BBA insurance project semester 2 ipu college

BBA project

1. GLOBALMARKETING MANAGEMENT
DR. ZILLUR RAHMAN
PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
1
MODULE -60

2. Module 18 & 19: Global Market Entry Mode
GlobalMarketingEnvironment
Module 10 & 11: Political/ Legal Environment
Module 3, 4 & 5: Global Economic Environment
Module 6 & 7: Financial Environment
Development of Competitive Strategy
Module 8 & 9: Cultural issues and Buying Behavior
Module 12 & 13: Global Marketing Research
Module 14 & 15: Global Segmentation and Positioning Module 16 & 17: Global Marketing Strategies
Module1&2:Globalization
2
Global Marketing Strategy Development
Module 20 & 21: Global Product Development
Module 22 & 23: Marketing Product and Services
Module 26 & 27: Communicating with the world Consumer
Module 28 & 29: Sales Management
Module 24 & 25: Global Pricing Module 30 & 31: Global Logistic and Distribution
Module 32, 33 & 34: Export/Import Management

3. Managing Global Operation
Module 35 & 36: Planning, Organization and Control of Global Marketing Operations
Module 37 & 38: Marketing in Emerging Markets
Module 39 & 40: Global Marketing and the Internet
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Business-to-Business Perspective
Module41:IntroductionToBusiness-to-BusinessMarketing Module42:HowBusinessOrganizationsBuy
Module43:StrategicPlanningforGlobalBusinessMarkets Module44:EthicalConsiderationsforBusinessMarketers
Module45:MarketResearch Module46:Segmentation,Targeting,andPositioning
Module47:ProductStrategy&Development Module48:ServicesforBusinessMarkets
Module49&50:Pricing Module51&52:SupplyChainManagement&Managing
Module53&54:Business-to-BusinessMarketingCommunications DistributionChannels
Module55&56:CustomerRelationships&Key-accountManagement Module57:SalesPromotion,Exhibitions,&TradeFairs
Module 58: Corporate Reputation Management Module 59 & 60: Marketing Planning, Implementation, & Control

4. Marketing Planning, Implementation, & Control
MODULE –60
4

5. Module Overview
1.StructuralAlternatives
2.CentralizationversusDecentralization
3.ChoosingtheMostEffectiveStructure
4.ReactingtoTurbulentMarkets
5.WhentoRestructure
6.ManagingChange
7.TheFutureofBusinessMarketing(Globalization,RapidlyChanging
Technology,SocialNetworking,IncreasedVisibility)
8.ProductDevelopment,PostmodernMarketing,Value-based
Marketing,andTheTwenty-firstCenturyMarketplace
5

6. Introduction
•Oncethehardworkofsegmentationhasbeencompletedanda
strategyhasbeenchosen,thebasicsofmarketingmustbeputin
place.
•Nothingismorebasicthantheorganizationstructure.
•Thedesignandimplementationofthisstructurecanempower
employeestomakethestrategyworkorplaceinsurmountable
obstaclesinthewayofthissuccess.
6

7. Structural Alternatives
•Marketingcanbeorganized
aroundfunctions,product
lines,targetmarkets,or
somecombinationofthese.
•Thefivebroadwaysto
organizemarketingtasks
areshowninTable60.1.
7
Table60.1:Organizationalalternatives
Source:Zimmerman,A.&Blythe,J.(2013)BusinesstoBusinessMarketing
ManagementAglobalperspective

8. Structural Alternatives
•Businesseswhichprovidesingleproductlinestoalimitednumber
ofmarketsnormallyfollowasimplefunctionalorganization.
•Amajoradvantageofthisapproachissimplicity.Decision-makingis
centralized.However,whereafirmhasmultipleproductsormarkets
tobeaddressed,thisapproachbecomesunwisely.
•Inthefunctionaldesign,itisdifficultforaparticularproductor
markettogettheattentionitneedsfromthevariousfunctionsin
marketing.Thishasledtotheestablishmentofproductormarket-
basedorganizations.
8

