Global Marketing Management Warren J. Keegan Bodo B. Schlegelmilch Introduction to Global Marketing.

Global Marketing Management

Warren J. Keegan

Bodo B. Schlegelmilch

Introduction to Global Marketing

Keegan/SchlegelmilchGlobal Marketing Management: A European Perspective

Chapter 1/ 2

Marketing: A Universal Discipline

‘The management process responsible for identifying, anticipating and satisfying customer requirements profitably.’

(The Chartered Institute of Marketing) Marketing is a social and managerial process by which

individuals and groups obtain what they need and want through creating and exchanging products and value with others.

(Kotler, Armstrong, Saunders and Wong, 2001: 5)

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. (The American Marketing Association)


Chapter 1/ 3

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


Chapter 1/ 4

The Marketing Concept (1)

Concept has chanced dramatically1950’s:

Focus on products

1960’s: Focus on customer orientation Development of marketing mix: product, price, promotion,

place (4P’s)


Chapter 1/ 5


1990’s: 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


Chapter 1/ 6


Today: Two key tasks of marketing

Focus on customer and his/her environmentCreate 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


Chapter 1/ 7

The Three Key Elements of Marketing

VALUE

DIFFERENTIATION FOCUS


Chapter 1/ 8

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


Chapter 1/ 9

The Three Key Elements of Marketing - Differentiation

Goal: create competitive advantage through differentiation

Advantage can exist in any element of a company’s 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


Chapter 1/ 10

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


Chapter 1/ 11

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


Chapter 1/ 12

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


Chapter 1/ 13

Management Orientation and Global Marketing (1)

Different Management Orientations in the Global Arena – EPRG Framework

Regiocentric

Ethnocentric

Geocentric

Polycentric


Chapter 1/ 14


Ethnocentric Orientation: Home country is superior compared to the rest of the

world. Company personnel see only similarities in market Characteristic for domestic and international companies Marketing opportunities outside the home market are

pursued by extending various elements of the marketing mix or ignored some time

One of the internal threats to a company


Chapter 1/ 15


Polycentric Orientation Characteristic for multinational companies Opposite of ethnocentrism Each company in which a company does business

is unique Sees differences in foreign countries Marketing mix is adapted by autonomous country

managers


Chapter 1/ 16


Regiocentric or Geocentric Orientation: Characteristic for global and transnational companies Managers view regions unique and seek to develop an

integrated regional strategy Geocentric – world as a potential market & strive to

develop integrated world market strategies Marketing opportunities are pursued by both, extension

and adaptation strategies in global markets


Chapter 1/ 17

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


Chapter 1/ 18

Factors Supporting or Inhibiting Global Integration (2)

Restraining Forces Management Myopia Ethnocentric Organization Culture National Controls Cost War Market differences

Global Marketing Management Warren J. Keegan Bodo B. Schlegelmilch Introduction to Global Marketing.

Documents

Transcript of Global Marketing Management Warren J. Keegan Bodo B. Schlegelmilch Introduction to Global Marketing.