Global Marketing Management Update 2000

by Kotabe, Masaaki; Helsen, Kristiaan

• ISBN13: 9780471353904
• ISBN10: 0471353906
• Format: Hardcover
• Copyright: 1999-05-01
• Publisher: John Wiley & Sons Inc

Summary

The ultimate objective of this book is to help you prepare for the 21st Century and become an effective manager overseeing global marketing activities in an increasingly competitive environment. This book is the first to offer a true global, as opposed to multinational perspective on marketing. This global approach also presents marketing in a cross functional approach to the business operation. This edition addresses the reaction to the recent 1998 Asian financial crisis and how these dramatic changes and their effect on the rest of our global economy. Also, based on European countries trying to create a unified European economy, the prominent event of the introduction of a common European currency, the Euro, on January 1, 1999 has impact world wide. Issues surrounding these events are covered at length.

Table of Contents

Update 2000	U1
The Asian Financial Crisis	U2
Marketing in Euro-Land	U13
Part One: Globalization
Globalization Imperative	1	(24)
Why Global Marketing Is Imperative	2	(2)
Globalization of Markets and Competition	4	(4)
Evolution of Global Marketing	8	(17)
Part Two: Global Marketing Environment
Global Economic Environment	25	(28)
Intertwined World Economy	26	(4)
Economic Environment Within a Nation	30	(2)
Role of the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO)	32	(5)
U.S. Position in Foreign Direct Investment and Trade	37	(5)
Information Technology and Changing Nature of Competition	42	(2)
Regional Economic Arrangements	44	(4)
Multinational Corporation	48	(5)
Financial Environment	53	(28)
Historical Role of the U.S. Dollar	54	(1)
The Gold Standard	55	(1)
The Interwar Years: 1919--1939	55	(1)
Development of the Current International Monetary System	56	(6)
The Bretton Woods Conference	56	(1)
The International Monetary Fund	57	(1)
The International Bank for Reconstruction and Development	58	(1)
Twin Crises: Oil Prices and Foreign Debt	59	(1)
Fixed versus Floating Exchange Rates	59	(3)
Foreign Exchange and Foreign Exchange Rates	62	(9)
Purchasing Power Parity	62	(1)
Forecasting Exchange Rate Fluctuation	63	(1)
Coping with Exchange Rate Fluctuations	64	(3)
Spot versus Forward Foreign Exchange	67	(1)
Exchange Rate Pass-Through	68	(3)
Balance of Payments	71	(10)
The Internal and External Adjustments	77	(4)
Global Cultural Environment	81	(30)
Defining Culture	83	(2)
Elements of Culture	85	(11)
Material Life	85	(1)
Language	86	(1)
Social Interactions	87	(1)
Religion	88	(6)
Education	94	(1)
Value Systems	95	(1)
Cross-Cultural Comparisons	96	(5)
High- versus Low-Context Cultures	96	(1)
Cultural Homogeneity	97	(1)
Hofstede's Classification Scheme	98	(3)
Adapting to Foreign Cultures	101	(3)
Cross-Cultural Negotiations	104	(7)
Stages of Negotiation Process	104	(2)
Cross-Cultural Negotiation Strategies	106	(5)
Political and Legal Environment	111	(40)
Political Environment---Individual Government	112	(12)
Home Country versus Host Country	112	(1)
Structure of Government	113	(2)
Government Policies and Regulations	115	(9)
Political Environment---Social Pressures and Political Risk	124	(6)
Social Pressures and Special Interests	124	(2)
Managing the Political Environment	126	(4)
International Agreements	130	(2)
G-7 (Group of Seven)	131	(1)
COCOM (The Coordinating Committee for Multilateral Controls)	131	(1)
International Law and Local Legal Environment	132	(5)
International Law	132	(1)
Local Legal Systems and Laws	133	(3)
Jurisdiction	136	(1)
Issues Transcending National Boundaries	137	(14)
ISO 9000	137	(1)
