Transcript
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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies Inc! "ll rights reser#e$!
Global Marketing Management:Planning and Organization
Chapter 12
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Learning Objectives
LO1 How global marketing managementdifers rom international marketingmanagement
LO2 The need or lanning to achievecom an! goalsLO3 The im ortant actors or eachalternative market entr! strateg!LO4 The increasing im ortance ointernational
strategic alliances
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Global Marketing Management
• "standardization vs#ada tation$
%&'(s
• "globalization vs#localization$
%&)(s • "globalintegration
vs# localres onsiveness$
%&&(s
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Global Marketing Management The iss*e is i the global homogenization o cons*mer tastes allow orthe global standardization o the marketing mi+
The ,nternet revol*tion o the %&&(s added a new twist to the old debate-ome com anies contin*e to believe that "global$ is the wa! to go,n man! arts o the world. cons*mers have become ickier. more
enn!/wise. or a little more nationalistic The! are s ending more o their mone! on local drinks whose 0avorsare not art o the 1oca/1ola line* The trend back toward localization is beca*se o the e2ciencies oc*stomization beca*se o the roli eration o the ,nternet and 0e+ibleman* act*ring rocesses
The debate abo*t standardization vers*s ada tation is an e+am le oethnocentrism in the 3#-#
4s global markets homogenize and diversi ! sim*ltaneo*sl!. the bestcom anies will avoid oc*sing on country as the rimar! segmentationvariableOther segmentation variables are o ten more im ortant5 or e+am le.climate. lang*age gro* . media habits. age. or income
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The 6estl7 8a!:9vol*tion 6ot evol*tion
The "6estl7 wa!$ is to dominate itsmarkets,ts overall strateg! can be s*mmarized in
o*r oints:
Think and lan longterm;ecentralize
-tick to what !o*know4da t to local tastes
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Planning or Global Markets
Planning is a s!stematized wa! o relating to the*t*re
,t is a commitment o reso*rces to a co*ntr!market to achieve s eci=c goals,t allows or ra id growth o the international
*nction and the challenges o diferent nationalmarkets,nternational corporate planning is essentiall!long term incor orating generalized goals or theenter rise as a wholeStrategic planning deals with rod*cts. ca ital.research. and the long/ and short/term goals othe com an!
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1om an! Objectives andeso*rces>oreign market o ort*nities do not alwa!s
arallel cor orate objectives and reso*rces,t ma! be necessar! to change the
objectives. alter the scale o internationallans. or abandon themOne market ma! ofer immediate ro=t b*thave a oor long/r*n o*tlook. while anotherma! ofer the reverse#Onl! when cor orate objectives are clear cans*ch diferences be reconciled efectivel!
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,nternational 1ommitment
Management needs to be re ared to make the levelo commitment re?*ired or s*ccess *l internationalo erations1ommitment afects the s eci=c internationalstrategies and decisions o the =rm4 long/term marketing lan sho*ld have realistic timegoals set or sales growth
There is a strong regional re erence or m*ltinational
com anies as the! e+ and their o erations1om etition and the ease o comm*nications isorcing managers to make commitments to global
marketing
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Phase %: Preliminar! 4nal!sis and -creening
Phase @: ;e=ning Target Markets and4da ting the Marketing Mi+
4 critical =rst ste in the lanning rocess is deciding in which e+isting co*ntr!market to make a market investment4 com an!As strengths and weaknesses. rod*cts. hiloso hies. modes oo eration. and objectives m*st be matched with a co*ntr!As ?*alities>irst. co*ntries are anal!zed and screened to eliminate those that do not ofers*2cient otential or *rther consideration-econd. screening criteria are established against which ros ective co*ntriescan be eval*ated
