Introduction to Global Marketing by Theodore Levitt
Introduction to global marketing
‘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
Focus
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?
Domestic marketing
Export marketing
International marketing
Multinational marketing
Global/transnational marketing
Driving forces
‘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 systems transfers scale economies resource utilisation global strategy. Scanning the globe!
Restraining forces
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.
Underlying forces
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
‘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
Focus
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?
Domestic marketing
Export marketing
International marketing
Multinational marketing
Global/transnational marketing
Driving forces
‘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 systems transfers scale economies resource utilisation global strategy. Scanning the globe!
Restraining forces
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.
Underlying forces
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