SABANCI UNIVERSITESI MARKA PRATIGI MASTER PROGRAMI BP 552 ULUSLARARASI MARKALASMA II INTERNATIONAL MARKETING STRATEGY Spring 2018 Professor Attila Yaprak E-mail: attila.yaprak@wayne.edu 0535-361-7471 Office Hours: anytime by appointment TEXT: There is no textbook for this course There is one Harvard Business School case which you can purchase through the HBS Case Clearinghouse website REFERENCE BOOKS AND COURSE MATERIALS ON THE WEB: David A Aaker, Managing Brand Equity: Capitalizing on the Value of a Brand Name, (the Free Press, New York), 2001 S Tamer Cavusgil, G Knight, J Riesenberger, and A.Yaprak, Conducting Market Research for International Business, (Business Expert Press), 2009 C Samuel Craig and Susan P Douglas, International Marketing Research, 3rd Ed., (John Wiley and Sons Publishers, West Sussex, England), 2005 M Demirbag and A.Yaprak, Handbook of Emerging Market Multinational Corporations (Edward Elgar Publishers, Cheltenham, UK), 2015 Clotaire Rapaille, The Culture Code: An Ingenious Way to Understand Why People Around the World Live and Buy as They Do (Broadway Books, New York, New York), 2006 SCHOLARLY JOURNALS AND PERIODICALS RELEVANT TO THE COURSE CONTENT: Journal of International Business Studies, Journal of Marketing, Journal of the Academy of Marketing Science, Journal of International Marketing, Harvard Business Review, International Journal of Research in Marketing, Journal of Business Research, Business Week, The Wall Street Journal, The Economist COURSE OBJECTIVES AND CENTRAL THEME: BP 552 Brand Practice II is a problem-solving-oriented marketing course designed for graduate students who expect to undertake marketing assignments as part of their career paths to management in multinational, global, and internationalizing enterprises My objective in this course is to present a systematic application of strategic marketing in the global environment To achieve this objective, I present an integrated treatment of conceptual and managerial issues in contemporary international marketing based on the state-of-the-art research in the field The focus is on the formulation of comprehensive marketing strategies by multinationals from developed economies, such as the United States, but also from emerging economies, such as India and China competing in global industries An extension to the BP 552 I course (Fall term), this course is designed to provide an appreciation for crossfunctional and interdisciplinary perspectives This is because today’s global operations increasingly require these proficiencies in managing core business processes For example, product development teams today include managers from finance and engineering, even from anthropology and sociology, in addition to marketing They also include professionals from multiple national cultures, such as British, and German engineers working with American anthropologists and demographers on new car projects at internationalizing firms In this course, you will develop the skills necessary to recognize, analyze, and evaluate the unique marketing problems encountered in global marketing operations You will develop these skills through integrative themes I have built into the course content International marketing is, in both its theory and its practice, a crossfunctional and interdisciplinary phenomenon It requires, and in turn facilitates, the development of interdisciplinary and cross-functional skills The internalization of these skills leads to the development of a global orientation that is culturally sensitive and strategic in practice, but based on theory For instance, better understanding of the evolution of the new world economic order and the roles that anthropology, sociology, politics, legal traditions, the arts, and societal values play on global business help foster greater appreciation for the interdisciplinary nature of global operations Thus, I have designed the course so that you will learn about: Globalization and its impact on marketing in the new world economy Building global market participation and localizing marketing activities effectively Designing and marketing global products and services based on market research Designing a global marketing strategy and executing it effectively Conducting