1 / 25

Chapter 6 Strategic Planning

0. Chapter 6 Strategic Planning. Global Marketing. 0. Globalization reflects a business orientation which believes that:. Exhibit 6.1: Global Marketing Evolution. 0. Global Marketing. 0. Globalization drivers Market factors – Cost factors – Environmental factors –

hamby
Download Presentation

Chapter 6 Strategic Planning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 0 Chapter 6 Strategic Planning

  2. Global Marketing 0 • Globalization reflects a business orientation which believes that:

  3. Exhibit 6.1: Global Marketing Evolution 0

  4. Global Marketing 0 • Globalization drivers • Market factors – • Cost factors – • Environmental factors – • Competitive factors –

  5. Exhibit 6.3 – The Global Landscape by Industry and Market 0

  6. The Strategic Planning Process 0 • Formal strategic planning contributes to both financial performance as well as non financial objectives such as:

  7. The Strategic Planning Process 0 • Three broad dimensions to be kept in mind while undertaking formal strategic planning: • The costs in terms of management time and process realignment.

  8. Exhibit 6.4 - Global Strategy Formulation 0

  9. The Strategic Planning Process 0 • Understanding and adjusting the core strategy • The strategic business unit (SBU) represents groups organized around product market similarities based on: • Requires the participation of executives from different functions.

  10. The Strategic Planning Process 0 • Market and competitive analysis • Help balance risks, resource requirements, competitive economies of scale, and profitability to gain stronger long-term positions. • Internal analysis

  11. The Strategic Planning Process 0 • Formulating a global marketing strategy

  12. Exhibit 6.5 - Competitive Strategies 0

  13. The Strategic Planning Process 0 • Country-market choice • A market expansion policy will determine the allocation of resources among various markets; basic alternatives being concentration and diversification. • Factors that determine country market selection:

  14. Exhibit 6.7 - Factors Affecting the Choice between Concentration and Diversification Strategies 0

  15. The Strategic Planning Process 0 • Segmentation • Allows global marketers to take advantage of the benefits of standardization while addressing the unique needs and expectations of a specific target group.

  16. Exhibit 6.8 - Bases for Global Market Segmentation 0 Bases for InternationalMarket Segmentation Environmental Variables Marketing Management Variables Geographic Variables Political Variables Economic Variables Cultural Variables Product Variables Promotion Variables Price Variables Distribution Variables

  17. The Strategic Planning Process 0 • Global marketing program development - Marketing related decisions will have to be made in four areas: • The degree of standardization in the product offering. • Marketing approach - • Location and extent of value-adding activities. • Competitive moves -

  18. The Strategic Planning Process 0 • Challenges of global marketing • Insufficient research and the tendency to over-standardize. • Local resistance in the form of not-invented-here syndrome (NIH), which occurs when country organizations are not part of the planning process, or if adoption is forced on them by headquarters.

  19. The Strategic Planning Process 0 • How to avoid the NIH syndrome • Ensure that local managers participate in the development of global brand marketing strategies. • Maintain a product portfolio that includes local as well as regional and global brands.

  20. The Strategic Planning Process 0 • Localizing global marketing • Management processes • Globalization enhances the flow of information, leading to idea exchange and strengthening of organizational values. • Coordinate and leverage resources of the corporation. • Minimize the influence of the NIH syndrome by using motivational policies.

  21. The Strategic Planning Process 0 • Localizing global marketing • Organization structures • The matrix structure is considered more effective in today’s global marketplace.

  22. The Strategic Planning Process 0 • Localizing global marketing • Corporate culture • The management development system has to be transparent; non-national executives should have an equal chance for the fast track to top management.

  23. The Local Company in the Global Environment 0 • The degree and strength of globalization in an industry will determine the pressure that the local marketer will be under. • Multiple strategies are available to local marketers when global markets and marketers challenge them.

  24. Exhibit 6.10 - Competitive Strategies for Local Companies 0

  25. The Local Company in the Global Environment 0 • The following six-part strategy for success has been proposed: • Create customized products and services. • Utilize the latest technology for advantage. • Exploit low-cost labor.

More Related