Global Marketing

by Keegan, Warren J.; Green, Mark

• ISBN13: 9780131469198
• ISBN10: 0131469193
• Edition: 4th
• Format: Paperback
• Copyright: 2008-01-01
• Publisher: Prentice Hall

Summary

WHAT MAKES THIS BOOK UNIQUE? Warren Keegan and Mark Green approached the fourth edition of Global Marketing with this goal: To write a book that reflects current issues and events, features conceptual and analytical tools that will help the reader apply the 4Ps to global marketing, and is authoritative in content yet relaxed and assured in style and tone.

Table of Contents

Preface	xv
PART I INTRODUCTION	1	(44)
Introduction to Global Marketing	1	(44)
Overview of Marketing	3	(5)
Competitive Advantage, Globalization, and Global Industries	4	(4)
Global Marketing: What It Is and What It Isn't	8	(5)
The Importance of Global Marketing	13	(2)
Management Orientations	15	(6)
Ethnocentric Orientation	16	(2)
Polycentric Orientation	18	(1)
Regiocentric and Geocentric Orientations	19	(2)
Forces Affecting Global Integration and Global Marketing	21	(7)
Driving Forces	21	(6)
Restraining Forces	27	(1)
Outline of This Book	28	(17)
PART II THE GLOBAL MARKETING ENVIRONMENT	45	(144)
Global Economic Environment	45	(36)
The World Economy---An Overview	46	(3)
Economic Systems	49	(4)
Market Capitalism	49	(1)
Centrally Planned Socialism	49	(1)
Centrally Planned Capitalism and Market Socialism	50	(3)
Stages of Market Development	53	(13)
Low-Income Countries	55	(2)
Lower-Middle-Income Countries	57	(1)
Upper-Middle-Income Countries	57	(2)
Marketing Opportunities in LDCs and Developing Countries	59	(2)
High-Income Countries	61	(2)
The Triad	63	(2)
Marketing Implications of the Stages of Development	65	(1)
Balance of Payments	66	(2)
World Trade in Merchandise and Services	68	(1)
Overview of International Finance	69	(12)
Managed Dirty Float	70	(1)
Foreign Exchange Market Dynamics	71	(1)
Purchasing Power Parity	71	(1)
Economic Exposure	72	(1)
Managing Exchange Rate Exposure	73	(8)
The Global Trade Environment: Regional Market Characteristics and Preferential Trade Agreements	81	(36)
The World Trade Organization and GATT	82	(1)
Preferential Trade Agreements	83	(4)
Free Trade Area	83	(1)
Customs Union	84	(1)
Common Market	85	(1)
Economic Union	85	(2)
North America	87	(2)
Latin America: SICA, Andean Community, Mercosur, CARICOM	89	(9)
Central American Integration System	89	(1)
Andean Community	90	(2)
Common Market of the South (Mercosur)	92	(2)
Caribbean Community and Common Market (CARICOM)	94	(1)
Current Trade-Related Issues	95	(1)
ASIA-PACIFIC: The Association of Southeast Asian Nations (ASEAN)	96	(1)
Marketing Issues in the Asia-Pacific Region	97	(1)
Western, Central, and Easter Europe	98	(6)
The European Union (EU)	98	(2)
The European Free Trade Area (EFTA) and European Economic Area (EEA)	100	(1)
Marketing Issues in the European Union	101	(2)
The Lome Convention and the Cotonou Agreement	103	(1)
Central European Free Trade Association (CEFTA)	103	(1)
The Middle East	104	(2)
Cooperation Council for the Arab States of the Gulf	104	(2)
Marketing Issues in the Middle East	106	(1)
Africa	106	(11)
Economic Community of West African States (ECOWAS)	106	(1)
East African Cooperation	107	(1)
Southern African Development Community (SADC)	108	(9)
Social and Cultural Environments	117	(34)
Society, Culture, and Global Consumer Culture	119	(13)
Attitudes, Beliefs, and Values	120	(1)
Religion	120	(1)
Aesthetics	121	(3)
Dietary Preferences	124	(2)
Language and Communication	126	(3)
Marketing's Impact on Culture	129	(3)
High- and Low-Context Cultures	132	(1)
Hofstede's Cultural Typology	133	(5)
The Self-Reference Criterion and Perception	138	(1)
Diffusion Theory	139	(4)
The Adoption Process	140	(1)
Characteristics of Innovations	140	(1)
Adopter Categories	141	(1)
Diffusion of Innovations in Pacific Rim Countries	142	(1)
Marketing Implications of Social and Cultural Environments	143	(8)
The Political, Legal, and Regulatory Environments of Global Marketing	151	(38)
The Political Environment	152	(9)
Nation States and Sovereignty	153	(1)
Political Risk	154	(3)
Taxes	157	(3)
Seizure of Assets	160	(1)
The Legal Environment	161	(19)
Common Law Versus Civil Law	162	(2)
Sidestepping Legal Problems: Important Business Issues	164	(12)
Conflict Resolution, Dispute Settlement, and Litigation	176	(4)
The Regulatory Environment	180	(9)
Regional Economic Organizations: The European Union Example	180	(9)
PART III APPROACHING GLOBAL MARKETS	189	(139)
Global Information Systems and Market Research	189	(36)
Information Technology for Global Marketing	190	(5)