cross-national consumer behavior analyses based on market research Rationalizing the firm’s global value chain to more effectively compete worldwide, and Coping with the unique marketing challenges firms are facing today in emerging markets I hope that while in the course you will also (a) reinforce the learning you have acquired in other courses as you apply their concepts and tools in global marketing contexts; (b) acquire new knowledge about the tools and frameworks needed for entering into, and expanding from foreign markets; and, (c) learn about selected countries and cultures of the world along with learning about the behavior of their businesses I have built the course around the central theme that developing and sustaining a superior value proposition and delivering it effectively to customers worldwide is the key to creating value for the firm in its global markets Our premise is that due to the confluence of globalization and technology, customers today are becoming increasingly sophisticated, their preferences and expectations are constantly changing, and new opportunity segments are evolving around the globe To compete effectively in this world, the global business must learn to provide superior value to customers worldwide through attracting and retaining a loyal customer base Thus, the course is built around the premise that competing successfully in the global environment will require that managers excel in identifying and serving market opportunities effectively and are able to create and sustain operational capabilities and relationship networks with partners in both inside and outside the firm COURSE PEDAGOGY, RESOURCES AND GRADING: The course is designed to help students develop two sets of skills: problem solving in global marketing contexts and conceptual understanding from the literature of the field To help achieve this, I teach the course in a lecture, case analysis, and literature discussion format While the lectures present key concepts in global strategic thinking, case analyses sharpen students’ skills in analytical problem-solving situations Literature discussions are key in internalizing salient content knowledge from the conceptual foundations of international marketing Given our twin foci on decision-making and literature discussions, the course is very demanding in terms of student input That is, in addition to the analyses of decision making in the firm’s product/market strategy contexts, the course also addresses underlying literature themes such as those in cross-national consumer behavior, marketing in emerging markets, international branding, and globalization of products and consumers Critiques of the recommended readings and the cases, often completed in groups, help students question the findings of frontier knowledge in the field This blended approach is meant to facilitate deeper understanding and tighter integration of the underlying themes and analytical tools used in international marketing management Intellectual involvement is, therefore, a key ingredient in effective learning in the course As graduate students, you should be consulting many digital resources Among these, perhaps the best resource is Michigan State University CIBER’s website (http://globalEDGE.msu.edu) Through this international business library you can access international business periodicals, conduct industry or firm-specific research, gather information about specific markets, and discover both public and private sources of information about international business There are other sources you might find useful in working on projects in this course and in your professional lives now and in the future These include country-level, trade and investment-focused, industry-level, and firm-specific data, as well as the ocean of literature on international marketing problems I can make these available to you if you ask for them Your course grade, composed of 280 points, will be a function of your performance in the following: (1) One case analysis, Colgate Max Fresh, 10-15 pages (100 points), written individually or as a member of a group, due on May 1, 2018 Members of the group receive the same grade My expectations from case analyses are detailed in the Case Analysis Guide