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

by JOHANSSON

• ISBN13: 9780072961805
• ISBN10: 0072961805
• Edition: 4th
• Format: Hardcover
• Copyright: 2005-04-07
• Publisher: McGraw-Hill/Irwin

Summary

Johansson's Global Marketing, 4/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. The discussion progresses from how to market an existing product outside of the domestic market to how to develop a new product for specific local markets and then broadens the scope to discuss marketing and management topics from a global managerial perspective. Legal, regulatory, political, and cultural, issues are discussed as appropriate throughout the text. Excellent examples and cases, many of which are drawn from the author's rich international experience, help students move from concept to application. Most International Marketing books have 6-7 separate chapters up front that discuss the legal and regulatory, political, and cultural environments before they begin to discuss global market entry. Johansson presumes that the students have a basic appreciation of these environments and begins the market entry discussion after 3 introductory chapters. The orientation of this text is more managerial and less descriptive. This text is used both as the first course in the undergraduate level and in MBA level courses.

Table of Contents

PART ONE FUNDAMENTALS	1	(96)
The Global Marketing Job	3	(28)
Going Global	5	(1)
A Historical Perspective	6	(5)
The Multinational Phase	6	(1)
The Global Phase	7	(1)
The Antiglobalization Phase	8	(2)
An Anti-American Phase?	10	(1)
Key Concepts	11	(6)
Global Marketing	11	(1)
International Marketing	11	(1)
``Foreign'' Marketing	11	(1)
Multidomestic Markets	12	(1)
Global and Regional Markets	13	(1)
Global Products	13	(2)
Global Brands	15	(1)
Leading Markets	15	(1)
The Product Life Cycle	16	(1)
Drivers toward Globalization	17	(4)
Market Drivers	17	(1)
Competitive Drivers	18	(1)
Cost Drivers	19	(1)
Technology Drivers	19	(1)
Government Drivers	20	(1)
Localized Global Marketing	21	(1)
The Limits to Global Marketing	21	(1)
Global Localization	21	(1)
Developing Knowledge Assets	22	(2)
New Products	23	(1)
Advertising	23	(1)
Distribution	24	(1)
Skill Benefits	24	(1)
Global Marketing Objectives	24	(1)
Three Hats	25	(2)
The Foreign Entry Role	25	(1)
The Local Marketing Role	26	(1)
The Global Management Role	27	(1)
A Guide to the Chapters	27	(1)
Summary	28	(3)
Theoretical Foundations	31	(30)
Introduction	33	(1)
Country-Specific Advantages (CSAs)	34	(6)
Comparative and Absolute Advantages	34	(1)
The International Product Cycle (IPC)	35	(1)
National Competitive Advantages	36	(2)
The New Trade Theory	38	(1)
Country-of-Origin Effects	38	(2)
Firm-Specific Advantages (FSAs)	40	(8)
Knowledge-Based FSAs	41	(1)
Marketing FSAs	42	(1)
Transferability of FSAs	43	(1)
FSAs and Internalization	44	(1)
FSAs and Transaction Costs	45	(2)
FSAs in the Value Chain	47	(1)
Extending Porter's ``Five Forces'' Model	48	(3)
Rivalry	48	(2)
New Entrants	50	(1)
Substitutes	51	(1)
Buyer Power	51	(1)
Supplier Power	51	(1)
Rivalry between Global Competitors	51	(4)