9. Structural Alternatives
•Theproduct/market-basedorganizationsputsagreatamountof
strainonthetopmarketingexecutivewhoneedstobeanexpertin
severaldifferentlinesofbusinessordifferentiatedmarket
segments.
•Acombinationapproachiswheremarketingisorganizedona
functionalbasisbutthesalesorganizationisorganizedbyproduct.
•Thedifficultywiththisorganizationistheobstaclesitpresentsfor
functionssuchasmanufacturingandengineeringtointeractwith
productlineexperts.
9

10. Structural Alternatives
•Thegeographicorareaorganizationisemployedbycompanies
withshortorsimilarproductlineswithvastlydifferentconditionsin
itsgeographicmarkets.
•Thestructureallowslocalmanagerstoadapttheirmarketing
programsverywelltospecificmarkets.However,itlimitsthe
exchangeofinformationandaddsalevelofcomplicationto
rationalizingtheproductline.
10

11. Structural Alternatives
•Yetanotherpermutationiswherethesalesorganizationisorganizedin
thetraditionalgeographicway,butproductmanagersareestablished
tofocusattentionontheneedsoftheparticularproductline.
•Thisorganizationisbestusedwhereasinglesalesorganizationserves
onesetofcustomerswithavariedlineofproducts.Again,this
structuremaybeorganizedaroundmarketsratherthanproducts.
•WhilethisorganizationapproachisquitecommoninB2Bfirms,the
difficultyhereisthatproductmanagersdonotreporttoalevelhigh
enoughintheorganizationsothattheycanaffectthebasicdecisions
ofotherfunctions.
11

12. Structural Alternatives
•Theoverlayofservinginternationalmarketsaddsmorecomplexity
totheorganizationdesign.
•Thesimplestapproachforhandlinginternationalbusinessisthe
exportdepartmentasanextensionofafunctionalorganization
whichiseffectiveonlyforfirmswithverylimitedsalesoutsideits
homemarket.
•Onceafirmbeginstohavesignificantinternationalsales,theexport
salesdepartmentisoverwhelmedandthefirmmaymovetovarious
othertypesoforganization.
12

13. Structural Alternatives
•Therearesixbasictypesofinternationalorganizationstructures:
13
Global product –product divisions are
responsible for all manufacturing and
marketing worldwide.
Global area–geographic divisions are
responsible for all manufacturing and
marketing in their area.
Global functional –each functional area
is responsible for worldwide operations.
Global market –similar to the global
product structure but based on
customer segments.
Mixed or hybrid –combining features of
all the alternatives listed above.
Matrix –for large multinational
corporations attempting to give equal
emphasis to functional and geographic
aspects of the organization.

14. Structural Alternatives
•Themostcommonstructureusedbymultinationalorganizationsis
theproductstructure.Thebenefitofthisapproachiscentralization
andeaseofdecision-making.
•Aglobalproductstructureassignstheinternationalresponsibilityto
eachproductdivision,therefore,thereisnocentralpoolof
internationalexpertise.
•Inmanycases,severalproduct-orientedorganizationsinthefirm
aremarketingsimultaneouslytothesamecustomerwithlittleorno
coordinationbetweenthem.
14

15. Structural Alternatives
•Inaddition,someactivitiessuchasmarketresearchareoftennot
givenadequateattention,especiallyonaninternationalbasissince
thecriticalmassofprojectsdoesnotdevelopwithineachproduct
organization.
•Centralizingfunctionslikeresearchissometimesthesolutiontothat
problem.
•Themarketstructureallowsthefirmtofocusonspecificmarket
segmentsandhasthesameadvantagesanddisadvantagesasthe
productstructure.
15

16. Structural Alternatives
•Theproduct-orientedorganizationiscalledasanimpedimentto
“market-driventhinking.”
•Theseorganizationstendtobecompetitor-centeredandtoover-
emphasizecost.Hence,market-orientedorganizationwithitsability
toclearlyalignsalesandmarketingtowardcustomersegmentsis
preferred.
•Also,functionally-organizedfirmswhohavesemi-relatedproducts
sufferbecausenoindividualtakestheresponsibilityforacustomer
grouporaprospectivenewsegment.
16

