Planning & Organization

Chapter 11

Global Marketing Management

Different views of how to market globally:

1970’s: “standardization vs. adaptation”1980’s: “globalization vs. localization”1990’s: “global integration vs. local responsiveness”2000’s: mixture of global, localization• Nestle example

Global Marketing ManagementImportant Points about Global Marketing:

1. Benefits of Marketing Globally• With large market segments, economies of scale

can be realized• Transfer of experience and improved coordination

and integration of marketing activities can take place

• Allows companies access to tough customers for testing and re-inventing

• Diversity of markets provides financial benefits – The more diversified the portfolio of markets, the

better risk is spread out when economic down-turns occur or political changes, etc.

Global Marketing Management

Important Points about Global Marketing:

2. A Balanced Approach to Global Marketing is more advantageous than one centered on domestic markets• Developing a global strategy with

marketing activities (branding, distributing…) is more beneficial

– 3M example

International Planning Process What types of planning occur within organizations

Corporate planning • Long term, focused on enterprise objectives, goals

Strategic planning• Highest level of management develops plans

involving the requirements for products, capital, research. (long and short term company goals)

Tactical planning• Market planning – what actions and resources need

to be allocated to implement the strategic planning goals

International Planning Process

The Planning Process occurs in 4 phases:• (Ex. 11.1, pg. 322)

1. Preliminary Analysis and Screening• Company situation, home and host country

situations are evaluated

2. Adapting the Marketing Mix• Matching mix requirements

3. Developing the Marketing Plan• Situational analysis, objectives and goals…

4. Implementation and Control

Market Entry Strategies

Different types of market entry strategies: (Exhibit 11.2 pg. 326)

1. Exporting• Direct vs. indirect• The Internet

– IIM (International internet marketing)• Direct Sales

2. Contractual Agreements• Licensing

– Patent and trademark rights, use of technology processes

• Franchising

Market Entry StrategiesDifferent types of market entry strategies:

3. Strategic International Alliances– Established where 2 or more companies share in risk to

accomplish common goals.– SIA’s are increasingly growing due to industries or

companies wanting to lessen potential risks in international markets; and increase competitiveness

– Airlines is a good example• 2 Types of SIAs

– A. International Joint Ventures– B. Consortia

– Airbus Industrie

4. Direct Foreign Investment• Manufacture locally, invest or buy local companies, or

establish new operations.

Other important points about Global Marketing Management

3 Typical Methods of how companies organize their structure to integrate domestic and international activities:

• 1. Global Product Divisions• 2. Geographical Divisions• 3. Matrix

– Consists of either product or geographical divisions, but centralizes certain functions (sales & marketing…)

Centralized vs. Decentralized Organizations– Advantages of Centralized: experts in one location; exert

a high degree of control over planning and execution; centralization of all records

– Decentralization advantages: ability to respond to local needs and culture; locals have best knowledge of marketing strategies, industry, political and governmental policies.