Competitive Strength	52	(1)
Competitive Repertoire	52	(1)
Global Rivalry	52	(2)
Hypercompetition	54	(1)
Strategy and The Three Hats	55	(1)
Summary	56	(5)
Cultural Foundations	61	(36)
Introduction	63	(2)
The Meaning of Culture	65	(1)
Cultures across Countries	65	(6)
High versus Low Context Cultures	65	(1)
``Silent Languages''	66	(1)
Avoid Self-Referencing	67	(1)
Hofstede's Cultural Dimensions	67	(1)
Gannon's Metaphors	68	(3)
Culture and ``How to Do Business''	71	(3)
Culture and Managerial Skills	72	(1)
Managerial Styles	72	(1)
Managing Subordinates	73	(1)
Culture and Negotiations	74	(4)
Know Whom You Are Dealing With	75	(1)
Know What They Hear	76	(1)
Know When to Say What	77	(1)
The Limits to Cultural Sensitivity	78	(1)
Nonadaptation	78	(1)
Keeping One's Center	79	(1)
Culture and The Three Hats	79	(3)
Foreign Entry	79	(1)
Local Marketing	80	(1)
Global Management	81	(1)
Summary	82	(3)
Case 1-1: IKEA's Global Strategy: Furnishing the World	85	(5)
Case 1-2: Globalization Headaches at Whirlpool	90	(7)
PART TWO FOREIGN ENTRY	97	(104)
Country Attractiveness	99	(26)
Introduction	101	(1)
Political Risk Research	102	(1)
Environmental Research	103	(3)
Physical Environment	104	(1)
Sociocultural Environment	104	(1)
Economic Environment	105	(1)
Regulatory Environment	105	(1)
Researching Competitors	106	(1)
Strengths and Weaknesses	106	(1)
Competitive Signaling	107	(1)
Entry Evaluation Procedure	107	(4)
Stage 1---Country Identification	107	(1)
Stage 2---Preliminary Screening	108	(1)
Stage 3---In-Depth Screening	109	(1)
Stage 4---Final Selection	110	(1)
Personal Experience	111	(1)
Country Data Sources	111	(3)
Forecasting Country Sales	114	(1)
A Basic Equation	114	(1)
Stage of the Product Life Cycle	115	(1)
Industry Sales	115	(4)
The Build-Up Method	115	(1)
Forecasting by Analogy	115	(1)
An Illustration: TV Penetration	116	(1)
Judgmental Forecasts	117	(1)
Time Series Extrapolation	118	(1)
Regression-Based Forecasts	118	(1)
Forecasting Market Share	119	(2)
Predicting Competition	119	(1)
Identifying Competitors	120	(1)
Domestic Competitors	120	(1)
Foreign Competitors	121	(1)
Summary	121	(4)
Export Expansion	125	(34)
Introduction	127	(1)
Four Modes of Entry	127	(2)
Exporting	127	(1)
Licensing	128	(1)
Strategic Alliances (SAs)	128	(1)
Wholly Owned Manufacturing Subsidiary	129	(1)
The Impact of Entry Barriers	129	(6)
Entry Barriers Defined	129	(2)
The Cost of Barriers	131	(1)
The Importer's View	131	(1)
Tariff and Nontariff Barriers	131	(1)
Government Regulations	132	(1)
Distribution Access	132	(2)
Natural Barriers	134	(1)
Advanced versus Developing Nations	134	(1)
Exit Barriers	134	(1)
Effect on Entry Mode	135	(1)
The Exporting Option	135	(14)
Indirect Exporting	136	(1)
Direct Exporting	137	(1)
The Exporting Job	137	(1)
Product Shipment	138	(1)
Export Pricing	139	(4)
Local Distribution	143	(1)
Payment	144	(2)
Legal Issues	146	(2)
After-Sales Support	148	(1)
Cultural Distance and Learning	149	(2)
The ``Cultural Distance'' Effect	149	(1)
The International Learning Curve	150	(1)
Internationalization Paths	151	(2)
The Internationalization Sequence	151	(1)
Born Globals	152	(1)
