Global Market-Entry Strategies: Licensing, Investment, and Strategic Alliances
Preface 17 Acknowledgments 21
Part ONE Introduction 24 Chapter 1 Introduction to Global Marketing 24 Case 1-1 The Global Marketplace Is Also Local 24 Case 1-1 The Global Marketplace (continued) 54 Case 1-2 McDonald’s Expands Globally While Adjusting Its Local
Recipe 55 Case 1-3 Apple versus Samsung: The Battle for Smartphone Supremacy
Heats Up 58
Part twO the Global Marketing Environment 60 Chapter 2 The Global Economic Environment 60 Case 2-1 A New Front in the Battle of Ideas 60 Case 2-1 A New Front in the Battle of Ideas (continued) 89 Case 2-2 Argentina Uncorks Malbec; World Ready
for a Glass 90
Chapter 3 The Global Trade Environment 92 Case 3-1 Global Trading Partners Look East and West
for Economic Growth 92 Case 3-1 Will New Trade Partnerships Fuel East-West Growth?
(continued) 121 Case 3-2 Will the Euro Survive? The Euro Zone Fights
for Its Life 122
Chapter 4 Social and Cultural Environments 124 Case 4-1 Will Tourism Ruin Venice? 124 Case 4-1 Is Tourism the Savior or the Scourge of Venice?
(continued) 148 Case 4-2 Soccer and the Fashion World 150
Chapter 5 The Political, Legal, and Regulatory Environments 152
Case 5-1 Mr. President—Free Pussy Riot! 152 Case 5-1 Mr. President—Free Pussy Riot! (continued) 181 Case 5-2 America’s Cuban Conundrum 183 Case 5-3 Gambling Goes Global on the Internet 186
Part thrEE approaching Global Markets 188 Chapter 6 Global Information Systems and Market Research 188 Case 6-1 Nestlé’s Middle East Investment in Market Research 188 Case 6-1 Nestlé’s Middle East Investment in Market Research
(continued) 217 Case 6-2 Research Helps Whirlpool Keep Its Cool at Home, Act Local
in Emerging Markets 218
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6 BRIEF CoNTENTS
Chapter 7 Segmentation, Targeting, and Positioning 220 Case 7-1 Global Companies Target Low-Income Consumers (A) 220 Case 7-1 Global Companies Target Low-Income Consumers (A)
(continued) 250 Case 7-2 Cosmetics Giants Segment the Global Cosmetics Market 252
Chapter 8 Importing, Exporting, and Sourcing 254 Case 8-1 East-Asian Countries: Export-led Growth for Economic
Success 254 Case 8-1 Hong Kong Trade and Investment Hub (continued) 281 Case 8-2 Turkish Cars: The Big Picture 282 Case 8-3 A Day in the Life of an Export Coordinator 283
Chapter 9 Global Market-Entry Strategies: Licensing, Investment, and Strategic Alliances 284
Case 9-1 Mo’men Launches Franchises in UAE 284 Case 9-1 Mo’men Launches Franchises in UAE (continued) 311 Case 9-2 Jaguar’s Passage to India 313
Part fOur the Global Marketing Mix 314 Chapter 10 Brand and Product Decisions in Global Marketing 314 Case 10-1 The Beatles Story, Liverpool 314 Case 10-1 The Beatles Story, Liverpool (continued) 347 Case 10-2 The Smart Car 348
Chapter 11 Pricing Decisions 350 Case 11-1 Global Companies Target Low-Income Consumers (B) 350 Case 11-1 Global Companies Target Low-Income Consumers (B)
(continued) 379 Case 11-2 LVMH and Luxury Goods Marketing 380 Case 11-3 One Laptop Per Child 382
Chapter 12 Global Marketing Channels and Physical Distribution 384 Case 12-1 Carrefour’s Entry in Dubai 384 Case 12-1 How Successful is Carrefour’s Joint Venture in the UAE?
(continued) 415 Case 12-2 Fail! Tesco Strikes Out in the United States 416
Chapter 13 Global Marketing Communications Decisions I: Advertising and Public Relations 418
Case 13-1 The Gulf Oil Spill: BP’s Public Relations Nightmare 418 Case 13-1 The BP Oil Spill (continued) 445 Case 13-2 Samsung: Launching People 446
Chapter 14 Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication 448
Case 14-1 Red Bull 448 Case 14-1 Red Bull (continued) 479 Case 14-2 Marketing an Industrial Product in Latin America 480
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BRIEF CoNTENTS 7
Chapter 15 Global Marketing and the Digital Revolution 482 Case 15-1 Africa 3.0 482 Case 15-1 Africa 3.0 (continued) 508 Case 15-2 Global Marketers Discover Social Media 509
Part fIvE Strategy and Leadership in the twenty-first Century 510
Chapter 16 Strategic Elements of Competitive Advantage 510 Case 16-1 Volkswagen Aims for the Top 510 Case 16-1 Volkswagen (continued) 538 Case 16-2 IKEA 541 Case 16-3 LEGO 543
Chapter 17 Leadership, organization, and Corporate Social Responsibility 544
Case 17-1 A Changing of the Guard at Unilever 544 Case 17-1 Unilever (continued) 572
Glossary 575 Author/Name Index 589 Subject/Organization Index 597
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9
Contents
Preface 17 Acknowledgments 21
Part ONE Introduction 24
Chapter 1 Introduction to Global Marketing 24 introduction and overview 25 Principles of Marketing: A Review 27
Competitive Advantage, Globalization, and Global Industries 28
global Marketing: What it is and What it isn’t 31 the importance of global Marketing 38 Management orientations 40
Ethnocentric Orientation 40 Polycentric Orientation 41 Regiocentric Orientation 41 Geocentric Orientation 42
Forces Affecting global integration and global Marketing 44 Multilateral Trade Agreements 44 Converging Market Needs and Wants and the Information Revolution 45 Transportation and Communication Improvements 45 Product Development Costs 45 Quality 46 World Economic Trends 46 Leverage 48
Experience Transfers 48 Scale Economies 48 Resource Utilization 49 Global Strategy 49
Restraining Forces 49 Management Myopia and Organizational Culture 49 National Controls 50 Opposition to Globalization 50
outline of this Book 51
Part twO the Global Marketing Environment 60
Chapter 2 the Global Economic Environment 60 the World Economy—An overview 62 Economic Systems 63
Market Capitalism 64 Centrally Planned Socialism 65 Centrally Planned Capitalism and Market Socialism 65
Stages of Market development 70 Low-Income Countries 70 Lower-Middle-Income Countries 71 Upper-Middle-Income Countries 73 Marketing Opportunities in LDCs and Developing Countries 75 High-Income Countries 77 The Triad 78 Marketing Implications of the Stages of Development 79
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10 CoNTENTS
Balance of Payments 80 trade in Merchandise and Services 82
Overview of International Finance 83 Economic Exposure 85 Managing Exchange Rate Exposure 85
Chapter 3 the Global trade Environment 92 the World trade organization and gAtt 93 Preferential trade Agreements 94
Free Trade Area 95 Customs Union 95 Common Market 95 Economic Union 95
north America 98 Latin America: SiCA, Andean Community, Mercosur, and CARiCoM 100
Central American Integration System 100 Andean Community 101 Common Market of the South (Mercosur) 103 Caribbean Community and Common Market (CARICOM) 105 Current Trade-Related Issues 106
Asia-Pacific: the Association of Southeast Asian nations (ASEAn) 106
Marketing Issues in the Asia-Pacific Region 107
Western, Central, and Eastern Europe 109 The European Union (EU) 110 Marketing Issues in the EU 112
the Middle East 114 Cooperation Council for the Arab States of the Gulf 115 Marketing Issues in the Middle East 116
Africa 116 Economic Community of West African States (ECOWAS) 116 East African Community 117 Southern African Development Community (SADC) 118 Marketing Issues in Africa 118
Chapter 4 Social and Cultural Environments 124 Society, Culture, and global Consumer Culture 125
Attitudes, Beliefs, and Values 127 Religion 127 Aesthetics 128 Dietary Preferences 130 Language and Communication 132 Marketing’s Impact on Culture 135
high- and Low-Context Cultures 136 hofstede’s Cultural typology 137 the Self-Reference Criterion and Perception 141 diffusion theory 142
The Adoption Process 142 Characteristics of Innovations 143 Adopter Categories 143 Diffusion of Innovations in Pacific Rim Countries 144
Marketing implications of Social and Cultural Environments 145
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CoNTENTS 11