New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here


by: Ms. Beulah Walter


Ms. Beulah Walter
GPA 3.64

J. Wu

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

J. Wu
Class Notes
25 ?




Popular in Course

Popular in Marketing

This 10 page Class Notes was uploaded by Ms. Beulah Walter on Tuesday October 13, 2015. The Class Notes belongs to MKT 4443 at Louisiana State University taught by J. Wu in Fall. Since its upload, it has received 33 views. For similar materials see /class/222519/mkt-4443-louisiana-state-university in Marketing at Louisiana State University.




Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/13/15
Framework of Global Marketing I Where does global marketing come from Globalization 8 Global Marketing I How do firms develop competitive marketing strategy in global markets ompetition I What are the global customer value systems Culture Global Con ict in the First Half of Last Century I Global Depression Great Depression in US I WI and WW II Con ict Trade Issues I Protectionism The need to balance imports and exports between countries An economical weapon for other purposes I Trade Barriers Every country seems to take advantage of the open US market while putting barriers in the way ofUS exports Barriers to trade both tariff and nontariff are one of the major issues confronting international marketers Con ict Currency Issues I Currency Stability and Convertibility Exchange rate The ratio that measures the value of one currency in terms of another currency your currency vs their currency Freely oating Exchange rate is determined by the currency market forces of supply and demandif the demand is high currency will go up and vice versa Soft currency Pegged currency No free oating A xed ratio between two currencies Hong Kong Dollars pegged to US dollars Chinese Yuan or RMB pegged to a basket of currencies Con ict Management I Business Issues General Agreement on Tariffs an Trade GATT World Trade Organization WTO I Currency Issues International Monetary Foundation IMF Bretton Woods Agreement I Issues on Imbalances Cross Regions Different Economic Integration I Issues on Imbalance Between Rich and Poor World Bank Different Economic Integrations I Free Trade Areas Drop trade barriers among themselves but to allow each member country to maintain independent trade relations with nonmember countries Eg NAFTA I Customs Unions Drop trade barriers among themselves and to establish common external barriers between members and nonmembers countries Eg SACU Southern African Customer Union I Common Markets A customs union in which the free ow of resources such as labor and capital in encourages among member nations Eg MERCOSUR EU I Monetary Unions common market in which member countries no longer regulate their own currencies Eg E Global Prosperity in the Second Half of Last Century I Cold War A socialist Marxist approach eg USSR China vs A democratic capitalist approach eg US Iapan I Marshal Plan Prosperity in Capitalist Camp I GlobalizationAcceleration I Prosperity in Marxist Camp The Fall of Berlin Wall The Economic Reform in Russia and China Globalization Phases I The Multinational Phase Localization 0 Foreign markets could b penetrated easily 0 Since production was often localized products couldbe adapted to local markets I The Global Phase Standardization o The appearance of strong foreign competitors in the US was a major force behind the emergence of the global perspective Japanese companies had entered the US market with spectacular success in markets such as autos and consumer electronics The Antiglobalization Phase I The antiglobalization forces gained steam throughout the year 2000 o Questioning of the economic and social benefits of globalization continued The antiglobalization arguments involve a miX of economic political and social issues 0 One main complaint is that globalization has failed to lift the standard of living of many third world countries while multinational companies have profited signi cantly What Drives Globalization A MicroEconomic View I Demand side Levitt 1983 0 Technology Innovation 9 Improve 0 Communication 9 Info and Taste 0 Homogenization 9Product o Standardization 9 Superior Quality Price Ratio I Supply side 0 Preferential Treatments Government involvement 0 Highly EducatedSkillful Labor Pool 0 CountryFirm Competitive Advantage eg favorable productive environment What Drives Globalization A MicroEconomic View I Firm Competitive Advantages Knowledge Assets 0 Basically intangible assets Examples of knowledge assets are brand equity goodwill patents technical and managerial knowhow In today39s globally competitive environment Kn0wledge assets can be more powerful competitive advantages 0 0 than access to land buildings and machinery I Learning Organizations 0 Organizations whose competitive advantage is in the ability of the organization To innovate to create new products to develop new markets to adopt new distribution channels to nd new advertising media and to discard