This chapter introduces global marketing. It cites the history of global marketing, including the issue of standardization-adaptation. The chapter then differentiates domestic marketing, international marketing, and global marketing. It notes the changes in the global market environment. The chapter highlights Asia as a significant site for the emergence of new economic powers and the global service economy. It discusses the changes in consumer demographics and the nature of competition. The advent of new technologies like the internet and mobile devices opened up business and marketing opportunities and allowed for the development of innovative products, services, and values for consumers. The chapter also includes the growing transparency of corporate practices.
Chapter
Changes and New Challenges
Chapter
Creating, Developing, and Maintaining Competitive Advantage
This chapter explores creating, developing, and maintaining competitive advantage. It differentiates national competitiveness from global competition. The chapter lists the factions affecting the growth of global competition in line with the changing nature of the microeconomic business environment and increasing sophistication of business operations. It narrates the strategy and anatomy of competitive advantage while referencing substance, expression, locale, effect, cause, and time span of competitive advantage. Additionally, the chapter looks into how to create competitive advantage through generic strategies such as cost leadership and differentiation. It includes the resource-based theory of competitive advantage. Relationships, knowledge, and information technology are examined as new sources of competitive advantage.
Chapter
The Global Marketing Environment
This chapter focuses on the global marketing environment. It looks into the significance of accounting for the global environment. Additionally, the chapter lists factors relevant to this discussion within the global environment such as an intermediate environment and the macro environment. It notes the role of the government in the economy which should be in line with political stability and international relations. The chapter then explores the legal environment wherein local domestic law and international law are tied with global marketing. It also looks at China's rise within the World Trade Organization. The chapter also narrates approaches to the study of culture at the same time as discussing the technological, competitive, and currency environment. It highlights the role of pressure groups.
Book
Kiefer Lee and Steve Carter
Global Marketing Management is composed of three parts. Part One is about understanding the global marketing environment. It includes discussions on changes and new challenges; the global marketing environment; understanding globalization; understanding global cultures and buyer behaviours; understanding global social and ethical issues; and opportunity analysis. The second part covers the development of global marketing strategies. This includes looking at market entry strategies and competitive advantage. This second part also looks at product and brand management, global services marketing, global communications, global supply chains and distribution, marketing relationships, and global pricing. The last part is about implementing and coordinating global market operations.
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Global Pricing and Terms of Access
This chapter focuses on global pricing and terms of access. It lists the factors impacting global pricing decisions. The chapter then discusses pricing strategies such as competitive pricing, geographical pricing, promotional pricing, and product mix pricing. It highlights the concept behind price changes. Additionally, the chapter notes special issues related to global price setting such as price escalation, currency fluctuations, inflation, and leasing. It explores the export order process as well. The chapter considers tariffs and non-tariff barriers as terms of access. It cites incoterms and looks at special trade terms in exporting. Moreover, export payments and export financing are examples of export documentation.
Chapter
Global Services Marketing
This chapter looks into global services marketing. It highlights the importance of services in the global economy. The chapter lists the drivers for growth in cross-border services such as deregulation and liberalization of trade in services. It defines cross-border services and places them in the context of the degree of intangibility, consumer-producer interaction, and multi-variant classification systems. Moreover, the chapter argues that intangibility, heterogeneity, inseparability, and perishability are the challenges of marketing services internationally. The chapter discusses strategic considerations for marketing services globally, such as knowledge. This is the fundamental source for competitive advantage and managing the process of service delivery. The chapter also looks at the role of technology in aiding service.
Chapter
Management of Global Communications
This chapter explores the management of global communications. It notes the changes and issues in marketing communication before looking at the debate on standardization and localization. The chapter explains the drive towards integration. It looks into advertising with reference to the case study of Bertolli spread. This is used as an example for global marketing communications in action. Moreover, the chapter discusses the planning of public relations, direct-response marketing, sponsorship, exhibitions, and trade fairs. It also examines planning and tools for online communications, such as advertising, sales promotion, publicity, and personal selling. Online communication is becoming more popular and can be evidenced by the fact that companies now spend aggressively to achieve an online presence.
Chapter
Managing Global Marketing Relationships
This chapter looks into managing global marketing relationships. It highlights the significance of relationship marketing as it brought back relationships into mainstream marketing theory and practice. The chapter outlines the key characteristics of marketing relationships and their managerial implications. It also classifies relationships and stakeholders, which are mostly international. Moreover, the chapter looks at customer relationships, supplier relationships, lateral partnerships, and internal partnerships. Moreover, the chapter notes the strategic challenges in managing relationships such as e-commerce relationships, management complexity, and measuring relationship success. Managing global relationships is far from simple due to issues of trust, commitment, communication, power imbalances, cultural differences, and ethics.