Information Subject Agenda and Environmental Scanning Modes	195	(2)
Sources of Market Information	197	(2)
Formal Market Research	199	(26)
Step 1: Identify the Information Requirement	200	(1)
Step 2: Problem Definition---Overcoming the SRC	201	(2)
Step 3: Choose Unit of Analysis	203	(1)
Step 4: Examine Data Availability	203	(2)
Step 5: Assess Value of Research	205	(1)
Step 6: Research Design	205	(9)
Step 7: Analyzing Data	214	(4)
Step 8: Presenting the Findings	218	(1)
Headquarters Control of Marketing Research	219	(1)
An Integrated Approach to Information Collection	220	(5)
Segmentation, Targeting, and Positioning	225	(37)
Global Market Segmentation	226	(16)
Demographic Segmentation	228	(7)
Psychographic Segmentation	235	(2)
Behavior Segmentation	237	(3)
Benefit Segmentation	240	(1)
Ethnic Segmentation	241	(1)
Assessing Market Potential and Choosing Target Markets or Segments	242	(5)
Current Segment Size and Growth Potential	242	(1)
Potential Competition	243	(1)
Feasibility and Compatibility	244	(1)
A Framework for Selecting Target Markets	245	(2)
Product-Market Decisions	247	(1)
Target Market Strategy Options	248	(2)
Standardized Global Marketing	248	(1)
Concentrated Global Marketing	249	(1)
Differentiated Global Marketing	250	(1)
Positioning	250	(12)
Attribute or Benefit	251	(1)
Quality and Price	251	(1)
Use or User	252	(1)
Competitor	253	(1)
Global, Foreign, and Local Consumer Culture Positioning	254	(8)
Importing, Exporting, and Sourcing	262	(31)
Organizational Export Activities	264	(1)
National Policies Governing Exports and Imports	265	(6)
Government Programs that Support Exports	266	(1)
Governmental Actions to Discourage Imports and Block Market Access	267	(4)
Tariff Systems	271	(4)
Customs Duties	274	(1)
Other Duties and Import Charges	275	(1)
Key Export Participants	275	(2)
Organizing for Exporting in the Manufacturer's Country	277	(1)
Organizing for Exporting in the Market Country	278	(1)
Export Financing and Methods of Payment	279	(3)
Documentary Credit	279	(1)
Documentary Collections (Sight or Time Drafts)	280	(1)
Cash in Advance	281	(1)
Sales on Open Account	282	(1)
Sales on a Consignment Basis	282	(1)
Sourcing	282	(11)
Management Vision	283	(1)
Factor Costs and Conditions	284	(1)
Customer Needs	285	(1)
Logistics	285	(1)
Country Infrastructure	285	(1)
Political Factors	286	(1)
Foreign Exchange Rates	286	(7)
Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances	293	(35)
Licensing	295	(3)
Special Licensing Arrangements	297	(1)
Investment	298	(8)
Joint Ventures	299	(4)
Investment via Ownership or Equity Stake	303	(3)
Global Strategic Partnerships	306	(3)
The Nature of Global Strategic Partnerships	309	(7)
Success Factors	311	(1)
Alliances with Asian Competitors	312	(1)
CFM International, GE, and Snecma: A Success Story	313	(1)
AT&T and Olivetti: A Failure	313	(1)
Boeing and Japan: A Controversy	314	(1)
International Partnerships in Developing Countries	315	(1)
Cooperative Strategies in Japan: Keiretsu	316	(3)
How Keiretsu Affect American Business: Two Examples	319	(1)
Cooperative Strategies in South Korea: Chaebol	319	(1)
Twenty-First Century Cooperative Strategies: Targeting the Digital Future	320	(1)
Beyond Strategic Alliances	320	(1)
Market Expansion Strategies	321	(7)
PART IV THE GLOBAL MARKETING MIX	328	(174)
Product and Brand Decisions	328	(36)
Basic Product and Brand Concepts	329	(12)
Product Types	330	(1)
Brands	330	(2)
Local Products and Brands	332	(1)
International Products and Brands	333	(1)
Global Products and Brands	333	(2)
Global Brand Development	335	(4)
Local Versus Global Products and Brands: A Needs-Based Approach	339	(2)
``Country of Origin'' as Brand Element	341	(3)
Packaging	344	(2)
Labeling	344	(1)
Aesthetics	345	(1)
Product Warranties	346	(1)
Extend, Adapt, Create: Strategic Alternatives in Global Marketing	346	(8)
Strategy 1: Product-Communication Extension	348	(1)
Strategy 2: Product Extension-Communication Adaptation	349	(1)
Strategy 3: Product Adaptation-Communication Adaptation	350	(1)
Strategy 4: Product-Communication Adaptation	351	(1)
Strategy 5: Product Invention	351	(2)
How to Choose a Strategy	353	(1)
New Products in Global Marketing	354	(10)
Identifying New-Product Ideas	355	(1)
New-Product Development	356	(1)
The International New-Product Department	357	(1)
Testing New Products	358	(6)
Pricing Decisions	364	(37)
Basic Pricing Concepts	365	(1)
Global Pricing Objectives and Strategies	366	(7)
Market Skimming and Financial Objectives	366	(1)
Penetration Pricing and Nonfinancial Objectives	367	(1)
Companion Products: ``Razors and Blades'' Pricing	368	(1)
Target Costing	369	(1)
