Global Marketing Management, 5th edition

Copyright......Page 6
About The Authors......Page 7
Preface......Page 9
Acknowledgments......Page 17
Brief Contents......Page 19
Contents......Page 20
1: Globalization Imperative......Page 27
Why Global Marketing is Imperative......Page 28
Globalization of Markets: Convergence and Divergence......Page 34
International Trade versus International Business......Page 37
Who Manages International Trade?......Page 38
What is Marketing?......Page 39
Domestic Marketing......Page 40
Export Marketing......Page 42
Multinational Marketing......Page 43
Global Marketing......Page 44
The Impact of Economic Geography and Climate on Global Marketing......Page 45
Short Cases......Page 49
Appendix: Theories of International Trade and the Multinational Enterprise......Page 51
2: Economic Environment......Page 58
Intertwined World Economy......Page 60
Foreign Direct Investment......Page 62
Portfolio Investment......Page 64
Changing Country Competitiveness......Page 65
Human Resources and Technology......Page 66
Emerging Economies......Page 68
General Agreements on Tariffs and Trade......Page 71
World Trade Organization......Page 72
Information Technology and the Changing Nature of Competition......Page 77
Value of Intellectual Property in Information Age......Page 78
Proliferation of E-Commerce and Regulations......Page 79
Regional Economic Arrangements......Page 80
Free Trade Area......Page 81
Common Market......Page 83
Multinational Corporations......Page 84
Short Cases......Page 89
3: Financial Environment......Page 92
Historical Role of the U.S. Dollar......Page 93
The Bretton Woods Conference......Page 94
The International Monetary Fund......Page 95
Fixed versus Floating Exchange Rates......Page 97
Currency Blocs......Page 98
Purchasing Power Parity......Page 100
Coping with Exchange Rate Fluctuations......Page 101
Spot versus Forward Foreign Exchange......Page 104
Exchange Rate Pass-Through......Page 105
Balance of Payments......Page 107
The Internal and External Adjustments......Page 110
Asian Financial Crisis and Its Aftermath......Page 111
The South American Financial Crisis and Its Aftermath......Page 112
The U.S. Subprime Mortgage Loan Crisis and the Subsequent Global Financial Crisis......Page 113
Responses to the Regional Financial Crises......Page 114
Historical Background......Page 118
Ramifications of the Euro for Marketers......Page 121
Short Cases......Page 126
4: Global Cultural Environment and Buying Behavior......Page 129
Definition of Culture......Page 131
Material Life......Page 132
Language......Page 134
Social Interactions......Page 137
Aesthetics......Page 138
Religion......Page 140
Education......Page 141
Value Systems......Page 143
High- versus Low-Context Cultures......Page 144
Hofstede’s Classification Scheme......Page 145
Project GLOBE......Page 147
World Value Survey (WVS)......Page 148
Adapting to Cultures......Page 149
Culture and the Marketing Mix......Page 151
Product Policy......Page 152
Pricing......Page 153
Promotion......Page 154
Organizational Cultures......Page 156
Global Account Management (GAM)......Page 158
Managing Global Account Relationships......Page 159
Global Customer Relationship Management (CRM)......Page 160
Gains from CRM......Page 161
Guidelines for Successful CRM Implementation......Page 162
Short Cases......Page 165
5: Political and Legal Environment......Page 167
Home Country versus Host Country......Page 168
Structure of Government......Page 170
Government Policies and Regulations......Page 172
Social Pressures and Special Interests......Page 181
Managing the Political Environment......Page 184
Terrorism and the World Economy......Page 188
International Agreements......Page 189
Group of Seven (G7), Group of Eight (G8), and Group of Eight plus Five (G8+5)......Page 190
Wassenaar Arrangement......Page 192
Local Legal Systems and Laws......Page 193
ISO 9000 and 14000......Page 197
Intellectual Property Protection......Page 198
International Treaties for Intellectual Property Protection......Page 202
Antitrust Laws of the United States......Page 206
U.S. Foreign Corrupt Practices Act of 1977......Page 208
Short Cases......Page 214
6: Global Marketing Research......Page 218
Research Problem Formulation......Page 221
Secondary Data Sources......Page 223
Problems with Secondary Data Research......Page 225
Focus Groups......Page 226
Survey Methods for Cross-Cultural Marketing Research......Page 228
Leveraging the Internet for Global Market Research Studies......Page 232
Method of Analogy......Page 235
Trade Audit......Page 236
Chain Ratio Method......Page 237
Cross-Sectional Regression Analysis......Page 238
New Market Information Technologies......Page 239
Selecting a Research Agency......Page 241
Coordination of Multicountry Research......Page 242
7: Global Segmentation and Positioning......Page 247
Country Screening......Page 248
Positioning Strategy......Page 249
Marketing Mix Policy......Page 250
International Market Segmentation Approaches......Page 251
Segmentation Scenarios......Page 253
Bases for International Market Segmentation......Page 255
Demographics......Page 256
Socioeconomic Variables......Page 257
