Customer experience. The use of products in combination with services to engage the individual customer in a way that creates a memorable event. This can be characterized into one of the four groups: entertainment, educational, aesthetic or escapist.
Deglobalization. Moving away from the globalization trends and regarding each market as special, with his own economy, culture and religion.
Economies of scale. Accumulated volume in production, resulting lower cost price per unit.
Economies of scope. Reusing a resource from one business or country into another business or country.
Globalization. Reflects the trend of firms buying, developing, producing and selling products and services on a worldwide base.
Global integration. Recognizing the similarities between international markets and integrating them into the overall global strategy.
Global marketing. The commitment of the firm to coordinate its marketing activities across national boundaries in order to find and satisfy global customers.
Glocalization. The development and selling of products or services intended for the global market, but adapted to suit local culture and behaviour.
Internationalization. Doing business in many countries of the world, but often limited to a certain region like Europe.
LSEs Firms with more than 250 employees. Large Scale Enterprises.
Market responsiveness. Responding to each market's needs and wants.
SMEs. Small and medium sized enterprises. Companies with fewer than 50 employees are small enterprises. Companies with less than 250 employees are medium enterprises.
Value chain. A categorization of the firm's activities providing value for the customers and profit for the company.
Value networks. The formation of several firm's value chains into a network, where each company contributes a small part to the total value chain.
Value shops. A model for solving problems in a service environment. Value created by mobilizing resources and deploying them to solve a specific customer problem.
Virtual value chain. An extension of the conventional value chain, where the information processing itself can create value for customers.
Blue oceans. The unserved market, where competitors are not yet structured and the market is unknown. It's about avoiding head to head competition.
Competences. Combination of different resources into capabilities and later competences being something that the firm is really good at.
Competitive benchmarking. A technique for assessing relative marketplace performance compared with main competitors.
Competitive triangle. Consist of a customer, the firm and a competitor (the triangle). The firm or competitor winning the customer's favor depends on perceived value offered to the customer compared with the relative costs between the firm and the competitor.
Core competences. Value chain activities in which the firm is regarded as better than its competitors.
Corporate social responsibility (CSR). A number of corporate activities that focus on the welfare of stakeholders groups other than investors.
Double diamond. The international competitiveness of an industry in a country is not only dependent on its home country diamond conditions but also on those of trading partners.
Five- sources model. Corresponding to Porter's five competitive forces, there are also five potential sources for building collaborative advantages together with the firm's surrounding actors.
Perceived value. The customer's overall evaluation of the product or service that is offered by a firm.
Porter's diamond. The characteristics of the home base play a central role in explaining the international competitiveness of the firm. The explaining elements consist of factor conditions, demand conditions, related and supporting industries, firm strategy, structure and rivalry, government and change.
Porter's five- forces model. The state of competition and profit potential in an industry depends on five basic competitive forces: new entrants, supplier, buyers, substitutes, and market competitors.
Red oceans. Tough head to head competition in mature industries often results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.
Relative cost advantage. A firm's cost position depends on the configuration of the activities in its value chain versus that of its competitors.
Resources. Basic units of analysis found in the firm's different departments. Technological, finacial, human resources and organizational resources.
Shared value. A company's strategies and operating practices that globally enhance the competitiveness f the company, while simultaneously advancing the social conditions in the international communities in which it operates.
Strategic group(s). A group of firms operating within an industry where the firms within the group compete for the same group of customers, using similar market related strategies.
Value net. A company's value creation in collaboration with suppliers and customers(vertical network) and complementors and competitors(horizontal network)
GNP. Gross National Product. The value of all goods and services produced by the domestic economy over a one year period, including income generated by the country's international activities.
GNP per capita. Total GNP divided by its population.
Gross domestic product. Plus/minus net income from assets is GNP.
Nationalization. Takeover of foreign companies by the host government.
Trade barriers. Trade laws that favor local firms and discriminate against foreign ones.
Tariffs. A tool used by governments to protect local companies from outside competition.
