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Table of contents:
Part I
The decision whether to internationalize
1 Global marketing in the firm
Learning objectives
1.1 Introduction to globalization
1.2 The process of developing the global marketing plan
1.3 Comparison of the global marketing and management style of SMEs and LSEs
Exhibit 1.1 LEGO’s strategic drift
Exhibit 1.2 Economies of scale with Nintendo Game Boy
1.4 Should the company internationalize at all?
1.5 Development of the ‘global marketing’ concept
Exhibit 1.3 Helly Hansen uses ‘localization’ through geo-targeting technology
Exhibit 1.4 Persil Black and Persil = (same product, but different packaging and market communication)
1.6 Forces for global integration and market responsiveness
Exhibit 1.5 McDonald’s is moving towards a higher degree of market responsiveness
1.7 The value chain as a framework for identifying international competitive advantage
1.8 Value shop and the ‘service value chain’
1.9 Global experiential marketing
Exhibit 1.6 Case Construction Equipment is using experiential marketing
Exhibit 1.7 IKEA’s use of AR
1.10 Information business, ‘Big Data’ and the virtual value chain
1.11 Artificial Intelligence (AI) and its influence on global marketing
1.12 Summary
Case studies
1.1 Green Toys, Inc.: a manufacturer of eco-friendly toys goes international
1.2 Hunter Boot Ltd: the iconic British brand is moving into exclusive fashion
1.3 Nivea
1.4 Uber
Questions for discussion
References
2 Initiation of internationalization
Learning objectives
2.1 Introduction
2.2 Internationalization motives
Exhibit 2.1 Jägermeister: the famous herbal liqueur is going global as a result of ‘managerial urge’ in the family-owned company
Exhibit 2.2 Global marketing and economies of scale in Japanese firms
Exhibit 2.3 Internationalization of Haier – proactive and reactive motives
2.3 Triggers of export initiation (change agents)
2.4 Internationalization barriers/risks
Exhibit 2.4 De-internationalization at British Telecommunications (BT)
2.5 Summary
Case studies
2.1 LifeStraw: Vestergaard-Frandsen transforms dirty water into clean drinking water
2.2 Elvis Presley Enterprises Inc. (EPE): internationalization of a cult icon
2.3 TOMS Shoes
Questions for discussion
References
3 Internationalization theories
Learning objectives
3.1 Introduction
3.2 The Uppsala internationalization model
3.3 The transaction cost analysis (TCA) model
3.4 The network model
3.5 Born globals
Exhibit 3.1 K-pop – a ‘born global’ phenomenon has worldwide success
3.6 Summary
Case studies
3.1 Bumble: the ’Feminist Tinder’ is expanding fast
3.2 BYD electrical cars: the Chinese electric car manufacturer is considering sales worldwide
3.3 Reebok
Questions for discussion
References
4 Development of the firm’s international competitiveness
Learning objectives
4.1 Introduction
4.2 Analysis of national competitiveness (the Porter diamond)
4.3 Competition analysis in an industry
4.4 Value chain analysis
Exhibit 4.1 Hilti is selling the ‘use’ – not the product
4.5 The sharing economy
4.6 The sustainable global value chain
4.7 Corporate social responsibility (CSR)
Exhibit 4.2 Chiquita – integrating CSR in the resource base
4.8 The value net
Exhibit 4.3 Value net – cooperation/competition between competitors within each airline alliance. The three alliances are competing against each other
4.9 Blue ocean strategy and value innovation
4.10 Summary
Case studies
4.1 William Demant hearing aids: different threats appear on the horizon
4.2 DJI Technology Co. Ltd: a Chinese ‘born global’ is dominating the world market for drones with its Phantom and Mavic drones
4.3 Nike
Questions for discussion
References
Part I Case studies
I.1 Electrolux: a white goods manufacturer is considering growth opportunities worldwide
I.2 Nintendo Switch
I.3 Cereal Partners Worldwide (CPW): the no. 2 world player is challenging the no. 1, Kellogg
Part II
Deciding which markets to enter
5 Global marketing research
Learning objectives
5.1 Introduction
5.2 The changing role of the international researcher
5.3 Linking global marketing research to the decision-making process
