Company management can be classified in terms of its orientation
categories represent hundreds of billions of dollars in annual sales; other markets are much smaller. Whatever the size of the opportunity, successful industry competitors find that increas- ing revenues and profits means seeking markets outside the home country.
Company management can be classified in terms of its orientation toward the world: ethnocentric, polycentric, regiocentric, or geocentric. the terms reflect progressive levels of development or evolution. an ethnocentric orientation characterizes domestic and inter- national companies; international companies pursue marketing opportunities outside the home market by extending various elements of the marketing mix. a polycentric worldview predominates at a multinational company, where country managers operating autonomously adapt the marketing mix. When management moves to integrate and coordinate activities on a regional basis, the decision reflects a regiocentric orientation. Managers at global and transna- tional companies are geocentric in their orientation and pursue both extension and adaptation strategies in global markets.
the dynamic interplay of several driving and restraining forces shapes the importance of global marketing. Driving forces include market needs and wants, technology, transportation and communication improvements, product costs, quality, world economic trends, and a rec- ognition of opportunities to develop leverage by operating globally. restraining forces include market differences, management myopia, organizational culture, and national controls such as nontariff barriers (NTBs).
MyMarketingLab Go to mymktlab.com for the following Assisted-graded writing questions:
1-1. Discuss the differences between the global marketing strategies of Harley-Davidson and Toyota.
1-2. UK-based Burberry is a luxury fashion brand that appeals to both genders and to all ages. To improve Burberry’s competitiveness in the luxury goods market, CEO Angela Ahrendts recently unveiled a new strategy that includes all the elements of the mar- keting mix. The strategy also addresses key markets that Burberry will participate in, as well as the integration and coordination of marketing activities. Search for recent articles about Burberry and discuss Burberry’s GMS.
1-3. Mymarketinglab Only – comprehensive writing assignment for this chapter.
Discussion Questions 1-4. What are the basic goals of marketing? are these goals relevant to global marketing? 1-5. What is meant by “global localization”? Is Coca-Cola a global product? explain. 1-6. a company’s global marketing strategy (GMS) is a crucial competitive tool. Discuss
some of the global marketing strategies available to companies. Give examples of companies that use the different strategies.
1-7. UK-based Burberry is a luxury fashion brand that appeals to both genders and to all ages. to improve Burberry’s competitiveness in the luxury goods market, Ceo angela ahrendts recently unveiled a new strategy that includes all the elements of the market- ing mix. the strategy also addresses key markets that Burberry will participate in, as well as the integration and coordination of marketing activities. Search for recent arti- cles about Burberry and discuss Burberry’s GMS.
MyMarketingLab Go to mymktlab.com to complete the problems marked with this icon .
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1-8. Discuss the differences between the global marketing strategies of Harley-Davidson and toyota.
1-9. Describe the differences among ethnocentric, polycentric, regiocentric, and geocentric management orientations.
1-10. Identify and briefly describe some of the forces that have resulted in increased global integration and the growing importance of global marketing.
1-11. Define leverage and explain the different types of leverage available to companies with global operations.
1-12. each July, Fortune publishes its Global 500 listing of the world’s largest companies. You can find the current rankings online at: http://money.cnn.com/magazines/fortune /global500/2012/full_list/. alternatively, you can consult the print edition of Fortune. Browse through the list and choose any company that interests you. Compare its 2012 ranking with the most recent ranking. Has the company’s ranking changed? Consult additional sources (e.g., magazine articles, annual reports, the company’s Web site) to get a better understanding of the factors and forces that contributed to the company’s move up or down in the rankings. Write a brief summary of your findings.
1-13. there’s a saying in the business world that “nothing fails like success.” take Gap, for example. How can a fashion retailer that was once the source for wardrobe staples such as chinos and white t-shirts suddenly lose its marketing edge? Motorola also fell victim to its own success. the company’s razr cell phone was a huge hit, but Motorola strug- gled to leverage that success. now, Google owns Motorola Mobility. also, Starbucks Ceo Howard Shultz recently warned that his company and brand risk becoming com- moditized. and, as noted in Case 1-3, some industry observers are saying that apple has “lost its cool.” If you were to make separate recommendations to management at each of these companies, what would you say?
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54 Part 1 • IntroductIon
case 1-1 cOntinued (reFer tO page 24)