Calculating Prices: Cost-Based Pricing and Price Escalation	369	(2)
Terms of the Sale	371	(2)
Environmental Influences on Pricing Decisions	373	(7)
Currency Fluctuations	373	(3)
Inflationary Environment	376	(2)
Government Controls, Subsidies, and Regulations	378	(1)
Competitive Behavior	379	(1)
Using Sourcing as a Strategic Pricing Tool	380	(1)
Global Pricing: Three Policy Alternatives	380	(3)
Extension or Ethnocentric	380	(1)
Adaptation or Polycentric	381	(1)
Geocentric	381	(2)
Gray Market Goods	383	(2)
Dumping	385	(2)
Price Fixing	387	(1)
Transfer Pricing	388	(2)
Tax Regulations and Transfer Prices	389	(1)
Sales of Tangible and Intangible Property	389	(1)
Competitive Pricing	389	(1)
Importance of Section 482 Regulations	389	(1)
Countertrade	390	(11)
Barter	391	(1)
Counterpurchase	392	(1)
Offset	392	(1)
Compensation Trading	393	(1)
Switch Trading	393	(8)
Global Marketing Channels and Physical Distribution	401	(34)
Channel Objectives	402	(1)
Distribution Channels: Terminology and Structure	403	(7)
Consumer Products and Services	403	(4)
Industrial Products	407	(3)
Establishing Channels and Working with Channel Intermediaries	410	(3)
Global Retailing	413	(8)
Innovation in Global Retailing	421	(2)
Physical Distribution, Supply Chains, and Logistics Management	423	(12)
Order Processing	424	(1)
Warehousing	424	(1)
Inventory Management	424	(1)
Transportation	425	(4)
Logistics Management: A Brief Case Study	429	(6)
Global Marketing Communications Decisions I: Advertising and Public Relations	435	(36)
Global Advertising	437	(6)
Global Advertising Content: The ``Standardization'' Versus ``Adaptation'' Debate	439	(4)
Advertising Agencies: Organizations and Brands	443	(4)
Selecting an Advertising Agency	446	(1)
Creating Global Advertising	447	(9)
Art Directors and Art Direction	450	(1)
Copy	450	(2)
Cultural Considerations	452	(4)
Global Media Decisions	456	(3)
Media Vehicles and Expenditures	457	(2)
Media Decisions	459	(1)
Public Relations and Publicity	459	(12)
The Growing Role of Public Relations in Global Marketing Communications	462	(1)
How Public Relations Practices Differ Around the World	463	(8)
Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, Special Forms of Marketing Communication	471	(31)
Sales Promotion	472	(7)
Sampling	474	(2)
Couponing	476	(1)
Sales Promotions: Issues and Problems	477	(2)
Personal Selling	479	(9)
The Strategic/Consultative Selling Model	481	(4)
Sales Force Nationality	485	(3)
Special Forms of Marketing Communications: Direct Marketing, Event Sponsorship, and Product Placement	488	(14)
Direct Mail	490	(2)
Catalogs	492	(1)
Infomercials and Teleshopping	493	(2)
Sponsorship	495	(1)
Product Placement in Motion Pictures, Television Shows, and Other Performances	496	(6)
PART V STRATEGY AND LEADERSHIP IN THE TWENTY-FIRST CENTURY	502	(86)
Strategic Elements of Competitive Advantage	502	(28)
Industry Analysis: Forces Influencing Competition	503	(4)
Threat of New Entrants	503	(2)
Threat of Substitute Products	505	(1)
Bargaining Power of Buyers	505	(1)
Bargaining Power of Suppliers	506	(1)
Rivalry Among Competitors	507	(1)
Competitive Advantage	507	(9)
Generic Strategies for Creating Competitive Advantage	508	(4)
The Flagship Firm: The Business Network with Five Partners	512	(1)
Creating Competitive Advantage via Strategic Intent	513	(3)
Global Competition and National Competitive Advantage	516	(6)
Demand Conditions	519	(1)
Related and Supporting Industries	520	(1)
Firm Strategy, Structure, and Rivalry	521	(1)
Chance	522	(1)
Government	522	(1)
Current Issues in Competitive Advantage	522	(8)
Leading, Organizing, and Controlling the Global Marketing Effort	530	(31)
Leadership	531	(4)
Top Management Nationality	533	(1)
Leadership and Core Competence	534	(1)
Organization	535	(10)
Patterns of International Organization Development	539	(6)
Lean Production: Organizing the Japanese Way	545	(3)
Global Marketing Management Control	548	(4)
Formal Control Methods	550	(2)
Informal Control Methods	552	(1)
The Global Marketing Audit	552	(9)
Setting Objectives and Scope of the Audit	553	(8)
The Digital Revolution and the Global Electronic Marketplace	561	(27)
The Digital Revolution: A Brief History	562	(2)
Convergence	564	(1)
Value Networks and Disruptive Technologies	565	(2)
Global E-Commerce	567	(4)
Web Site Design	571	(5)
New Products and Services	576	(3)
Broadband	576	(3)
Mobile Commerce and Wireless Connectivity	579	(3)
Smart Cell Phones	580	(1)
Internet Phone Service	581	(1)
Conclusion	582	(6)
Glossary	588	(16)
Credits	604	(2)
Author/Name Index	606	(6)
Subject/Organization Index	612