5.4 Secondary research
5.5 Primary research
5.6 Other types of marketing research
5.7 Marketing research based on Web 3.0
Exhibit 5.1 Amazon.com – sustaining a competitive advantage through market research and analytics
5.8 Setting up an international marketing information system (MIS)
5.9 Summary
Case studies
5.1 Teepack Spezialmaschinen GmbH: organizing a global survey of customer satisfaction
5.2 LEGO Friends: one of the world’s largest toy manufacturers moves into the girls’ domain
5.3 e-Bikes in China
5.4 Hondajets: Honda enters the small-sized business jet market
Questions for discussion
References
6 The political and economic environment
Learning objectives
6.1 Introduction
6.2 The political/legal environment
Exhibit 6.1 Huawei Technologies Corporation: the role of home government in the internationalization process – good and bad
Exhibit 6.2 Google is experiencing political risk in China
6.3 The economic environment
6.4 The European Economic and Monetary Union and the euro
6.5 BRIC – the slowing growth is hitting the emerging countries
Exhibit 6.3 Chotukool – Indian Godrej is creating a disruptive innovation (a low-cost refrigerator) for the BOP market
6.6 ‘Bottom of pyramid’ (BOP) as a market opportunity
Exhibit 6.4 Voltic Cool Pac – distribution of water in Ghana (up to 2011)
6.7 Summary
Case studies
6.1 G-20 and the economic and financial crises: what on earth is globalization about? Protests during a meeting in Buenos Aires, Argentina, November 2018
6.2 Danfoss Power Solutions: which political/economic factors would affect a manufacturer of hydraulic components?
6.3 Debate on globalization
Questions for discussion
References
7 The sociocultural environment
Learning objectives
7.1 Introduction
7.2 Layers of culture
Exhibit 7.1 Electrolux adapts its vacuum cleaner for the Japanese market
7.3 High- and low-context cultures
7.4 Elements of culture
Exhibit 7.2 In China the Citroën C4 brand name was changed to Citroën c-Quatre
Exhibit 7.3 Sensuality and touch culture in Saudi Arabian versus European advertising
Exhibit 7.4 Polaroid’s success in Muslim markets
7.5 Hofstede’s model (the ‘4 + 2’ dimensions model) versus the GLOBE model
Exhibit 7.5 Pocari Sweat – a Japanese soft drink expands sales in Asia
7.6 Managing cultural differences
7.7 Convergence or divergence of the world’s cultures
7.8 The effects of cultural dimensions on ethical decision-making
Exhibit 7.6 The quest for beauty opens a huge market for whitening products in Asia
7.9 Summary
Case studies
7.1 Cirque du Soleil Inc.: the show that revolutionized the circus arts is expanding its global scope
7.2 The Ikea catalogue: are there any cultural differences?
7.3 Allergan – the maker of Botox and breast implants
Questions for discussion
References
8 The international market selection process
Learning objectives
8.1 Introduction
8.2 International market selection: SMEs versus LSEs
8.3 Building a model for international market selection
Exhibit 8.1 Bosch Security Systems: IMS in the Middle East for fire detection systems
8.4 Market expansion strategies
Exhibit 8.2 Sunquick’s waterfall approach
Exhibit 8.3 An example of the ‘trickle-up’ strategy
Exhibit 8.4 Bajaj is selecting new international markets ignored by global leaders
8.5 The global product/market portfolio
8.6 Summary
Case studies
8.1 Waymo: the driverless Google car is finding future growth markets
8.2 Philips Lighting: screening markets in the Middle East
8.3 Oreo (Mondelēz)
Questions for discussion
References
Part II Case studies
II.1 SodaStream: managing profitable growth in an increasingly competitive global environment
II.2 The Female Health Company (FHC): the female condom is seeking a foothold in the world market for contraceptive products
II.3 Rolex: the luxury watch maker is facing increasing competition in the world market
Part III
Market entry strategies
9 Some approaches to the choice of entry mode
Learning objectives
9.1 Introduction
9.2 The transaction cost approach
9.3 Factors influencing the choice of entry mode
Exhibit 9.1 Zara is modifying its preferred choice of entry mode, depending on the psychic distance to new markets
