Fifth Edition GLOBAL MARKETING - GBV

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Fifth EditionGLOBAL MARKETINGA DECISION-ORIENTED APPROACHSvend Hollensen

CONTENTSPrefaceGuided tourAcknowledgementsPublisher's acknowledgementsAbbreviationsAbout the authorPARTIXVIXXXxxxivxxxvixlixlivTHE DECISION WHETHER TO INTERNATIONALIZEsj152Global marketing in the firmLearning objectives1.1 Introduction to globalization1.2 The process of developing the global marketing plan1.3 Comparison of the global marketing and management style of SMEs and LSEs1.4 Should the company'stay at home'or'go abroad'?1.5 Development of the global marketing concept1.6 Forces for global integration and market responsiveness1.7 The value chain as a framework for identifying international competitive advantage1.8 Value shop and the service value chain1.9 Information business and the virtual value chain1.10 SummaryCase studies1.1 Build-A-Bear Workshop (BBW): how to manage the global comeback?1.2 Arcor: a Latin American confectionery player is globalizing its business1.3 Video case study: NiveaQuestions for itiation of internationalization49Learning objectives2.1 Introduction2.2 Internationalization motives2.3 Triggers of export initiation (change agents)2.4 Internationalization barriers/risks2.5 Summary.Case studies2.1 LifeStraw: Vestergaard-Frandsen transforms dirty water into clean drinking water2.2 Elvis Presley Enterprises Inc. (EPE): internationalization of a cult icon2.3 Video case study: TOMS ShoesQuestions for discussionReferences4950505761656568697070

i Viii SvCONTENTSy3Internationalization theories71Learning objectives3.1 Introduction3.2 The Uppsala internationalization model3.3 The transaction cost analysis model3.4 The network model3.5 Internationalization of SMEs3.6 Born globals3.7 Internationalization of services3.8 SummaryCase studies7172747780848790953.1 Cryos: they keep the stork busy around the world3.2 Classic Media: internationalization of Postman Pat3.3 Video case study: ReebokQuestions for discussionReferences.49699100101101Development of the firm's international competitivenessLearning objectives4.1 Introduction4.2 Analysis of national competitiveness (the Porter diamond)103103104104-4.3 Competition analysis in an industry4.4 Value chain analysis4.5 The sustainable global value chain - CSR4.6 CSR and international competitiveness4.7 The value net4.8 Blue ocean strategy and value innovation4.9 SummaryCase studies1091141231241261261314.1 Nintendo Wii: Nintendo's Wii takes first place on the world market - can it last?1324.2 Senseo: creating competitiveness through an international alliance1374.3 Video case study: Nike.143Questions for discussion143References143Parti Case studies1.11.21.31.4PART IIZara: a Spanish retailer goes to the top of world fashionManchester United: still trying to establish a global brandBridgestone Tyres: European marketing strategyCereal Partners Worldwide (CPW): the number 2 world player is challengingthe number 1 - KelloggDECIDING WHICH MARKETS TO ENTERGlobal marketing researchLearning objectives5.1 Introduction5.2 The changing role of the international researcher5.3 Linking global marketing research to the decision-making process5.4 Secondary research5.5 Primary research146152155:162171173173174174175177181

CONTENTS5.6 Other types of marketing research5.7 Setting up an international MIS5.8 SummaryCase studiesj1931971985.1TeepackJSpezialmaschinen GmbH: organizing a global survey ofcustomer satisfaction5.2 Tchibo: expanding the coffee shops' business system in Eastern Europe5.3 Video case study: ZibaQuestions for discussionReferences6The political and economic environment199200201201202203Learning objectives6.1 Introduction6.2 The political/legal environment6.3 The economic environment6.4 The European economic and monetary union and the euro6.5 Poverty as a market opportunity6.6 SummaryCase studiesG-20 and the economic and financial crises: what on earth is globalizationabout? Massive protests during a meeting in London 20096.2 Sauer-Danfoss: which political/economic factor would affect a manufacturer ofhydraulic components?6.3 Video case study: debate on globalizationQuestions for discussionReferences2032042042132192242276.17The sociocultural environmentLearning objectives7.1Introduction7.27.37.47.57.67.7 Layers of cultureHigh- and low-context culturesElements of cultureHofstede's original work on national cultures (the '4 1' dimensions model)The strengths and weaknesses of Hofstede's modelManaging cultural differencesLifan: a Chinese sub-supplier and brand manufacturer of motorcycles isaiming at the global market7.2 IKEA catalogue: are there any cultural differences?7.3 Video case study: communicating in the global worldQuestions for discussionReferences8The international market selection process2302312322322337.8 Convergence or divergence of the world's cultures7.9 The effects of cultural dimensions on ethical decision-making7.10 Social marketing7.11 SummaryCase 54256258258259260Learning objectives8.1 Introduction2602618.2261International market selection: SMEs versus LSEs