Behavior-Based Segmentation......Page 260
Lifestyle......Page 261
Uniform versus Localized Positioning Strategies......Page 262
Universal Positioning Appeals......Page 265
Global, Foreign, and Local Consumer Culture Positioning......Page 266
Short Cases......Page 270
Appendix: Segmentation Tools......Page 273
8: Global Marketing Strategies......Page 275
Real-Time Management......Page 276
Electronic Commerce (E-Commerce)......Page 277
Global Citizenship......Page 279
Global Industry......Page 280
Competitive Industry Structure......Page 283
Competitive Advantage......Page 285
Interdependency......Page 290
Global Marketing Strategy......Page 291
Benefits of Global Marketing......Page 292
Limits to Global Marketing......Page 294
R&D, Operations, and Marketing Interfaces......Page 296
R&D/Operations Interface......Page 298
Operations/Marketing Interface......Page 299
Marketing/R&D Interface......Page 301
Regionalization of Global Marketing Strategy......Page 302
Identification of Weak Market Segments......Page 304
Use of the “Lead Market” Concept......Page 305
Marketing Strategies for Emerging Markets......Page 306
Competitive Analysis......Page 309
Short Cases......Page 312
9: Global Market Entry Strategies......Page 316
Target Market Selection......Page 317
Decision Criteria for Mode of Entry......Page 320
Mode-of-Entry Choice—Two Opposing Paradigms: A Transaction Costs versus Resource-Based View......Page 323
Exporting......Page 325
Benefits......Page 327
Caveats......Page 328
Franchising......Page 329
Caveats......Page 330
Caveats......Page 331
Expanding Through Joint Ventures......Page 332
Caveats......Page 333
Drivers Behind Successful International Joint Ventures......Page 334
Caveats......Page 338
Acquisitions and Mergers......Page 339
Types of Strategic Alliances......Page 341
Cross-Border Alliances That Succeed......Page 342
Timing of Entry......Page 343
Reasons for Exit......Page 345
Risks of Exit......Page 347
Guidelines......Page 348
Short Cases......Page 352
Appendix: Alternative Country Screening Procedure......Page 355
10: Global Product Policy Decisions I: Developing New Products for Global Markets......Page 356
Strategic Option 1: Product and Communication Extension—Dual Extension......Page 358
Strategic Option 5: Product Invention......Page 359
Drivers Toward Standardization......Page 360
Two Alternatives—Modular and Core Product Approach......Page 364
Back-of-the-envelope Calculations—Incremental Break-even Analysis (IBEA)......Page 365
Multinational Diffusion......Page 368
Identifying New Product Ideas......Page 370
Screening......Page 372
Test Marketing......Page 373
Timing of Entry: Waterfall versus Sprinkler Strategies......Page 374
Truly Global Product Development......Page 377
Short Cases......Page 381
Appendix: Using Conjoint Analysis for concept testing in Global New Product Development......Page 383
11: Global Product Policy Decisions II: Marketing Products and Services......Page 386
Global Branding......Page 388
Local Branding......Page 392
Global or Local Branding?......Page 393
Brand-Name Changeover Strategies......Page 397
Management of Multinational Product Lines......Page 400
Product Piracy......Page 404
Strategic Options against Product Piracy......Page 406
Country-of-Origin (COO) Effects......Page 408
Country-of-Origin (COO) Influences on Consumers......Page 409
Strategies to Cope with COO Stereotypes......Page 411
Challenges in Marketing Services Internationally......Page 412
Opportunities in the Global Service Industries......Page 413
Global Service Marketing Strategies......Page 414
Short Cases......Page 417
12: Global Pricing......Page 421
Company Goals......Page 422
Company Costs......Page 423
Competition......Page 424
Distribution Channels......Page 426
Government Policies......Page 427
Managing Price Escalation......Page 428
Pricing in Inflationary Environments......Page 429
Global Pricing and Currency Fluctuations......Page 431
Currency Gain/Loss Pass Through......Page 432
Determinants of Transfer Prices......Page 435
Setting Transfer Prices......Page 436
Minimizing the Risk of Transfer Pricing Tax Audits......Page 437
Global Pricing and Anti-dumping Regulation......Page 438
Price Coordination......Page 439
Aligning Pan-Regional Prices......Page 441
Implementing Price Coordination......Page 443
Forms of Countertrade......Page 444
Motives behind Countertrade......Page 446
Shortcomings of Countertrade......Page 447
Short Cases......Page 450
13: Communicating with the World Consumer......Page 452
Language Barriers......Page 453
Other Cultural Barriers......Page 455
Setting the Global Advertising Budget......Page 456
Budgeting Rules......Page 457
Resource Allocation......Page 459
The “Standardization” versus “Adaptation” Debate......Page 460
Merits of Standardization......Page 461
Barriers to Standardization......Page 463
Approaches to Creating Advertising Copy......Page 464
Media Infrastructure......Page 466
Media Limitations......Page 467
Recent Trends in the Global Media Landscape......Page 468
Advertising Regulations......Page 470
Choosing an Advertising Agency......Page 473
Sales Promotions......Page 475
