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A FRAMEWORK for
MARKETING MANAGEMENT
Chapter 18
Managing
Marketing
in the
Global
Economy
Kotler
Keller
Cunningham
Chapter Questions
• What major decisions does a firm face in
planning for international markets?
• What are the keys to effective internal
marketing?
• How can a company improve its marketing
implementation skills?
• What tools can a company use to monitor
and improve its marketing activities?
© Copyright 2008 Pearson Education Canada
18-2
Profile: Canadian Marketing Excellence
MEGA BLOKS INC.
• Montreal’s Mega Bloks Inc., • 75% of manufacturing done
maker of a broad range of
in Montreal although it
construction toys, was the
supplies over 100 countries
winner at Canada’s Export
Awards (2005)
• Safe, quality toys designed
to help children discover
and have fun are supported
by dynamic sales teams
and innovative retail
partnerships
• World’s second largest
construction toy maker
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18-3
Global Firm
A firm that operates in two or more
countries and captures R&D, production,
logistical, marketing, and
financial advantages in its costs and
reputation that are not available to purely
domestic competitors
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18-4
Major Decisions in
International Marketing
Deciding whether to go
Deciding which markets to enter
Deciding how to enter
Deciding on the
marketing program
Deciding on the
marketing organization
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45% of
Canada’s GDP
comes from
exports
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When to Restrict Internationalization?
• Market entry and market control costs are
high
• Product and communication adaptation
costs are high
• Population, income size, and growth are
high in the initial countries chosen
• Dominant foreign firms can establish high
barriers to entry
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18-6
Figure 18.2 Modes of Entry
into Foreign Markets
Commitment, Risk, Control, and Profit Potential
Indirect
exporting
Direct
exporting
Licensing
Joint
ventures
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Direct
investment
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McDonald’s Franchises Are Sold Worldwide
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18-8
Figure 18.3 International Product and
Communication Strategies
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18-9
Price Choices
• Set a uniform price everywhere
• Set a market-based price in
each country
• Set a cost-based price in each
country
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18-10
Organizing the Marketing Department
•
•
•
•
•
•
•
Functionally
Geographically
Product or brand
Market
Matrix
Corporate-divisional
Global
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18-11
Role of Marketing at the Corporate Level
• To promote a culture of customer
orientation
• To assess market attractiveness
• To develop firm’s overall value
proposition, vision, and articulation of how
it proposes to deliver superior value to
customers
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18-12
Tasks Assigned to CMOs
• Coordinate the company’s internal
marketing activities
• Coordinate marketing with finance,
operations, and other company functions
to serve the customer
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18-13
Managing the Marketing Process
Marketing implementation is the process
that turns marketing plans
into action and ensures that
assignments are executed in a manner
that accomplishes
the plan’s stated objectives
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18-14
Necessary Skills for Implementing
Marketing Programs
•
•
•
•
Diagnostic skills
Identification of company level
Implementation skills
Evaluation skills
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18-15
Types of Marketing Control
Annual-plan
control
Profitability
control
Efficiency
control
Strategic
control
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18-16
Health & Welfare Canada
• Health and Welfare
• One program
Canada has one of the
(ParticipACTION) promotes
longest records of any
physical activity
social marketing
• Its success is attributed to
organization
clear and specific
• More than 125 companies,
objectives
nonprofit organizations,
and other government
agencies formed
partnerships that
contributed close to
$60 million in resources to
key causes
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Figure 18.4 The Control Process
What do we want to achieve?
What is happening?
Why is it happening?
What should we do about it?
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18-18
Marketing Audit
Comprehensive, systematic, independent
periodic examination of a company’s
or business unit’s marketing
environment, objectives, strategies, and
activities with a view to determining
problem areas and opportunities,
and recommending
a plan of action to improve
the company’s marketing performance
© Copyright 2008 Pearson Education Canada
18-19
Six Major Components Examined
During Marketing Audits
• Macroenvironment/ • Marketing
task environment
productivity
• Marketing strategy • Marketing systems
• Marketing
• Marketing function
organization
(four Ps)
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18-20
Cause-Related Marketing
Marketing that links the firm’s contributions
to a designated cause to customers
engaging directly or indirectly in
revenue-producing transactions
with the firm
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18-21
For Discussion
Will the globalization of the world
make product and communications
adaptations irrelevant?
Why or why not?
© Copyright 2008 Pearson Education Canada
18-22