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Global Marketing Management Benefits

The watchword of the 1990s in global marketing management was “global integration vs local reactivity.” Customization is always the finest marketing strategy. Nestlé is given as an example in the text to show how significant firms are becoming multinational (global). Apart from customizing all goods and abandoning any mass production plan, the following would be considered part of Nestlé’s international strategy. A matrix organization is a kind of organization in which a centralized functional staff manages a centralized sales and marketing team. This structure is common among corporations reorganizing for global competition. This format frequently overcomes the challenges of the other types. The transfer is one of the advantages of global marketing.

Companies that reorganize for global competition frequently use this form. This one often overcomes the shortcomings of the other formats. Global diversity of marketing skills, access to the most challenging consumers, the transfer of knowledge and know-how across national borders, and financial gains from diversifying the company portfolio are all advantages of global marketing.

Relying on European tactics lowers production costs. The ability to adapt is produced by exchanging experience and know-how between nations through better marketing activity coordination and integration.

It gives marketers access to the most challenging customers—high-quality products. The diversity of markets provides additional financial benefits to many global organizations, such as the stability of revenues and operations (Stable Cash Flow). Source of Development. Brand Recognition. Scale economies are economies of scale. The domestic market in the United States is one of the markets that does not have to operate worldwide.

Strategic planning is carried out at the highest levels of management and deals with products, capital, research, and the company’s long and short-term goals.

The Cybex Company is working to create long-term, broad objectives for the company. Using corporate planning is Cybex. The top levels of management engage in strategic planning, which addresses the organization’s long- and short-term objectives as well as its products, resources, and research. Planning in this manner is tactical planning. Tactical planning, also known as market planning, relates to specific actions and resource allocations that are undertaken at the local level to accomplish strategic planning goals in particular markets and address marketing and advertising issues. Global Toys Company is developing marketing and promotion strategies for distinct local markets within its global portfolio.

Planning Process and four stages of the planning process:

Preliminary analysis and screening aimed at meeting the demands of the company and the country. Which of the following stages of the international planning process do you anticipate investigating home-country restrictions such as the political environment? Phase 1: preliminary analysis and screening to match company/country demands?

The Caliber Company is at the phase of international planning when particular budgets for its various needs and plans must be developed. What stage of the international planning process do you anticipate seeing these activities: Phase 3 consists of creating a marketing strategy. They are changing the marketing mix to suit the target market.

Creating the marketing strategy

control and execution. Before the shipment is released to many overseas customers, the production manager for Aziz Nuts assesses a recent production run against corporate requirements for quality and consistency. Which phase of the global planning process would you anticipate these actions to take place? Implementation and control phase four.

4 Market entry strategies:

Exports contribute about 10% of total world activity. When a corporation sells directly to a customer in another country, this is known as direct exporting. When a corporation sells to a buyer in its native nation, that buyer then exports the goods. Foreign market penetration requires the use of the Internet and direct sales. The Blue Flame Company (a seller of small gas heaters) recently sold 5,000 heaters to a buyer in Northern Africa. Blue Flame has used which of the following market entry strategies?

Contractual agreements are long-term, non-equity relationships between two businesses operating in different markets that are used to transfer expertise rather than money. 1) Licensing is a legal way for small and medium-sized businesses to capitalize on their intellectual property in international markets without making significant capital investments. Medicines and television programming are two examples.

When a franchiser provides a standard bundle of products, systems, and management services, and the franchise contributes market expertise, capital, and personal involvement in management, this is referred to as franchising.

With the ability to sell or create sub-franchises, the master franchise grants the franchise the rights to a particular region. Offers a helpful fusion of operational decentralization and skill centralization

Strategic international alliances: a corporate partnership formed by two or more organizations to collaborate for mutual benefit and to share risk in accomplishing a common goal, which has recently gained importance as a competitive strategy in global marketing management. International joint ventures (IJVs) are partnerships of two or more participating enterprises that have joined forces to form a different legal identity. Consortia are similar to joint ventures in that they often involve many partners and frequently operate in a country or market where none of the members is currently using; formed to pool financial and managerial resources and reduce risks. Direct foreign investment is defined as investment made within a foreign country.

Difference between joint ventures and licensing:

Caliente Computers (a Mexican computer maker) has just granted an American firm the licence to build and sell computers with the Caliente name, provided the American company satisfies and upholds Caliente’s requirements. Caliente Computers has used which of the following market entry strategies? Licensing. Licensing allows companies to get a presence in overseas markets without investing substantial sums of money. Joint ventures are partnerships formed by two or more collaborating enterprises to form a separate legal organization, avoid tariffs, reduce risk, and give up control/profits. A joint venture is a market entry mode that generally consists of cooperation between two (or more) international enterprises that form a new legal entity.

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