Global Marketing Management :Planning and Organization

Chapter 11

Matakuliah : J0474 International MarketingTahun : 2009

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Learning Outcome

• Global Marketing Management

• Planning for Global Markets •Alternative Market-Entry Strategies

• Organizing for Global Competition

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Global Marketing Management

Some companies are answering “ Global” as the way to go.

Ford has chosen to keep acquired

nameplates such as Mazda, Jaguar and

Volvo.

Coca Cola, is peddling two brands in India- Coke and Thums -Up

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Global Marketing ManagementThe Nestle Way :

Evolution Not Revolution

Nestle is the world’s biggest marketer of infant formula, powdered milk, instant coffee, chocolate,

soups, and mineral water.

The Nestle way is to dominate its markets.

Its overall strategy can be summarized in four points :

1. Think and plan long term,2. decentralize,

3. stick to what you know,4. adapt to local tastes

The Nestle makes ice cream in Dubai and

soup and cereals in Saudi Arabia, makes yogurt in

Egyptian, and makes chocolate in Turkey

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Global Marketing Management

Benefit of Global marketing

Transfer of experience and know-how across countries

through improved coordinationand integration of marketing activities

is also cited as a global operations.

Unilever successfully,Its South African subsidiary developed Impulse body,

And A European branch developed a detergent that

Cleaned effectively in European hard water.

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Planning for Global Markets

Is there a difference between planning for a domestic company and

for an international company?

Planning is a commitment of resources to a country market to achieve specific goals.

International Corporate Planning

International Strategic Planning

International Tactical Planning

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Planning for Global Markets

Company Objectives and Resources

Planning allows for rapid growth of international function, changing markets, increasing competition, and the turbulent challenges of different national markets.As markets grow increasingly competitive, as a companies find new opportunities, and as the cost of entering foreign markets increases, companies need such planning.

Defining objectives clarifies the orientation of the

domestic and international divisions, permitting consistent policies.

Foreign market opportunities do not

always parallel corporate objectives;

One market may offer immediate profit, but have a poor long-run

outlook, while another may offer the

reverse.

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Planning for Global Markets

International Commitment

After company objectives have been identified, management needs to determine whether it is prepare to make of the level of commitment required for successful international operations-commitment in term of dollars to be invested, personnel for managing the international organization, and determination to say in the market long enough to realize a return on these investment.

Occasionally, casual market entry is successful, but more often than not,

market success requires long-term commitment.

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The Planning Process

Phase 1Preliminary analysis

and screening :Matching company/

country needs

Phase 2Adapting the marketingmix to target markets

Phase 3Developing themarketing plan

Phase 4Implementation

andcontrol

Environmental factors, company character,

screening criteriaMatching mixrequirements

Marketing plandevelopment

Implementation,Evaluation,

control

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Alternative Market-Entry Strategies

Internet

Exporter

Importer

Distributor

Direct Sales

Licensing and Franchising

Strategic alliances

Joint ventures and consortia

Direct foreign investment

Greater controlAnd greater risk

exporting

Contractual agreements

strategic alliances

ownership

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Organizing for Global Competition

Companies are usually structured around one of three alternatives :1. Global product divisions responsible for product sales throughout the world,2. Geographical divisions responsible for all product s and functions within a given geographical area,3. A matrix organization consisting of either of these arrangements with centralized sales and marketing run by a centralized functional staff, or a combination of area operations and global product management.

Locus of DecisionManagement policy must be explicit about which decisions are to be made

at corporate headquarters, which at international headquarters, which at regional levels, and which at national or even local levels.

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Summary• Expanding markets around the world have increased

competition for all levels of international marketing. To keep abreast of the competition and maintain a viable position for increasingly competitive markets, a global perspective is necessary.

• Global competition also requires quality products designed to meet ever-changing customer needs and rapidly advancing technology.

• Collaborative relationship, strategic international alliances, strategic planning, and alternative market-entry strategies are important avenues to global marketing that must be implemented in the planning and organization of global marketing management.