CH-13 Supply Chain Management and Marketing Channels – MKTG: Principles of Marketing : Book Guide

CHAPTER 13 Supply Chain Management and Marketing Channels This chapter begins with the learning outcome summaries, followed by a set of lesson plans for you to use to deliver the content in Chapter 13. • Lecture (for large sections) on page 3 • Company Clips (video) on page 5 • Group Work (for smaller sections) on page 7 Review and Assignments begin on page 7 • Review questions • Application questions • Application exercise • Ethics exercise • Video Assignment • Case assignment Great Ideas for Teaching Marketing from faculty around the country begin on page 17 LEARNING OUTCOMES 13-1 Define the terms supply chain and supply chain management, and discuss the benefits of supply chain management Management coordinates and integrates all of the activities performed by supply chain members into a seamless process from the source to the point of consumption. The benefits of supply chain management include reduced inventory, transportation, warehousing, and packaging costs; greater supply chain flexibility; improved customer service; and higher revenues. 13-2 Discuss the concept of internal and external supply chain integration and explain why each of these types of integration is important In the modern supply chain, integration can be either internal or external. Internally, the very best companies develop a managerial orientation toward demand-supply integration. Externally, five types of integration are sought by firms interested in providing top-level service to customers: relationship integration, measurement integration, technology and planning integration, material and service supplier integration, and customer integration. 13-3 Identify the eight key processes of excellent supply chain management and discuss how each of these processes impacts the end customer The key processes that leading supply chain companies focus on are (1) customer relationship management, (2) customer service management, (3) demand management, (4) order fulfillment, (5) manufacturing flow management, (6) supplier relationship management, (7) product development and commercialization, and (8) returns management. When firms practice excellent supply chain management, each of these processes is integrated from end to end in the supply chain. 13-4 Understand the importance of sustainable supply chain management to modern business operations Sustainable supply chain management involves the integration and balancing of environmental, social, and economic thinking into all phases of the supply chain management process. 13-5 Discuss how new technology and emerging trends are impacting the practice of supply chain management Several emerging trends are changing the job of today’s supply chain manager. Some of the business trends affecting supply chain management include outsourcing logistics, public-private partnerships, electronic distribution, maintaining a secure supply chain, and new analytics tools. While these changes exert pressure on managers to change the way their supply chains function, they also help make supply chain management more integrated and easier to track. 13-6 Explain what marketing channels and channel intermediaries are and describe their functions and activities A marketing channel is a business structure of interdependent organizations that reach from the point of production to the consumer. Intermediaries negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller. Retailers are those firms in the channel that sell directly to consumers. 13-7 Describe common channel structures and strategies and the factors that influence their choice When possible, producers use the direct channel to sell directly to consumers. When one or more channel members are small companies, an agent/broker channel may be the best solution. Most consumer products are sold through distribution channels similar to the retailer channel and the wholesaler channel. Dual distribution may be used to distribute the same product to target markets, and companies often form strategic channel alliances to use already-established channels. Managers must decide what role distribution will play in the overall marketing strategy. In addition, they must be sure that the channel strategy chosen is consistent with market factors, product factors, and producer factors. Organizations have three options for intensity of distribution: intensive distribution, selective distribution, or exclusive distribution. 13-8 Discuss multichannel and omnichannel marketing in both B-to-B and B-to-C structures and explain why these concepts are important Many companies have begun employing multichannel marketing strategies, whereby customers are offered information, goods, services, and/or support through one or more synchronized channels. While it can promote better consumer behavior, the multichannel design also creates redundancy and complexity in the firm’s distribution system. Selling through multiple channels is typified by multiple parallel supply chains, each with its own inventory, processes, and performance metrics. Many companies are transitioning to omnichannel distribution operations that support their multichannel retail operations and unify their retail interfaces. With omnichannel operations, every customer receives equally efficient service. TERMS agents and brokers fourth-party logistics company (4PL or logistics integrator) retailer big data gray marketing channels returns management process business processes intensive distribution reverse channels channel members Internet of Things (IoT) selective distribution cloud computing manufacturing flow management process strategic channel alliance customer relationship management (CRM) process marketing channel (channel of distribution) supplier relationship management process customer service management process M-commerce supply chain demand management process merchant wholesaler supply chain agility demand-supply integration (DSI) nearshoring supply chain analytics digital channels nontraditional channels supply chain integration direct channel offshoring supply chain management drop and shop order cycle time supply chain orientation dual distribution (multiple distribution) order fulfillment process sustainable supply chain management electronic distribution outsourcing (contract logistics) third-party logistics company (3PL) exchange utility place utility three-dimensional printing (3DP) exclusive distribution product development and commercialization process time utility form utility LESSON PLAN FOR LECTURE Brief Outline and Suggested PowerPoint Slides: Learning Outcomes and Topics PowerPoint Slides LO1 Define the terms supply chain and supply chain management, and discuss the benefits of supply chain management 13-1 Supply Chains and Supply Chain Management 1: Supply Chain Management 2: Learning Outcomes 3: Learning Outcomes 4: Learning Outcomes 5: Supply Chains and Supply Chain Management 6: Supply Chain 7: Supply Chain Management 8: Benefits of Effective Supply Chain Management LO2 Discuss the concepts of internal and external supply chain integration and explain why each of these types of integration is important 13-2 Supply Chain Integration 9: Supply Chain Integration 10: Supply Chain Integration 11: Internal Integration 12:External Supply Chain Integration 13: Supply Chain Integration 14: Supply Chain Integration 15: Supply Chain Integration LO3 Identify the eight key processes of excellent supply chain management, and discuss how each of these processes impacts the end customer 13-3 The Key Processes of Supply Chain Management 16: Key Processes of Supply Chain Management 17: Key Business Processes 18: Customer Relationship Management 19: Customer Service Management 20: Demand Management 21: Order Fulfillment 22: Manufacturing Flow Management 23: Supplier Relationship Management 24: Product Development and Commercialization 25: Returns Management LO4 Understand the importance of sustainable supply chain management to modern business operations 13-4 Sustainable Supply Chain Management 26: Sustainable Supply Chain Management 27: Sustainable Supply Chain Management LO5 Discuss how new technology and emerging trends are impacting the practice of supply chain management 13-5 Trends in Supply