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The marketing challenge of Europe 1992
BOOKS FOR MANAGERS
Books for Managers The Marketing Challenge of Europe 1992 by JOHN A. QUELCH, ROBERT D. BUZZELL and ERIC R. SALAMA Addison- Wesley, 1992, $22.50 ‘In Western Europe there are now only small countries - those that know it and those that do not know it yet. ’ (Theo Lefevre, Prime Minister of Belgium, 1963.) ‘Europe stands at tbe crossroads. We either go ahead - with resolution and determination or we drop back into mediocrity. (EC White Paper or the Com.pletion of the Internal Market, 1985.)
’
So begins this important and stimulating book on the business implications of European integration. It is a book not only for marketing professionals but for CEOs, general managers, managers with international business responsibilities and for business students concerned with European and international issues. This edition updates last year’s The Marketing Challenge of 1992 by the same authors. The addition of ‘Europe’ in the title serves not only to inform those doubters ignorant of what ‘ 1992’ may mean but also a new chapter on Eastern Europe, given the phenomenal changes which have occurred since the material was prepared in 1989/90. There are a number of books on the regulatory and economic aspects of the ‘ 1992’ programme but this is one of the few to consider the business implications through roughly onethird text and two-thirds case studies. The text is lively and informative and the cases all recent (i.e. 1989) and truly transEuropean (i.e. not solely single country examples). The cases are mostly strategic in nature and transcend a narrow definition of
marketing - they are all broadly of the ‘what should we be doing in Europe?’ variety which is a critical question facing most international, and European national, businesses. As Europeans it is salutory for us to note that the material largely emanates from Harvard Business School (where Quelch and Buuell are based) and that only four of the 17 case authors are based in Europe where, oh, where is the next generation of true trans-European or pan-European sources produced within Europe? The book is divided into three parts: Part 1 (Ch. l-3): Overview scene setting; definitions; prospects; marketing implications. Part 2 (Ch. 4-12): Competing in the integrated EC market - nine cases spanning consumer, industrial and service sectors. Part 3 (Ch. 13-14): Conclusions - Eastern Europe; action agenda for 1992. In Part 1 the authors review what the internal market entails; prospects for the future and what the marketing implications are. The section headings reveal the authors’ approachable and practical style: ‘What is the internal market?’ ‘new procedures have accelerated the decision making . . . but a lack of political will has slowed it down . . . and companies will find it bard to exploit the changes. ’ ‘What will tbe Europe of tbe 1990s look like . . . a free trade area or sometbing more than that? . . a fortress Europe? . . . a two-tier Europe?’ The authors conclude (wisely) that there is no universal scenario - it all depends:
EUROPEAN MANAGEMENT JOURNAL Vo19 No 2 June 1991
‘It is in the face of the uncertainty of impending radical changes in the structure of European society and of tbe markets in which they operate that companies are having to devise appropriate strategies. And while generalizations may be of help, those strategies will have to vary considerably across companies, sectors and countries. ’ Chapter 3 (along with Chapter 14, An action agenda) is one of the most useful as it addresses the marketing implications of the 1992 programme. It looks at market integration and industry consolidation (mergers and acquisitions, alliances, customer and competition concentration); marketing programmes (or ‘programs’ - this is a US text after all) - i.e. customer behaviour and the 4Ps, product, price, distribution and communications; and finally, marketing organization. Part 2 accounts for twothirds of the book covering nine case studies which are all broadly ‘marketing strategy’. Different sectors are represented with three industrial, two services, two consumer durable and two consumer/ retail. They are all recent (i.e. 1989) and they mostly cover Europe-wide issues rather than single-country examples. The cases are listed overleaf. The authors provide a very short commentary at the end of each case summarizing the issues and at times presenting their interpretation/views. Part 3 has been adapted to include a chapter on Eastern Europe which gives a short reference to Eastern Europe and the. 1992 Program and then addresses five key questions: 1. 2.
which countries - a ‘sketch’ of each country is given: which products - rather brief; 219
BOOKS FOR MANAGERS
1. Market potential 2. Defending global leadership 3. Strategic alliances strategies 4. Product-market 5. Niche identification 6. Managing a product line 7. Marketing 8. Expanding distribution forms marketing 9. Pan-European organization
3. 4. 5.
