Global Marketing Management: Planning & Organization Chapter 11

Local v. Global Localization Localization –Customized to certain market –Economies of scale Globalization Globalization –Less focus on countries –Increased focus on customers

Benefits of Global Markets Economies of Scale Economies of Scale Transfer of Knowledge and Experience Transfer of Knowledge and Experience Stabilities of revenues Stabilities of revenues

Planning Definition Definition Types Types –Corporate –Strategic –Tactical Company Objectives & Resources Company Objectives & Resources –International commitment? –Planning process

Planning Process Preliminary Analysis & Screening Preliminary Analysis & Screening –Which countries do we want to enter? Adapting the Marketing Mix Adapting the Marketing Mix –How will we need to adapt product, price, place, or promotion? Developing the Marketing Mix Developing the Marketing Mix –Writing the plan Implementation & Control Implementation & Control

Alternative Market Entry Strategies Exporting Exporting –Direct v indirect –Internet –Direct sales Contractual Agreements Contractual Agreements –Licensing –Franchising

Alternative Market Entry Strategies Strategic International Alliances Strategic International Alliances –Mutual need & shared risk –International joint ventures –Consortia How is it different from a joint venture? How is it different from a joint venture? Direct Foreign Investment Direct Foreign Investment

Organizing Three organizational structures Three organizational structures –Global product divisions –Geographic divisions –Matrix Locus of Decision Locus of Decision

Organizing Centralized Centralized –Advantages –Disadvantages Decentralized Decentralized –Advantages –Disadvantages