Chain Management 28: Trends in Supply Chain Management 29: Trends in Supply Chain Management 30: Outsourcing Logistics Functions 31: Public-Private Partnerships 32: Electronic Distribution 33: Global Supply Chain Management 34: Supply Chain Analytics and Technology LO6 Explain what marketing channels and channel intermediaries are and describe their functions and activities 13-6 Marketing Channels and Channel Intermediaries 35: Marketing Channels and Channel Intermediaries 36: Marketing Channel 37: Marketing Channel Functions 38: Specialization and Divisions of Labor 39: Utility 40: Channel Intermediaries 41: Channel Intermediaries 42: Factors Suggesting Type of Wholesaling Intermediary to Use 43: Retailers 44: Channel Functions Performed by Intermediaries LO7 Describe common channel structures and strategies and the factors that influence their choice 13-7 Channel Structures 45: Channel Structures 46: Exhibit 13.2: Marketing Channels for Consumer Products 47: Exhibit 13.3: Channels for Business and Industrial Products 48: Alternative Channel Arrangements 49: Digital Channels 50: Factors Affecting Channel Choice 51: Market Factors 52: Product Factors 53: Producer Factors 54: Levels of Distribution Intensity 55: Levels of Distribution Intensity 56: Emerging Distribution Structures LO8 Discuss omnichannel and multichannel marketing in both B-to-B and B-to-C structures and explain why these concepts are important 13-8 Omnichannel versus Multichannel Marketing 57: Omnichannel and Multichannel Marketing 58: Multichannel Marketing 59: Omnichannel Marketing 60: Chapter 13 Video Suggested Homework: • The end of this chapter contains assignments for the Geoffrey B. Small video. • This chapter’s online study tools include flashcards, visual summaries, practice quizzes, and other resources that can be assigned or used as the basis for longer investigations into marketing. LESSON PLANS FOR VIDEO Company Clips Segment Summary – Geoffrey B. Small Geoffrey B. Small, a super-luxury fashion designer, discusses how he sources the materials needed to develop his clothing lines. He also discusses how he makes distribution decisions based on his micro production process and global distribution channels. These teaching notes combine activities that you can assign students to prepare before class, that you can do in class before watching the video, that you can do in class while watching the video, and that you can assign students to complete on their own after watching the video in class. During the viewing portion of the teaching notes, stop the video periodically where appropriate to ask students the questions or perform the activities listed on the grid. You may even want to give the students the questions before starting the video and have them think about the answer while viewing the segment. That way, students will be engaged in active rather than passive viewing. PRE-CLASS PREP FOR YOU: PRE-CLASS PREP FOR YOUR STUDENTS: • Preview the Company Clips video segment for Chapter 13. This exercise reviews concepts for LO1–LO5. • Review your lesson plan. • Make sure you have all of the equipment needed to show the video to the class, including the DVD and a way to project the video. • You can also stream the video HERE • Send students to www.geoffreybsmall.net. Ask them to explore the site and determine where Geoffrey B. Small sells its clothing. Do stores carry full lines of Geoffrey B. Small clothing? VIDEO REVIEW EXERCISE ACTIVITY Warm Up Briefly discuss students’ findings from the Pre-Class Prep activity. Are there many retailers? Do they carry full lines of Geoffrey B. Small clothing? In-class Preview • Discuss the business logistics functions. Include in your discussion a clarification of “push” and “pull” systems. • Review the Company Clips questions with students and have them be ready to answer them after watching the video segment. Viewing (Solutions below.) 1. How does Geoffrey B. Small decide what materials to use to make new products? 2. How does Geoffrey B. Small manage his supply chain? Follow-up • Divide students into groups of three to five and have them describe how Geoffrey B. Small handles the eight key processes of supply chain management. For components that aren’t specifically addressed by the video, have them conjecture based on what they know about the company and the website. • Go to Walmart’s Web site (www.walmart.com) and read the “Suppliers” pages. Does selling to Walmart seem worth the effort? Why or why not? Solutions for Viewing Activities: 1. How does Geoffrey B. Small decide what materials to use to make new products? Answer: Geoffrey B. Small has to examine his supplier relationships, and determine who meets his company beliefs, including proximity, ability to use only natural and sustainable materials, and who can produce the amount of material needed to produce the number of garments specified by Geoffrey B. Small. 2. How does Geoffrey B. Small manage its supply chain? Answer: Small partners with select luxury retailers all over the world to sell one or two pieces of his collections. He then visits as many of those retailers as he can to determine what his customer is looking for, and to see how these retailers sell his clothing. LESSON PLAN FOR GROUP WORK Class Activity 1 – Modes of Transportation In this exercise students will learn how to select a mode of transportation. Divide the class into small groups and randomly assign each group to a product and a customer location. The groups must research and compare two or three different modes of transportation for the product. If two or three viable modes are not available, students will need to explain why. They need to secure quotes on costs and time (if possible from more than one carrier) and consider other factors such as availability, reliability, accessibility, and traceability. They should present to the class their comparison and selection in a simple chart form. The freight costs will be quite a surprise for most students. Students should assume that the shipments are made from the town in which your school is located. Here are some suggestions: 1. Twenty-four air compressors, each in a shipping crate 36" by 36" by 60", weighing 400 pounds each, to a customer 1,000 miles away. Choose a city relevant to your location. 2. The same air compressors, but to a customer 75 miles away, within the same state. 3. Two crates of rare orchids, 12" by 24" by 48", each weighing 27 pounds, to a florist in New York City (if you are in the west) or Los Angeles (if you are in the east). The orchids can be without refrigeration for only twelve hours. 4. Two 12-ounce, 4" gears that are needed at a plant 300 miles away for a customer’s machine that has broken down and stopped an assembly line. 5. Six classic cars purchased by an eccentric, wealthy customer in a state 1,200 miles away. The buyer plans to spend the next year restoring these Corvettes from the early 1960s. The cars are not currently running. 6. Canned green beans, 600 cases, each 18" by 18" by 12" and weighing 25 pounds, to a customer on the east coast (or west coast, whichever is farther). 7. Two non-emergency seal kits, each 4" by 4" by 1" and weighing 8 ounces, for a customer 250 miles away. Class Activity 2 – Selection of a Channel or Distribution The purpose of this exercise is to get students to evaluate how the marketplace moves raw materials to manufacturers and then on to the consumer. Ask each student to select one product and trace it through every step of its distribution journey. This should be an out-of-class project in which the student actually researches how that occurs and lists companies involved (when possible), locations, and transportation modes used. The student should present this in a diagram, showing the structure of the channel and the linkages. Encourage students to use products with which they are familiar or to which they have access, perhaps through a family business or present or former employer. Other students may choose products that require them to do research and make phone calls or write letters to obtain the necessary information. REVIEW AND ASSIGNMENTS FOR CHAPTER 1 REVIEW QUESTIONS 1. Discuss the benefits of supply chain management. How does the implementation of supply chain management result in enhanced customer value? Answer: Supply chain management is a key means of differentiation for a firm and a critical component in marketing and corporate strategy. Some of the benefits of supply chain management are lower inventory, transportation, warehousing, and packaging costs; greater supply chain flexibility; improved customer service; and higher revenues. Research on supply chain management has shown a clear relationship between supply chain performance and profitability. A well-managed supply chain adds customer value through a reduction of costs for companies resulting in lower prices to consumers and improved customer service. 