9.4 Summary
Case studies
9.1 Jarlsberg: the king of Norwegian cheeses is deciding on entry modes into new markets
9.2 Jissbon: is acquisition the right way to gain market shares in the Chinese condom market?
9.3 Understanding entry modes into the Chinese market
9.4 Müller Yogurts – entering the US market by Müller Quaker Joint Venture and exit again two years later
Questions for discussion
References
10 Export modes
Learning objectives
10.1 Introduction
10.2 Indirect export modes
10.3 Direct export modes
Exhibit 10.1 Lofthouse of Fleetwood’s (Fisherman’s Friend) decision criteria when selecting new distributors
10.4 Cooperative export modes/export marketing groups
10.5 Summary
Case studies
10.1 Lysholm Linie Aquavit: international marketing of the Norwegian Aquavit brand
10.2 Parle Products: an Indian biscuit manufacturer is seeking agents and cooperation partners in new export markets
10.3 Honest Tea
Questions for discussion
References
11 Intermediate modes
Learning objectives
11.1 Introduction
11.2 Contract manufacturing
11.3 Licensing
11.4 Franchising
Exhibit 11.1 Build-a-Bear workshop’s use of the indirect franchising model in Germany – Austria – Switzerland
11.5 Joint ventures/strategic alliances
Exhibit 11.2 Irn-Bru’s distributor alliance (Y coalition) with Pepsi Bottling Group (PBG) in Russia
Exhibit 11.3 Safedom: a Chinese condom manufacturer needed a partner with which to enter the European market
11.6 Other intermediate entry modes
11.7 Summary
Case studies
11.1 Hello Kitty: can the cartoon cat survive the buzz across the world?
11.2 Kabooki: licensing in the LEGO brand
11.3 Marriott
Questions for discussion
References
12 Hierarchical modes
Learning objectives
12.1 Introduction
12.2 Domestic-based sales representatives
12.3 Resident sales representatives/foreign sales branch/foreign sales subsidiary
12.4 Sales and production subsidiary
12.5 Subsidiary growth and integration strategies
12.6 Region centres (regional HQ)
12.7 Transnational organization
12.8 Establishing wholly owned subsidiaries – acquisition or greenfield
12.9 Location/relocation of HQ
12.10 Foreign divestment: withdrawing from a foreign market
Exhibit 12.1 Tesco’s withdrawal from Japan in 2012 –later in China
Exhibit 12.2 Walmart’s withdrawal from the German market
12.11 Summary
Case studies
12.1 Ralph Lauren Corporation: Polo moved distribution for South-East Asia in-house
12.2 Durex condoms: SSL sell Durex condoms in the Japanese market through its own organization
12.3 Starbucks
Questions for discussion
References
13 International sourcing decisions and the role of the subsupplier
Learning objectives
13.1 Introduction
13.2 Reasons for international sourcing
13.3 A typology of subcontracting
13.4 Buyer–seller interaction
13.5 Development of a relationship
13.6 Reverse marketing: from seller to buyer initiative
13.7 Internationalization of subcontractors
Exhibit 13.1 An example of Japanese network sourcing: the Mazda seat-sourcing case
13.8 Project export (turnkey contracts)
13.9 Summary
Case studies
13.1 ARM: challenging Intel in the world market of computer chips
13.2 Bosch Indego: how to build B2B and B2C relationships in a new global product market – robotic lawnmowers
