Why Market Planning Fails

1
Why Market Planning Fails

• Short-term Orientation
• Often a Shallow Exercise
• Inconsistent Goals Evaluative Criteria
• Managerial Fear of Planning
• Lack of Relevant Data
• Poor Implementation
• Poor Coordination Between Units

2
Initial Stage of Intl Expansion
President
Corporate Staff
MKT
MNFG
FIN
PER
PLN
Foreign Subs.
UK
Mexico
France
3
International Division Structure
President
VP MKT
VP MNFG
VP FIN
VP PER
VP PLN
D1
D2
D3
D4
Intl
Country Subs
4
Geographic Structure
President
VP MKT
VP MNFG
VP FIN
VP PER
VP PLN
N. America
Europe
Far East
L. America
Area Staff
Area Staff
Area Staff
Area Staff
5
Product Structure
President
VP MKT
VP MNFG
VP FIN
VP PER
VP PLN
Pr. Line A
Pr. Line B
Pr. Line C
Pr. Line D
Staff
Staff
Staff
Staff
6
Geographic Structure is Appropriate If

• Product Lines Are Similar
• Similar Channels Are Used
• Products Need to be Adapted
• Marketing is Critical

Product Structure is Appropriate When

• Product Lines Are Diverse
• Variety of End-Users
• Products are Standardized

7
Matrix Structure
President
VP Pr. A
Corporate Staff
VP Pr. B
VP Pr. C
VP EUR
VP N.Am
VP Asia
VP L.Am
VP Pr. D
Director MKT
Director MNFG
Director FIN
Director PLN
8
Basic Control Process

• (1) Establish Standards
• (2) Measure Evaluate Performance
• (3) Correct Deviations From Standards

9
Methods of Control

• Formal Methods
• Planning
• Organization
• Budgeting
• Subsidiaries as Profit Centers
• Carrot Stick Approach
• Information System
• Informal Methods

10
Trends in the Role of Global Firms

• Successful MNCs from Various Nations- Changing
  Attitudes Toward MNCs- Mutual Hostage Situation
• Emergence World-Scale Corporations- U.S.
  Anti-Trust Laws
• Shift Toward a Geocentric Philosophy

11
Emerging Trends in Global Marketing

• Closer Integration Between Government Business
• Multilateral to Regional Trade
• Global Privatization Deregulation
• Importance of Global Corporate Social
  Responsibility- Green Marketing
• Emphasis on Consumerism
• Women in International Marketing

12
Qualities of an Effective Multinational Manager

• Above Average a Go-Getter
• Interest in Aptitude for Global Assignments
• Competent Planner
• Customer Oriented
• Appreciative of Other Cultures
• Personal Attributes- Confident- Aggressive-
  Self Sufficient- Flexible- Adaptive-
  Creative- Patient- Foreign Language Skills-
  Travel Oriented- Effective Manager