Chapter 12 Notes - Chapter 12 Global Marketing Management...

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Chapter 12 – Global Marketing Management: Planning and Organization An issue facing many multinationals today is how to compete in an increasingly competitive global market. Whether a small company or one of the giants, staying competitive means constantly re- accessing marketing strategies. How product, promotion, distribution, and pricing strategies evolve in international marketing is dependent on the approach to internationalization the company takes. I. Global Marketing Management 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. International corporate planning is essentially long term, incorporating generalized goals for the enterprise as a whole. B. Benefits of a Global Orientation When large international market segments can be identified, economies of scale in production and marketing can bring important competitive advantage for global companies. Global marketing facilitates a transfer of experience and know-how across countries through improved coordination and integration of marketing activities. It also ensures access to the toughest customers. Such demanding customers help companies develop highest quality products and services. Moreover, diversity of markets served carries with it additional financial benefits. Spreading the portfolio of markets served brings important stability of revenues and operations to many global companies. Spreading the portfolio of markets served brings important stability of revenues and operations to many global companies. II. Planning for Global Markets International corporate planning is long term, incorporating generalized goals for the enterprise as a whole. Strategic planning is conducted at high management levels and deals with products, capital, research, and the long- and short-term goals of the company. Tactical planning, or market planning , pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific markets. Tactical plans are made at the local level and address marketing and advertising questions. Company Objectives and Resources A. International Commitment
Chapter 12 – Global Marketing Management: Planning and Organization B. The Planning Process is a primary medium of organizational learning. A critical first step in the international planning process is deciding in which existing country market to make a market investment by matching company and country needs. The choice of mode of entry is one of the more critical decisions for the firm because the choice will define the firm’s operations and affect all future decisions in that market . Phase 1: Preliminary analysis - matching company and country needs. A company’s strengths and weaknesses, character, home-country constraints, products, philosophies, modes of operation, and objectives must be matched with a host country’s constraining factors and market potential.

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