documents I have shared with you (2) A take-home course exam based on class discussion and readings, due on May 8, 2018 (120 points) (3) Involvement, which includes regular attendance, meaningful contribution to class discussion, and demonstrated interest in the course (60 points) As class participation leads to significant cross-fertilization of ideas, regular attendance is required You are allowed to miss class once without penalty, but additional misses, whatever the reason, will result in a 10-point deduction from your involment grade I not allow the use of laptop computers and other electronic devices, such as cellphones and textmessaging, while I am teaching I will scale the course grade as follows (curving if necessary, and assigning + and – grades): 90% and above = A; 80%-89% = B; 70%-79% = C; 60%-69% = D; and 60% and below = F Samples of cases, exams, and term projects are available in my office for you to review, should you wish to so I will give withdrawals and incompletes only in extraordinary, health-related circumstances I will apply the University’s policies on plagiarism and other ethical misconduct As always, you will get out of the course what you put into it ! Active participation, listening, and critical thinking are essential skills in the course Debating the merits of your classmates’ ideas objectively, and challenging their interpretations and defending your points of view will lead to a clearer understanding of the problem at hand, the merits of alternative courses of action, and the syntheses of ideas that are being considered You should view our classroom as your intellectual playground where we explore and debate ideas and concepts so that you can discover new knowledge and rediscover your own capabilities You should bring your work experience to our class discussions, as sharing your experience with your classmates will be invaluable in complementing our case analyses, lectures, and literature discussions COURSE CONTENT AND ORGANIZATION (with tentative dates): I Understanding World Markets via Marketing Research (April 3, 5, 7.1 and 7.2) Assessing product/market potential through research; the research process and methods and analysis in crossnational market research; coping with measurement problems in research; managing global marketing research activities; interpreting research results accurately through establishing reliability and validity in research Focus on selected statistical techniques used in research (Multiple Regression, Factor Analysis, Discriminant Analysis, Multidimensional Scaling, Canonical Analysis, if time permits) II Understanding World Markets via Cross-National Consumer Behavior (April and 10) Focus on consumer identity: the roles of Consumer Ethnocentrism, Consumer Cosmopolitanism, Consumer Affinity, Xenocentrism, Animosity, National Identity, Consumer Disidentification, Gender Roles, Religiosity, Morality, Pro-social Behavior, Global Consumption Orientation, and Accultration to Global Consumption Culture on purchase behavior; market clustering; ethnographic and positivist research traditions on culture study III Formulating a Global Marketing Strategy via Segmentation and Global vs Local Branding (April 12) Global demographics, psychographics, and behavioral consumption patterns; methods of cross-national segmentation, identity, the self concept and emotions in understanding consumer behavior; attitude, belief, and value structures in societies; individual and national cultural antecedents of consumer innovativeness; the role of product and country images in purchase behavior; global branding strategy and brand rollouts Colgate Max Fresh: Global Brand Rollout Case Study Questions What think of the CMF launch in the United States? Was the choice of Mexico and China as the next countries in which to launch after the US a good one? How should CP prioritize the additional countries in the CMF rollout? Were CP China’s changes to the CMF marketing launch program justifiable? What you think of the global roll-out of CMF? Did CP Mexico manage its CMF launch better than CP China? What are the standardization vs adaptation, STP, competition, global rollout, and marketing strategy issues (ie, the marketing investment vs the marginal market