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 .

theories. practices. marketing practice varies from country to country Keegan: Global Marketing Management Chapter 1/ 4 . & experiences Although marketing is a universal discipline. tools.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. procedures.

place. price.The Marketing Concept (1) Concept has chanced dramatically 1950’s: Focus on products 1960’s: Focus on customer orientation Development of marketing mix: product. promotion (4P’s) Keegan: Global Marketing Management Chapter 1/ 5 .

shareholders. society Keegan: Global Marketing Management Chapter 1/ 6 .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.

not an end in itself Keegan: Global Marketing Management Chapter 1/ 7 .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.

The Three Principles of Marketing CUSTOMER VALUE DIFFERENTIATION FOCUS Keegan: Global Marketing Management Chapter 1/ 8 .

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 .Key Elements of Marketing – 1.

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 Brand Name Product Positioning Packaging Advertising Strategy Sales Promotion Canon/photocopier/McDonalds/Toyota/Ford Marlboro/Coke/Pepsi/Mercedes/Caterpillar Colgate toothpaste/Unilever fabric softener Gillette razors Coca-cola/British Airways/Benetton IBM Distribution Customer Service Benetton/United Distillers 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 Geocentric Keegan: Global Marketing Management 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 .

geocentric  Global marketing importance is shaped by a variety of driving & restraining forces Keegan: Global Marketing Management Chapter 1/ 21 . polycentric. regiocentric. to create customer value & competitive advantage by maintaining focus  Three classifications of management orientation: ethnocentric.Summary  Global marketing is the process of focusing resources on global marketing opportunities  Goal.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.