copy of ch 1 - global marketing in the firm + intro modified

8/18/2019 Copy of Ch 1 - Global Marketing in the firm + Intro modified

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Svend Hollensen

GLOBAL MARKETING4th Edition

1 Global maretin! in the "irm


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Hollensen# Global Maretin! 4e# $ %earson Ed&'ation ())* 1+(

ISBN ,-*+)+(-.+-)/-*+/


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Hollensen# Global Maretin! 4e# $ %earson Ed&'ation ())* 1+.


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Hollensen# Global Maretin! 4e# $ %earson Ed&'ation ())* 1+4


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Globaliation is "or debate 23


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Learnin! obe'tives

+5hara'terie and 'om6are the

mana!ement st7le in SMEs and LSEs

+Identi"7 drivers "or !lobal inte!ration andmaret res6onsiveness

+E86lain the role o" !lobal maretin! in the

"irm "rom a holisti' 6ers6e'tive


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Learnin! obe'tives 9(:

+;es'ribe and &nderstand the 'on'e6t o"

the val&e 'hain

+Identi"7 and dis'&ss di""erent


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Internationaliation

=irms m&st de'ide


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=i!&re 131

Nine strate!i'


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>hat is this?

The "irm@s 'ommitment to 'oordinate its

maretin! a'tivities a'ross national

bo&ndaries in order to "ind and satis"7

!lobal '&stomer needs better than the'om6etition is no


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Hall@s Lo


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Hi!h+ and Lo


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$"ample o% Globali&ed 'rod(ction

)% the *+,-,,, sticker price o% a General otors

A(tomobile !eans/*0-,,, goes to South Korea- where the car was

assembled*1-,,, goes to Japan %or sophisticated high2tech

parts 3engines- transa"les- electronics4*5,, goes to Taiwan, Singapore- and Japan %or

small parts

*6,, goes to Great Britain %or advertising and

marketing services*7-,,, goes to Ireland %or data processing*8-0,, goes to GM and its e"ternal pro%essional

%irms in the nited States

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserve.


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%arent+5o&ntr7 Nationals 9%5N@s

Host+5o&ntr7 Nationals 9H5N@s:

Third+5o&ntr7 Nationals 9T5N@s:


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A66roa'hes to Sta""in!

=a'tors a""e'tin! a66roa'hes to sta""in!

General sta""in! 6oli'7 on e7 6ositions at

head&arters and s&bsidiaries

5onstraints 6la'ed b7 host !overnment

Sta"" availabilit7

Ethno'entri'

%ol7'entri'

Geo'entri'

Re!io'entri'


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Ethno'entri'

Strate!i' de'isions are made at

head&artersC

Limited s&bsidiar7 a&tonom7C

Ke7 6ositions in domesti' and "orei!n

o6erations are held b7 head&arters@

6ersonnelC%5Ns mana!e s&bsidiaries3


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Ethnocentric Approach

;isadvanta!esLimits the 6romotion o66ort&nitieso" H5Ns# leadin! to red&'ed

6rod&'tivit7 and in'reased t&rnover

amon! the H5Ns

Lon!er time "or %5Ns to ada6t to

host 'o&ntries# leadin! to errorsand 6oor de'isions bein! made

Hi!h 'ost

5onsiderable in'ome !a6# hi!h

a&thorit7# and in'reased standard

o" livin! ma7 relate to la' o"sensitivit7

Advanta!es

To ens&re ne<s&bsidiar7 'om6lies


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Geo'entri'

A !lobal a66roa'h +


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Geocentric Approach

Advantages/ Abilit7 o" the "irm to

develo6 an internationale8e'&tive team

Over'omes the"ederation dra


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%ol7'entri'Ea'h s&bsidiar7 is a distin't national

entit7


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Polycentric Approach

9isadvantages/

;i""i'&lt to brid!e the !a6 bet


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Re!io'entri'

Re"le'ts a re!ional strate!7 and str&'t&reC

Re!ional a&tonom7 in de'ision main!C

Sta"" move


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Regiocentric Approach

Advanta!es Allo< intera'tion bet


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>hat is this?

>hat term re"ers to the develo6ment

and sellin! o" 6rod&'ts or servi'es

intended "or the !lobal maret# b&tada6ted to s&it lo'al '&lt&re and

behavio&r 9thin !loball7# a't lo'all7:?

Glocali&ation


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=i!&re 13( Kno


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=i!&re 13.

5onver!en'e o" orientation


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$%& !omparison o" the global marketing

and management st'le o" SM(s and

)S(s # Re'o&rses

=ormation o"

strate!7

Or!aniation

Ris Tain!

=le8ibilit7

E'onomies o"

S'ale and s'o6ese o"

in"ormation

so&r'es

1+.)