Aesthetics. What is meant by good taste, art, music, folklore and drama. Vary from culture to culture.
Culture. The learned ways in which a society understands, decides and communicates.
High- context cultures. Use more elements surrounding the message. High degree of complexity in communication.
Low- context cultures. Rely on spoken and written language. Low degree of complexity in communication.
Non- verbal language. More important in high context cultures. Time, space, material possessions, friendship patterns and business agreements.
BERI. A useful tool in the coarse-grained, macro oriented screening of international markets.
Entry mode. An institutional arrangement for entry of a company's products and services into a new foreign market. The main types are export, intermediate and hierarchical modes.
Equity. Some investment of defined financial value.
Intermediate modes. Contractual modes. Somewhere between using export modes and hierarchical modes.
Tacit. Difficult to articulate and express in words. Tacit knowledge has often to do with complex products and services, where functionality is hard to express.
Agent. An independent company that sells on to customers of behalf of the manufacturer.
Direct export modes. The manufacturer sells directly to an importer, agent or distributor located in the foreign target market.
Distributors (importers). Independent companies that stock the product of the manufacturer. They have the freedom to choose their own customers and price and profit from the difference between their selling price and the buying price from the manufacturer.
Export buying agent. A representative of foreign buyers who is located in the exporter's home country.
Indirect export modes. A manufacturer uses independent export organizations located in its own country.
Partner mindshare. The level of mindshare that the manufacturer's product occupies in the mind of the export partner, like an agent or a distributor.
Piggy back. An abbreviation of pick a back. It is about the rider's use of the carrier's international distribution organization.
Contract manufacturing. Manufacturing is outsourced to an external partner. This partner is specialized in production and production technology.
Franchising. The franchisor gives a right to the franchisee against payment. A right to use a total business concept or system including the use of trademarks against some agreed royalty.
Joint venture. A equity partnership between two partners. It involves two parents creating the child(the joint venture)
Licensing. The licensor gives a right to the licensee against payment.
X- Coalition. The partner's in the value chain divide the value chain activities between them.
Y- Coalition. Each partner in the alliance or joint venture contributes with complementary product lines or services. Each of them takes care of all value chain activities within its product line.
Brand equity. A set of brand assets and liabilities that can be clustered into five categories: brand loyalty, brand awareness, perceived quality, brand association and other brand assets. It is the premium a customer would pay for the product.
Celebrity branding. Type of advertising in which celebrities use their status in society to promote a product or service.
Co-branding. Form of a cooperation between two or more brands, which can create synergies that create value for both participants above the value they would expect to generate on their own.
e- Services. A business activity if value exchanges that is accessible through electronic networks like internet and smart phones.
Ingredient branding. The supplier delivers an important key component to the final OEM product.
Long tail. Refers to a graph showing fewer products selling in large quantities versus many more products selling in low quantities. The low quantities items stretch out on the x-axis of the graph, creating a very long tail that generates more revenue overall. (Figure 14.18)
PLC. Stands for Product Life Cycle. It concerns the life of a product in the market with respect to business costs and sales measures. it is a theory in which products or brands follow a sequence of stages, including introduction, growth, maturity and sales decline.
Private label. Retailers own brand.
Sensory branding. Normally brand communication involves two senses: sight and hearing. Sensory branding involves all five senses: sight, taste, smell, touch and hearing.
Time to market (TTM). The time it takes from the conception of an idea until it is available for sale.
Buying/follow- on strategy. Typically the case where two products are linked together: the original product is low in price, in order to get customers in and try the product. The follow on product is then sold at a higher price. (Printers and ink cartridges)
Experience curve pricing. Combination of the experience curve with typical market price development within an industry.
Global pricing contract. A customer requiring one global price per product from the supplier for all its foreign strategic business units (SBUs)and subsidiaries.
Price escalation. All cost factors in the distribution channel add up and lead to price escalation. The longer the channel, the higher the final price in the foreign market.
Product- service bundle pricing. Bundling product and services together in a system solution product.
Transfer pricing. Prices charged for intra company movements of goods and services. While transfer prices are internal to the company, they are important externally for cross border taxation purposes.
