Transcript Chapter 17

Global Marketing
Management
A European Perspective
The Future of Global
Marketing
Warren J. Keegan
Bodo B. Schlegelmilch
Overview
Forces Shaping the Future of Global Marketing
Leadership Challenges
Careers in Global Marketing
Summary
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Learning Objectives
Knowing the major forces shaping the future of
global marketing
Understanding the demands that increasing
business complexity places on global leaders
Learning about the opportunities open to students
that intend pursuing a career in global marketing
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Forces Shaping the Future of Global
Marketing
Growth and Prosperity vs. Poverty and Despair
Free Markets vs. Growing Protectionism
Population Growth vs. Population Shortage
Global Institutions vs. Resurgence of Nation States
Convergence vs. Fragmentation of Consumer Taste
Industry Concentration and Blurring Industry
Boundaries
Virtual Enterprises and Electronic Markets
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Growth and Prosperity vs. Poverty
and Despair
Most of the world‘s poor countries are getting
richer
Broader global prosperity translates into dramatic
growth opportunities
However, the gap between the rich and the poor is
increasing
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Free Markets vs. Growing
Protectionism
The fight between market vs. state-control is over
Markets are king the world around
However, protectionism appears to be on the rise
Must economic democracy be combined with
political democracy?
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Population Growth vs. Population
Shortage
Over the last 40 years, world population doubled
from 3 to 6 billion
World population expected to reach 9 billion in 2050
Development might overwhelm the earth’s resources
However, decreasing birth rates and increasing life
expectations in developed world might be most
important societal challenge of the future
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Rule of Global Institutions vs.
Resurgence of Nation States
Influence of nation states decreases
Political and economic power appears to be
transferred to regional and global institutions
(e.g. EU, WTO, IMF, OPEC)
However, there’s a contradictory trend, namely a
floury of nationalism and a sprouting of new
countries everywhere
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Convergence vs. Fragmentation of
Consumer Taste
International marketers faced with increasingly
complex trends
Convergence of tastes around the world
e.g. Coca Cola, Perrier, McDonalds, Madonna
However, there is a trend towards fragmentation
of tastes and consumption habits
e.g. Italian suit, Chinese dinner, American jeans
New phenomenon: Fragvergence
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Industry Concentration and Blurring
Industry Boundaries
Dominance of mega-mergers
Bankers Trust (US) acquired by Deutsche Bank (G)
Amoco (US) acquired by British Petroleum (GB)
Chrysler (US) acquired by Daimler Benz (G)
Blurring of Industry Boundaries
Car companies sell financial services (e.g. GM)
Petrol stations sell food and non-food (e.g. BP)
Software companies sell consulting services (e.g. SAP)
Uncertainty increases
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Virtual Enterprises and Electronic
Markets
Virtual enterprises and electronic markets
represent transformation of economy
Internet becomes virtual marketplace
Information technology becomes key instrument
for managing external relationships
Mushroom companies: grow overnight - might
disappear rather quickly (e.g. Boo.com)
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Leadership Challenges
Demands on Global Leadership
formulate and implement global strategies that
- leverage worldwide learning
- respond fully to local needs and wants
- draw on all the talent and energy of every member of
the organization
global vision and sensitivity to local needs
understanding of uncertainty created by global
economy
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Leadership Challenges
World’s most respected business leaders
Jack Welch - General Electric
Bill Gates - Microsoft
Lou Gerstner - IBM
Jürgen Schrempp - DaimlerChrysler
Micheal Dell - Dell Computers
Warren Buffet - Berkshire Hathaway
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Careers in Global Marketing
Global experience counts
Community of European Schools (CEMS)
Traineeships (AIESEC as starting point)
MBA programmes
Top ranked international business programmes
Thunderbird - American Graduate School of
International Management
University of South Carolina
University of Columbia
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Summary
Future of global marketing is characterized by
increased environmental complexity and
contradictory trends
growth and prosperity vs. poverty and despair
free markets vs. protectionism
population growth vs. population shortage
convergence vs. fragmentation of consumer taste
industry concentration and blurring industry boundaries
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