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Matakuliah : J0474 International Marketing
Tahun
: 2009
Global Marketing Management :
Planning and Organization
Chapter 11
Learning Outcome
• Global Marketing Management
• Planning for Global Markets
•Alternative Market-Entry Strategies
• Organizing for Global Competition
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Global Marketing Management
Some companies are answering “ Global” as the way to go.
Ford has chosen to keep
acquired nameplates
such as Mazda, Jaguar
and Volvo.
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Coca Cola, is peddling two
brands in India- Coke and
Thums -Up
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Global Marketing Management
The Nestle Way :
Evolution Not Revolution
Nestle is the world’s biggest marketer of infant formula,
powdered milk, instant coffee, chocolate,
soups, and mineral water.
The Nestle makes ice
cream in Dubai and
soup and cereals in Saudi
Arabia, makes yogurt in
Egyptian, and makes
chocolate in Turkey
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The Nestle way is to dominate its
markets.
Its overall strategy can be summarized
in four points :
1. Think and plan long term,
2. decentralize,
3. stick to what you know,
4. adapt to local tastes
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Global Marketing Management
Benefit of Global marketing
Unilever successfully,
Its South African subsidiary
developed Impulse body,
And A European branch developed a
detergent that
Cleaned effectively in European hard
water.
Transfer of experience and
know-how across countries
through improved coordination
and integration of marketing activities
is also cited as a global operations.
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Planning for Global Markets
Planning is a commitment of resources to a country market
to achieve specific goals.
International
Corporate Planning
International
Strategic Planning
Is there a difference
between planning for a
domestic company and for
an international company?
International
Tactical Planning
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Planning for Global Markets
Company Objectives and Resources
Planning allows for rapid growth of international function, changing
markets, increasing competition, and the turbulent challenges of
different national markets.
As markets grow increasingly competitive, as a companies find
new opportunities, and as the cost of entering foreign markets
increases, companies need such planning.
Defining objectives clarifies
the orientation of the domestic
and international divisions,
permitting consistent policies.
One market may offer
immediate profit, but
have a poor long-run
outlook, while another
may offer the reverse.
Foreign market
opportunities do not
always parallel
corporate objectives;
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Planning for Global Markets
International Commitment
After company objectives have been identified, management needs to
determine whether it is prepare to make of the level of commitment
required for successful international operations-commitment in term of
dollars to be invested, personnel for managing the international
organization, and determination to say in the market long enough to realize
a return on these investment.
Occasionally, casual market entry is successful,
but more often than not,
market success requires long-term commitment.
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The Planning Process
Phase 1
Preliminary analysis
and screening :
Matching company/
country needs
Environmental factors,
company character,
screening criteria
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Phase 2
Adapting the marketing
mix to target markets
Matching mix
requirements
Phase 3
Developing the
marketing plan
Marketing plan
development
Phase 4
Implementation
and
control
Implementation,
Evaluation,
control
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Alternative Market-Entry Strategies
Internet
Exporter
exporting
Importer
Distributor
Direct Sales
Contractual agreements
Greater control
And greater risk
Licensing and Franchising
Strategic alliances
strategic alliances
ownership
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Joint ventures and consortia
Direct foreign investment
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Organizing for Global Competition
Companies are usually structured around one of three alternatives :
1. Global product divisions responsible for product sales throughout
the world,
2. Geographical divisions responsible for all product s and functions within
a given geographical area,
3. A matrix organization consisting of either of these arrangements with
centralized sales and marketing run by a centralized functional staff,
or a combination of area operations and global product management.
Locus of Decision
Management policy must be explicit about which decisions are to be made
at corporate headquarters, which at international headquarters,
which at regional levels, and which at national or even local levels.
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Summary
• Expanding markets around the world have increased
competition for all levels of international marketing.
To keep abreast of the competition and maintain a
viable position for increasingly competitive markets, a
global perspective is necessary.
• Global competition also requires quality products
designed to meet ever-changing customer needs and
rapidly advancing technology.
• Collaborative relationship, strategic international
alliances, strategic planning, and alternative marketentry strategies are important avenues to global
marketing that must be implemented in the planning
and organization of global marketing management.
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