Unit Viii Global Marketing Management

Global marketing management:
planning and organization

unit viii
agenda:
1. Give the definition of the following terms:
• Corporate planning
• Strategic planning
• Tactical planning
• Direct exporting
• Indirect exporting
• Licensing
• Franchising
• Strategic international alliance (SIA)
• Joint venture
agenda:
2. How does strategic planning for international marketing differ
from that for domestic marketing?
3. Discuss the benefits to an MNC of accepting the global market
concept. Explain the three points that define a global approach to
international marketing.
4. Discuss the effect of shorter product life cycles on a company’s
planning process.
5. What is the importance of collaborative relationships to
competition?
6. How will entry into a developed foreign market differ from entry
into a relatively untapped market?
7. Why do companies change their organizations when they go
from being an international to a global company?
8. Compare the organizational implications of joint ventures versus
licensing.
•Corporate Planning
is essentially long term incorporating generalized
goals for the enterprise as a whole
• Strategic Planning
conducted at the highest levels of management
and deals with products, capital, research, and the
long and short-term goals of the company
• Tactical Planning
pertains to specific actions and to the allocation of
resources used to implement strategic planning
goals in specific markets
• Direct Exporting
The company sells to a customer in another
country
• Licensing
To let a local company use a firm's trademark/patent
against a fee.
• Franchising
Similar to licensing, is a method of distributing products
or services involving a franchisor, who establishes the
brand's trademark or trade name and a business system,
and a franchisee, who pays a royalty and often an initial
fee for the right to do business under the franchisor's
name and system
• Strategic International Alliance (SIA)
Is a business relationship established by two or more
companies to cooperate out of mutual need and to share
risk in achieving a common objective
•Joint Venture
a partnership of two or more participating companies
that join forces to create a separate legal entity
2. How does strategic planning for international
marketing differ from that for domestic
marketing?
Domestic marketing refers to carrying
out marketing activities within the
national boundaries. It requires less
investment as compared to international
marketing. On the other hand
International marketing refers to
carrying out marketing activities outside
the national boundaries. It requires more
investment as compared to domestic
marketing.
3. Discuss the benefits to an MNC of
accepting the global market
concept. Explain the three points
that define a global approach to
international marketing.
Major objective for MNC is the discipline imposed by the process. Once you've already
planned, you have the framework for analyzing marketing problems and opportunities
and a basis for coordinating info from different country markets. Process of planning
as important as the plan itself because you must take all factors into account.
1. Define company's objectives and resources. May need to change objectives for
foreign market, must reconcile differences.
2. Must decide if ready for level of commitment regarding money, amount of personnel,
and determination to stay in market long enough to receive return on investments
3. Planning is essential to success.

4. Discuss the effect of shorter
product life cycles on a company’s
planning process.
1. A company no longer can introduce a new
product with the expectation of dominating
the market for years while the idea spreads
slowly through world markets
2. Company must maximize sales quickly to

recover R&D costs and generate product by
offering products globally
3. Many firms are entering collaborative

relationships to achieve flexibility and speed
and to solve weaknesses in manufacturing,
technology or distribution
5. What is the importance of collaborative
relationships to competition?
These are relationships between
companies who cooperate with each
other for mutual benefit. This is the
same mindset that characterises an
approach to management known as
relational exchanges, which occurs
both internally(among functional
departments such as business units,
subsidiaries and employees) and
externally(among customers,
suppliers, competitors, government
agencies etc).
6.How will entry into a developed foreign market
differ from entry into a relatively untapped
market?
The differences between entering a fully developed
market and an untapped foreign market are many and
extremely varied. Some of these differences are channels
of distribution that may or may not be developed.
Governmental attitudes toward business, foreigners, and
industry may be very liberal in a growing economy, while
an established market may be very restrictive.
Communication and transportation may be highly limited
in untapped markets and highly developed in successful
countries. The amount of capital, banks, and exchange-
rate systems will vary according to the market's
development. Finally, the degree and amount of
competition will vary accordingly. To this list, endless
factors could be added such as cost of entering the
market, social customs, laws, etc.
7. Why do companies change their
organizations when they go from
being an international to a global
company?
The most common goal of companies

going international is to acquire more
customers, boost their sales, and
increase their revenues. By entering a
new country, your company gets
access to customers that were not on
your radar yet.
8. Compare the
organizational implications
of joint ventures versus
licensing
Joint ventures involve the
partners in a new venture and
usually require significant
inputs of both capital and
management. In licensing, the
companies retain separate
identity. Usually the licensor is
little affected by his licensing
actions.
Thank you!

Unit Viii Global Marketing Management

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Global marketing management:

planning and organization

3. Planning is essential to success.

2. Company must maximize sales quickly to

3. Many firms are entering collaborative

The most common goal of companies

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