managing the global marketing effort

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Global organization and leadership:
Managing the
Global Marketing Effort
BY: NATALIA, CHRISTY & MUAJA, MARGARETH

2. Managing the
Global Marketing Effort
Leading
Organizing
Controlling
© 2005 Prentice Hall 16-2

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Leadership
The leader’s task is to articulate
– Beliefs
– Values
– Policies
– Intended geographical scope of activities

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Leadership and Core Competence
Executives were judged on their ability to
identify, nurture, and exploit the
organization’s core competencies in the
1990’s
Core competencies must
– Provide potential access to a wide variety of
markets
– Make a significant contribution to the perceived
customer benefits
– Be difficult to imitate

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Organization
The goal is to find a structure that:
– Enables the company to respond to relevant
market environment differences
– Ensures the diffusion of corporate knowledge
and experience throughout the entire system
Organization’s must balance:
– The value of centralized knowledge and control
– The need for individualized response to local
markets

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Organization
In global marketing there is not a single best
structure
Leading-edge global competitors share one key
organizational design characteristic:
– Structure is flat and simple
In the 21st century corporations will have to find
new, more creative ways to organize
– Must be flexible, efficient, and responsive to meet the
demands of globalizing markets

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Patterns of International
Organizational Development
Organizations vary in:
– Size
– Potential of targeted global markets
– Local management competence
Conflicting pressures may arise
– For product and technical knowledge
– Functional area expertise
– Area and country knowledge

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International Division Structure

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International Division Structure
Four factors that lead to this structure
– Top management’s commitment to global operations
has increased enough to justify the position
– Complexity of international operations requires a single
organizational unity
– The firm has recognized the need for internal specialists
to deal with the demands of global operations
– Management recognizes the importance of proactively
scanning the global horizon for opportunities and
threats

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Regional Management Centers

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Geographical and Product Division
Structures

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The Matrix Design
Product or business, function, area, and
customer know-how are simultaneously
focused on the organization’s worldwide
marketing objectives
Management must achieve organizational
balance that brings together different
perspectives and skills to accomplish
organizational objectives

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The Matrix Design
Geographic knowledge – understanding of
economic, social, political, and
governmental market and competitive
dimensions
Product knowledge and know-how –
Product managers that have a worldwide
responsibility can achieve new levels of
product competency

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The Matrix Design
Functional competence – corporate staff with
worldwide responsibility contributes toward the
development of functional competence on a global
basis
Knowledge of customer or industry and its needs –
staff with responsibility for serving industries on a
global basis assist organizations in their efforts to
penetrate specific customer markets

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The Matrix Design

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Lean Production: Organizing the
Japanese Way
Compares craft production, mass production, and
lean production
– Craft production meant one worker created one product
– Mass production gained advantages because one
worker could do far more specialized work do to the
moving assembly line
– Lean production uses less factory space, smaller
inventories, and quality control methods, increased
efficiency by 50% over typical mass production

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Global Management Control
Control is defined as the process by which
managers ensure that resources are used
effectively and efficiently in the accomplishment
of organizational objectives
Planning process can be divided into two phases
– Strategic planning is selection of product and market
opportunities
– Operational planning is the process in which strategic
product or market objectives are translated into specific
projects and programs

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Global Management Control

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Formal Control Methods
Planning
– Determines desired
sales and profit
objectives and
projected marketing
program expenditures
in unit and money
terms
Budgeting
– Expresses the
objectives and
expenditures of
planning in a formal
document

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Influences on Marketing Budgets
Market Potential – how large is the potential
market
Competition – what is the level of
competition in the market
Impact of Substitute Products – are there
substitute products available in the market
Process – how are performance objectives
determined

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The Global Marketing Audit
A comprehensive, systematic examination of the
marketing environment and company objectives,
strategies, programs, policies, and activities
– Tool for evaluating and improving company or
business unit operations
Characteristics:
– Formal and systematic
– Conducted periodically

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The Global Marketing Audit
Internal
– Conducted in-house
– Provides critical
understanding of firm
and industry, but may
lack objectivity
Independent
– Conducted by person
or firm free of
influence from
organization being
audited
– Provides objectivity
but may lack industry
expertise

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Setting Objectives and Scope of the
Audit
One of the major tasks is data collection, a
detailed plan is needed for
– Interviews
– Secondary research
– Review of internal documents

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Conducting the Audit
Meet with company executives and auditor
to determine objectives, coverage, depth,
data sources, report format, and time period
Gather data
Prepare and present the report

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Components of a Marketing Audit
The marketing environment audit
The marketing strategy audit
The marketing organization audit
The marketing system audit
The marketing productivity audit
The marketing function audit

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Conclusion
Get directly into a job outside your home
country or into a multicountry headquarters
job in a global company
Get company experience in an industry that
prepares you for promotion to a job with
multicountry responsibility or to an
assignment outside your home country

27. THANK YOU!
© 2005 Prentice Hall 16-27