Abstract
This chapter focuses on the process of designing global marketing strategies. Specifically, we take an in-depth view at three key choices every company has to make when developing a global marketing strategy, namely, “where to compete,” “how to compete,” and “what we need to compete.” We also briefly discuss the “organizational purpose” as a central boundary condition that drives these three questions and comment on the “management system” that supports and monitors strategic choices. The “where to compete” section deals with product, customer, distribution, and value chain choices within a selected geographic market. In terms of “how to compete,” we discuss the merits of alternative competitive strategies, such as low cost, differentiation, or a combination of both. Next, the “what we need to compete” section focuses on the resources and capabilities that are required to deliver the strategic choices of a company and discusses one of the most influential approaches to corporate strategy, namely, the Resource Based View of the firm. We finish with some remarks on the role of corporate management systems, which support and monitor strategic choices. In this context, we also point out that the availability of real-time metrics has made measuring the impact of marketing strategies easier in the era of digital marketing.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Lafley and Martin (2013).
- 2.
Drucker (2012, p. 31).
- 3.
Amazon (n.d.).
- 4.
IKEA (n.d.).
- 5.
The Economist (2019, p. 15).
- 6.
The Economist (2019, p. 16).
- 7.
Friedman (1970, p. 126).
- 8.
Freeman (1984).
- 9.
Szöcs and Schlegelmilch (2020).
- 10.
Porter (1979).
- 11.
Baum (2020).
- 12.
Alazraki (2020).
- 13.
Caterpillar (n.d.).
- 14.
Weise (2019).
- 15.
Fares (2019).
- 16.
Blazyte (2020).
- 17.
GMA (n.d.).
- 18.
Pfeiffer (2018).
- 19.
Gerlock (2018).
- 20.
Dongoski (2020).
- 21.
Porter (1985).
- 22.
Keller (2013).
- 23.
Finnerty (2018).
- 24.
Smithers (2011).
- 25.
Voigt et al. (2017).
- 26.
Lush (2018).
- 27.
Lush (2019).
- 28.
Aronczyk (2013).
- 29.
Lush (2006).
- 30.
Aronczyk (2013).
- 31.
Lush (2018).
- 32.
Campbell-Hunt (2000).
- 33.
Lafley and Martin (2013, p. 85).
- 34.
Lafley and Martin (2013).
- 35.
Ge and Ding (2008).
- 36.
Schlegelmilch (2019).
- 37.
- 38.
Porter (1985).
- 39.
- 40.
Barney and Hesterley (2012).
- 41.
Miles and Snow (1978).
- 42.
Treacy and Wiersema (2007).
- 43.
Lafley and Martin (2013, p. 88).
- 44.
Barney (1991).
- 45.
Wernerfelt (1984).
- 46.
Silva et al. (2019).
- 47.
Lafley and Martin (2013 p. 139).
- 48.
- 49.
Kim et al. (2002).
References
Alazraki, M. (2020, March 19). Popular products you can’t find outside America. 24/7 Wall St., Accessed June 19, 2020, from https://247wallst.com/special-report/2020/03/19/products-you-cant-find-outside-of-america/3/.
Amazon. (n.d.). Homepage. Accessed June 17, 2020, from https://www.amazon.com.
Aronczyk, M. (2013). Market(ing) Activism: Lush cosmetics, ethical oil, and the self-mediation of protest. JOMEC Journal, 4, 1–21.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Barney, J. B., & Hesterley, W. S. (2012). Strategic management and competitive advantage: Concepts (4th ed.). Pearson Prentice Hall.
Baum, C. (2020, April 20). Royal flush: How toilet paper shortages fueled an interest in high-end ‘smart toilets.’ The Guardian. Accessed June 19, 2020, from https://www.theguardian.com/lifeandstyle/2020/apr/20/royal-flush-how-toilet-paper-shortages-fuelled-an-interest-in-high-end-smart-toilets.
Blazyte, A. (2020, July 2). E-commerce in China, Statista. Accessed August 7, 2020, from https://www.statista.com/topics/1007/e-commerce-in-china/#dossierSummary__chapter3.
Campbell-Hunt, C. (2000). What have we learned about generic competitive strategy? A meta-analysis. Strategic Management Journal, 21(2), 127–154.
Caterpillar. (n.d.). Homepage. Accessed June 19, 2020, from https://www.caterpillar.com/en.html.
Chakraborty, S., & Philip, T. (1996). Vendor development strategies. International Journal of Operations & Production Management, 16(10), 54–66.
Dongoski, R. (2020, Feb. 11). How vertical integration is impacting food and agribusiness. Ernst & Young. Accessed June 21, 2020, from https://www.ey.com/en_us/consumer-products-retail/how-vertical-integration-is-impacting-food-and-agribusiness.
Drucker, P. F. (2012). The practice of management. Harper & Row.
Fares, M. (2019, July 23). Alibaba welcomes U.S. small business to sell globally on its platform. Technology News. Accessed June 20, 2020, from https://www.reuters.com/article/us-tech-alibaba-usa/alibaba-welcomes-u-s-small-businesses-to-sell-globally-on-its-platform-idUSKCN1UI1DO.
Finnerty, J. (2018, January 12). ‘Safest car in the world’ scores nearly perfectly in crash test. The Sun. Accessed June 24, 2020, from https://nypost.com/2018/01/12/safest-car-in-the-world-scored-nearly-perfect-in-crash-test.
