First Situation
A director of marketing in a global corporation wants to reallocate budgeted funds to allow exploration of three potential emerging markets. This will require a reduction in the funds allocated to marketing efforts of new and existing products. As the CEO of this company, would you support this shift? Why or why not?
Solution
Being the CEO of a global corporation, I would support this shift and provide the director of marketing with all the assistance they require because any company that intends to develop its business should constantly evolve and expand. An excellent way to do so is to explore potential emerging markets and find various perspective advancements for our company. According to Gibreel et al. (2018), the main objective of exploring potential emerging markets is to understand what factors could impede or promote the development. Achieving that would require a serious number of resources, and that is why the budgeted funds have to be reallocated for accomplishing more significant goals, but that would be worth it.
However, some firms go global while exploring potential emerging markets, although their financial, human, and tangible resources are limited (Falahat et al., 2018). That is why reallocating budgeted funds should never be imprudent. As the company’s CEO, I must be sure that I can allow such a shift without inflicting heavy damage to the company’s prosperity. Thereby, I will do everything in my power and in my capacity to use this opportunity to improve the firm’s status but only after considering all potential risks. Sinha and Sheth (2018) state that “emerging markets (EMs) have become the growth engines of the world” (p. 217). That is an audacious statement, but it is still genuine. In a world where economic progress has an enormous development speed, being a global corporation CEO means always keeping an open mind and being ready to make intricate choices. All the points mentioned above are why I would support reallocating budgeted funds to explore potential emerging markets for the company’s benefit.
Second Situation
The marketing strategies and business objectives of a multi-national company seem to align well, yet the company is still losing market share. As the CEO of this company, what conversations would you be having with the director of marketing? Why? Support your plan with relevant theories, models, or research.
Solution
Being the multi-national company’s CEO in this situation, I would apply to the company’s marketing director to develop a future marketing strategy. Yang (2018) states that “marketing managers play an essential role in marketing strategy development, as they are the middle managers responsible for a unit in the marketing function” (p. 1047). Therefore, my first decision as the CEO would be to assemble a corporate meeting with the marketing director and the marketing managers to get the most effective results out of that meeting. When the company is losing market share, it can cause serious trouble for the firm and its founders and employees. Thereby, it is vital to engage everyone in that matter and collect every possible idea. According to Ducange et al. (2017), an effective marketing strategy concerns the correct interpretation of significant data sources. Thus, the CEO and the marketing director need to assemble all the existing data, including possible reasons for the established situation, current conditions of the company’s actives, and basic strategies used in its marketing approach. That is necessary to see the clear picture and eliminate the probability of missing any essential details because even the slightest mistake may inflict heavy damage to the company. Current trends in the economy put much pressure on firms, so they have to increase their activities regarding the marketing field in all areas (Dadzie et al., 2017). That implies that whatever marketing strategies the company use should be constantly revised and improved. So even if the company’s marketing strategies and business objectives seem to align well, there is a high chance the marketing director must reconsider them for the company’s future prosperity, so the firm’s stability is guaranteed.
References
Dadzie, K. Q., Amponsah, D. K., Dadzie, C. A., & Winston, E. M. (2017). How firms implement marketing strategies in emerging markets: An empirical assessment of the 4A marketing mix framework. Journal of Marketing Theory and Practice, 25(3), 234-256. Web.
Ducange, P., Pecori, R., & Mezzina, P. (2017). A glimpse on big data analytics in the framework of marketing strategies. Soft Computing, 22, 325-342. Web.
Falahat, M., Knight, G., & Alon, I. (2018). Orientations and capabilities of born global firms from emerging markets. International Marketing Review, 35(6), 936-957. Web.
Gibreel, O., AlOtaibi, D. A., & Altmann, J. (2018). Social commerce development in emerging markets. Electronic Commerce Research and Apllications, 27, 152-162. Web.
Sinha, M., & Sheth, J. (2018). Growing the pie in emerging markets: Marketing strategies for increasing the ratio of non-users to users. Journal of Business Research, 86, 217-224. Web.
Yang, M. (2018). International entrepreneurial marketing strategies of MNCs: Bricolage as practiced by marketing managers. International Business Review, 27(5), 1045-1056. Web.