Global marketing

Front Cover......Page 1
Praise for Global Marketing......Page 2
Half Title Page......Page 4
Title Page......Page 6
Copyright Page......Page 7
Brief contents......Page 8
Contents......Page 10
Preface......Page 21
Acknowledgements......Page 35
Publisher\'s acknowledgements......Page 37
Abbreviations......Page 45
About the author......Page 49
Part I The decision whether to internationalize......Page 50
  Learning objectives......Page 52
  1.2 The process of developing the global marketing plan......Page 53
  1.3 Comparison of the global marketing and management style of SMEs and LSEs......Page 56
   Exhibit 1.1 LEGO\'s strategic drift......Page 59
   Exhibit 1.2 Economies of scale with Nintendo Game Boy......Page 61
  1.4 Should the company internationalize at all?......Page 63
  1.5 Development of the \'global marketing\' concept......Page 64
   Exhibit 1.4 Persil Black and Persil  Abaya = glocalization (same product, but different packaging and market communication)......Page 67
  1.6 Forces for global integration and market responsiveness......Page 68
   Exhibit 1.5 McDonald\'s is moving towards a higher degree of market responsiveness......Page 70
  1.7 The value chain as a framework for identifying international competitive advantage......Page 71
  1.8 Value shop and the \'service value chain\'......Page 77
  1.9 Global experiential marketing......Page 81
   Exhibit 1.6 Case Construction Equipment is using experiential marketing......Page 84
   Exhibit 1.7 IKEA\'s use of AR......Page 85
  1.10 Information business, \'Big Data\' and the virtual value chain......Page 86
  1.11 Artificial Intelligence (AI) and its influence on global marketing......Page 87
  1.12 Summary......Page 89
   1.1 Green Toys, Inc.: a manufacturer of eco-friendly toys goes international......Page 90
   1.2 Hunter Boot Ltd: the iconic British brand is moving into exclusive fashion......Page 94
   1.4 Uber......Page 97
  References......Page 98
  Learning objectives......Page 100
  2.2 Internationalization motives......Page 101
   Exhibit 2.1 Jagermeister: the famous herbal liqueur is going global as a result of \'managerial urge\' in the family-owned company......Page 103
   Exhibit 2.2 Global marketing and economies of scale in Japanese firms......Page 106
   Exhibit 2.3 Internationalization of Haier – proactive and reactive motives......Page 109
  2.3 Triggers of export initiation (change agents)......Page 110
  2.4 Internationalization barriers/risks......Page 114
   Exhibit 2.4 De-internationalization at British Telecommunications (BT)......Page 117
  2.5 Summary......Page 119
   2.1 LifeStraw: Vestergaard-Frandsen transforms dirty water into clean drinking water......Page 120
   2.2 Elvis Presley Enterprises Inc. (EPE): internationalization of a cult icon......Page 122
   2.3 TOMS Shoes......Page 123
  References......Page 124
  Learning objectives......Page 125
  3.1 Introduction......Page 126
  3.2 The Uppsala internationalization model......Page 128
  3.3 The transaction cost analysis (TCA) model......Page 132
  3.4 The network model......Page 135
  3.5 Born globals......Page 137
   Exhibit 3.1 K-pop – a \'born global\' phenomenon has worldwide success......Page 138
  3.6 Summary......Page 142
   3.1 Bumble: the \'Feminist Tinder\' is expanding fast......Page 143
   3.2 BYD electrical cars: the Chinese electric car manufacturer is considering sales worldwide......Page 144
  References......Page 147
  Learning objectives......Page 150
  4.1 Introduction......Page 151
  4.2 Analysis of national competitiveness (the Porter diamond)......Page 152
  4.3 Competition analysis in an industry......Page 156
  4.4 Value chain analysis......Page 161
   Exhibit 4.1 Hilti is selling the ‘use’ – not the product......Page 162
  4.5 The sharing economy......Page 172
  4.7 Corporate social responsibility (CSR)......Page 175
   Exhibit 4.2 Chiquita – integrating CSR in the resource base......Page 178
  4.8 The value net......Page 179
   Exhibit 4.3 Value net – cooperation/competition between competitors within each airline alliance. The three alliances are competing against each other......Page 180
  4.9 Blue ocean strategy and value innovation......Page 181
  4.10 Summary......Page 183
   4.1 William Demant hearing aids: different threats appear on the horizon......Page 184
