CHAPTER 11

GLOBAL MARKETING
MANAGEMENT:
PLANNING AND ORGANIZATION
LEARNING OBJECTIVES:

How global marketing management differs from

international management
The increasing importance of international
strategic alliances
The need for planning to achieve company
goals
The important factors for each alternative
market-entry strategy
 GLOBAL MARKETING MANAGEMENT

1970s- the market segmentation argument was

framed as standardization versus adaptation

1980s- globalization versus localization

1990s- global integration versus local

responsiveness
 The Nestle Way: Evolution not Revolution
The Nestle Way is to dominate its markets. Its overall
strategy can be summarized in four points.
1. To think and Pan long-term
2. Decentralized
3. Stick to what you know
4. Adapt to what local
Benefits of Global marketing
Transfer of experience and know-how across
countries through improved coordination and
integration of marketing . Global diversity in
marketing talent leads to new approaches across
markets.
Marketing globally also ensures that marketers
have access to the toughest customers.
Diversity of markets served carries with it
additional benefits.
 PLANNING FOR GLOBAL MARKETS

Planning is a systematized way of relating to the

future. It is an attempt to manage the effects of
external, uncontrollable factors on the firms
strengths, weaknesses, objectives, and goals to
attain a desired end.
Planning allows for rapid growth of the
international function, changing markets,
increasing competition, and the turbulent
challenges of different national markets.
 PLANNING FOR GLOBAL MARKETS

Company Objectives and Resources

International Commitment
The Planning Process
INTERNATIONAL PLANNING PROCESS
Phase 1: Preliminary analysis
and screening: Matching
company/ country needs

Phase 2: Adapting the

marketing mix to target markets

Phase 3: Developing the

marketing plan

Phase 4: Implementation and

control
 ALTERNATIVE MARKET ENTRY STRATEGIES

Exporting
Contractual Agreements
Strategic International Alliances
Direct Foreign Investment
 ORGANIZING FOR GLOBAL COMPETITION

Locus of Decision considerations of where

decisions will be made, by whom, and by which
methods constitute a major element of
organizational strategy.
Centralized versus Decentralized Organizations an
infinite number of organizational patterns for the
headquarters activities of multinational firms exists,
but most fir into one of the three categories:
centralized, regionalized, or decentralized
organizations.