Country managers who have risen through the line marketing function often don’t spend enough time on local manufacturing operations, industrial relations, and government affairs. Furthermore, it maintained, the already developed pan-European program was available off the shelf. Some companies assign promising local managers to other countries and require would-be local managers to take a tour of duty at headquarters. In addition, local managers competing for resources and autonomy may devote too much attention to second-guessing headquarters’ “hot buttons.” Eventually the good managers may leave, and less competent people who lack the initiative of their predecessors may replace them. Here are five suggestions on how to motivate and retain talented country managers when making the shift to global marketing: 1. In applying the global marketing concept and making it work, flexibility is essential. No!” In Denmark, lobbyists for the brewers chivied the Parliament into taxing cola-containing beverages so heavily that it would have been economically absurd to try to market Coke there… At last word, the Danes were about to relent, though. In this kind of system, weak, insecure local managers can become dependent on headquarters for operational assistance. Often using a matrix or team approach, headquarters shares with country managers the responsibility and authority for programming and personnel decisions. To overcome the limits of persuasion, many multinationals are coordinating their marketing programs so that headquarters has a structured role in both decision making and performance evaluation that is far more influential than person-to-person persuasion. Harvard Business Publishing is an affiliate of Harvard Business School. A quick shift could lower their motivation and performance. Headquarters needs to give the field time to adjust to the new decision-making processes that multicountry brand teams and other new organizational structures require. The motive may be to ensure that a new product is introduced rapidly around the world before the competition can respond or that every manager fully and faithfully exploits a valuable marketing idea. In contrast, customization is a modification made to a product or service to suit a specific purpose. Partly because product quality and accounting data are easier to measure than marketing effectiveness, standardization can be greater in production and finance. The size of the gap—and the urgency with which it must be closed—will depend on a company’s strategy and financial performance, competitive pressures, technological change, and converging consumer values. By coordinating programs with the field, headquarters can balance the company’s local and global perspectives. The project team countered that capitalizing on potential scale economies, its pan-European marketing and manufacturing programs would be superior to any programs the subsidiaries could develop by themselves. Seagram motivates its country managers to stay interested in the global brands by allocating development funds to support local marketing efforts on these brands and by circulating monthly reports that summarize market performance data by brand and country. But despite the obvious economies and efficiencies they could gain with a standard product and program, many managers fear that global marketing, as popularly defined, is too extreme to be practical. If the field has traditionally been as important a source of new product ideas as the central R&D laboratory, the company may find itself short of the grassroots creative thinking and marketing research information that R&D needs. Sometimes direction is needed to prove that global marketing can work. Here are two examples: By making the transfer of information easy, a multinational leverages the ideas of its staff and spreads organizational values. When limited production for civilians got under way in the Philippines, armed guards had to be assigned to the trucks carting Coke from bottlers to dealers, to frustrate thirsty outlaws bent on hijacking it. How then, in moving toward global marketing can headquarters build rather than jeopardize relationships, stimulate rather than demoralize local managers? When poorly implemented, global marketing can make the local country manager’s job less strategic. The trend seems to be toward tighter marketing coordination. Nowhere is the need for headquarters guidance on innovative organizational approaches more evident than in the area of product policy. Their objectives are to make each product’s advertising more consistent around the world and to make it easier to transfer ideas and information among local agency offices, country organizations, and headquarters. Now let’s look at the issues that arise when executives consider the four dimensions shown in Exhibit 1 in light of the degree of standardization or adaptation that is appropriate. Products that enjoy high scale economies or efficiencies and are not highly culture-bound are easier to market globally than others. Small markets, being more tolerant of deviations from what would be locally appropriate, are less likely to resist a standard program. There is no better way to learn than to take in the knowledge from more experienced brands. As a result, it requires all brands sold in all countries to be registered in the home country of Switzerland. #1 Nikeid: One popular example of a successful business which has implemented mass customization successfully and made a profit … Once managers have decided how global they want their marketing program to be, they must make the transition. While Shutterfly has gotten creative with personalized emails and subject lines, one unique thing it did recently was personalize item offerings on its app. As Exhibit 2 indicates, headquarters can intervene at five points, ranging from informing to directing. The least threatening, loosest, and therefore easiest approach to global marketing is for headquarters to encourage the transfer of information between it and its country managers. Multinationals that direct local managers’ marketing programs usually do so out of a sense of urgency. Any erosion in marketing decision making associated with global marketing will probably be less upsetting for country managers who have not risen through the line marketing function. Personalized Marketing Examples. Encourage field managers to generate ideas. Such an organizational change can clearly communicate top management’s strategic direction, but headquarters needs to do a persuasive selling job to the field if it is to succeed. Learn how and when to remove this template message,,, Articles lacking in-text citations from September 2018, Articles with dead external links from July 2020, Articles with permanently dead external links, Creative Commons Attribution-ShareAlike License, Palubiak, R Craig, 1998, CUSTOMERization : Targeting Optimal Customers, Business Person's Handbook, This page was last edited on 25 September 2020, at 01:28.