2. Discuss the concept of supply chain integration. How does it result in better customer-related outcomes? Answer: Students’ answers will vary but should reflect an understanding of supply chain integration. Supply chain integration occurs when multiple firms in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer. In the practice of world-class supply chain management, six types of integration are sought by firms interested in providing top-level service to customers. In terms of firm-to-firm social interactions, relationship integration provides important benefits. For the purposes of operational planning and control, measurement integration and technology and planning integration have been shown to be important determinants of company and overall supply chain success. When executing daily operations, three other types of integration are worthy of consideration: material and service supplier integration, internal operations integration, and customer integration. Highly integrated supply chains have been shown to be better at satisfying customers, managing costs, delivering high-quality products, enhancing productivity, and utilizing company or business unit assets, all of which translate into greater profitability for the firms and their partners working together in the supply chain. Supply chain integration refers to the coordination and collaboration of all parties involved in the supply chain, including suppliers, manufacturers, distributors, and retailers. This integration leads to: 1. Improved Communication: Enhanced information sharing among partners reduces delays and misunderstandings. 2. Streamlined Processes: Coordinated operations minimize redundancies and improve efficiency, resulting in faster delivery times. 3. Increased Flexibility: Integrated supply chains can quickly adapt to changes in demand or market conditions, allowing for better responsiveness. 4. Cost Reduction: Optimized resource allocation and reduced waste lead to lower operational costs. 5. Better Quality Control: Shared standards and practices help maintain consistent quality across the supply chain. These benefits result in better customer-related outcomes by ensuring timely delivery, improved product quality, and enhanced customer satisfaction, ultimately fostering loyalty and repeat business. 3. What are some of the likely outcomes of a firm’s failure to embrace one or more supply chain integration types? Answer: Students’ answers will vary. When individual companies act in isolation rather than working together, some expected outcomes are higher prices to consumers and higher expenses to firms, and inefficient distribution channels, transportation systems, and manufacturing processes. A firm’s failure to embrace supply chain integration can lead to several negative outcomes: 1. Inefficiencies: Lack of coordination can result in redundant processes, increased lead times, and higher operational costs. 2. Poor Communication: Misalignment between partners can cause misunderstandings, delays, and errors in order fulfillment. 3. Reduced Flexibility: The inability to adapt quickly to market changes or customer demands can lead to lost sales opportunities. 4. Lower Quality: Inconsistent standards and practices may result in product quality issues, harming the brand’s reputation. 5. Inventory Problems: Poor integration can lead to excess inventory or stockouts, disrupting service levels. 6. Customer Dissatisfaction: Delayed deliveries and quality issues can erode customer trust and loyalty. Overall, these outcomes can significantly impact a firm's competitiveness and long-term success. 4. What are the key processes in supply chain management, and who performs them? How does each process lead to increased satisfaction on the part of the customer? Answer: The key processes of supply chain management include customer relationship management, supplier relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, product development and commercialization, and returns management. Supply chain managers must focus on each of these eight critical business processes. Some processes extend end-to-end in the supply chain; they are touched or affected by all of the supply chain’s firms. Others may be the focus of only two or three of the involved companies. Most supply chains operate each of the eight key business processes within some firms and/or business units. 5. Go to the World Trade Organization’s Web site at www.wto.org. What can you learn at the site about how globalization affects channel management and other aspects of business? Answer: 1. Expanded Markets: Globalization opens up new markets, allowing businesses to reach a broader customer base. 2. Diverse Channels: Companies can utilize various distribution channels, adapting strategies for different regions and cultures. 3. Increased Competition: Global markets lead to more competition, driving businesses to innovate and improve efficiency. 4. Supply Chain Complexity: Managing supply chains across borders requires careful coordination to address regulations, tariffs, and logistics. 5. Cultural Sensitivity: Businesses must understand local customs and consumer behavior to effectively manage channels and marketing strategies. 6. Regulatory Compliance: Companies must navigate international trade regulations, impacting how they manage their operations and channels. Overall, globalization requires businesses to be more adaptable and strategic in their channel management and operational practices. APPLICATION QUESTIONS 1. Assume that you are the supply chain manager for a producer of expensive, high-tech computer components. Identify the most suitable method(s) of transporting your product in terms of cost, transit time, reliability, capability, accessibility, and traceability. Now, assume you are the supply chain manager for a producer of milk. How does this change your choice of transportation? Answer: Students’ answers will vary. The computer components should be transported with the highest reliability, quick transit time, and high traceability. The cost of the transportation will vary. The most suitable would most likely be truck, or rail. As for a producer of milk, transportation must still be reliable. The most notable change would be the capability because the milk would require the carrier to have refrigeration. For High-Tech Computer Components: 1. Transportation Method: Air Freight • Cost: Higher cost, justified by the product value. • Transit Time: Fast delivery, crucial for high-demand products. • Reliability: High reliability with minimal delays. • Capability: Suitable for delicate, high-value items. • Accessibility: Access to major airports for global reach. • Traceability: Advanced tracking systems for real-time updates. For Milk Production: 1. Transportation Method: Refrigerated Trucking (Milk Tankers) • Cost: Moderate, balancing transportation and storage needs. • Transit Time: Shorter routes are prioritized to maintain freshness. • Reliability: Consistent delivery schedules are crucial for perishable goods. • Capability: Specialized equipment for temperature control. • Accessibility: Flexible routes to reach farms and processing plants. • Traceability: Systems to monitor temperature and ensure quality. Summary: For high-tech components, air freight is ideal for speed and reliability, while refrigerated trucking is necessary for transporting perishable milk efficiently and safely. 2. Visit the Web site of Menlo Logistics at www.menlolog.com. What logistics functions can this third-party logistics supplier provide? How does its mission fit in with the supply chain management philosophy? Answer: Logistics Functions: 1. Transportation Management: Coordinating the movement of goods across various modes (air, land, sea). 