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

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

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

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

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

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

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

11- 7 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill International Planning Process Company Character 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 Economic Political/legal Competitive Level of technology Culture Structures of distribution Geography Product Adaptation Brand name Features Packaging Service Warranty Style Price Credit Discounts Promotion Advertising Personal selling Media Message Sales promotion Distribution Logistics Channels Situation analysis Objectives and goals Strategy and tactics Budgets Action programs Objectives Standards Assign responsibility Measure performance Correct for error Phase 1Phase 4Phase 2Phase 3

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

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