Global Marketing: Foreign Entry, Local Marketing, and Global Management

Description

Johansson’s Global Marketing, 5/e utilizes a three-pronged framework to organize the discussion of how to conduct global business: Foreign Entry, Local Marketing, and Global Management. Johansson seeks to develop the varied skills a marketing manager needs to be successful in each of these tasks. In foreign entry, in global management, and to a large extent even as a local marketer in a foreign country, the global marketer needs skills that the home makes experience-or the standard marketing text-have rarely taught. The recognition of the three roles helps dispel the notion that “there is no such thing as international global marketing, only marketing. Much of the excellent research and tried-and-true teaching material that global marketers in business and academe have contributed over the years is reflected in the chapters and in several cases that can be found at the end of each major section. The authors have focused on material that is timely and up-to-date, and relevant to the global context. Tittle Contents PART ONE FUNDAMENTALS 1 The Global Marketing Task Going Global The New Global Environment Antiglobalization and Terrorism Anti-Americanism Fair Trade Global Warming and Green Trade The Flat World The Dubai Phenomenon Regionalization Key Concepts Global Marketing Multidomestic Markets Global Markets Global Products Global and Local Brands Leading Markets First-Mover Advantages The Product Life Cycle Why Companies Go Global Market Drivers Competitive Drivers Cost Drivers Technology Drivers Government Drivers Global Localization Developing Knowledge Assets P&G New Products P&G Advertising P&G Distribution Global Marketing Objectives Three Hats The Foreign Entry Role The Local Marketing Role The Global Management Role Summary 2 Theoretical Foundations Introduction Country-Specific Advantages (CSAs) Comparative and Absolute Advantages The International Product Cycle (1PC) National Competitive Advantages The New Trade Theory CSAs and Country-of-Origin Effects Firm-Specific Advantages (FSAs) Knowledge-Based FSAs Marketing-Related FSAs Transferability of FSAs FSAs and Internalization FSAs and Transaction Costs FSAs in the Value Chain FSAs, CSAs, and Regionalization Extending Porter’s “Five Forces” Model Rivalry New Entrants Substitutes Buyer Power Supplier Power Rivalry between Global Competitors Competitive Strength Competitive Repertoire Global Rivalry Strategy and the Three Hats Summary 3 Cultural Foundations Introduction The Meaning of Culture Culture and Buyer Behavior Culture and Materialism Culture and the Core Benefit Cultures across Countries High versus Low Context Cultures “Silent Languages” Hofstede’s Cultural Dimensions Gannon’s Metaphors Culture and “How to Do Business” Managerial Styles Managing Subordinates Culture and Negotiations Know Whom You Are Dealing With Know What They Hear Know When to Say What Industrial Buyers The Business Marketing Task Cultural Conditioning Organizational Culture Relationship Marketing The Limits to Cultural Sensitivity Nonadaptation Culture and the Three Hats Foreign Entry Local Marketing Global Management Summary CASE 1-1: IKEA’s Global Strategy: Furnishing the World CASE 1-2: Globalization Headaches at Whirlpool PART TWO FOREIGN ENTRY 4 Country Attractiveness Introduction Regional and Country Indicators Political Risk Research Environmental Research Physical Environment Sociocultural Environment Economic Environment Trade Blocks and Regulatory Environment Systematic Entry Screening Stage 1—Country Identification Stage 2—Preliminary Screening Stage 3—In-Depth Screening Stage 4—Final Selection Personal Experience Country Data Sources Researching Competitors Strengths and Weaknesses Competitive Signaling Forecasting Country Sales A Basic Equation Stage of the Product Life Cycle Industry Sales The Build-Up Method Forecasting by Analogy An Illustration: TV Penetration Judgmental Forecasts Time Series Extrapolation Regression-Based Forecasts Forecasting Market Share Predicting Competition Identifying Competitors Domestic Competitors Foreign Competitors Summary 5 Export Expansion Introduction Four Modes of Entry Exporting Licensing Strategic Alliances (SAs) Wholly Owned Manufacturing Subsidiary The Impact of Entry Barriers Entry Barriers Defined The Cost of Barriers The Importer’s View Tariff and Nontariff Barriers Government Regulations Distribution Access Natural Barriers Advanced versus Developing Nations Exit Barriers Effect on Entry Mode The Exporting Option Indirect Exporting Direct Exporting The Exporting Tasks Product Shipment Export Pricing Local Distribution Payment Legal Issues After-Sales Support