2. Warehousing and Distribution: Providing storage solutions and managing inventory flow. 3. Order Fulfillment: Handling picking, packing, and shipping of products to customers. 4. Supply Chain Optimization: Analyzing and improving logistics processes for efficiency. 5. Customs Brokerage: Assisting with international shipping and compliance with regulations. 6. Returns Management: Managing reverse logistics for returned products. Mission and Supply Chain Management Philosophy: Menlo Logistics’ mission typically emphasizes customer service, efficiency, and innovation, aligning with supply chain management by focusing on: • Collaboration: Working closely with clients to tailor logistics solutions. • Efficiency: Streamlining processes to reduce costs and improve service levels. • Visibility: Providing real-time tracking and data to enhance decision-making. This integration supports a holistic approach to supply chain management, improving overall performance and customer satisfaction. 3. Your family runs a specialty ice cream parlor, Scoops. It manufactures its own ice cream in small batches and sells it only in pint-sized containers. After someone not affiliated with the company sent six pints of your ice cream to a popular talk-show host, she proclaimed on her national TV show that it was the best ice cream she had ever eaten. Immediately after the broadcast, orders came flooding in, overwhelming your small-batch production schedule and your limited distribution system. The company’s shipping manager thinks she can handle it, but you disagree. List the reasons why you need to restructure your channel of distribution. Answer: The major reason why you need to restructure your supply chain is obvious: you cannot meet the sudden increased demand for your product. As awareness grows of your delicious ice cream, the demand will continue to increase. The general reasons why any small business should restructure a rudimentary distribution system are the following: 1) to upgrade logistical functions ( to include distributors, who are equipped to handle large volume by having adequate storage, transportation, and other marketing-related resources that small manufacturers don’t have); 2) to have better transactional functions (to increase awareness even more by contacting prospective buyers and explaining benefits—something that a small company may not have the resources to do on a large scale); and 3) to have a stronger facilitating function (as a small manufacturer, you can’t handle all the requests from all the potential customers, so you hire someone who can—and who can understand the buyers better. (Those customers can include retailers, such as supermarket chains). 4. Building on question 1, determine a new channel structure for Scoops. Write a proposal to present to your key managers. Answer: Students could build a good case for any of the structures described in the chapter, depending on what Scoops’ long-term growth goals are. However, given that the current business is very small, Scoops is likely to use an agent/broker channel and do the following: 1) hire a professional sales force (that likely also represents other frozen dessert brands) to sell the products to distributors and/or large retailers); 2) distribute the products to a wholesaler, who will then 3) distribute the products to retailers, including supermarket chains, convenience store chains, and even some drugstore chains. Another good idea to get quick distribution is to “piggy-back” on another ice cream company’s distribution channel. A good example is what Ben & Jerry’s did to get national distribution of its product: it formed a partnership with Dreyer’s Ice Cream, well known for its well-developed distribution system. Since Ben & Jerry’s is a super-premium ice cream that is not directly competitive with Dreyer’s premium ice cream, the partnership worked. 5. Working with another student in the class, decide when it would be most advantageous for large companies like Procter & Gamble, IBM, and/or Ford Motor Company to develop integrated relationships with smaller suppliers. Would the same rules for integrated relationship development also apply to customers? Why or why not? Answer: Integrated relationships are at the high end of the connection spectrum. Organizations with this type of relationship are tightly connected, with linked processes across and between firm boundaries, and high levels of trust and inter-firm commitment. Although quite successful, highly integrated relationships also come with costs or potential hazards. For example, it involves a higher level of investment in assets. The failure of any portion of the business may result in economic losses for that business and the other business units. Because these tradeoffs are sometimes hard to justify, companies often pursue cooperative relationships, which exist between arm’s-length and integrated relationships. 6. You have been hired to design an alternative channel of distribution for a firm specializing in the manufacturing and marketing of novelties for college student organizations. In a memo to the president of the firm, describe how the channel operates. Answer: Although students’ answers will vary, they should address some of the following points. Answers should suggest several alternatives. The most common is to sell to a specialty merchandise wholesaler who resells directly to the college student organizations or to the retail stores that serve these groups. Another suggestion could be to use a manufacturer’s agent that would sell the merchandise to retail stores that serve these college groups. The firm could even sell directly by using a catalog and direct mail. Students may choose to market these products using an Internet site. They should discuss the positive and negative aspects of this choice. Memo To: President, [Firm Name] From: [Your Name] Date: [Today's Date] Subject: Proposed Alternative Channel of Distribution for College Novelties Overview: I propose a multi-channel distribution strategy for our college novelties, combining online and direct engagement. Channel Operation: 1. E-commerce Platform: A dedicated online store for bulk orders and customization. 2. Campus Ambassadors: Recruit students to promote products and facilitate group orders. 3. Partnerships with Student Unions: Set up pop-up shops at campus events for direct sales. 4. Social Media Engagement: Use platforms like Instagram and TikTok for promotions and contests. 5. Referral Programs: Offer discounts for organizations that refer new customers. Benefits: • Increased visibility and engagement with target customers. • Stronger brand loyalty through direct connections. • Streamlined ordering process, enhancing sales. Best, [Your Name] [Your Position] 7. Decide which distribution intensity level—intensive, selective, or exclusive—is used for the following products, and why: Piaget watches, Land Rover sport utility vehicles, M & M’s, special edition Barbie dolls, Crest toothpaste. Answer: • Piaget watches: exclusive distribution (expensive, exclusive image) • Land Rover SUVs: exclusive distribution (expensive, exclusive image) • M & M’s: intensive distribution (inexpensive, easily substituted) • Barbie dolls: selective distribution (collector’s item) • Crest toothpaste: intensive distribution (inexpensive, easily substituted) APPLICATION EXERCISE Purpose: For students to experience through their own investigation the complexity of supply chains. Setting It Up: This works best as an individual assignment. If you have a small class, you can do as described below and have students submit a detailed story board depicting the supply chain they researched. Alternatively, you can have students submit textual descriptions on regular paper if your class is larger. John L. Beisel, Pittsburg State University IDENTIFYING CHANNELS OF DISTRIBUTION Students in my Distribution Management class are required to pick a product of their choice and to trace the channel(s) of distribution for that product as far back as is feasibly possible. They then must draw the structure of the channel on a large poster and give a five-minute presentation of their findings in class, utilizing the poster as a visual aid. All products researched must be approved in