Channel length. Number of levels in the distribution channel.
Channel power. The ability of a channel member to control marketing variables of any other member in a channel at a different level of distribution.
Disintermediation. The elimination of middlemen in the distribution channel, by online selling of products directly to the customer.
Grey marketing. Or parallel importing. Importing and selling of products through market distribution channels that are not authorized by the manufacturer.
Horizontal integration. Seeking control of channel members at the same level of the channel.
International retailing. Global tendency towards concentration in retailing, creating huge buying power in the big international retail chains.
Keiretsu. A network of business that own stakes in one another as a means of mutual security, especially in Japan, and usually including large manufacturers and their suppliers. The original keiretsu were each centered around one bank, which lent money to the keiretsu's member companies and held equity positions in the companies.
Logistics. A term used to describe the movement of goods and services between suppliers and end users.
Market coverage. Coverage can relate to geographical areas or number of retail outlets. Three approaches are available: intensive, selective or exclusive coverage.
Vertical integration. Seeking control of channel member at different levels of the channel.
Competitive parity approach. Duplicating the amounts spent on advertising by major rivals.
Crowdsourcing. A company that takes a function once performed by employees and outsources it to an undefined and large community of people in the form of an open call.
Frequency. Average number of times within a given time frame that each potential customer is exposed to the same ad
GRPs. Gross Raring Points. Reach multiplied by frequency. GRPs may be estimated for individual media vehicles.
Impact. Depends on the compatibility between the medium used and the message.
Market mavens. Individuals who have access to a large amount of marketplace information. They are proactively engaged in discussions with other online community members and customers to diffuse and spread this content.
Objective and task approach. Determining the advertising objectives and then ascertaining the tasks needed to attain these objects.
OTS. Opportunity To See. The total number of people in the target market exposed to at least one of the given time period.
Percentage of sales methods. The firm will automatically allocate a fixed percentage of sales to the advertising budget.
Social media. A group of internet based applications that allow creation and exchange of user generated content like blogs, Facebook, YouTube, etc.
USP. Unique Selling Proposition. This is the decisive sales argument for customers to buy the product.
Viral Marketing. Online world of mouth is a marketing technique that seeks to exploit existing social networks to produce exponential increases in brand awareness.
Word of Mouth (WoM). The sharing of information about a product between a customer and a friend, colleague or other acquaintance.
Behavioral controls. Regular monitoring of behaviour, such as sales people's ability to interact with customers.
Feedforward control. Monitors variables other then performance. Variables may change before the performance itself. In this way, deviations can be controlled proactively before their full impact has been felt.
Functional structure. The next level after top management is divided into functional departments. The management is concerned primarily with the functional efficiency of the company.
Geographical structure. The next level after top management is divided into international divisions like Europe, North America, Latin America, Asia, Africa and Middle East.
Global account management. A relationship- oriented marketing management approach focusing on dealing with the needs of an important global customer with a global organization.
International division structure. As international sales grow, the international divisions emerge at the same level as the functional departments.
Matrix structure. Consist of two organizational structures: product and geographical areas intersecting with each other. This results in dual reporting relationships.
Output control. Regular monitoring of output, such as profits, slaes figures and expenditures.
Product divisional structure. The next level after top management is divided into product division, e.g. product A, B, C and D.
Summary Organizational Behavior by Robbins and JudgeBeing a good manager requires strong interpersonal skills, as communication is crucial, as one must manage different types of resources: people, money, and time in order to achieve specific goals.
A Manager’s Four Main Functions
Planning function refers to setting goals, creating strategies, and preparation of plans that make different activities work coherently and effectively.
Organising function concerns tasks identification and division, assignment of tasks to individuals, setting reporting and decision- making systems.
Leading function relates to motivating workers and directing others’ actions, choosing communication canals and solving conflicts.
Controlling function refers to controlling others’ work outcomes and checking whether everything is being done as planned; and when necessary undertaking corrective actions.
