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Global Marketing ManagementMarketing in the Modern Organisation

History of MarketingBeginning of 20th century driven by mass manufacturing and beginnings of product differentiationAlso driven by changes in economic structure of US, UK etc including increasingly sophisticated channels of distributionEvidence suggests (Jaworski & Kohli, 1993; Slater & Narver, 1994) positive correlation between adoption of marketing philosophy within an organisation from top down (Marketing Orientation) and success of the organisation

Is Marketing an Art or a Science?Criticisms of marketing as a science, include:scientific status of social studies questionablemarketing too narrow a field of investigationcant test doxa in purist way therefore cannot derive laws or principlesunable to generalise effectivelylack of uniformity of phenomena studied - objectivity?The art versus science debate in marketing theory has raged for decades see Brown (2001) for review. Marketing scientists no longer dominant, but still very active in some areas e.g. Marketing Science Institute (www.msi.org); Ehrenberg-Bass Institute (www.marketingscience.info)

Changing Definition of MarketingA social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others(Kotler, Armstrong, Saunders and Wong,1999)Marketing is the management process that seeks to maximise returns to shareholders by developing and implementing strategies to build relationships of trust with high-value customers and to create sustainable competitive advantage. (Doyle, 2004)What are the main differences between these definitions?Are any other changes necessary?4Perceived Weaknesses of 4 Ps Approach4Ps (McCarthy, 1960) has been dominant in marketing theory for 40 yearsHowever:It is a list of categories of marketing variables (Grnroos, 1994), not a theory or management framework; not even an exhaustive list!Technique driven, not customer drivenEncourages each variable to be considered in isolationEncourages the separation (alienation?) of operational marketing from other functional areas in a firm

5Perceived Weaknesses of 4 Ps ApproachIn addition:Short-termist, transaction oriented does not cope well with different types of buying behaviourOne way does not allow for interactions with customers and other stakeholders; assumes an active firm and a passive customerNot a good fit with services and B2B marketing too simplistic, too narrowWhere does value fit into the 4Ps?Emergence from 1980s onwards of seemingly unconnected new views of marketing which were:Not based on 4 PsNot related to the standard microeconomic paradigm (Vargo and Lusch, 2004)

6Service Dominant Logic for Marketing (Vargo and Lusch, 2004)Emergence of services marketing as a separate field in 1970s; development of this into a major stream of researchThe traditional division between goods and services is long outdated. (Gummesson, 1995)Customers need bundles of tangibles and intangibles that deliver benefits and create valueImportance of service process, performance, peopleFocus on intangibles, relationships and co-creation of value

Internal MarketingAll employees contribute to value and satisfaction for customers, regardless of whether they are customer-facingEncouraging employees to have holistic views of their jobsDeveloping and retaining customer-conscious employeesLooking after the internal market of employeesEmployee satisfaction leads to customer satisfaction

8Relationship Marketing (Grnroos 1990, 1994)Long-term, enduring relationships with customers are main objective of marketingExchanges are the objects by which these relationships are developed and sustainedInteractivityNetwork approachLong-term perspectiveInternal marketingTrust, goodwillExchange of promises

9Postmodern and Critical MarketingReaction against logical positivism; against the desire to see marketing as a science; against the desire to build a general theory of marketingReflection of broader trends in philosophy, in social science paradigms towards relativism/interpretivism rather than a hunt for truthCritical theory attempts to look beneath the explanations and arguments of traditional marketing theories in order to reveal a deeper reality and structures (Saren, 2010)

Changing Focus and Objectives of Marketing4 Ps Based MarketingFocus on transactionsMarketing is what the marketing department do

Short termShare of market

Features and benefitsMarketing is something you do to a customerOne wayModern MarketingFocus on relationshipsMarketing is too important to be left to the marketing departmentLonger termShare of wallet; customer lifetime valueValue and satisfactionMarketing is something you do for (with?) a customerTwo way11Global Marketing ManagementPlanning, Organisation and Control of Global Marketing

Hierarchy of Strategy & PlanningCorporate strategy Business strategyFunctional strategieshttp://www.pg.com/en_UK/company/structure-and-operations/corporate-structure.shtml

LSEs often operate this way; SMEs operate very differently13Strategic Marketing PlanningStrategic Marketing Planning defines the scope of the companys marketing activities, sets objectives for products and markets, defines the competitive advantage and allocates resourcesMarketing focuses on consumer needs and the company's ability to satisfy them - such factors guide the company mission and objectivesGlobal Marketing Planning Contents of marketing plan:Market situation analysisMarketing objectivesMarketing strategySource/nature of competitive advantage, overall competitive positioningMarketing action planDetail of products/services, branding, pricing, distribution, marketing communicationsEvaluation and control procedures15Internal Environment(The Firm)Micro EnvironmentMacro EnvironmentSocio-culturalTechnologicalEconomic Political/legalSuppliers Customers DistributorsCompetitors PublicsDemographicPhysical16Global Marketing Planning How many marketing plans?One per country or region?One per product market?One standardised plan?Who is responsible for planning?Top down planning facilitates standardisation and performance monitoringBottom up planning is more responsive to local market needs17Evolution of Global Marketing

Source: Kotabe & Helsen (2008)18Limitations of Global MarketingMarket heterogeneityFirms internal resourcesPolitical powerGlobal turmoil

Led to global localisation - glocalisation