advance by the instructor in order to prevent more than one student giving a presentation of the same product. Not only must students identify on their posters the various participants (by company name) involved in moving the product from the producer down to the final buyers, but they must also show the various sources (names and locations) of the component parts of the product, if any. The methods of transportation (UPS, railroad, ship, truck, etc.) must also be identified at each stage. Examples of interesting products that have been researched by students include: • Bricks produced by a local brick manufacturer—the kiln from a company in Germany; the clay from an open pit mine in Weir, Kansas; the water from Baxter Springs, Kansas; the sand from Kansas City; the manganese sulfate and iron oxide from Springfield, Missouri; and the color additives from St. Louis. • Diamonds sold by a local jewelry store—purchased direct from diamond wholesalers in the Netherlands; bought by wholesalers from diamond cutters in South Africa; brought out of mines owned by a company in South Africa. Students often choose to research a product whereby they can have easy access to information—one of their parents or other relatives who can give them details relating to their business, or even a present or former employer who is willing to cooperate. Not only must the student personally interview the retailer or producer of the product, but many times they must write letters or make telephone calls to companies located out of the state. In a typical class, the products covered ranged from t-shirts to Laz boy chairs to Goodyear tires to microwave rice to Coors beer to McDonald’s Big Macs to bananas to Pizza Hut pizza to Folgers’s coffee to Nekoosa paper. In most cases, the students receive cooperation from the business people that they interview. Occasionally, a company does not want to name the suppliers, but even then they are willing to give the name of the city and state where the suppliers are located. The students seem to be fascinated by the presentations and often ask their fellow students to further explain the details of the channel presented. There usually are many comments made by students regarding the positive learning experience that the project gave them, and they are able to relate many of the concepts presented in class lecture to the projects presented by themselves and their classmates. This results in a decidedly different perspective for our students from which to view the rationale and concepts of international trade. These “new countries” are still larger than most European countries, but we now must cope with multiple languages, cultures, infrastructure, monetary systems, communication modes, legal systems, and tariffs. Students readily grasp that international marketing would have been an inevitable result of this alternative history. It becomes obvious that each area would take advantage of its natural resources, climate, the special talents, competence and skills of its people, and all of the other factors that make international trade so important to the rest of the world. This map also illustrates why the USA was relatively slow to enter the world trade arena. ETHICS EXERCISE Wholesome Snacks, Inc., the maker of a variety of cookies and crackers, has just created a new vitamin-packed cookie. The new cookie has the potential to combat many of the health problems caused by malnutrition in children throughout poverty-stricken areas of the world. To date, however, many of the larger developing markets have resisted opening distribution channels to Whole some’s products. Wholesome realizes that its new cookie could also help open the door for the company to sell its less nutritious products in these markets. Therefore, the company is offering the new cookie at a low cost to government relief programs in exchange for the long-sought distribution channels. The company feels the deal is good for business, but the countries feel it is corporate bullying. 1. What do you think about Whole some’s idea for opening a new distribution channel? Answer: There are really two issues relative to the new distribution channel. First, opening the channel to distribute the vitamin-enriched cookie is ethical and laudable. As the scenario indicates, the cookie would be beneficial to the overall health of the developing nations in which Wholesome is trying to market it. Unfortunately, the fact that Wholesome carries a less than nutritious line of snack foods is causing the countries to suspect that the company has ulterior motives that are not so altruistic. If Wholesome opens the channel, distributes the vitamin-enriched cookie, and shortly thereafter begins marketing unhealthy snacks in countries where malnutrition in prevalent, then the company would be acting irresponsibly and unethically. If, however, the company either commits to marketing only the vitamin-enriched cookie in developing countries until the level of malnutrition is comparable to industrialized nations, then Wholesome would be able to act both ethically and in a socially responsible manner. 2. Does the AMA Statement of Ethics address this issue? Go to www.marketingpower.com and review the statement. Then, write a brief paragraph on what the AMA Statement of Ethics contains that relates to distribution channels in developing nations. Answer: The AMA statement of Ethics has a specific section that relates to distribution. One point in this section prevents “manipulating the availability of a product for the purpose of exploitation.” The point addresses Whole some’s situation more closely than the others, apart from the blanket clause on conducting oneself honestly and not knowingly doing harm. It is important to note that the AMA does not consider its Statement of Ethics to be comprehensive, so marketers may confront ethical issues that are not specifically addressed by the statement. VIDEO ASSIGNMENT: Geoffrey B. Small Geoffrey B. Small, a super-luxury fashion designer, discusses how he sources the materials needed to develop his clothing lines. He also discusses how he makes distribution decisions based on his micro production process and global distribution channels. 1. By moving to Italy to work closely with fabric creators, Geoffrey B. Small is working to achieve A. planning integration. B. supply chain integration. C. strong product development processes. D. integrated logistics. Answer: B Geoffrey B. Small is trying to achieve supply chain integration, where all the functional areas of his supply chain are seamlessly linked to each other. 2. Which type of external integration does Geoffrey B. Small have with Piacenza and Luigi Parisotto? A. Relationship Integration B. Measurement Integration C. Technology and Planning Integration D. Customer Integration Answer: A Small and these two fabric companies have a relationship that allows them to pursue a common goal for the greater good, particularly Small’s relationship with Parisotto. This is characteristic of relationship integration. 3. Which trend in supply chain management is Geoffrey B. Small most interested in? A. Outsourcing logistics Functions B. Supply Chain Security C. Electronic Distribution D. Sustainable Supply Chain Management Answer: D Geoffrey B. Small moved his whole operation to Italy to try and minimize the harm done to the world through transportation, and he is socially active as well. This is in line with the sustainable supply chain management trend. 4. What type of production schedule does Geoffrey B. Small use? A. Build-to-stock B. Build-to-order C. Postponement D. Leagile production Answer: B Geoffrey B. Small moved his whole operation to Italy to try and minimize the harm done to the world through transportation, and he is socially active as well. This is in line with the sustainable supply chain management trend. 5. By making products highly exclusive and “less available” Geoffrey B. Small is focusing on which of the business processes in supply chain management? A. Customer relationship management B. Customer service management C. Demand management D. Manufacturing flow management Answer: C Geoffrey B. Small is increasing demand by offering a small supply—he is using demand management. 