Intellectual Property Protection	137	(4)
Antitrust Laws of the United States	141	(3)
U.S. Foreign Corrupt Practices Act of 1977	144	(7)
Part Three: Development of Competitive Strategy
Global Marketing Research	151	(32)
Research Problem Formulation	153	(1)
Secondary Global Marketing Research	154	(5)
Secondary Data Sources	154	(3)
Problems with Secondary Data Research	157	(2)
Primary Global Marketing Research	159	(2)
Focus Groups	159	(2)
Survey Methods for Cross-Cultural Marketing Research	161	(5)
Market Size Assessment	166	(6)
Method of Analogy	167	(1)
Trade Audit	168	(1)
Chain Ratio Method	169	(1)
Cross-Sectional Regression Analysis	170	(2)
New Market Information Technologies	172	(3)
Managing Global Marketing Research	175	(8)
Selecting a Research Agency	175	(1)
Coordination of Multicountry Research	176	(7)
Global Segmentation and Positioning	183	(28)
Reasons for International Market Segmentation	184	(4)
Country Screening	185	(1)
Global Market Research	185	(1)
Entry Decisions	186	(1)
Positioning Strategy	186	(1)
Marketing Mix Policy	186	(2)
International Market Segmentation Approaches	188	(4)
Bases for Country Segmentation	192	(9)
Demographics	192	(1)
The Asian Teenagers Segment: A Boon for the Nikes of the World	193	(1)
Socioeconomic Variables	193	(3)
Culture	196	(1)
Political Conditions	197	(1)
Behavior-Based Segmentation	198	(1)
Lifestyle	199	(2)
Country Segmentation Tools	201	(4)
Cluster Analysis	201	(2)
Regression	203	(2)
Issues in International Market Segmentation	205	(1)
Technical Issues	205	(1)
Managerial Issues	206	(1)
International Positioning Strategies	206	(5)
Global Competitive Analysis	211	(30)
Information Technology and Global Competition	212	(3)
Real-Time Management	212	(1)
On-Line Communication	213	(1)
``Internet'' Organization	213	(1)
Faster Product Diffusion	214	(1)
Global Citizenship	214	(1)
Global Strategy	215	(11)
Global Industry	215	(3)
Competitive Structure	218	(2)
Hypercompetition	220	(5)
Interdependency	225	(1)
Global Marketing Strategy	226	(5)
Benefits of Global Marketing	226	(3)
Limits to Global Marketing	229	(2)
Regionalization of Global Marketing Strategy	231	(5)
Cross-Subsidization of Markets	234	(1)
Identification of Weak Market Segments	235	(1)
``Lead Market'' Concept	235	(1)
Competitive Analysis	236	(5)
Global Market Entry Strategies	241	(30)
Target Market Selection	242	(4)
Choosing the Mode of Entry	246	(4)
Decision Criteria for Mode of Entry	246	(3)
Mode-of-Entry Choice: A Transaction Cost Explanation	249	(1)
Exporting	250	(2)
Indirect Exporting	251	(1)
Cooperative Exporting	251	(1)
Direct Exporting	252	(1)
Licensing	252	(2)
Benefits	252	(1)
Caveats	253	(1)
Franchising	254	(1)
Benefits	254	(1)
Caveats	255	(1)
Contract Manufacturing	255	(1)
Benefits	255	(1)
Caveats	255	(1)
Joint Ventures	256	(3)
Benefits	256	(1)
Caveats	257	(1)
Drivers Behind Successful International Joint Ventures	258	(1)
Wholly Owned Subsidiaries	259	(3)
Benefits	259	(1)
Caveats	260	(1)
Acquisitions and Mergers	261	(1)
Greenfield Operations	261	(1)
Cross-Border Strategic Alliances	262	(9)
Types of Strategic Alliances	262	(2)
The Logic Behind Strategic Alliances	264	(2)
Cross-Border Alliances That Succeed	266	(5)
Global Sourcing Strategy: R & D, Manufacturing, and Marketing Interfaces	271	(30)
Extent and Complexity of Global Sourcing Strategy	273	(2)
Trends in Global Sourcing Strategy	275	(6)
The Decline of Exchange Rate Determinism of Sourcing	275	(3)
New Competitive Environment Caused by Excess Worldwide Capacity	278	(1)
Innovations in and Restructuring of International Trade Infrastructure	279	(1)
Enhanced Role of Purchasing Managers	280	(1)
Trend Toward Global Manufacturing	280	(1)
Value Chain and Functional Interfaces	281	(8)
