Transcript Chapter 17

Organizing and Controlling
International Marketing Operations
and Developing an International
Marketing Plan
Dana-Nicoleta Lascu
Chapter 17
Copyright Atomic Dog Publishing, 2002
Chapter Objectives
• Identify external and internal factors that determine
the organizational design
• Describe different organizational designs
• Identify formal and informal controls that ensure
company operations are in line with goals and
objectives
• Provide a blueprint for a company’s country-specific
marketing plan
Copyright Atomic Dog Publishing, 2002
External Factors Affecting
Organizational Structure
• Competitive Environment
• Environmental Stability
• Similarity with Home Country
• Common Traits/Integration
• Availability of Local Qualified Labor
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Internal Factors Affecting
Organizational Structure
• Divisional Structure
• Centralized vs. Decentralized
• International Department
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International Division
• International divisions
• Worldwide regional divisions
• Product divisions
• Matrix structure
• International division
• Domestic division
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Worldwide Regional Division
• Subsidiaries report directly to single division
responsible for operations
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Geographical region
Country
• Better equipped to respond to country-specific
information and conditions
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Product Division
• Subsidiaries report to product division
(strategic business unit) responsible for
particular products
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Matrix Structure
• Each operational unit reports to both region/country
managers and product managers
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Controlling Marketing Operations
Challenges
• Local units and a regional focus add levels that
complicate management, communication, and
evaluation processes
• External environment changing at different rates
• Tendency to resist influence in both directions
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Headquarters
Subsidiary Input
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Formal Controls
• Establishing performance standards
• Measuring performance
• Addressing discrepancies
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Informal Controls
• Frequent contact between home-country
headquarters and regional/local office
• Rotate managers to different assignments
• Hire third-country managers to oversee new or
problematic operations
• Training employees and inculcating a
management culture
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Company & Country Background
STEPS
4
3
1) Company & Country
Background
2) Environmental Analysis
3) Marketing Mix Decisions
2
1
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4) Methods of Control
Company & Country
Background, continued
STEP 1
• Brief profile of the company
• Brief product profile
• Brief country background
• Rationale for introducing the product
for the respective country
1
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Environmental Analysis
STEP 2
• Economy and Trade Analysis
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2
1
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Economic and trade statistics and their
relevance to company plans
Overview of industrial and agricultural
sectors, national resources, and labor
Transportation and telecommunication
infrastructure
Marketing support structure
Trade trends
Environmental Analysis, continued
STEP 2
• Political and Legal Analysis
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2
1
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Political stability
Type of legal system
Transparency of the legal system
Degree of ambiguity of commercial laws
Degree to which laws are followed and
enforced
Environmental Analysis, continued
STEP 2
• Socio-Cultural Analysis
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2
1
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Languages, dialects and implications for
marketing
Social institutions and implications for
the company
Religion, norms, value systems and
marketing implications
Environmental Analysis, continued
STEP 2
• Target Market / Competitive Analysis
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2
1
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Target consumer analysis
Distribution
Promotion patterns; availability of local
talent and media
Degree of competitive intensity
Competitor marketing strategies
Competitive barriers
Marketing Mix Decisions
STEP 3
• Product decisions
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Decisions on standardization versus
adaptation
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Product mix decisions for the market
• Promotion decisions
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2
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1
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Advertising objectives
Media decisions
Message decisions
Marketing Mix Decisions, continued
STEP 3
• Distribution decisions
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3
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2
1
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Decisions on using existing channels or
building own distribution
Decisions on wholesalers, retailers,
warehousing, and logistics firms
Logistics decisions
Marketing Mix Decisions, continued
STEP 3
• Pricing decisions
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3
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2
1
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Identify local market traits and needs,
and product cost
Develop international marketing budget
based on cost
Identify human and capital resources
needed for local operations
Methods of Control
STEP 4
• Implementation and Control
4
3
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Establish standards for operation in light
of market potential
Measure performance in light of
standards
Address discrepancies
Chapter Summary
• Identified external and internal factors that determine
the organizational design
• Described different organizational designs
• Identified formal and informal controls that ensure
company operations are in line with goals and
objectives
• Provided a blueprint for a company’s country-specific
marketing plan
Copyright Atomic Dog Publishing, 2002