13.3 Kone elevators and escalators
Questions for discussion
References
Part III Case studies
III.1 Tinder dating app: the famous dating app brand is facing increasing competition from e.g. Badoo
III.2 Spotify: the online music-streaming company is growing fast but is suffering financial imbalance
III.3 Autoliv Airbags: transforming Autoliv into a global company
Part IV
Designing the global marketing programme
14 Product decisions
Learning objectives
14.1 Introduction
14.2 The dimensions of the international product offer
14.3 Developing international service strategies
Exhibit 14.1 Salesforce.com as provider of CRM ‘cloud’ services
14.4 The product life cycle
Exhibit 14.2 The iOS (Apple)/Android (Google) global contest in the smartphone business
Exhibit 14.3 Threadless T-shirt crowdsourcing business
14.5 New products for the international market
Exhibit 14.4 Product invention – solar-powered portable charging systems for India
14.6 Product positioning
Exhibit 14.5 Chinese piano manufacturers are experiencing the ‘country of origin’ (COO) effect
Exhibit 14.6 Madame Tussauds – a brand that brings people closer to celebrities on a global basis
14.7 Brand equity
14.8 Branding decisions
Exhibit 14.7 Unilever’s Snuggle fabric softener – an example of local brands in multiple markets
Exhibit 14.8 Kellogg under pressure to produce under Aldi’s own label
Exhibit 14.9 Shell’s co-branding with Ferrari and LEGO
Exhibit 14.10 Roundup – a global brand for multiple markets
Exhibit 14.11 Maggi – local brands for multiple markets through acquisitions
14.9 Sensory branding
Exhibit 14.12 Starbucks’ expanding product line strategy is causing problems for its ‘scent marketing strategy’
14.10 Implications of the internet for collaboration with customers on product decisions
14.11 Internet of Things (IoT) and its use for marketers
Exhibit 14.13 Google’s use of IoT in the form of the smart thermostat, Nest
14.12 3-D printing – a possible new industrial revolution in customization
Exhibit 14.14 Coca-Cola Israel increases its sales of their mini bottle though a ‘Mini Me’ 3-D Print campaign
14.13 Global mobile app marketing
Exhibit 14.15 L’Oréal is extending the customers’ buying experience with the mobile app Makeup Genius
14.14 ‘Long tail’ strategies
14.15 Brand piracy and anti-counterfeiting strategies
Exhibit 14.16 The next stage in pirating, faking an entire company – NEC
14.16 Summary
Case studies
14.1 Danish Klassic: launch of a cream cheese in Saudi Arabia
14.2 Zippo Manufacturing Company: has product diversification beyond the lighter gone too far?
14.3 Burberry branding
14.4 Tequila Avión
Questions for discussion
References
15 Pricing decisions and terms of doing business
Learning objectives
15.1 Introduction
15.2 International pricing strategies compared with domestic pricing strategies
15.3 Factors influencing international pricing decisions
15.4 International pricing strategies
Exhibit 15.1 German car manufacturers are using ‘skimming’ price strategy in China
Exhibit 15.2 A ‘market pricing’ (‘mass point’) strategy in use: the Converse brand is making a comeback under Nike ownership