Chapter
Managing Supply Chain and Distribution
This chapter explains managing the supply chain and distribution. It discusses a new approach to managing the supply chains and distribution in line with effective management of risk, trade-offs, and strategic relationships. Moreover, the chapter notes country and industry characteristics as factors affecting global supply chain decisions in line with international supply chain strategy. It looks at types of buyer–supplier relationships and their scope of collaboration. The chapter then explores developing market-responsive supply chain strategies such as information sharing and global sourcing. The management of an effective supply chain requires the coordination of a wide range of activities such as inbound logistics, operations, outbound logistics, marketing and sales, and customer service.
Chapter
Market Entry Strategies
This chapter looks into market entry strategies. It introduces the international marketing environment alongside its impact on market entry strategies. The chapter narrates the process of internationalization which used the Uppsala approach, industrial network approach, and bargaining power approach. Additionally, the chapter examines other theories of internationalization such as the transactional cost analysis theory. The chapter then lists multi-level marketing and the subscription business model as examples of international business models, while licensing and franchising are referenced as market entry modes. The chapter looks into the electronic marketplace as well. Moreover, the chapter acknowledges the difficulty of matching marketing strategies and modes of entry while referring to global services.
Chapter
Opportunity Analysis and Selection of Markets
This chapter discusses opportunity analysis and the selection of markets. It looks at the global market selection and marketing information system (MKIS). The chapter discusses the process of international marketing research which plays a vital role in the establishment and population of the MKIS. It includes the global market segmentation which is based on geographic, transnational, and hierarchical country/consumer segmentation. Moreover, the chapter explores how to select markets for targeting to evaluate the attractiveness of each segment and select specific segments. It highlights that analysing global market opportunities and subsequent market selection are key global strategic decisions.
Chapter
Organizing and Controlling Global Marketing Operations
This chapter discusses organizing and controlling global marketing operations. It looks into ethnocentrism, polycentrism, regiocentrism, and geocentrism and relates these to the philosophy of management. This philosophy has considerably influenced organizational structures. The chapter explores the planning for global marketing and global control mechanisms as well. It explains the factors of organizing for global marketing which will depend on the degree of internationalization, type of product or service, and resources of the organization. Planning, control and organizational structure are essential for managing and controlling global operations. Moreover, the chapter looks into the issues related to global organizational structures, such as different time zones and international commitment.
Chapter
Product and Brand Management
This chapter focuses on product and brand management. It lists the components of the international product alongside its management. Additionally, standardization versus adaptation is a standard argument in international marketing. The chapter discusses the product strategy by referencing the product trade cycle, the product life cycle, matrices to portfolio management, and the Ansoff matrix. It looks into local and global brands and international brand architecture as a reference for strategic international branding. The chapter also looks into the development process of a new product. Moreover, it talks about the classification of consumer products. These are: convenience, shopping, speciality, and unsought products.
Chapter
Sales Force Management and Negotiation
This chapter explores sales force management and negotiation. It cites the changing nature of sales management in line with behavioural, technological, and managerial forces. Additionally, the chapter discusses international sales management decisions and relates them to their cultural impact. It expounds on the nature of sales negotiation by referencing customer-oriented personal selling, transactional sales and its respective ethical considerations. The chapter looks into the relationship approach to sales negotiation. It also highlights the role of training and the impact of culture in sales negotiations. Moreover, the effectiveness of international sales management decisions has a direct impact on the success and profitability of an organization operating in foreign markets.
Chapter
Understanding Global Cultures and Buyer Behaviour
This chapter explores global cultures in an effort to look into buyer behaviour. It defines culture, referencing language, religion, values, education, social organization, aesthetics, technology, and politics. The chapter also looks into consumer behaviour. It lists functional, social, and experiential as the types of needs which relate to consumer behaviour. Also, the chapter discusses how to conduct various cross-cultural analyses such as Schwartz' value inventory. It explores commodity trading and government buying behaviour. The chapter then looks at business-to-business (B2B) buyer behaviour models and looks at what these models say about buyer behaviour impact of culture. It notes the correlation between culture and ethics.
Chapter
Understanding Globalization
This chapter looks specifically at globalization. It explores the concept of globalization in terms of economic reality, political reality, technological reality, and cultural reality. Globalization is a complex phenomenon that affects many aspects of life, thus there is no accepted consensus as to what exactly the term represents. The chapter then cites the opportunities and threats of globalization such as financial integration and macroeconomic volatility. It looks at global migration in line with economic growth and humanitarian crises. Additionally, the chapter looks into the environmental sustainability of globalization by referencing climate change, food security, and energy security.
Chapter
Understanding Social, Ethical, and Ecological Aspects of Market Planning
This chapter explains the social, ethical, and ecological aspects of market planning. It looks into the history of corporate social responsibility (CSR), corporate social practice (CSP), and sustainability. Then, the chapter explores the advantages and disadvantages of doing the allegedly right thing which references increased sales, brand position, and decreased operational costs. It discusses ecologically sustainable marketing. The chapter also explores the ethical responsibility of businesses in line with ethics training, human rights, labour practices, competitiveness, and communication. It notes the usage of Corruption Perceptions Index to measure levels of corruption in a country. Additionally, the chapter cites the legislation, credit restrictions, and blacklisting in global markets.
