Global Marketing

Management
A European Perspective
Warren J. Keegan
Bodo B. Schlegelmilch
Introduction to Global
Marketing
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
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Overview
The Marketing Concept
The Three Key Elements of Marketing
Scope and Boundaries of Global Marketing
Importance of Global Marketing
Management Orientation and Global Marketing
Factors Supporting or Inhibiting Global Integration
Summary
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Global Marketing Management: A European Perspective
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Learning Objectives
Understanding how the world economy developed
over the past decades
Knowing the impact of globalization on the
marketing discipline
Learning about the interdependencies between
management orientation and marketing performance
Understanding the factors supporting or inhibiting
international marketing activities
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Marketing: A Universal Discipline
Marketing (1): the process of focusing resources and
objectives of an organization on environmental
opportunities and needs
Marketing (2): a set of concepts, tools, theories,
practices, procedures, and experiences

Although a universal discipline, marketing practice
varies from country to country
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The Marketing Concept (1)
Concept has chanced dramatically
1950s:
Focus on products
1960s:
Focus on customer orientation
Development of marketing mix: product, price, promotion,
place (4Ps)
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Global Marketing Management: A European Perspective
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The Marketing Concept (2)
1990s:
Focus on customer in the context of the broader external
environment
E.g. competition, government policy and regulation

Focus on stakeholder value
E.g. employees, customers, shareholders, society
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Global Marketing Management: A European Perspective
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The Marketing Concept (3)
Today:
Two key tasks of marketing
Focus on customer and his/her environment
Create value for consumers and 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/Schlegelmilch
Global Marketing Management: A European Perspective
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The Three Key Elements of
Marketing
VALUE
DIFFERENTIATION FOCUS
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Global Marketing Management: A European Perspective
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The Three Key Elements of
Marketing - Value
Goal: create 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
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Global Marketing Management: A European Perspective
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The Three Key Elements of
Marketing - Value
V = Value
B = Perceived Benefits Perceived Costs
P = Price
V = B / P
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Global Marketing Management: A European Perspective
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The Three Key Elements of
Marketing - Differentiation
Goal: create competitive advantage through
differentiation
Advantage can exist in any element of a companys
offer: e.g. product, price, advertising
Competitive advantage should be sustainable over
extended period of time
BMW: Combination of superior production skills
and marketing competencies
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Global Marketing Management: A European Perspective
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The Three Key Elements of
Marketing - Focus
Goal: a concentration of attention and resources
Requirement to create customer value at a
competitive advantage
A viable way for small and medium sized companies
to achieve dominant position in world market
FREQUENTIS: 90% export share with air traffic
control systems
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Global Marketing Management: A European Perspective
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Scope and Boundaries of Global
Marketing
Marketing discipline is universal but markets and
customers are quite different
Three domains of knowledge relevant to
international managers
Cross-Cultural Knowledge
Country/ Regional Knowledge
Cross-Border Transactions Knowledge
Need for Global Localization: Adjustment of
global marketing strategies to local requirements
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Global Marketing Management: A European Perspective
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Importance of Global Marketing
Activities in the international arena are of eminent
importance to companies in achieving maximum
growth potential
E.g.: 94% of world market potential for German
companies is outside of Germany
Trend: A large number of industries will be
dominated by a handful of global companies
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Global Marketing Management: A European Perspective
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Management Orientation and Global
Marketing (1)
Different Management Orientations in the Global
Arena EPRG Framework
Regiocentric
Ethnocentric
Geocentric
Polycentric
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Management Orientation and Global
Marketing (2)
Ethnocentric Orientation:
Characteristic for domestic and international companies
Marketing opportunities outside the home market are
pursued by extending various elements of the marketing
mix
Polycentric Orientation
Characteristic for multinational companies
Marketing mix is adapted by autonomous country
managers
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Global Marketing Management: A European Perspective
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Management Orientation and Global
Marketing (3)
Regiocentric or Geocentric Orientation:
Characteristic for global and transnational companies
Marketing opportunities are pursued by both, extension
and adaptation strategies in global markets
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Factors Supporting or Inhibiting
Global Integration (1)
Driving Forces
Technology
Regional Economic Agreements
Market Needs and Wants
Transportation and Communication Improvements
Product Development Costs
Quality
World Economic Trends
Leverage
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Global Marketing Management: A European Perspective
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Factors Supporting or Inhibiting
Global Integration (2)
Restraining Forces
Management Myopia
Ethnocentric Organization Culture
National Controls
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Summary
Global marketing is the process of focusing
resources on global marketing opportunities
Goal, to create customer value and competitive
advantage by maintaining focus
Three classifications of management orientation:
ethnocentric, polycentric, regiocentric, geocentric
Global marketing importance is shaped by a variety
of driving and restraining forces