Product/sector
Cigna
Insurance
Nokia-Mobira Biokit Chloride Canadian Bank Nissan Del Curto
Mobile telephones Biotechnology Emergency road lighting Banking Automobiles Fresh fruit
FNAC
Retail (leisure
Volvo Trucks
Autos/trucks
company form - export, licence, joint venture, etc.; timing - enter now or wait and see; organization - and East-West trade and USA-Europe.
The final chapter is a very useful, short ‘action agenda’ for managers addressing the 1992 question, including checklists and the results of a small survey on 1992 issues from 160 respondents on Harvard executive programmes. Their recommended steps are: assess likely 1992 impact on your specific industry; ensure adequate EC representation (Brussels and Ke) capitals); reassess strategic options (for EC and non-EC based companies for a pan-European versus single country focus); reformulate marketing programs (the 4Ps) and organization. Overall, this book is targeted more to a USA (or non-European) audience to explain what ‘ 1992’ means and to assess the business and marketing implications through practical steps and case illustrations. Some sections are highly prescriptive and useful (notably chapters 3 and 14) and the cases are varied, recent and excellent. The descriptive chapters (1, 2 and 13) are well written and if the new chapter on Eastern Europe doesn’t seem quite up to the level of the others it is still informative and a helpful addition. 220
Marketing Tourism Places
Company
products)
It comes highly recommended, from Ted Levitt himself, former editor of the Harvard Business Review and global marketing guru: ‘this important book is for business everywhere. Its thoroughly informed and carefully reasoned anai_ysis of Europe ‘s accelerating economic integratiorr compels corporations everywhere to be attentille to their prospects and their perils, to see bow new competitive forces are shaping what they can and must do, regardless of their national origins, either inside or outside of Europe. ’ I find the book the best in its (rather unique) category and recommend it as a core text on the pan-European marketing MBA course run at EAP, European School of Management. It is at its best in explaining in a practical way the business implications of 1992 and their impact on marketing strategies. We need more texts of this calibre perhaps linking the text and cases rather more, giving more conceptual frameworks as to how to think about European marketing and going deeper into the ‘how to’ of marketing operations and organization as well as marketing strategy. I recommend this book thoroughly to anyone concerned with the business and marketing implications of the Single Market. C. Halliburton International Director of Studies G Professor of Marketing, EAP, European School of Management
Edited by GREGORY ASHWORTH and BRIAN GOODALL Routledge, London and New York, 1990, 248 pages, 530 This book is the result of a workshop centred around the theme ‘Selling Tourism Destinations’ which was held in the Netherlands in 1988. The workshop was organized by the Geographical Institutes of the Universities of Groningen (the Netherlands) and Reading (the United Kingdom). The workshop contributions were revised to take into account the discussions that took place and have been gathered together in this volume. Tourists are becoming increasingly discerning in their choice of holidays, in terms of both destinations and activities, and many destinations are competing to attract potential tourists. In order to encourage tourists to visit a destination, the destination’s place product must be marketed effectively. This book explores how destinations invest increasing amounts of time and money into developing and promoting their products. Places are marketed by both private and public sector organizations, but it is the emphasis of this book on the selling of tourist destinations by public agencies which differentiates it from the more usual texts. There are 16 contributors to the book including the editors, and apart from one exception they all come from academic institutes. The dominant geography and marketing interests of the contributors are reflected in the approach adopted in the book. The chapters are organized so that they progress from theoretical considerations through the shaping of the destination product to the organizations involved in selling such places. The first chapter examines the implications of public local authorities adopting a marketing philosophy for managing destinations. Various theoretical considerations which follow from regarding a tourism destination as
EUROPEAN MANAGEMENT JOURNAL Vol9
No 2 June 1999:
Books for Managers The Marketing Challenge of Europe 1992 by JOHN A. QUELCH, ROBERT D. BUZZELL and ERIC R. SALAMA Addison- Wesley, 1992, $22.50 ‘In Western Europe there are now only small countries - those that know it and those that do not know it yet. ’ (Theo Lefevre, Prime Minister of Belgium, 1963.) ‘Europe stands at tbe crossroads. We either go ahead - with resolution and determination or we drop back into mediocrity. (EC White Paper or the Com.pletion of the Internal Market, 1985.)