Export Expansion Strategy	153	(2)
Waterfall versus Sprinkler Strategies	153	(1)
A Comparison of Two Industries	154	(1)
Importers as Trade Initiators	155	(1)
Summary	155	(4)
Licensing, Strategic Alliances, FDI	159	(42)
Introduction	161	(1)
Licensing	161	(3)
Franchising	163	(1)
Original Equipment Manufacturing (OEM)	163	(1)
Strategic Alliances	164	(4)
The Rationale for Nonequity SAs	165	(1)
Distribution Alliances	166	(1)
Manufacturing Alliances	166	(1)
R&D Alliances	167	(1)
Joint Ventures	167	(1)
Manufacturing Subsidiaries	168	(4)
Outsourcing	170	(1)
Financial Analysis	170	(1)
Acquisitions	171	(1)
Entry Modes and Marketing Control	172	(2)
Optimal Entry Strategy	174	(5)
The Entry Mode Matrix	174	(1)
Optimal Modes	175	(1)
Real-World Cases	176	(3)
Summary	179	(2)
Case 2-1: Toys ``R'' Us Goes to Japan	181	(4)
Case 2-2: Illycaffe (A): Internationalization	185	(4)
Case 2-3: Illycaffe (B): The Starbucks Threat	189	(3)
Case 2-4: AOL: International Expansion	192	(9)
PART THREE LOCAL MARKETING	201	(152)
Understanding Local Customers	203	(32)
Introduction	205	(1)
Local Culture and Buyer Behavior	206	(3)
Marketing and Materialism	207	(1)
The Meaning of a Product	208	(1)
A Universal Trait in Local Form	209	(1)
Buyer Decision Making	209	(6)
Problem Recognition	210	(1)
Search	211	(1)
Evaluation of Alternatives	212	(1)
Choice	213	(1)
Outcomes	214	(1)
A ``No-Nationality'' Global Consumer?	214	(1)
Local Buyer Research	215	(9)
Problem Definition	215	(2)
Qualitative Research	217	(1)
Consumer Surveys	218	(1)
Trade Surveys	219	(1)
Observational Studies	219	(1)
Causal Research	220	(1)
Measurement and Scaling	220	(2)
Questionnaire Construction	222	(1)
Sampling	222	(1)
Fieldwork	223	(1)
Industrial Buyers	224	(5)
The Business Marketing Task	224	(1)
Cultural Conditioning	224	(1)
Organization Culture	225	(1)
Relationship Marketing	226	(2)
Culture and Networks	228	(1)
Three Local Marketing Environments	229	(2)
Market Environment	229	(1)
Marketing Tasks	229	(1)
Country Markets	230	(1)
Summary	231	(4)
Local Marketing in Mature Markets	235	(32)
Introduction	237	(1)
Local Marketing in Mature Markets	237	(5)
Market Segmentation	237	(1)
Product Positioning	237	(1)
Marketing Tactics	238	(3)
Customer Satisfaction	241	(1)
Close-Up: Pan-European Marketing	242	(9)
Market Environment	242	(1)
Foreign Trade Agreements	243	(1)
Competition	244	(1)
Market Segmentation	245	(1)
Product Positioning	246	(1)
Marketing Tactics	247	(4)
Close-Up: Marketing in Japan	251	(5)
Market Environment	251	(1)
Foreign Trade Agreements	251	(1)
Competition	252	(1)
Market Segmentation	252	(1)
Product Positioning	253	(1)
Marketing Tactics	253	(3)
Close-Up: Marketing in Australia and New Zealand	256	(3)
Market Environment	256	(1)
Foreign Trade Agreements	256	(1)
Competition	257	(1)
Market Segmentation	257	(1)
Product Positioning	258	(1)
Marketing Tactics	258	(1)
Close-Up: Marketing in North America	259	(5)
Market Environment	259	(2)
Foreign Trade Agreements	261	(1)
Competition	261	(1)
Market Segmentation	262	(1)
Product Positioning	262	(1)
Marketing Tactics	262	(2)
Summary	264	(3)
Local Marketing in New Growth Markets	267	(28)
