Chapter planning, organization, and control of global marketing operations. After studying this chapter you will be able to understand: After studying this chapter you will be able to understand: Local market characteristics that affect the advertising and promotion of products, the strengths and weaknesses of sales promotions and public relations in global marketing, when global advertising is most effective; when modified advertising is necessary,...
Trang 2Chapter Overview
1 Global Strategic Marketing Planning
2 Key Criteria in Global Organizational Design
3 Organizational Design Options
4 Organizing for Global Brand Management
5 Life Cycle of Organizational Structures
6 Control of Global Marketing Efforts
Trang 3• The capstone of a company’s global marketing
activities will be its marketing plan.
• To implement its global plans effectively, a company needs to reflect on the best organizational setup that enables it to successfully meet the threats and
opportunities posed by the global marketing arena.
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 4• Global marketers must confront organizational
issues such as:
• What is the proper communication and reporting structure?
• Who within our organization should bear responsibility for each of the functions that need to be carried out?
• How can we as an organization leverage the competencies and skills of our individual subsidiaries?
• Where should decision-making authority belong for the various areas?
Trang 51 Global Strategic Marketing Planning
• The content of a global strategic marketing plan
usually covers four areas:
1 Market situation analysis
2 Objectives and targets
3 Strategies
4 Action plans
• Bottom-Up versus Top-Down Strategic Planning
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 61 Global Strategic Marketing Planning
• Pitfalls
Marketing plans can go wrong!
The top stumbling blocks are:
1 Lack of information of the right kind
2 Too few courses of action; too little discussion of
alternatives
3 Unrealistic objectives
4 Failure to separate short/long term plans
5 Lack of framework to identify strengths/weaknesses
6 Too many numbers
Trang 71 Global Strategic Marketing Planning
7 Lack of framework to define marketplace threats and
opportunities
8 Senior management de-emphasizing or forgetful
about strategic/long-range plans
9 Too little cooperation between
headquarters/subsidiaries or among subsidiaries
10 Too much information of the “wrong kind”
11 Too much planning jargon
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 82 Key Criteria in Global Organizational
Design
• Environmental Factors
– Competitive Environment
– Rate of Environmental Change
– Regional Trading Blocs
– Nature of Customers
Trang 92 Key Criteria in Global Organizational
– Skills and Resources within the Company
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 103 Organizational Design Options
• International Division Structure
• Global Product Division Structure
(See Exhibit 17-1.)
Trang 11Exhibit 17-1: Organizational Structure of
Henkel:
Example of a Global Product Structure
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 123 Organizational Design Options
• Geographic Structure (Exhibit 17-2)
– Country-Based Subsidiaries
– New Role of Country Managers: Country managers of the twenty-first century should have the following five profiles:
Trang 13Exhibit 17-2: Heinz Company:
Example of a Geographic Structure
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 14Exhibit 17-3: Job Description of Japan Country Manager at Twitter
Trang 153 Organizational Design Options
• Matrix Structure (Exhibit 17-4)
– The matrix structure explicitly recognizes the
multidimensional nature of global strategic decision
Trang 16Exhibit 17-4: Nestlé’s Organizational Setup
Trang 173 Organizational Design Options
• The Global Network Solution
– The networked global organization is sometimes also referred to as a transnational.
– In the network model, each national unit can be
viewed as a source of ideas, skills, capabilities, and knowledge that can be harnessed for the benefit of the total organization
(See Exhibit 17-5.)
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 18Exhibit 17-5:
Guidelines on Global Virtual Teamwork
Trang 194 Organizing for Global Brand Management
• Global Branding Committee
– Usually made up of top-line executives from corporate (or regional) headquarters and local subsidiaries
Trang 204 Organizing for Global Brand Management
• Global Brand Manager
To the global brand manager to be effective:
– The top of the organization is committed to branding.– There is a solid strategic planning process in place.– There is a need to travel to learn about local
management and best practices
– There is a system to identify, mentor, and train
prospects who can fill the role
• Informal, Ad-hoc Branding Meetings
Trang 215 Life Cycle of Organization Structures
• Companies need to adapt organizations
– existing structures too rigid or complex
– environmental changes
– managers learn new skills or new senior management
is brought in
– rethinking organizational structure
– pursuit of new strategic opportunities or directions
• Successful restructuring takes time, planning, and resources
• Fundamental cultural change often needed.
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 225 Life Cycle of Organization Structures
• Several management theorists attempted to devise the “right” fit between the MNC’s environment
(internal and external) and the organizational setup.
• An in-depth study showed that the key challenge for MNCs is building and sustaining the right
management process instead of looking for the
proper organizational structure.
• Country and regional managers must look at
strategic issues from multiple perspectives—a
“glocal” mindset
Trang 23Exhibit 17-6: Stopford-Wells International
Structural Stages Model
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 246 Control of Global Marketing Efforts
• Formal (“Bureaucratic”) Control Systems
– Establishing Standards (Metrics)
• Behavior- and outcome-based
– Measuring and Evaluating Performance
– Analyzing and Correcting Deviations
Trang 256 Control of Global Marketing Efforts
• Informal Control Methods
– Corporate Culture:
• Clan-based cultures and market-based cultures
– To shape a shared vision, cultural values should have three properties:
• Clarity
• Continuity
• Consistency
– Human Resource Development
Chapter 17 Copyright © 2017 John Wiley & Sons,
Trang 266 Control of Global Marketing Efforts
• “Soft” versus “Hard” Levers
There are seven management tools or “levers” that companies can use to resolve the global/local
Trang 276 Control of Global Marketing Efforts
• Advice for Strategic Coherence
– Recognize the need for business asymmetry
– Adopt a bottom-up approach
– Importance of a shared vision
– Invest heavily in horizontal communication channels and information flows
– Ensure that somebody has a global overview of each product line or brand
– Need for a good mix of specialists of three types—
country, functional, and business
– Moving unit headquarters abroad seldom solves the organization’s problems
Chapter 17 Copyright © 2017 John Wiley & Sons,