Leading, organizing, and controlling the global marketing effort

© 2005 Prentice Hall 16-1

Leading, Organizing, and Controlling the

Global Marketing Effort

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Leadership

The leader’s task is to articulate– Beliefs– Values– Policies– Intended geographical scope of activities

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Leadership and Core Competence

Executives were judged on their ability to identify, nurture, and exploit the organization’s core competencies in the 1990’sCore competencies must– Provide potential access to a wide variety of

markets– Make a significant contribution to the perceived

customer benefits– Be difficult to imitate

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Organization

The goal is to find a structure that:– Enables the company to respond to relevant

market environment differences– Ensures the diffusion of corporate knowledge

and experience throughout the entire system

Organization’s must balance:– The value of centralized knowledge and control– The need for individualized response to local

markets

© 2005 Prentice Hall 16-5

Organization

In global marketing there is not a single best structure

Leading-edge global competitors share one key organizational design characteristic:– Structure is flat and simple

In the 21st century corporations will have to find new, more creative ways to organize– Must be flexible, efficient, and responsive to meet the

demands of globalizing markets

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Patterns of International Organizational Development

Organizations vary in:– Size– Potential of targeted global markets– Local management competence

Conflicting pressures may arise– For product and technical knowledge– Functional area expertise– Area and country knowledge

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International Division Structure

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International Division Structure

Four factors that lead to this structure– Top management’s commitment to global operations

has increased enough to justify the position– Complexity of international operations requires a single

organizational unity– The firm has recognized the need for internal

specialists to deal with the demands of global operations

– Management recognizes the importance of proactively scanning the global horizon for opportunities and threats

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Regional Management Centers

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Geographical and Product Division Structures

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The Matrix Design

Product or business, function, area, and customer know-how are simultaneously focused on the organization’s worldwide marketing objectives

Management must achieve organizational balance that brings together different perspectives and skills to accomplish organizational objectives

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The Matrix Design

Geographic knowledge – understanding of economic, social, political, and governmental market and competitive dimensions

Product knowledge and know-how – Product managers that have a worldwide responsibility can achieve new levels of product competency

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The Matrix Design

Functional competence – corporate staff with worldwide responsibility contributes toward the development of functional competence on a global basis

Knowledge of customer or industry and its needs – staff with responsibility for serving industries on a global basis assist organizations in their efforts to penetrate specific customer markets

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The Matrix Design

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Lean Production: Organizing the Japanese Way

Compares craft production, mass production, and lean production– Craft production meant one worker created one product– Mass production gained advantages because one

worker could do far more specialized work do to the moving assembly line

– Lean production uses less factory space, smaller inventories, and quality control methods, increased efficiency by 50% over typical mass production

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Global Management Control

Control is defined as the process by which managers ensure that resources are used effectively and efficiently in the accomplishment of organizational objectivesPlanning process can be divided into two phases– Strategic planning is selection of product and market

opportunities– Operational planning is the process in which strategic

product or market objectives are translated into specific projects and programs

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Global Management Control

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Formal Control Methods

Planning– Determines desired sales and profit objectives

and projected marketing program expenditures in unit and money terms

Budgeting– Expresses the objectives and expenditures of

planning in a formal document

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Influences on Marketing Budgets

Market Potential – how large is the potential marketCompetition – what is the level of competition in the marketImpact of Substitute Products – are there substitute products available in the marketProcess – how are performance objectives determined

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The Global Marketing Audit

A comprehensive, systematic examination of the marketing environment and company objectives, strategies, programs, policies, and activities– Tool for evaluating and improving company or business

unit operations

Characteristics:– Formal and systematic– Conducted periodically

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The Global Marketing Audit

Internal– Conducted in-house– Provides critical understanding of firm and

industry, but may lack objectivity

Independent– Conducted by person or firm free of influence

from organization being audited– Provides objectivity but may lack industry

expertise

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Setting Objectives and Scope of the Audit

One of the major tasks is data collection, a detailed plan is needed for– Interviews– Secondary research– Review of internal documents

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Conducting the Audit

Meet with company executives and auditor to determine objectives, coverage, depth, data sources, report format, and time period

Gather data

Prepare and present the report

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Components of a Marketing Audit

The marketing environment audit

The marketing strategy audit

The marketing organization audit

The marketing system audit

The marketing productivity audit

The marketing function audit

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Conclusion

Get directly into a job outside your home country or into a multicountry headquarters job in a global company

Get company experience in an industry that prepares you for promotion to a job with multicountry responsibility or to an assignment outside your home country

THANK YOU!

© 2005 Prentice Hall 16-26