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Pp 01 introduction
 

Pp 01 introduction

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    Pp 01 introduction Pp 01 introduction Presentation Transcript

    • Global Marketing ManagementChapter 1 Introduction toGlobal MarketingWarren 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
    • 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, tools, theories, practices, procedures, & experiences„ Although marketing is a universal discipline, marketing practice varies from country to country Keegan: Global Marketing Management Chapter 1/ 4
    • The Marketing Concept (1)„ Concept has chanced dramatically„ 1950’s: Focus on products„ 1960’s: ƒ Focus on customer orientation ƒ Development of marketing mix: product, price, place, promotion (4P’s) Keegan: Global Marketing Management Chapter 1/ 5
    • The Marketing Concept (2)„ 1990’s: ƒ Focus on customer in the context of the broader external environment ‚ Competition, government policy & regulation ƒ Focus on stakeholder value ‚ employees, customers, shareholders, society Keegan: Global Marketing Management Chapter 1/ 6
    • The Marketing Concept (3)„ Today: ƒ Two key tasks of marketing ‚ Focus on customer & his/her environment ‚ Create value for consumers & stakeholder ƒ Shift towards ‚ Focus on managing strategic partnerships ‚ Positioning of firm in value chain to optimize value creation ƒ Profit as a measure of success, not an end in itself Keegan: Global Marketing Management Chapter 1/ 7
    • The Three Principles of Marketing CUSTOMER VALUE DIFFERENTIATION FOCUS Keegan: Global Marketing Management Chapter 1/ 8
    • Key Elements of Marketing – 1. Customer Value„ Goal: create customer value that is greater than the value created by competitors„ Strategy: ƒ Expand or improve product and/ or service benefits ƒ Reduce the price ƒ Combine these two elements Keegan: Global Marketing Management Chapter 1/ 9
    • Elements of Marketing – Customer Value V=B/PV = ValueB = Perceived Benefits – Perceived CostsP = 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 ƒ Cross-Cultural Knowledge ƒ Country/ Regional Knowledge ƒ 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 MarketingProduct Canon/photocopier/McDonalds/Toyota/FordDesignBrand Name Marlboro/Coke/Pepsi/Mercedes/CaterpillarProduct Colgate toothpaste/Unilever fabric softenerPositioningPackaging Gillette razorsAdvertising Coca-cola/British Airways/BenettonStrategySales IBMPromotionDistribution Benetton/United DistillersCustomer American Express/HertzService 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: ƒ Characteristic of domestic & international companies ƒ Opportunities outside the home market are pursued by extending various elements of the marketing mix„ Polycentric Orientation ƒ Characteristic of multinational companies ƒ Marketing mix is adapted by autonomous country managers Keegan: Global Marketing Management Chapter 1/ 17
    • Management Orientation & Global Marketing (3)„ Regiocentric or Geocentric Orientation: ƒ Characteristic of global & transnational companies ƒ Marketing opportunities are pursued by both extension & adaptation strategies in global markets Keegan: Global Marketing Management Chapter 1/ 18
    • Driving Forces Affecting Global Marketing ƒ Technology ƒ Regional Economic Agreements ƒ Market Needs & Wants ƒ Transportation & Communication Improvements ƒ Product Development Costs ƒ Quality ƒ World Economic Trends ƒ Leverage ƒ The Global/ Transnational Corporation Keegan: Global Marketing Management Chapter 1/ 19
    • Restraining Forces Affecting GlobalMarketing ƒ Management Myopia & Organizational Culture ƒ National Controls & Barriers Keegan: Global Marketing Management Chapter 1/ 20
    • Summary„ Global marketing is the process of focusing resources on global marketing opportunities„ Goal, to create customer value & competitive advantage by maintaining focus„ Three classifications of management orientation: ethnocentric, polycentric, regiocentric, geocentric„ Global marketing importance is shaped by a variety of driving & restraining forces Keegan: Global Marketing Management Chapter 1/ 21