17. Structural Alternatives
•InTheareaorregionalstructurefirmisdividedgeographicallyand
allactivitiesrelatedtotheparticularareaareplannedandexecuted
withintheareaorganization.
•Forfirmswhosecustomersexhibitgreatvariationsbygeography,
thisapproachcanworkwell.Hereagain,duplicationisapossible
negativeeffectwithapossiblelackofinformationtransferfromone
countryorganizationtoanother.
17

18. Structural Alternatives
•Cost-effectiveproductstandardizationisoftendownplayedinfavor
ofregionaldifferences.
•Somefirmsgroupcountriestogetherintoregionstocapturesome
ofthatsynergy.
•Themixedstructurecombinesaspectsofalltheorganizationaltypes
mentionedabove.
•Figure60.1(nextslide)showstheessentialsofthematrix
organization.Itispredictedthatmanycorporationswouldbe
headinginthisorganizationaldirection.
18

19. Structural Alternatives
19
Figure60.1:MatrixOrganization
Source:Zimmerman,A.&Blythe,J.
(2013)BusinesstoBusiness
MarketingManagementAglobal
perspective

20. Structural Alternatives
•Inthisfigure,aFrenchproductmanagerandasalesmanager
locatedinFrancereporttotheirrespectivemanagerslocatedina
regionallocationandtoacountrymanagerforFrance.
•Thisdualreportingrelationshipviolatesthebasicprincipleof
management,thatanindividualshouldhaveonlyasingle
supervisor.
•Butprovidescuretheillsoffunctional,product-onlyorarea-only
focusintheotherorganizationalalternatives.
•ManylargefirmssuchasGE,Eriksson,Boeing,andPhilipshaveused
thisapproachsuccessfullyovermanyyears.
20

21. Structural Alternatives
•Followingaresixstrategiestomakethematrixorganizationmore
effective:
–clarityofauthorityandownershiptobegiventoaspecificfunction;
–developingoptimalbalanceofverticalandhorizontalpoweracrossunits;
–considerationofunitswhichgenerallyactascatalystsforinnovationvs
thoseresponsibleforconstrainingopportunitiesinassigningpower;
–understandingwhetherpracticesshouldbeintroducedwhichareculture-
challengingorculture-friendly;
–balancingthecostofmanagementtimeversusallowingmoreinput;
–allowingmanagementtobeopentonewideas
21

22. Structural Alternatives
•Anextensionofthematrixorganizationstructureistheorganismic
structure.Unlikethetraditionalmechanisticorbureaucratic
pyramid,thereisnoclear“boss.”Eachindividualcontributes
expertise(andeffort)towardachievingtheorganization’sobjectives.
•Theleaderforeachtaskisdeterminedbytheprojectbeingtackled
atthetime.
•Thistypeofstructureistypicalofsmallconsultancyfirmsbutcanbe
foundinlargerorganizationsordepartmentsoflargerorganizations.
•Themainadvantageisflexibility,whichmakesitaappropriate
structurefordealingwithchangingenvironments.
•
22

23. Structural Alternatives
•Organismicstructureshavethefollowingcharacteristics:
–Communicationsflowevenlybetweenallthemembersofthe
organization.
–Thereisnofixedleadership:leadershipdevolvestothepersonbest
fittedtodealwiththesituationfacingtheorganizationatthetime.
–Statusintheorganizationcomesfromknowledgeandskillratherthan
fromqualificationsandexperience.
–Theorganizationmakesuseofabroaderrangeofskillsfromeach
individualthanwouldbethecaseinahierarchicalorganization.
23

24. Structural Alternatives
•Ofcourse,organismicstructuresalsohavedrawbacks,asfollows:
–Agreatdealoftimeisspentindiscussions,andinresolvingleadership
issues.
–Careerpathscanbedifficulttoidentify.
–Thebiggertheorganization,themorecomplexthecommunications
become.
–Inperiodsofstability,managerstendtobecomeconfirmedintheir
leadershiproles.Inotherwords,theorganizationtendstobecome
hierarchicalifconditionsremainstable.
24

