Global marketing management

Planning and Organization:

Rajesh

MODULE 3 (7 Hours)

Global marketing management planning and organization:

Global perspective global gateways global marketing management an old debate and a new view planning for global markets alternative market entry strategies organizing for global competition

Introduction
Global Competition forced MNCs to change marketing strategies and organizational structure Change is not limited to large companies Execution requires planning, organization and a willingness to try new approaches

Global Marketing Management

1970 Globalization vs Localization 1990 Global Integration Vs Local Responsiveness Mass Customization internet and flexible manufacturing process Mattels Barbie Vs Disneys Princess Segmentation bases such as climate, language group, media habits, age, income.

Advantages of Global Marketing

Economies of Scale Transfer of experience and know how across countries through improved coordination and integration of marketing activities Access to toughest customers may lead to high quality products Additional Financial Benefits Stability in revenues

Planning Global Markets

Planning is commitment of resources to country market Intricacies of the operating environment, organizational structure, controlling Three plans corporate plan, strategic plan, tactical plan Success of planning depends on
Company objectives and resources International commitment

The Planning Process

Phase I: Preliminary Analysis and Screening Matching Company & Country Needs Phase II Adapting the Marketing Mix to Target Markets Phase III Developing Marketing Plan Phase IV Implementation & Control

Alternative Market-Entry Strategies

Exporting
The Internet Exporter Importer Distributor Direct sales

Contractual Agreements
Licensing and Franchising

Alternative Market-Entry Strategies

Strategic Alliances
International joint Venture Consortia

Ownership
Direct Foreign Investment

Organizing for Global Competition

The organizational plan includes the type of organizational arrangements to be used and the scope and location of responsibility. Confused lines of authority Poor communication Lack of cooperation

Organizing for Global Competition

Global Product Divisions Responsible for Product Sales through out the world Geographical divisions responsible for all products and functions within a given geographical area A matrix organization consisting of either of these arrangements

Organizing for Global Competition

General Electric has recognized its global organizations into six product divisions infrastructure, industrial, commercial financial services, NBC Universal, health care, and consumer finance.

Organizing for Global Competition

Matrix structure permits management to respond to the conflicts that arise between functional activity, product and geography. It is designed to encourage sharing of experiences, resources, expertise, technology, and information among global business units Better decision making, in which multiple points of view affecting functional activities, product and geography are possible

Organizing for Global Competition

Turbulence of global markets requires flexible organizational structure.