Introduction	269	(4)
Two Kinds of Markets	269	(1)
The Role of Trade Blocs	270	(1)
Market Segmentation	271	(1)
Product Positioning	271	(1)
Marketing Tactics	272	(1)
Close-Up: Marketing in Latin America	273	(10)
Market Environment	273	(1)
Foreign Trade Agreements	274	(1)
Market Segmentation	275	(1)
Product Positioning	275	(1)
Marketing Tactics	276	(3)
Major Country Markets	279	(2)
Pan-Regional Marketing	281	(2)
Close-Up: Marketing in the New Asian Growth Markets	283	(8)
Market Environment	283	(2)
Foreign Trade Agreements	285	(1)
Market Segmentation	285	(1)
Product Positioning	286	(1)
Marketing Tactics	286	(3)
Major Country Markets	289	(1)
Pan-Regional Marketing	290	(1)
Summary	291	(4)
Local Marketing in Emerging Markets	295	(58)
Introduction	297	(1)
Local Marketing in Developing Countries	297	(3)
Market Segmentation	298	(1)
Product Positioning	299	(1)
Pricing	299	(1)
Distribution	300	(1)
Promotion	300	(1)
Close-Up: Marketing in Russia and the NDCs	300	(9)
Market Environment	301	(1)
Political and Legal Risks	302	(1)
Market Segmentation	303	(1)
Product Positioning	304	(1)
Marketing Tactics	305	(4)
Russia at the Crossroads	309	(1)
Close-Up: Marketing in China	309	(8)
Market Environment	310	(1)
Foreign Entry	310	(3)
Hong Kong's Role	313	(1)
Market Segmentation	314	(1)
Product Positioning	314	(1)
Marketing Tactics	314	(2)
Continuous Change	316	(1)
Close-Up: Marketing in India	317	(5)
Market Environment	317	(1)
Foreign Entry	318	(1)
Market Segmentation	319	(1)
Product Positioning	320	(1)
Marketing Tactics	320	(2)
Summary	322	(5)
Case 3-1: P&G's Pert Plus: A Pan-European Brand?	327	(5)
Case 3-2: Levi Strauss Japan K.K.: Selling Jeans in Japan	332	(9)
Case 3-3: Colgate-Palmolive: Cleopatra in Quebec?	341	(12)
PART FOUR GLOBAL MANAGEMENT	353	(274)
Global Segmentation and Positioning	355	(28)
Introduction	356	(1)
The Global Marketer's Mindset	357	(2)
Selling Orientation	357	(1)
Standardization	358	(1)
Coordination	358	(1)
Centralization	359	(1)
The New Global Mindset	359	(1)
Global Market Segmentation	359	(9)
Segmentation Criteria	360	(3)
Two-Stage Global Segmentation	363	(1)
Macrosegmentation	364	(3)
A Case Illustration	367	(1)
Targeting Segments	368	(3)
Competitive Analysis	368	(1)
Profitability Analysis	369	(1)
Diversification Versus Focus	370	(1)
Global Product Positioning	371	(6)
Key Positioning Issues	372	(2)
The Product Space	374	(1)
Strategic Implications	375	(1)
Overcoming Mispositioning	375	(1)
Changing the Product Space	375	(2)
Changing Customer Preferences	377	(1)
Global STP Strategies	377	(2)
Summary	379	(4)
Global Products	383	(32)
Introduction	385	(1)
The Pros and Cons of Standardization	385	(3)
The Advantages of Standardization	386	(1)
The Drawbacks of Standardization	387	(1)
Which Features to Standardize?	388	(1)
Localization Versus Adaptation	388	(2)
Basic Requirements	389	(1)
Compatibility Requirements	389	(1)
Multisystem Compatibility	389	(1)
Pitfalls of Global Standardization	390	(1)
Insufficient Market Research	390	(1)
Overstandardization	390	(1)
Poor Follow-Up	390	(1)
Narrow Vision	390	(1)
Rigid Implementation	391	(1)
Global Product Lines	391	(1)
