Learning Global Marketing Management

Contents

 

Global Marketing

 

 

Check the availability and buy your books from our
Bookshop.

Contact us here

Online Business School   for the delivery and management
of your own existing or the customised versions of our programmes for in-class or global distance learning.

Teaching and Research Skills

 

Teaching Online

 

For further information see also

 

The Bookshop

Today's Videos Playlist

 

Rationale

 

Learning Outcomes

 

Teaching and Learning Resources

 

Case Studies

 

Learner Support

 

Related Workshops

 

Recommended Texts

 

Resources

 

Learning Centres

 

 

Global Marketing Management

 

Rationale

Globalization

Globalization (or globalisation), is an umbrella term for a complex series of economic, social, technological and political changes that have been identified since the 1980s. These changes and processes are seen as increasing interdependence and interaction between people and companies in disparate locations.

Globalization is the source of much debate and controversy about its nature and its merits. Those over its nature question globalization's pervasiveness and extent, and whether it is a process that occurs from 'above' (through government and state actions) or 'below' (through civil society actions). Those over its merits consider whether globalization helps improve quality of life, or destroy it; they also question the role and existence of local culture in a 'globalizing world'. Such debates have been fierce, with its supporters seeing globalization as an economic saviour for the world's poor and as helping improve quality of life; its opponents consider it to be oppressing the developing world, destroying local culture and contributing to global warming.

 

See also

 

External links

 

Given the rapid internationalisation of business activities, understanding of global marketing is becoming a requirement for a marketing or general management career. This course is designed to introduce students to the theory, nature and practice of marketing in a global context. It addresses international marketing challenges facing companies involved in foreign activities (exports, licensing, foreign subsidiaries).

Consumer behavioral aspects are included as a workshop dealing with the concepts and methods from psychology, sociology, and anthropology that help us learn about how consumers' intentions, activities, and motivations are shaped.  We'll look at consumers as individuals and as a part of groups and learning how they think and make choices as end-users of products and services. A particular attention will be paid to discussing how firms use this information. 

Knowledge of the consumer behaviour enables marketing managers to plan effective marketing strategies, to generate satisfactory product designs, to communicate clearly with target markets, and to enhance consumer quality-of-life.

The course focuses on the management response to parameters, which differ from those in domestic marketing. The themes discussed during the course include international marketing environment, international marketing research, selection of international markets, international product policy, selection and management of international distribution partners, price discrimination/harmonisation, marketing communications, strategic planning and organising for international marketing, and entrepreneurial opportunities in international markets.

 

Marketing, as suggested by the American Marketing Association, is "an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders".[1] Another definition, perhaps simpler and more universal, is the process of moving people closer to making a decision to purchase or repurchase a company's products. Simply, if it does not facilitate a "sale" then it is not marketing. [2]Perhaps the simplest Western definition of all was that summarized by Philip Kotler in his earlier books as: "Marketing is human activity directed at satisfying needs and wants through exchange processes". On the other hand, Christian Grönroos, in the context of a move to relationship marketing, summarized a rather different European view in his definition: "Marketing is to establish, maintain and enhance long-term customer relationships at a profit, so that the objectives of the parties involved are met. This is done by mutual exchange and fulfillment of promises". [3]

However, the most widely accepted definition of marketing on a global scale comes from the Chartered Institute of Marketing (CIM) [4] in the UK which is the largest marketing body in the world in terms of membership. The definition claims marketing to be the "management process of anticipating, identifying
and satisfying customer requirements profitably". Thus, operative marketing involves the processes of market research, new product development, product life cycle management, pricing, channel management as well as promotion. However, marketing is more of a process-oriented cross function, not a direct decision maker in these processes. It is one of the company's management tools to ensure that products and services are developed according to market requirements, and that they are profitable.

