Lecture 1 - Introduction Flashcards
What is domestic marketing?
Carried out within a defined national or geographic boundary
Relatively free to plan, implement and control marketing plans within a known marketing environment
What is international marketing?
Begins to explore markets outside national boundaries of domestic market
Direct and indirect exporting to neighbouring countries
The need to manage uncontrollable international environmental elements
What is global marketing?
Marketing operations that seeks to lever its assets across political and cultural boundaries
Maximising opportunities and exploiting marketing similarities and differences in search for global competitive advantage
Are global marketing and international marketing the same thing?
No
What is the definition of globalisation?
The international integration in commodity, capital and labour markets (Bordo et al., 2003)
The process by which the people of the word are unified into a single society. This process is a combination of economic, technological, sociocultural and political factors.
What are the technological drivers of globalisation?
Improved communications (Internet, mobile communications, satellite communications)
Digital technology developments (cheaper, more powerful technology)
Information availability and transferability
Increase in knowledge economies
What are the business drivers of globalisation?
Economies of Scale – cheaper
Competitive advantage
New market development
Name the other drivers of globalisation? (not technological or business)
Political – free trade benefits and agenda
Cultural tendencies that benefit businesses (US consumer market; Asian labour market, US/Japan Knowledge economy)
Developed countries leveraging cheap labour markets in developing countries
What age group predominate western markets?
Grey markets - products include holidays or living aids such as reclining beds, chairs and stairlifts
What are the approaches in marketing theory?
Transactional Corporate reengingeering 'the Lopez era' Resource based Relationship Organisational learning Expert systems/database Interactive, bench-marking
What are the new challenges facing global businesses
Adopting the new rules of global engagement
Understanding the new global economic architecture
Matching the needs of new global consumers
Forging long-term profitable relationships with strategic partners
Achieving global competitiveness through value innovation
Harnessing new technologies to engage consumers and achieve global efficiency
Managing knowledge assets as a source of competitive advantage
Assuming corporate social responsibilities to achieve win-win for all stakeholders
What are the new rules of global engagement?
New direction in global engagement
- more introspective and rationalised
- reduce dependence on developed economies
New challenge for global businesses
- ability to adapt to changing market opportunities
- emphasis on partnerships that will stimulate local businesses, create new opportunities and drive competitiveness for all
What is the new global economic architecture?
Emergence of new economic powerhouses
Asia to become the production hub and the West the service hub
A rising tendency to global instability
-requires more rigorous risk assessment
- crisis and catastrophe planning and management
Who are the new global consumers?
Older people - more prosperous group
- reduced birthrate means a larger proportion of older consumers
Emergence of ‘global consumers’
- Convergence in global consumption patterns?
- Diversity and subcultures
What does the new breed of consumes mean?
Expectation of more customised products and services to cater to their individual needs
Result is that world branding will become more important
What are the challenges of achieving global competitiveness?
Shortening product life cycle Demand for high quality at low prices The 'green' issue Changing rules of competition Demanding customers
What does marketing using new technologies involve?
The internet and communications revolution (ICT)
The changing nature of interaction between organisations and consumers
- Increasing interactivity and transparency
- Fragmentation of media
What is the knowledge base?
An organisations assets - people and information
What is the most important in the service economy?
People and information (the Knowledge base)
How can knowledge as a source of global competitive advantage be taken advantage of by an organisation
With the world economy set to rely heavily on the services sector and with a much higher level of information and intelligence to respond effectively, it follows that organisations of all sizes increasingly need strategically to manage their most valuable assets - people and information
What is the Pareto rule?
The 80/20 rule - 80% of revenue is generated from 20% of customers.
TRUE/FALSE? Customer acquisition can cost up to 5 times more than retention
TRUE
What is CSR
How organisations look after their moral and social responsibilities. AND a potential source of competitive advantage
What does CSR need by the organisation?
Constant monitoring and adaptation that involves: Regular risk assessments, marketing entry and withdrawal strategies, expatriation of funds
