Global MarketingGlobal Marketing

Strategic PlanningStrategic Planning

Global MarketingGlobal Marketing

“…“…the world is becoming more the world is becoming more homogenous…”homogenous…”

““...distinctions between national ...distinctions between national markets are fading and may markets are fading and may disappear…”disappear…”

Core Business StrategyCore Business Strategy

CountryCountryAA

CountryCountryBB

CountryCountryCC

CountryCountryDD

Develop CoreDevelop CoreBusiness StrategyBusiness Strategy

InternationalizeInternationalizethe Strategythe Strategy

GlobalizeGlobalizethe Strategythe Strategy

Global Marketing EvolutionGlobal Marketing Evolution

Globalization DriversGlobalization Drivers

Market FactorsMarket Factors new consumer groups, developed new consumer groups, developed

infrastructures, globalization of infrastructures, globalization of distribution channels, cross-border distribution channels, cross-border retail alliancesretail alliances

Cost FactorsCost Factors avoiding cost inefficiencies and avoiding cost inefficiencies and

duplicated effortsduplicated efforts

Globalization DriversGlobalization Drivers Environmental FactorsEnvironmental Factors

reduced governmental barriers, reduced governmental barriers, rapid technological evolutionrapid technological evolution

Competitive FactorsCompetitive Factors rapid product innovation, rapid product innovation,

introduction, distributionintroduction, distribution

Assessment and Adjustment of Core StrategyAssessment and Adjustment of Core StrategyMarket/Competitive Analysis - Internal AnalysisMarket/Competitive Analysis - Internal Analysis

Assessment and Adjustment of Core StrategyAssessment and Adjustment of Core StrategyMarket/Competitive Analysis - Internal AnalysisMarket/Competitive Analysis - Internal Analysis

Formulation of Global StrategyFormulation of Global StrategyChoice of Target Countries, Segments, and Competitive StrategyChoice of Target Countries, Segments, and Competitive Strategy

Formulation of Global StrategyFormulation of Global StrategyChoice of Target Countries, Segments, and Competitive StrategyChoice of Target Countries, Segments, and Competitive Strategy

Development of Global Marketing ProgramDevelopment of Global Marketing ProgramDevelopment of Global Marketing ProgramDevelopment of Global Marketing Program

ImplementationImplementationOrganizational Structure - ControlOrganizational Structure - Control

ImplementationImplementationOrganizational Structure - ControlOrganizational Structure - Control

The Strategic Planning The Strategic Planning ProcessProcessGlobal Strategy FormulationGlobal Strategy Formulation

The Strategic Planning The Strategic Planning ProcessProcess

Understanding and adjusting the core Understanding and adjusting the core strategy begins with a clear definition of strategy begins with a clear definition of the business for which the strategy is to be the business for which the strategy is to be developeddeveloped

The Strategic Business UnitThe Strategic Business Unit Based on product market similaritiesBased on product market similarities

Similar needs or wants to be metSimilar needs or wants to be met Similar end user customers to be targetedSimilar end user customers to be targeted Similar products or services used to meet needs of Similar products or services used to meet needs of

specific customersspecific customers

Market and Competitive Market and Competitive AnalysisAnalysis

First, understand the structure of the First, understand the structure of the global market industry; the common global market industry; the common features of customer requirements features of customer requirements and choice factorsand choice factors

Internal analysisInternal analysis Examine the readiness and capability of Examine the readiness and capability of

the firm to undertake strategic moves the firm to undertake strategic moves with its with its current resources.current resources.

Formulating Global Marketing Formulating Global Marketing StrategyStrategy

Formulation begins with a series of Formulation begins with a series of strategic decisionsstrategic decisions

Choice of competitive strategyChoice of competitive strategy Cost leadershipCost leadership DifferentiationDifferentiation FocusFocus

Formulating Global Marketing Formulating Global Marketing StrategyStrategy

Country markets choicesCountry markets choices Concentration or diversificationConcentration or diversification Factors in country markets selectionFactors in country markets selection

The stand-alone attractiveness of the The stand-alone attractiveness of the marketmarket

Global strategic importance of the marketGlobal strategic importance of the market Possible synergies offered by the marketPossible synergies offered by the market

Competitive StrategiesCompetitive Strategies

CostCostLeadershipLeadership

BroadBroadDifferentiationDifferentiation

BroadBroadDifferentiationDifferentiation

FocusFocusFocusFocus

Source of Competitive AdvantageSource of Competitive Advantage

Low CostLow Cost DifferentiationDifferentiation

IndustrywideIndustrywide

SingleSingleSegmentSegment

CompetitiveCompetitiveScopeScope

Market Segment AMarket Segment A

Market Segment BMarket Segment B

Market Segment CMarket Segment C

Segmentation Segmentation

Segment ASegment ASegment ASegment A

Segment BSegment BSegment BSegment B

Segment CSegment CSegment CSegment C

Single or Multiple Segment Single or Multiple Segment DecisionDecision

Single,Single, Multiple Multiple

ororAllAll

Segments ? Segments ?

