Global Marketing Management : Planning and Organization Chapter 11 Matakuliah: J0474 International Marketing Tahun: 2009

Bina Nusantara University 3 Learning Outcome Global Marketing Management Planning for Global Markets Alternative Market-Entry Strategies Organizing for Global Competition

Bina Nusantara University 4 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. Coca Cola, is peddling two brands in India- Coke and Thums -Up

Bina Nusantara University 5 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 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 The Nestle makes ice cream in Dubai and soup and cereals in Saudi Arabia, makes yogurt in Egyptian, and makes chocolate in Turkey

Bina Nusantara University 6 Global Marketing Management Benefit of Global marketing Transfer of experience and know-how across countries through improved coordination and integration of marketing activities is also cited as a global operations. Unilever successfully, Its South African subsidiary developed Impulse body, And A European branch developed a detergent that Cleaned effectively in European hard water.

Bina Nusantara University 7 Planning for Global Markets Is there a difference between planning for a domestic company and for an international company? Planning is a commitment of resources to a country market to achieve specific goals. International Corporate Planning International Strategic Planning International Tactical Planning

Bina Nusantara University 8 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. Foreign market opportunities do not always parallel corporate objectives; One market may offer immediate profit, but have a poor long-run outlook, while another may offer the reverse.

Bina Nusantara University 9 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.

Bina Nusantara University 10 The 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 Implementation and control Environmental factors, company character, screening criteria Matching mix requirements Marketing plan development Implementation, Evaluation, control

Bina Nusantara University 11 Alternative Market-Entry Strategies Internet Exporter Importer Distributor Direct Sales Licensing and Franchising Strategic alliances Joint ventures and consortia Direct foreign investment Greater control And greater risk exporting Contractual agreements strategic alliances ownership

Bina Nusantara University 12 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.

Bina Nusantara University 13 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 market- entry strategies are important avenues to global marketing that must be implemented in the planning and organization of global marketing management.