share gained, etc) issues in the case? What are the costs and benefits of adaptation? What are they for standardization? What are Burton’s roles and responsibilities in the entire launch process? What are those of the country managers? Would you change any of these if you were the CP CEO? Course Reading List On Culture and Identity H R Markus and S Kitayama (1991), “Culture and the Self: Implications for Cognition, Emotion, and Motivation”, Psychological Review, 98, 2, 224-253 K Leung, et al (2005), “Culture and International Marketing: Recent Advances and their Implications for Future Research”, Journal of International Business Studies, 36, 357-378 A Yaprak (2008), “Culture Study in International Marketing: A Critical Review and Suggestions for Future Research”, International Marketing Review, 25, 2, 215-229 T Lenartowicz and K Roth (2001), “Does Subculture within a Country Matter? A Cross-Cultural Study of Motivational Domains in Brazil”, Journal of International Business Studies, 32, 2, 305-325 C M Vauclair and R Fischer (2011), “Do Cultural Values Predict Individuals’ Moral Attitudes? A CrossCultural Multilevel Approach”, European Journal of Social Psychology, 41, 645-657 C M Vauclair, M Wilson, and R Fischer (2014), “Cultural Conceptions of Morality: Examining Laypeople’s Associations of Moral Character”, Journal of Moral Education, 43, 1, 54-74 Americus Reed, M R Forehand, s Puntoni, and L Warlop (2012), “Identity-based Consumer Behavior”, International Journal of Research in Marketing, 29, 310-321 Daphna Oyserman (2007), “Social Identity and Self-Regulation”, in A W Kruglanski and E T Higgins, Eds, Social Psychology: Handbook of Basic Principles, 2nd Ed, Guilford Press: New York Daphna Oyserman (2014), “Identity-based Motivation”, in Emerging Trends in the Behavioral and Social Sciences, R Scott (Ed), Wiley Press Dapha Oyserman, K Elmore, and G Smith (2012), “Self, Self-Concept and Identity”, in Handbook of Self and Identity, 2nd Ed, Mark Leary and June Price Tangney, Eds, Guilford Press: New York, 69-104 Daphna Oyserman (2009), “Identity-Based Motivation: Implications for Action-readiness, Proceduralreadiness, and Consumer Behavior”, Journal of Consumer Psychology, 19, 250-260 Yinlong Zhang and Adwait Khare (2009), “The Impact of Accessible Identities on the Evaluation of Global vs Local Products”, Journal of Consumer Research, 36 (October), 524-537 Lingjiang Tu, Adwait Khare, and Yinlong Zhang (2012), “A Short 8-item Scale for Measuring Consumers’ Local-Global Identity”, International Journal of Research in Marketing, 29, 35-42 M Joseph Sirgy (1982), “Self-Concept in Consumer Behavior: A Critical Review”, Journal of Consumer Research, (December), 287-300 Russell W Belk (1988), “Possessions and the Extended Self”, Journal of Consumer Research, 15 (Sept), 139168 Hubert J M Hermans and Giancarlo Dimaggio (2007), “Self, Identity, and Globalization in times of Uncertainty: A Dialogical Analysis”, Review of General Psychology, 11, 1, 31-61 Robert J Liebler and Ruth E Weisberg (2002), “Globalization, Culture, and Identities in Crisis”, International Journal of Politics, Culture, and Society, 16, (Winter), 273-296 On Values and Values-Based Market Segmentation Carlos J Torelli, Aysegul Ozsomer, S W Carvalho, H T Keh, and N Maehle (2012), “Brand Concepts as Representations of Human Values: Do Cultural Congruity and Compatibility between Values Matter?”, Journal of Marketing, 76 (July), 92-108 Shalom H Schwartz (1992), “Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries”, Advances in Experimental Social Psychology, 25, 1-65 Shalom H Schwartz (1999), “A Theory of Cultural Values and Some Implications for Work”, Applied Psychology: An International Review, 48, 1, 23-47 Shalom H Schwartz and K Boehnke (2004), “Evaluating the Structure of Human Values with Confirmatory Factor Analysis”, Journal of Research in Personality, 38, 230-255 W Kamakura and T P Novak (1992), “Value System Segmentation: Exploring the Meaning of LOV”, Journal of Consumer Research, 19, 3, 119-132 R Inglehart and W Baker (2000), “Modernization, Cultural Change, and the Persistence of Traditional Values”, American Sociological Review, 65, 1, 19-51 On Cross-National Consumer Behavior Constructs and their use in