 

See also

 

External Links
Marketing

 

Today's Videos

TeacherTube

 

Learning Outcomes

Knowledge

After completing the course, student will

1. understand the marketing process and its underlying concepts

2. have sufficient knowledge of the elements of the marketing mix which is incorporated in the firms business strategy

3. understand the external factors that are shaping the marketing manager's activities in the global economy

4. appreciate the role of essential environmental and organisational factors in the development of a marketing plan

5. understand the main models of culture

6. understand regional effects on marketing

7. understand models of comparative consumer behavior

8. understand the organisation of international marketing operations

 

Skills

After completing the course, student will

1. have ability to apply theories of culture and persuasion to the development of international marketing strategies

2. be able to identify the mechanisms for creating and sustaining customer values in international markets

3. be able to develop a critical appreciation of the development and implementation of marketing strategies and programmes in international contexts

4. be able to apply both managerial judgment and analytical approaches to marketing problems

 

Teaching and Learning Resources

 

Click on titles

Teaching Plan

Introduction

Tutorials

 

Readings

 

A market is, as defined in economics, a social arrangement that allows buyers and sellers to discover information and carry out a voluntary   exchange. Along with a right to own property, it is one of the two key institutions that organize trade. The existence of markets is one of the key components of capitalism. Though markets are often viewed as being located in a physical marketplace that allow a face-to-face meeting, markets     may exist in any medium that allows social interaction, such as through mail or over the Internet.

 

Marketing

 

Marketing

 

Market Research

Tutorials

 

Readings

Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include to help create a business plan, launch a new product or service, fine tune existing products and services, and expand into    new markets. Market research can be used to determine which portion of the population will purchase the product/service, based on variables like    age, gender, location and income level. It can be found out what market characteristics a target market has. With market research, companies can   learn more about current and potential customers.

The purpose of market research is to help companies make better business decisions about the development and marketing of new products.

Market research represents the voice of the consumer in a company.

A list of questions that can be answered through market research:

 

A simple example of what market research can do for a business is the following. At the company Chevrolet they brought several disciplines together    in a cross-functional team to develop a concept for a completely new Corvette. This team enabled the marketers to come up with an alternative  concept, one that balanced four attributes: comfort and convenience, quality, styling, and performance. This was considered radical because comfort  and convenience were not traditional Corvette values. However, market research demonstrated that consumers supported the alternative concept.  As a result the new Corvette was a huge success in the market.

There are two types of Market research, Primary and Secondary.[1] In secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product. Primary market research involves testing such as focus groups, surveys, field tests, interviews or observation, conducted or tailored specifically to that product. Generally, market research can provide confirmation that there is a market for an idea, and that a successful launch and growth are possible.

 

Market research for business planning

Perform market research

 

See also

 

References

External links

 

 

Market Reseach

Larger Map

 

 

Kotler on Marketing

Image from http://www.isem.it/convegni/corpo.html

Activities

 

Smoking

 

The dangers of smoking have been known for
many years. A woman with a cigarette in her
hand reads a Health Education Council poster
warning her against the dangers of smoking during
pregnancy, 1974. The slogan reads 'Is it fair to
force your baby to smoke cigarettes?'
Title: Health Warning. Copyright: Getty Images,
available from Education Image Gallery (http://edina.ac.uk/eig)

 

Global Marketing Environment

Tutorials

 

Readings

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macroenvironmental factors used in environmental scanning. It is also referred to as the STEP, STEEP or PESTLE analysis (Political, Economic, Socio-cultural, Technological, Legal, Environmental). Recently it was even further extended to STEEPLED, including ethics and demographics.

It is a part of the external analysis when doing market research and gives a certain overview of the different macroenvironmental factors that the company has to take into consideration. Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. The economic factors are the economic growth, interest rates, exchange rates and inflation rate. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. The technological factors also include ecological and environmental aspects and can determine the barriers to entry, minimum efficient production level and influence outsourcing decisions. It looks at elements such as R&D activity, automation, technology incentives and the rate of technological change.

