Lec 18-Understanding and Reaching Global Consumers and Markets- 3

Summary

This module delves into global strategic marketing planning, emphasizing market analysis, goal setting, strategy formulation, and action plans. It discusses centralized versus decentralized planning and the importance of control systems for aligning global marketing efforts with company objectives. The module also explores emerging markets, detailing their characteristics and strategies for success, such as customization and leveraging local knowledge. It addresses how multinationals can compete with emerging market challengers and the critical decisions regarding entry timing and modes. Lastly, it examines the internet's role in global marketing, highlighting the tension between global integration and local responsiveness, and the importance of adapting to local contexts.

Takeaways

• 🌏 Global Strategic Marketing Planning involves market analysis, setting achievable goals, formulating strategies, and creating action plans to implement those strategies.
• 📈 International planning can be centralized (top-down) or decentralized (bottom-up), each with its advantages in performance monitoring and local responsiveness.
• 🛡 A control system is crucial for aligning the behavior of various parties within an organization with the company's strategic goals, comprising both formal and informal control methods.
• 🏢 Formal control systems are bureaucratic and consist of establishing standards, evaluating performance, and analyzing and correcting deviations.
• 🌱 Informal control systems rely on corporate culture, human resource development, and shared values to maintain organizational alignment and cohesiveness.
• 🔧 The balance between global and local strategies is managed through various tools or levers, including organizational structure, processes, incentives, metrics, strategy, network building, and culture.
• 🚀 Emerging Markets (EMS) are characterized by rapid growth, industrialization, and a growing middle class, attracting multinationals for expansion and revenue generation.
• 🏆 Successful strategies for firms in Emerging Markets include customization of offerings, overcoming obstacles with innovative business models, leveraging the latest technology, and utilizing cheap labor.
• 🛑 Multinationals can counter emerging market giants by going beyond low-cost sourcing, adopting local branding tactics, forming joint ventures, and investing in mass markets.
• 🕰 The timing of entry into Emerging Markets is critical, with early entrants facing risks but also potential benefits such as favorable government relations and initial high demand.
• 🌐 The Internet has transformed Global Marketing by providing a cost-efficient and accessible platform for businesses, despite structural barriers like language and cultural differences.
• 🌐 The conflict between global integration and local responsiveness in Internet marketing strategies requires a balance to ensure brand consistency while catering to local consumer preferences.

Q & A

What are the three main modules discussed in the video script?

The three main modules discussed are understanding and reaching global consumers and markets, global strategic management planning and control, and the role of the internet in global marketing strategies.

What are the four areas of global strategic marketing planning mentioned in the script?

The four areas are market situation analysis, objectives and goals, strategies formulation, and action plans.

What are the two levels of international planning discussed in the script?

The two levels of international planning are top-down (centralized) and bottom-up (decentralized).

What is the purpose of a control system in global marketing strategies?

The purpose of a control system is to ensure that the behavior of various parties within the organization aligns with the company's strategic goals.

What are the two types of control systems mentioned in the script?

The two types of control systems are formal (bureaucratic) control systems and informal control methods.

What are the characteristics of emerging markets as described in the script?

Characteristics of emerging markets include low per capita income but rapid economic development, high income inequalities, high rates of immigration to the developed world, a growing and useful population, highly variable infrastructure, underdeveloped technologies, weak distribution channels, and media.

What are the strategies identified for emerging market firms to be successful as per the script?

The strategies include creating customized offerings, developing business models to overcome obstacles, deploying the latest technology, taking advantage of cheap labor and training staff in-house, and scaling up rapidly.

What are the key decisions related to entry in emerging markets as discussed in the script?

The key decisions related to entry in emerging markets are the timing of entry and the mode of entry.

What are the benefits of the internet for companies as a gateway to the global market as mentioned in the script?

The benefits include cost efficiency and accessibility or connectivity, allowing companies to reach customers around the world at a lower cost compared to traditional communication tools.

What are the factors that influence the perceived value of a brand's website according to the script?

The factors influencing perceived value are utilitarian experience, pleasure provided by the website, customization, and the effect of privacy and security protection.

What is the core conflict in any global web marketing strategy as described in the script?

The core conflict in any global web marketing strategy is between local responsiveness and global integration.