Marketing P Sharma (2015), “Consumer Ethnocentrism: Reconceptualization and Cross-Cultural Validation”, Journal of International Business Studies, 46, 381-389 N.T Siamagka and G Balabanis (2015), “Revisiting Consumer Ethnocentrism: Review, Re-conceptualization, and Empirical Testing”, Journal of International Marketing, 23, 3, 66-86 Alexander Josiassen (2011), “Consumer Disidentification and its Effects on Domestic Product Purchases: An Empirical Investigation in the Netherlands”, Journal of Marketing, 75 (Mar), 124-140 Ulf Hannerz (1990), “Cosmopolitans and Locals in World Culture”, Theory, Culture, and Society, 7, 2, 237-251 F Bartsch, P Riefler, and A Diamantopoulos (2015), “A Taxonomy and Review of Positive Consumer Dispositions toward Foreign Countries and Globalization”, Journal of International Marketing, 23, 4, 82-110 Katharina P Zeugner-Roth, V Zabkar, and A Diamantopoulos (2015), “Consumer Ethnocentrism, National Identity, and Consumer Cosmopolitanism as Drivers of Consumer Behavior: A Social Identity Theory Perspective”, Journal of International Marketing, 23, 2, 25-54 Petra Riefler, A Diamantopoulos, and J Siguaw (2012), “Cosmopolitan Consumers as a Target Group for Segmentation”, Journal of International Business Studies, 43, 285-305 Petra Riefler (2012), “Why Consumers not like Global Brands: the Role of Globalization Attitude, GCO, and Global Brand Origin”, International Journal of Research in Marketing, 29, 25-34 Eva Oberecker and A Diamantopoulos (2011), “Consumers’ Emotional Bonds with Foreign Countries: Does Consumer Affinity Affect Behavioral Intentions?”, Journal of International Marketing, 19, 2, 45-72 Y Xie, R Batra, and S Peng (2015), “An Extended Model of Preference Formation between Global and Local Brands: The Roles of Identity Expressiveness, Trust, and Affect”, Journal of International Marketing, 23, 1, 5071 Georgios Halkias, V Davvetas, and A Diamantopoulos (2016), “The Interplay between Country Stereotypes and Perceived Brand Globalness/Localness as Drivers of Brand Preference”, Journal of Business Research (in press) Stanford A Westjohn and Peter Magnusson (2011), “Theory of the Global Consumer” in Handbook of International Marketing, S Jain and D A Griffith, Eds, Edward Elgar Publishers, 317-332 Standord A Westjohn, N Singh, and P Magnusson (2012), “Responsiveness to Global and Local Consumer Culture Positioning: A Personality and Collective Identity Perspective”, Journal of Internatinal Marketing, 20, 1, 58-73 Mark Cleveland, S Erdogan, G Arikan, and T Poyraz (2011), “Cosmopolitanism, Individual-level Values and Cultural-level Values: A Cross-Cultural Study”, Journal of Business Research, 64, 934-943 Meyda J B Steenkamp, F ter Hofstede, and M Wedel (1999), “A Cross-National Investigation into the Individual and National Cultural Antecedents of Consumer Innovativeness”, Journal of Marketing, 63, 2, 55-69 R Batra, et al (2000), “Effects of Brand Local and Nonlocal Origin on Consumer Attitudes in Developing Countries” Journal of Consumer Psychology, 9, 2, 83-95 D Alden, J B Steenkamp, and R Batra (1999), “Brand Positioning through Advertising in Asia, N America, and Europe: the Role of Global Consumer Culture”, Journal of Marketing, 63, 1, 75-87 D Alden, J B Steenkamp, and R Batra (2006), “Consumer Attitudes toward marketplace Globalization: Structure, Antecedents, and Consequences”, International Journal of Research in Marketing, 23, 227-239 K Helsen, K Jedidi, and W S DeSarbo (1993), “A New Approach to Country Segmentation Utilizing Multinational Diffusion Patterns”, Journal of Marketing, 57, 4, 60-71 S Hassan and L Katsanis (1991), “Identification of Global Consumer Segments: A Behavioral Framework”, Journal of International Consumer Marketing, 3, 2, 11-28 H Cannon and A Yaprak (2002), “Will the Real World Citizen Please Stand Up: the Many Faces of Cosmopolitan Consumer Behavior”, Journal of International Marketing, 10, 4, 30-52 H Cannon and A Yaprak (2011), “Toward a Theory of Cross-National Segmentation”, International Marketing Review, 28, 3, 229-243 Hugh M Cannon and Attila Yaprak (2012), “Cosmopolitanism as a Journey: The Construct and Dynamics of Change”, in Consumer Cosmopolitanism in the Age of Globalization, M Prince (Ed), Business Expert