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THE GLOBAL MARKETING
STRATEGY
A broad Conceptualization of GMS and its effect on firm performance
Journal Review, Presente...
2
Problem Identification
1. What constitutes a global marketing
strategy?
2. Does GMS affect a firm’s global market
perfor...
3
Background
Lack of empirical support in proving the
effect of Global Marketing Strategy to
Global Marketing Performance
4
Purpose of The Research
1. To develop abroad conceptualization of
GMS
2. To attempt in substantiating the
fundamental re...
5
Outline
Five major section:
1. A Brief review of the Global Marketing literature
2. A New conceptualization of the GMS
3...
6
 Standardization
 Configuration – Coordination
 Integration
1. Major Perspective of GMS
7
Perspective Basic Logic Key variables Antecedents Effects
Standardizati
on
perspective
 Scale
economics
 Low-cost
 Si...
8
Perspective Basic Logic Key variables Antecedents Effects
Configuration-
coordination
perspective
 Comparative
advantag...
9
Perspective Basic Logic Key variables Antecedents Effects
Integration
perspective
 Cross-
subsidization
 Competitive
d...
10
THE GMSProduct
Standardization
Promotion
Standardization
Standardized
Price
Standardized
Channel
Structure
Concentratio...
11
Product Standardization:
The degree to which a product is standardized across country
market
Promotion Standardization:...
12
Standardized price:
The degree to which the firm uses the same price across country
markets.
Concentration of marketing...
13
Global market participation:
The extent to which a firm pursues marketing operations in all
major markets in the world....
14
 Theoretical Foundations
 A Structural Model of the GMS
 Model Components and Hypotheses
3. A Model of the GMS and F...
15
Two Theoretical foundations are:
1. The industrial organizational theory focuses on
the external market to identify dri...
16
International
experience
Global
Orientation
External
Globalizing
Conditions
The GMS
Global
Strategic
Performance
Global...
19
 Sampling Frame : mail surveys to
business units within 23 global industries
 Instrument Development
 Measurement of...
28
 The second-order CFA
 Test of the Structural Path Model
5. Analysis & Findings
31
5. Analysis & Findings
International
experience
Global
Orientation
External
Globalizing
Conditions
The GMS
Global
Strat...
32
 The GMS
 The Effect of the GMS on Performance
 Drivers of the GMS
 The Effect of International Experience on
Perfo...
33
The GMS
As a broad conceptualization of global marketing strategy that
incorporates all three perspectives
 The GMS sc...
34
The Effect of the GMS on Performance
 Has a positive and significant effect on a firm’s
global market performance
 In...
35
Drivers of the GMS
 External globalizing conditions
 global orientation
 international experience.
These findings ar...
36
The Effect of International Experience on
Performance
Found that a firm’s global strategic performance is
influenced po...
37
Managerial Implications:
Standardized product will provide the firm with
substantial efficiency in the global operation...
38
Further Research
1. To Direct more resources to data collection to increase the
sample size and consider other types of...
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Global marketing strategy

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Transcript of "Global marketing strategy"

  1. 1. THE GLOBAL MARKETING STRATEGY A broad Conceptualization of GMS and its effect on firm performance Journal Review, Presented by: Danny Darmawan Kosasih Retno Nuramini Hartawati
  2. 2. 2 Problem Identification 1. What constitutes a global marketing strategy? 2. Does GMS affect a firm’s global market performance? GMS Affects GMP
  3. 3. 3 Background Lack of empirical support in proving the effect of Global Marketing Strategy to Global Marketing Performance
  4. 4. 4 Purpose of The Research 1. To develop abroad conceptualization of GMS 2. To attempt in substantiating the fundamental relationship between GMS and a firm performance
  5. 5. 5 Outline Five major section: 1. A Brief review of the Global Marketing literature 2. A New conceptualization of the GMS 3. A Conceptual model that links the GMS to its antecedents and effect and advance the related research hypotheses 4. The research design and methodology of the study and the result of the empirical analysis. 5. Major findings, theoretical and managerial implications.