6. When Geoffrey B. Small takes into consideration the customers at stores that sell his clothing, he is using customer service management. A. True B. False Answer: B Small is using Customer Relationship management by targeting his known and best customers by giving them clothes that meet their needs and wants that they reveal. Customer service management responds to complaints, concerns, questions, or comments. 7. Which type of external supply chain integration reflects Small’s ability to offer long-lasting, distinctive, value through his clothing? A. Customer integration B. Material and service integration C. Planning integration D. Measurement integration Answer: A Small’s clothing reflects what the customers want, and offers them long-lasting, distinctive, value-added products in a financially sustainable manner. 8. Based on what you know about Geoffrey B. Small’s work, which of the following transportation criteria do you think would be most important to him? A. Cost B. Transit Time C. Capability D. Reliability Answer: D Small would be most concerned with sustainability, which isn’t an option, and then getting his carefully created garments to the appropriate place most reliably. CASE ASSIGNMENT: Lululemon Luxury athletics and yoga apparel retailer Lululemon Athletica has had great success in its less than 20 years of operation. With more than 200 retail locations, the company netted a 51.4 percent growth in revenue from fiscal year 2010 to 2011 and projected a more than 10 percent growth in the first quarter of fiscal year 2012. While the company has made its name on high quality, high-cost apparel for fitness enthusiasts—a pair of yoga pants can cost as much as $100—a recent manufacturing error shook consumer confidence and gave rise to quality control problems in the company's supply chain. In March 2013, Lululemon was forced to recall its signature "Luon" yoga pants after finding they were so sheer that they were practically see-through. The recall of the nylon and Lycra-blend Luon pants followed a similar event in 2012, when several of the company's swimsuits and light-colored pants were found to be too sheer. According to RBC Capital Markets analyst Howard Tubin, Lululemon’s fabric errors may simply represent a growing pain for the rapidly expanding company. “They tried to get in front of this by not letting the merchandise stay on store shelves and they’re working with vendors to try to figure out how this happened,” said Tubin. “They're probably handling it the best way they can.” Citing Lululemon’s fourth manufacturing snafu in one year, Credit Suisse analyst Christian Buss strikes a slightly less forgiving tone: “Their supply chain hasn't kept up with the demand that they have for their product, and their quality control processes have been proven inadequate.” "Lululemon Athletica Inc. Announces Fourth Quarter and Full Year Fiscal 2011 Results," Lululemon, March 22, 2012, www.lululemon.com/media/index.php?id=219 (Accessed March 27, 2013); "Lululemon: Yoga Demonstration Not Required for Returns," CBS, March 27, 2013, www.cbsnews.com/8301-201_162-57576590/lululemon-yoga-demonstration-not-required-for-returns (Accessed March 27, 2013); Wendy Kaufman, "Lululemon's Too-sheer Yoga Pants Reveal Problems in Company's Supply Chain," NPR, March 20, 2013, www.npr.org/2013/03/20/174867737/lululemons-too-sheer-yoga-pants-reveal-problems-in-companys-supply-chain (Accessed March 27, 2013). TRUE/FALSE 1. Lululemon’s problems with faulty products could be prevented through better supply chain management. Answer: True 2. Lululemon’s development, distribution, sale, and recall of the sheer Luon yoga pants affects each of the eight critical business processes. Answer: True 3. Because the Luon yoga pants recall was caused by the sourcing and procurement of unsuitable fabric, the error occured primarily at the materials requirement planning step. Answer: True 4. Developed to reduce supply chain costs while at the same time offering better service, sustainable supply chain management delivers improved products at better prices to customers. Answer: False Sustainable supply chain management involves the integration and balancing of environmental, social, and economic thinking into all phases of the supply chain management process. 5. Lululemon could improve its supply chain management by using electronic distribution to deliver its products. Answer: False Electronic distribution includes any kind of product or service that can be distributed electronically. MULTIPLE CHOICE 1. Suppose that, in the wake of Luon yoga pant recall, Lululemon instituted a policy requiring its manufacturing plants and materials suppliers to streamline work processes and thereby provide smooth, high-quality customer experiences. Which of the five types of external integration would such a policy represent? A. Relationship integration. B. Measurement integration. C. Technology and planning integration. D. Material and service supplier integration. E. Customer integration. Answer: D Material and service supplier integration requires firms to link seamlessly to those outsiders that provide goods and services to them so that they can streamline work processes and thereby provide smooth, high-quality customer experiences. 2. Which of the following should Lululemon not do to mend its relationship with its fabric supplier in the wake of the Luon yoga pant recall? A. Launch an investigation into where exactly the error occurred. B. Monitor the state of the relationship as it evolves. C. Implement a new quality control system to test products’ sheerness as they leave the manufacturing plant. D. Acknowledge that the manufacturers demanded too much too quickly. E. Take everything the supplier says with a grain of salt henceforth. Answer: E Because the entire supply chain relies on positive supplier relations, it is when things are hard that effective relationship management is most crucial. 3. Especially important in the event of a recall, this process creates additional marketing and customer service touch points that can be leveraged for added customer value and promotion-driven encounters: A. Demand management. B. Order fulfillment. C. Supplier relationship. D. Product development. E. Returns management. Answer: E Returns management enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain. 4. Which of the following would be an example of Lululemon embracing sustainable supply chain management? A. Putting employees at every level through training to reduce supply chain costs and offer better service. B. Investing in a new fleet of durable diesel-based delivery trucks. C. Holding a sale on “as is” sheer Luon yoga pants. D. Developing a new variety of yoga pant that utilizes environmentally friendly hemp-based fabric. E. Launching an advertising campaign apologizing for its Luon yoga pant recall. Answer: D Sustainable supply chain management includes environmentally friendly materials sourcing; the design of products with consideration given to their social and environmental impact; and end-of-life product management that includes easy recycling and/or clean disposal. 5. Suppose that, frustrated by a series of fabric defects and recalls, Lululemon contracted a consultant to assess its logistical service needs and provide solutions that prevented such errors from occurring. This would exemplify the use of: A. A fourth-party logistics company. B. Outsourcing. C. Offshoring. D. A third-party logistics company. E. Nearshoring. Answer: A A 4PL is a consulting-based organization that assesses another’s entire logistical service needs and provides integrated solutions, often drawing on multiple 3PLs for actual service. GREAT IDEAS FOR TEACHING CHAPTER 13 Debra Decelles, Anthony Rossi, Susan Sunderline, and John Gardner, State Univ. of New York College – Brockport EGG-SPRESS DISTRIBUTION: A SIMULATED DISTRIBUTION EXERCISE Introduction Active learning by students allows for better understanding and memory. The activity in this exercise helps students to internalize the difficulty of developing a distribution system for a new product. Goal In the discussion of physical distribution management, the object is to achieve a high level of customer service while minimizing costs. In order to accomplish this, the anticipation of obstacles and reaction to those obstacles is critical. In this exercise, the goal is to get the