Chapter 1 Summary: Warren J. Keegan: Global Marketing Management, 7th Edition
Chapter 1
Introduction to Global Marketing
§ What is Global Marketing?
Global Marketing is the process of focusing the resources and objectives of a company on global marketing opportunities. It means widening the business horizons to encompass the world when scanning for opportunity and threat. This decision to entering new markets depends strongly on the company's resources, managerial mindset and the nature of opportunity and threat, which not every company is able to.
In the 1990s, the concept of the 4p's was outdated and there was a shift of the focus from the customer to the customer in the external environment. Then, the means of strategic Management for the integration of Marketing with other Management functions came up ad shifted the focus towards the strategic partnerships and the new positioning between vendors & customers with the purpose of creating value for the customer.
§ The 3 Principles of Marketing
The essence of Marketing can be summarized in 3 Principles.
1. Marketing for creating higher customer value than the competitors by expanding or improving the product, by reducing the price or by a combination of these.
2. Offering competitive advantage in case of product, price, promotion, distribution, etc.
3. For succeeding on the first two principles, the focus is needed for concentrating the attention.
§ Why Global Marketing?
Because, although the Marketing tools are universal, the marketing practice varies form country to country, as well as the consumers, competitors, distribution channels, etc are different. Therefore it can be necessary to change the marketing plan. The successful marketers need therefore to "think globally and act locally".
As seen in the example of Coca Cola, this ability can be a source of competitive advantage by adapting sales promotion, distribution and customer service efforts to local needs. Other examples are Philip Morris, Harley Davidson, Benetton, all with different Global Marketing
Introduction to Global Marketing
§ What is Global Marketing?
Global Marketing is the process of focusing the resources and objectives of a company on global marketing opportunities. It means widening the business horizons to encompass the world when scanning for opportunity and threat. This decision to entering new markets depends strongly on the company's resources, managerial mindset and the nature of opportunity and threat, which not every company is able to.
In the 1990s, the concept of the 4p's was outdated and there was a shift of the focus from the customer to the customer in the external environment. Then, the means of strategic Management for the integration of Marketing with other Management functions came up ad shifted the focus towards the strategic partnerships and the new positioning between vendors & customers with the purpose of creating value for the customer.
§ The 3 Principles of Marketing
The essence of Marketing can be summarized in 3 Principles.
1. Marketing for creating higher customer value than the competitors by expanding or improving the product, by reducing the price or by a combination of these.
2. Offering competitive advantage in case of product, price, promotion, distribution, etc.
3. For succeeding on the first two principles, the focus is needed for concentrating the attention.
§ Why Global Marketing?
Because, although the Marketing tools are universal, the marketing practice varies form country to country, as well as the consumers, competitors, distribution channels, etc are different. Therefore it can be necessary to change the marketing plan. The successful marketers need therefore to "think globally and act locally".
As seen in the example of Coca Cola, this ability can be a source of competitive advantage by adapting sales promotion, distribution and customer service efforts to local needs. Other examples are Philip Morris, Harley Davidson, Benetton, all with different Global Marketing