The PEST factors combined with external microenvironmental factors can be classified as opportunities and threats in a SWOT analysis.

 

Kotler on Marketing

Image from http://www.isem.it/convegni/corpo.html

 

 

Competition

Larger Map

 

Competitor Analysis - Introduction

Competitor analysis

Competitor array

Competitor profiling

Media scanning

New competitors

See also

 

References

Links

 

Cross-Cultural Marketing and Advertising Research

 

 

Marketing Overview

The Marketing Environment

 

The Marketing Environment

 

Globalization and Environment

Activities

 

Hamburger

Image: Can McDonald's be part
of a healthy diet? Source: Holger
Dieterich, stock xchng

 

 

Chocolate

Image: Is part of the problem the mixed messages that authorities send out?
Title: Dark chocolate Shown To Boost Heart-Protecting Antioxidants.
Copyright: Getty Images, available from Education Image Gallery.

 

 

Pub

Image: Pubs have come under scrutiny as being
examples of where businesses with monopoly
power can limit competition and choice for the
consumer. Copyright: Patrick Zangerlé

 

Planning, Analysing and Assessing Global Marketing Opportunities

Tutorials

 

Readings

A Marketing Plan is a written document that details the actions necessary to achieve a specified marketing objective(s). It can be for a product or service, a brand, or a product line. It can cover one year (referred to as an annual marketing plan), or cover up to 5 years.

A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.

Content and presentation

 

See also

 

Links

 

Marketing - Global Business Plan

Foreign Market Entry

 

GE/McKinsey Matrtix

 

Six Sigma

 

is the process in marketing of grouping a market (i.e. customers) into smaller subgroups. This is not something that is arbitrarily imposed on society: it is derived from the recognition that the total market is often made up of submarkets (called 'segments'). These segments are homogeneous within (i.e. people in the segment are similar to each other in their attitudes about certain variables). Because of this intra-group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way.

 

Segmentation Map

The requirements for successful segmentation are:

The variables used for segmentation

Top-down and bottom-up

Price discrimination

See also

 

References

External Links

 

G.E. Multi Factoral Analysis is a technique used in brand marketing and product management to help a company decide what product(s) to add to its product portfolio. It is conceptually similar to B.C.G. analysis, but somewhat more complicated. Like in BCG Analysis, a two-dimensional portfolio matrix is created. However, with the GE model the dimensions are multi factoral. One dimension comprises nine industry attractiveness measures; the other comprises twelve internal business strength measures. Each product, brand, service, or potential product is mapped in this industry attractiveness/business strength space. The GE multi factoral model was first developed by General Electric in the 1970s.

GE McKinsey Matrix

 

 

BCG Growth Share Matrix B.C.G. Analysis is a technique used in brand marketing, product management, and strategic management to help a company decide what products to add to its product portfolio. It involves rating products according to their relative market share and market growth rate. The products are then plotted on a two dimensional map. Products with high market share but low growth are referred to as "cash cows". Products with high market share and high growth are referred to as "stars". Products with low market share in a low growth market are referred to as "dogs" and should usually be managed for value, that is as much money should be harvested from those products with low or no investments. Products with low market share but high market growth are referred to as "question marks" or "problem children". It is crucial for those products or brands to improve their market share before the market growth is consumed by the competition. The technique can also be applied to a portfolio of companies.

 

The conditions a product is sold under will change over time. The Product Life Cycle refers to the succession of stages a product goes through. Product Life Cycle Management is the succession of strategies used by management as a product goes through its life cycle.

The product lifecycle goes though many phases and involves many professional disciplines and requires many skills, tools and processes. Product life cycle management (PLC) is to do with the life of a product in the market with respect to business/commercial costs and sales measures. whereas
Product Life Cycle

 

Product Lifecycle Management (PLM) is more to do with managing descriptions and properties of a product through its development and useful life, mainly from a business/engineering point of view.

