acknowledgments:This book reflects the contributions, labor, and insights of many persons

acknowledgments:This book reflects the contributions, labor, and insights of many persons
acknowledgments:This book reflects the contributions, labor, and insights of many persons

acknowledgments:This book reflects the contributions, labor, and insights of many persons

acknowledgments:This book reflects the contributions, labor, and insights of many persons. I would like to thank my students, colleagues, associates, and clients for sharing their insights

and understanding of global marketing theory and practice. It is impossible to single out everyone who has contributed to this edition, but I would especially like to thank:

Stephen blank, lawrence G. bridwell, Steve burgess, John Dory, bob Fulmer, Donald Gibson, Pradeep Gopalakrisna, Jim Gould, David Heenan, Hermawan Kartajaya, Suren Kaushik, bodo b. Schlegelmilch, Jim Stoner, John Stopford, barbara Stöttinger, Michael Szenberg, Martin Topol, Robert Vambery, and Dominique Xardel.

I also wish to acknowledge the many contributions of the students in my doctoral seminar on global strategic marketing. The Pace doctoral students are a remarkable group of experienced executives who have decided to pursue a doctoral degree while working full time.

My associates at Keegan & Company—Eli Seggev, Mark Keegan, and anthony Donato— are outstanding expert consultants. Their collective backgrounds include doctoral degrees in mar- keting, and law and a master’s degree in public administration. The cross-fertilization of their training and experience and challenging client assignments addressing contemporary marketing issues is a continuing source of new ideas and insights on global strategic marketing.

Special thanks are due the superb librarians at Pace University: Michelle lang, head, Gradu- ate Center library, and anne b. Campbell, reference librarian, have a remarkable ability to find anything. like the Canadian Mounties who always get their man, Michelle and anne always get the document. My admiration for their talent and appreciation for their effort are unbounded.

Elyse arno brill, my coauthor for Offensive Marketing (butterworth Heinemann), has pro- vided invaluable assistance in researching, writing, and teaching. Her energy and creativity are unbounded. I am in awe of her ability to juggle a large and growing family, community service, a working farm, and our joint projects. She is an original and creative thinker with an impressive ability to identify important new directions and insights in marketing.

Stephanie Wall, Editor in Chief at Pearson, and Mark Gaffney, acquisitions Editor, were quick to endorse and support the Eighth Edition. becca Groves, Production Project Manager; and Daniel Petrino, Editorial assistant, kept the revision process on track and on schedule. Michelle Dellinger, Senior Project Manager at Integra, shepherded the manuscript through the final stages of the publication process. We are also grateful for the continuing support at Pearson.

Finally, I wish to thank my wife, Dr. Cynthia MacKay, who is a constant source of inspira- tion, support, and delight, as well as my companion in global market field research trips (many by motorcycle).

Warren J. Keegan

September 2013

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I am indebted to the many colleagues and friends who carefully read and critiqued individual manuscript sections and chapters. Their comments improved the clarity and readability of the text. In particular, I would like to thank James a. baggett, Hunter Clark, Frank Colella, Dave Collins, Diana Dickinson, Mark Freyberg, alexandre Gilfanov, Carl Halgren, Kathy Hill, Mark Juffern- bruch, David Kochel, Peter Kvetko, Keith Miller, Gayle Moberg, James Palmieri, alexandre Plokhov, Yao lu Swanson, Wendy Vasquez, David Wolf, and Thomas Wright.

Many individuals were instrumental in helping us secure permissions, and I want to acknowledge everyone who “went the extra mile” in supporting this revision. I would especially like to thank bill becker, John Deere; Veronique bellett, McarthurGlen; Janon Costley, Total apparel Group; Kirk Edmondson, lexus advanced business Development; Travis Edmonson, Pollo Campero; anita Gambill, STIHl USa; Monica Gartner, bang & olufsen; Jeffrey Hipps, Theta Digital/aTI; lou Ireland, DuPont Pioneer; Kim Isele, NaVTEQ; bob Johnsen, 5b artist Management; Mary Jubb, Kikkoman; Denise lavoie, Henkel; Ilana McCabe, QVC Inc.; Daniel McDonnell, Forrester Research; Pat McFadden, Nucor; brad Miller, New balance athletic Shoe, Inc.; Kerry ann Miller, Subaru of america; Morgan Molinoff, Edelman; Jenni Moyer, Consumer Electronics association; Kerry Moyer, Consumer Electronics association; Ciarra o’Sullivan, Global Call to action against Poverty; Ramiro Pindeda, bridgestone americas Tire operations, llC; lenore Rice, Seibert & Rice; Vivian Santangelo, Meredith Corporation; Mara Seibert, Seibert & Rice; Micaela Shaw, bSH Home appliances Corporation; Naomi Starkman, Slow Food Nation; Corey Taylor, Slipknot; Kathleen Tepfer, Scottish Development International; and Terri Wilsie, CSX.

