Global Marketing Management A European Perspective The Future

Global Marketing Management A European Perspective The Future of Global Marketing Warren J. Keegan Bodo B. Schlegelmilch

Overview z Forces Shaping the Future of Global Marketing z Leadership Challenges z Careers in Global Marketing z Summary Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 2

Learning Objectives z Knowing the major forces shaping the future of global marketing z Understanding the demands that increasing business complexity places on global leaders z Learning about the opportunities open to students that intend pursuing a career in global marketing Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 3

Forces Shaping the Future of Global Marketing z Growth and Prosperity vs. Poverty and Despair z Free Markets vs. Growing Protectionism z Population Growth vs. Population Shortage z Global Institutions vs. Resurgence of Nation States z Convergence vs. Fragmentation of Consumer Taste z Industry Concentration and Blurring Industry Boundaries z Virtual Enterprises and Electronic Markets Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 4

Growth and Prosperity vs. Poverty and Despair z Most of the world‘s poor countries are getting richer z Broader global prosperity translates into dramatic growth opportunities z However, the gap between the rich and the poor is increasing Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 5

Free Markets vs. Growing Protectionism z The fight between market vs. state-control is over z Markets are king the world around z However, protectionism appears to be on the rise z Must economic democracy be combined with political democracy? Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 6

Population Growth vs. Population Shortage z Over the last 40 years, world population doubled from 3 to 6 billion z World population expected to reach 9 billion in 2050 z Development might overwhelm the earth’s resources z However, decreasing birth rates and increasing life expectations in developed world might be most important societal challenge of the future Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 7

Rule of Global Institutions vs. Resurgence of Nation States z Influence of nation states decreases z Political and economic power appears to be transferred to regional and global institutions (e. g. EU, WTO, IMF, OPEC) z However, there’s a contradictory trend, namely a floury of nationalism and a sprouting of new countries everywhere Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 8

Convergence vs. Fragmentation of Consumer Taste z International marketers faced with increasingly complex trends z Convergence of tastes around the world ye. g. Coca Cola, Perrier, Mc. Donalds, Madonna z However, there is a trend towards fragmentation of tastes and consumption habits ye. g. Italian suit, Chinese dinner, American jeans z New phenomenon: Fragvergence Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 9

Industry Concentration and Blurring Industry Boundaries z Dominance of mega-mergers y. Bankers Trust (US) acquired by Deutsche Bank (G) y. Amoco (US) acquired by British Petroleum (GB) y. Chrysler (US) acquired by Daimler Benz (G) z Blurring of Industry Boundaries y. Car companies sell financial services (e. g. GM) y. Petrol stations sell food and non-food (e. g. BP) y. Software companies sell consulting services (e. g. SAP) z Uncertainty increases Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 10

Virtual Enterprises and Electronic Markets z Virtual enterprises and electronic markets represent transformation of economy z Internet becomes virtual marketplace z Information technology becomes key instrument for managing external relationships z Mushroom companies: grow overnight - might disappear rather quickly (e. g. Boo. com) Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 11

Leadership Challenges z Demands on Global Leadership yformulate and implement global strategies that - leverage worldwide learning - respond fully to local needs and wants - draw on all the talent and energy of every member of the organization yglobal vision and sensitivity to local needs yunderstanding of uncertainty created by global economy Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 12

Leadership Challenges z World’s most respected business leaders y. Jack Welch - General Electric y. Bill Gates - Microsoft y. Lou Gerstner - IBM y. Jürgen Schrempp - Daimler. Chrysler y. Micheal Dell - Dell Computers y. Warren Buffet - Berkshire Hathaway Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 13

Careers in Global Marketing z Global experience counts y. Community of European Schools (CEMS) y. Traineeships (AIESEC as starting point) y. MBA programmes z Top ranked international business programmes y. Thunderbird - American Graduate School of International Management y. University of South Carolina y. University of Columbia Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 14

Summary Future of global marketing is characterized by increased environmental complexity and contradictory trends ygrowth and prosperity vs. poverty and despair yfree markets vs. protectionism ypopulation growth vs. population shortage yconvergence vs. fragmentation of consumer taste yindustry concentration and blurring industry boundaries Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 17/ 15