’
So begins this important and stimulating book on the business implications of European integration. It is a book not only for marketing professionals but for CEOs, general managers, managers with international business responsibilities and for business students concerned with European and international issues. This edition updates last year’s The Marketing Challenge of 1992 by the same authors. The addition of ‘Europe’ in the title serves not only to inform those doubters ignorant of what ‘ 1992’ may mean but also a new chapter on Eastern Europe, given the phenomenal changes which have occurred since the material was prepared in 1989/90. There are a number of books on the regulatory and economic aspects of the ‘ 1992’ programme but this is one of the few to consider the business implications through roughly onethird text and two-thirds case studies. The text is lively and informative and the cases all recent (i.e. 1989) and truly transEuropean (i.e. not solely single country examples). The cases are mostly strategic in nature and transcend a narrow definition of
marketing - they are all broadly of the ‘what should we be doing in Europe?’ variety which is a critical question facing most international, and European national, businesses. As Europeans it is salutory for us to note that the material largely emanates from Harvard Business School (where Quelch and Buuell are based) and that only four of the 17 case authors are based in Europe where, oh, where is the next generation of true trans-European or pan-European sources produced within Europe? The book is divided into three parts: Part 1 (Ch. l-3): Overview scene setting; definitions; prospects; marketing implications. Part 2 (Ch. 4-12): Competing in the integrated EC market - nine cases spanning consumer, industrial and service sectors. Part 3 (Ch. 13-14): Conclusions - Eastern Europe; action agenda for 1992. In Part 1 the authors review what the internal market entails; prospects for the future and what the marketing implications are. The section headings reveal the authors’ approachable and practical style: ‘What is the internal market?’ ‘new procedures have accelerated the decision making . . . but a lack of political will has slowed it down . . . and companies will find it bard to exploit the changes. ’ ‘What will tbe Europe of tbe 1990s look like . . . a free trade area or sometbing more than that? . . a fortress Europe? . . . a two-tier Europe?’ The authors conclude (wisely) that there is no universal scenario - it all depends:
EUROPEAN MANAGEMENT JOURNAL Vo19 No 2 June 1991
‘It is in the face of the uncertainty of impending radical changes in the structure of European society and of tbe markets in which they operate that companies are having to devise appropriate strategies. And while generalizations may be of help, those strategies will have to vary considerably across companies, sectors and countries. ’ Chapter 3 (along with Chapter 14, An action agenda) is one of the most useful as it addresses the marketing implications of the 1992 programme. It looks at market integration and industry consolidation (mergers and acquisitions, alliances, customer and competition concentration); marketing programmes (or ‘programs’ - this is a US text after all) - i.e. customer behaviour and the 4Ps, product, price, distribution and communications; and finally, marketing organization. Part 2 accounts for twothirds of the book covering nine case studies which are all broadly ‘marketing strategy’. Different sectors are represented with three industrial, two services, two consumer durable and two consumer/ retail. They are all recent (i.e. 1989) and they mostly cover Europe-wide issues rather than single-country examples. The cases are listed overleaf. The authors provide a very short commentary at the end of each case summarizing the issues and at times presenting their interpretation/views. Part 3 has been adapted to include a chapter on Eastern Europe which gives a short reference to Eastern Europe and the. 1992 Program and then addresses five key questions: 1. 2.
which countries - a ‘sketch’ of each country is given: which products - rather brief; 219
BOOKS FOR MANAGERS
1. Market potential 2. Defending global leadership 3. Strategic alliances strategies 4. Product-market 5. Niche identification 6. Managing a product line 7. Marketing 8. Expanding distribution forms marketing 9. Pan-European organization
3. 4. 5.