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=i!&re 134

Intended and emer!ent strate!7

Realied

strate!7

I n t e n d e d s t r a t e ! 7

; e l i b e r a t e s t r a t e ! 7

nrealied

strate!7

E m e r !

e n t s t r

a t e ! 7

So&r'e Mintber!# 1,*-# 63 143 5o67ri!ht $ 1,*- b7 the Re!ents o" the niversit7 o" 5ali"ornia3 Re6rinted "rom the California

Management Review # Fol3 .)# No3 13 B7 6ermission o" the Re!ents3


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=i!&re 130 In'remental 'han!e

and strate!i' dri"t

E3!3


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=i!&re 13/ Entre6rene&rial

de'ision+main! model


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>hat is this?

>hen a''&m&lated vol&me in

6rod&'tion res&lts in lo


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=indin! e'onomies o" s'ale

Red&'in! o6eratin! 'osts 6er &nit and s6readin!

"i8ed 'osts over lar!er vol&me d&e to

e86erien'e '&rve e""e'ts@

%oolin! !lobal 6&r'hasin! !ives the o66ort&nit7

to 'on'entrate !lobal 6&r'hasin! 6o


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Hollensen# Global Maretin! 4e# $ %earson Ed&'ation ())* 1+./

>hat is this?

>hen reso&r'es 'an be re&sed

"rom one b&siness'o&ntr7 in

additional b&siness'o&ntries#

o''&r3

$conomies o% scope


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%rod&'tion orientation

vs maretin! orientation

:1 $"plain the %orces %or global


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:1+ $"plain the %orces %or globalintegration and market

responsiveness;

Globalinte!ration

Maretres6onsiveness


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=i!&re 13- Global inte!ration

maret res6onsiveness !rid


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=or'es "or !lobal

'oordination inte!ration

Removal o" trade

barriers

Global '&stomers

Relationshi6

mana!ement

Standardied


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:(estion/ #ow globali&ed is Unilever;;Unilever =orldwide 2 A (lti2local (ltinational

nilever is dedi'ated to meetin! the ever7da7 needs o" 6eo6le

ever7


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O&r dee6 roots in lo'al '&lt&res and marets aro&nd the # to


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To s&''eed also re&ires#


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*h' is nilever Interested in (ngaging

with +alue !hain artners?

Applies Up and 9own the Val(e Chain e.g. 9oes not have speci%ic competencies. 9oes not wish to invest b(t wishes to e"pand. 9oes not see s(%%icient added val(e.

9oes not have scale o% operations. 9oes not have geographic reach. =ishes to be %le"ible2partic(larl> in innovation c>cle. Activit> not core to b(siness.

?isk not acceptable. Seek s>nergies with local partner.

:@ $"plain the Val(e Chain as a %ramework %or


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:@ 2$"plain the Val(e Chain as a %ramework %oridenti%>ing international competitive advantage;

Str&'t&re Strate!7

S7stemsShared

Fal&esSt7le

Sills Sta""

So&r'e M'Kinse7 -S =rame aterman# r3 5o67ri!ht $ 1,*( b7 Thomas 3 %eters and Robert H3 >aterman# r3 Re6rinted b7 6ermission o"

Har6er5ollins %&blishers# In'3


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=i!&re 13, The val&e 'hain

Inbo&nd

lo!isti'sO6erations

O&tbo&nd

lo!isti's

Maretin!

and salesServi'e

'rimar> activities

6stream val&e a'tivities ;o


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=i!&re 131) A sim6li"ied val&e 'hain

Resear'hand develo6ment

%rod&'tion Maretin! Salesand servi'e

Upstream 9ownstream


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Im6ortant Terms

+alue !hain A 'ate!oriation o" the"irm@s a'tivities 6rovidin! val&e "or the

'&stomers and 6ro"it "or the 'om6an73

-eglobalization Movin! a


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=i!&re 1311 Strate!i' 67ramid

Resear'hand develo6ment

%rod&'tion Maretin! Salesand servi'e

13 Strate!i'

(3 Mana!erial

.3 O6erational


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=i!&re 131. 5entraliation

in the val&e 'hain

E8hibit 134 %o'o7o


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%o'o7o sold to

1)) 'o&ntries

9be!innin! o" ())-:

inia Entertain+

ment# Madrid

Granada

Fent&res# K

Upstream 9ownstream

=i!&re 1 14 Fal&e sho6


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=i!&re 1314 Fal&e sho6

and the servi'e 'hain


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>hat is this?

>hat term re"ers to an e8tension o"

the 'onventional val&e 'hain#


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=i!&re 1310 Firt&al val&e 'hain

;e"inein"ormation

6roblem

Or!anie#

sele't#!ather

in"ormation

S7nthesiein"ormation

;istrib&te in"ormation

R; %rod&'tion Maretin! Sales

and servi'eFal&e

Fal&e

%h7si'al val&e 'hain

Firt&al val&e 'hain

5 i l


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5reatin! val&e

b7 &sin! in"ormation

Mana!in! riss

Red&'in! 'osts

O""erin! 6rod&'ts and servi'es

Inventin! ne< 6rod&'ts


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=or dis'&ssion 9(:

>hat are the main di""eren'es bet


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CAS$ SU9 7.7/Vermont edd> Bear

Sho&ld Fermont Tedd7 Bear !o abroad?


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:(estions/

13 >hat ind o" di""i'&lties

copy of ch 1 - global marketing in the firm + intro modified

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