In 2004, Steenkamp, just 45 years of age, scooped the top award in marketing, the O'Dell Award from the American Marketing Association, and two of the world's top marketing awards, the award from Journal of Consumer Research for the most influential article during the last decade and the Society for Marketing Advances Lifetime Achievement Award in December.
Global challenges loom for SA, says Steenkamp, writing with UCT GSB Professor of Marketing, Prof Steve Burgess, in an article published in the Cape Times last week. Recent public attention in South Africa on a potential Barclays-ABSA, deal as well as rumours of Standard Chartered's interest in FirstRand, have brought home the reality that the globalisation of the marketplace is one of the most important challenges facing companies today.
Beyond the banking sector, Steenkamp and Burgess point out, the rules of competition are changing in sectors as diverse as industrial goods, telecommunications, fast-moving consumer goods and consumer durables. Competition that was traditionally conducted in isolation within countries is now conducted across borders and continents. Market boundaries are blurring or disappearing in an information-rich environment that rewards firms with the insight to respond proactively to the changing rules of the game.
One of the most visible trends of the emerging global marketplace is the decline of the traditional country-by-country branding approach which is proving increasingly inappropriate for companies that are operating in markets with disappearing boundaries.
For example, both Procteor & Gamble (P&G) and Unilever have now greatly pruned the number of brands they market around the world, often disposing of those with limited global potential. Similarly, the telecom giant Vodafone is replacing local brand names with the global Vodafone name.
As a result, Steenkamp and Burgess says that South African companies should not fail to recognise the urgency with which firms must respond to the new competitive environment. Enjoying success in domestic markets is no longer enough in a globalised world. In the face of international competition, South African firms must start looking very closely at how best to position their brands in the face of global competition.
Even if they decide not to be involved in a global or pan-regional marketplace, local companies still face increased competition at home because of nimble foreign competitors reaping the benefits of global strategies.
At the most basic level, companies can start by harnessing the right knowledge and practices for operating in a global marketplace. South African business schools have an important role to play here in stepping up their offerings in this regard.
Secondly, new research shows that South African firms can be more competitive by improving in another key area: market orientation.
Being orientated to the market is about more than just customer orientation. It is an organisational culture and set of behaviours that help the firm develop insight about international markets, craft strategic intent and manage effective interaction strategies.
Whatever the decision that business leaders come to for the future of their brands, both venturing abroad and remaining local have their own sets of winning strategies in the new global marketplace.
Steenkamp is also the Center Research Professor of Marketing and GFK Professor of International Marketing Research at Tilburg University in the Netherlands. Anyone interested in booking for his seminar can contact Aniesah Ajam on Tel: +27 +21 406 1094 or email: aniesaha@gsb.uct.ac.za.
