REQUIREMENTS FOR A SUCCESSFUL GLOBAL MARKETING PLAN
1)Knowledge of the market and the marketing environment–especially of customers, competitors and the government.
2)Knowledge of the product–the formal product, its technology and its core benefit.
3)Knowledge of the marketing function and discipline.
REQUIREMENTS FOR A SUCCESSFUL DECISION
A global / transnational company must decide how it will obtain these three key types of knowledge on a global basis . It must also decide how it will assign responsibility for formulating a marketing plan. If plan formulation is assigned to national subsidiaries, the global headquarters must ensure that the subsidiary planners are fully informed on the technical and engineering characteristics of the product as well as up to date in their functional skills. One of the always of doing this is to involve headquarters marketing staff specialists in the planning process so that they can be sure that the local marketing staff’s market knowledge.
Thus,the global/ transnational plan is neither the product of the subsidiary nor the product of headquarters. It is neither “top down” nor “bottom up” but rather an interactive product that combines inputs from both the global and the local perspective. This balance is essential if the plan is to approximate the objective of global optimization as opposed to national sub optimization.
REQUIREMENTS FOR GLOBAL BUSINESS
The global / transnational plan should be initiated by a global overview that assesses the broad nature of opportunity and threat on a global basis and breaks down this assessment on a country-by-country basis with an indication of sales and earning targets for each country. These targets are proposed by headquarters as guidance to each national organization for the formulation of country plans. Guidance at this stage of the process should be guidance and not a directive. The national organization should come up with its own target and compare that to the target suggested by world headquarters. If there is a difference between the country target and the national organization target, this should openly challenge headquarters and the challenge should produce a dialogue that searches for the realistic target. After receiving guidance from headquarters, country units need to develop programs that will achieve the targets specified by the guidance. After perparing their plans, headquarters and subsidiaries come together to negotiate an agreement. Headquarters is seeking top performance from each company unit and the integration of its global plan.