1 / 17

Chapter 4 Strategic Planning In International Marketing

0. Principles of International Marketing 9th Edition. Chapter 4 Strategic Planning In International Marketing. Global Marketing. 0. Globalization reflects a business orientation which believes that: The world is becoming more homogeneous and

rgrenier
Download Presentation

Chapter 4 Strategic Planning In International Marketing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 0 Principles of International Marketing 9th Edition Chapter 4 Strategic Planning In International Marketing

  2. Global Marketing 0 • Globalization reflects a business orientation which believes that: • The world is becoming more homogeneous and • Distinctions between national markets are not only fading but would eventually disappear.

  3. Exhibit 6.1: Global Marketing Evolution 0

  4. Global Marketing 0 • Globalization drivers • Market factors – Include purchasing power, developed infrastructures, technology, globalization of distribution channels, and cross-border retail alliances. • Cost factors – Involve avoiding cost inefficiencies and duplicated efforts (inefficiencies). • Environmental factors – Include reduced governmental barriers and rapid technological evolution; • Competitive factors – Include rapid product innovation, introduction, distribution, unparalleled human capital.

  5. The Strategic Planning Process 0 • Formal strategic planning contributes to both financial performance as well as non financial objectives such as: • Raising the efficacy (sale-ability) of new product launched. • Reducing the operation cost. • Improving product quality. • Market share performance.

  6. The Strategic Planning Process 0 • Three broad dimensions to be kept in mind while undertaking formal strategic planning: • The potential benefits for the company in the short and long term. • The costs. • The presence of the necessary management resource (thinking minds) to undertake the planning endeavor.

  7. Exhibit 6.4 - Global Strategy Formulation 0

  8. Exhibit 6.5 - Competitive Strategies 0 Cost Focus Differentiation Focus

  9. When should a firm opt -sticking to current portfolio of products, OR-diversifying its portfolios with time?

  10. Exhibit 6.7 - Factors Affecting the Choice between Concentration and Diversification Strategies 0 *Lead time: the time between the initiation and completion of a production process.

  11. The Strategic Planning Process 0 • Segmentation • This approach looks at markets on a global or regional basis, thereby ignoring the political boundaries that otherwise define markets in many cases. • Allows global marketers to take advantage of the benefits of standardization while addressing the unique needs and expectations of a specific target group. • E.g., users of an brandX can be in both India and Pakistan, so for the manufacturers, segmentation is alike.

  12. Exhibit 6.8 - Bases for Global Market Segmentation 0 Bases for InternationalMarket Segmentation Environmental Variables Marketing Management Variables Geographic Variables Political Variables Economic Variables Cultural Variables Product Variables Promotion Variables Price Variables Distribution Variables

  13. The Strategic Planning Process 0 • Challenges of global marketing • Insufficient research and the tendency to over-standardize. • Inflexibility in planning and implementation. • Local resistance in the form of not-invented-here syndrome (NIH), which occurs when country organizations are not part of the planning process, or if adoption is forced on them by headquarters.

  14. The Strategic Planning Process 0 • How to avoid the NIH syndrome • Ensure that local managers participate in the development of global brand marketing strategies. • Encourage local managers to develop ideas for regional or global use. • Maintain a product portfolio that includes local as well as regional and global brands. • Allow local managers control over their marketing budgets so that they can respond to local customer needs and counter global competition.

  15. The Local Company in the Global Environment 0 • The degree and strength of globalization in an industry will determine the pressure that the local marketer will be under. • The extent to which the company’s assets are transferable will determine the opportunity dimension. • Multiple strategies are available to local marketers when global markets and marketers challenge them.

  16. Exhibit 6.10 - Competitive Strategies for Local Companies 0

  17. The Local Company in the Global Environment 0 • The following six-part strategy for success has been proposed: • Create customized products and services. • Develop approaches that overcome key obstacles. • Utilize the latest technology for advantage. • Scale up operations locally, regionally, and globally. • Exploit low-cost labor. • Invest in talent to sustain their growth and expansion.

More Related