Planning for Global Markets
Phase 1: Preliminary Analysis and Screening – Matching Company and Country Needs:
2. Establish criteria for those prospective countries. Min potential / Min profit / ROI Competitive levels Political / legal etc.
Planning for Global Markets
Phase 1: Preliminary Analysis and Screening – Matching Company and Country Needs: 3. Analyze the environment of each prospective countries. Potential of market Problems that eliminate the country from consideration Environment elements for further study 4Ps: standardize or adapt?
Planning for Global Markets
Phase 3: Developing a market plan ---- for a single country or a market segment Situation analysis Entry mode Specific action program Quit or not?
4. The important factors for each alternative market-entry strategy
Introduction
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Increasingly firms are entering foreign markets Execution of international marketing requires planning, organization, and a willingness to try new approaches—collaborative relationships, new operation scope
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Global Marketing Management
Global Marketing Management: An Old Debate and a New View • Global Marketing Management thought has undergone substantial revision In the 1970s the argument was framed as ―standardization vs. adaptation‖ In the 1980s it was ―globalization vs. localization‖----- ―Think local, act local‖ In the 1990s it was ―global integration vs. local responsiveness‖ The basic issue is whether the global homogenization of consumer tastes allowed global standardization of the marketing mix
Phase 1: Preliminary Analysis and Screening – Matching Company and Country Needs
Phase 2: Adapting the Marketing Mix to Target Markets Phase 3: Developing the Marketing Plan Phase 4: Implementation and Control
Transfer of experience and know-how across countries through improved coordination and integration of marketing activities Diversity of markets by spreading the portfolio of markets served brings an important stability of revenues and operations to many global firms In some cases: reduce labor cost
Planning for Global Markets
Phase 1: Preliminary Analysis and Screening – Matching Company and Country Needs:
1. Analyze countries potential for international marketing, considering the constrains factors and market potentials.
Introduction•This chapter discusses global marketing management, competition in the global marketplace, strategic planning, and alternative market-entry strategies The chapter also identifies the elements that contribute to an effective international or global organization.
Chapter 9
Global Marketing Management: Planning and Organization
Chapter Learning Objectives
1. How global marketing management differs from international marketing management 2. The increasing importance of international strategic alliances 3. The need for planning to achieve company goals
Planning for Global Markets
• Planning may be viewed as (1)Corporate plan --- goal (2) strategic plan , (3)tactical plan
Planning for Global Markets
Company objectives and resources • Commitment relative to the parent company’s objectives and resources are to be planned and re-planned.
The Planning Process
• Planning, which offers a systematic guide to planning for the multinational firm operating in several countries, includes the following 4 phases:
Benefits of Global Marketing
The merits of global marketing include:
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Economies of scale in production and marketing for a larger market segment can be important competitive advantages for global companies Unifying product development, purchasing, and supply activities across several countries it can save costs
• (a)
(b)
(c)
The answers to three major questions are sought in Phase 2: Are there identifiable market segments that allow for common marketing mix tactics across countries? Which cultural/environmental adaptations are necessary for successful acceptance of the marketing mix? Will adaptation costs allow profitable market entry?
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Global Marketing Management
Why localization? • Easy communication for customization
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Flexible manufacturing process
Other reasons
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The Nestle Way
• • Nestlésells more than 8,500 products produced in 489 factories in 193 countries Nestlé is the world’s biggest marketer of infant formula, powdered milk, instant coffee, chocolate, soups, and mineral water