Developing New Global Products	392	(6)
Idea Generation	393	(1)
Preliminary Screening	394	(1)
Concept Research	395	(2)
Sales Forecast	397	(1)
Test Marketing	397	(1)
Globalizing Successful New Products	398	(1)
New Product Success Factors	398	(1)
Speed of Diffusion	398	(1)
Global Brand Management	399	(6)
Brand Equity	400	(1)
Global Brands	401	(1)
The Brand Portfolio	402	(1)
Brand Globalization Potential	403	(1)
Implementation	404	(1)
Changeover Tactics	405	(1)
Defending Local Products	405	(1)
Counterfeit Products	406	(3)
Extent of Problem	407	(1)
Counterfeit Demand	408	(1)
Actions against Counterfeits	409	(1)
Summary	409	(6)
Global Services	415	(28)
Introduction	417	(1)
Services Versus Products	418	(4)
Characteristics of Services	418	(2)
A Product Equivalence	420	(2)
Service Globalization Potential	422	(2)
Stage of the Life Cycle	423	(1)
Infrastructure Barriers	423	(1)
Idiosyncratic Home Market	424	(1)
Foreign Entry of Services	424	(4)
Foreign Trade in Services	424	(1)
Service Entry Modes	425	(3)
Entry and Exit Barriers	428	(1)
Local Marketing of Global Services	428	(3)
Market Segmentation	428	(1)
Positioning	428	(1)
Product Line	429	(1)
Branding	429	(1)
Pricing	430	(1)
Promotion	431	(1)
Distribution	431	(1)
Controlling Local Service Quality	431	(4)
Critical Incidents in Global Services	432	(2)
Satisfaction and Service Quality	434	(1)
Close-Up: Two Globalized Services	435	(4)
Fast-Food Franchising	436	(2)
Professional Services	438	(1)
Summary	439	(4)
Global Pricing	443	(28)
Introduction	444	(1)
A Global Pricing Framework	445	(2)
Pricing Basics	447	(2)
The Role of Costs	447	(1)
Experience Curve Pricing	448	(1)
Competition	448	(1)
Demand	448	(1)
Financial Issues	449	(3)
Exchange Rates	449	(2)
Hedging	451	(1)
Government Intervention	452	(1)
Transfer Pricing	452	(3)
Definition	452	(1)
The Arm's Length Principle	453	(1)
Approaches to Transfer Pricing	454	(1)
Conflicting Objectives	454	(1)
Countertrade	455	(2)
Business Evaluation	457	(1)
Systems Pricing	457	(2)
Price and Positioning	459	(1)
Price-Quality Relationships	459	(1)
The PLC Impact	460	(1)
Global Coordination	460	(4)
Pricing Actions Against Gray Trade	462	(2)
Global Pricing Policies	464	(3)
Polycentric Pricing	464	(1)
Geocentric Pricing	465	(1)
Ethnocentric Pricing	466	(1)
Managerial Trade-Offs	466	(1)
Summary	467	(4)
Global Distribution	471	(28)
Introduction	472	(1)
Distribution as a Competitive Advantage	473	(1)
Rationalizing Local Channels	474	(1)
Changing Distributors	474	(1)
Dual Distribution	475	(1)
Wholesaling	475	(3)
Vertical Integration	476	(1)
Types of Wholesalers	477	(1)
Retailing	478	(6)
Retailing and Lifestyles	479	(1)
Creating New Channels	480	(2)
Global Retailing	482	(2)
Global Logistics	484	(4)
Competition and Technology	484	(1)
Air Express	485	(1)
Ocean Carriers	486	(1)
Overland Transportation	487	(1)
Warehousing	488	(1)
Parallel Distribution	488	(6)
Gray Trade	488	(2)
Effects of Gray Trade	490	(1)
Channel Actions against Gray Trade	491	(1)
Multiple Distribution Channels	492	(2)
Global Channel Design	494	(1)
The FSAs Revisited	494	(1)
Availability of Channels	494	(1)
Channel Tie-Up	495	(1)