Third. a com lete anal!sis o the environment within which a com an! lans to
o erate is made
4 more detailed e+amination o the com onents o the marketing mi+ is the*r ose o Phase @
The rimar! goal o Phase @ is to decide on a marketing mi+ adj*sted to thec*lt*ral constraints im osed b! the *ncontrollable elements o the
environment that efectivel! achieves cor orate objectives and goals The answers to three major ?*estions are generated in Phase @:• 4re there identi=able market segments that allow or common marketing
mi+ tactics across co*ntriesB• 8hich c*lt*ralCenvironmental ada tations are necessar! or s*ccess *l
acce tance o the marketing mi+B• 8ill ada tation costs allow ro=table market entr!B
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Phase D: ;evelo ing the Marketing Plan4 marketing lan is develo ed or the target market5whether it is asingle co*ntr! or a global market set
The marketing lan begins with a sit*ation anal!sis and c*lminatesin the selection o an entr! mode and a s eci=c action rogram orthe market
The s eci=c lan establishes what is to be done. b! whom. how it isto be done. and when# ,ncl*ded are b*dgets and sales and ro=te+ ectations
Phase E: ,m lementation and 1ontrol The lanning rocess is a d!namic. contin*o*s set o interactingvariables with in ormation contin*o*sl! b*ilding among hases4n eval*ation and control s!stem re?*ires er ormance/objective
actionF bringing the lan back on track sho*ld standards oer ormance all short The s!stem enco*rages the decision maker to consider all variablesthat afect the s*ccess o a com an!As lan,t rovides the basis or viewing all co*ntr! markets and theirinterrelationshi s as an integrated global *nit
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4lternative Market/9ntr!-trategies4 com an! has o*r diferent modes o oreign market entr! romwhich to select: e+ orting. contract*al agreements. strategicalliances. and direct oreign investment
The amo*nt o e?*it! re?*ired b! the com an! to *se diferent modesafects the risk. ret*rn. and control that it will have in each mode
9+hibit %@#@4lternative
Market/9ntr!-trategies
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9+ orting
9+ orting acco*nts or some %( ercent o global economicactivit!#9+ orting can be either direct or indirect:
• 8ith direct exporting . the com an! sells to a c*stomer inanother co*ntr!
•
8ith indirect exporting *s*all! means that the com an!sells to a b*!er im orter or distrib*tor in the homeco*ntr!. which in t*rn e+ orts the rod*ct
The ,nternet• The ,nternet is becoming increasingl! im ortant as a oreign
market entr! method• -ho*ld not be overlooked as an alternative market entr!
strateg! b! the small or large com an!;irect -ales
• 4 direct sales orce ma! be re?*ired artic*larl! or high/technolog! and big ticket ind*strial rod*cts
• ,t ma! mean establishing an o2ce with local andCore+ atriate managers and staf. de ending o co*rse on thesize o the market and otential sales reven*es#
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1ontract*al 4greements
Contractual agreements are long/term. non e?*it!associations between a com an! and another in a oreignmarket#1ontract*al agreements generall! involve the trans er otechnolog!. rocesses. trademarks. andCor h*man skills# ,nshort. the! serve as a means o trans er o knowledge ratherthan e?*it!#Contractual agreements are long/term. non e?*it!associations between a com an! and another in a oreignmarket1ontract*al agreements involve the trans er o technolog!.
rocesses. trademarks. andCor h*man skills# The! serve as a means o trans er o knowledge rather thane?*it!
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1ontract*al 4greements:Licensing
Licensing is a means o establishing in oreignmarkets witho*t large ca ital o*tla!s,ncl*des atent rights. trademark rights. and therights to *se technological rocesses
4dvantages• ca ital is scarce• im ort restrictions
orbid other means oentr!