25. Centralization versus Decentralization
•Akeydecisionininternationalmarketingisthedegreeof
independencetobegiventolocalorganizations.
•Decentralizedorganizationsallowahighdegreeofindependence
forlocalsubsidiarieswhilehighlycentralizedorganizations
concentratedecision-makingattheheadoffice.
•Inreality,firmsareamixofcentralizationanddecentralization,
oftenbyfunction.
•Somefunctions,suchasR&Dorhumanresourcesmaylend
themselvestocentralizationwhilelocalmarketingfunctionsare
oftendecentralized.
25

26. Centralization versus Decentralization
•Wisemanagementallowsahighleveloflocalmarketingdecision-
makingsothatproductsandapproachescanbeadaptedtothe
needsofthelocalcustomers.
•Ifafirmfacesseverechallengesbycompetitorsonaglobalbasis,it
maywishtosetstrategyonaglobalbasiswhileallowinglocal
decision-makingwithinthatstrategy.
•Thisiscalledcoordinateddecentralization.
26

27. Choosing the Most Effective Structure
•Indecidinghowtodesigntheorganization,severalfactorscome
intoplay.TheseareseeninFigure60.2.
27
Figure60.2:Factorsaffecting
organizationalstructure
Source:Zimmerman,A.&Blythe,J.
(2013)BusinesstoBusiness
MarketingManagementAglobal
perspective

28. Choosing the Most Effective Structure
•Thefirstandmostimportantdriveroforganizationstructureis
strategy.Itissaidthat“suitablestructureandprocessesneedtobe
institutedtorealizethefruitsofglobalstrategy.”
•Obviouslytheproductsandservicesofferedhaveasignificanteffect
upontheorganization.
-Shouldtheproductsrequireinstallationandmaintenancewithhighlyskilled
technicalpeople,amorecentralizedorganizationwouldberequired.Firmswith
multipleproductlinessellingtomultiplesegmentswillmorethanlikelyhavethe
productormarket-basedorganizationalstructures.
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29. Choosing the Most Effective Structure
•Thedegreeofinternationalizationisanotherimportantfactorin
makingthestructuredecision.
-Afirmthatsellsafewproductsoutsideitshomemarketcanhaveanexport
departmentwithinafunctionalorganization.Butafirmwithaglobalstrategy
willeventuallymovetoacomplexmatrixorotherhybridtypeoforganization.
•Bothmarketandtechnologicalenvironmentscanalsohavemajor
effectuponthestructuredecisions.
-Withrapidandunpredictablechangesinenvironmentwhetherregulatoryor
competitivetheorganizationsneedastructurethatcanrespondrapidly.
29

30. Choosing the Most Effective Structure
•Akeyquestionaffectingfirmorganizationisitshumancapabilities.
-thematrixorganizationworksbestwheremanagementandemployees
understandhowtomakeitwork.Theexperience,knowledge,andcapabilities
ofindividualsmustbeunderstoodwhenanorganizationtypeischosen.
•Firmsizewasfoundtobeakeydeterminant.
-Smallerfirmstendedtohavemarketingandsalestogetherinoneunit
whichwasfunctionallyorganized.
-Medium-sizedfirmsorganizedmarketingandsalesinastrategicbusiness
unitalongwithacorporatemarketinggroup.
30

31. Choosing the Most Effective Structure
–Thelargestfirmsplacedmarketinginabusinessunitbutemployed
sharedsalesforceswhichsoldmorethanonebusinessunit’sproduct.
–Alternativelytheyplacedsalesandmarketingina“distribution
businessunit,”anentityessentiallydevoidofR&Dandproduction
capabilities.
•Wehavealreadydiscussedtheneedforcentralizationor
decentralizationinaprevioussection.
31
To conclude, the keys to find the ideal structure for the firms are simplicity,
cooperation, and exchange of information across the company, putting the
best people “closest to the action” and establishing systems for easy
knowledge sharing.

