Planning & Organization

1. Planning & Organization Chapter 11

2. 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

3. 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.

4. 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

5. 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

6. 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

7. 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

8. 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.

9. 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.