1. Svend Hollensen
GLOBAL MARKETING
5th Edition
How to Develop a profitable Global
Marketing Strategy
CIM Marketing Summit
The Cyprus Institute of Marketing, 20.04.2013

2. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
How to Develop a profitable Global
Marketing Strategy
Agenda:
1.Introduction (about myself, International
environment, Global Marketing Process etc.)
2. Glocalization strategy (B2B + B2C)
3. Global Account Management (GAM) (B2B –
seen from supplier)

3. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Global Marketing Strategy
Cyprus Institute of Marketing, 17.04.2013
By: Svend Hollensen, svend@sam.sdu.dk

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11. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
It nearly came to the situation that the US Government even
had to print new 1 dollar notes with a desperate George
Washington ………

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14. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
The new world order (US loosing its
leadership in the world economy) –
provides new opportunities for
emerging regions to position
themselves in the long-term
development of the world economy

15. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Some background information
about myself, my university and my
books

16. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Here I live
SDU

17. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
University of Southern Denmark
Sønderborg

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19. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
in 1998 2001 in 2004
4th ed. cam
in 20075th ed. came
in 2010

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21. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
08-10-2013 21
Global roll-out
of Concepts /
High speed
Global Low-cost
Production and
Selling
Low
complexity
Regional
and local market
penetration
Culturally Close
to Consumer
Flexible Response
to local customer
needsGLOCAL
Global Marketing Strategies
Globalization
(Standardization)
Localization
(Differentiation)
100% 100%

22. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Persil Black (for Europe) Persil Abaya (for women in Arabic
World)
2011:
Henkel

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Global Account
Management
(GAM)

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28. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Three key reasons for increasing
importance of CRM/KAM and GAM:
1.Internationalization / globalization of key
customers
2.Worldwide consolidation of industries
3.Increasing use of outsourcing on the
customer side

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1. Reason for GAM:
Internationalization of customers:
- An example from the wind
turbine industry

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2. Reason for GAM:
Consolidation of Industries
= Fewer customers in the market
for the supplier to approach

33. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Consolidation takes place everywhere and not only in the pharmaceutical industry ……..
Kilde: www.ims-global.com/.../ news_story_010425.htm

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3. Reason for GAM:
Outsourcing of activities
= The 1st tier suppliers will get
more business from the key
global customers

36. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
R&D Production Marketing Sales and
services
Support functions: - Firm infrastructure
- Human Ressource Man.
Support functions: - Technology development
- Procurement (buying)
Upstream Downstream
- Product dev.
- Design
- Petents
- Product features
- Engineering
- Prod. capaciy
- Component parts
- Assembly
- Material flow
- Quality Man.
- Marketing info.
- Product
- Price
- Distribution
- Communication
- Branding
- Sales force
- Logistics
- Terrms of sales
- Inventory
- Payment
-Customer
service
Suppliers
Cus-
tomers
Value chain of focal firm:

37. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Aluminium
Prod
End-consumers
First tier:
B2B B2C
Suppliers: Customers:
Upstream Downstream
Focal firm:
Braun (Gillette)
Second tier:
Nylon prod. /
DuPont
Brushhead
Oil / Refiner
Chemicals /
Plastic molder
Plast parts
Electric motor
Wires / Plugs /
Timer / chip /
Printed circuit
Rechargeable
Battery pack
B2BB2B B2B
Rubber / Metal
/ Wire producer
Chemicals /
Producer of
NiCd batteries
Mass Merchan-
disers:
Marks&Spencer
Sainsbury
Tesco, B&Q etc.
Second tier:First tier:
Electrical retail
chains:
Dixons
Curry
Comet
Electrical
wholesaler
Independent
electrical
stores
Internet:
Amazon.com
Dentist.net
etc.
’Internal’ value chain:

38. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Figure: The trend towards increasing outsourcing among European car manufacturers
Source: Focus Money, Wertschöpfung von Autozuliefern14. Juli, p. 13

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Seller Buyer

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Development of GAM

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Customer (GA) HQ
Supplier HQ
……..Country
A
Country
B
Country
C
Country
N
Traditional HQ-HQ negotiations
with central distribution
Centralized coordination of the GAM relationship:
(GAM relationship with relative high customer power):
Customer (GA) HQ

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……..
……..
Decentralizedandlocal
adaptationofGAM
Supplier HQ
Customer (GA) HQ
Local
Coordina-
tion
Local
Coordina-
tion
Local
Coordina-
tion
Country
A
Country
A
Country
B
Country
B
Country
C
Country
C
Country
N
Country
N
Mix - coordination af GAM-relation:

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……..
……..
Decentralizedandlocal
adaptationofGAM
Supplier HQ
Customer (GA) HQ
Local
Coordina-
tion
Local
Coordina-
tion
Local
Coordina-
tion
Country
A
Country
A
Country
B
Country
B
Country
C
Country
C
Country
N
Country
N
Decentralized coordination of
the GAM relationship:

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One example of centralized negotiation of GAM:

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(DC = Distribution Centres)

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Customer (GA) HQ
Supplier HQ
……..Country
A
Country
B
Country
C
Country
N
Traditional HQ-HQ negotiations
with decentralized distribution
GAM relationship with relative high customer power:
DC logistics DC logistics

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Production units

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Global Marketing of:
= GAM

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53. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Outside Europe: Adaptation
of ‘Global Marketing’
Russia – pure translation
India – Co-authorship
Latin America – Co-authorship
Europe:
China – pure translation

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Textbooks for courses in ”International Marketing”:
• Fragmented market
• No clear market leader
• Intensive competition on the publisher level

55. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Textbooks for courses in ”International Marketing”:
High degree of competition between textbooks on publisher level:
and many more ..

56. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Textbooks for courses in ”International Marketing”:
High degree of internal competition:

57. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
= The wold’s biggest
publisher within business
literature for uni. courses
Reps in UK
(home)
Reps in
Benelux
Reps in
Skandinavia
Reps in
Eastern
Europe
Reps in
Africa and
Asia
Reps in
North
America
Business schools = end customers
Lecturers Students
Lecturers Students
Lecturers Students
Lecturers Students
Lecturers Students
Lecturers Students
Supplier:
R & D
Product development
Customer:
Production & Marketing
GAM -relation
HQ in UK (London)
What to do as a supplier with small relative power?

58. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Recommendations for the supplier in GAM-relationships:
1. Try to increase the level of your ’value’, which is perceived by the
customer, e.g. by suggesting an extension of your product
solution, for example by offering special after-sales-services
2. Try to offset the customer’s central buying power by
communicating directly to the local end-customers. In this
connection, local partners (agents etc.) can be of great help
3. Try to take advantage of local differences in the decision
processes of the global customer organization. In a global
consolidation process with many M&As it is hard for the
customer HQs to implement central negotiation processes. They
have to decentralize and this provides opportunities for the
supplier to achieve good local deals.

59. Svend Hollensen, CIM Marketing Summit, Cyprus Institute of Marketing, 20.04.2013
Thank you !