   4.2 DJI Technology Co. Ltd: a Chinese \'born global\' is dominating the world market for drones with its Phantom and Mavic drones......Page 187
  References......Page 191
   I.1 Electrolux: a white goods manufacturer is considering growth opportunities worldwide......Page 194
   I.2 Nintendo Switch......Page 200
   I.3 Cereal Partners Worldwide (CPW): the no. 2 world player is challenging the no. 1, Kellogg......Page 207
Part II Deciding which markets to enter......Page 216
  Learning objectives......Page 218
  5.2 The changing role of the international researcher......Page 219
  5.3 Linking global marketing research to the decision-making process......Page 220
  5.4 Secondary research......Page 222
  5.5 Primary research......Page 226
  5.6 Other types of marketing research......Page 237
  5.7 Marketing research based on Web 3.0......Page 241
  5.8 Setting up an international marketing information system (MIS)......Page 243
  5.9 Summary......Page 244
   5.1 Teepack Spezialmaschinen GmbH: organizing a global survey of customer satisfaction......Page 245
   5.2 LEGO Friends: one of the world\'s largest toy manufacturers moves into the girls\' domain......Page 247
   5.4 Hondajets: Honda enters the small-sized business jet market......Page 249
  Questions for discussion......Page 250
  References......Page 251
  Learning objectives......Page 252
  6.2 The political/legal environment......Page 253
   Exhibit 6.1 Huawei Technologies Corporation: the role of home government in the internationalization process – good and bad......Page 255
   Exhibit 6.2 Google is experiencing political risk in China......Page 259
  6.3 The economic environment......Page 264
  6.4 The European Economic and Monetary Union and the euro......Page 269
  6.5 BRIC – the slowing growth is hitting the emerging countries......Page 272
   Exhibit 6.3 Chotukool – Indian Godrej is creating a disruptive innovation (a low-cost refrigerator) for the BOP market......Page 273
  6.6 \'Bottom of pyramid\' (BOP) as a market opportunity......Page 275
   Exhibit 6.4 Voltic Cool Pac – distribution of water in Ghana (up to 2011)......Page 277
  6.7 Summary......Page 278
   6.1 G-20 and the economic and financial crises: what on earth is globalization about? Protests during a meeting in Buenos Aires, Argentina, November 2018......Page 279
   6.2 Danfoss Power Solutions: which political/economic factors would affect a manufacturer of hydraulic components?......Page 281
  Questions for discussion......Page 282
  References......Page 283
  Learning objectives......Page 284
  7.1 Introduction......Page 285
  7.2 Layers of culture......Page 286
  7.3 High- and low-context cultures......Page 288
   Exhibit 7.2 In China the Citroen C4 brand name was changed to Citroen c-Quatre......Page 290
   Exhibit 7.3 Sensuality and touch culture in Saudi Arabian versus European advertising......Page 293
   Exhibit 7.4 Polaroid\'s success in Muslim markets......Page 296
  7.5 Hofstede\'s model (the \'4 + 2\' dimensions model) versus the GLOBE model......Page 297
  7.6 Managing cultural differences......Page 299
  7.7 Convergence or divergence of the world\'s cultures......Page 300
  7.8 The effects of cultural dimensions on ethical decision-making......Page 301
   Exhibit 7.6 The quest for beauty opens a huge market for whitening products in Asia......Page 302
   7.1 Cirque du Soleil Inc.: the show that revolutionized the circus arts is expanding its global scope......Page 304
   7.2 The Ikea catalogue: are there any cultural differences?......Page 306
  Questions for discussion......Page 308
  References......Page 309
  Learning objectives......Page 310
  8.2 International market selection: SMEs versus LSEs......Page 311
  8.3 Building a model for international market selection......Page 312
   Exhibit 8.1 Bosch Security Systems: IMS in the Middle East for fire detection systems......Page 325
   Exhibit 8.2 Sunquick\'s waterfall approach......Page 330
   Exhibit 8.3 An example of the \'trickle-up\' strategy......Page 332
   Exhibit 8.4 Bajaj is selecting new international markets ignored by global leaders......Page 336
  8.6 Summary......Page 337
   8.1 Waymo: the driverless Google car is finding future growth markets......Page 339
   8.2 Philips Lighting: screening markets in the Middle East......Page 344
  Questions for discussion......Page 346
  References......Page 347
