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Chapter 12 – Global Marketing Management
12-1
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,
2. Not to be overlooked in this chapter are the various alternative market entry strategies. It is important
Chapter 12 – Global Marketing Management
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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
Discussion Questions
1.
Define:
Licensing
Corporate planning
Franchising
Direct exporting
Joint Venture
Strategic planning
Indirect exporting
SIA
Tactical planning
2. Define strategic planning. How is strategic planning different for international marketing than
domestic marketing?
Chapter 12 – Global Marketing Management
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The principles of planning are not in themselves different between international and domestic
3. Discuss the benefits to an MNC of accepting the global market concept. Explain three points that
define a global approach to international marketing.
(1) Identification of market segments that cut across countries, (2) potential economies of scale in
4. Discuss the effect of shorter product life cycles on a company’s planning process.
Global competition is placing new emphasis on some basic tenets of business. It is reducing time
frames and focusing on the importance of quality, competitive prices, and innovative products. Time
is becoming a precious commodity for business, and expanding technology is shortening product life
5. What is the importance of collaborative relationships to competition?
Chapter 12 – Global Marketing Management
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The accelerating rate of technological progress, market demand created by global industrialization,
and the creation of new middle classes will result in tremendous potential in global markets. But,
along with this surge in global demand comes an increase in competition as technology and
6. In phases one and two of the international planning process, countries may be dropped from further
consideration as potential markets. Discuss some of the conditions in each phase that may exist in a
country that would lead a marketer to exclude a country.
In phase one of the planning process, there are a host of reasons why a country would no longer be
considered. On balance, those countries that do not offer sufficient potential for further consideration
7. Assume that you are the director of international marketing for a company producing refrigerators.
Select one country in Latin America and one in Europe and develop screening criteria to use in
evaluating the two countries. Make any additional assumptions about your company that are
necessary.
Chapter 12 – Global Marketing Management
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© 2020 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
This is a library-type project. Whatever the details of the screening criteria, the major points that
should be considered are: (1) company objectives and goals, (2) product-use characteristics, (3)
country environmental characteristics.
8. “The dichotomy typically drawn between export marketing and overseas marketing is partly fictional;
from a marketing standpoint, they are but alternative methods of capitalizing on foreign market
opportunities.” Discuss.
9. How will entry into a developed foreign market differ from entry into a relatively untapped market?
10. Why do companies change their organizations when they go from being an international to a global
company?
11. Formulate a general rule for deciding where international business decisions should be made.
Chapter 12 – Global Marketing Management
© 2020 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
International business decisions should reflect the culture of the country in which they will be
implemented. Thus, the decision should be as close to the country where it is to be implemented as
possible.
12. Explain the popularity of joint ventures.
Joint ventures have become popular for a number of reasons. One important marketing reason is to
gain access to markets. Nearly all of the developing countries, and many developed countries, require
some degree of local participation for operating in their country. Mergers with distributor companies
13. Compare the organizational implications of joint ventures versus licensing.
14. Visit the homepages of Maytag Corporation http://www.maytag.com/ and the Whirlpool Corporation
15. Using the sources in question above i.e., http://www.maytag.com/) and http://www.whirlpool.com/,
list the different alternative entry modes each uses.
16. Visit the Nestlé Corporation homepage http://www.nestle.com and Unilever N.V.
http://www.unilever.com/ and compare their strategies towards international markets. In what ways to