Global Sponsorships......Page 477
Trade Shows......Page 479
Product Placement......Page 480
Viral Marketing......Page 481
Global Public Relations (PR) and Publicity......Page 482
Globally Integrated Marketing Communications (GIMC)......Page 483
Short Cases......Page 487
14: Sales and Cross-Cultural Management......Page 491
Market Entry Options and Salesforce Strategy......Page 493
Role of Foreign Governments......Page 496
Personal Selling......Page 497
Cultural Generalization......Page 498
Relationship Marketing......Page 499
Myers–Briggs Type Indicator......Page 500
Impact of Culture on Sales Management and Personal Selling Process......Page 501
Salesforce Objectives......Page 502
Salesforce Strategy......Page 503
Recruitment and Selection......Page 504
Training......Page 505
Supervision......Page 506
Stages of Negotiation Process......Page 508
Cross-Cultural Negotiation Strategies......Page 509
Expatriates......Page 512
Advantages of Expatriates......Page 513
The Return of the Expatriate—Repatriation......Page 518
Generalizations about When Using Expatriates Is Positive/Negative......Page 519
Short Cases......Page 521
15: Global Logistics and Distribution......Page 524
Definition of Global Logistics......Page 526
Managing Physical Distribution......Page 528
Modes of Transportation......Page 529
Warehousing and Inventory Management......Page 531
Third-Party Logistic (3PL) Management......Page 535
Logistical Revolution with the Internet......Page 536
Managing Sourcing Strategy......Page 537
Procurement: Types of Sourcing Strategy......Page 538
Outsourcing of Service Activities......Page 544
Free Trade Zones......Page 546
Channel Configurations......Page 549
Channel Management......Page 550
International Retailing......Page 551
Private-Label Branding (Store Brands)......Page 553
“Push” versus “Pull”......Page 554
On-Time Retail Information Management......Page 555
Retailing Differences across the World......Page 556
Short Cases......Page 562
Appendix: Maquiladora Operation......Page 565
16: Export and Import Management......Page 567
Research for Exports......Page 569
Export Market Segments......Page 570
Indirect Exporting......Page 571
Direct Exporting......Page 573
Mechanics of Exporting......Page 574
Legality of Exports......Page 575
Terms of Shipment and Sale......Page 576
Payment Terms......Page 577
Role of the Government in Promoting Exports......Page 579
Export–Import Bank......Page 582
Export Regulations......Page 583
Managing Imports—The Other Side of the Coin......Page 585
Import Documents and Delivery......Page 587
Import Duties......Page 588
Gray Markets......Page 589
Short Cases......Page 598
17: Planning, Organization, and Control of Global Marketing Operations......Page 601
Pitfalls......Page 602
Environmental Factors......Page 603
Organizational Design Options......Page 604
Global Product Division Structure......Page 605
Geographic Structure......Page 606
Matrix Structure......Page 609
The Global Network Solution......Page 611
Informal, Ad Hoc Branding Meetings......Page 613
Life Cycle of Organization Structures......Page 614
Formal (“Bureaucratic”) Control Systems......Page 616
Informal Control Methods......Page 617
“Soft” versus “Hard” Levers......Page 618
Short Cases......Page 621
18: Marketing Strategies for Emerging Markets......Page 623
Definition......Page 624
Characteristics of Emerging Markets......Page 625
The New Champions......Page 629
Computing Against the Newcomers......Page 633
Targeting/Positioning Strategies in Emerging Markets—BOP or No BOP......Page 634
Timing of Entry......Page 637
Product Design......Page 638
Branding......Page 639
Packaging......Page 640
Pricing Strategy......Page 641
The Distribution Challenge......Page 642
Creating Distribution Systems......Page 643
Managing Distributor Relationships......Page 644
Mass Media versus Non-Traditional Marketing Approaches......Page 645
Short Cases......Page 649
19: Global Marketing and the Internet......Page 652
Language Barriers......Page 653
Cultural Barriers......Page 654
Infrastructure......Page 655
Knowledge Barrier......Page 657
Legal Environment and Government Regulations......Page 658
Competitive Advantage and Cyberspace......Page 659
Global Internet Consumers......Page 660
Globally Integrated versus Locally Responsive Internet Marketing Strategies......Page 663
Global Branding and the Internet......Page 667
Web-based Global New Product Development......Page 668
Web-based Marketing of Services......Page 669
Global Pricing and the Web......Page 670
Role of Existing Channels......Page 671
E-Tailing Landscape......Page 673
Online Advertising......Page 674
Non-Traditional (NT) Web-based Communication......Page 676
Online Monitoring......Page 678
Short Cases......Page 681
Cases......Page 685
Carrefour: Entry into India......Page 686
Wal-Mart’s Rising Sun? A Case on Wal-Mart’s Entry into Japan......Page 691
Arla Foods and the Mohammed Cartoon Controversy......Page 697
Club Med: Going Upscale......Page 700
Honda in Europe......Page 705
Anheuser-Busch International, Inc.: Making Inroads Into Brazil and Mexico......Page 711
Subject Index......Page 717
Author Index......Page 737
Company Index......Page 745