   II.1 SodaStream: managing profitable growth in an increasingly competitive global environment......Page 348
   II.2 The Female Health Company (FHC): the female condom is seeking a foothold in the world market for contraceptive products......Page 354
   II.3 Rolex: the luxury watch maker is facing increasing competition in the world market......Page 357
Part III Market entry strategies......Page 360
  Learning objectives......Page 364
  9.2 The transaction cost approach......Page 365
  9.3 Factors influencing the choice of entry mode......Page 367
   Exhibit 9.1 Zara is modifying its preferred choice of entry mode, depending on the psychic distance to new markets......Page 371
   9.1 Jarlsberg: the king of Norwegian cheeses is deciding on entry modes into new markets......Page 373
   9.2 Jissbon: is acquisition the right way to gain market shares in the Chinese condom market?......Page 375
   9.4 Muller Yogurts – entering the US market by Muller Quaker Joint Venture and exit again two years later......Page 378
  References......Page 379
  Learning objectives......Page 381
  10.1 Introduction......Page 382
  10.2 Indirect export modes......Page 384
  10.3 Direct export modes......Page 388
   Exhibit 10.1 Lofthouse of Fleetwood\'s (Fisherman\'s Friend) decision criteria when selecting new distributors......Page 390
  10.4 Cooperative export modes/export marketing groups......Page 396
   10.1 Lysholm Linie Aquavit: international marketing of the Norwegian Aquavit brand......Page 397
   10.2 Parle Products: an Indian biscuit manufacturer is seeking agents and cooperation partners in new export markets......Page 399
  Questions for discussion......Page 401
  References......Page 402
  Learning objectives......Page 403
  11.2 Contract manufacturing......Page 404
  11.3 Licensing......Page 405
  11.4 Franchising......Page 408
   Exhibit 11.1 Build-a-Bear workshop\'s use of the indirect franchising model in Germany – Austria – Switzerland......Page 410
  11.5 Joint ventures/strategic alliances......Page 414
   Exhibit 11.2 Irn-Bru\'s distributor alliance (Y coalition) with Pepsi Bottling Group (PBG) in Russia......Page 416
  11.6 Other intermediate entry modes......Page 425
   11.1 Hello Kitty: can the cartoon cat survive the buzz across the world?......Page 428
   11.2 KABOOKI: licensing in the LEGO brand......Page 430
   11.3 Marriott......Page 432
  References......Page 433
  Learning objectives......Page 434
  12.1 Introduction......Page 435
  12.3 Resident sales representatives/foreign sales branch/foreign sales subsidiary......Page 436
  12.4 Sales and production subsidiary......Page 438
  12.5 Subsidiary growth and integration strategies......Page 439
  12.6 Region centres (regional HQ)......Page 440
  12.7 Transnational organization......Page 442
  12.9 Location/relocation of HQ......Page 443
  12.10 Foreign divestment: withdrawing from a foreign market......Page 444
   Exhibit 12.1 Tesco\'s withdrawal from Japan in 2012 –later in China......Page 445
   Exhibit 12.2 Walmart\'s withdrawal from the German market......Page 447
  12.11 Summary......Page 448
   12.1 Ralph Lauren Corporation: Polo moved distribution for South-East Asia in-house......Page 449
   12.2 Durex condoms: SSL sell Durex condoms in the Japanese market through its own organization......Page 451
  Questions for discussion......Page 452
  References......Page 453
  Learning objectives......Page 454
  13.1 Introduction......Page 455
  13.2 Reasons for international sourcing......Page 456
  13.3 A typology of subcontracting......Page 458
  13.4 Buyer–seller interaction......Page 459
  13.5 Development of a relationship......Page 462
  13.6 Reverse marketing: from seller to buyer initiative......Page 465
  13.7 Internationalization of subcontractors......Page 466
  13.8 Project export (turnkey contracts)......Page 468
  13.9 Summary......Page 469
   13.1 ARM: challenging Intel in the world market of computer chips......Page 470
   13.2 Bosch Indego: how to build B2B and B2C relationships in a new global product market – robotic lawnmowers......Page 474
   13.3 Kone elevators and escalators......Page 477
  Questions for discussion......Page 478
  References......Page 479
   III.1 Tinder dating app: the famous dating app brand is facing increasing competition from e.g. Badoo......Page 480