32. Reacting to Turbulent Markets
•Thee-businessesdoingwellareabletore-directtheirmarketing
veryquickly.ForexampleStaples.comchangesitsmarketing
campaignsseveraltimesadaybasedonfeedbackfromitswebsites.
•Sincesellingthroughthewebyieldsinstantfeedback,highlyflexible
organizationsandindividualsarerequiredforsuccess.
•Therefore“patching”isrecommendedfore-businesses.
•Patchingisthestrategicprocessbywhichcorporateexecutives
remapbusinessesinresponsetochangingmarketopportunities.
•Thisisdonebyadding,dividing,transferring,exitingorcombining
partsofbusinesses.
32

33. Reacting to Turbulent Markets
•Managersinhighlyturbulentmarketsdonotseeorganization
structureasstablebutastemporary.Theyarereadytomakemany
smallchangestokeeptheirbusinessesflexibleenoughtorespond
tochangingmarketconditions.
•Thesemanagerskeepbusinessunitssmallandmakechanges
quickly.Theyattempttogetthechangeapproximatelycorrectbut
theemphasisisonmovingquicklyratherthanhavingallthedetails
ofanorganizationchangeworkedout.
•Changingmarketconditionsrequiresorganizationstocreate
“specializedsubunitswithdifferingstructuralfeatures.”
33

34. Reacting to Turbulent Markets
•Patchingdoesnotworkwellinorganizationswithmanyshared
servicesorcross-divisionalcommitteesandsuccessdependsupon
clearbusiness-levelmeasurementsandconsistentcompanywide
compensation.
•Patchingisaresultofadetailedunderstandingofmarket
segmentationandthentheabilitytocreatenewproductsorservices
toaddresstheneedsofthesemarketsegments.
•Alsoimportanttosuccessofthisapproachispickingthecorrect
generalmanageranddevelopingadetailedplanforthefirst30to60
daysafterthepatchismade.Oftenitisnecessarytorewardand
recognizemanagerswhosebusinesseshavebeencutorrestructured.
34

35. When to Restructure
•Managersneedtoaskthefollowingquestionsinordertoknowwhen
torestructurethemarketingdepartment:
–Isthemarketingstructurecapableofimplementingtheplans?
–Doesthemarketingfocustheorganizationonprioritymarketsor
products?
–Aremanagerssuitablyempowered?
–Doesthefirmmeetitssalesandprofitobjectives?
–Istheorganizationrespondingtocustomerneedsorcompetitive
actions?
–Doesthemarketingdepartmentproducecreativebusinessstrategies
andplans?
35

36. When to Restructure
•Iftheanswertoanyofthesequestionsisanegative,theneitherthe
structureoftheorganizationiswrongorthestrategyiswrong.
•Eitheronecanbechanged,inordertoensuretheorganization’s
survivalinthelongrun.
•Beforerestructuring,amanagermustdeterminewhetherthe
structureistheproblemorwhetherthepeoplefillingthepositions.
•Reorganizationsarebynecessityverydisturbingandoftencause
productivitytoplummet.
•Soallotheralternativesshouldbereviewedbeforeanextensive
reorganizationisundertaken
36

37. Managing Change
•Continualtinkeringwiththestructureisnotanoptimumsolutionin
mostcases,becauseemployeeswillbecomeunsettledbythe
changes:itisprobablybettertobuildintherequireddegreeof
flexibilitywhenfirstdesigningthecorporatestructure.
•Ifstaffdonotsupportrequiredchanges,theyarelikelytosabotage
thechanges,throughindustrialactionorunionrepresentation.
•Themanagersshalladopttacticalalternativestoiprovethe
acceptanceofstructuralchanges.
37

38. The Future of Business Marketing
•Business-to-businessmarketingwill
bestronglyaffectedbythreemajor
trends–globalization,rapidly
changingtechnology,andincreased
visibility.
•ThesetrendscanbeseeninFigure
60.3
38
Figure60.3:MajortrendsaffectingB2Bmarketing
Source:Zimmerman,A.&Blythe,J.(2013)Businessto
BusinessMarketingManagementAglobalperspective

39. The Future of Business Marketing
•Globalizationismadepossibleinpartbyrapidlychanging
technologyandthesechangesintechnologymeasurablyincrease
thevisibilityofmarketingactions;andbecauseglobalizationexists,
companiesaremorevisibleaswell.
•Onecanmakethecasethateachofthesethreetrendswouldbe
weakerwithouttheother.
39