CONTENTS8.3 Building a model for international market selection8.4 Market expansion strategies8.5 The global product/market portfolio8.6 SummaryCase studies8.1 Tata Nano: international market selection with the world's cheapest car8.2 Philips Lighting: screening markets in the Middle East8.3 Video case study: HasbroQuestions for t II Case studies11.111.211.311.4PART HIBajaj Auto: the Indian motorcycle manufacturer internationalizes its businessThe Female Health Company (FHC): the female condom is seeking a footholdin the world market for contraceptive productsTipperary Mineral Water Company: market selection inside/outside EuropeSkagen Designs: becoming an international player in designed watchesMARKET ENTRY STRATEGIES9296300304309315Some approaches to the choice of entry mode319Learning objectives9.1 Introduction9.2 The transaction cost approach9.3 Factors influencing the choice of entry mode9.4 SummaryCase studies9.1 Jarlsberg: the king of Norwegian cheeses is deciding about entry modesin new markets9.2 Ansell condoms: is acquisition the right way to gain market shares in theEuropean condom market?9.3 Video case study: understanding entry modes into the Chinese marketQuestions for discussionReferences31932032032132710 Export modesLearning objectives10.1 Introduction10.2 Indirect export modes10.3 Direct export modes10.4 Cooperative export modes/export marketing groups10.5 SummaryCase studies10.1 Lysholm Linie Aquavit: international marketing of the Norwegian Aquavit brand10.2 Parle Products: an Indian biscuit manufacturer is seeking agents andcooperation partners in new export markets10.3 Video case study: Honest TeaQuestions for 348349350352353354354

CONTENTS11 Intermediate entry modes( Xi }355Learning objectives11.1 Introduction11.2 Contract manufacturing11.3 JJcensing11.4 Franchising11.5 Joint ventures/strategic alliances11.6 Other intermediate entry modes11.7 SummaryCase studies11.1 Hello Kitty: can the cartoon cat survive the buzz across the world?35535635635836136637537911.2 Ka-Boo-Ki: licensing in the LEGO brand11.3 Video case study: MarriottQuestions for discussionReferences38238338438412 Hierarchical modes379385Learning objectives12.1 Introduction12.2 Domestic-based sales representatives12.3 Resident sales representatives/foreign sales branch/foreign sales subsidiary12.4 Sales and production subsidiary12.5 Subsidiary growth strategies12.6 Region centres (regional headquarters)12.7 Transnational organization12.8 Establishing wholly owned subsidiaries: acquisition or greenfield12.9 Location/relocation of HQ12.10 Foreign divestment: withdrawing from a foreign market12.11 SummaryCase 2399Polo Ralph Lauren: Polo moves distribution for South East Asia in-houseDurex condoms: SSL will sell Durex condoms in the Japanese marketthrough its own organization12.3 Video case study: StarbucksQuestions for discussionReferences40240340340413 International sourcing decisions and the role of the sub-supplier405Learning objectives13.1 Introduction13.2 Reasons for international sourcing13.3 A typology of 5416Buyer-seller interactionDevelopment of a relationshipReverse marketing: from seller to buyer initiativeInternationalization of subcontractors13.8 Project export (turnkey contracts)13.9 SummaryCase studies41942013.1 Syngenta AG: a world market leader in crop protection is defending its position13.2 LM Glasfiber A/S: following its customers' international expansion in the windturbine industry421425

/\XiiCONTENTS13.3 Video case study: Eaton CorporationQuestions for discussionReferences427AT?428Part III Case studies111.1Raleigh bicycles: does the iconic bicycle brand still have a chance onthe world market?111.2 IKEA: expanding through franchising to the South American market?111.3 Autoliv airbags: transforming Autoliv into a global company111.4 IMAX Corporation: globalization of the film businessPART IV DESIGNING THE GLOBAL MARKETING PROGRAMME42943544244745314 Product decisions459Learning objectives14.1 14.1014.11460460465471477480481490493The dimensions of the international product offerDeveloping international service strategiesThe product life cycle'New products for the international marketProduct positioningBrand equityBranding decisionsSensory brandingCelebrity brandingImplications of the Internet for the collaboration with customers on productdecisions49514.12 'Long tail'strategies14.13 Green marketing strategies, 14.14 Brand piracy and anti-counterfeiting strategies14.15 SummaryCase studies14.1 Danish Klassic: launch of a cream cheese in Saudi Arabia14.2 Zippo Manufacturing Company: has product diversification beyond the lightergone too far?50150250750814.3 Video case study: Swiss ArmyQuestions for discussionReferences51351451415 Pricing decisions and terms of doing business508512517Learning objectives15.1 Introduction15.2 International pricing strategies compared with domestic pricing strategies15.3 Factors influencing international pricing decisions15.4 International pricing strategies15.5 Implications of the Internet for pricing across borders15.6 Terms of sale and delivery51751851851852253653715.7 Terms of payment15.8 Export financing15.9 Summary538542544

