Transcript Global Marketing Management A European Perspective

Global Marketing Management
Chapter 1 Introduction to
Global Marketing
Warren J. Keegan
Overview
Marketing: A Universal Discipline
The Three Principles of Marketing
Global Marketing:What It Is & What It Is Not
Importance of Global Marketing
Management Orientation & Global Marketing
Driving and Restraining Forces Affecting Global
Integration & Global Marketing
Summary
Keegan: Global Marketing Management
Chapter 1/ 2
Learning Objectives
Understand how the world economy developed over
the past decades
Know the impact of globalization on the marketing
discipline
Learn about the interdependencies between
management orientation & marketing performance
Understand the factors supporting or inhibiting
international marketing activities
Keegan: Global Marketing Management
Chapter 1/ 3
Marketing: A Universal Discipline
Marketing (1): the process of focusing the resources &
objectives of an organization on environmental
opportunities & needs
Marketing (2): a set of concepts, tools, theories,
practices, procedures, & experiences
Although marketing is a universal discipline,
marketing practice varies from country to country
Keegan: Global Marketing Management
Chapter 1/ 4
The Marketing Concept (1)
Concept has chanced dramatically
1950’s: Focus on products
1960’s:
Focus on customer orientation
Development of marketing mix: product, price, place,
promotion (4P’s)
Keegan: Global Marketing Management
Chapter 1/ 5
The Marketing Concept (2)
1990’s:
Focus on customer in the context of the broader external
environment
Competition, government policy & regulation
Focus on stakeholder value
employees, customers, shareholders, society
Keegan: Global Marketing Management
Chapter 1/ 6
The Marketing Concept (3)
Today:
Two key tasks of marketing
Focus on customer & his/her environment
Create value for consumers & stakeholder
Shift towards
Focus on managing strategic partnerships
Positioning of firm in value chain to optimize value
creation
Profit as a measure of success, not an end in itself
Keegan: Global Marketing Management
Chapter 1/ 7
The Three Principles of Marketing
CUSTOMER VALUE
DIFFERENTIATION
Keegan: Global Marketing Management
FOCUS
Chapter 1/ 8
Key Elements of Marketing –
1. Customer Value
 Goal: create customer value that is greater than the
value created by competitors
 Strategy:
 Expand or improve product and/ or service benefits
 Reduce the price
 Combine these two elements
Keegan: Global Marketing Management
Chapter 1/ 9
Elements of Marketing –
Customer Value
V=B/P
V = Value
B = Perceived Benefits – Perceived Costs
P = Price
Keegan: Global Marketing Management
Chapter 1/ 10
Key Elements of Marketing –
2. Differentiation
 Goal: create competitive advantage through
differentiation
 Advantage can exist in any element of a company’s
offer
 One way to penetrate a new national market is to
offer a superior product at a lower price.
Keegan: Global Marketing Management
Chapter 1/ 11
Key Elements of Marketing –
3. Focus
 Goal: a concentration of attention & resources
 Requirement to create customer value at a
competitive advantage
 A viable way for small & medium sized companies
to achieve dominant position in world market
 A clear focus on customer needs & wants
Keegan: Global Marketing Management
Chapter 1/ 12
Global Marketing
 Marketing discipline is universal but markets &
customers are quite different
 3 domains of knowledge
 Cross-Cultural Knowledge
 Country/ Regional Knowledge
 Cross-Border Transactions Knowledge
 Need for “Global Localization”: Adjustment of
global marketing strategies to local requirements
Keegan: Global Marketing Management
Chapter 1/ 13
Examples of Global Marketing
Product
Design
Canon/photocopier/McDonalds/Toyota/Ford
Brand Name
Marlboro/Coke/Pepsi/Mercedes/Caterpillar
Product
Positioning
Colgate toothpaste/Unilever fabric softener
Packaging
Gillette razors
Advertising
Strategy
Coca-cola/British Airways/Benetton
Sales
Promotion
IBM
Distribution
Benetton/United Distillers
Customer
Service
American Express/Hertz
Keegan: Global Marketing Management
Chapter 1/ 14
Importance of Global Marketing
 International arena is of great importance to
companies maximizing growth potential
 75% of market potential is outside the US
 94% of market potential for German companies is
outside of Germany
 A large number of industries will be dominated by a
handful of global companies
Keegan: Global Marketing Management
Chapter 1/ 15
Management Orientation and Global
Marketing (1)
 Different Management Orientations in the Global
Arena – EPRG Framework
Polycentric
Ethnocentric
Regiocentric
Keegan: Global Marketing Management
Geocentric
Chapter 1/ 16
Management Orientation & Global
Marketing (2)
 Ethnocentric Orientation:
 Characteristic of domestic & international companies
 Opportunities outside the home market are pursued by
extending various elements of the marketing mix
 Polycentric Orientation
 Characteristic of multinational companies
 Marketing mix is adapted by autonomous country
managers
Keegan: Global Marketing Management
Chapter 1/ 17
Management Orientation & Global
Marketing (3)
 Regiocentric or Geocentric Orientation:
 Characteristic of global & transnational companies
 Marketing opportunities are pursued by both extension &
adaptation strategies in global markets
Keegan: Global Marketing Management
Chapter 1/ 18
Driving Forces Affecting Global Marketing
 Technology
 Regional Economic Agreements
 Market Needs & Wants
 Transportation & Communication Improvements
 Product Development Costs
 Quality
 World Economic Trends
 Leverage
 The Global/ Transnational Corporation
Keegan: Global Marketing Management
Chapter 1/ 19
Restraining Forces Affecting Global
Marketing
 Management Myopia & Organizational Culture
 National Controls & Barriers
Keegan: Global Marketing Management
Chapter 1/ 20
Summary
 Global marketing is the process of focusing
resources on global marketing opportunities
 Goal, to create customer value & competitive
advantage by maintaining focus
 Three classifications of management orientation:
ethnocentric, polycentric, regiocentric, geocentric
 Global marketing importance is shaped by a variety
of driving & restraining forces
Keegan: Global Marketing Management
Chapter 1/ 21