1. A FRAMEWORK for MARKETING MANAGEMENT
Chapter 18
Managing
Marketing
in the
Global Economy
Kotler Keller Cunningham

2. © Copyright 2008 Pearson Education Canada
Chapter Questions
What major decisions does a firm face in planning for international markets?
What are the keys to effective internal marketing?
How can a company improve its marketing implementation skills?
What tools can a company use to monitor and improve its marketing activities?
© Copyright 2008 Pearson Education Canada

3. Profile: Canadian Marketing Excellence MEGA BLOKS INC.
Montreal’s Mega Bloks Inc., maker of a broad range of construction toys, was the winner at Canada’s Export Awards (2005)
Safe, quality toys designed to help children discover and have fun are supported by dynamic sales teams and innovative retail partnerships
World’s second largest construction toy maker
75% of manufacturing done in Montreal although it supplies over 100 countries
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4. Global Firm A firm that operates in two or more
countries and captures R&D, production,
logistical, marketing, and
financial advantages in its costs and
reputation that are not available to purely
domestic competitors
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5. Major Decisions in International Marketing
Deciding whether to go
Deciding which markets to enter
Deciding how to enter
45% of Canada’s GDP comes from exports
Deciding on the
marketing program
Deciding on the
marketing organization
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6. When to Restrict Internationalization?
Market entry and market control costs are high
Product and communication adaptation costs are high
Population, income size, and growth are high in the initial countries chosen
Dominant foreign firms can establish high barriers to entry
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7. Figure 18.2 Modes of Entry into Foreign Markets
Commitment, Risk, Control, and Profit Potential
Indirect
exporting
Direct
exporting
Licensing
Joint
ventures
Direct
investment
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8. McDonald’s Franchises Are Sold Worldwide
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9. Figure 18.3 International Product and Communication Strategies
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10. © Copyright 2008 Pearson Education Canada
Price Choices
Set a uniform price everywhere
Set a market-based price in each country
Set a cost-based price in each country
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11. Organizing the Marketing Department
Functionally
Geographically
Product or brand
Market
Matrix
Corporate-divisional
Global
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12. Role of Marketing at the Corporate Level
To promote a culture of customer orientation
To assess market attractiveness
To develop firm’s overall value proposition, vision, and articulation of how it proposes to deliver superior value to customers
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13. © Copyright 2008 Pearson Education Canada
Tasks Assigned to CMOs
Coordinate the company’s internal marketing activities
Coordinate marketing with finance, operations, and other company functions to serve the customer
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14. Managing the Marketing Process
Marketing implementation is the process
that turns marketing plans
into action and ensures that
assignments are executed in a manner
that accomplishes
the plan’s stated objectives
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15. Necessary Skills for Implementing Marketing Programs
Diagnostic skills
Identification of company level
Implementation skills
Evaluation skills
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16. Types of Marketing Control
Annual-plan
control
Profitability
control
Efficiency
control
Strategic
control
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17. Health & Welfare Canada
Health and Welfare Canada has one of the longest records of any social marketing organization
More than 125 companies, nonprofit organizations, and other government agencies formed partnerships that contributed close to
$60 million in resources to key causes
One program (ParticipACTION) promotes physical activity
Its success is attributed to clear and specific objectives
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18. Figure 18.4 The Control Process
What do we want to achieve?
What is happening?
Why is it happening?
What should we do about it?
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19. Marketing Audit Comprehensive, systematic, independent
periodic examination of a company’s
or business unit’s marketing
environment, objectives, strategies, and
activities with a view to determining
problem areas and opportunities,
and recommending
a plan of action to improve
the company’s marketing performance
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20. Six Major Components Examined During Marketing Audits
Macroenvironment/task environment
Marketing strategy
Marketing organization
Marketing productivity
Marketing systems
Marketing function (four Ps)
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21. Cause-Related Marketing
Marketing that links the firm’s contributions
to a designated cause to customers
engaging directly or indirectly in
revenue-producing transactions
with the firm
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22. For Discussion Will the globalization of the world
make product and communications
adaptations irrelevant?
Why or why not?
© Copyright 2008 Pearson Education Canada