40. Globalization
•Thefourdriversofglobalizationare:
–Marketfactors–Productscanbedesignedtomeetneedsofcustomers
throughouttheworld.Inaddition,customersareexpectingbothhigher
qualityofserviceaswellascustomization.
–Costfactors–Costefficienciesandtheavoidanceofduplicationofeffortare
twoimportantdriversofglobalization.
–Environmentalfactors–Theremovalofbarrierstotradeandimproved
communicationsisalsodrivingfirmstowardseeingmarketsglobally.
–Competitivefactors–Whenacompetitorismarketingitsproductsinmany
nationsthroughouttheworldafirmmustseekglobalcompetitive
advantageratherthanjustnationaladvantage.
40

41. Globalization
•Recentdevelopmentscallintoquestionthecontinuedpaceof
globalization.Thetrendtowardglobaloutsourcinghaslimitations–
therearedrawbackstooutsourcing,andthereforethereisapointat
whichoutsourcingleadstopoorerperformance.
•Itisthusconcludedthatanycompanyhasanoptimallevelof
outsourcing:more,orless,willreduceperformance.
•Protectionistpressureisalsoseeninthedevelopedcountries
(especiallyinthewakeofthe2008financialcrisis).
•Thenew,moreaggressiveapproachesfromAsianandLatinAmerican
countriesmayslowthepaceofglobalizationconsiderably.
41

42. Globalization
•Shouldthispaceslow,thebusinessmarketingmanagerwillhaveto
recognizetheopportunitiessometradebarriersmayprovidefor
securingprotectedmarketsthroughintelligentselectionofthe
marketentrystrategy.
•Whileinthelongrunincreasingglobalizationmightmakemarketing
businessproductsaroundtheworldmoreeffective,awisemanager
willwatchthesetrendscarefullyandtakeadvantageofopportunities
whichpresentthemselves.
42

43. Rapidly Changing Technology
•Asecondimportanttrendisrapidlychangingtechnology,especiallyin
electronicsandtelecommunications.
•TheInternet,ofcourse,isthemostimportanttechnologicalevent.But
theadventofthesmartphone,fasterandlowercostcomputers,and
thecontinuingreductioninthesizeofcomponentsofeverykind,are
allcriticaltechnologicaladvances.
•Thesetechnologiesimprovecommunicationsandmanagementwithin
thefirmandwithsuppliersanddistributors.Theyalsoallowforhigher
qualityproductsandcustomizationtomeetcustomerneeds.
43

44. Rapidly Changing Technology
•Improvedtechnologynotonlymakesproductsbetterandaddsto
visibility,butitalsoprovidesmanymorevehiclesforcontactingthe
customer.
•Oneintriguingnewtrendisthatofwebcasting,sometimescalled
pushtechnology.
•Webcastinghasbeendefinedasawayofupdatingnewsorother
selectedinformationonacomputeruser’sdesktopthroughperiodic
transmissionovertheInternet.
•Thisisanewandmorepowerfulwaytosendinformationisusedby
B2Bmarketers.
44

45. Rapidly Changing Technology
•Onlineauctionsandexchangeshavereceivedsomeattentionlately,
asprovidingamodelforfutureB2Bdealings.
•Theseexchangesallowbuyerstosourceproductsatthelowest
prices,andtohaveaccesstoaverywiderangeofpotentialsuppliers.
•However,theexchangemodelforB2BtransactionsontheInternetis
flawed.
-First,theemphasisonobtainingbestpricerunscountertotherelationship
marketingparadigm.
-Second,exchangesofferlittletosupplierssincelowestbiddergetsthesale.
-Third,firmshaveverylittleunderstandingofneedsofthebuyersorsellers.
45

46. Social Networking
•Thehugegrowthinsocialnetworkingsites(Facebook,Twitter,
LinkedIn,etc.)duringthelastdecadehasopenedupmany
opportunitiesforpromotingconsumergoods.
•B2Bmarketershavebeenalittleslowerinaccessingthesenew
media,butarenowrealizingthepossibilitiesforcommunicating
throughsocialnetworks.
•Theslowtake-uprateofthenewmediainB2Bmarketsprobably
stemsfromthedifficultyofmeasuringreturnoninvestmentor
trackingsuccess.
46

