Higher coordination and management costs
What is outsourcing?
- The company delegates an entire process to the outsource vendor
- The vendor takes control of the operations and runs the operations as they see fit
- The company pays the outsource vendor for the end result; how the vendor achieves the end result is up to the vendor
What is offshoring?
- Setting up operations in a low-cost country for the purpose of hiring local workers at lower labor rates
- Offshoring differs from outsourcing in that the firm retains control of the operations and directly hires the employees.
Supply-Chain Management
The planning and management of all activities involved in sourcing and procurement, conversion, and logistics
Activities in the supply-chain include:
- Demand Management
- Procurement
- Inventory Management
- Warehousing and material handling
- Production planning and control
- Packaging
- Transportation Management
- Order Management
- Distribution Network Design
- Product-return Management
Corporate Social Responsibility (CSR)
A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.
