global marketing management warren j. keegan bodo b. schlegelmilch introduction to global marketing
TRANSCRIPT
Global Marketing Management
Warren J. Keegan
Bodo B. Schlegelmilch
Introduction to Global Marketing
Keegan/SchlegelmilchGlobal Marketing Management: A European Perspective
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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)
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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 dramatically1950’s:
Focus on products
1960’s: Focus on customer orientation Development of marketing mix: product, price, promotion,
place (4P’s)
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The Marketing Concept (2)
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
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The Marketing Concept (3)
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
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The Three Key Elements of Marketing
VALUE
DIFFERENTIATION FOCUS
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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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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
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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
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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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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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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: 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
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Management Orientation and Global Marketing (3)
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
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Management Orientation and Global Marketing (4)
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
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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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Factors Supporting or Inhibiting Global Integration (2)
Restraining Forces Management Myopia Ethnocentric Organization Culture National Controls Cost War Market differences