product from the point of origin to the point of sale while maintaining a high level of customer service. However, the task is to accomplish this as efficiently as possible, minimizing costs. Activity To teach this concept to a class, the idea of “egg-spress” distribution is introduced. This exercise involves sending groups formed within a class through an obstacle course (distribution channel), carrying Eggman (the product). The task set forth is to deliver Eggman to the finish line fully assembled, undamaged, and as efficiently as possible. After explaining the task, an example of Eggman and the distribution course are given to the students. The Eggman is a hard-boiled egg with a drawn-on face and four push pins inserted as arms and legs. The distribution course can vary—ours is one example. We began with a piece of four-inch diameter PVC tubing that was held out our second-story classroom window. The Eggman had to be dropped through this launch to ground level. At ground level, six cones were set up for the Eggman to be carried through. The third leg of the race involved getting the Eggman over a wooden dowel held five to six feet high. Next, the Eggman had to travel under a second wooden dowel placed just 10 inches above ground. The final leg was a simple hopscotch to the finish line. Though the course was fairly easy, the challenge was in the rules placed upon the students. Rules 1. The Eggman can never touch the ground. 2. No one is allowed to touch the Eggman with their bare hands, except to release him into the launch tube. 3. A different form of transportation must be used for each leg of the course. If either of the first two rules were broken, the students had to return to the bottom of the launch and begin the course again. Example forms of transportation include a softball mitt, a ladle, a plastic bowl, a paper baggy, a lacrosse stick, and a small hand towel. By giving more choices of transportation than there were legs to the course, the students were made to contemplate the benefits and disadvantages of each. Further, the students had to strategically plan out the best path through the course given the resources available. Operations Once the instructions were understood, the students were given a few minutes to design their approach. In this time no further rule clarification was given, thus allowing the students to be innovative and creative around the basic three rules. Each team was then timed as they went through the course. It is important that later teams be kept from watching and copying strategies. Learning Objectives The student should better understand: • The importance and implications of forming proper distribution channels. • The importance of managing of communication relationships throughout the distribution processes (e.g., team conferences prior to attempting the course). • Transportation choices (e.g., using the ladle versus the bowl at the high wooden dowel). • The use of new logistics tactics such as postponed assembly and the coordination of marketing and logistics through packaging (e.g., inserting the push pins at the end or the course). • To continually challenge corporate channel cultures that need reassessment in order to react to internal and external environmental changes (i.e., creative thinking). Variations to the original are possible, such as: • Alternative channel choices (e.g., offering the choice of two courses where the student must decide which to attempt. One course may have more difficult obstacles but be shorter, while the other would be longer but uncomplicated). • Product packaging decision making (e.g., requiring that the product be packaged either prior to distribution for added strategic planning or after). • Allowing for a trial run to test ideas. • Including market research (e.g., only allowing one student to see the course and report back to their team prior to the attempt). Evaluation The exercise was tested by a Marketing Management class. Teams were formed and briefed, and ran the course with varied strategies. The strategies lead to a relevant debriefing using distribution terms and tactics. The class evaluated the exercise on an eight-item, seven-point scale evaluation form, giving an overall excellent rating to the presentation. Overall, our class had a great time with the exercise. Monica Perry, University of North Carolina at Charlotte Thomas Stevenson, University of North Carolina at Charlotte MARKETING CHANNEL FUNCTIONS: A LOW-TECH KINESTHETIC SIMULATION Why? Undergraduate students often have only a slight appreciation for the functions provided by intermediaries in marketing channels. Advertising messages that tout “we keep prices low by cutting out the middleman” merely exacerbate the problem. What? To enhance students’ appreciation of intermediary functions, students participate in a low-tech simulated channel. The simulation consists of two steps: 1. Manufacturers and consumers conduct transactions directly, and then 2. A retailer is introduced with the manufacturers and retailer interacting while the consumers and retailer interact. It is a very physical exercise that shows the value of intermediaries in addressing quantity, assortment and spatial discrepancies. How? 1. Prior to conducting the simulation, make signs on different color cardstock for various positions, lists, and products: • Four different manufacturers (e.g., Proctor & Gamble, Kraft, etc.) • Pallets of products for each manufacturer (print 100 brand names on each piece of cardstock and get four pairs of scissors, one for each manufacturer) • Five different consumers • Five shopping lists, one for each consumer. Each list should have at least one branded item from each of the four manufacturers (e.g,. one box of Tide laundry detergent, two packages of Kraft cheese, etc.) • One retailer • Four purchase orders for the retailer, corresponding to products from each manufacturer in sufficient quantity to supply consumer demand (e.g., one case of Tide laundry detergent) Use products that students are reasonably familiar with, such as grocery products. 2. Conduct the simulation in class: • Obtain 3 student volunteers and assign them manufacturer (two students per) and consumer (one student per) positions. Give manufacturers signs, product pallets, and scissors. Give consumers signs and shopping lists. • Have the consumers stand on one side of the classroom while the manufacturers stand on the opposite side. • Part I: • Begin the simulation by having each consumer fill their shopping list by going to each of the manufacturers. Each manufacturer will have to select and provide an individual product from their pallets (make sure each manufacturer has a pair of scissors to “select” an individual product for consumers to buy). • Track the time that it takes to complete all the transactions (4 manufacturers x 5 consumers = 20 transactions in total). Be prepared because chaos will ensue! If you have a large class, run multiple channels so that more students are involved. • Part II: • Obtain four more volunteers to be the retailers and give them the purchase orders. Place the retailers in the middle of the classroom between the manufacturers and consumers. • Start the simulation by first allowing the retailers to obtain the products from the manufacturers and then let consumers fill their shopping lists from the retailers. Log the time that it takes to complete all the transactions (nine transactions in total). It is virtually impossible for the 20 transactions to take less time than the 9 transactions! Some students may suggest that the 9 transactions take less time because there was a practice round without the retailer. You can rerun another round with no retailer to show that it is not the effect of practice. Katryna Johnson, Concordia University LOGISTICS AND RELAY RACES Most students at some point in their lives have completed a relay race. The purpose of this relay race is to help students understand how different forms of transportation are used for different materials and how strategic planning is important to working out the logistics. Materials 1. Items to be transported (CARGO): big wad of chewed gum, cotton balls, sugar, cheerios, water, eggs (or anything else you want) 2. Transportation Devices (MODES): different size measuring cups, tongs, bowls, toothpicks, spoons (various kitchen utensils) Activity 1. Before class, set up a room for the race. At one end of the room you will have all of the cargo and all of the modes of transportation; at the other end of the room will be the finish line. 2. Divide the students into teams (the number of teams will depend on the size of your class). Assign a few students to observe the teams. Tell the students that you have measured the cargo in advance to see which items work best in which modes of transportation (for instance, you know that the sugar best fits in a 1/2-cup measuring cup and the cheerios best fit in a 1/3–cup measuring cup). Instruct the class that you will give them a few minutes to develop a strategy to most efficiently and effectively transport all of the items from one end of the room to another. 