Chapter 7
Strategic Planning
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Global Marketing
• Globalization reflects a business orientation which believes that:
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• Companies need to globalize their international strategies by formulating them across markets to:
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Globalization drivers
• Market factors
• Reasons for the similarity in the consumers’ demand are:
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• Cost factors –
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Globalization drivers
• Environmental factors –
• ____________ or “born globals” are taking advantage of today’s more open trading regions and newer technologies
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Globalization drivers
• Competitive factors
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The Strategic Planning Process
• Formal strategic planning contributes to both financial performance as well as nonfinancial objectives such as:
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The Strategic Planning Process
• Three broad dimensions need to be kept in mind are:
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• Soft power:
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The Strategic Planning Process
• Understanding and adjusting the core strategy
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• The strategic business unit represents groupings organized around market similarities based on:
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The Strategic Planning Process
• Market and competitive analysis
• Provides global marketers with tools to:
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• Key is to understand the structure of the global industry:
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Strategic Planning Process
• Internal analysis
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• Formulating a global marketing strategy
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The Strategic Planning Process
• Country-market choice
• ______________ involve two measures:
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• Market expansion policy determines the allocation of resources among various markets
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The Strategic Planning Process
• Segmentation
• Allows global marketers to take advantage of the benefits of standardization:
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The Strategic Planning Process
• Developing the global marketing program
- Marketing-related decisions will have to be made in four areas:
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• Marketing approach
• Glocalization:
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The Strategic Planning Process
• Location and extent of value-adding activities
• Competitive moves
• Cross-subsidization:
• Challenges of global marketing
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The Strategic Planning Process
• Not-invented-here syndrome (NIH):
Leads to decline of global program when:
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• Localizing global marketing –
• Globalization enhances the flow of information leading to:
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The Strategic Planning Process
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• Encourage personnel interchange to gain experience abroad
• NIH syndrome can be avoided by:
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The Strategic Planning Process
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• Maintaining a product portfolio that includes local as well as regional and global brands
• Localizing global marketing -
Organization structures
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The Strategic Planning Process
• Matrix structure is considered more effective in today’s global marketplace
• Execute global account management programs:
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• Localizing global marketing –
• Affects and is affected by:
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The Strategic Planning Process
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• The management development system has to be transparent wherein:
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• Implement compensation and mobility policies to avail the best talent regardless of job location
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The Local Company in the Global
Environment
• Degree and strength of globalization in an industry determines the pressure that the local marketer will be under
• Extent to which the company’s assets are transferable determines the opportunity dimension
• Multiple strategies are available to local marketers when global markets and marketers challenge them
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The Local Company in the Global
Environment
• The following six-part strategy for success has been proposed:
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.