Chapter 1: Introduction to Global Marketing
Leaning Objectives
• Summarize the evolution of marketing
• Identify the three basic principles of marketing
• Discuss global marketing practices and strategies
• Discuss the growth of global market opportunities
• Compare and contrast management orientations
• Describe the driving forces behind the increased pace of global integration
• Identify three restraining forces that hinder global marketing efforts
Chapter Overview
Global marketing is the process of focusing the resources and objectives of a company on
global marketing opportunities. Companies engage in global marketing for two reasons:
to take advantage of opportunities for growth and expansion, and to survive. Companies
in globalizing industries that fail to pursue global opportunities will eventually lose their
domestic markets because they will be pushed aside by stronger and more competitive
global competitors. Company management can be classified in terms of its orientation
toward the world.
Lecture Outline
I. Marketing: A Universal Discipline (p. 3)
a. The Marketing Concept (p.3)
i. The New Concept of Marketing and the Four P’s
ii. The Strategic Concept of Marketing
II. The Three Principles of Marketing (p. 6)
a. Customer Value and the Value Equation
b. Competitive or Differentia Advantage
c. Focus
III. Global Marketing: What It Is and What It Is Not (p. 7)
a. The Standardization Debate
IV. Globalization and Global Marketing (p. 12)
V. Management Orientations (p. 15)
a. Ethnocentric Orientation
b. Polycentric Orientation
c. Regiocentric and Geocentric Orientations
VI. Driving and Restraining Forces (p. 18)
a. Driving Forces
i. Technology
ii. Regional Economic and Political Agreements
iii. Market Needs and Wants
iv. Transportation and Communication Improvements
v. Product Development Costs
vi. Quality
vii. World Economic Trends
viii. Leverage
1. Experience Transfers
2. Scale Economies
3. Resource Utilization
4. Global Strategy
ix. The Global/Transnational Corporation
b. Restraining Forces (p. 26)
i. Management Myopia and Organizational Culture
ii. National Controls and Barriers
VII. Outline of This Book (p. 27)
VIII. Summary (p. 27)
Tables and Figures
Figure 1-1 Marketing is Everything (p. 4)
Figure 1-2 Value Chain Boundaryless Marketing (p. 6)
Figure 1-3 Key Marketing Principles (p. 6)
Table 1-1 Examples of Global Marketing Strategies (p. 10)
Table 1-2 Total Motor Vehicle and Parts Sales Worldwide, 2009 (p. 13)
Table 1-3 The World’s Largest Corporations by Market Value (p. 14)
Table 1-4 The Global 2000: The Largest Corporations by Revenue (p. 15)
Figure 1-4 Orientation of Management and Companies (p. 16)
Figure 1-5 Global Integration (p. 18)
Sidebar
Sidebar 1-1 Nokia “Blinded by the Light” (p. 24)