11- 0 © the mcgraw-hill companies, inc., 1999 irwin/mcgraw-hill chapter 11 global marketing...
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Chapter 11
Global Marketing Management
Planning and Organization
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Application International Companies Global Companies
Product Life Cycle Global product life cycles.All consumers want themost advanced products.
Products are in differentstages of the product life cyclein each nation.
Design International performancecriteria considered duringdesign stage.
Adjustments to productsinitially designed for domesticmarkets.
Adaptation Products are adapted toglobal wants and needs.Restrained concern forproduct suitability.
Product adaptation isnecessary in marketscharacterized by nationaldifferences.
MarketSegmentation
Segments reflect groupsimilarities. Group similarsegments together.
Fewer standardizedmarkets.Expansion of segments intoworldwide proportions.
Segments reflect differences.Customized products for eachsegments.
Many customized markets.
Acceptance ofregional/national differences.
A Comparison of Assumptions About Global and International Companies
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Application International Companies Global Companies
Competition Ability to compete in nationalmarkets is affected by afirm’s global position.
Domestic/national competitiverelationships.
Production Globally standardizedproduction.Adaptations are handledthrough modular designs.
Standardization limited byrequirements to adaptproducts to national tastes.
The Consumer Global convergence ofconsumer wants and needs.
Preferences reflect nationaldifferences.
Product Emphasis on value-enhancing distinction.
Products differentiated on thebasis of design, features,functions, style, and image.
Price Consumers prefer a globallystandardized good if itcarries a lower price.
Consumers willing to paymore for a customizedproduct.
A Comparison of Assumptions About Global and International Companies
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Application International Companies Global Companies
Promotion Global product image,sensitive to nationaldifferences and globalneeds.
National product image,sensitive to national needs.
Place Global standardization ofdistribution.
National distribution channels.
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. 265-66.
A Comparison of Assumptions About Global and International Companies
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Benefits of Global Orientation
Economies of Scale in Production & MarketingEconomies of Scale in Production & Marketing
Transfer of Experience and Know-How across CountriesTransfer of Experience and Know-How across Countries
Uniform Global ImageUniform Global Image
Control and Coordination of OperationsControl and Coordination of Operations
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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
Design Engineering Supplier Price
Target costs for each component forces marketers, designers, and engineers from all departments and suppliers to negotiate tradeoffs
Manufacturing
Continuous Cost Reduction
UNITED STATES JAPAN
SOURCE: Adapted from Ford S.Worthy, “Japan’s Smart Secret Weapon,” Fortune, August 12, 1991, p.73.
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Information derived from each phase, market research, and evaluation of program performance
International Planning Process
Phase 1Preliminary analysis and
screening: Matching company/country needs
Phase 2Adapting the
marketing mix to target markets
Phase 3Developing the
marketing plan
Phase 4Implemen-tation and
control
Environmental uncontrol-lables, company character,
and screening criteria
Matching mix requirements
Marketing plandevelopment
Implementation, evaluation, and
control
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International Planning Process
Company Character Philosophy Objectives Resources Management style Organization Financial limitations Management and
marketing skills ProductsOther
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 1 Phase 4Phase 2 Phase 3
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Alternative Market Entry Strategies
• Exporting
• Internet
• Contractual Agreements
• Licensing
• Franchising
• Joint Ventures
• Consortia
• Direct Foreign Investment
• Strategic International Alliances
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Schematic Marketing Organization Plan Combining Product, Geographic, and Functional Approaches
Company President
Director:Passenger car
marketing
Director:Truck
marketing
Research
Adv. Sales Adv. Sales Adv. Sales Adv. Sales Adv. Sales Adv. Sales
Vice President Marketing
Research
ManagerN. Americandistribution
ManagerAfrican
distribution
ManagerEuropean
distribution
ManagerAfrican
distribution
ManagerS.Americandistribution
ManagerN. Americandistribution