Global Marketing Global Marketing Management: Planning & Management: Planning &

OrganizationOrganization

Chapter 11Chapter 11

Local v. GlobalLocal v. Global• LocalizationLocalization

– Customized to Customized to certain marketcertain market

– Economies of scaleEconomies of scale

• GlobalizationGlobalization– Less focus on Less focus on

countriescountries– Increased focus on Increased focus on

customerscustomers

Benefits of Global MarketsBenefits of Global Markets• Economies of ScaleEconomies of Scale• Transfer of Knowledge and Transfer of Knowledge and

ExperienceExperience• Stabilities of revenuesStabilities of revenues

PlanningPlanning• DefinitionDefinition• TypesTypes

– CorporateCorporate– StrategicStrategic– TacticalTactical

• Company Objectives & ResourcesCompany Objectives & Resources– International commitment?International commitment?– Planning processPlanning process

Planning ProcessPlanning Process• Preliminary Analysis & ScreeningPreliminary Analysis & Screening

– Which countries do we want to enter?Which countries do we want to enter?• Adapting the Marketing MixAdapting the Marketing Mix

– How will we need to adapt product, How will we need to adapt product, price, place, or promotion?price, place, or promotion?

• Developing the Marketing MixDeveloping the Marketing Mix– Writing the planWriting the plan

• Implementation & ControlImplementation & Control

Alternative Market Entry Alternative Market Entry StrategiesStrategies• ExportingExporting

– Direct v indirectDirect v indirect– InternetInternet– Direct salesDirect sales

• Contractual AgreementsContractual Agreements– LicensingLicensing– FranchisingFranchising

Alternative Market Entry Alternative Market Entry StrategiesStrategies• Strategic International AlliancesStrategic International Alliances

– Mutual need & shared riskMutual need & shared risk– International joint venturesInternational joint ventures– ConsortiaConsortia

•How is it different from a joint venture?How is it different from a joint venture?• Direct Foreign InvestmentDirect Foreign Investment

OrganizingOrganizing• Three organizational structuresThree organizational structures

– Global product divisionsGlobal product divisions– Geographic divisionsGeographic divisions– MatrixMatrix

• Locus of DecisionLocus of Decision

OrganizingOrganizing• CentralizedCentralized

– AdvantagesAdvantages– DisadvantagesDisadvantages

• DecentralizedDecentralized– AdvantagesAdvantages– DisadvantagesDisadvantages