Importers as Trade Partners Summary 6 Licensing, Strategic Alliances, FDI Introduction Licensing Franchising Original Equipment Manufacturing (OEM) Strategic Alliances The Rationale for Nonequity SAs Distribution Alliances Manufacturing Alliances R&D Alliances Joint Ventures Manufacturing Subsidiaries Outsourcing Acquisitions Entry Modes and Marketing Control Optimal Entry Strategy The Entry Mode Matrix Optimal Modes Real-World Cases Global Expansion Paths The “Cultural Distance” Effect The International Learning Curve The Internationalization Stages Born Globals Waterfall versus Sprinkler Strategies Summary CASE 2-1: Toys “R” Us Goes to Japan CASE 2-2: Illycaffe (A): Internationalization CASE 2-3: Illycaffe (B): The Starbucks Threat CASE 2-4: AOL: International Expansion PART THREE LOCAL MARKETING 7 Understanding Local Customers Introduction Buyer Decision Making Problem Recognition Search Evaluation of Alternatives Choice Outcomes Local Buyer Research Problem Definition Qualitative Research Consumer Surveys Trade Surveys Observational Studies Explanatory (Causal) Research Measurement and Scaling Questionnaire Construction Sampling Fieldwork Local Market Segmentation Segmentation Criteria Local Product Positioning The Product Space Strategic Implications Overcoming Mispositioning Changing the Product Space Changing Customer Preferences Three Local Market Environments Marketing Environment Marketing Tasks Country Markets Summary 8 Local Marketing in Mature Markets Introduction Local Marketing in Mature Markets Market Segmentation Product Positioning Marketing Tactics Customer Satisfaction Close-Up: Pan-European Marketing Market Environment Foreign Trade Agreements Competition Market Segmentation Product Positioning Marketing Tactics Close-Up: Marketing in Japan Market Environment Foreign Trade Agreements Competition Market Segmentation Product Positioning Marketing Tactics Close-Ups: Marketing in Australia and New Zealand Market Environment Foreign Trade Agreements Competition Market Segmentation Product Positioning Marketing Tactics Close-Up: Marketing in North America Market Environment Foreign Trade Agreements Competition Market Segmentation Product Positioning Marketing Tactics Summary 9 Local Marketing in New Growth Markets Introduction Two Kinds of Markets The Role of Trade Blocs Market Segmentation Product Positioning Marketing Tactics Close-Up: Marketing in Latin America Market Environment Foreign Trade Agreements Market Segmentation Product Positioning Marketing Tactics Major Country Markets Pan-Regional Marketing Close-Up: Marketing in the New Asian Growth Markets Market Environment Foreign Trade Agreements Market Segmentation Product Positioning Marketing Tactics Major Country Markets Pan-Regional Marketing Close-Up: Marketing in India Market Environment Market Segmentation Product Positioning Marketing Tactics Summary 10 Local Marketing in Emerging Markets Introduction Local Marketing in Developing Countries Market Segmentation Product Positioning Pricing Distribution Promotion Close-Up: Marketing in Russia and the NDCs Market Environment Political and Legal Risks Market Segmentation Product Positioning Marketing Tactics Close-Up: Marketing in China Market Environment Foreign Entry Hong Kong’s Role Market Segmentation Product Positioning Marketing Tactics Continuous Change Vietnam: Another China? Close-Up: Marketing in the Middle East Governing Structures The Islam Factor Market Environment Trade Blocs Market Segmentation Product Positioning Distribution Promotion Summary CASE 3-1: P&G’s Pert Plus: A Pan-European Brand? CASE 3-2: Levi Strauss Japan K.K.: Selling Jeans in Japan CASE 3-3: Colgate-Palmolive: Cleopatra in Quebec? PART FOUR GLOBAL MANAGEMENT 11 Global Marketing Strategy Introduction The Global Marketer’s Mindset Selling Orientation Standardization Coordination Centralization The New Global Mindset Global Market Planning The Boston Consulting Group Portfolio Matrix The GE/McKinsey Matrix Ford’s Country Matrix Global Resource Allocation Global Market Segmentation Macrosegmentation Diversification versus Focus A Case Illustration Targeting Segments Competitive Analysis Profitability Analysis Global Product Positioning Key Positioning Issues Global STP Strategies Global Marketing Planning Summary 12 Global Products and Services Introduction The Pros and Cons of Standardization The Advantages of Standardization The Drawbacks of Standardization Which Features to Standardize? Localization versus Adaptation Basic Requirements Compatibility Requirements Multisystem Compatibility Pitfalls of Global Standardization Insufficient Market Research Overstandardization Poor Follow-Up Narrow Vision Rigid Implementation Global Product Lines Developing New Global Products Idea Generation Preliminary Screening Concept Research Sales Forecast Test Marketing Globalizing Successful New Products New Product Success Factors Speed of Diffusion Global Services Characteristics of Services A Product Equivalence Service Globalization Potential Stage of the Life Cycle Infrastructure Barriers Idiosyncratic Home Market Foreign Entry of Services Foreign Trade in Services Service Entry Modes Entry and Exit Barriers Controlling Local Service Quality Critical Incidents in Global Services Summary 13 Global Branding Introduction Brands Defined Global, Regional, and Local Brands Extending the Brand Concept Nation Branding Place Branding How Brands Function Risk Avoidance and Trust Longevity and Familiarity Iconic and Experiential Emotional Drivers Cultural Differences Brand Equity Brand Valuation The Advantages of Global Brands The Disadvantages of Global Brands Global versus Local Brands Acquiring a Local Brand? The Brand Portfolio Globalizing a Local Brand Changeover Tactics Defending Local Brands The Advantages of Local Brands Counterfeit Products Extent of Problem Counterfeit Demand Actions against Counterfeits Summary 14 Global Pricing Introduction A Global Pricing Framework Pricing Basics The Role of Costs Experience Curve Pricing Competition Demand Financial Issues Exchange Rates Hedging Government Intervention Transfer Pricing Definition The Arm’s-Length Principle Approaches to Transfer Pricing Conflicting Objectives Countertrade Business Evaluation Systems Pricing Price and Positioning Price–Quality Relationships The PLC Impact Global Coordination Pricing Actions against Gray Trade Global Pricing Policies Polycentric Pricing Geocentric Pricing Ethnocentric Pricing Managerial Trade-Offs Summary 15 Global Distribution Introduction Distribution as Competitive Advantage Rationalizing Local Channels Changing Distributors Dual Distribution Wholesaling Vertical Integration Types of Wholesalers Retailing Retailing and Lifestyles Creating New Channels Global Retailing Global Logistics Competition and Technology Air Express Ocean Carriers Overland Transportation Warehousing Parallel Distribution Gray Trade Effects of Gray Trade Channel Actions against Gray Trade Multiple Distribution Channels Global Channel Design The FSAs Revisited Availability of Channels Channel Tie-Up Coordination and Control Summary 16 Global Advertising Promotion as a Global Advantage The Global Advertising Task The International World of Advertising Advertising Volume Media Usage Global Media Strategic Implications Pros and Cons of Global Advertising Cost Advantages Global Markets Global Products and Brands Globalization Examples The Global Advertiser’s Decisions Strategy Budgeting and Organization The Global Advertising Agency Agency Globalization The Agency’s Task Message and Creative Identical Ads Prototype Advertising Pattern Standardization Media Selection The Digitalization of Advertising Close-Up: Goodyear in Latin America 1. Preliminary Orientation (September) 2. Regional Meeting to Define Communications Strategy (October) 3. Advertising Creative Meeting (November) 4. Qualitative Research Stage (November-December) 5. Research Review Meeting (January) 6. Final Creative Review (March) Lessons Summary 17 Global Promotion, E-Commerce, and Personal Selling Introduction Global Sales Promotion In-Store and Trade Promotions Sponsorships Event Marketing Cause Marketing Cross-Marketing Product Placement Publicity “GoodNews “ Global Public Relations International Trade Fairs Direct Marketing Global Strategy Electronic Commerce E-tailing Growth Marketing Strengths and Weaknesses Promoting the Site Global Personal Selling Managing a Sales Force Personal Salesmanship The Presentation Be Prepared! Handling Objections Closing Tactics Integrated Marketing Communications Summary 18 Organizing for Global Marketing Introduction The Context The Task Organizational Structure A Dominant Regional Structure? The Global Network as an Asset Painful History The Win–Win View Globalizing Management Global Marketing Directors Global Teams Management Systems Informal Coordination Coordinating Committees Coordinating Staff People and Organizational Culture Local Acceptance Corporate Culture The Expatriate Manager Global Customers Global Account Management Retail Trade Groups Conflict Resolution The Good Global Marketer Summary CASE 4-1: Banyan Tree Hotels and Resorts: Building an International Brand from an Asian Base CASE 4-2: Texas Instruments: Global Pricing in the Semiconductor Industry CASE 4-3: United Colors of Benetton CASE 4-4: Cathay Pacific Airways: China or the World? CASE 4-5: Hewlett-Packard’s Global Account Management Index