 

Buyer Utility Map

W. Chan Kim and Renee Mauborgne of the international business school INSEAD developed this tool to help managers generate new business ideas. The buyer utility map brings out the possible ways in which utility (or service) can be offered to customers in the different stages of the buying experience. According to this map, there are six stages in the buying experience and some common determinants of satisfaction at each stage.
Buyer Utility Map

 

Global Market Strategies

Tutorials

 

International Trade is the exchange of goods and services across international boundaries or territories. In most countries, it represents a significant share of GDP.

While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.

Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact. Increasing international trade is the usually primary meaning of "globalization".

International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.
Nation Master

 

Readings

International Trade Theory

 

Regulation of international trade

Risks in international trade

 

See also

 

Links

Michael Porter

 

Marketing Strategy

 

Market Place

 

A Marketing Strategy serves as the foundation of a marketing plan. A marketing plan contains a list of specific actions required to successfully implement a specific marketing strategy. An example of marketing strategy is as follows: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service."

A strategy is different from a tactic. While it is possible to write a tactical marketing plan without a sound, well-considered strategy, it is not recommended. Without a sound marketing strategy, a marketing plan has no foundation.

Marketing Strategies serve as the fundamental underpinning of marketing plans designed to reach marketing objectives. It is important that these objectives have measurable results.

A good marketing strategy should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to provide a foundation from which a tactical plan is developed. This allows the organization to carry out its mission effectively and efficiently.

Marketing strategies are partially derived from broader corporate strategies corporate missions, and corporate goals. They should flow from the firm's mission statement.

They are also influenced by a range of microenvironmental factors.

Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned.  

See strategy dynamics.

 
Strategic Brand Analysis

 

Bowman Strategy Clock

Types of marketing strategies

Marketing Practice

Conviction Marketing

 

 

Marketing Mix

Tutorials

 

Readings

The Marketing Mix approach to marketing is a model of crafting and implementing marketing strategies. It stresses the "mixing" or blending of various factors in such a way that both organizational and consumer (target markets) objectives are attained. The model was developed by Neil Borden (Borden, N. 1964) who first started using the phrase in 1949. Borden claims the phrase came to him while reading James Culliton's description of the activities of a business executive:

(An executive is) "a mixer of ingredients, who sometimes follows a recipe as he goes along, sometimes adapts a recipe to the ingredients immediately available, and sometimes experiments with or invents ingredients no one else has tried." (Culliton, J. 1948)

When blending the mix elements, marketer(s) must consider their target market. They must understand the wants and needs (see Maslow) of the market (customer) then use these mix elements in constructing (formulating) appropriate marketing strategies and plans that will satisfy these wants. The mix must also meet or exceed the objectives of the organization. As Borden put it,"When building a marketing program to fit the needs of his firm, the marketing manager has to weigh the behavioral forces and then juggle marketing elements in his mix with a keen eye on the resources with which he has to work." (Borden, N. 1964 pg 365). A separate marketing mix is usually crafted for each product offering or for each market segment, depending on the organizational structure of the firm. Borden goes on to suggest a procedure for developing a marketing mix. He claims that you need two sets of information; a list of important elements that go into the mix, and a list of forces that influence these decision
variables.

The most common variables used in constructing a marketing mix are price, promotion, product and distribution (also called placement).


First suggested by Jerome McCarthy (McCarthy, J. 1960), they are sometimes referred to as the four P's. McCarthy said that marketers have essentially these four variables to use when crafting a marketing strategy and writing a marketing plan. In the long term, all four of the mix variables can be changed, but in the short term it is difficult to modify the product or the distribution channel. Therefore in the short term, marketers are limited to working with only half their tool kit. This limitation underscores the importance of long term strategic planning.