Coordination and Control	495	(1)
Summary	495	(4)
Global Advertising	499	(30)
Promotion as a Competitive Advantage	501	(2)
The Global Advertising Job	503
The International World of Advertising	502	(5)
Advertising Volume	502	(2)
Media Spending	504	(1)
Global Media	504	(2)
Strategic Implications	506	(1)
What Does Global Advertising Involve?	507	(4)
Identical Ads	508	(1)
Prototype Advertising	508	(1)
Pattern Standardization	509	(1)
Globalization Examples	509	(2)
Pros and Cons of Global Advertising	511	(2)
Cost Advantages	511	(1)
Global Markets	511	(1)
Global Products and Brands	511	(2)
The Global Advertiser's Decisions	513	(4)
Strategic Objectives	514	(2)
Budgeting for Global Advertising	516	(1)
The Global Advertising Agency	517	(5)
Agency Globalization	517	(1)
The Agency's Job	517	(3)
Message Creation	520	(1)
Media Selection	521	(1)
Close-Up: Goodyear in Latin America	522	(3)
Preliminary Orientation	522	(1)
Regional Meeting to Define Communications Strategy	523	(1)
Advertising Creative Meeting	523	(1)
Qualitative Research Stage	524	(1)
Research Review Meeting	524	(1)
Final Creative Review	524	(1)
Lessons	525	(1)
Summary	525	(4)
Global Promotion, E-Commerce, and Personal Selling	529	(30)
Introduction	531	(1)
Global Sales Promotion	531	(4)
In-Store and Trade Promotions	532	(1)
Sponsorships	533	(2)
Cross-Marketing	535	(1)
Publicity	535	(2)
``Good News . . .''	535	(1)
``. . . and Bad News''	536	(1)
Product Placement	536	(1)
Global Public Relations	537	(2)
International Trade Fairs	539	(1)
Direct Marketing	540	(3)
Regional Developments	541	(1)
Global Strategy	542	(1)
Electronic Commerce	543	(5)
E-tailing Growth	543	(4)
Marketing Strengths and Weaknesses	547	(1)
Promoting the Site	547	(1)
Global Personal Selling	548	(6)
Managing a Sales Force	548	(2)
Personal Salesmanship	550	(1)
Representing the Country	551	(1)
The Presentation	552	(1)
Be Prepared!	553	(1)
Handling Objections	553	(1)
Closing Tactics	553	(1)
Integrated Marketing Communications	554	(1)
Summary	555	(4)
Organizing for Global Marketing	559	(68)
Introduction	561	(1)
The Context	561	(1)
The Task	562	(1)
Organizational Structure	562	(5)
The Global Network as an Asset	567	(2)
Painful History	567	(1)
The Win--Win View	567	(2)
Globalizing Management	569	(2)
Global Marketing Directors	570	(1)
Global Teams	570	(1)
Management Systems	571	(1)
Informal Coordination	571	(1)
Coordinating Committees	572	(1)
Coordinating Staff	572	(1)
People and Organizational Culture	572	(4)
Local Acceptance	573	(1)
Corporate Culture	574	(1)
The Expatriate Manager	575	(1)
Global Customers	576	(2)
Global Account Management	576	(1)
Retail Trade Groups	577	(1)
Conflict Resolution	578	(2)
The Good Global Marketer	580	(1)
Summary	581	(4)
Case 4-1: Banyan Tree Hotels and Resorts: Building an International Brand from an Asian Base	585	(12)
Case 4-2: Texas Instruments: Global Pricing in the Semiconductor Industry	597	(6)
Case 4-3: United Colors of Benetton	603	(11)
Case 4-4: Cathay Pacific Airways: China or the World?	614	(8)
Case 4-5: Hewlett-Packard's Global Account Management	622	(5)
Appendix: Global Marketing Planning	627	(6)
Index	633