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FTM482 Chapter 1

FTM482 Chapter 1 - FTM482 Chapter 1 INTRODUCTION Marketing...

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FTM482 Chapter 1 INTRODUCTION: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in a way that benefit the organization and its stakeholders. Marketing activities center on an organization’s efforts to satisfy customer wants and needs with products and services that offer competitive value. Global Marketing focuses its resources and competencies on global market opportunities and threats. A fundamental difference between regular marketing and global marketing is the scope of activities outside the home-country market. The scope issue can be conceptualized in terms of the familiar product/market matrix of growth strategies (below) Market development strategy: this involves seeking new customers by introducing existing products or services into new geographical markets. (ex. Wal-Mart expands into Guatemala) Global marketing may also take the form of diversification strategy in which a company creates new products or services and introduces them into new geographical markets. PRINCIPLES OF MARKETING: A REVIEW Decisions at every stage, from idea conception to support after the sale, should be assessed in terms of their ability to create value for customers. The Value Equation: VALUE=Benefits/Price (money, time, effort, etc.) Value, as the customer perceives it, can be increased in 2 basic ways: marketers can offer customer an improved bundle of benefits or lower prices (or both!). Marketers may strive to improve the product itself, to design new channels of distribution, to create better communication strategies, or a combo of all three. Marketers may also seek to increase value by finding ways to cut costs and prices. COMPETIVIVE ADVANTAGE, GLOBALIZATION, and GLOBAL INDUSTRIES
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When a company succeeds in creating more value for customers than its competitors, that company is said to have a competitive advantage in an industry. Competitive advantage is measure relative to rivals in a given industry. The transformation of formerly local or national industries into global ones is part of a broader process of globalization , which Thomas L. Friedman defines as: Globalization is the inexorable integration of markets, nation-states, and technologies to a degree never witnessed before-in a way that is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper and cheaper then ever before. Is there more to a global industry than simply “global competition?” Definitely. Michael Porter says global industry is one in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale. Put another way, an industry is global to the extent that a company’s industry position in one country in interdependent with its industry position in other counties. Achieving competitive advantage in a global industry requires executives and managers
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FTM482 Chapter 1 - FTM482 Chapter 1 INTRODUCTION Marketing...

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