SPPT Chapter 012

8/15/2019 SPPT Chapter 012

1/26

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies Inc! "ll rights reser#e$!

Global Marketing Management:Planning and Organization

Chapter 12


2/26

12-2

Learning Objectives

LO1 How global marketing managementdifers rom international marketingmanagement

LO2 The need or lanning to achievecom an! goalsLO3 The im ortant actors or eachalternative market entr! strateg!LO4 The increasing im ortance ointernational

strategic alliances


3/26

12-3

Global Marketing Management

• "standardization vs#ada tation$

%&'(s

• "globalization vs#localization$

%&)(s • "globalintegration

vs# localres onsiveness$

%&&(s


4/26

12-4

Global Marketing Management The iss*e is i the global homogenization o cons*mer tastes allow orthe global standardization o the marketing mi+

The ,nternet revol*tion o the %&&(s added a new twist to the old debate-ome com anies contin*e to believe that "global$ is the wa! to go,n man! arts o the world. cons*mers have become ickier. more

enn!/wise. or a little more nationalistic The! are s ending more o their mone! on local drinks whose 0avorsare not art o the 1oca/1ola line* The trend back toward localization is beca*se o the e2ciencies oc*stomization beca*se o the roli eration o the ,nternet and 0e+ibleman* act*ring rocesses

The debate abo*t standardization vers*s ada tation is an e+am le oethnocentrism in the 3#-#

4s global markets homogenize and diversi ! sim*ltaneo*sl!. the bestcom anies will avoid oc*sing on country as the rimar! segmentationvariableOther segmentation variables are o ten more im ortant5 or e+am le.climate. lang*age gro* . media habits. age. or income


5/26

12-5

The 6estl7 8a!:9vol*tion 6ot evol*tion

The "6estl7 wa!$ is to dominate itsmarkets,ts overall strateg! can be s*mmarized in

o*r oints:

Think and lan longterm;ecentralize

-tick to what !o*know4da t to local tastes


6/26


7/2612-7

Planning or Global Markets

Planning is a s!stematized wa! o relating to the*t*re

,t is a commitment o reso*rces to a co*ntr!market to achieve s eci=c goals,t allows or ra id growth o the international

*nction and the challenges o diferent nationalmarkets,nternational corporate planning is essentiall!long term incor orating generalized goals or theenter rise as a wholeStrategic planning deals with rod*cts. ca ital.research. and the long/ and short/term goals othe com an!


8/2612-8

1om an! Objectives andeso*rces>oreign market o ort*nities do not alwa!s

arallel cor orate objectives and reso*rces,t ma! be necessar! to change the

objectives. alter the scale o internationallans. or abandon themOne market ma! ofer immediate ro=t b*thave a oor long/r*n o*tlook. while anotherma! ofer the reverse#Onl! when cor orate objectives are clear cans*ch diferences be reconciled efectivel!


9/2612-9

,nternational 1ommitment

Management needs to be re ared to make the levelo commitment re?*ired or s*ccess *l internationalo erations1ommitment afects the s eci=c internationalstrategies and decisions o the =rm4 long/term marketing lan sho*ld have realistic timegoals set or sales growth

There is a strong regional re erence or m*ltinational

com anies as the! e+ and their o erations1om etition and the ease o comm*nications isorcing managers to make commitments to global

marketing


10/2612-10


11/26

Phase %: Preliminar! 4nal!sis and -creening

Phase @: ;e=ning Target Markets and4da ting the Marketing Mi+

4 critical =rst ste in the lanning rocess is deciding in which e+isting co*ntr!market to make a market investment4 com an!As strengths and weaknesses. rod*cts. hiloso hies. modes oo eration. and objectives m*st be matched with a co*ntr!As ?*alities>irst. co*ntries are anal!zed and screened to eliminate those that do not ofers*2cient otential or *rther consideration-econd. screening criteria are established against which ros ective co*ntriescan be eval*ated

Third. a com lete anal!sis o the environment within which a com an! lans to

o erate is made

4 more detailed e+amination o the com onents o the marketing mi+ is the*r ose o Phase @

The rimar! goal o Phase @ is to decide on a marketing mi+ adj*sted to thec*lt*ral constraints im osed b! the *ncontrollable elements o the

environment that efectivel! achieves cor orate objectives and goals The answers to three major ?*estions are generated in Phase @:• 4re there identi=able market segments that allow or common marketing

mi+ tactics across co*ntriesB• 8hich c*lt*ralCenvironmental ada tations are necessar! or s*ccess *l

acce tance o the marketing mi+B• 8ill ada tation costs allow ro=table market entr!B

