Global Marketing Management Planning and Organization

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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

• 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

• 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

• A licensing arrangement where the licensor grants the licensee the right to do business in a prescribed manner. – The franchisee benefits from the...
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