Excerpts

Global Marketing,Fourth Edition, builds on the worldwide success ofPrinciples of Global MarketingandGlobal Marketing,Second Edition and Third Edition. Those books took an environmental and strategic approach by outlining the major dimensions of the global business environment. The authors also provided a set of conceptual and analytical tools that would prepare students to successfully apply the 4Ps to global marketing. The authors have approached all four editions with the same goal: to write a book that is authoritative in content, yet relaxed and assured in style and tone. The following student comments suggest that we accomplished our goal: "the textbook is very clear and easy to understand"; "an excellent textbook with many real-life examples"; "the authors use simple language and clearly state the important points"; "this is the best textbook that I am using this term"; "the authors have done an excellent job of writing a text than can be read easily."Principles of Global Marketingwas the first textbook on the subject to be published in a full four-color format. In addition, when it appeared in fall 1996, the first edition invited students to "look ahead" to such developments as the ending of America's trade embargo with Vietnam, Europe's new currency, Daimler-Benz's Smart car project, and the controversy concerning Benetton's advertising. Those topics represented "big stories" in the global marketing arena and continue to receive press coverage on a regular basis. As was the case with the first three editions, we approachedGlobal Marketing,Fourth Edition, with today's students and instructors in mind. Guided by our experience using the text in undergraduate and graduate classrooms and in corporate training seminars, we have revised, updated, and expandedGlobal Marketing,Third Edition. We have benefited tremendously from adopter feedback and input; we also continue to draw on our direct experience in the Americas, Asia, Europe, Africa, and the Middle East. The result is a text that addresses the needs of students and instructors in every part of the world. The English-language edition ofGlobal Marketinghas been used in many countries, including Australia, Canada, China, Ireland, Japan, Malaysia, and Sri Lanka; the text is also available in Spanish, Portuguese, and Chinese editions. WHAT'S NEW The fourth edition includes new material on newsworthy and relevant topics such as the expanded European Union, China's growing importance as an export powerhouse and a giant consumer market, the impact of religion on global marketing activities, and the global music industry's ongoing efforts to combat music piracy. Current research findings have been incorporated into each of the chapters. For example, Shaoming Zou and S. Tamer Cavusgil's work on global marketing strategy (fromJournal of Marketing,October 2002) is an important addition to Chapter 1 "Introduction to Global Marketing." Similarly, our thinking about global market segmentation and targeting has been influenced by David Arnold's recent book,The Mirage of Global Markets.We have added scores of current examples of global marketing practices as well as quotations from global marketing practitioners and industry experts. New to the fourth edition is Chapter 17, "The Digital Revolution and Global Electronic Marketplace." Adopters of earlier editions will note that the chapter on strategy and competitive advantage has been moved to Part V; it now is Chapter 15. This change means that the global marketing mix chapters now appear earlier in the book. Throughout the text, organizational Web sites are referenced for further student study and exploration. A Companion Web site ( www.prenhall.com/keegan ) is integrated with the text as well. Each chapter contains several illustrations that bring global marketing to life. C