Chapter 1 - Global Marketing (Hollensen 2017)

Svend Hollensen
GLOBAL MARKETING
5th Edition
Introduction Part I and

Chapter 1 Global marketing in the firm
Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011
Slide 1.2

Slide 1.3
Figure 1.1 The five-stage decision model in global marketing

Slide 1.4

Slide 1.5
Figure 1.2 Development of the global marketing plan

Source: Hollensen, S. (2008) Essentials of Global Marketing, FT/Prentice Hall, pp. 6 –9

Slide 1.6
Figure 1.2 Development of the global marketing plan (Continued)


Slide 1.7


Slide 1.8


Slide 1.9

Slide 1.10
Ch. 1: Learning objectives

 Characterize and compare the
management style in SMEs (small and
medium sized enterprises) and LSEs
(large-scale enterprises)
 Identify drivers for global integration and
market responsiveness
 Explain the role of global marketing in the
firm from a holistic perspective

Slide 1.11
Ch. 1: Learning objectives (2)
 Describe and understand the concept of

the value chain
 Identify and discuss different ways of
internationalizing the value chain

Slide 1.12
Globalization
Globalization reflects trend of buying,

developing products / services,
producing, selling and distributing
products / services in many countries
and regions of world

Slide 1.13

Slide 1.14
ex ante
ex post
Realized
Unrealized
strategy strategy
Source: Mintzberg, 1987, p. 14. Copyright © 1987 by the Regents of the University of California. Reprinted from the California
Management Review, Vol. 30, No. 1. By permission of the Regents.
Figure 1.3 The intended and emergent strategy

Source: Mintzberg (1987, p. 14). Copyright © 1987, by The Regents of the University of California. Reprinted from the California Management Review, Vol. 30, No. 1. By permission of
The Regents
Slide 1.15
Figure 1.4 Incremental change and strategic drift

Source: Johnson, G. (1988) ‘Rethinking incrementalism’, Strategic Management Journal, 9. pp. 75–91. Copyright 1988 © of John Wiley & Sons Ltd. Reproduced with permission

Slide 1.16
Figure 1.5 The entrepreneurial decision-making model

Slide 1.17

Slide 1.18
Figure 1.6 The nine strategic windows

Source: Solberg (1997, p. 11). Reprinted with kind permission. In the original article Solberg has used the concept ‘globality’ rather than ‘globalism’

Slide 1.19
Definition of ‘Global Marketing

Slide 1.20
Figure 1.7 The glocalization framework

Slide 1.21
Figure 1.8 The principle of transferring knowledge and learning across borders

Slide 1.22
The global integration/market responsiveness grid: the future orientation of

Figure 1.9
LSEs and SMEs
Slide 1.23
What is this?
When accumulated volume in

production results in lower cost price
per unit, _____ occur.
Economies of scale

Slide 1.24
Finding economies of scale
 Reducing operating costs per unit and spreading

fixed costs over larger volume due to
‘experience curve effects’
 Pooling global purchasing gives the opportunity
to concentrate global purchasing power over
suppliers
 Building of centres of excellence by using larger
scale and focusing talent in one location

Slide 1.25
What is this?
When resources can be reused

from one business/country in
additional business/countries, _____
occur.
Economies of scope

Slide 1.26
McDonald’s is moving towards a

higher degree of market
responsiveness

Slide 1.27
Forces for global

coordination/integration
 Removal of trade  Worldwide markets
barriers  Global village
 Global
accounts/customers  Worldwide
communication
 Relationship
management/network  Global cost drivers
organization
 Standardized
worldwide technology

Slide 1.28
Forces for
market responsiveness
 Cultural differences
 Regionalism/protectionism
 Deglobalization trend

Slide 1.29
Figure 1.11 A simplified version of the value chain

Slide 1.30
Figure 1.12 The value chain in relation to the strategic pyramid

1-30
Slide 1.31
Pocoyo Series © Zinkia Entertainment, S.A.
Figure 1.13 The value chain in relation to the strategic pyramid

Slide 1.32
Figure 1.14 Centralizing the upstream activities and decentralizing the downstream
activities
Source: Hollensen, S. (2008) Essentials of Global Marketing, FT/Prentice Hall Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011
Slide 1.33
Source: based on Stabell and Fjeldstad (1998)

Slide 1.34
Figure 1.15 Combining the product value chain and the service value chain

Slide 1.35
What is this?
What term refers to an extension of

the conventional value chain,
where the information processing
itself can create value for
customers?
Virtual value chain

Slide 1.36
Figure 1.16 The virtual value chain as a supplement to the physical chain

Slide 1.37
Creating value
by using information
Managing risks
Reducing costs
Offering products and services
Inventing new products
1-37
Slide 1.38

Slide 1.39
1-39
Slide 1.40
1-40
Slide 1.41

Slide 1.42

Slide 1.43
Questions for discussion (1)
 What is the reason for ‘convergence

orientation’ in LSEs and SMEs?
 How can an SME compensate for its lack
of resources and expertize in global
marketing when trying to enter export
markets?

Slide 1.44
Questions for discussion (2)
 What are the main differences between

global marketing and marketing in the
domestic context?
 Explain the main advantages of
centralizing upstream and decentralizing
downstream activities?
 How is the ‘virtual value chain’ different
from the ‘conventional value chain’?

Chapter 1 - Global Marketing (Hollensen 2017)

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 1 - Global Marketing (Hollensen 2017)

Uploaded by

Copyright:

Available Formats

Svend Hollensen

Introduction Part I and

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.1 The five-stage decision model in global marketing

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.2 Development of the global marketing plan

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.2 Development of the global marketing plan (Continued)

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.2 Development of the global marketing plan (Continued)

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.2 Development of the global marketing plan (Continued)

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Ch. 1: Learning objectives

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Ch. 1: Learning objectives (2)

 Describe and understand the concept of

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Globalization reflects trend of buying,

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.3 The intended and emergent strategy

Figure 1.4 Incremental change and strategic drift

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.5 The entrepreneurial decision-making model

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.6 The nine strategic windows

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Definition of ‘Global Marketing

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.7 The glocalization framework

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

The global integration/market responsiveness grid: the future orientation of

When accumulated volume in

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Finding economies of scale

 Reducing operating costs per unit and spreading

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

When resources can be reused

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

McDonald’s is moving towards a

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Forces for global

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.11 A simplified version of the value chain

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Figure 1.12 The value chain in relation to the strategic pyramid

Pocoyo Series © Zinkia Entertainment, S.A.

Figure 1.13 The value chain in relation to the strategic pyramid

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Source: based on Stabell and Fjeldstad (1998)

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

What term refers to an extension of

Virtual value chain

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Hollensen: Global Marketing, 5th Edition, © Pearson Education Limited 2011

Offering products and services

Inventing new products