Flores, L. (2013). How to measure digital marketing: metrics for assessing impact and designing success. Springer.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Cambridge University Press.
Friedman, M. (1970, September 13). The social responsibility of business is to increase its profits. New York Times, 13, 32–33, 122–126.
Ge, G. L., & Ding, D. Z. (2008). A strategic analysis of surging Chinese manufacturers: The case of Galanz. Asia Pacific Journal of Management, 25(4), 667–683.
Gerlock, G. (2018, October 22). Costco builds Nebraska supply chain for its $5 Rotisserie chickens. National Public Radio (NPR). Accessed June 21, 2020, from https://www.npr.org/2018/10/22/659561091/costco-builds-nebraska-supply-chain-for-its-5-rotisserie-chickens?t=1592748620528.
GMA. (n.d.). How to sell on Tmall Global – The leading Chinese cross-border e-commerce platform. Accessed June 20, 2020, from https://www.marketingtochina.com/complete-guide-to-tmall-global-the-leading-chinese-cross-border-e-commerce-platform.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
IKEA. (n.d.). Homepage. Accessed June 17, 2020, from https://about.ikea.com/en.
Järvinen, J., & Karjaluoto, H. (2015). The use of web analytics for digital marketing performance measurement. Industrial Marketing Management, 50(Oct.), 117–127.
Keller, K. L. (2013). Strategic brand management: Building, measuring, and managing brand equity (4th ed.). Pearson.
Kim, B., Barua, A., & Whinston, A. B. (2002). Virtual field experiments for a digital economy: a new research methodology for exploring an information economy. Decision Support Systems, 32(3), 215–231.
Lafley, A. G., & Martin, R. L. (2013). Playing to win: How strategy really works. Harvard Business Review Press.
Lush. (2006, December 20). There’s a funny smell around here! [Video]. YouTube. Accessed July 26, from https://www.youtube.com/watch?v=V9hE-wjNJOU.
Lush. (2018). The Lush Ethical Charter. Accessed July 26, 2020 from https://uk.lush.com/article/lush-ethical-charter.
Lush. (2019, December 31). A Lush year in review 2019 [Video]. YouTube. Accessed July 26, 2020 from https://www.youtube.com/watch?v=_AMrJRQDPjk&t=148s.
Miles, R. E., & Snow, C. C. (1978). Organizational strategy, structure and process. McGraw-Hill.
Miller, A., & Dess, G. G. (1993). Assessing Porter’s (1980) model in terms of its generalizability, accuracy and simplicity. Journal of Management Studies, 30(4), 553–585.
Murray, A. I. (1988). A contingency view of Porter’s “generic strategies”. Academy of Management Review, 13(3), 390–400.
Pfeiffer, E. (2018, June 14). Walmart milk processing plant opens in Fort Wayne. Hoosier AG Today. Accessed June 21, 2020, from https://www.hoosieragtoday.com/walmart-milk-processing-plant-opens-fort-wayne.
Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, 57(2), 137–145.
Porter, M. E. (1985). Competitive Advantage. The Free Press.
Schlegelmilch, B. B. (2019). Expanding Midea’s international business: Own brand manufacturing (OBM) a strategic priority [Case study]. WU Vienna University of Economics and Business, Institute for International Marketing Management.
Silva, A. T. C. D., Gohr, C. F., & Santos, L. C. (2019). Lean production from the perspective of the resource-based view: a study in an organization in the footwear industry. Scielo Analytics, 26(2): e2480. Accessed June 7, 2020, from https://www.scielo.br/scielo.php?pid=S0104-530X2019000200216&script=sci_arttext&tlng=en.
Smithers, R. (2011, November 25). Store wars: The body shop and lush. The Guardian. Accessed July 26, from https://www.theguardian.com/money/poll/2011/nov/25/store-wars-body-shop-lush.
Szöcs, I., & Schlegelmilch, B. B. (2020). Business success revisited: What constitutes business success. In B. B. Schlegelmilch & I. Szöcs (Eds.), Rethinking business responsibility in a global context (pp. 33–44). Springer.
The Economist. (2019, August 22). What are companies for? Big business is beginning to accept broader social responsibilities. The Economist Online. Accessed June 17, 2020, from https://www.economist.com/briefing/2019/08/22/big-business-is-beginning-to-accept-broader-social-responsibilities.
Treacy, M., & Wiersema, F. (2007). The discipline of market leaders: Choose your customers, narrow your focus, dominate your market. Basic Books.
Voigt, K. I., Buliga, O., & Michl, K. (2017). Pure Beauty: The case of the Body Shop. In Business model pioneers. Management for professionals. Springer.
Weise, K. (2019, April 18). Amazon gives up on Chinese domestic shopping Business. The New York Times. Accessed June 21, 2020, from https://www.nytimes.com/2019/04/18/technology/amazon-china.html.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal., 5(2), 171–180.
White, R. E. (1986). Generic business strategies, organizational context, and performance: An empirical investigation. Strategic Management Journal, 7(3), 217–231.
Wright, P., Kroll, M., Tu, H., & Helms, M. (1991). Generic strategies and business performance: An empirical study of the screw machine products industry. British Journal of Management, 2(1), 57–65.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2022 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Schlegelmilch, B.B. (2022). Steps in Developing Global Marketing Strategies. In: Global Marketing Strategy. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-030-90665-8_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-90665-8_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-90664-1
Online ISBN: 978-3-030-90665-8
eBook Packages: Business and ManagementBusiness and Management (R0)