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Chapter 12 – Global Marketing Management: Planning and
Organization
Teaching Objectives
An issue facing many multinationals today is how to compete in an increasingly competitive global
market. Whether a small company or one of the giants, staying competitive means constantly re-accessing
marketing strategies. How product, promotion, distribution, and pricing strategies evolve in international
marketing is dependent on the approach to internationalization the company takes. Of the three operating
concepts that characterize a company’s international orientation, Domestic Market Extension Concept,
Multidomestic Market Concept, or Global Market Concept, the main focus of this chapter and the text is
on the Global Market Concept. We believe that regardless of the size of a company or in how many
countries it operates, it should have a global orientation. The teaching objectives of this chapter are to:
1) Present the operating concepts an international company may have and explore the idea of global
marketing management.
2) Discuss the benefits of global orientation.
3) Stress the importance of quality and cost containment in global marketing competition.
4) Examine the different types of collaborative relationships and show how these alliances are being
embraced by international companies.
5) Focus on relationship marketing and strategic international alliances as two important types of
collaborative relationships for the global marketer.
6) Stress the need for strategic planning to achieve company goals.
Comments and Suggestions
1. The subject of collaborative relationships and the subsequent discussion of relationship marketing and
strategic international alliances are important ideas to focus on in this chapter. Changes in technology,
the shortening product life cycle, competition, the rapid growth of emerging markets and the need for
cost containment as major trends in global marketing means that many firms must engage in
collaborative relationships to remain competitive. There are several good examples in the text that
illustrate how these relationships have been used.
2. Not to be overlooked in this chapter are the various alternative market entry strategies. It is important
to stress that there are a variety of ways to enter international markets and a company may use only
one or a combination depending on the goals of the company and target market characteristics.
Lecture Outline
I. Global Marketing Management
A. Global Marketing Management
B. Benefits of a Global Orientation
II. Planning for Global Markets
A. Company Objectives and Resources
B. International Commitment
C. The Planning Process
III. Alternative Market-Entry Strategies
A. Exporting
B. Contractual Agreements
1. Licensing
2. Franchising
3. Joint Ventures
4. Consortia
C. Strategic International Alliances (SIA)
D. Direct Foreign Investment
IV. Organizing for Global Competition
A. Locus of Decision
B. Centralized versus Decentralized Organizations
