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Chapter 7Strategic Planning

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Global Marketing

• Globalization reflects a business orientation which believes that:• •

• Companies need to globalize their international strategies by formulating them across markets to:•

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Globalization drivers• Market factors • Reasons for the similarity in the consumers’

demand are: • • • • •

• Cost factors –

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Globalization drivers

• Environmental factors –

• ____________ or “born globals” are taking advantage of today’s more open trading regions and newer technologies

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Globalization drivers

• Competitive factors •

•

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The Strategic Planning Process

• Formal strategic planning contributes to both financial performance as well as nonfinancial objectives such as: • • • •

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The Strategic Planning Process

• Three broad dimensions need to be kept in mind are:• • •

• Soft power:

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The Strategic Planning Process

• Understanding and adjusting the core strategy•

• The strategic business unit represents groupings organized around market similarities based on:• • • •

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The Strategic Planning Process

• Market and competitive analysis• Provides global marketers with tools to:

• • • •

• Key is to understand the structure of the global industry:•

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The Strategic Planning Process

• Internal analysis•

•

• Formulating a global marketing strategy• • •

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The Strategic Planning Process

• Country-market choice• ______________ involve two measures:

• •

• Market expansion policy determines the allocation of resources among various markets•

•

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The Strategic Planning Process

• Segmentation • Allows global marketers to take advantage of

the benefits of standardization:•

•

•

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The Strategic Planning Process

• Developing the global marketing program - Marketing-related decisions will have to be made in four areas: • • Marketing approach

• Glocalization:

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The Strategic Planning Process• Location and extent of value-adding activities• Competitive moves

• Cross-subsidization:

• Challenges of global marketing•

•

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The Strategic Planning Process• Not-invented-here syndrome (NIH): Leads

to decline of global program when:•

• Localizing global marketing – • • Globalization enhances the flow of information

leading to:•

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The Strategic Planning Process• Encourage personnel interchange to gain

experience abroad•

•

• NIH syndrome can be avoided by:•

•

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The Strategic Planning Process• Maintaining a product portfolio that includes local as

well as regional and global brands•

• Localizing global marketing - Organization structures•

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The Strategic Planning Process• Matrix structure is considered more effective

in today’s global marketplace• Execute global account management

programs:• •

• Localizing global marketing –

• Affects and is affected by:

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The Strategic Planning Process• •

• The management development system has to be transparent wherein:•

• Implement compensation and mobility policies to avail the best talent regardless of job location

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The Local Company in the Global Environment

• Degree and strength of globalization in an industry determines the pressure that the local marketer will be under

• Extent to which the company’s assets are transferable determines the opportunity dimension

• Multiple strategies are available to local marketers when global markets and marketers challenge them

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The Local Company in the Global Environment

• The following six-part strategy for success has been proposed:• • • • • •