12-11


12/26

Phase D: ;evelo ing the Marketing Plan4 marketing lan is develo ed or the target market5whether it is asingle co*ntr! or a global market set

The marketing lan begins with a sit*ation anal!sis and c*lminatesin the selection o an entr! mode and a s eci=c action rogram orthe market

The s eci=c lan establishes what is to be done. b! whom. how it isto be done. and when# ,ncl*ded are b*dgets and sales and ro=te+ ectations

Phase E: ,m lementation and 1ontrol The lanning rocess is a d!namic. contin*o*s set o interactingvariables with in ormation contin*o*sl! b*ilding among hases4n eval*ation and control s!stem re?*ires er ormance/objective

actionF bringing the lan back on track sho*ld standards oer ormance all short The s!stem enco*rages the decision maker to consider all variablesthat afect the s*ccess o a com an!As lan,t rovides the basis or viewing all co*ntr! markets and theirinterrelationshi s as an integrated global *nit

12-12


13/2612-13

4lternative Market/9ntr!-trategies4 com an! has o*r diferent modes o oreign market entr! romwhich to select: e+ orting. contract*al agreements. strategicalliances. and direct oreign investment

The amo*nt o e?*it! re?*ired b! the com an! to *se diferent modesafects the risk. ret*rn. and control that it will have in each mode

9+hibit %@#@4lternative

Market/9ntr!-trategies


14/26

12-14

9+ orting

9+ orting acco*nts or some %( ercent o global economicactivit!#9+ orting can be either direct or indirect:

• 8ith direct exporting . the com an! sells to a c*stomer inanother co*ntr!

•

8ith indirect exporting *s*all! means that the com an!sells to a b*!er im orter or distrib*tor in the homeco*ntr!. which in t*rn e+ orts the rod*ct

The ,nternet• The ,nternet is becoming increasingl! im ortant as a oreign

market entr! method• -ho*ld not be overlooked as an alternative market entr!

strateg! b! the small or large com an!;irect -ales

• 4 direct sales orce ma! be re?*ired artic*larl! or high/technolog! and big ticket ind*strial rod*cts

• ,t ma! mean establishing an o2ce with local andCore+ atriate managers and staf. de ending o co*rse on thesize o the market and otential sales reven*es#


15/26

12-15

1ontract*al 4greements

Contractual agreements are long/term. non e?*it!associations between a com an! and another in a oreignmarket#1ontract*al agreements generall! involve the trans er otechnolog!. rocesses. trademarks. andCor h*man skills# ,nshort. the! serve as a means o trans er o knowledge ratherthan e?*it!#Contractual agreements are long/term. non e?*it!associations between a com an! and another in a oreignmarket1ontract*al agreements involve the trans er o technolog!.

rocesses. trademarks. andCor h*man skills# The! serve as a means o trans er o knowledge rather thane?*it!


16/26

12-16

1ontract*al 4greements:Licensing

Licensing is a means o establishing in oreignmarkets witho*t large ca ital o*tla!s,ncl*des atent rights. trademark rights. and therights to *se technological rocesses

4dvantages• ca ital is scarce• im ort restrictions

orbid other means oentr!

• a co*ntr! is sensitiveto oreign ownershi or

• atents andtrademarks m*st be

rotected againstcancellation ornon*se#

isks• choosing the wrong

artner• ?*alit! and other

rod*ction roblems• a!ment roblems• contract en orcement

and• loss o marketing

control


17/26

12-17

1ontract*al 4greements:>ranchising

Franchising is a ra idl! growing orm o licensing The ranchiser rovides a standard ackage o rod*cts. s!stems. andmanagement services. and the ranchisee rovides market knowledge. ca ital.and ersonal involvement in management

The combination o skills ermits 0e+ibilit! in dealing with local market conditionsand !et rovides the arent =rm with a reasonable degree o control#

The ranchiser can ollow thro*gh on marketing o the rod*cts to the oint o=nal sale,t is an im ortant orm o vertical market integration

The ranchise s!stem rovides an efective blending o skill centralization ando erational decentralization,n s ite o the economic downt*rn. ranchising is still e+ ected to be the astestgrowing market/entr! strateg!>ranchises were o ten among the =rst t! es o oreign retail b*siness to o en inthe emerging market economies o eastern 9*ro e. the ormer re *blics o *ssia.and 1hina

