GLOBAL RELATIONSHIP
MARKETING
Lecture 9: GLOBAL MARKETING NETWORKS
1
WEEK OF
LECTURE
SEMINAR
14.01.13
The origins and development of relationship
marketing
Outline of module the module handbook
and the assessment
Customer relationship management
Networks and relationships: Dingle Bay
Woodworking
28.01.13
Customers, communities and on line
relationships
CRM and banking in a global market
04.02.13
Customer retention, customer loyalty and
relationships
Product development: co-creation is here
11.02.13
Customer experience management and
relationships
Loyalty marketing
Internal relationships
Five experiential marketing campaigns and
relationships
Supplier relationships
Internal marketing in the hotel industry
Other external relationships
The Keiretsu and business supply networks
in Japan
Global marketing networks
BBC Worldwide and its global relationships
18.03.13
Market entry, relationships and the role of
the focal net
Assignment workshops\surgery
29.04.13
Hand in assignment
Hand in assignment
21.01.13
18.02.13
25.02.13
04.03.13
11.03.13
PLEASE NOTE: THE LECTURE WILL STILL TAKE PLACE DURING THE WEEK OF 18\03\13
I recommend you work individually on the task for next week on networking
2
AGENDA
• Understand the importance of
relationships and networks to the delivery
of an effective global marketing strategy
• Examine the nature of a firms relationships
in terms of cultural, technological , political
and social forces
• Consider the role of strategy in building
global networks and relationships
3
BAA Airports:
reviewing the six markets
• owns & runs airports in a way that seeks to
meet the needs of passengers and airlines while
at the same time providing an appropriate return
on investment
• BAA's two London airports, Heathrow and
Stansted, have helped to make London one of
the world's best connected cities
• Southampton airport is also run by BAA
• In Scotland BAA runs Edinburgh, and Glasgow.
4
• Identifying key groups in each market domain is
the first step in applying the six market model to
an organisation
Once the company has identified the groups for
each market domain it can then assess what level
& type of marketing emphasis
it gives to each segment
5
Building contractors,
Consultants,
Partner firms
i.e. shops hotels etc
Airlines
Passenger & Cargo
handlers
6
BAA SBUs
Existing satisfied
customers
Surveyors
Staff
Employment agencies
Graduates
Head-hunters
7
Shareholders
Business press
Government
8
BAA ALSO HAS TO MANAGE THESE SIX MARKETS AS
A NETWORK
A NETWORK
is the set of directly and indirectly connected relationships that form the network
context
The Network context is dynamic and unique to each firm
9
PLANNING FOR AND RUNNING
NETWORKS
New hotel partner
Internal restructuring & employee
concerns
Existing airline wants to change number of
flights
Business press critical of airports services
Shareholders want more dividend
payments
In discussions with new suppliers of
consumables for offices
Looking for building firms to submit new
specifications
Analysing new overseas market
operations
10
What flows along the links in the
network?
•
•
•
•
Power
Information
Money
Services
•
(Thoreli)
The competitive environment of firms
is undergoing a fundamental change.
Traditional markets are being
rapidly replaced by networks.
(Möller and Halinen)
11
A network needs to win
• a traditional perspective says international
marketing strategy is a global chess
game
• firms compete to win global market share
at each others expense
• a network perspective says strategy
is about building positions in global
networks
12
MANAGING INTERNATIONAL
NETWORKS
• BUILDING POSITIONS
• Firms must invest in developing its
position in the network
Positioning of the firm in the network becomes a matter of
as great strategic importance as positioning its product in
the market place (Thoreli)
13
BUILDING POSITIONS IN NETWORKS
• Levels of power & influence
•
•
•
•
•
The firms economic base
Its Technology
Its level of expertise
Level of trust
What advantages exist in each area that
can be used?
14
A set of relationships and networks
De - inking work sub contracted
Other customers
The Big Recycling Co
Contact with
Environmental
authorities
to assess regulations
Locate and assess customer
requirements
e.g. paper for photocopiers
Establish local collecting companies
Suppliers
Suppliers need informing of requirements
Adapted from Hakansson & Waluszewski
15
A BIGGER PICTURE…..
• COUNTRY SPECIFIC NETWORKS can
exist and impact on global relationship
marketing development s
16
PSYCHIC DIFFERENCE & networks
• Level of economic development
•
•
•
•
Legal and administrative systems
Language differences Business language
Industry structure
Competitive environment
• Cultural distance
• These can impact on the network
success
17
Pre -departure cultural training
•
•
•
•
•
•
•
•
for staff
Field experiences
Assignments to micro-cultures
Meetings with experienced international staff
On-the-job training
Role play
Programmed instruction
Behaviour modification methods
Expositive instruction
US managers in Mexico
Celelaya & Swift
18
But Is cultural difference on the wane?
•
•
•
•
•
LEVITT
Travel and technology erodes it
Homogenisation
USUNIER
Consumers construct the identity of global
brands on a local basis
19
GUANXI NETWORKS IN CHINA
GUNANXI INVOLVES USING PERSONAL RELATIONSHIPS
WITH FAMILY AND FRIENDS TO DO BUSINESS
RELATIONSHIP BUILDING – THE FIRST STAGE
MUTUAL EXPECTATION
INFORMATION EXCHANGES
TRUST
EXCHANGE
DEPENDEPENCE
BUILD NETWORK
POSITIONS
20
JAPAN - KEIRETSU NETWORKS
21
FROM SOVIET HIERARCHY TO RUSSIAN
NETWORK
22
SOUTH KOREA: CHAEBOL
• Literally means business group
• Several family run large Korean
centralised corporate groups
• Samsung Hyundi
• Developed initially to overcome corruption
• They cannot control private banks
23
EVERT GUMMESSON THE 30RS
FRAMEWORK
• MEGA RELATIONSHIPS
• RELATIONSHIPS THAT EXIST ABOVE
THE MARKET
• MEGA ALLIANCES EG NAFTA
• SOCIAL RELATIONSHIPS
• BETWEEN PEOPLE IN FIRMS
• POLITICAL POWER AND INFLUENCE
24
SUPRANATIONAL BODIES
BRITISH GOVERNMENT
FIRM A
OTHER NETWORK
ASSOCIATIONS
MALAYSIAN GOVERNMENT
FIRM B
FIRM C
FIRM D
25
WORLD TRADING ORGANISATION
• TRADE LIBERALISATION
• USE WTO RULES TO ACHEIVE
NATIONAL GOALS
• PROMOTE FREE TRADE
WORLD BANK IS ANOTHER EXAMPLE
AND REGIONAL TRADING BLOCS
are very important
26
27
The importance of a personal
business
NETWORK in global markets
Company B
Company A
Company C
Executives from
global companies
Obtain 2/3rds of
Information they
receive from
personal sources
(Keegan)
28
GLOBAL Relationship marketing
management is about…
• Having no master view of reality
• Flexibility and context, all networks and
relationships situations are unique
• 4 Ps are too simple:
• marketing is about networks and relationships
• The firm and its network of relationships need to
become learning organisations
29