1. Global Marketing Management
Chapter 1 Introduction to Global Marketing
Warren J. Keegan

2. 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

3. 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

4. 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

5. The Marketing Concept (1)
Concept has chanced dramatically
1950’s: Focus on products
1960’s:
Focus on customer orientation
Development of marketing mix: product, price, place, promotion (4P’s)

6. The Marketing Concept (2)
1990’s:
Focus on customer in the context of the broader external environment
Competition, government policy & regulation
Focus on stakeholder value
employees, customers, shareholders, society

7. The Marketing Concept (3)
Today:
Two key tasks of marketing
Focus on customer & his/her environment
Create value for consumers & 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

8. The Three Principles of Marketing
CUSTOMER VALUE
DIFFERENTIATION
FOCUS

9. Key Elements of Marketing – 1. Customer Value
Goal: create customer 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

10. Elements of Marketing – Customer Value
V = B / P
V = Value
B = Perceived Benefits – Perceived Costs
P = Price

11. 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.

12. 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

13. Global Marketing
Marketing discipline is universal but markets & customers are quite different
3 domains of knowledge
Cross-Cultural Knowledge
Country/ Regional Knowledge
Cross-Border Transactions Knowledge
Need for “Global Localization”: Adjustment of global marketing strategies to local requirements

14. Examples of Global Marketing
Product
Design
Canon/photocopier/McDonalds/Toyota/Ford
Brand Name
Marlboro/Coke/Pepsi/Mercedes/Caterpillar
Product Positioning
Colgate toothpaste/Unilever fabric softener
Packaging
Gillette razors
Advertising
Strategy
Coca-cola/British Airways/Benetton
Sales
Promotion
IBM
Distribution
Benetton/United Distillers
Customer
Service
American Express/Hertz

15. 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

16. Management Orientation and Global Marketing (1)
Different Management Orientations in the Global Arena – EPRG Framework
Polycentric
Ethnocentric
Regiocentric
Geocentric

17. Management Orientation & Global Marketing (2)
Ethnocentric Orientation:
Characteristic of domestic & international companies
Opportunities outside the home market are pursued by extending various elements of the marketing mix
Polycentric Orientation
Characteristic of multinational companies
Marketing mix is adapted by autonomous country managers

18. Management Orientation & Global Marketing (3)
Regiocentric or Geocentric Orientation:
Characteristic of global & transnational companies
Marketing opportunities are pursued by both extension & adaptation strategies in global markets

19. Driving Forces Affecting Global Marketing
Technology
Regional Economic Agreements
Market Needs & Wants
Transportation & Communication Improvements
Product Development Costs
Quality
World Economic Trends
Leverage
The Global/ Transnational Corporation

20. Restraining Forces Affecting Global Marketing
Management Myopia & Organizational Culture
National Controls & Barriers

21. 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