  6. 6. 6  Standardization  Configuration – Coordination  Integration 1. Major Perspective of GMS
  7. 7. 7 Perspective Basic Logic Key variables Antecedents Effects Standardizati on perspective  Scale economics  Low-cost  Simplification Product, promotion, channel structure, price standardization  Convergence of culture  Similarity of demand  Low trade barriers  Technological advances  Orientation of firm  Efficiency  Consistenc y  Transfer of ideas 1. Major Perspective of GMS
  8. 8. 8 Perspective Basic Logic Key variables Antecedents Effects Configuration- coordination perspective  Comparative advantage  Interdependency  Specialization  Concentration of value-chain activities  Coordination of value-chain activities  Low trade barriers  Technological advance  Orientation of firm  International experience  Efficiency  Synergies 1. Major Perspective of GMS
  9. 9. 9 Perspective Basic Logic Key variables Antecedents Effects Integration perspective  Cross- subsidization  Competitive dislocation  Rationalization  Integration of competitive moves  Global market participation  Low trade barriers  Orientation of firm  International experience  Integrated markets  Effectiveness in competition  Competitive leverage 1. Major Perspective of GMS
  10. 10. 10 THE GMSProduct Standardization Promotion Standardization Standardized Price Standardized Channel Structure Concentration Of Marketing Activities Coordination Of Marketing Activities Global Market Participation Integration of Competitive Moves 2. A Broad Conceptualization of GMS
  11. 11. 11 Product Standardization: The degree to which a product is standardized across country market Promotion Standardization: The degree to which the same promotional mix is executed across country markets. Standardized channel structure: The degree to which the firm uses the same channel structure across country markets. 2. A Broad Conceptualization of GMS
  12. 12. 12 Standardized price: The degree to which the firm uses the same price across country markets. Concentration of marketing activities: The extent to which a firm’s marketing activities, including development of promotional campaign, pricing decision, distribution activities and after-sale services, are deliberately performed in a single or a few country market Standardized channel structure: The extent to which a firm’s marketing activities in different country locations, including development of promotional campaign, pricing decision, distribution activities and after-sale services, are planned and executed interdependently on a global scale 2. A Broad Conceptualization of GMS
  13. 13. 13 Global market participation: The extent to which a firm pursues marketing operations in all major markets in the world. Integration of competitive moves: The extent to which a firm’s competitive marketing moves in different markets in the world. 2. A Broad Conceptualization of GMS
  14. 14. 14  Theoretical Foundations  A Structural Model of the GMS  Model Components and Hypotheses 3. A Model of the GMS and Firm Performance
  15. 15. 15 Two Theoretical foundations are: 1. The industrial organizational theory focuses on the external market to identify drivers of a firm’s strategy and contends that the firm’s performance is determined by its strategy. 2. The resource based view theory uses the firm’s internal organizational resources to explain its strategy and performance 3. A Model of the GMS and Firm Performance
  16. 16. 16 International experience Global Orientation External Globalizing Conditions The GMS Global Strategic Performance Global Financial Performance A Structural Model of the GMS 3. A Model of the GMS and Firm Performance
  17. 17. 19  Sampling Frame : mail surveys to business units within 23 global industries  Instrument Development  Measurement of the Constructs  Data collection  Assessment of Non-response Bias 4. Research Methodology
  18. 18. 28  The second-order CFA  Test of the Structural Path Model 5. Analysis & Findings
  19. 19. 31 5. Analysis & Findings International experience Global Orientation External Globalizing Conditions The GMS Global Strategic Performance Global Financial Performance Fitted Structural Model of the GMS * .05 * .01 * .01 * .01 * .01 * .01 * .05
  20. 20. 32  The GMS  The Effect of the GMS on Performance  Drivers of the GMS  The Effect of International Experience on Performance  Managerial Implications  Further Research 6. Conclusion
  21. 21. 33 The GMS As a broad conceptualization of global marketing strategy that incorporates all three perspectives  The GMS scale is shown to be related to a firm’s global market performance, the external globalizing conditions, and the firm’s global orientation and international experience.  The GMS serves as a foundation for integrating previous research finding and the differences.  The GMS reflects an entire set of a firm’s marketing action, all within the control of management. 6. Conclusion
  22. 22. 34 The Effect of the GMS on Performance  Has a positive and significant effect on a firm’s global market performance  Influence firm’s strategic performance positively in global market, is found to affect a firm’s global financial performance, both directly and indirectly through its effect on the firm’s global strategic performance. 6. Conclusion
  23. 23. 35 Drivers of the GMS  External globalizing conditions  global orientation  international experience. These findings are consistent with both the IO framework and the RBV literature. 6. Conclusion
  24. 24. 36 The Effect of International Experience on Performance Found that a firm’s global strategic performance is influenced positively by the international experience. This is consistent with the previous finding that international experience is a valuable organizational resource and an important determinant of success in international Market. In terms of managerial practice, the findings indicate that it pays to promote constant accumulation organization wide international experience and also the firm will be able to attain a stronger global strategic position, which eventually will lead to improved global financial performance. 6. Conclusion
  25. 25. 37 Managerial Implications: Standardized product will provide the firm with substantial efficiency in the global operations and a standardized strategy will render scale economics, synergies and efficiencies, and also will simplify worldwide planning and afford the firm’s brands a consistent image with global customers. 6. Conclusion
  26. 26. 38 Further Research 1. To Direct more resources to data collection to increase the sample size and consider other types of firms or industries. 2. Consider adopting a longitudinal design to further test the causal order of the factors. 3. To test the applicability of the GMS in other countries. 4. To explore the relevance of other external and internal factors for a firm’s global marketing strategy and performance. 6. Conclusion
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