Management roles
They can be divided into 3 main categories: interpersonal roles, informational roles and decisional roles. The concept was developed by Henry Mintzberg and is called Mintzberg’s Managerial Roles (below).
ROLE | DESCRIPTION
|
Interpersonal
| Roles which involve ceremonial/symbolic duties |
Figurehead | Symbolic head, needs to perform duties of social/legal nature |
Leader | Motivates and directs employees |
Liaison | Maintains a network of outside contacts |
Informational
| Collection and dissemination of information |
Monitor | Receives information, serves as nerve centre of internal and external information |
Disseminator | Transmits information from outsiders to the organisation’s members |
Spokesperson | Transmits information about the organisation to outside parties |
Decisional
| Refers to making choices |
Entrepreneur | Analyses the organisation and its environment for opportunities and initiates projects to bring about change |
Disturbance handler | Undertakes corrective actions in case of problems |
Resource allocator | Makes or approves important organizational decisions |
Negotiator | Represents the organization in negotiations |
Management skills
There are
.....read more List of important terms for Global Marketing: a decision-oriented approachCustomer experience. The use of products in combination with services to engage the individual customer in a way that creates a memorable event. This can be characterized into one of the four groups: entertainment, educational, aesthetic or escapist.
Deglobalization. Moving away from the globalization trends and regarding each market as special, with his own economy, culture and religion.
Economies of scale. Accumulated volume in production, resulting lower cost price per unit.
Economies of scope. Reusing a resource from one business or country into another business or country.
Globalization. Reflects the trend of firms buying, developing, producing and selling products and services on a worldwide base.
Global integration. Recognizing the similarities between international markets and integrating them into the overall global strategy.
Global marketing. The commitment of the firm to coordinate its marketing activities across national boundaries in order to find and satisfy global customers.
Glocalization. The development and selling of products or services intended for the global market, but adapted to suit local culture and behaviour.
Internationalization. Doing business in many countries of the world, but often limited to a certain region like Europe.
LSEs Firms with more than 250 employees. Large Scale Enterprises.
Market responsiveness. Responding to each market's needs and wants.
SMEs. Small and medium sized enterprises. Companies with fewer than 50 employees are small enterprises. Companies with less than 250 employees are medium enterprises.
Value chain. A categorization of the firm's activities providing value for the customers and profit for the company.
Value networks. The formation of several firm's value chains into a network, where each company contributes a small part to the total value chain.
Value shops. A model for solving problems in a service environment. Value created by mobilizing resources and deploying them to solve a specific customer problem.
Virtual value chain. An extension of the conventional value chain, where the information processing itself can create value for customers.
Blue oceans. The unserved market, where competitors are not yet structured and the market is unknown. It's about avoiding head to head competition.
Competences. Combination of different resources into capabilities and later competences being something that the firm is really good at.
Competitive benchmarking. A technique for assessing relative marketplace performance compared with main competitors.
Competitive triangle. Consist of a customer, the firm
.....read more Summary Global Marketing (Hollensen)We are entering a new phase of globalisation in which an ultimate model for success does not exist and whereby companies from every part of the world compete. This chapter contains an introduction to globalization. We will discuss the process of developing the global marketing plan, the two main types of enterprises, the development of the concept of global marketing, global integration and market responsiveness, the value chain and global experimental marketing.
Globalisation: the trend of companies buying, developing, producing and selling products and services in most countries and regions of the world. It increases the companies’ competitiveness and facilitates innovation.
Internationalisation: doing business in many countries of the world, but often limited to a certain region, e.g. Europe. It is unlikely to be successful unless the company prepares in advance.
The process of developing the global marketing plan contains the decision whether to internationalize, deciding which markets to enter, deciding on the Market entry strategy, designing the global marketing programme and implementing and coordinating the global marketing plan.
There are two types of enterprises:
LSEs (Large Scale Enterprises): firms with more than 250 employees. Comprise 1% of all firms.
SMEs (Small and Medium-sized Enterprises): small firms have fewer than 50 employees; medium firms have fewer than 250 employees. Comprise 99% of all firms.
There are a few main qualitative differences between marketing and management style in SMEs and LSEs:
Resources:
Financial: SMEs have a lack of financial resources due to limited equity.
Business education/specialist expertise: SMEs have a lack of specialist expertise because managers are untrained in formal business disciplines.
Additionally, SMEs managers do not have knowledge about global marketing expertise. Therefore, the owners of SMEs are often closely involved with the firm’s processes.
Formation of strategy/decision-making processes: both the intended (or deliberate) strategy and the emergent strategy result in the realized strategy of a firm, Figure 1.3. LSEs mainly use the intended strategy and SMEs mainly use the emergent strategy. LSEs also use the approach logical incrementalism, Figure 1.4. They implement small adjustments, and when it is proved that they are successful further development of the strategy takes place. If the environmental change moves apart from the changes due to the incremental strategy, strategic drift arises. SMEs use
.....read more Summary: A Framework for Marketing Management
The new economy is based on the Digital Revolution and the management of information. It is characterized by the Information Age, with promises of more accurate levels of production, more targeted communications, and more relevant pricing.
The old economy, on the other hand, was based on the Industrial Revolution, manufacturing industries, and standardization of products to achieve economies of scale. It is characterized by the Industrial Age, which focused on mass-production and mass-consumption with promises of efficiency.
The new economy has allowed for more capabilities for consumers and companies;
Consumers can now:
Find lowest prices as a consequence of their increase in buying power.
Access a greater variety of available goods and services. (e.g. through Amazon.com)
Access large amounts of information about anything
Interact, place and receive orders easily, 24/7 and from any location.
Compare notes on products and services.
Companies can now:
Operate powerful new information and sales channels to inform and promote their businesses and products.
e.g. Using Web sites.
Collect fuller and richer information about markets, customers, prospects, and competitors.
Speed up and facilitate internal Communication among employees.
e.g. Intranet
e.g. Extranets with suppliers
Communicate with customers and prospects in a “two-way” manner, and have more efficient transactions.
Send ads, coupons, samples, and information to those customers that requested it.
e.g. Internet, allows for the comparison of prices improving purchasing
Customize offerings and services to individual customers.
Improve purchasing, recruiting, training, and internal and external communications.
Improve logistics and operations, saving costs and improving accuracy and quality.
These capabilities of consumers and customers create new forces, the question and focus is on how these new forces will change marketing.
Marketing deals with identifying and meeting human social needs; “meeting needs profitably”. Companies are motivated to turn a private or social need into a profitable business opportunity, e.g. Ikea identified the need for good.....read more
The Most Common Mistakes Companies Make with Global Marketing by Nataly Kelly - ArticleInstead of targeting a region as big as, for example, Asia or Europe, company executives would be wise to specify which Asian country is targeted. Generalising a region would be unwise because customers are likely to identify on a national level. For marketing, bespoke marketing management is the keyword here because cultural norms, local laws, specific business practises and currency are different per country. Market research should be localised and focused on understanding local customer behaviour, market size, local competitors and where the company product can fit in this market matrix.
For a company to develop a global market strategy there are three important data points to look at:
What is the estimated opportunity available in that (specific) market?
What is the ease of doing business in that market?
What is the level of success already enjoyed in that market?
More often than not companies rely on external date for making decisions. But for question 2 and 3 internal company data is likely to provide a better answer. How much investment creates how many leads? What are the sales cycles? Answers to these questions are better sought within the company, since third-party data sources are not as familiar with the product, brand and customer of the company.
Every company needs to tailor its channels to the local condition when entering a new market. Whatever might have worked in the home market, might not work abroad. When you are selling through social media, choosing the right platform per country is essential. Twitter might be popular in one country while another country has its own popular social channel. Another example is in countries with high cultural value attached to relationships, it might be wise to sell through local partners such as resellers instead of relying on direct sales methods. Relying in local data an in-country experts is highly recommended.
The Kotler Bundle: summaries and study notes for The Principles of Marketing by Kotler and Armstrong
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