3. Tell students that they can reuse any of the transportation devices. Inform students that spilling any of the cargo or having any leftover cargo in a transportation device will count against them. For instance, if someone transports water in a bowl and then uses the same bowl to transport sugar, there will be sugar left over in the bowl. 4. Notify students that someone from each team needs to write down how all of the items are being transported. You will use this information and the group times for completing the relay to determine which group wins. 5. Have the students complete the relay race. The observers should be watching the teams to make sure they are not spilling anything or cheating, and should be recording information accurately. 6. Use information from the observers to determine your winner. If the teams finish close in time, use their recordings to determine who was most effective and efficient. For instance, the last time I did this, one team used a toothpick to transport the wad of gum, and another stuck it in a large bowl. While the second team’s method was effective, it was not efficient. Object Lesson Students learn about the importance of planning in logistics to increase efficiency and effectiveness. As an example, if you put sugar in a bowl that had water in it previously, some of the sugar will stick to the bowl. It does work to use the bowl for transportation, but the end product is not in the same form (wet sugar) as it was originally and the quantity is less (some sugar will stick to the bowl). I also point out to my students how different modes of transportation are needed for different forms of cargo. For instance, the wad of gum represents a sensitive product such as flammable material that needs to be handled carefully. I have had students ask if they can throw the items across the room (to represent air transportation). I have said no to this to avoid possible problems, but it’s up to you what you want to do! Douglas K. Ross, Franklin University THE CHOCOLATE CANDY BRANDING EXERCISE I have used this exercise in classes ranging from Principles of Marketing to MBA-level Marketing Management. This is a fun small-group exercise that fits will when discussing brands and branding or when discussing the marketing mix variables. I use this after discussing what constitutes a good brand name and how the target market, packaging, and so forth, must be considered. It usually takes approximately 40–45 minutes but can be accomplished in as little as 30 minutes. Break the class into small groups (three or four students per group works best). On an overhead or PowerPoint I have a small paragraph explaining that each group is a marketing team who works for a company that has developed a new chocolate. The chocolate is different in that it contains a large (really extreme) amount of caffeine. The team must: • Determine the most appropriate target market(s). • Develop a brand name for the product. • Develop the packaging, including colors that will be used. • Determine the price. • Determine the distribution/outlets. The groups have 20–30 minutes to accomplish this. Divide the whiteboard (or have them use computers if available, PowerPoint works fine for this) and have them draw their product including the brand name on the board. They should also indicate the colors used on the package. This part of the activity takes approximately 5–10 minutes. A member from each group then talks about their brand. They should discuss: • Why they chose the target market(s) they did. • How they came up with the brand name. • Why they used the colors they did and aspects of the lettering. • How they determined the price. • How their distribution fits with their target market. After the students’ discussion, I talk about the similarities and differences in the brands, such as the various target markets or the various forms they used. Students have used regular bars, bite size, various shapes (lightning bolts and coffee cups) liquid chocolate, etc. This exercise allows the students to be creative and reinforces the discussion on brands and branding. Variations of this exercise can include chocolate that contains all of the daily requirements of vitamins plus fiber. You can also assign half of the groups the chocolate with caffeine and the other half the chocolate with vitamins and fiber. Part 4, Ch. 13, Supply Chain Management: Why L.L.Bean is updating its production to keep up with customer demand. For the last 100 years or so, L.L.Bean has been making and selling its classic line of boots. (They’re called duck boots or Bean Boots, depending on whom you ask.) L.L.Bean boots have gone in and out of popularity with consumers, but generally, the company’s production capabilities have matched demand for the boots. However, the last few years have broken that mold in a big way. Since 2011, L.L.Bean has sold out of its stock of duck boots well before the season ended. This means customers looking to purchase boots from L.L.Bean were often unable to find a pair in time for cold weather, or have had to wait for back orders to be filled. December 2014 had a particularly long wait list of more than 100,000 orders. Part of the problem is that L.L.Bean’s boot production model is somewhat time and labor intensive. L.L.Bean boots are produced almost entirely by hand in a factory in Maine. Finding skilled workers is difficult because the shoemaking industry has all but disappeared in the United States. (Most of the world’s shoes today are made in China.) L.L.Bean has a training program to teach new workers, but it takes six months to complete. L.L.Bean is updating its production capacity by hiring more workers and adding another machine to mold the boots’ rubber bottoms. These efforts should help the company anticipate future customer demand. However, L.L.Bean’s production updates are on the conservative side—and for good reason. The company makes a high-quality boot that comes with a lifetime satisfaction guarantee. That means that many new customers will not be buying replacement boots for a good number of years. Plus, L.L.Bean knows that fashion trends come and go. It wants to avoid hiring 1,000 workers, training them for six months, employing them for one boot-making season, and then laying them off if and when the duck boots stop selling at such a high rate. Sources: Bain, M., “L.L. Bean’s Duck Boots Are Ugly—So Why Do They Keep Selling Out?” QZ.com, September 30, 2015, http://qz.com/513203/ll-beans-duck-boots-are-ugly-so-why-do-they-keep-selling-out/ . Carpenter, M., “New Popularity of L.L. Bean Boots Sparks Scramble to Fill Orders,” National Public Radio, December 18, 2014, http://www.npr.org/2014/12/18/371413482/new-popularity-of-l-l-bean-boots-sparks-scramble-to-fill-orders . “Customers Storm New L.L. Bean in Short Pump at Grand Opening,” November 6, 2015, http://wric.com/2015/11/06/people-line-up-overnight-for-l-l-beans-grand-opening-in-short-pump/. Lam, B., “Why L.L. Bean’s Boots Keep Selling Out,” The Atlantic, October 19, 2015, http://www.theatlantic.com/business/archive/2015/10/llbean-duck-boot-labor-shoes-maine/410863/. Northrup, L., “Why Are 100,000 People on a Waiting List to Buy Duck Boots from L.L. Bean?” National Public Radio, December 5, 2014, http://www.npr.org/2014/12/18/371413482/new-popularity-of-l-l-bean-boots-sparks-scramble-to-fill-orders. Solution Manual for MKTG: Principles of Marketing Charles W. Lamb, Joe F. Hair, Carl McDaniel 9781305631823, 9781285860145, 9781337116800