Global Marketing Management

Planning and Organization

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Global PerspectiveGlobal 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