Introduction

International marketing administration involves the comprehensive management of marketing activities across different countries and regions. It ensures that a company's marketing efforts are well-coordinated and effective in diverse markets.

Explanation

In this topic you will learn about marketing administration, which consists of a process including five stages: 1) planning, 2) organization, 3) integration, 4) management, and 5) control. Basically, it focuses on analyzing the target market (its opportunities and threats). Thanks to this process it is possible to establish which are the objectives the company wishes to fulfil.

According to Lerma and Marquez (2020), to orchestrate the marketing plan or strategies and achieving the company's goals, it is required to plan, organize, integrate, manage, and control.

It is also relevant to mention that the four instruments of a business strategy (product, pricing, placement or market, and promotion) must be included in the general plan so that they help in fulfilling organization objectives (Lerma and Marquez, 2020).

Marketing administration is a process that involves a series of consecutive steps, which are explained below:


Source: Lerma, A., and Márquez, E. (2020). Comercio y marketing internacional (5th ed.). México: Cengage Learning.

1. Planning: in this step, we must first identify and analyze the business' opportunities, and then develop the program of actions to take to fulfil the company's objective.

  • Market research: conduct thorough research to understand the target markets, including consumer behavior, cultural nuances, competitive landscape, and market potential.
  • Setting objectives: defining clear, measurable goals for international marketing efforts, such as market share targets, revenue goals, and brand awareness.
  • Strategy development: formulating strategies for product positioning, pricing, distribution, and promotion tailored to each target market.
  • Budgeting: allocating resources and budgeting for various marketing activities, including advertising, promotions, and market entry costs.

2. Organization: organizational structure defines the responsibilities and relations among the company's different departments or divisions. It is also in this step that different tasks are defined and differentiated, and the appropriate people are sought to carry out each of them. This means that the tasks to be done are established, as well as who does which, their grouping, who answers who, and where decisions are made. To carry out the organizational structure, the next three points must be followed:

  • Structure design: creating an organizational structure that supports international marketing activities, which could include regional offices, local subsidiaries, or a centralized international marketing team.
  • Role definition: defining roles and responsibilities within the international marketing team to ensure clear accountability and efficient operations.
  • Coordination mechanisms: establishing mechanisms for coordination between the head office and international units, such as regular meetings, reporting systems, and communication channels.

It is worth mentioning that there is no unique organizational structure, there can be several organization models as described next:

  • Divisional organization: when the company has functional areas.
  • Geographical organization: the international market is divided into geographical regions.
  • Organization by product: this organization happens when the company has an important export activity, a large product line, and a complex and specialized operation.
  • Matrix organization: it is structured in different dimensions with the purpose of combining divisional organization by product and geography, resulting in a combination of product line organization, with secondary divisions by geographical areas.

3. Integration: in this step, managers must incorporate international marketing activities and make every area understand their corresponding tasks as well as their correlation with others, as these actions in conjunction aim to achieve the company's goals.

We must follow these three points:

  • Cross-functional teams: forming cross-functional teams that include members from marketing, sales, finance, and supply chain to ensure a cohesive approach to market entry and growth.
  • Unified messaging: ensuring that marketing messages and brand values are consistent across all markets while allowing for necessary localization.
  • Technology utilization: using technology and software platforms to integrate marketing efforts globally, facilitating data sharing, and collaboration.

4. Managing: in this step, managers have the mission of integrating and controlling the company's activities to fulfilling set goals.

We must follow these three points:

  • Implementation: executing the marketing plan through various activities such as launching advertising campaigns, setting up distribution channels, and engaging in public relations.
  • Monitoring progress: tracking the progress of marketing initiatives through key performance indicators (KPI) and metrics to ensure alignment with objectives.
  • Adaptation: being flexible and ready to adapt strategies based on market feedback, performance data, and changing market conditions.

5. Control: in the fifth step, operation rules are established, current results are evaluated against established standards, differences between desired and actual performance are reduced, the results of the actions made are measured, the degree of fulfillment of objectives set is analyzed, and lastly, corrective measures are applied. Control and evaluation of strategy results are necessary due to the constant change caused by the effects of a market setting.

We must follow these three points:

Performance evaluation: regularly assessing the performance of marketing strategies against set objectives using performance metrics and analysis.

