Leading, Organizing, and

Controlling the
Global Marketing Effort

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Leadership
The leaders 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
organizations core competencies in the
1990s
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

Organizations 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 managements 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 organizations 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

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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

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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

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THANK YOU!

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