1. Copyright Atomic Dog Publishing, 2002 Organizing and Controlling International Marketing Operations and Developing an International Marketing Plan Dana-Nicoleta Lascu Chapter 17

2. Copyright Atomic Dog Publishing, 2002 Chapter Objectives Identify external and internal factors that determine the organizational design Describe different organizational designs Identify formal and informal controls that ensure company operations are in line with goals and objectives Provide a blueprint for a company’s country-specific marketing plan

3. Copyright Atomic Dog Publishing, 2002 External Factors Affecting Organizational Structure Competitive Environment Environmental Stability Similarity with Home Country Common Traits/Integration Availability of Local Qualified Labor

4. Copyright Atomic Dog Publishing, 2002 Internal Factors Affecting Organizational Structure Divisional Structure Centralized vs. Decentralized International Department

5. Copyright Atomic Dog Publishing, 2002 International Division International divisions Worldwide regional divisions Product divisions Matrix structure International division Domestic division

6. Copyright Atomic Dog Publishing, 2002 Worldwide Regional Division Subsidiaries report directly to single division responsible for operations  Geographical region  Country Better equipped to respond to country-specific information and conditions

7. Copyright Atomic Dog Publishing, 2002 Product Division Subsidiaries report to product division (strategic business unit) responsible for particular products

8. Copyright Atomic Dog Publishing, 2002 Matrix Structure Each operational unit reports to both region/country managers and product managers

9. Copyright Atomic Dog Publishing, 2002 Controlling Marketing Operations Challenges Local units and a regional focus add levels that complicate management, communication, and evaluation processes External environment changing at different rates Tendency to resist influence in both directions  Headquarters  Subsidiary Input

10. Copyright Atomic Dog Publishing, 2002 Formal Controls Establishing performance standards Measuring performance Addressing discrepancies

11. Copyright Atomic Dog Publishing, 2002 Informal Controls Frequent contact between home-country headquarters and regional/local office Rotate managers to different assignments Hire third-country managers to oversee new or problematic operations Training employees and inculcating a management culture

12. Copyright Atomic Dog Publishing, 2002 Company & Country Background 1)Company & Country Background 2)Environmental Analysis 3)Marketing Mix Decisions 4)Methods of Control 1)Company & Country Background 2)Environmental Analysis 3)Marketing Mix Decisions 4)Methods of Control 1 2 3 4 STEPS

13. Copyright Atomic Dog Publishing, 2002 Company & Country Background, continued Brief profile of the company Brief product profile Brief country background Rationale for introducing the product for the respective country Brief profile of the company Brief product profile Brief country background Rationale for introducing the product for the respective country 1 STEP 1

14. Copyright Atomic Dog Publishing, 2002 Environmental Analysis Economy and Trade Analysis  Economic and trade statistics and their relevance to company plans  Overview of industrial and agricultural sectors, national resources, and labor  Transportation and telecommunication infrastructure  Marketing support structure  Trade trends Economy and Trade Analysis  Economic and trade statistics and their relevance to company plans  Overview of industrial and agricultural sectors, national resources, and labor  Transportation and telecommunication infrastructure  Marketing support structure  Trade trends 1 2 STEP 2

15. Copyright Atomic Dog Publishing, 2002 Environmental Analysis, continued Political and Legal Analysis  Political stability  Type of legal system  Transparency of the legal system  Degree of ambiguity of commercial laws  Degree to which laws are followed and enforced Political and Legal Analysis  Political stability  Type of legal system  Transparency of the legal system  Degree of ambiguity of commercial laws  Degree to which laws are followed and enforced 1 2 STEP 2

16. Copyright Atomic Dog Publishing, 2002 Environmental Analysis, continued Socio-Cultural Analysis  Languages, dialects and implications for marketing  Social institutions and implications for the company  Religion, norms, value systems and marketing implications Socio-Cultural Analysis  Languages, dialects and implications for marketing  Social institutions and implications for the company  Religion, norms, value systems and marketing implications 1 2 STEP 2

17. Copyright Atomic Dog Publishing, 2002 Environmental Analysis, continued Target Market / Competitive Analysis  Target consumer analysis  Distribution  Promotion patterns; availability of local talent and media  Degree of competitive intensity  Competitor marketing strategies  Competitive barriers Target Market / Competitive Analysis  Target consumer analysis  Distribution  Promotion patterns; availability of local talent and media  Degree of competitive intensity  Competitor marketing strategies  Competitive barriers 1 2 STEP 2

18. Copyright Atomic Dog Publishing, 2002 Marketing Mix Decisions 1 2 3 Product decisions  Decisions on standardization versus adaptation  Product mix decisions for the market Promotion decisions  Advertising objectives  Media decisions  Message decisions STEP 3

19. Copyright Atomic Dog Publishing, 2002 Marketing Mix Decisions, continued 1 2 3 Distribution decisions  Decisions on using existing channels or building own distribution  Decisions on wholesalers, retailers, warehousing, and logistics firms  Logistics decisions STEP 3

20. Copyright Atomic Dog Publishing, 2002 Marketing Mix Decisions, continued Pricing decisions  Identify local market traits and needs, and product cost  Develop international marketing budget based on cost  Identify human and capital resources needed for local operations Pricing decisions  Identify local market traits and needs, and product cost  Develop international marketing budget based on cost  Identify human and capital resources needed for local operations 1 2 3 STEP 3

21. Copyright Atomic Dog Publishing, 2002 Methods of Control Implementation and Control  Establish standards for operation in light of market potential  Measure performance in light of standards  Address discrepancies Implementation and Control  Establish standards for operation in light of market potential  Measure performance in light of standards  Address discrepancies 1 2 3 4 STEP 4

22. Copyright Atomic Dog Publishing, 2002 Chapter Summary Identified external and internal factors that determine the organizational design Described different organizational designs Identified formal and informal controls that ensure company operations are in line with goals and objectives Provided a blueprint for a company’s country-specific marketing plan