Introduction:advantage of radiographers
26 Part 1 • Introduction:advantage of radiographers offer to set your own price when you downloaded In Rainbows from the Internet. When you pick up a pound of whole-bean Central american coffee at your favorite coffee café, you will find that some beans are labeled Fair trade Certified. Your toll-free telephone call to a software technical support service or an airline customer service center may be answered in Bangalore or Mumbai. Slumdog Millionaire, which received an oscar in 2009 for Best Picture, was filmed on location in and around Mumbai. You have surely followed media reports about the occupy Wall Street movement in new York City and related protests in Great Britain, Germany, Greece, and Italy.
the growing importance of global marketing is one aspect of a sweeping transformation that has profoundly affected the people and industries of many nations during the past 160 years. International trade has existed for centuries; beginning in 200 b.c., for example, the legendary Silk road was a land route connecting China with Mediterranean europe. From the mid-1800s to the early 1920s, with Great Britain the dominant economic power in the world, international trade flour- ished. However, a series of global upheavals, including World War I, the Bolshevik revolution, and the Great Depression, brought that era to an end. then, following World War II, a new era began. Unparalleled expansion into global markets by companies that previously served only customers located in their respective home countries is one hallmark of this new global era.
Four decades ago, the phrase global marketing did not exist. today, businesspeople use global marketing to realize their companies’ full commercial potential. that is why, no matter whether you live in asia, europe, north america, or South america, you may be familiar with the brands mentioned in the opening paragraphs. However, there is another, even more critical reason why companies need to take global marketing seriously: survival. a management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products.
But what is global marketing? How does it differ from “regular” marketing as it is typically practiced and taught in an introductory course? Marketing can be defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.5 Marketing activities center on an organization’s efforts to satisfy customer wants and needs with products and services that offer competitive value. the marketing mix (the four Ps of product, price, place, and promo- tion) comprises a contemporary marketer’s primary tools. Marketing is a universal discipline, as applicable in argentina as it is in Zimbabwe.
this book is about global marketing. an organization that engages in global marketing focuses its resources and competencies on global market opportunities and threats. a funda- mental difference between regular marketing and global marketing is the scope of activities. a company that engages in global marketing conducts important business activities outside the home-country market. the scope issue can be conceptualized in terms of the familiar product/ market matrix of growth strategies (see table 1-1). Some companies pursue a market develop- ment strategy; this involves seeking new customers by introducing existing products or ser- vices to a new market segment or to a new geographical market. Global marketing can also take the form of a diversification strategy in which a company creates new product or service offerings targeting a new segment, a new country, or a new region.
Starbucks provides a good case study of a global marketer that can simultaneously execute all four of the growth strategies shown in table 1-1:
● Market penetration: Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electroni- cally. the app displays a bar code that the barista can scan.
● Market development: Starbucks is entering India via an alliance with the tata Group. Phase 1 calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. the next phase will likely involve opening Starbucks outlets in tata’s upscale taj hotels in India.6
● Product development: Starbucks created a brand of instant coffee, Via, to enable its customers to enjoy coffee at the office and other locations where brewed coffee is not
“Traditionally, service at Chinese restaurants is not very good and Chinese eat out only for the taste of the food. What Haidi Lao does is to offer a different service experience to make customers feel important. When people are in a good mood, they are willing to spend more, and that is what Haidi Lao gets for its premier service.”4
—Professor Yu Hai, Department of Sociology, Fudan University
4Jin Jing, “Hotpot Chain Haidi Lao Places emphasis on Very Personal Customer Service,” Shanghai Daily (august 18, 2011). 5american Marketing association. http://www.marketingpower.com/aboutaMa/ Pages/ DefinitionofMarketing.aspx. accessed March 1, 2011. 6Paul Beckett, “Starbucks Brews Coffee Plan for India,” The Wall Street Journal (January 14, 2011), p. B8.
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