EnvironmentalVariables

EnvironmentalVariables

MarketingManagement

Variables

MarketingManagement

Variables

GeographicVariables

GeographicVariables

PoliticalVariables

PoliticalVariables

EconomicVariables

EconomicVariables

CulturalVariables

CulturalVariables

PromotionVariables

PromotionVariables

ProductVariables

ProductVariables

PriceVariables

PriceVariables

DistributionVariables

DistributionVariables

Bases for Global Market SegmentationBases for Global Market Segmentation Bases for InternationalMarket Segmentation

Bases for InternationalMarket Segmentation

Global Marketing Program Global Marketing Program DevelopmentDevelopment

Development DecisionsDevelopment Decisions Product offeringProduct offering

The degree of standardization and The degree of standardization and adaptation in the product offeringadaptation in the product offering

The marketing approachThe marketing approach The marketing program beyond the product The marketing program beyond the product

variablevariable

Global Marketing Program Global Marketing Program DevelopmentDevelopment

Development DecisionsDevelopment Decisions The location and extent of value-adding The location and extent of value-adding

activitiesactivities Pooling productionPooling production Exploiting factor costs or capabilitiesExploiting factor costs or capabilities Strategic alliancesStrategic alliances Concurrent engineeringConcurrent engineering

Competitive moves to be madeCompetitive moves to be made Cross-subsidization using resources accumulated in Cross-subsidization using resources accumulated in

one market to wage a competitive battle in another.one market to wage a competitive battle in another.

Implementing Global Implementing Global MarketingMarketing

Success will come from a balance Success will come from a balance between local and regional / global between local and regional / global concerns.concerns.

““Think globally, act locally” is the Think globally, act locally” is the operative phrase for global marketers operative phrase for global marketers competing in country markets.competing in country markets.

Product choices should consider Product choices should consider individual markets as well as transfer individual markets as well as transfer products from one region to another.products from one region to another.

Global Marketing Pitfalls to AvoidGlobal Marketing Pitfalls to Avoid

Insufficient local market researchInsufficient local market research The tendency to overstandardize the The tendency to overstandardize the

productproduct Inflexibility in planning and Inflexibility in planning and

implementationimplementation

Global Marketing Pitfalls to AvoidGlobal Marketing Pitfalls to Avoid

The “Not-Invented-Here” syndrome The “Not-Invented-Here” syndrome (NIH)(NIH) How to avoid the NIH syndromeHow to avoid the NIH syndrome

Ensure that local managers Ensure that local managers participate in the development of participate in the development of global brand marketing strategiesglobal brand marketing strategies

Encourage local managers to develop Encourage local managers to develop ideas for regional or global useideas for regional or global use

Localizing Global MarketingLocalizing Global Marketing Achieving a balance between in-country Achieving a balance between in-country

managers and global product managers at managers and global product managers at corporate headquarters will require action corporate headquarters will require action to develop and implement a global to develop and implement a global strategy.strategy.

Management processesManagement processes Enhance the global transfer of communicationsEnhance the global transfer of communications Interchange personnel to gain experience Interchange personnel to gain experience

abroadabroad

Localizing Global MarketingLocalizing Global Marketing

Headquarters should coordinate and Headquarters should coordinate and leverage resourcesleverage resources

Permit local managers to develop Permit local managers to develop their own programs within defined their own programs within defined parametersparameters

Localizing Global MarketingLocalizing Global Marketing

Maintain a product portfolio that Maintain a product portfolio that includes local as well as regional or includes local as well as regional or global brandsglobal brands

Allow local managers control over Allow local managers control over marketing budgets to respond to marketing budgets to respond to local customer needs and counter local customer needs and counter global competitionglobal competition

Localizing Global MarketingLocalizing Global Marketing

Organization structuresOrganization structures The shift to global account managementThe shift to global account management

Corporate cultureCorporate culture The world is not one single marketThe world is not one single market Plan and execute programs on a Plan and execute programs on a

worldwide basisworldwide basis A global Identity favors no specific A global Identity favors no specific

country.country.

Thank you!!!Thank you!!!