47. Social Networking
•Currently there appear to be four basic strategies adopted by firms
seeking to exploit social networks explained in Table 60.3.
47
Table60.3:Socialmedia
strategies
Source:Zimmerman,A.&
Blythe,J.(2013)Businessto
Business Marketing
Management Aglobal
perspective

48. Increased Visibility
•Thereisnoquestionthatfirmsarenowbeingsubjectedtofargreater
visibility.
•Thegrowthinthenumberofmediaoutletscorrespondingtothe
growingnumberofinvestorshavemadebusinessapopularsubject
forfarmoreindividualsthaninthepast.
•Institutionsareresponding,providingfirmswiththeabilitytoshow
theirgoodintentions.
•Theweballowsfactsorrumorstospreadveryquicklyacrossthe
world.Firmsconcernedaboutreputationmanagementmonitorthe
webandareproactiveinprovidingcorrectiveinformation.
48

49. Product Development
•Theaccelerationoftheinternationalproductlifecyclemeansfirms
mustspeedupproductdevelopment.
•Inaddition,managementmustdesignforaglobalmarketwhen
movingnewproductsthroughthedevelopmentprocess.Thisdoes
notnecessarilymeancompletestandardization,becausetechnology
allowsforcustomizationevenfornarrowmarketsegments.
•Respondingtothechallengeoffasterdevelopmentrequirements,the
mostadvancedfirmshavedramaticallyreducedthetimetheyneed
tobringaproductfromtheideastagetocommercialization.
49

50. Product Development
•Thebasisofthisnewapproachisthewayproductandprocess
informationisusedthroughoutthedevelopmentcycle.
•Insteadofasequentialprocess,thesefirmshaveadoptedaflexible
approach.
•Byusingastandardproductdevelopmentapproachasmuchasone-
thirdofthetimeisspentdoingunnecessaryworkorwaitingfor
information.
•Tooptimizetheprocess,theteamdecidesonthemostimportant
informationitwillneedandattemptstogetthoseanswersasquickly
aspossible.
50

51. Product Development
•Anotherkeytothesuccessofthisprocessistheleader.
•Leadersoftheprocessarevitalsincetheymustdecidewhicharethe
mostimportantactivitiestheteamshouldundertakeandalsowhich
activitiesareunnecessary.
51

52. Postmodern Marketing
•IntheB2Barena,postmodernismcanexplaintheblurringof
boundariesbetweencompanies.
•Traditionalthinkinghasbeenthatonecompanyisabuyer,whilethe
otherisaseller.
•Thecurrenttrendtowardestablishinglong-termrelationships
betweenfirmsmeansthatsomecompaniesareinbuyer–seller
relationshipswhereasothershaveprogressedtothepointofbeing
joint-venturepartnersinestablishingavaluechain.
•Thisismuchmoreinaccordwithpostmodernviews.
52

53. Postmodern Marketing
•Boundariesarefurtherblurredbythefactthatthesamefirmsmay
collaborateinonemarketwhiletheycompeteinanother.
–Forexample,theFordGalaxy(Ford’sEuropeanmulti-purposevehicle)is
thesamevehicleastheSeatAlhambraandtheVolkswagenSharan.
Volkswagenmakeenginesforallthreemodels,andthecompanies
collaborateonthedesignofthiscarwhilecompetingin(forexample)
thecompactcarmarket.
•Noonefirmhastheabilitytofullycompeteinallmarkets–asa
result,smartmanagersarechoosingtheiropportunitiesforboth
cooperation(throughstrategicalliancesorotherarrangements)and
competition.
53

54. Value-based Marketing
•Startingfromthepremisethatthecentraltaskofmanagementisto
maximizeshareholdervalue,thetheoryofValue-basedMarketing
goesontolookathowthisaffectsmarketingthinkingandaction.
•Asdiscussedmaximizingshareholdervalueisnotthesameas
maximizingprofits.Shareholdervalueisaboutcreatingalong-term,
secure,andgrowinginvestment.
•Formarketers,theideathatthecompanyexiststoincrease
shareholdervaluemayseemtoflyinthefaceofthecustomer-
oriented,high-serviceapproach.
54