The Marketing Mix

Larger Map

 

Activity

 

Michael Schumacher

 

Image: Michael Schumacher of Germany and Ferrari celebrates winning
during the FIA Formula One Italian Grand Prix on September 14, 2003
in Monza, Italy. What is the importance of each element of the marketing
mix as suggested by this photograph? (Not as straight forward as it might
appear!) Title: Schumacher of Germany and Ferrari celebrates. Copyright:
Getty Images, available from Education Image Gallery

 

Global Distribution Policy

Tutorials

 

Readings

 

Kotler on Marketing

Image from http://www.isem.it/convegni/corpo.html

 

Supply Chain Balanced Scorecard Metrics Template

 


Multichannel Marketing Case Study

 

Dell Computers

 

History

Products

 

Support

Business model

Organization

Marketing

Competition

Criticism

References

 

Links

 

TNT

 

Logistics

Background

Business logistics

See also

 

Links

 

 

Global Product Policy

Tutorials

 

Readings

In marketing, a product is anything that can be offered to a market that might satisfy a want or need. However it is much more than just a physical object. It is the complete bundle of benefits or satisfactions that buyers perceive they will obtain if they purchase the product. It is the sum of all physical, psychological, symbolic, and service attributes.

A product is similar to goods. In accounting, goods are physical objects that are available in the marketplace. This differentiates them from a service, which is a non-material product. The term goods is used primarily by those that wish to abstract from the details of a given product. As such it is useful in accounting and economic models. The term product is used primarily by those that wish to examine the details and richness of a specific market offering. As such it is useful to marketers, managers, and quality control specialists.

A service is a non-material or intangible product - such as professional consultancy, waitressing, or an entertainment experience.

See also

 

 

In business and engineering, new product development is the complete process of bringing a new product to market. There are two parallel aspects to this process : one involves product engineering ; the other marketing analysis. Marketers see new product development as the first stage in product life cycle management, engineers as part of Product Lifecycle Management.

Types of new products

The process

Protecting new products

Fuzzy Front End

Product Modification [[1]]

Corporate Response [[2]]

 

Marketing Response [[3]]

Sticking to the Knitting

Innovative Imitation

See also

 

References

Links

 

Product Portfolio Analysis

Larger Map

 

 

Kotler on Marketing

 

Image from http://www.isem.it/convegni/corpo.html

Activities

 

Boston Matrix

 

Case Study

 

The Turover Straus Group

Ideal firm size

 

Global Communications Policy

Tutorials

 

Advertising

Billboards and street advertising
in Shinjuku, Tokyo, Japan, (2005)

Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

History

Media

Impact

Public service advertising

Social impact

 

Future

See also

References

Bibliography

External links

 

Readings

Promotion is one of the four aspects of marketing. The other three parts of the marketing mix are product management, pricing, and distribution. Promotion involves disseminating information about a product, product line, brand, or company.

Promotion comprises four subcategories:

 

The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.

An example of a fully integrated, long-term, large-scale promotion is Pepsi Stuff.

Models and Simulations

Advertising Elasticity Information Pack

 

 

Major decisions involved in an Advertising Programme (click on image)

 

Kotler on Marketing

Image from http://www.isem.it/convegni/corpo.html

 

Corporate identity and branding

 

Marketing Communication Planning

 

Marketing Communication

 

Global Pricing Policy

Tutorials

 

Readings

Pricing is one of the four p's of the marketing mix. The other three aspects are product management, promotion, and place. It is also a key variable in microeconomic price allocation theory.

Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many
others. Automated systems require more setup and maintenance but may
prevent pricing errors.
Pricing Strategies

 

Pricing involves asking questions like

 

Aspects of production and pricing theory

 

Production theory basics

  • production efficiency
  • factors of production
  • total, average, and marginal product curves
  • marginal productivity
  • isoquants
  • the marginal rate of technical substitution

 

Economic rent

  • classical factor rents
  • Paretian factor rents

 

 

Production possibility frontier

  • what products are possible given your resources
  • the trade-off between producing one product rather than another
  • the marginal rate of transformation

 

Production function

  • inputs
  • diminishing returns to inputs
  • the stages of production
  • shifts in a production function

 

Cost theory

  • the different types of costs
  • the isocost line

 

Cost-of-production theory of value

Long-run cost and production functions

  • long-run average cost curves
  • long-run production function and efficiency
  • returns to scale and isoclines
  • minimum efficient scale
  • plant capacity

 

Economies of density

Economies of scale

the efficiency consequences of increasing or decreasing the level of production

 

Economies of scope

the efficiency consequences of increasing or decreasing the number of different types of products produced, promoted, and distributed

 

Pricing

  • various aspects of the pricing decision

 

Transfer pricing

  • selling within a multi-divisional company

 

Joint product pricing

  • price setting when two products are linked

 

Price discrimination

  • different prices to different buyers
  • types of price discrimination
  • yield management

 

Price skimming

  • price discrimination over time

 

Two part tariffs

charging a price comprised of two parts, usually an initial fee and an ongoing fee

 

Price points

  • the effects of a non-linear demand curve on pricing

 

Cost-plus pricing

 

Rate of return pricing

  • calculate price based on the required rate of return on investment

 

Profit maximization

  • determining the optimum price and quantity
  • the totals approach
  • the marginal approach

Pricing Theory Chart

 

Demand Curves

Price Theory: An Intermediate Text by David D. Friedman

 

 

 

Models and Simulations

 

 

Kotler on Marketing

Image from http://www.isem.it/convegni/corpo.html

 

Pricing Strateries

Larger Map

 

 

Pricing Strategies Matrix

 

 

Ethics and Global Marketing

Tutorials

 

Readings

Ethics of sales and marketing

Marketing which goes beyond the mere provision of information about (and access to) a product may seek to manipulate our values and behaviour.

To some extent society regards this as acceptable, but where is the ethical line to be drawn?

1. Pricing: price fixing, price discrimination, price skimming.

2. Anti-competitive practices: these include but go beyond pricing tactics to cover issues such as manipulation of loyalty and supply chains.

See: anti-competitive practices, antitrust law.

3. Specific marketing strategies: greenwash, bait and switch, shill, viral marketing, spam (electronic), pyramid scheme, planned obsolescence.

4. Content of advertisements: attack ads, subliminal messages, sex in advertising.

5. Children and marketing: marketing in schools.

6. Black markets, grey markets.

 

See also: disinformation, advertising techniques.

Cases: Benetton

Product advertising

 

 

Tutorials Assignments Recommended Texts Readings Learner Support Discussion Forums Related Workshops Case Studies Resources Staff Development

Recommended Texts

International Marketing

International Marketing, 12/e

Phillip Cateora, University of Colorado -- Boulder
John Graham, University of California -- Irvine

ISBN: 0072833718
Copyright year: 2005

Check the availability and buy your books from our Bookshop.

 

 

 

 

 
Basic Marketing : A Global Managerial Approach Basic Marketing : A Global Managerial Approach, 14/e
William D. Perreault, E. Jerome McCarthy


Basic Marketing is the market leading principles text domestically. Basic Marketing offers a very thorough integration of the latest marketing themes, topics, and examples woven throughout the body of the text. This integration of themes, topics, and examples is carefully blended with the text's traditional strengths of clear, accessible communication, a focus on management decision-making in marketing, and completely integrated coverage of special topics such as technology, ethics, international perspectives, relationship marketing, and services. This is the first book to develop and present the 4 P's framework when describing the components of the marketing mix (Product, Price, Place, Promotion). Where most principles of marketing texts have separate supplement authors, Bill Perreault is the creator of every item in the package. This unique involvement ensures quality, accuracy, and reliability.

Perreault Demonstration Course

Check the availability and buy your books from our Bookshop.

 

 

 

Resources

 

Global-Marketing

 

 

 

 

 

Regional Overviews