• a co*ntr! is sensitiveto oreign ownershi or
• atents andtrademarks m*st be
rotected againstcancellation ornon*se#
isks• choosing the wrong
artner• ?*alit! and other
rod*ction roblems• a!ment roblems• contract en orcement
and• loss o marketing
control
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1ontract*al 4greements:>ranchising
Franchising is a ra idl! growing orm o licensing The ranchiser rovides a standard ackage o rod*cts. s!stems. andmanagement services. and the ranchisee rovides market knowledge. ca ital.and ersonal involvement in management
The combination o skills ermits 0e+ibilit! in dealing with local market conditionsand !et rovides the arent =rm with a reasonable degree o control#
The ranchiser can ollow thro*gh on marketing o the rod*cts to the oint o=nal sale,t is an im ortant orm o vertical market integration
The ranchise s!stem rovides an efective blending o skill centralization ando erational decentralization,n s ite o the economic downt*rn. ranchising is still e+ ected to be the astestgrowing market/entr! strateg!>ranchises were o ten among the =rst t! es o oreign retail b*siness to o en inthe emerging market economies o eastern 9*ro e. the ormer re *blics o *ssia.and 1hina
The ranchising s!stem combines the knowledge o the ranchiser with the localknowledge and entre rene*rial s irit o the ranchisee
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-trategic ,nternational 4lliances-,4s4 strategic international alliance (SIA) is a b*sinessrelationshi established b! two or more com anies tocoo erate o*t o m*t*al need and to share risk in achievinga common objective-trategic international alliances are so*ght as a wa! toshore * weaknesses and increase com etitive strengthsFcom lementarit! is ke!#>irms enter into -,4s or several reasons:
• o ort*nities or ra id e+ ansion into new markets• access to new technolog!• more e2cient rod*ction and innovation• red*ced marketing costs• strategic com etitive moves and• access to additional so*rces o rod*cts and ca ital#
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-trategic ,nternational 4lliances:,nternational Ioint Jent*res ,IJs
4 joint ent!re is diferent rom other t! es ostrategic alliances or collaborative relationshi s inthat a joint vent*re is a artnershi o two ormore artici ating com anies that have joined
orces to create a se arate legal entit!#>o*r characteristics de=ne joint vent*res:
• IJs are established. se arate. legal entities• the! acknowledge intent b! the artners to share in the
management o the IJ• the! are artnershi s between legall! incor orated
entities and not between individ*als and• e?*it! ositions are held b! each o the artners
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-trategic ,nternational 4lliances:1onsortia
1onsortia are similar to joint vent*res ande+ce t or two *ni?*e characteristics:
• the! t! icall! involve a large n*mber oartici ants
• the! re?*entl! o erate in a co*ntr! or market inwhich none o the artici ants is c*rrentl! active
1onsortia are develo ed to ool =nancial andmanagerial reso*rces and to lessen risksOne =rm *s*all! acts as the lead =rm. or thenewl! ormed cor oration ma! e+istinde endentl! o its originators
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;irect >oreign ,nvestmentDirect foreign investment is direct investment within a oreign co*ntr!1om anies ma! invest locall! to:
• ca italize on low cost labor• avoid high im ort ta+es• red*ce the high costs o trans ortation to market• gain access to raw materials and technolog! or• as a means o gaining market entr!
>irms ma! either invest in or b*! local com anies or establish new o erationsacilities
Several actors have been o*nd to in0*ence the str*ct*re and er ormanceo direct investments:
• timing5=rst movers have advantages b*t are more risk!• the growing com le+it! and contingencies o contracts• transaction cost str*ct*res• technolog! and knowledge trans er• degree o rod*ct diferentiation• the revio*s e+ eriences and c*lt*ral diversit! o ac?*ired =rms• advertising and re *tation barriers
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Organizing or Global1om etition
1om anies are *s*all! str*ct*red aro*ndone o three alternatives
• global rod*ct divisions res onsible or rod*ctsales thro*gho*t the world
• geogra hical divisions res onsible or all rod*ctsand *nctions within a given geogra hical area
• a matri+ organization consisting o either o thesearrangements with centralized sales andmarketing r*n b! a centralized *nctional staf. ora combination o area o erations and global
rod*ct management
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Loc*s o ;ecision
elates to where decisions will be made. b!whom. and b! which methodManagement olic! m*st be e+ licit abo*t whichdecisions are to be made at which levelMost com anies limit the amo*nt o mone! tobe s ent at each level;ecision levels or determination o olic!.strateg!. and tactical decisions m*st beestablished
Tactical decisions are *s*all! made at the lowestossible level
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1entralized vers*s ;ecentralizedOrganizations
Organizational atterns or the head?*artersA activities o m*ltinational =rms*s*all! =t into one o three categories:
• 1entralized• egionalized• ;ecentralized
The advantages o centralization are:•
the availabilit! o e+ erts at one location• the abilit! to e+ercise a high degree o control on both the lanning and im lementation
hases• the centralization o all records and in ormation
-ome com anies im lement e+treme decentralization b! giving selectingcom etent local managers *ll res onsibilit! or national or regional o erations9ven tho*gh rod*ct decisions ma! be highl! centralized. s*bsidiaries ma! have
a s*bstantial amo*nt o local in0*ence in ricing. advertising. and distrib*tiondecisions, a rod*ct is c*lt*rall! sensitive. the decisions are more likel! to bedecentralized
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