The ranchising s!stem combines the knowledge o the ranchiser with the localknowledge and entre rene*rial s irit o the ranchisee


18/26

12-18

-trategic ,nternational 4lliances-,4s4 strategic international alliance (SIA) is a b*sinessrelationshi established b! two or more com anies tocoo erate o*t o m*t*al need and to share risk in achievinga common objective-trategic international alliances are so*ght as a wa! toshore * weaknesses and increase com etitive strengthsFcom lementarit! is ke!#>irms enter into -,4s or several reasons:

• o ort*nities or ra id e+ ansion into new markets• access to new technolog!• more e2cient rod*ction and innovation• red*ced marketing costs• strategic com etitive moves and• access to additional so*rces o rod*cts and ca ital#


19/26

12-19


20/26

12-20

-trategic ,nternational 4lliances:,nternational Ioint Jent*res ,IJs

4 joint ent!re is diferent rom other t! es ostrategic alliances or collaborative relationshi s inthat a joint vent*re is a artnershi o two ormore artici ating com anies that have joined

orces to create a se arate legal entit!#>o*r characteristics de=ne joint vent*res:

• IJs are established. se arate. legal entities• the! acknowledge intent b! the artners to share in the

management o the IJ• the! are artnershi s between legall! incor orated

entities and not between individ*als and• e?*it! ositions are held b! each o the artners


21/26

12-21

-trategic ,nternational 4lliances:1onsortia

1onsortia are similar to joint vent*res ande+ce t or two *ni?*e characteristics:

• the! t! icall! involve a large n*mber oartici ants

• the! re?*entl! o erate in a co*ntr! or market inwhich none o the artici ants is c*rrentl! active

1onsortia are develo ed to ool =nancial andmanagerial reso*rces and to lessen risksOne =rm *s*all! acts as the lead =rm. or thenewl! ormed cor oration ma! e+istinde endentl! o its originators


22/26

12-22

;irect >oreign ,nvestmentDirect foreign investment is direct investment within a oreign co*ntr!1om anies ma! invest locall! to:

• ca italize on low cost labor• avoid high im ort ta+es• red*ce the high costs o trans ortation to market• gain access to raw materials and technolog! or• as a means o gaining market entr!

>irms ma! either invest in or b*! local com anies or establish new o erationsacilities

Several actors have been o*nd to in0*ence the str*ct*re and er ormanceo direct investments:

• timing5=rst movers have advantages b*t are more risk!• the growing com le+it! and contingencies o contracts• transaction cost str*ct*res• technolog! and knowledge trans er• degree o rod*ct diferentiation• the revio*s e+ eriences and c*lt*ral diversit! o ac?*ired =rms• advertising and re *tation barriers


23/26

12-23

Organizing or Global1om etition

1om anies are *s*all! str*ct*red aro*ndone o three alternatives

• global rod*ct divisions res onsible or rod*ctsales thro*gho*t the world

• geogra hical divisions res onsible or all rod*ctsand *nctions within a given geogra hical area

• a matri+ organization consisting o either o thesearrangements with centralized sales andmarketing r*n b! a centralized *nctional staf. ora combination o area o erations and global

rod*ct management


24/26

12-24


25/26

12-25

Loc*s o ;ecision

elates to where decisions will be made. b!whom. and b! which methodManagement olic! m*st be e+ licit abo*t whichdecisions are to be made at which levelMost com anies limit the amo*nt o mone! tobe s ent at each level;ecision levels or determination o olic!.strateg!. and tactical decisions m*st beestablished

Tactical decisions are *s*all! made at the lowestossible level


26/26

1entralized vers*s ;ecentralizedOrganizations

Organizational atterns or the head?*artersA activities o m*ltinational =rms*s*all! =t into one o three categories:

• 1entralized• egionalized• ;ecentralized

The advantages o centralization are:•

the availabilit! o e+ erts at one location• the abilit! to e+ercise a high degree o control on both the lanning and im lementation

hases• the centralization o all records and in ormation

-ome com anies im lement e+treme decentralization b! giving selectingcom etent local managers *ll res onsibilit! or national or regional o erations9ven tho*gh rod*ct decisions ma! be highl! centralized. s*bsidiaries ma! have

a s*bstantial amo*nt o local in0*ence in ricing. advertising. and distrib*tiondecisions, a rod*ct is c*lt*rall! sensitive. the decisions are more likel! to bedecentralized

SPPT Chapter 012

Documents

Transcript of SPPT Chapter 012