Exhibit 15.3 Volkswagen Group’s product portfolio approach to pricing
Exhibit 15.4 The Gillette price premium strategy
Exhibit 15.5 Dollar Shave Club
15.5 Implications of the internet for pricing across borders
15.6 Terms of sale and delivery
15.7 Terms of payment
15.8 Export financing
15.9 Summary
Case studies
15.1 Harley-Davidson: how should the pricing strategy be affected by the new EU tariffs in 2018?
15.2 Gillette Co.: is price standardization possible for razor blades?
15.3 Vaseline pricing strategy
Questions for discussion
References
16 Distribution decisions
Learning objectives
16.1 Introduction
16.2 External determinants of channel decisions
16.3 The structure of the channel
Exhibit 16.1 Burberry: the iconic British luxury brand targets 25 of the world’s wealthier cities
16.4 From single-channel to omnichannel strategy
Exhibit 16.2 Dell’s use of the multichannel distribution strategy
16.5 Managing and controlling distribution channels
16.6 Blockchain technology and its influence on international marketing and SCM
Exhibit 16.3 Maersk’s use of blockchain in their shipping
16.7 Implications of the internet for distribution decisions
16.8 Online retail sales
16.9 Smartphone marketing
16.10 Channel power in international retailing
Exhibit 16.4 The ‘banana split’ model
16.11 Grey marketing (parallel importing)
16.12 Summary
Case studies
16.1 De Beers: forward integration into the diamond industry value chain
16.2 Tupperware: the global direct distribution model is still working
16.3 DHL
Questions for discussion
References
17 Communication decisions (promotion strategies)
Learning objectives
17.1 Introduction
17.2 The communication process
Exhibit 17.1 Husqvarna’s consumer wheel
17.3 Communication tools
Exhibit 17.2 Ninjago’s 360-degree marketing communication
Exhibit 17.3 Ricola is using celebrity endorsement in the international marketing of its herbal drops
Exhibit 17.4 Ambush marketing strategy – Dutch Bavaria vs Anheuser Busch’s Budweiser during the Fifa World Cup 2010
17.4 International advertising strategies in practice
Exhibit 17.5 Jarlsberg® cheese – cross-border communication
17.5 Implications of the internet for communication decisions
17.6 Social media marketing
Exhibit 17.6 Abena is using ‘influencer marketing’ to penetrate the US diaper market
17.7 Categorization of social media
17.8 The social media funnel
17.9 Development of the social media marketing plan
17.10 Developing a viral marketing campaign
Exhibit 17.7 Fox Business (Trish Regan) is selling a political statement
17.11 Summary
Case studies
17.1 Helly Hansen: sponsoring fashion clothes in the US market
17.2 Morgan Motor Company: can the British retro sports car brand still be successful after 100 years?
17.3 BMW Motorcycles
Questions for discussion
References
Part IV Case studies
IV.1 Swarovski: the jewellery/crystal manufacturer is expanding into e-commerce and social media
IV.2 Levi Strauss: expanding in new international markets
IV.3 Guinness: how can the iconic Irish beer brand compensate for declining sales in the home market?
Part V
Implementing and coordinating the global marketing programme
18 Cross-cultural sales negotiations
Learning objectives
18.1 Introduction
Exhibit 18.1 Google gives a clock as gift in China
18.2 Cross-cultural negotiations
Exhibit 18.2 Euro Disney becomes Disneyland Resort Paris – Disney learns to adapt to European cultures
18.3 Intercultural preparation
18.4 Coping with expatriates
18.5 Knowledge management and learning across borders
18.6 Transnational bribery in cross-cultural negotiations
18.7 Summary
Case studies
18.1 ZamZam Cola: marketing of a ‘Muslim’ cola from Iran to the European market
18.2 TOTO: the Japanese toilet manufacturer seeks export opportunities for its high-tech brands in the US
18.3 Dunkin’ Donuts
18.4 Stella & Dot
Questions for discussion
References
19 Organization and control of the global marketing programme
Learning objectives
19.1 Introduction
19.2 Organization of global marketing activities
19.3 The global account management organization
Exhibit 19.1 Danfoss Power Solutions’ GAM
19.4 Controlling the global marketing programme
19.5 The global marketing budget
19.6 The process of developing the global marketing plan
19.7 Summary
Case studies
19.1 Mars Inc.: merger of the European food, pet care and confectionery divisions
19.2 Henkel: should Henkel shift to a more customer-centric organization?
19.3 McDonald’s
Questions for discussion
References
Part V Case studies
V.1 Tencent: the Chinese online giant is seeking new alliances
V.2 Huawei smartphones: expanding into the international markets for smartphone
V.3 Tetra Pak: how to create B2B relationships with the food industry on a global level
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