55. Value-based Marketing
•Infact,customerorientationdoesnotnecessarilymeanthatthe
companygivesthecustomerseverythingtheywant:itdoesmean
thatthecompanyensuresthatcustomersaresatisfiedandloyalin
ordertomaximizethelong-termsurvivalpotentialofthefirm.
•Traditionally,marketershavefocusedalmostexclusivelyonthe
customers,whileother(oftenmoresenior)managershavefocused
ontheshareholders.
•Marketingcanandwillfulfilltheobjectiveofmaximizingshareholder
valueoncemarketersacceptthatthecustomersandconsumersare
themeanstoanendratherthantheendinthemselves.
55

56. Value-based Marketing
•Muchofthevaluethatwillbe
addedtotheshareholders’
assetswillbethroughgrowth
inthebrandvalue.
•Thisisthekeyareawhich
marketersareabletoinfluence.
•Increasesinbrandvaluereveal
themselvesinfourways,as
showninTable60.4.
56
Table60.4:Aspectsofbrandvalue
Source:Zimmerman,A.&Blythe,J.(2013)Businessto
BusinessMarketingManagementAglobalperspective

57. The Twenty-first Century Marketplace
•IntheB2Barea,fourformativetrendshavebeenidentified.These
are:
–Themovefromsimpletocomplextransactions.Currently,transactionsmay
involveseveralcompaniesonthesupplysideandevenseveralcooperating
companiesonthepurchasingside,eachwantingsomethingdifferentfrom
thedeal.
–Themovefrommiddlemantospeculator.Asprofitmarginsaredrivendown
byintensifyingcompetition,theonlineexchangeswillneedtoconsider
speculatingintheproductsonofferonline.
57

58. The Twenty-first Century Marketplace
–Themovefromtransactionstosolutions.Creativecompaniescanusethe
Internet,andtheirrelationshipswiththerestofthevaluechain,tooffer
morethanjustaproduct.Integratedfirmscan(andwill)offertailored
solutionstotheircustomers’problems.
–Themovetowardsell-sideswaps.Ratherthangothroughtheprocedures
forsettingupabuy–selltransaction,somefirmsarenowusingtheInternet
toexchangeproductsorservices.
Forexample,thetruckingbusinessiswhichtrucksoftentravelemptyorwith
part-loadsisclearlyinefficient.Internetsitesnowexistwherecompanies,are
abletoexchangeloadstoensurethatthetrucksrunfull.Theseonlineswaps
areespeciallyimportantforsmalloperatorsenablingthemtocompetebetter.
58

59. Conclusion
•Inthismodule,wedescribedorganizationstructurealternatives,
anddiscussedthestrengthsandweaknessesofcentralizationversus
decentralization.
•Weexplainedtheadvantagesanddisadvantagesoftheproductor
marketmanagerformoforganizationanddiscussedthebenefits
anddrawbackstothematrixformoforganization.
•Thenweunderstoodtheconsiderationsinchoosingthemost
effectivestructure,explainedhowtoreacttoturbulentmarketsand
exploredwhentorestructurethemarketingdepartment.
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60. Conclusion
•Next,weunderstoodhowtomanageorganizationalchange.
•Wealsoexplainedthethreemajortrendsaffectingbusiness-to-
businessmarketinganddescribedsomeofthenewmarketing
approachesnowdevelopingasaresultofthosetrends
•Finally,weexplainedsomenewerthinkingwhichmaychangea
manager’sperspectiveonthefutureofmarketing.Theseincluded
productdevelopment,postmodernisminmarketing,value-based
marketingandthe21
st
centurymarketplace.
60

61. References
1.Kotabe,M.&Helsen,K.(2012)GlobalMarketingManagement,
WileyIndia(P.)Ltd.,FifthEdition.
2.Keegan,W.J.(2004)GlobalMarketingManagement,Pearson
Education,Inc.,SeventhEdition.
3.Zimmerman,A.&Blythe,J.(2013)BusinesstoBusinessMarketing
ManagementAglobalperspective,Routledge,SecondEdition.
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62. Thank You
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