CONTENTSCase studies15.1 Harley-Davidson: does the image justify the price level?15.2 Gillette Co.: is price standardization possible for razor blades?15.3 Video case study: Vaseline pricing strategyQuestions[oj,discussionReferences'16 Distribution decisions: xiii ;545546546548549550Learning objectives16.1 Introduction16.2 External determinants of channel decisions16.3 The structure of the channel16.4 Managing and controlling distribution channels16.5 Managing logistics16.6 Implications of the Internet for distribution decisions16.7 Special issue 1: international retailing16.8 Special issue 2: grey marketing (parallel importing)16.9 SummaryCase studies55055155255455756256856957557716.1 De Beers: forward integration into the diamond industry value chain16.2 Nokia: what is wrong in the US market for mobile phones - can Nokiarecapture the number 1 position from Motorola?16.3 Video case study: DHLQuestions for discussionReferences57717 Communication decisions (promotion strategies)580583583584585Learning objectives58517.1 Introduction17.2 The communication process,17.3 Communication tools17.4 International advertising strategies in practice17.5 Online communication decisions: viral marketing and social networking17.6 SummaryCase studies17.1 HellyHansen: sponsoring fashion clothes in the US market17.2 Morgan Motor Company: can the British retro sports car brand still besuccessful after 100 years?17.3 Video case study: BMW MotorcyclesQuestions for discussionReferences586586589606611618Part IV Case studiesIV. 1 Absolut Vodka: defending and attacking for a better position in the globalvodka marketIV.2 Guinness: how can the iconic Irish beer brand compensate for declining sales619621624624625626626in the home market?Dyson Vacuum Cleaner: shifting from domestic to international marketing with633IV.3the famous bagless vacuum cleanerTriumph Motorcycles Ltd: rising from the ashes in the international motorcycle641IV.4business648

Xiv ICONTENTSPARTVIMPLEMENTING A N D COORDINATING THE G L O B A LMARKETING P R O G R A M M E18 Cross-cultural sales negotiationsLearning objectives18.1 Introduction18.2 Cross-cultural negotiations18.3 Intercultural preparation18.4 Coping with expatriates18.5 Knowledge management and learning across borders18.6 Transnational bribery in cross-cultural negotiations18.7 SummaryCase studies655657.65765865966967067267667718.1 Mecca Cola: marketing of a 'Muslim' cola to the European market18.2 TOTO: the Japanese toilet manufacturer seeks export opportunities for itshigh-tech brands in the United States18.3 Video case study: Dunkin' DonutsQuestions for discussionReferences ,67868068168268219 Organization and control of the global marketing programme684Learning objectives19.1 Introduction19.2 Organization of global marketing activities19.3 The global account management organization19.4 Controlling the global marketing programme19.5 The global marketing budget19.6 The process of developing the global marketing plan68468568569070270871119.7 SummaryCase studies71119.1 Mars Inc.: merger of the European food, pet care and confectionery divisions19.2 Henkel: should Henkel shift to a more customer-centric organization?19.3 Video case study: McDonald'sQuestions for discussionReferences712713716716717PartV Case studiesV.1718V.2Sony Music Entertainment: new worldwide organizational structure and themarketing, planning and budgeting of Pink's new albumOneCafe: a'born global'penetrates the coffee industryV.3V.4Philips Shavers: maintaining shaving leadership in the world marketVipp AS: an SME uses global branding to break into the international waste727bin business735Index718723739

1 Global marketing in the firm 5 Learning objectives 5 1.1 Introduction to globalization 6 1.2 The process of developing the global marketing plan 6 1.3 Comparison of the global marketing and management style of SMEs and LSEs 7 1.4 Should the company'stay at home'or'go abroad'? 17 1.5 Development of the global marketing concept 19

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