Product/sector
Cigna
Insurance
Nokia-Mobira Biokit Chloride Canadian Bank Nissan Del Curto
Mobile telephones Biotechnology Emergency road lighting Banking Automobiles Fresh fruit
FNAC
Retail (leisure
Volvo Trucks
Autos/trucks
company form - export, licence, joint venture, etc.; timing - enter now or wait and see; organization - and East-West trade and USA-Europe.
The final chapter is a very useful, short ‘action agenda’ for managers addressing the 1992 question, including checklists and the results of a small survey on 1992 issues from 160 respondents on Harvard executive programmes. Their recommended steps are: assess likely 1992 impact on your specific industry; ensure adequate EC representation (Brussels and Ke) capitals); reassess strategic options (for EC and non-EC based companies for a pan-European versus single country focus); reformulate marketing programs (the 4Ps) and organization. Overall, this book is targeted more to a USA (or non-European) audience to explain what ‘ 1992’ means and to assess the business and marketing implications through practical steps and case illustrations. Some sections are highly prescriptive and useful (notably chapters 3 and 14) and the cases are varied, recent and excellent. The descriptive chapters (1, 2 and 13) are well written and if the new chapter on Eastern Europe doesn’t seem quite up to the level of the others it is still informative and a helpful addition. 220
Marketing Tourism Places
Company
products)
It comes highly recommended, from Ted Levitt himself, former editor of the Harvard Business Review and global marketing guru: ‘this important book is for business everywhere. Its thoroughly informed and carefully reasoned anai_ysis of Europe ‘s accelerating economic integratiorr compels corporations everywhere to be attentille to their prospects and their perils, to see bow new competitive forces are shaping what they can and must do, regardless of their national origins, either inside or outside of Europe. ’ I find the book the best in its (rather unique) category and recommend it as a core text on the pan-European marketing MBA course run at EAP, European School of Management. It is at its best in explaining in a practical way the business implications of 1992 and their impact on marketing strategies. We need more texts of this calibre perhaps linking the text and cases rather more, giving more conceptual frameworks as to how to think about European marketing and going deeper into the ‘how to’ of marketing operations and organization as well as marketing strategy. I recommend this book thoroughly to anyone concerned with the business and marketing implications of the Single Market. C. Halliburton International Director of Studies G Professor of Marketing, EAP, European School of Management
Edited by GREGORY ASHWORTH and BRIAN GOODALL Routledge, London and New York, 1990, 248 pages, 530 This book is the result of a workshop centred around the theme ‘Selling Tourism Destinations’ which was held in the Netherlands in 1988. The workshop was organized by the Geographical Institutes of the Universities of Groningen (the Netherlands) and Reading (the United Kingdom). The workshop contributions were revised to take into account the discussions that took place and have been gathered together in this volume. Tourists are becoming increasingly discerning in their choice of holidays, in terms of both destinations and activities, and many destinations are competing to attract potential tourists. In order to encourage tourists to visit a destination, the destination’s place product must be marketed effectively. This book explores how destinations invest increasing amounts of time and money into developing and promoting their products. Places are marketed by both private and public sector organizations, but it is the emphasis of this book on the selling of tourist destinations by public agencies which differentiates it from the more usual texts. There are 16 contributors to the book including the editors, and apart from one exception they all come from academic institutes. The dominant geography and marketing interests of the contributors are reflected in the approach adopted in the book. The chapters are organized so that they progress from theoretical considerations through the shaping of the destination product to the organizations involved in selling such places. The first chapter examines the implications of public local authorities adopting a marketing philosophy for managing destinations. Various theoretical considerations which follow from regarding a tourism destination as
EUROPEAN MANAGEMENT JOURNAL Vol9
No 2 June 1999: