Solution Manual for Global Marketing, 8th Edition

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1CHAPTER 1INTRODUCTION TO GLOBAL MARKETINGSUMMARYA.Marketing is an organizational function and a set of processes for creating,communicating, and delivering value to customers and for managing customerrelationships in ways that benefit the organization and its stakeholders. A company thatengages in globalmarketingfocuses resources on global market opportunities and threats.Successful global marketers such as Nestlé, Coca-Cola, and Honda use familiarmarketing mix elements–the four Ps–to createglobalmarketing programs.B.Marketing, R&D, manufacturing, and other activities comprise a firm’s value chainthevalue equation (V =B/P) expresses the relationship between values and the marketingmix.C.Global companies also maintain strategic focus while pursuing competitive advantage.The marketing mix, value chain, competitive advantage, and focus are universal in theirapplicability, irrespective of whether a company does business only in the home countryor has a presence in many markets around the world. However, in a global industry,companies that fail to pursue global opportunities risk being pushed aside by strongerglobal competitors.D.A firm’s global marketing strategy (GMS) can enhance its worldwide performance. TheGMS addresses several issues. First isthenature of the marketing program in terms of thebalance between a standardization (extension) approach to the marketing mix and alocalization (adaptation) approachthatis responsive to country or regional differences.Second is theconcentration of marketing activitiesin a few countries or the dispersal ofsuch activities across many countries. Companies that engage in global marketing canalso engage incoordination of marketing activities. Finally, a firm’s GMS will addressthe issue ofglobal market participation.E.The importance of global marketing today can be seen in the company rankings compiledby theWall Street Journal, Fortune,Financial Times,and other publications. Whetherranked by revenues, market capitalization, or some other measure, most of the world’smajor corporations are active regionally or globally. The size of global markets forindividual industries or product categories helps explain why companies “go global”.Global markets for some product categories represent hundreds of billions of dollars inannual sales; other markets are much smaller. Whatever the size of the opportunity,successful industry competitors find that increasing revenues and profits means seekingmarkets outside the home country.

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2F.Company management can be classified in terms of its orientation toward the world:ethnocentric, polycentric, regiocentric, or geocentric. The terms reflect progressive levelsof development or evolution. An ethnocentric orientation characterizesdomesticandinternational companies;international companies pursue marketing opportunities outsidethe home market by extending various elements of the marketing mix. A polycentricworldview predominates at amultinational company,where the marketing mix is adaptedby country managers operating autonomously. Managers atglobalandtransnationalcompaniesare regiocentric or geocentric in their orientation and pursue both extensionand adaptation strategies in global markets.G.The dynamic interplay of several driving and restraining forces shapes the importance ofglobal marketing. Driving forces include market needs and wants, technology,transportation and communication improvements, product costs, quality, world economictrends, and recognition of opportunities to develop leverage by operating globally.Restraining forces include market differences, management myopia, organizationalculture, and national controls such as nontariff barriers (NTBs).OUTLINE OF THE BOOKThe book is divided into five parts.Part 1: An overview of global marketing and the basic theory of global marketing.Part 2: The environments of global marketing.Part 3: Approaching global markets (global strategy)Part 4: The marketing mix in global marketing.Part 5: Corporate strategy, leadership, and the impact of the digital revolution on globalmarketing.LEARNING OBJECTIVES1Use the product/market growth matrix to explain the various ways a companycan expandglobally2Describe how companies in global industries pursue competitive advantage3Compare and contrast single-country marketing strategy with global marketingstrategy (GMS)4Identify the companies at the top of the Global 500 rankings

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35Explain the stages a company goes through as its management orientationevolves fromdomestic and ethnocentric to global and geocentric.6Discuss the driving and restraining forces affecting global integration today.DISCUSSION QUESTIONS1-4.What are the basic goals of marketing? Are these goals relevant to global marketing?Marketing activities represent an organization’s efforts to satisfy customer wants andneeds by offering products and services that create value. These goals are relevant invirtually every part of the world; however, when an organization pursues marketopportunities outside of its home country (domestic) market, managers need anunderstanding of additional conceptual tools and guidelines in order to do business inthese other countries–in other words, to create value and satisfy consumer needs andwants.1-5.What is meant by “global localization?” Is Coca-Cola a global product? Explain.The phrase “global localization” represents an attempt to capture the spirit of the rallyingcry for organizations in the 21stcentury, namely, “think globally, act locally, and manageregionally.” Most students will agree that Coca-Cola is a global product by virtue of thefact that it is available in more than 195 countries in red cans bearing the distinctivesignature style. It must be noted, however, that customer service efforts are adapted to theneeds of particular markets (for example, vending machines in Japan). Thus, Coca-Colais both global and local.1-6.A company’s global marketing strategy (GMS) is a crucial,competitive tool. Describesome of the global marketing strategies available to companies. Give examples of companies thatuse the different strategies.This question invites reference to Table 1-2. Strategies includeglobal branding(Coca-Cola, Marlboro),product design(McDonald’s restaurants and menu items),positioning(Harley-Davidson),packaging(Gillette Sensor), distribution (Benetton), customer service(Caterpillar), and sourcing (Toyota, Gap).1-7. UK-based Burberry is a luxury fashion brand that appeals to both genders and all ages. Toimprove Burberry’s competitiveness in the luxury goods market, CEO Angela Ahrendts recentlyunveiled a new strategy that includes all the elements of the marketing mix. Their strategy alsoaddresses key markets that Burberry will participate in, as well as the integration andcoordination of marketing activities. Search for recent articles about Burberry and write a briefsummary that outlines Burberry’s GMS.Student answers will vary, but all should contain the facts that the new CEO intends tobroaden the brand’s appeal and introduce two new logos.

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41-8. Discuss the differences between theglobal marketing strategies of Harley-Davidson andToyota?Harley-Davidson motorcycles are known the world over as “the” all-Americanmotorcycle. Harley’s mystique and heritage are associated with America. The companybacks up this positioning with exports from two U.S. manufacturing locations. Bycontrast, Toyota builds some models (e.g. Camry) for the U.S. market in the U.S., a factthat Toyota stresses in its American advertising. Thus, Harley-Davidson serves globalmarkets while sourcing locally, while Toyota’s strategy calls for serving world marketsand using the world as a source of supply.1-9. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentricmanagement orientations.The premise of an ethnocentric orientation is that home country products andmanagement processes are superior. An ethnocentric company that neither sources inputsfrom, nor seeks market opportunities in the world outside the home country may beclassified as aninternationalcompany. A company that does business abroad while stillpresuming the superiority of the home country may be classified as aninternationalcompany.Such a company would rely on an extension strategy whereby it would export,without adaptation, products designed for the domestic market.The polycentric orientation that predominates at amultinationalcompany leads to a viewof the world in which each country market is different from the others. Local countrymanagers operating with a high degree of autonomy adapt the marketing mix in apolycentric, multinational company. Managers who areregiocentricorgeocentricin theirorientations recognize both similarities and differences in world markets. Marketopportunities are pursued using both extension and adaptation strategies. The regiocentricand geocentric orientations are characteristic of global transnational companies.1-10. Identify and briefly describe some of the forces that have resulted in increased globalintegration and the growing importance of global marketing.The dynamic involving driving and restraining forces is shown diagrammatically inFigure 1-2. Driving forces include regional economic agreements such as NAFTA,converging market needs and wants, technology advances such as the Internet and globalTV networks, transportation improvements, the need to recoup high product developmentcosts in global markets, the need to improve quality through R&D investment, worldeconomic trends such as privatization and finally, opportunities to use leverage, corporateculture, and the continuing presence of national controls that create trade barriers.1-11. Defineleverageand explain the different types of leverage utilized by companies withglobal operations.

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5Webster’sNew World Dictionarydefines “leverage” as an“increased means ofaccomplishing some purpose.” A global company can take advantage of several types ofleverage in pursuit of corporate goals such as profit or revenue growth. These includeexperience transfers, scale economies, enhanced resource utilization, and global strategy.1-12. Each July,Fortunepublishes its Global 500 listing of the world’s largest companies.You can find the currentrankings online at: http://money.cnn.com/magazines/fortune/global500/2012/fulllist. Alternatively, you can consult the print edition ofFortune.Browse through the list and choose any company thatinterests you. Compare its 2012ranking with the most recent ranking. Has the company’s ranking changed? Consultadditional sources (e.g., magazine articles, annual reports, the company’s Web site) toget a better understanding of the factors and forces that contributed to the company’smove up or down in the rankings. Write a brief summary of your findings.Each student’s answer will vary based upon the company they chose.1-13. There’s a saying in the business world that “nothing fails like success”. Take Gap, forexample. How can a fashion retailer that was oncethesource for wardrobe staples such aschinos and white T-shirts suddenly lose its marketing edge? Motorola has also fallen victim toits own success. The company’s Razr cell phone was a huge hit, but Motorola struggled toleverage that success.Now, Google owns Motorola Mobility.Also, Starbucks CEO HowardShultz recently warned that his company and brand risk becoming commoditized.And, as notedin Case 1-3, some industry observers are saying that Apple has “lost its cool”.If you were tomake separate recommendations to management at each of these companies, what would yousay?Each student’s answer will vary but their answers should incorporate such terms as globalmarketing, marketing mix strategy, value chain, V = B/P, strategic focus, globalmarketing strategy, extension, adaption, ethnocentric, polycentric, regiocentric, orgeocentric orientations in their responses. Perhaps, a phrase that could be said to each ofthese chief executives is “think globally, act locally”.OVERVIEWThe growing importance of global marketing is one aspect of a sweeping transformation that hasprofoundly affected the people and industries of many nations during the past 160 years.Fourdecades ago, the phraseglobal marketingdid not even exist. Today businesspeople utilizeglobal marketing to realize their companies’ full commercial potential. However, there isanother, even more critical reason why companies need to take global marketing seriously:survival. A management team that fails to understand the importance of global marketing riskslosing its domestic businesstocompetitors with lower costs, more experience, and betterproducts.

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6But what is global marketing? How does it differ from “regular” marketing? Marketingcan bedefined as the activity, set of institutions, and processes for creating, communicating, anddelivering value for customers, clients, partners, and society at large.Marketing activities center on an organization’s efforts to satisfy customer wants and needs withproducts and services that offer competitive valueand for managing customer relationships inways that benefit the organization and its stakeholders. The marketing mix (product, price, place,and promotion) comprises a contemporary marketer’s primary tools. Marketing is a universaldiscipline–as applicable in Argentina as it is in Zimbabwe.✓(Learning Objective #1)This book is aboutglobal marketing.An organization that engages inglobal marketingfocusesits resources and competencies on global market opportunities and threats. A fundamentaldifference between regular marketing and global marketing is the scope of activities. A companythat engages in global marketing conducts important business activities outside the home-countrymarket. The scope issue can be conceptualized in terms of the familiar product/market matrix ofgrowth strategies (see Table 1-1). Some companies pursue amarket development strategy; thisinvolves seeking new customers by introducing existing products or services to a new marketsegment or to a new geographical market.Global marketing can also take the form of adiversification strategyin which a company createsnew product or service offerings targeting anew segment, a new country, or a new region.Fourof the growth strategies shown in Table 1-1:(Chapter 1, Page 5)Four Stages-StarbucksMarket penetration: Starbucks is building on its loyalty card and rewards program inthe United States with a smartphone app that enables customers to pay for purchaseselectronically. The app displays a bar code that the barista can scan.Market development: Starbucks is entering India via an alliance with the Tata Group.Phase one calls for sourcing coffee beans in India and marketing them at Starbucksstoresthroughout the world. The next phase will likely involve opening Starbucksoutlets inTata’s upscale Taj hotels in India.Product development: Starbucks created a brand of instant coffee, Via, to enable itscustomers to enjoy coffee at the office and other locations where brewed coffeeis notavailable. After a successful launch in the United States, Starbucks rolled out Via inGreat Britain, Japan, South Korea, and several other Asian countries.Diversification: Starbucks has launched several new ventures, including music CDsandmovie production. Next up: Revamping stores so they can serve as wine bars andattractnew customers in the evening.

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7Companies that engage in global marketing frequently encounter unique or unfamiliar featuresinspecific countries or regions of the world. In some regions of the world, bribery and corruptionare deeply entrenched. A successful global marketer understands specific concepts and has abroadand deep understanding of the world’s varied business environments. He or she also mustunderstandthe strategies that, when skillfully implemented in conjunction with universalmarketing fundamentals,increase the likelihood of market success.ANNOTATED LECTURE/OUTLINEPrinciples of Marketing: A ReviewMarketing is one of the functional areas of business–distinct from finance and operations.Marketing is the set of activities and processes that (along with product design, manufacturing,and transportation) comprises a firm’s value chain.Decisions at every stage of the process–from idea conceptualization to customer support afterthe sale–should be assessed in terms of their ability to create value for customers.The core of marketing is to surpass the competition in creating perceived value for customers.The value equation is the guide to this task:Value = Benefits / Price (money, time, effort, etc.)The marketing mix is central to this equation because benefits are a combination of the product,promotion, and distribution components of the mix.Value to the customer can be increased in two ways–1)an improved bundle of benefits or 2)alower price (or both):1)Marketers may improve the product, design new channels of distribution, communicatebetter–or a combination of all three.2)Marketers may seek ways to cut costs or lower the price. Nonmonetary costs may belowered by decreasing the time and effort customers must expend to learn about oracquire a product.If a company is able to offer a combination of superior product, distribution, and promotion ofthe benefits AND offer lower prices than its competition, it should enjoy anextremelyadvantageous position.Recall the definition of a market:people or organizations that are bothable and willing tobuy.In order to achieve market success, a product or brand must measure upto a threshold ofacceptable quality and be consistent with buyer behavior, expectations, andpreferencesCompetitive Advantage, Globalization, and Global Industries

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8✓(Learning Objective #2)When a company succeeds in creating more value for customers than its competitors, thatcompany is said to enjoy competitive advantage in an industry. Competitive advantage ismeasuredrelative torivals with whom you compete in the industry–whether that is on a local,national, or global level.Global marketing is essential if a company competes in a global industry or one that isglobalizing.The process ofglobalizationis the transformation of formerly local or national industries intoglobal ones.From a marketing point of view, globalization presents companies with tantalizingopportunities—and challenges—as executives decide whether to offer their products andserviceseverywhere.As definedby management guru Michael Porter, aglobal industryis one in which competitiveadvantage canbe achieved by integrating and leveraging operations on a worldwide scale. Putanother way, anindustry is global to the extent that a company’s industry position in one countryis interdependentwith its industry position in other countries. Indicators of globalization includethe ratio of cross-bordertrade to total worldwide production, the ratio of cross-border investmentto total capitalinvestment, and the proportion of industry revenue generated by companies thatcompete in allkey world regions.One way to determine the degree of globalization in anindustrysector is to calculate the ratio of the annual value of global trade in the sector—includingcomponents shipped to various countries during the production process—to the annualvalue ofindustry sales.Achieving competitive advantage in a global industry requires executives and managers tomaintain a well-defined strategic focus.Focusis simply the concentration of attention on a corebusiness or competence.Companies that understand and engage in global marketing can offermore overallvalue to customers than companies that do not have that understanding.Global Marketing: What It Is and What It Isn’tThe discipline of marketing is universal. It is natural, however, that marketing practices willvary from country to country, for the simple reason that the countries and peoples of the worldare different. A successful marketing approach in one country may notnecessarilysucceed inanother. Customer preferences, competitors,channels of distribution, and communication mediamay differ. An important managerial task inglobal marketing is learning to recognize the extentto which it is possible to extend marketingplans and programs worldwide, as well as the extentto which adaptation is required.✓(Learning Objective #3)

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9The way a company addresses this task is a reflection of its global marketing strategy (GMS). Insingle-country marketing, strategy development addresses two fundamental issues:choosing atarget market and developing a marketing mix. The same two issues are at the heart ofa firm’sGMS, although they are viewed from a somewhat different perspective (see Table 1-2).The Cultural Commentary from Great BritainTells the story about how the rock band the Kinks were a hit in the US and other westerncountries in the 60’s due to their globalization of their music and the story of Ford’s plant inEnglandnowaccounting for 25% of the company’s engine manufacturing.a)Global market participation–is the extent to which a company has operations in majorworld markets.b)Standardization versus adaptation–is the extent to which each marketing mix elementcan be standardized (used the same way) or must be adapted (used in different ways) indifferent country markets.c)Concentration of marketing activities–is the extent to which activities related to themarketing mix (such as pricing decisions) are performed in one or only a few countrylocations.d)Coordination of marketing activities–is the extent to which marketing activities relatedto the mix are planned and executed interdependently around the globe.e)Integration of competitive moves–the extent to which a firm’s competitive marketingtactics in different parts of the world are interdependent.The decision to enter one or more particular markets outside the home country depends on acompany’s resources, its managerial mind-set, and the nature of opportunities and threats.Global marketing does mean widening business horizons to encompass the world in scanning foropportunities and threats.The four emerging markets of Brazil, Russia, India, and China represent significant growthopportunities. They are known as BRIC. Mexico, Indonesia, Nigeria,and Turkey—the so-calledMINTs—also hold great potential.We can use Burberry as a case study in global marketing strategy. The U.K.-based luxurybrandis available in scores of countries, and Burberry’s current expansion plans emphasizeseveralgeographical areas.Burberry’s marketingmix strategy includes the following:Product:Boost sales of handbags, belts, and accessories—products whose sales are lesscyclicalthan clothing.Price:More expensive than Coach, less expensive than Prada. “Affordable luxury” iscentral tothe value proposition.Place:Burberry intends to open more independent stores in the United States.

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10Promotion:Roll out new logo to reduce “plaid overexposure.” Use social media such asTwitterand www.artofthetrench.com.The issue of standardization versus adaption has been at the center of a long-standingcontroversy among both academicians and business practitioners. Much of the controversy datesback to the days of Theodore Levitt’s (1983) “homogenized global market.” Levitt envisioned aglobal community where standardized, high-quality world products would be marketed in astandardized manner.The “homogenized global market” view didn’t work. Even those companies that have becomeglobal successes have not done so through total standardization of the product.Global marketing made Coke a worldwide success. However, that success wasnotbased on atotal standardization of marketing mix elements.Coca-Cola succeeded through the application of global localization. What does the term “globallocalization” really mean? Global localization: Think globally, act locally (refer to Table 1-3).a)For example, Cinnabon’s customers in Central and South America prefer dulce de leche.Products developed in those regions being introduced in the U.S., where the Hispanicpopulation is a key segment.b)Starbucks opened an experimental store in Amsterdam that serves as a testing ground fornew design concepts such as locally sourced and recycled building materials.c)Kraft’s Tang powder became a $ 1 billion brand as regional managers in Latin Americanand the Middle East moved beyond orange (the top-seller) into popular local flavors suchas mango and pineapple. Kraft plans to use these lessons learned on the U.S. market.Global marketing may include a combination of standard and nonstandard approaches. Globalmarketing requires marketers to think and act in a way that is both globalandlocal byresponding to similarities and differences in world markets (refer to Exhibit 1-4).The particular approach to global marketing that a company employs will depend on industryconditions and its sources of competitive advantage.For example, McDonald’s global marketing strategy is based on a combination of global andlocal marketing mix elements (refer to Table 1-4).a)For example, Harley-Davidson’s competitive advantage is based in part on “Made in theUSA.” Moving production to a low-wage country would tarnish its image.b)Toyota’s and Honda’s success in the US has come through its ability to transfer world-class manufacturing skills to America and advertising that the Camry is “Made in theUSA” by Americans.

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11c)Uniqlo, a division of Japan’s Fast Retail operates about 850 stores in Japan and 300stores in 12 overseas countries. Uniqlo currently has 6 stores in the U.S. but plans callfor a total of 200 stores by 2020.The Importance of Global MarketingThe largest single market in the world in terms of national income is The United States,representing roughly 25 percent of the total world market for all products and services.U.S. companies that wish to achieve maximum growth potential must “go global” because 75percent of the world market potential is outside of their home country.Non-US companies have an even greater incentive to “go global;” their potential markets includethe 300 million people in the US.Management Orientations✓(Learning Objective #5)The form and substance of a company’s response to global market opportunities will dependgreatly onitsmanagement’s assumptions and beliefs–both conscious and unconscious-aboutthe nature of the world.The world view of a company’s personnel can be described as ethnocentric, polycentric,regiocentric, and geocentric. The orientations are collectively known as the EPRG framework.Ethnocentric Orientation:a)A person who assumes that his/her home country is superior to the rest of the world.b)Associated with national arrogance or feelings of national superiority.c)At some companies, the ethnocentric orientation means that opportunities outside of thehome country are routinely ignored (domesticcompanies).d)Ethnocentric companies that conduct business outside their home country are known asinternationalcompanies–they believe products that succeed in the home country aresuperior.e)Leads to a standardized or extension approach–the belief that products can be soldeverywhere without adaptation.f)Foreign operations or markets are viewed as inferior or subordinate to the home market.g)Headquarters knowledge is applied everywhere; local knowledge is viewed asunnecessary.Polycentric Orientation:a)The opposite view of ethnocentrism.b)The belief that each country in which you do business is unique.c)This assumption allows each subsidiary to develop its own unique marketing strategies inorder to succeed.d)The termmultinational companyis often used to describe such a structure.

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12e)Leads to a localized or adaptation view that assumes products MUST be adapted tosucceed.Regiocentric Orientation:a)The region becomes the relevant geographic unit.b)Management’s goal is to develop a regionallyintegrated strategy (e.g. NAFTA or theEU).c)May be viewed as a variant of the multinational view (polycentric).Geocentric Orientation:a)Views the entire world as a potential market and strives to develop integrated globalstrategies.b)These companies are known asglobalortransnationalcompanies.c)Serves world markets from a single country or sources globally for the purposes offocusing on select country markets.d)Tend to maintain their association with a particular headquarters country. (Harley-Davidson and Waterford serve world markets from the US and Ireland, respectively.)e)Transnational companies serve global markets and utilize global supply chains.f)Transnational companies both serve global markets and utilize global supply chains andoften have a blurring of national identity. A true transnational would bestateless. (Toyotaand Honda are examples of companies that exhibit key characteristics of transnationality(see Exhibit 1-7)g)A key factor that distinguishes global and transnational companies from international ormultinational companies ismind-set:At global and transnational companies, decisionsregarding extension and adaptation are not based on assumptions but rather on made onthe basis of ongoing research into market needs and wants.h)It is a synthesis of ethnocentrism and polycentrism–it is a “world view.”i)Seeks to build a global strategy that is responsive to local needs and wants.It is a positive sign that, at many companies, management realizes the need to adopt ageocentricorientation. However, the transition to new structures and organizational forms cantake time tobear fruit.A global company can be further described as one that pursues either a strategy of servingworldmarkets from a single country or one that sources globally for the purposes of focusing onselectcountry markets. In addition, global companies tend to retain their association with aparticularheadquarters country.At global and transnational companies, management uses a combinationofstandardized (extension) and localized (adaptation) elements in the marketing program.One way to assess a company’s “degree of transnationality” is to compute an average ofthreefigures: (1) sales outside the home country to total sales, (2) assets outside the homecountry tototal assets, and (3) employees outside the home country to total employees. Viewedin terms ofthese metrics, Nestlé, Unilever, Royal Philips Electronics, GlaxoSmithKline, and theNewsCorporation can also be categorized as transnational companies.

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13Each is headquartered ina relatively small home country market, a fact of life that has compelledmanagement to adoptregiocentric or geocentric orientations to achieve revenue and profitgrowth.The geocentric orientation represents a synthesis of ethnocentrism and polycentrism; itis a“worldview” that sees similarities and differences in markets and countries and seeks to create aglobal strategy that is fully responsive to local needs and wants.A regiocentric manager might besaid to have a worldview on a regional scale; the world outsidethe region of interest will beviewed with an ethnocentric or a polycentric orientation, or acombination of the two.However,recent research suggests that many companies are seeking to strengthen their regionalcompetitivenessrather than moving directly to develop global responses to changes in thecompetitiveenvironmentThe ethnocentric company is centralized in its marketing management; the polycentric companyis decentralized; and the regiocentric and geocentric companies are integrated on a regionalandglobal scale, respectively. A crucial difference between the orientations is the underlyingassumption for each.The ethnocentric orientation is based on a belief in home-country superiority.The underlyingassumption of the polycentric approach is that there are so many differencesin cultural,economic, and marketing conditions in the world that it is futile to attempt to transferexperienceacross national boundaries.A key challenge facing organizational leaders today is managing a company’s evolution beyondan ethnocentric, polycentric, or regiocentric orientationto a geocentric one. As noted in onehighly regarded book on global business,“The multinationalsolution encounters problems by ignoring a number of organizationalimpediments to the implementationof a global strategy and underestimating the impact of globalcompetition.”Innovation, Entrepreneurship, and the Global StartupKevin Plank, Under ArmourIn less than 20 years Under Armour is on track to reach $ 1.5 billion in sales. Under Armour isintent on building their brand into “the biggest brand in the land”. In 2012, only 6 percent ofUnder Armour’s revenues were generated outside of North America. Some industry observersthink Under Armour is planning significant global product introductions times to coincide withthe 2016 Summer Olympic Games in Brazil.Forces Affecting Global Integration and Global Marketing✓(Learning Objective #6)

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14The remarkable growth of the global economy over the past 65 years has been shaped by thedynamic interplay of various driving and restraining forces. Regional economic agreements,converging market needs and wants, technology advances, and pressures to cut costs, pressuresto improve quality, improvements in communications and transportation technology, globaleconomic growth, and opportunities for leverage all represent important driving forces.Converging Market Needs and Wants and the Information RevolutionA person studying markets around the world will discover cultural universals as well asdifferences. The common elements in human nature provide an underlying basis for theopportunity tocreate and serve global markets. Most global marketsdo not exist in nature–marketing efforts must create them. (For example, no oneneedssoft drinks.)Evidence is mounting that consumer needs and wants around the world are converging today asnever before. This creates an opportunity for global marketing.Multinational companies pursuing a strategy of product adaptation run the risk of falling victimto global competitors that have recognized opportunities to serve global customers.The information revolution—what some refer to as the “democratization of information”—isone reason for the trend toward convergence. Thanks to satellite dishes and globe-spanning TVnetworks (CNN and MTV), it seems as though almost everyone has the opportunity to comparetheir lives against everyone else’s.The Internet is an even stronger driving force. When a company establishes a presence on theInternet, it is automatically a global company.Transportation and Communication ImprovementsTime and cost barriers associated with distance have fallen tremendously over the past 100 years.The jet airplane revolutionized communication by making it possible for people to travel aroundthe world in less than 48 hours.In 1970, 75 million passengerstraveled internationally. By 2011, that figure rose to almost980million.The newest communication technologies, such as e-mail, video teleconferencing, and Wi-Fi,mean that managers, executives, and customers can link up electronically from virtually any partof the globe without traveling at all.A similar revolution is occurring in transportation technology. The costs associated with physicaldistribution–in both money and time–have been greatly reduced.Product Development Costs

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15The pressure for globalization is intense when new products require major investment and longperiodsof development time. The pharmaceutical industry provides a good example of thisdriving force.Today, the process of developing a new drug and bringing it to market can span 14 years andexceed $400 million. Such cost must be recovered globally because no single national market islikely to be large enough to support investments of this size. (Refer to Table 1-15).QualityGlobal companies “raise the bar” for all competitors in an industry. When a global companyestablishes a benchmark for quality, competitors must quickly make their own improvement andcome up to par. Global marketing strategies can generate greater revenue and greater operatingmargins, which, in turn, support design and manufacturing quality.World Economic TrendsPrior to the global economic crisis that began in 2008, economic growth had been a driving forcein the expansion of the international economy and the growth of global marketing for threereasons:a)Economic growth in key developing countries has created market opportunities thatprovide a major incentive for companies to expand globally.b)Economic growth has reduced resistance that might otherwise have developed inresponse to the entry of foreign firms into domestic economies. (When a country such asChina experiences rapid economic growth, policy makers are more likely to lookfavorably on outsiders.)c)The worldwide movement toward free markets, deregulation, and privatization is thethird driving force. (Telephone company privatization is an example.)LeverageA global company possesses the unique opportunity to develop leverage. In the context of globalmarketing,leveragemeans some type of advantage that a company enjoys by virtue of the factthat it has experience in more than one country.Leverage allows a company to conserve resources when pursuing opportunities in newgeographical markets.Four important types of leverage exist:1)Experience Transfers–A global company can leverage its experience in anymarket in the world by drawing on management practices, strategies, products,

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16advertising appeals, or sales or promotional ideas that have been market-tested inone country and applied to another.2)Scale Economies–The global company can take advantage of its greatermanufacturing volume to obtain traditional scale advantages. Finished productscan be manufactured by combining components manufactured in scale-efficientplants in different countries.3)Resource Utilization–A global company has the ability to scan the entire worldto identify people, money, and raw materials that will enable it to compete mosteffectively in world markets.4)Global Strategy–The global company’s greatest advantage is its global strategy.A global strategy is built on an information system that scans the world businessenvironment to identify opportunities, trends, threats, and resources.A globalstrategy is a design to create a winning strategy on a global scale.Note: A globalstrategy is NO guarantee of ongoing organizational success. (Consider InBev’sacquisition of Anheuser-Bush, Daimler-Chrysler, and Deutsche Post’s DHL unit.)Restraining FactorsDespite the impact of the driving forces previously discussed, several restraining forces mayslow a company’s efforts to engage in global marketing. Luckily, in today’s world the drivingforces predominate over the restraining forces. That is why the importance of global marketing issteadily growing.Important restraining forces include:a)Management Myopia and Organizational Culture–Management may simply ignoreopportunities to pursue global marketing. A company that is ethnocentric (or“nearsighted”) will not expand geographically. Myopia is a recipe for market disaster ifheadquarters attempts to dictate when it should listen. Successful global marketingrequires a strong local team “on the ground” to provide information about local markets.b)National Controls–Every country protects the commercial interests of local businessesby maintaining control over market access and entry in both low-and high-techindustries. Today, tariff barriers have been largely removed in high-income countries.Still, nontariff barriers (NTBs), such as “Buy American” campaigns, make it difficult forcompanies to gain access to local markets.c)Opposition to Globalization–To many people, globalization represents a threat.Globaphobiais used to describe an attitude of hostility toward trade agreements or globalbrands. Opponents of globalization include labor unions, university students andnongovernmental organizations (NGOs).CASESCase1-1: The Global Marketplace: The Assignment

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17Answers given in the text book.Case 1-1 Discussion Questions1-14. Anheuser-Busch, which has been described as “an American icon,” is now under theownership of a company based in Belgium. Responding to reports that some consumers plannedto boycott Bud products to protest the deal, one industry observer said, “Brand nationality is allabout where it was born, and also the ingredients of that beer and how they make the beer:Basically, it doesn’t matter who owns it. We are in a global world right now”. Do you agree?Students answers will vary based on their agreement or disagreement with this statement.Good students will introduce key words like ethnocentric, polycentric, regiocentric, andgeocentric in their answers to describe their view of the manufacturer of beer and howthey “feel” about the national origin(s) of and about the beer they drink.1-15. Anheuser-Busch, (A-B) has long enjoyed a reputation as a very desirable place to work.Executives were awarded well-appointed corporate suites and traveled on corporate jets; manyhad secretaries as well as executive assistants. When managerstook commercial flights, theyflew first class. Most employees received beer for free and could count on donations of beer andmerchandise for community events. Tickets to Cardinal home games were also used as amarketing tool. A-B spent heavily on advertising and promotion; various advertising agenciesproduced about 100 new ads for A-B each year. Given these facts, what changes, if any, wouldyou expect A-B’s new owners to make? Why?Student answers should explain the differences in / among / between the differentmanagement orientations and compare and contrast the ethnocentric orientation of A-Bbeverage company versus their new Belgium owners. One could argue that A-BInBev,the new owners of A-B practice a polycentric orientation towards selling beer around theworld. In that case, the marketing sales and promotional practices previously enjoyed byA-B most likely will continue. However, the executive “perks” will most likely decrease.

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181-16. In 2009, Italy’s Fiat acquired a 20 percent stake in Chrysler, another iconic Americancompany. Are you familiar with Fiat? What do you think CEO Sergio Marchionne hope toaccomplish with this deal? How might Chrysler benefit from the alliance?CEO Sergio Marchionne hopes to turn Fiat into a transnational company serving globalmarkets and utilizing global supply chains. His strategy might be to turn Fiat into ageocentric company. Chrysler might benefit from the alliance by becoming a “global”brand instead of just an “American icon.”1-17. Ben & Jerry’s Homemade is a quirky ice cream marketer based in Burlington, Vermont.Founders Ben Cohen and Jerry Greenfield are legendary for enlightened business practices thatinclude a three-part mission statement: product mission, financial mission, and social mission.When the company was acquired by consumer products giant Unilever, some of the brand’sloyal customers were alarmed. What do you think was the source of their concern?The form and substance of a company’s response to global market opportunities dependsgreatly on the management’s assumption or beliefs. In this case, Ben & Jerry consumerswere afraid that Unilever’s management orientation would be different from the originalowners views—either ethnocentric, polycentric, or regiocentric.Case1-2: McDonald’s Expands Globally While Adjusting Its Local RecipeOverview:Today, McDonald’s golden arches are one of the most recognized symbols in theworld, just behind the Olympic rings. While growth within the U.S. has slowed, the pictureoutside the U.S. has appeared brighter, until recently. However, globally, taste profiles andconsumer desires are changing. McDonald’s has responded to these changes by altering theirbasic products (when necessary) to fit the requirements of the local markets. While not alwayssuccessful, it has proven to be a winning strategy.1-18. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular,how does McDonald’s approach the issue of standardization?Does McDonald’s think global andact local? Does it also think local and act global?The popularity of American-style hamburgers, fries, and soft drinks is growing aroundthe world, supporting Levitt’s view of the global village. Also, the restaurants themselvesoffer the consumers a chance to experience for themselves a fast food legend. However,students should point out that, in many locations, menu items are adapted according tothe customs and tastes of individual countries. McDonald’s offers an ideal example of“global localization.”With McDonald’s offering of local tastes and a combination of American fare,McDonald’s thinks globally (product adaption) and acts globally (standardization).1-19.Do you think government officials in developing countries such as Russia, China, andIndia welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why orwhy not?

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19Despite concerns by governments and citizens in some countries about “culturalimperialism,” McDonald’s and other franchises with well-known brand names aregenerally welcome. Such businesses provide both much-needed jobs and employeetraining.McDonald’s does a good job of earning the support of local authorities and the localpopulation by working with agricultural producers to develop local supply sources forbeef, potatoes, and dairy products. Finally, thanks to changing lifestyles around the globe,more people are embracing the whole concept of fast food.1-20.The “Plan to Win” initiative is built around five factors that drive McDonald’s business:people, products, place, price, and promotion. As a student of marketing what can you say aboutthese factors?These five factors closely mirror the four P’s of marketing: product, price, promotion,and place. For a service marketer: people and physical evidence are also added to themix. For McDonald’s people and physical evidence are also important P’s of marketing.1-21. Is it realistic to expect that McDonald’s–or any well-known company–can expandglobally without occasionally making mistakes or generating controversy? Why do anti-globalization protesters around the world frequently target McDonald’s?McDonald’s has a reputation for being sensitive to local issues and mentalities.According to the staff director for international human resources in Central Europe, “Oneof our guiding principles is that our restaurants should always be a reflection of thecommunities they serve.” Mistakes such as the one in France represent exceptions thatcan serve as learning experiences. Still, each new nation has the potential to presentunique problems. In Israel, for example, McDonald’s must deal diplomatically andappropriately with dietary laws pertaining to kosher foods and operating restaurants onthe Sabbath (Friday and Saturday).Another issue is to maintain the service attitude that was a cornerstone of McDonald’sU.S. reputation. A German student noted that in Germany, good service is not associatedwith McDonald’s because counter-help consists of immigrants who do not exhibit thecheerful demeanor of their U.S. counterparts.CASE 1-3: Apple versus Samsung: The Battle for Smartphone Supremacy Heats UpOverview: Apple’s reputation was based on its proven ability to disrupt existing markets andcreate new markets with technical and design innovations. In some circles the launch of theiPhone 5 was viewed as an evolution, rather than a revolution. Samsung makes several versionsof their Galaxy S 4 to suit the needs of different markets, Apple does not. In India, the numberthree smart-phone market, Apple lags far behind Samsung, offering an Android phone for about$ 100. Indian consumers pay $ 500 for an iPhone 4 and about $ 850 for the iPhone 5.

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201-22. Do you own a smartphone? If so, which brand did you buy, and why?Student answers will vary based on which phone they own.1-23. Should Apple introduce a lower-cost iPhone to attract consumers who are not willing orable to pay a premium for an Apple device?If Apple wants to stay in the smart-phone market, they will need to introduce a lower-costoption. Samsung’s success has proved that in the emerging country markets, this isnecessary to compete.1-24. Do you think Apple can continue to grow by developing break-through products that createnew markets, as it did with the iPod, iPhone, and iPad?Apple needs to embrace the concept of formal market research. Steve Jobs downplayedthe importance of this concept saying that consumers don’t know what they want.Samsung Electronics on the other hand, relies heavily on market research. 60,000 staffmembers work in dozens of research centers in China, Great Britain, India, Japan, theUnited States, and elsewhere. Samsung designers have backgrounds in such diversedisciplines as psychology, sociology, and engineering.1-25. How has Samsung’s global marketing strategy enabled it to compete so effectively againstApple?In many developing countries, there is a strong demand for inexpensive mobile phones.Some Android-based models from Android models from Samsung sell for much less thanthe iPhone 5. Apple does not offer a lower-cost version of the iPhone. Samsung hasdone their research and found the unsatisfied needs of the consumers.TEACHING TOOLS AND EXERCISESAdditional Cases:"GENICON: A Surgical Strike into Emerging Markets" byAllen H. Kupetz; Adam P. Tindall;Gary Haberland. June 2010,HBS: 910M41-PDF-ENG."Market Stretch"by Gavin Price and Margaret Sutherland. June 2009.HBS: 909M46-PDF-ENG.“Global Brand Face-Off”,HBR Case Study and CommentaryRO 306A.Anand P. Raman, PeterM. Thompson, Jennifer L. Aaker; Harish Manwani; Simon Clift; Masaaki Mike Kotabe.

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21“Mary Kay Inc: Asian Market Entry (B)”, John A. Quelch.HBS509067.Video:This article is from Management International Review, March 2011. It is titled “EffectiveGlobal Strategy Implementation: Structural and Process Choices Facilitating Global Integrationand Coordination.”The abstract states that this article offers “a contingency framework of global strategyimplementation effectiveness on firm performance. The research question we seek to address iswhat the structural and process requirements are for MNEs to successfully implement globalstrategy through increased efficiency and effectiveness of integration and coordination acrossworld markets. Our central premise is that MNEs' capabilities in establishing supportingstructural and process mechanisms will enhance the effectiveness and efficiency ofimplementing their global strategies which would, in turn, lead to better firm performance.”Link:http://www.freepatentsonline.com/article/Management-International-Review/256930786.htmland here is a different link to the PDF of this document:http://www.springerlink.com/content/12181r4440117312/This next video is just a quick two-minute video showing Pepsi’s marketing throughout theworld, and how they differentiate packaging and advertising to adapt to the region in which theyare marketing. It provides a good example to show how companies cater their products todifferent regions.Link:http://www.youtube.com/watch?v=9q6onCYu0DAFilm: Assign “The Gods Must Be Crazy.” This classic, humor-filled movie examines the life ofa bushman unaware of white culture who finds a Coca-Cola bottle in the Kalahari (dropped by apassing pilot) and promptly has his life turned around by this mystical object. It shows how oursimplest acts can have far-reaching impacts. This is a great introduction to global awareness.Out-of-Class Reading:Zou, Shaoming and S. Tamer Cavusgil, “The GMS: A BroadConceptualization of Global Marketing Strategy and Its Effect on Performance.”Journal ofMarketing66 (October 2002) pp. 40-56.Internet Exercise:Fortunemagazine profiled the world’s richest man(http://money.cnn.com/2007/08/03/news/international/carlosslim.fortune/). Have students readand summarize this piece and use this as the basis for an in-class discussion on the changing faceof world business.Full Semester Research Assignment and ActivityThis is a full semester cultural and marketing plan project designed for individuals or groups.Students should choose a country and a product / service that isnot currently foundin thetargeted country and devise a cultural analysis and marketing plan for the chosen country.

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22For example, students can choose to market an automobile from the United States into a foreigncountry or can choose to market an automobile into the United States that is not currentlyavailable here.At the Instructors discretion, this project can be spread over the entire semester or used as a “takehome” final exam, collected in sections as the material is covered in class or any combinationdeemed.Foreign students are especially encouraged to find products / services that they’ve beenaccustomed to or enjoyed (a favorite type of food product) here in the United States and wish to“export” to their home country.Cultural Analysis: The data suggested in the cultural analysis includes information that helps themarketer make market-planning decisions. However, its application extends beyond product andmarket analysis to being an important source of information for someone interested inunderstanding business customs and other important cultural features of the country. Thiscultural analysis is composed of two parts: information on the cultural makeup of the countryand the economic analysis of the country.The information in this analysis must be more than a collection of facts. In preparing thismaterial, you should attempt to interpret the meaning of cultural information. With that said,your country analysis should contain at least one paragraph on each of the following areas:Per the instructor’s discretion, this section could be collected either before or after Part 2 of thetext has been discussed in class (Part 2 is chapters 2, 3, 4, and 5).PART I: Introduction to the Culture of the CountryI.Include short profiles of the company, the product to be exported and the country withwhich you wish to trade.II.Brief discussion of the country’s relevant historyIII.Geographical settinga)locationb)climatec)topographyIV.Social institutionsa)Familyi)The nuclear familyii)The extended familyiii)Dynamics of the family(1)Parental roles(2)Marriage and courtship

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23b)Educationi)The role of education in society(1)Primary education (quality, levels of development, etc)(2)Secondary education (quality, levels of development, etc.)(3)Higher education (quality, levels of development, etc.)ii)Literacy ratesc)Political Systemi)Political structureii)Political Partiesiii)Stability of governmentiv)Special taxesv)Role of local governmentd)Legal Systemi)Organization of the judiciary systemii)Code, common, socialist, or Islamic-law country?iii)Participation in patents, trademarks and other conventionse)Organizationsi)Group behaviorii)Social classesiii)Clubs, other organizationsiv)Race, ethnicity and subculturesf)Business customs and practicesV.Religion and aestheticsa)Religion and other belief systemsi)Orthodox doctrines and structuresii)Relationship with the peopleiii)Which religions are prominent?iv)Membership of each religionv)Any powerful or influential cults?b)Aestheticsi)Visual arts (fine arts, plastics, graphics, public arts, colors etc.)ii)Musiciii)Drama, ballet, and other performing artsiv)Folklore and relevant symbolsVI.Living conditionsa)Diet and nutritioni)Meat and vegetable consumption ratesii)Typical meals

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24iii)Malnutrition ratesiv)Foods availableb)Housingi)Types of housing availableii)Do most people own or rent?iii)Do most people live in one-family dwellings or with other families?c)Clothingi)National dressii)Types of clothing worn at workd)Recreation, sports, and other leisure activitiesi)Types available and in demandii)Percentage of income spent on such activitiese)Social securityf)Health CareVII.Languagea)Official language(s)b)Spoken versus written language(s)c)DialectsVIII.Executive SummaryAfter completing all of the other sections, prepare atwo-page(maximum length) summary of themajor points and place it at the front of the report. The purpose of an executive summary is togive the reader a brief glance at the critical points of your report. Those aspects of the culture areader should know to do business in the country but would not be expected to know or wouldfind different based on his or her home country should be included in this summary.IX.Sources of informationX.AppendixesPer the discretion of the instructor, this part could be collected after Part 3 of the textbook hasbeen covered in the class. (Part 3 of the text includes chapter 6, 7, 8, and 9).PART II: The Economic Analysis of the CountryThe reader may find the data collected for the economics analysis guideline are morestraightforward than for the cultural analysis guideline. There are two broad categories ofinformation in this guideline: general economic data that serve as a basis for an evaluation of theeconomic soundness of a country and information on channels of distribution and mediaavailability. As mentioned earlier, the guideline focuses only on broad categories of data and

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25must be adapted to the particular company and its product needs. With that said, write at leastone (1) paragraph for each of these sections.GuidelineI.IntroductionII.Populationa)Totali)Growth ratesii)Number of live birthsiii)Birth ratesb)Distribution of populationi)Ageii)Sexiii)Geographic areas (urban suburban, and rural density and concentration)iv)Migration rates and patternsv)Ethnic groupsIII.Economic statistics and activityc)Gross national product (GNP or GDP)1.Total2.Rate of growth (Real GNP or GDP)a.Personal income per capitab.Average family incomed)Distribution of wealthi)Income classesii)Proportion of the population in each classiii)Is the distribution distorted?e)Minerals and resourcesf)Surface transportationi)Modeii)Availabilityiii)Usage ratesiv)Ports.g)Communication systemsi)Typesii)Availabilityiii)Usage ratesh)Working conditionsi)Employer-Employee relationsii)Employee participationiii)Salaries and benefitsi)Principal industriesi)What proportion of the GNP does each industry contribute?ii)Ratio of private to publicly owned industries

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26j)Foreign Investmenti)Opportunities?ii)Which industries?k)International trade statisticsi)Major exports(1)Dollar value(2)Trendsii)Major imports(1)Dollar value(2)Trendsiii)Balance-of-payments situation(1)Surplus or deficit?(2)Recent trendsiv)Exchange rates(1)Single or multiple exchange rates?(2)Current rate of exchange(3)Trendsl)Trade restrictionsi)Embargoesii)Quotasiii)Import taxesiv)Tariffsv)Licensingvi)Customs dutiesm)Extent of economic activity not included in cash income activitiesi)Counter trades(1)Products generally offered for counter trading(2)Types of counter trades requested (i.e. barter, counter purchase, etc.)(3)Foreign aid receivedn)Labor forcei)Sizeii)Unemployment rateso)Inflation ratesIV.Developments in science and technologya)Current technology available (computers, machinery, tools etc.)b)Percentage of GNP invested in research and developmentc)Technological skills of the labor force and general populationV.Channels of distribution (macro analysis)This section reports data on all channel middlemen available within the market. Select a specificchannel as part of your distribution strategy for your marketing plana)Retailersi)Number of retailers

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27ii)Typical size of retail outletsiii)Customary markup for various classes of goodsiv)Methods of operation (cash/credit)v)Scale of operation (large/small)vi)Role of chain stores, department stores specialty shopsb)Wholesale middlemeni)number and sizeii)Customary markup for various classes of goodsiii)Method of operation (cash/credit)c)Import/Export agentsd)Warehousinge)Penetration of urban and rural marketsVI.MediaThis section reports data on all media available within the country or market. Select specificmedia as part of the promotional mix and strategy for your marketing plan.a)Availability of mediab)Costsi)Televisionii)Radioiii)Printiv)Other media (cinema, outdoor etc.)c)Agency assistanced)Coverage of various mediae)Percentage of population reached by each of the mediaVII.Executive summaryAfter completing the research for this report, prepare a two-page (maximum) summary ofthe major economic points and place it at the front of the reportVIII.Sources of informationIX.AppendixesPer the instructor’s discretion, this section can be used as a final exam, a take home writingassignment or group work. It can / could be used in conjunction with Part 4 of the textbook,which are chapters 10, 11, 12, 13, 14, and 15).THE MARKETING PLANMarket-oriented firms build strategic market plans around company objectives, markets and thecompetitive environment. Planning for marketing can be complicated even for one country, butwhen a company is doing business internationally, the problems are multiplied. Companyobjectives may vary from market to market and from time to time; the structure of internationalmarkets also changes periodically and from country to country; and the competitive,

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28governmental, and economic parameters affecting market planning are in a constant state of flux.These variations require international marketing executives to be specially flexible and creativein their approach to strategic marketing planning.PART III: Market Audit and Competitive Market AnalysisOf the guidelines presented, this is the most product or brand specific. Information in the otherguidelines is general in nature, focusing on product categories, whereas data in this guideline arebrand specific and are used to determine competitive market conditions and market potential.Two different components of the planning process are reflected in this guideline. Information inParts I and II, Cultural Analysis and Economic Analysis, serve as the basis for an evaluation ofthe product or brand in a specific country market.Information in this guideline provides an estimate of market potential and an evaluation of thestrengths and weaknesses of competitive marketing efforts. The data generated in this step areused to determine the extent of adaptation of the company’s marketing mix necessary forsuccessful market entry and to develop the final step, the action plan.The detailed information needed to complete this guideline is not necessarily available withoutconducting a thorough marketing research investigation. Thus another purpose of this part of thecountry notebook is to identify the correct questions to ask in a formal market study.Write at least one (1) paragraph on each in each of these areas.I.IntroductionII.The ProductA.Evaluate the product as an innovation as it is perceive by the intended market.1.Relative advantage2.Compatibility3.Complexity4.Trialability5.ObservabilityBMajor problems and resistance to product acceptance based on the precedingevaluationIII.The MarketA.Describe the market(s) in which the product is to be sold1.Geographical region(s)2.Forms of transportation and communication available in that (those)region(s)3.Consumer buying habitsa.Product-use patternsb.Product feature preferences

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29c.Shopping habits4.Distribution of the producta.typical retail outletsb.Product sales by other middlemen5.Advertising and promotiona.Advertising media usually used to reach your target market(s)b.Sales promotions customarily used (sampling, coupons, etc.)6.Pricing strategya.Customary markupb.Types of discounts availableB.Compare and contrast your product and the competition’s product(s).1.Competitor’s product(s)a.Brand nameb.Featuresc.Package2.Competitor’s prices3.Competitor’s promotion and advertising methods4.Competitor’s distribution channelsC.Market size1.Estimated industry sales for the planning year2.Estimated sales for your company for the planning YearD.Government participation in the marketplace1.Agencies that can help you.2.Regulations you must followIV.Executive SummaryBased on your analysis of the market, briefly summarize (two-page maximum) the majorproblems and opportunities requiring attention in your marketing mix, and place the summary atthe front of the reportV.Sources of informationVI.AppendixesSUGGESTED READINGSBooksArnold, David.The Mirage of Global Markets. Upper Saddle River, NJ: Pearson Education,2004.Barnet, Richard J., and John Cavanaugh.Global Dreams: Imperial Corporations and the NewWorld Order.New York: Simon & Schuster, 1994.

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30Bartlett, Christopher A., Sumantra Ghoshal, and Paul W. Beamish.Transnational Management,5thedition.New York: McGraw-Hill/Irwin, 2006.Bryan, Lowell.Race for the World: Strategies to Build a Great Global Firm.Boston: HarvardBusiness School Press, 1999.Doremus, Paul.The Myth of the Global Corporation. Princeton, NJ: Princeton University Press,1998.Friedman, Thomas L.The World Is Flat 3.0: A Brief History of the Twenty-First Century, NewYork, Picador 2005.Friedman, Thomas L.The Lexus and the Olive Tree.New York: Anchor Books, 2000.Garten, Jeffrey.World View: Global Strategies for the New Economy. Cambridge, MA: HarvardUniversity Press, 2000.Greider, William.One World, Ready or Not: The Manic Logic of Global Capitalism.New York:Simon & Schuster, 1997.Johnson, Chalmers.Japan, Who Governs? The Rise of the Developmental State.New York: W.W. Norton, 1995.Kets de Vries, Manfred F.R., and Elizabeth Florent-Treacy.The New Global Leaders: RichardBranson, Percy Barnevik, David Simon and the Remaking of International Business.SanFrancisco: Jossey-Bass, 1999.Kynge, James.China Shakes the World.New York: Houghton Mifflin, 2006.McGregor, James.One Billion Customers: Lessons from the Front Lines of Doing Business withChina.New York: Free Press, 2005.Micklethwait, John, and Adrian Wooldridge.A Future Perfect: The Challenge and HiddenPromise of Globalization.New York: Crown Publishers, 2000.Ohmae, Kenichi.The End of the Nation State: The Rise of Regional Economies.New York: FreePress, 1995.Watson, James L., ed.Golden Arches East: McDonald's in East Asia. Stanford, CA: StanfordUniversity Press, 1997.Wendt, Henry.Global Embrace: Corporate Challenges in a Transnational World.New York:HarperBusiness, 1993.

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