Global Marketing Management:
What about: this article is about global economic changes and the impact of this on global marketing management. The article describes the mindset that should be possessed by marketing manager to handle the present situation and make decision.
Objective of the article: there are four main objectives of this article.
To review the important external forces influencing global marketing management now and in the future.
To consider the implications for global marketing operations.
To discuss the evolving global marketing management mindset.
To contemplate the likely changes in managerial decision orientation.
Main features: there are some micromarketing’s external forces that have impact on marketing managers’ global marketing plans, strategies and operations. These includes
- the coming on stream of Euro;
- the economic slowdown of Asian “tigers”;
- exporting economic difficulties;
- instantaneous flows of global capital;
- challenges to the IMF formula;
- new trading economic alignments and the World Trade Organization (WTO) ;
- interactive economic effects and global over capacity;
- the emergence of global conglomerates;
- the growth of internet,
- The World Wide Web (WWW) and e-commerce.
Marketing Management Implication:
Managers will confront the challenging tasks for product, company, industry and country decisions. This involves dealing with the uncertain interactions of complex macro forces, determining the likelihood of various events occurring, and determining the likelihood of various events occurring and deciding what the effects will be on the company. New guidelines and approaches will need to be developed and tested. Marketer will find the situation confusing and risky. In the future, global marketing managers can count on confronting market situations characterized by greater risk and uncertainty in decision making. An unheralded transparency of global marketing operations will exist. The tempo and pace of marketing management decisions and operation will quicken. National economies around the world will continue to become more closely interconnected and intertwined. Economic development in one or a few countries will have more direct and immediate impact on markets around the world. Marketing manager will have to give increasing attention to company-specific implications of WTO ruling and issues of IMF and G7, tax, tariff, quota, trade mission, government actions and so forth.
New Global Marketing Management Mindset:
Marketing managers will require new mindset to deal effectively with unexpected, unstructured, less predictable marketing situations. Management attention will be directed to define, understanding, and communicating core company values, vision, and mission. This will provide the direction necessary to help managers deal with turbulent marketing situations, create change, foster innovation, and make more risky decision. Company will do what they can do better.. Straight projection will be tough. Global risk-reward situation will be nonlinear. So contingency planning to deal with it will be critical. Benchmarking will be needed which will focuses attention on meeting the trusts of the most effective competitors will be popular approach.
A twin focus must be brought into play that incorporates attention to satisfy existing customers while continually seeking new ones.
Changing Decision Making Orientations:
The consequences of micromarketing external forces and their global marketing implications are reflected in the changing management mindset. Decision focuses on different aspect are described below:
Decision focus of global marketing management will shift from more stable environment to more turbulent environment and mechanistic approaches will be replaced by system or organic approaches.
Management decision will be directed from national perspective to global perspective. External focus will be more important than internal focus. Creative thinking will be needed than traditional thinking. Risk taking by managers will take place than risk aversion. Problem prevention will get more attention than problem solving. Future facts/anticipation will be more important than hard data/facts.
Cross-impact analysis will become a more important tool for dealing with uncertain interactions among complex forces. The managerial mindset will have to grasp the big picture, and move far beyond benchmarking. This will lead to changes in decision making orientations, including a shift from relatively stable environments and mechanistic management approaches to more turbulent environments and systemic management approach and a shift from hard facts for solving problems to virtual facts for problem prevention.