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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Global Marketing Management: A European Perspective
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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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