outdated products and tired sales routines A MicroEconomic View Government Government has played a fundamental role in driving a smoother globalized economy by setting up more transferable standards cross country boarders eg ISO 9001 9001 is an international quality standard developed by the International Organization for Standardization ISO a worldwide federation of national standards bodies representing some 130 countries 0 Eight Quality Management Principles inISO 9001 which are incorporated within the requirements of the standard and can be applied to improve organizational performance A MicroEconomic View I Negative Industry Drivers Not all industries have the right characteristics for a global strategy I Lack of Resources 0 Not all companies have the required resources managerial nancial to implement global marketing Localized Mix Requirements 0 Not all marketing mix elements lend themselves to a global treatment Antiglobalization Threats 0 Close coordination of strategies across countries can make the rm vulnerable to antiglobalization actions Market Concept Evolution I Multidomestic Markets 0 Product markets in which local consumers have r ferences and functional requirements widely different from one another s and others elsewhere The typical market categories asfoods drinks clothing and entertain men t 0 Global Markets Markets in which buyer preferences are similar across countries 0 Within each country several important segment limits 0 Foreign 0 have quotforeignquot heir communications Idea Treat Foreign Country differen tly 0 Country 0 International Marketing der term encompassing all marketing efforts in forei n emphasizing on locality 0 Global Marketing e ers to marketing activities coordinated and integrated acros multiple country markets The integration can involve standardized products uniform packaging identical brand names synchronized product introductions similar advertising messages or coordinated sales campaigns across markets in several countries Idea Manage differen t coun tries with the same principle by taking locality in toconsideration focusing on standardization an dsynergy Exploiting Market Potential and Growth T is is the typical marketing objective Gaining Scale and Scope Returns at Home 7 Longer production series and capital investment increase productivity Learning from a Leading Market 7 ro ts may not be made in very l 01 z 5 E 5 o 1 m 7 o 5 1 m 5 technology and about competition can be gained 0 Pressuring Competitors Increasing the competitive pressure in a competitor s stronghold mar et might help divert the competitor s attention from other markets 0 Diversifying Markets By ad ing new countries and markets to the company portfolio the rm s dependence on any one market will be lessened 0 Learning How to do Business Abroad This is an important spillover effect from marketing in a foreign country Markeiing Strategy Evolution 0 Localized or Global Marketing A global marketing strategy that totally globalizes all marketing activities is not always achievable or even desirable 0 Developing Localized Global Marketing mon approach is for a company to globalize its product strategy by marketing the same product lines product designs and brand names everywhere but to localize distribution and marketing mmunications 0 Marketing Role of Leading Markets racterized by strong and demand customers Free from government regulation measures 0 Products and services incorporate the latest technology Companies are strong at the high end of the product line 0 Not necessarily the largest markets although they often are Marketing Theory Evolution I Monopolistic Technology and Product Quality Competition on Technology I The key to successful global marketing is adaptation to the environmental differences from one market to another Competition on Marketing Knowledge Primary obstacles to success in global marketing 0 SRC Self Reference Criterion Is an unconscious reference to one39s own cultural values experiences and knowledge as abasis for decisions 0 Associatedethnocentrism Is the notion that one39s own culture or company knows best how to do things Marketing Theory Evolution Dangers of the SRC Failing to recognize the need to take 0 0 action Discounting the cultural differences that exist among countries Reacting to a situation in a way offensive to your hosts Ethnocentrism and the SRC can in uence an evaluation of the appropriateness of a domestically designed marketing mix for a foreign market The most effective way to control the in uence of ethnocentrism and the SRC is nize their effects on our behavior I n g E 15 CD a 52 lt D E lt n E 0 D m FSA Developing Global Competitive Strategies Porter 5 ve forcesquot mo e Resource Marketbased View Competitive Advantage I The fundamental aim of business strategy is to create and sustain competitive advantage When doing competitive analysis in the global context it is important to identify whether a company39s strength is rm s eci c or countryspecific Characteristics of CSA