R & D/Manufacturing Interface	283	(2)
Manufacturing/Marketing Interface	285	(2)
Marketing/R & D Interface	287	(2)
Logistics of Sourcing Strategy	289	(3)
Intra-Firm Sourcing	290	(1)
Outsourcing	291	(1)
Costs and Consequences of Global Sourcing	292	(9)
Need for Coordination	292	(1)
Functional Mismatch	293	(1)
Long-Term Consequences	294	(7)
Part Four: Global Marketing Strategy Developement
Global Product Policy Decisions I: Developing New Products for Global Markets	301	(30)
Global Product Strategies	303	(4)
Product and Communication Extension---Dual Extension	304	(1)
Product Extension---Communications Adaption	305	(1)
Product Adaptation---Communications Extension	305	(1)
Product and Communications Adaptation---Dual Adaptation	306	(1)
Product Invention	306	(1)
Standardization Versus Customization	307	(5)
Multinational Diffusion	312	(2)
Developing New Product for Global Markets	314	(13)
Identifying New Product Ideas	315	(2)
Screening	317	(2)
Concept Testing	319	(4)
Test Marketing	323	(2)
Timing of Entry: Waterfall versus Sprinkler Strategies	325	(2)
Global New Product Development and Culture	327	(4)
Global Product Policy Decisions II: Marketing Products and Services	331	(36)
Global Branding Strategies	332	(15)
Global Brands	332	(4)
Global or Local Brands?	336	(4)
Brand Name Changeover Strategies	340	(1)
Private Label Branding (``Store Brands'')	341	(2)
Umbrella (Corporate) Branding	343	(1)
Protecting Brand Names	344	(3)
Managing Multinational Product Lines	347	(4)
Product Piracy	351	(3)
Strategic Options Against Product Piracy	353	(1)
Country of Origin Stereotypes	354	(4)
Country of Origin Influences on Consumers	354	(2)
Strategies to Cope with Country-of-Origin Stereotypes	356	(2)
Global Marketing of Services	358	(9)
Challenges in Marketing Services Internationally	358	(2)
Opportunities in the Global Service Industries	360	(1)
Global Service Marketing Strategies	361	(6)
Global Pricing	367	(34)
Drivers of Foreign Market Pricing	368	(7)
Company Goals	368	(1)
Company Costs	369	(1)
Customer Demand	370	(2)
Competition	372	(2)
Distribution Channels	374	(1)
Government Policies	374	(1)
Managing Price Escalation	375	(1)
Pricing in Inflationary Environments	376	(3)
Global Pricing and Currency Movements	379	(4)
Currency Gain/Loss Pass Through	380	(3)
Currency Quotation	383	(1)
Transfer Pricing	383	(3)
Determinants of Transfer Prices	383	(2)
Setting Transfer Prices	385	(1)
Minimizing the Risk of Transfer Pricing Tax Audits	386	(1)
Global Pricing and Antidumping Regulation	386	(2)
Price Coordination	388	(5)
Aligning Pan-Regional Prices	390	(2)
Implementing Price Coordination	392	(1)
Countertrade	393	(8)
Forms of Countertrade	393	(2)
Motives Behind Countertrade	395	(6)
Communicating with the World Consumer	401	(38)
Constraints on Global Communication Strategies	402	(9)
Language Barriers	402	(3)
Cultural Barriers	405	(1)
Local Attitudes toward Advertising	406	(1)
Media Infrastructure	406	(2)
Advertising Regulations	408	(3)
Setting the Global Advertising Budget	411	(3)
Percentage of Sales	412	(1)
Competitive Parity	412	(1)
Objective-and-Task	413	(1)
Message Strategy	414	(9)
The ``Standardization'' versus ``Adaptation'' Debate	414	(1)
Merits of Standardization	414	(4)
Barriers to Standardization	418	(3)
Approaches to Creating Advertising Copy	421	(2)
Global Media Decisions	423	(5)
Media Infrastructure	423	(1)
Media Limitations	424	(2)
Recent Developments in the International Media Landscape	426	(2)
Choosing an Advertising Agency	428	(1)
Coordinating International Advertising	429	(3)
Monetary Incentives (Cooperative Advertising)	429	(1)
Advertising Manuals	430	(1)
Feedback via the Internet	430	(1)
Lead-Country Concept	430	(1)
