Global Marketing Management Planning and Organization
Global Marketing Management Planning and Organization
Global Marketing Management
“Companies must learn to operate as if the world was one large market.” - Theodore Levitt (1983)
Global Marketing Management
I. II. Global vs. International Marketing Standardization vs. Adaptation Controversy
A. Benefits of Standardization 1) Cost Saving 2) Levitt’s Argument 3) Uniform Brand Image 4) Improved Coordination
Global Marketing Management
B. Advantages of Adaptation 1) Differing Use Conditions 2) Legal/Regulatory Factors 3) Different C.B. Patterns 4) The Marketing Concept
III. Global Market Segmentation
Global Segmentation Variables
Others May Be More Important
• Climate • Language Group Country • Media Habits • Age • Income
Nestle’s Way To Dominate Its Global Markets
? Think and plan long term ? Decentralize ? Stick to what you know ? Adapt to local tastes
Licensing
• The licensor permits the licensee to use its intellectual property (an intangible) in exchange for a royalty payment. • Advantages of licensing
– No capital investment, knowledge, or marketing strength – Huge profit potential, recovered costs – Minimal risk of government intervention – A stage in internationalization – Preempt market entry before competition – Increasing intellectual property rights protection
Licensing
• Disadvantages of licensing
– Licensee controls marketing function and licensor does not gain expertise in local market – No guarantee of entry after license expires – Licensee may become local and international competitor of licensor – No extension of license permitted by local government – Licensee may create quality control and marketing problems for licensor
Trademark Licensing
• Companies trade on their names and characters as a substantial source of worldwide revenue
Franchising
• A licensing arrangement where the licensor grants the licensee the right to do business in a prescribed manner.
– The franchisee benefits from the
Global Marketing Management
“Companies must learn to operate as if the world was one large market.” - Theodore Levitt (1983)
Global Marketing Management
I. II. Global vs. International Marketing Standardization vs. Adaptation Controversy
A. Benefits of Standardization 1) Cost Saving 2) Levitt’s Argument 3) Uniform Brand Image 4) Improved Coordination
Global Marketing Management
B. Advantages of Adaptation 1) Differing Use Conditions 2) Legal/Regulatory Factors 3) Different C.B. Patterns 4) The Marketing Concept
III. Global Market Segmentation
Global Segmentation Variables
Others May Be More Important
• Climate • Language Group Country • Media Habits • Age • Income
Nestle’s Way To Dominate Its Global Markets
? Think and plan long term ? Decentralize ? Stick to what you know ? Adapt to local tastes
Licensing
• The licensor permits the licensee to use its intellectual property (an intangible) in exchange for a royalty payment. • Advantages of licensing
– No capital investment, knowledge, or marketing strength – Huge profit potential, recovered costs – Minimal risk of government intervention – A stage in internationalization – Preempt market entry before competition – Increasing intellectual property rights protection
Licensing
• Disadvantages of licensing
– Licensee controls marketing function and licensor does not gain expertise in local market – No guarantee of entry after license expires – Licensee may become local and international competitor of licensor – No extension of license permitted by local government – Licensee may create quality control and marketing problems for licensor
Trademark Licensing
• Companies trade on their names and characters as a substantial source of worldwide revenue
Franchising
• A licensing arrangement where the licensor grants the licensee the right to do business in a prescribed manner.
– The franchisee benefits from the