International Marketing Study Set 9
Quiz 12 :
Global Marketing Management
Definition of various terms including corporate planning, strategic planning, tactical planning, direct exporting, indirect exporting, licensing, franchising, strategic international alliance, and joint venture are given below: Corporate planning: Planning is divided into corporate, strategic and tactical planning. Corporate planning refers to the long-term planning that sets comprehensive goals for the entire organization. Strategic planning: It refers to the planning done by the top level management in an organization. Strategic planning is used for making decisions regarding products and services, research processes, and capital utilization. Tactical planning: Tactical planning helps in the allocation of resources and taking other specific actions that are required to implement the strategic planning in an organization. Direct exporting: When a company directly sells its products overseas without any intermediary channel, it is considered as direct exporting. Indirect exporting: When a company sells its products overseas with the help of intermediary channel(s), it is considered as indirect exporting. Licensing is the agreement between two parties, where one party allows the other party to use its name, logo, image, character, or symbol. The party providing the license is called licensor and the party receiving it is known as the licensee. Franchising: It is a global entry strategy adopted by various companies to enter into the foreign markets. Franchising is a method by which a product's owner permits others to buy the right of selling that particular product. In this case, the franchisee would own a company but he doesn't require new product development techniques or market analysis. He can use the brand name and business model of a product for a definite period of time. Strategic international Alliances: In this process, two or more firms agree to share their information, resources, and competences to enter the international market. It helps them to gain competitive advantage over the rival firms. Joint venture: In a joint venture, two or more companies partner with each other in order to share their technology, knowledge and capital. In this process, a firm that enters foreign market gets its resources from the local firm in that country.
Strategic planning stands for the process through which a company defines its strategies, plans, directions, roles etc. and depending upon these makes proper decisions to allocate its resources to achieve the strategic plans. Strategic planning for international marketing differs from domestic marketing in a way that for domestic marketing the organization does not have to cross its comfort zone as the company is aware about its country, people, and the kind of products that are needed by them and are in demand. Looking at these factors, the company accordingly plans its strategies and undertakes marketing activities that are under legal obligations of the country's laws. But when it comes to international marketing, the organization is not readily prepare for handling the formalities of doing business in a foreign nation, and thereby the company has to start from scratch and undertake its marketing activities. There is a difference in strategic planning of domestic and international marketing because the taste, preferences, attraction, attitude, habits etc. of people residing are different from the country where the marker hails from and for knowing this a large amount of homework has to be undertaken by the firm undertaking strategic planning and marketing activities in that foreign nation. This way strategic planning for international marketing differs from domestic marketing.