I Change over time I Change across product categories I Change across markets CSA On Supply Side How Does CSA Work Vernon39s International Product Cycle IPC 1966 natural endowment view with Smith 1776 and Ricardo 1817 0 Descriptive theory of global trade Porter 5 National Advantage 1990 labor skill view with Krugman o Normative theory of global trade CSA Marketing Implication I Countryof Origin Effects to Customers o The effect refers to the impact on customers of a product39s made inquot label or the home country of a brand Products or services from countries with a positive negative image tend to be favorably unfavorably evaluated by customers 0 FSA I Firmspeci c advantages refer to those competitive advantages which are controlled by the individual rm alone 0 KnowledgeBased FSAs Knowledge is today recognized as one of the key resources ofthe rm FSA in Marketing I For global marketers it is important to recognize that the source of a rm spec39L c advantage can depend on specific marketing know how RAND Coca Cola Mercedes Benz Sony 0 TECHNOLOGY Ericsson BMW Canon 0 ADVERTISING Marlboro Unilever Absolut Vodka o DISTRIBUTION Kodak Panasonic Gillette o VALUE Toyota IKEA Compaq Lenovo Hair I and their relationship with transferability and transaction cost FSAs and Transferability I Various factors can make the application of marketing FSAs difficult in other countries 0 These include limits on TV advertising and instore promotion 0 There are also limits on what distribution channels are available FSA I FSA o In services a major difficulty in transferring marketing skills abroad is that service skills often represent intangibles not skills quotembodiedquot in the product itself as technology typically is s and Transaction Cost A company that intemalizes its FSAs decides to exploit the advantages under its own control In global marketing this typically means 0 Exporting of the nished product 0 Wholly owned subsidiary abroad FDI 0r involve externalizing that is an independent contractor in the foreign country agrees to carry out some of the value added activities s and Transaction Cost Risk of dissipation of the FSAs 1 In internalizing eg reverse engineering 2 In externalizing since the foreign rm needs to be shown ablueprint of how to perform the activities Source of Competitive Advantage 0 Where are your CSA and FSA located I A clear understanding of the CSA and particularly FSAs is a key to the formulation of a successful marketing strategy in a country 0 Analyzing FSA Using the Value Chain I A rm39s activities in transforming raw materials and other inputs to nal goods can be viewed as a collection of complementary and sequential tasks each adding value to the product 0 Are they transferable I Not all FSAs can be transferred to foreign markets 0 Are they sustainable I Knowledge Assets 0 How do you deliver them Competitive Advantage Orientation 0 Resource Based InsideOutside mo e I defines the rm not in terms of the products or services it markets or in terms of the needs it seeks to satisfy but in terms of what it is capable o 0 Market Based OutsideInside mo e I focuses on competitive advantages in the marketplace the resources perspective fosters a view of the company as a leveraging force for its resources Finally Developing Global Com etitive Strategy Culture In Our Context 7 Culture is usually defined as the underlying value framewor that guides an individual39s behavior Culture is re ected in an individual39s perceptions of observed events in personal interactions and in the selection of appropriate responses in social situations 7 It manifests itself in learned behavior as individuals grow up and gradually come to understand what their culture demands of them Culture creates a repertoire of behavioral skills So culture implies 7 Difference in Value Framework 7 Difference in Behavior Culture Relevance to Marketing How to do it behavior not what to do goal 7 For consumers it means needs are the same wants are different across cultures 7 For managers it means they always strive to satisfy the same need But how to do business to satisfy the need is different across cultures Relevant behavior 7 Economic behavior eg Rationa i 7 Psychological behavior eg Perce tion How Do We Understand Culture In Theory Qualitative culture models 7 Hall39s Silent Language Role 7 Gannon39s Metaphors 7 Rapaille39s Archetypes Quantitative culture models 7 Hofstede39s 5 Cultural Dimensions Hall39s quotSilent Languagesquot Space 7 The comfortable distance between two people conversing differs across cultures Material Possessions 7 The possessions that describe a person39s station in life differ across cultures Friendship Patterns 1 u ture determines what friendship means to a person Agreements Between People 7 Contracts are interpreted differently across cultures Time 7 Time perceptions vary considerable across cultures a little latequot in some countries means 5 minutes elsewhere 2 ours h Hall39s Context Dependency Low Context Cultures Silent Language