GLOBAL MARKETING

MANAGEMENT:
PLANNING AND
ORGANIZATION
PLANNING FOR GLOBAL MARKETS
PLANNING- systematized way of relating to the future.
It is an attempt to manage the effects of external,
uncontrollable factors on the firm’s strengths, weaknesses,
objectives and goals to attain a desired end.
Planning allows for rapid growth of the international function,
changing markets, increasing competition, and the turbulent
challenges of different national markets.
It is both a process and a philosophy.
1. Global corporate planning- is essentially long term, incorporating generalized goals
for the enterprise as a whole.
2. Strategic planning- conducted at the highest levels of management and deals with
products, capital, research and the long-term and short-term goals of the company.
3. Tactical planning- or market planning, pertains to specific actions and to the
allocation of resources used to implement strategic planning goals in specific markets.
Tactical plans are made at the local level and address marketing and advertising
questions

A major advantage for a multinational corporation involved in planning is the discipline

imposed by the process.
Company Objectives and Resources
 defining objectives clarifies the orientation of the domestic and
global divisions, permitting consistent policies.
Another key to successful planning is evaluating objectives including
management’s commitment and philosophical orientation to
international business.
Foreign market opportunities do not always parallel corporate
objectives and resources.
Global commitment
The planning approach taken by a global firm affects the degree of
internationalization to which management is philosophically
committed.
After company objectives have been identified, ,management needs
to determine whether it is prepared to make the level of
commitment required for successful global operations- commitment
in terms of dollars to be invested, personnel for managing the global
organizations and determination to stay in the market long enough
to realize a return on these investment.
The Planning Process
Whether a company is marketing in several countries or is entering a foreign
market for the first time, planning is essential to success.

Phase 1: Preliminary Analysis and Screening- Matching company and country

needs.
Phase 2: Defining market segments and adapting the marketing mix
accordingly
Phase 3: Developing the marketing plan
Phase 4: Implementation and control
 Phase 1: Preliminary Analysis and Screening-
Matching company and country needs.
• critical first step is deciding in which existing country market to make a market
investment.
•A company’s strengths, weaknesses, products, philosophies, modes of operation, and
objectives must be matched with a company’s constraining factors and market potential.
•Countries are analyzed and screened to eliminate those that do not offer sufficient
potential for further consideration.
•Next, is to establish screening criteria against which prospective countries can be
evaluated.
•It is important to determine the reasons for entering the foreign market and the returns
expected from such environment
Criteria to be established
Minimum market potential
Minimum profit
Return of investment
Acceptable competitive levels
Standards of political stability
Acceptable legal requirements
Phase 2: Defining Target Markets and
Adapting the Marketing Mix
A more detailed examination of the components of the marketing mix.
Once target market are selected, the marketing mix must be evaluated in
light of the data generated in Phase 1.
Incorrect decisions at this point lead to inappropriate products for the
intended market or costly mistakes in pricing, advertising, and promotion.
Primary goal of this phase is to decide on a marketing mix adjusted to the
cultural constraints imposed by the uncontrollable elements of the
environment that effectively achieves corporate objectives and goals.
Nestle Company
 Each product manager has a country fact book analyzes in detail a
variety of culturally related questions.
As a result of the answers to these questions, Nestle produces 200
types of instant coffee.
Almost 50 million dollar a year is spent inn four research
laboratories around the world experimenting with new shadings in
color, aroma and flavor.
 Cont..
Phase 2 also permits the marketer to determine possibilities for applying
marketing tactics across national markets.
The results of the analysis in Phase 2 indicate that the marketing mix will require
such drastic adaptation that a decision not to enter a particular market is made.
1. Are there identifiable market segments that allow for common marketing mix
tactics across countries?
2. Which cultural/environmental adaptations are necessary for successful
acceptance of the marketing mix?
3. Will adaptation costs allow profitable market entry?
Phase 3: Developing Marketing Plan
At this stage, a marketing plan is developed for the target market-
whether it is a single country or a global market set.
The marketing plan begins with a situation analysis and culminates
in the selection of an entry mode and a specific action program for
the market.
Establishes what is to be done, by whom, how it is to be done, and
when.
Included are budgets and sales and profits expectations.
Phase 4: Implementation and Control
Bringing the plan back on track.
An evaluation and control system requires performance-objective
action.
Also assumes reasonable metrics of performance are accessible.