Transcript Planning & Organization

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 Management
Important 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 Strategies
Different 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.