© 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. Chapter 7 Strategic Planning

© 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. Global Marketing Globalization reflects a business orientation which believes that: Companies need to globalize their international strategies by formulating them across markets to:

© 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. Globalization drivers Market factors Reasons for the similarity in the consumers’ demand are: Cost factors –

© 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. Globalization drivers Environmental factors – ____________ or “born globals” are taking advantage of today’s more open trading regions and newer technologies

© 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. Globalization drivers Competitive factors

© 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 Formal strategic planning contributes to both financial performance as well as nonfinancial objectives such as:

© 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 Three broad dimensions need to be kept in mind are: Soft power:

© 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 Understanding and adjusting the core strategy The strategic business unit represents groupings organized around market similarities based on:

© 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 Market and competitive analysis Provides global marketers with tools to: Key is to understand the structure of the global industry:

© 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 Formulating a global marketing strategy

© 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 Country-market choice ______________ involve two measures: Market expansion policy determines the allocation of resources among various markets

© 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 Segmentation Allows global marketers to take advantage of the benefits of standardization:

© 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 Developing the global marketing program - Marketing-related decisions will have to be made in four areas: Marketing approach Glocalization:

© 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 Location and extent of value-adding activities Competitive moves Cross-subsidization: Challenges of global marketing

© 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 Not-invented-here syndrome (NIH): Leads to decline of global program when: Localizing global marketing – Globalization enhances the flow of information leading to:

© 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 Encourage personnel interchange to gain experience abroad NIH syndrome can be avoided by:

© 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 Maintaining a product portfolio that includes local as well as regional and global brands Localizing global marketing - Organization structures

© 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 Matrix structure is considered more effective in today’s global marketplace Execute global account management programs: Localizing global marketing – Affects and is affected by:

© 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 The management development system has to be transparent wherein: Implement compensation and mobility policies to avail the best talent regardless of job location

© 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 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

© 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 Local Company in the Global Environment The following six-part strategy for success has been proposed: