‘The process of focusing the resources (people, money, and physical assets) and objectives of an organisation on global market opportunities and threats’ Keegan 1995
Marketing is now a universal discipline
the new concept of marketing appeared 1960 - Marketing Myopia - Levitt now ‘strategic’ concept
The Three Principles of Marketing
Customer value and the value equation
i.e. value greater than competitors
Value equation is:
VALUE = PERCEIVED BENEFITS / PRICE
Competitive or differential advantage
advantage vis-à-vis competition
i.e. the concentration of attention
IBM ‘was’ focused on customer needs and wants for data processing IBM crisis in early 1990s - ‘lost focus’
achieved through concentrating resources
From Domestic to Global/Transnational Marketing
Where is it made? V Where is it marketed?
‘Global Village’ Mashall Macluhan
Market needs - X-Box for leisure
Technology - Third Generation phones (3G)
Cost - low cost production e.g. Gap
Quality - Is now taken for granted.
Communications and Transportation
Driving forces (2)
Leverage (i.e. advantages of operating in numerous markets simultaneously) experience transfers
global strategy. Scanning the globe!
Market differences - diversity
History - Guanxi
Management myopia as a barrier
Organisational culture as a barrier
National controls/Barriers to entry e.g tariffs and Quotas.
Dr. Howard Perlmutter ‘Orientation of Management and Companies’ International money framework and exposure to currency fluctuations post WWII World trading system - WTO (GATT)
Global peace - post September 11th
Arrival of global/transnational companies