Chapter 11 11 0 Global Marketing Management Planning

Chapter 11 11 -0 Global Marketing Management Planning and Organization Irwin/Mc. Graw-Hill ©The Mc. Graw-Hill Companies, Inc. , 1999

A Comparison of Assumptions About Global and International Companies 11 -1 Irwin/Mc. Graw-Hill ©The Mc. Graw-Hill Companies, Inc. , 1999

A Comparison of Assumptions About Global and International Companies 11 -2 Irwin/Mc. Graw-Hill ©The Mc. Graw-Hill Companies, Inc. , 1999

A Comparison of Assumptions About Global and International Companies 11 -3 SOURCE: Adapted with the authors’ permission from Gerald M. Hampton and Erwin Buske. “The Global Marketing Perspective, ” Advances in International Marketing, vol. 2. Tamer Cavusgil. Ed. (Greenwich. Conn. : JAL Press. 1987). P. 265 -66. Irwin/Mc. Graw-Hill S. ©The Mc. Graw-Hill Companies, Inc. , 1999

Benefits of Global Orientation 11 -4 Economies of Scale in Production & Marketing Transfer of Experience and Know-How across Countries Uniform Global Image Control and Coordination of Operations Irwin/Mc. Graw-Hill ©The Mc. Graw-Hill Companies, Inc. , 1999

Product Development Process United States and Japan 11 -5 UNITED STATES JAPAN Market Research Product Characteristics Design Planned selling price less desired profit Engineering TARGET COST Supplier Pricing Cost If cost too high return to design phase Design Engineering Target costs for each component forces marketers, designers, and engineers from all departments and suppliers to negotiate tradeoffs Manufacturing Periodic cost reduction Continuous Cost Reduction Irwin/Mc. Graw-Hill Supplier Price SOURCE: Adapted from Ford S. Worthy, “Japan’s ©The Fortune, Mc. Graw-Hill Companies, Inc. , p. 73. 1999 Smart Secret Weapon, ” August 12, 1991,

International Planning Process 11 -6 Information derived from each phase, market research, and evaluation of program performance Phase 1 Preliminary analysis and screening: Matching company/country needs Environmental uncontrollables, company character, and screening criteria Irwin/Mc. Graw-Hill Phase 2 Adapting the marketing mix to target markets Phase 3 Developing the marketing plan Phase 4 Implementation and control Matching mix requirements Marketing plan development Implementation, evaluation, and control ©The Mc. Graw-Hill Companies, Inc. , 1999

International Planning Process 11 -7 Phase 1 Phase 2 Company Character Product Philosophy Objectives Resources Management style Organization Financial limitations Management and marketing skills Products Other Home Country Constraints Political Legal Economic Other Host Country(s) Constraints Adaptation Brand name Features Packaging Service Warranty Style Price Credit Discounts Phase 3 Phase 4 Situation analysis Objectives and goals Strategy and tactics Budgets Action programs Objectives Standards Assign responsibility Measure performance Correct for error Promotion Advertising Personal selling Media Message Sales promotion Economic Distribution Political/legal Logistics Competitive Channels Level of technology Culture Structures of distribution Geography Irwin/Mc. Graw-Hill ©The Mc. Graw-Hill Companies, Inc. , 1999

Alternative Market Entry Strategies • Exporting 11 -8 • Internet • Contractual Agreements • Licensing • Franchising • Joint Ventures • Consortia • Direct Foreign Investment • Strategic International Alliances Irwin/Mc. Graw-Hill ©The Mc. Graw-Hill Companies, Inc. , 1999

Schematic Marketing Organization Plan Combining Product, Geographic, and Functional Approaches 11 -9 Company President Vice President Marketing Director: Passenger car marketing Director: Truck marketing Research Manager N. American distribution Adv. Sales Irwin/Mc. Graw-Hill Research Manager European distribution Adv. Sales Manager African distribution Adv. Sales Manager N. American distribution Manager S. American distribution Manager African distribution Adv. Sales ©The Mc. Graw-Hill Companies, Inc. , 1999