   III.2 Spotify: the online music-streaming company is growing fast but is suffering financial imbalance......Page 485
   III.3 Autoliv Airbags: transforming Autoliv into a global company......Page 489
Part IV Designing the global marketing programme......Page 494
  Learning objectives......Page 501
  14.3 Developing international service strategies......Page 502
  14.4 The product life cycle......Page 508
   Exhibit 14.2 The iOS (Apple)/Android (Google) global contest in the smartphone business......Page 512
   Exhibit 14.3 Threadless T-shirt crowdsourcing business......Page 515
  14.5 New products for the international market......Page 517
  14.6 Product positioning......Page 521
   Exhibit 14.5 Chinese piano manufacturers are experiencing the \'country of origin\' (COO) effect......Page 522
   Exhibit 14.6 Madame Tussauds – a brand that brings people closer to celebrities on a global basis......Page 523
  14.7 Brand equity......Page 524
  14.8 Branding decisions......Page 525
   Exhibit 14.7 Unilever\'s Snuggle fabric softener – an example of local brands in multiple markets......Page 527
   Exhibit 14.8 Kellogg under pressure to produce under Aldi\'s own label......Page 530
   Exhibit 14.9 Shell\'s co-branding with Ferrari and LEGO......Page 531
   Exhibit 14.10 Roundup – a global brand for multiple markets......Page 532
   Exhibit 14.11 Maggi – local brands for multiple markets through acquisitions......Page 533
  14.9 Sensory branding......Page 534
   Exhibit 14.12 Starbucks\' expanding product line strategy is causing problems for its \'scent marketing strategy\'......Page 536
  14.10 Implications of the internet for collaboration with customers on product decisions......Page 537
  14.11 Internet of Things (IoT) and its use for marketers......Page 539
   Exhibit 14.13 Google\'s use of IoT in the form of the smart thermostat, Nest......Page 541
  14.12 3-D printing – a possible new industrial revolution in customization......Page 542
   Exhibit 14.14 Coca-Cola Israel increases its sales of their mini bottle though a \'Mini Me\' 3-D Print campaign......Page 544
  14.13 Global mobile app marketing......Page 545
   Exhibit 14.15 L\'Oreal is extending the customers\' buying experience with the mobile app Makeup Genius......Page 546
  14.14 \'Long tail\' strategies......Page 547
  14.15 Brand piracy and anti-counterfeiting strategies......Page 548
  14.16 Summary......Page 549
   14.1 Danish Klassic: launch of a cream cheese in Saudi Arabia......Page 550
   14.2 Zippo Manufacturing Company: has product diversification beyond the lighter gone too far?......Page 554
   14.3 Burberry branding......Page 555
   14.4 Tequila Avion......Page 556
  References......Page 557
  Learning objectives......Page 560
  15.3 Factors influencing international pricing decisions......Page 561
  15.4 International pricing strategies......Page 566
   Exhibit 15.1 German car manufacturers are using \'skimming\' price strategy in China......Page 567
   Exhibit 15.2 A \'market pricing\' (\'mass point\') strategy in use: the Converse brand is making a comeback under Nike ownership......Page 568
   Exhibit 15.3 Volkswagen Group\'s product portfolio approach to pricing......Page 572
   Exhibit 15.4 The Gillette price premium strategy......Page 573
   Exhibit 15.5 Dollar Shave Club......Page 576
  15.5 Implications of the internet for pricing across borders......Page 584
  15.6 Terms of sale and delivery......Page 586
  15.7 Terms of payment......Page 588
  15.8 Export financing......Page 590
   15.1 Harley-Davidson: how should the pricing strategy be affected by the new EU tariffs in 2018?......Page 593
   15.2 Gillette Co.: is price standardization possible for razor blades?......Page 595
   15.3 Vaseline pricing strategy......Page 596
  Questions for discussion......Page 597
  References......Page 598
  Learning objectives......Page 599
  16.1 Introduction......Page 600
  16.2 External determinants of channel decisions......Page 601
  16.3 The structure of the channel......Page 603
   Exhibit 16.1 Burberry: the iconic British luxury brand targets 25 of the world\'s wealthier cities......Page 606
  16.4 From single-channel to omnichannel strategy......Page 607
   Exhibit 16.2 Dell\'s use of the multichannel distribution strategy......Page 608
  16.5 Managing and controlling distribution channels......Page 610