Colleagues at several institutions contributed material to this revision. The authors are indebted to Keith Miller, Ellis and Nelle levitt Distinguished Professor of law at Drake University law School, for expanding and revising Case 5-3, “Gambling Goes Global on the Internet.” Dominic Standish, a colleague at CIMba Italy, organized the panel discussion “Death in Venice: Is Tourism Killing or Saving the City?” in fall 2011. That panel, our subse- quent discussions, and Dominic’s book Venice in Environmental Peril? Myth and Reality were key resources for the opening case in Chapter 4. Yao lu Swanson, my marketing colleague at Simpson, kindly provided expert answers and clarifications in response to my questions about China.

I would also like to thank the many present and former students at Simpson College and the University of Iowa who have offered feedback on previous editions of Global Marketing, con- tributed case studies, and suggested improvements. These include Devin linn’s case on the wine industry in argentina. Simpson alumna beth Dorrell graciously offered her expertise on export documentation. Mikkel Jakobsen provided source material on Denmark for “The Cultural Con- text” sidebar in Chapter 4. Caleb Hegna supplied important data about the white-goods market in Germany. My conversations with Michael Schwoll also helped shaped the text treatment of marketing practices in Germany.

The students in my international marketing course at CIMba Italy worked collabora- tively on the issue of tourism in Venice; Case 4-1 represents, in part, a mashup of the various team efforts. Hats off to Kaleb beckett, luci boat, leslie bourland, lauren Camerieri, lucas Commodore, Jeff Dellinger, Chris Duncan, Jacque Ford, brian Fry, Glynis Gallagher, Katie Greif, Kim Halamicek, Harper Hier, Jake Hirsch, Mike Johnson, Sarah Jones, Josh Kroll, Sean Miller, Chris Nucero, Mark Parmalee, Jack Roeder, Chris Shonkwiler, Slava Sinitsyn, and Chloe Suh. all were enthusiastic participants in the project and our work together in Italy made a lasting impression on me. Indeed, the whiteboard that these students filled while reviewing for a midterm exam served as the inspiration and springboard for the cover design of the Eighth Edition.

It was a great pleasure working with the Pearson team that managed the production of this edition. let me echo Warren’s thanks to all members of the Pearson team, and especially to Meeta Pendharkar, our Editorial Project Manager, and becca Groves, Senior Project Manager.

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Stephanie Wall, Editor in Chief, encouraged us to integrate MyMarketinglab into this revision. Mark Gaffney, acquisitions Editor, Marketing, was instrumental in moving the project along. The production moved along smoothly through the summer of 2013 thanks to Michelle Del- linger, Senior Project Manager at Integra. Kudos also to our photo researcher, Nicole Solano, for demonstrating once again that “every picture tells a story.” Nicole also handled permissions research on ads and other content elements. Thanks to the entire Pearson sales team for helping promote the book in the field. I additionally want to acknowledge the contributions of Mahmood Kahn, Virginia Tech, for expertly creating this edition’s Test Item File, Kerry Walsh, University of South Florida, for her fine work on the Instructor’s Manual and Jill Solomon, University of South Florida, for preparing a new set of PowerPoint slides.

Mark C. Green

September 2013

Pearson would like to thank and acknowledge the following people for their work on the Global Edition:


ali Hallak, Head of Digital Marketing, Samsung Gulf Electronics, UaE; Hamed Shamma, american University in Cairo, Egypt; Ronan Jouan de Kervenoael, Sabanci University, Turkey; Soo Jiuan Tan, National University of Singapore, Singapore; Stefania Paladini, Coventry University, UK


a. Ercan Gegez, Marmara University, Turkey; Christine Prince, ISG International business School, France; Norizan Mohd. Kassim, King abdulaziz University, Saudi arabia; Shohab Sikandar Desai, american University in the Emirates, UaE

A01_KEEG7389_08_SE_FM.indd 23 06/03/14 9:31 PM

24 24

Part one


1 Introduction to Global Marketing

Consider the following proposition: We live in a global marketplace. Apple iPhones, McDonald’s restaurants, Samsung HDTVs, LEGO toys, Swatch watches, Burberry trench coats, and Caterpillar earthmoving equipment are found practically everywhere on the planet. Global companies are fierce rivals in key markets. For example, American auto industry giants General Motors and Ford are locked in a competitive struggle with Toyota, Hyundai, and other global Asian rivals as well as European companies such as Volkswagen. U.S.-based Intel, the world’s largest chip maker, competes with South Korea’s Samsung. In the global cell phone market, Nokia (Finland), Apple (United States), Motorola (United States), and Samsung are key players. Appliances from Whirlpool and Electrolux compete for precious retail space with products manufactured and marketed by Germany’s Bosch, China’s Haier Group, and South Korea’s LG.

case 1-

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