Global or Pan-Regional Meetings	430	(2)
Other Forms of Communication	432	(7)
Sales Promotions	432	(1)
Event Sponsorships	433	(1)
Trade Shows	434	(5)
Sales Management	439	(26)
Market Entry Options and Sales Force Strategy	441	(4)
Role of Foreign Governments	444	(1)
Cultural Considerations	445	(4)
Personal Selling	445	(1)
Cultural Generalization	446	(1)
Corporate Culture	446	(2)
Myers-Briggs Type Indicator	448	(1)
Impact of Culture on Sales Management and Personal Selling Processes	449	(7)
Sales Force Objectives	450	(1)
Sales Force Strategy	451	(1)
Recruiting and Selecting	452	(1)
Training	452	(1)
Supervising	453	(2)
Evaluating	455	(1)
Expatriates	456	(9)
Advantages of Expatriates	456	(1)
Difficulties of Sending Expatriates Abroad	457	(4)
Generalizations About When Expatriates are Good/Bad	461	(4)
Global Logistics and Distribution	465	(26)
Definition of Global Logistics	466	(1)
Managing Global Logistics	467	(10)
Modes of Transportation	469	(2)
Warehousing and Inventory Management	471	(3)
Intra-Company versus Inter-Company (Third Party) Logistic Management	474	(3)
Free Trade Zones	477	(3)
Maquiladora Operation	480	(1)
U.S. Special Import Tariff Provisions	481	(1)
Global Retailing	482	(9)
``Push'' versus ``Pull''	482	(1)
On-Time Retail Information Management	483	(1)
Retailing Differences across the World	484	(7)
Export and Import Management	491	(32)
Organizing for Exports	493	(2)
Research for Exports	493	(1)
Export Market Segments	494	(1)
Indirect Channels of Distribution	495	(2)
Direct Export Marketing	497	(1)
Linkage Between Foreign Direct Investment and Exports	498	(1)
Mechanics of Exporting	499	(7)
Legality of Exports	499	(3)
Export Transactions	502	(1)
Terms of Shipment and Sale	503	(1)
Payment Terms	504	(2)
Currency Hedging	506	(1)
Role of the Government in Promoting Exports	506	(6)
Export-Import Bank	508	(1)
U.S. Tariff Concessions	509	(2)
Export Regulations	511	(1)
Managing Imports---The Other Side of the Coin	512	(2)
Mechanics of Importing	514	(2)
Entry of Imports into the United States	515	(1)
Gray Markets	516	(7)
Why Gray Markets Develop	517	(6)
Part Five: Managing Global Operations
Organizing Global Marketing Efforts	523	(26)
Key Criteria in Global Organizational Design	524	(1)
Environmental Factors	524	(1)
Firm-Specific Factors	525	(1)
Organizational Design Options	525	(11)
International Division Structure	526	(1)
Global Product Division Structure	526	(2)
Geographic Structure	528	(3)
Matrix Structure	531	(2)
The Global Network Solution	533	(3)
Global Teamwork	536	(2)
Life Cycle of Organizational Structures	538	(3)
To Centralize or Decentralize?	541	(2)
Controlling Global Marketing Efforts	543	(6)
Formal (``Bureaucratic'') Control Systems	543	(2)
Informal Control Methods	545	(4)
Appendix	549	(8)
Information Sources for Global Marketing Management	549	(8)
Cases	557	(141)
Starbucks Coffee: Expansion in Asia	558	(6)
Gap, Inc.	564	(10)
SEGA: The Way the West Was Won	574	(4)
Procter & Gamble: Facelle Division Facial Tissue	578	(10)
Waste Management International PLC: Strategy for Asia	588	(21)
Baxter International---Renal Division: Market Opportunities in Latin America	609	(16)
Tilting Windmills: Sanex Tries to Conquer Europe	625	(23)
Appendix A: Subsidiaries and Affiliated Companies of SL/DE as of 1992	641	(4)
Appendix B: T.V. Commercials (20``) Gel (Salad)	645	(2)
Appendix C: T.V. Commercials (20'') Gel (Apple)	647	(1)
Club Med: The Party is Over	648	(6)
Ford Motor Company and Die Development	654	(10)
Phama Swede: Gastirup	664	(12)
Anheuser-Busch International, Inc.: Making Inroads Into Brazil and Mexico	676	(6)
Toys ``R'' Us Goes to Japan	682	(16)
Author Index	698	(6)
Subject Index	704	(7)
Photo Credits	711