  16.6 Blockchain technology and its influence on international marketing and SCM......Page 615
   Exhibit 16.3 Maersk\'s use of blockchain in their shipping......Page 617
  16.7 Implications of the internet for distribution decisions......Page 618
  16.8 Online retail sales......Page 619
  16.9 Smartphone marketing......Page 621
  16.10 Channel power in international retailing......Page 622
   Exhibit 16.4 The \'banana split\' model......Page 623
  16.11 Grey marketing (parallel importing)......Page 626
  16.12 Summary......Page 627
   16.1 De Beers: forward integration into the diamond industry value chain......Page 628
   16.2 Tupperware: the global direct distribution model is still working......Page 630
   16.3 DHL......Page 633
  References......Page 634
  Learning objectives......Page 636
  17.2 The communication process......Page 637
   Exhibit 17.1 Husqvarna\'s consumer wheel......Page 640
  17.3 Communication tools......Page 641
   Exhibit 17.2 LEGO Ninjago\'s 360-degree marketing communication......Page 646
   Exhibit 17.3 Ricola is using celebrity endorsement in the international marketing of its herbal drops......Page 650
   Exhibit 17.4 Ambush marketing strategy – Dutch Bavaria vs Anheuser Busch\'s Budweiser during the Fifa World Cup 2010......Page 652
  17.4 International advertising strategies in practice......Page 658
   Exhibit 17.5 Jarlsberg® cheese – cross-border communication......Page 660
  17.5 Implications of the internet for communication decisions......Page 661
  17.6 Social media marketing......Page 662
   Exhibit 17.6 Abena is using \'influencer marketing\' to penetrate the US diaper market......Page 669
  17.7 Categorization of social media......Page 670
  17.8 The social media funnel......Page 673
  17.9 Development of the social media marketing plan......Page 674
  17.10 Developing a viral marketing campaign......Page 678
   Exhibit 17.7 Fox Business (Trish Regan) is selling a political statement......Page 680
  17.11 Summary......Page 681
   17.1 Helly Hansen: sponsoring fashion clothes in the US market......Page 682
   17.2 Morgan Motor Company: can the British retro sports car brand still be successful after 100 years?......Page 683
   17.3 BMW Motorcycles......Page 686
  References......Page 687
   IV.1 Swarovski: the jewellery/crystal manufacturer is expanding into e-commerce and social media......Page 689
   IV.2 Levi Strauss: expanding in new international markets......Page 696
   IV.3 Guinness: how can the iconic Irish beer brand compensate for declining sales in the home market?......Page 700
Part V Implementing and coordinating the global marketing programme......Page 710
  Learning objectives......Page 712
   Exhibit 18.1 Google gives a clock as gift in China......Page 713
  18.2 Cross-cultural negotiations......Page 714
   Exhibit 18.2 Euro Disney becomes Disneyland Resort Paris – Disney learns to adapt to European cultures......Page 723
  18.3 Intercultural preparation......Page 724
  18.4 Coping with expatriates......Page 725
  18.5 Knowledge management and learning across borders......Page 728
  18.6 Transnational bribery in cross-cultural negotiations......Page 731
  18.7 Summary......Page 732
   18.1 ZamZam Cola: marketing of a \'Muslim\' cola from Iran to the European market......Page 733
   18.2 TOTO: the Japanese toilet manufacturer seeks export opportunities for its high-tech brands in the US......Page 735
   18.3 Dunkin\' Donuts......Page 736
   18.4 Stella & Dot......Page 737
  References......Page 738
  Learning objectives......Page 740
  19.2 Organization of global marketing activities......Page 741
  19.3 The global account management organization......Page 746
   Exhibit 19.1 Danfoss Power Solutions\' GAM......Page 756
  19.4 Controlling the global marketing programme......Page 757
  19.5 The global marketing budget......Page 763
  19.7 Summary......Page 767
   19.2 Henkel: should Henkel shift to a more customer-centric organization?......Page 768
   19.3 McDonald\'s......Page 770
  References......Page 771
   V.1 Tencent: the Chinese online giant is seeking new alliances......Page 773
   V.2 Huawei smartphones: expanding into the international markets for smartphone......Page 776
   V.3 Tetra Pak: how to create B2B relationships with the food industry on a global level......Page 781
Index......Page 787
Back Cover......Page 807