Role Is Low 7 Intentions are expressed verbally 7 A person39s meaning shouldbe explicit not taken for granted 7 Propositions have to be justi ed and opinions defended o e 7 Low context cultures can be found in culturally diverse countries Eg US Russia Australia and New High Context Cultures Silent Language Role Is High 7 The meaning of individual behavior and speech changes depending on the situation or c ntext Nonverbal messages are full of important and intended meanings 7 When words are spoken reading between the linesquot is important 7 High context cultures can be found in most of the culturally homogeneous countries European countries some of Latin American countries and many Asian countries Japan China Gannon s Metaphors Gannon suggested the use of descriptive metaphors for different cultures 7 S uggestive analogues which characterize cultures in such as way as to help managers anticipate what people39s reactions might be in different situations Gannon39s Metaphors offer a mental anchor for the manager Rapaill O O O O 0 Who has to deal with a new culture and cannot foresee all contingencies American football Individualism and competitive speculation huddling ceremonial celebration of perfection The British ho use Laying the foundations building the brick house living in the brick house 7 The German Symphony Orchestra conductors performance society education and politics 7 The French wine Purity classi cation composition compatibility maturation e39s Archetypes Secret 1 The structure is the message People don39t buy products and services they buy relationships Secret 2 Culture also is unconscious Understanding the local culture makes a relationship successful Secret 3 No code no ke Each culture has a DNA archetype to be decoded Secret 4 Time space energy are building blocks After decoding the strategy can be encoded Secret 5 Solve the right problem Decoding and encoding are necessary to succeed in global marketing Hofstede s 5 Cultural Dimensions Individualism versus Collectivism 7 In a collective society the identity and worth of the individual is rooted in the social system less in individual achievement High versus Low Power Distance 7 High power distance societies tend to be less egalitarian while democratic countries exhibit low power distance Masculine versus Feminine 7 Captures the degree to which culture is dominated by assertive males rather than nurturing females and the corresponding values Uncertainty Avoidance es nations based on the level of risk tolerance or aversion among the people Confucianist Dynamics 7 Distinguishes the longterm orientation of Asian people from the more shortterm outlook of Western people Historic Aspects of Culture Historical events always are viewed from one39s own biases an A crucial element in understanding any nation39s business and political culture is the subjective perception of its history Marketing Implications of Culture Models 0 Differences in Culture 7 Nonverbal message 7 Language 7 Geoeconomics 7 History 0 Differences in Value Behavior 7 0 jectiveness 7 Competitiveness 7 Equality 7 Time 0 Differences in Marketing 7 Managerial Skills 7 Decisionmaking process eg Negations 0n Marketing Management Managerial Skill Development General culture de nes a set of acceptable and unacceptable behaviors Acceptable behavior in the business rm is usually a re ection of acceptable behavior in society 7 Individuals learn to act out these behavioral norms 7 Over time individuals become skilled at displaying acceptable behaviors and skilled at avoiding unacceptable behaviors 7 To help managers cope with or avoid cultural clashes most companies offer new expatriate managers and their families predeparture workshops and briefings 0n Marketing Management Negotiations Know Whom You Are Dealing With 7 In most negotiations knowing something about the cultural background of the opposite partner is considered a must Know What They Hear 7 The second caution from experts is the possibility of discrepancies between what the manager thinks he or she is communicating and what is actually received by the other Party Nonverbal communication is always a mysterious ingredient in negotiations Know When to Say What 7 Spend some time to understand the other culture And build a relationship if necessary Cultural Oversensitivity Nonadaptation 7 It is important to recognize that when a country is read for change a different culture can be attractive 7 There are limits to the effectiveness of cultural sensitivity as an accommodation strategy 7 Attempts at cultural adaptation is prone to misinterpretation and may even create distrust Keeping One39s Center 7 Cultural adaptation runs the risk of the manager losing his or her bearings MKT 4443 International Marketing Assignment Your Section Your Name Your LSU ID Your Title 1a 5 pts What major global marketing issues does the article discuss 1b 5 pts What ideas does the article suggest to address these marketing issues


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.