Corrective actions: Implementing corrective actions when performance deviates from planned objectives to address issues and optimize results.

Reporting: providing regular reports to senior management on the status of international marketing activities, performance outcomes, and strategic adjustments.

Example of Coca-Cola's organizational structure

Company overview:

The Coca-Cola Company is a global beverage leader, known for its flagship product, Coca-Cola, and an extensive portfolio of other drinks. The company's organizational structure supports its vast international operations, balancing global standardization with local responsiveness.

Organizational structure:

Headquarters (Global Head Office):

- Chairman and CEO

- Chief Financial Officer (CFO)

- Chief Marketing Officer (CMO)

  - Global Marketing Strategy Team

  - Global Brand Management Team

  - Global Customer Insights and Analytics Team

- Chief Operating Officer (COO)

  - Global Supply Chain and Operations Team

  - Global Product Development and Innovation Team

- Chief Technical Officer (CTO)

  - Global Research and Development Team

- Chief Human Resources Officer (CHRO)

  - Global Human Resources Team

- Chief Legal Officer (CLO)

  - Global Legal and Compliance Team

 

Regional divisions:

Coca-Cola operates through several regional divisions, each responsible for specific geographic areas. These divisions allow for tailored strategies and operations that meet local market needs while aligning with the company's global goals.

1. North America region:

- President of North America
- Vice President of Marketing, North America
- Market Research Team
- Digital Marketing Team
- Advertising and Promotions Team
- Vice President of Sales, North America
- Vice President of Operations, North America
- Manufacturing Plants
- Supply Chain Management
- Vice President of Finance, North America
- Vice President of Human Resources, North America

2. Europe, Middle East & Africa (EMEA) region:

- President of EMEA
- Vice President of Marketing, EMEA
- Market Research Team
- Digital Marketing Team
- Advertising and Promotions Team
- Vice President of Sales, EMEA
- Vice President of Operations, EMEA
- Manufacturing Plants
- Supply Chain Management
- Vice President of Finance, EMEA
- Vice President of Human Resources, EMEA

3. Asia-Pacific region:

- President of Asia-Pacific
- Vice President of Marketing, Asia-Pacific
- Market Research Team
- Digital Marketing Team
- Advertising and Promotions Team
- Vice President of Sales, Asia-Pacific
- Vice President of Operations, Asia-Pacific
- Manufacturing Plants
- Supply Chain Management
- Vice President of Finance, Asia-Pacific
- Vice President of Human Resources, Asia-Pacific

4. Latin America region:

- President of Latin America
- Vice President of Marketing, Latin America
- Market Research Team
- Digital Marketing Team
- Advertising and Promotions Team
- Vice President of Sales, Latin America
- Vice President of Operations, Latin America
- Manufacturing Plants
- Supply Chain Management
- Vice President of Finance, Latin America
- Vice President of Human Resources, Latin America

This structure allows Coca-Cola to effectively manage its vast international operations, ensuring that marketing strategies are both globally coherent and locally relevant, and that operational efficiencies are maximized across different regions.

Effective international marketing administration is crucial for global companies like Coca-Cola to maintain competitiveness and ensure sustainable growth. The process encompasses meticulous planning, robust organization, seamless integration, proactive management, and stringent control measures. Each of these components plays a vital role in harmonizing the company's global operations with local market needs, thereby optimizing performance across diverse regions.

Conclusion

The comprehensive process of international marketing administration is essential for companies aiming to thrive in the global marketplace. By meticulously planning, organizing, integrating, managing, and controlling their operations, companies can achieve strategic alignment, operational efficiency, and sustained competitive advantage. This structured approach ensures that they can navigate the complexities of international markets and leverage opportunities for growth and success.

Checkpoint

Make sure that you:

  • Understand the five stages of marketing administration: planning, organization, integration, managing, and control, which are crucial for coordinating and optimizing marketing activities across diverse international markets.
  • Recognize the importance of incorporating the four instruments of business strategy (product, pricing, placement, and promotion) into the overall marketing plan to achieve organizational objectives.
  • Analyze different organizational structures (divisional, geographical, product, matrix) to determine the most effective way to support international marketing activities and ensure efficient operations.
References

  • Lerma, A., and Márquez, E. (2020). International Trade and Marketing (5th ed.). Mexico: Cengage Learning.
    ISBN: 9786075269153