Global Marketing
Management
Planning and Organization
Global Perspective
Global Gateways
• Confronted with increasing global competition for
expanding markets, multinational companies are
changing their marketing strategies and altering their
organizational structure.
• A recent study of North American and European
corporations indicated that nearly 75% of the companies
are revamping their business processes.
• The flexibility of a similar company may enable it to
reflect the demands of global markets and redefine its
programs more quickly than larger multinationals.
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Global Marketing Management
• 1970s – “standardization versus adaptation”
• 1980s – “globalization versus localization”
• 1990s – “global integration versus local responsiveness”
• The trend back toward localization is caused by the new
efficiencies of customization made possible by the Internet
and increasingly flexible manufacturing processes.
• From the marketing perspective customization is always best.
• As global markets continue to homogenize and diversify
simultaneously, the best companies will avoid the trap of
focusing on country as the primary segmentation variable.
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Global Marketing Management
Coca Cola and Pepsi
Compete World
Round – Which Sign
Can You Read?
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Global Marketing Management
Disney Successfully Exports its Princesses While Barbie Fails.
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The Nestle Way: Evolution Not Revolution
• Nestle is the world’s biggest marketer of infant formula,
powdered milk, instant coffee, chocolate, soups, and
mineral water.
• Nestle strategy can be summarized in four points:
-
Think and plan long term
Decentralize
Stick to what you know
Adapt to local tastes
• Long-term strategy works for Nestle because the
company relies on local ingredients and markets products
that consumers can afford.
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Benefits of Global Marketing
• When large market segments can be identified, economies of scale
in production and marketing can be important competitive
advantages for global companies.
• Transfer of experience and know-how across countries through
improved coordination and integration of marketing activities.
• Marketing globally also ensures that marketers have access to the
toughest customers.
• Diversity of markets served carries with it additional financial
benefits.
• Firms that market globally are able to take advantage of changing
financial circumstances.
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International Planning Process
• Insert Exhibit 11.1
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Alternative Market-Entry Strategies
• Insert Exhibit 11.2
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Building Strategic Alliances
• Insert Exhibit 11.3
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Direct Foreign Investment
• Factors that have been found to influence the structure
and performance of direct investments:
-
Timing
The growing complexity and contingencies of contracts
Transaction cost structures
Technology transfer
Degree of product differentiation
The previous experiences and cultural diversity of acquired
firms
- Advertising and reputation barriers
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Schematic Marketing Organization Plan Combining
Product, Geographic, and Functional Approaches
• Insert Exhibit 11.4
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