Press, 328 Mark Cleveland and Michel Laroche (2012), “Becoming and Being a Cosmopolitan Consumer” in Consumer Cosmopolitanism in the Age of Globalization, M Prince (Ed), Business Expert Press, 51-99 Mark Cleveland and Michel Laroche (2007), “Accultration to the Global Consumer Culture: Scale Development and Research Paradigm”, Journal of Business Research, 60, 3, 249-259 Mark Cleveland, Michel Laroche, and Nicholas Papadopoulos (2009), “Cosmopolitanism, Consumer Ethnocentrism, and Materialism: An Eight-Country Study of Antecedents and Outcomes”, Journal of International Marketing, 17, 1, 116-146 Mark Cleveland, M Laroche, and R Hallab (2013), “Globalization, Culture, Religion, and Values: Comparing Consumption Patterns of Lebanese Muslims and Christians”, Journal of Business Research, 66, 8, 958-967 N Naseem, S Verma, and A Yaprak (2015), “Global Brand Attitude, Perceived Value, Consumer Affinity, and Purchase Intentions: A Multidimensional View of Consumer Behavior and Global Brands”, Advances in International Marketing, 25, 255-288 D R Forsyth (1980), “A Taxonomy of Ethical Ideologies”, Journal of Personality and Social Psychology, 39, 1, 175-184 J M De Groot and L Steg (2009), “Morality and Prosocial Behavior: The Role of Awareness, Responsibility, and Norms in the Norm Activation Model”, the Journal of Social Psychology, 149, 4, 425-449 Mark Cleveland, M Laroche, and N Papadopoulos (2015), “You are what you Speak: Globalization, Multilinguilism, Consumer Dispositions, and Consumption”, Journal of Business Research, 68, 3, 542-552 Mark Cleveland, N Papadopoulos, and M Laroche (2011), “Identity, Demographics, and Consumer Behavior: International Market Segmentation across Product Categories”, International Marketing Review, 28, 3, 244266 Mark Cleveland, J I Rojas-Mendez, M Laroche, and N Papadopoulos (2015), “Identity, Culture, Dispositions, and Behavior: A Cross-National Examination of Globalization and Culture Change”, Journal of Business Research, 68 Yulia Strizhakova, and Robin Coulter (2013), “The Green Side of Materialism in Emerging BRIC and Developed Markets: The Moderating Role of Global Cultural Identity”, International Journal of Research in Marketing, 30, 1, 69-82 Yulia Strizhakova, Robin Coulter, and L Price (2012), “The Young Adult Cohort in Emerging Markets: Assessing their Glocal Identity in a Global Marketplace”, International Journal of Research in Marketing, 29, 1, 43-54 Lingjiang Tu, A Khare, and Y Zhang (2012), “A short 8-item Scale for Measuring Consumers’ Local-Global Identity”, International Journal of Research in Marketing, 29, 1, 35-42 Yinlong Zhang and A Khare (2009), “The Impact of Accessible Identities on the Evaluation of Global vs Local Products”, Journal of Consumer Research, 36, 3, 524-537 Stanford A Westjohn, M J Arnold, P Magnusson, S Zdravkovic, and J X Zhou (2009), “Technology Readiness and Usage: A Global Identity Perspective”, JAMS, 37, 3, 250-265 S A Westjohn, N Singh, and P Magnusson (2012), “Responsiveness to Global and Local Consumer Culture Positioning: A Personality and Collective Identity Perspective”, Journal of International Marketing, 20, 1, 5873 On Global Brands, Brand Identities, and Global Branding J B Steenkamp, Rajeev Batra, and Dana L Alden (2003), “How Perceived Brand Globalness Creates Brand Value”, Journal of International Business Studies, 34, 53-65 Vasileios Davvetas, C Sichtmann, and A Diamantopoulos (2015), “The Impact of Perceived Brand Globalness on Consumers’ Willingness to Pay”, International Journal of Research in Marketing, 32 Xiaoling Gao (2013), “Living in a Global World: Influence of Consumer Global Orientation on Attitudes Toward Global Brands from Developed vs Emerging Countries”, Journal of International Marketing, 21, 1, 122 Yulia Strizhakova and R Coulter (2015), “Drivers of Local relative to Global Brand Purchases: A Contingency Approach”, Journal of International Marketing, 23, 1, 1-22 Y Strizhakova, R Coulter, and Linda Price (2008), “Branded Products as Passports to Global Citizenship: Perspectives from Developed and Developing Countries”, Journal of International Marketing, 16, 4, 57-85 Y Strizhakova, R Coulter, and L Price (2011), “Branding in the Global Marketplace: the Mediating Effects of Quality and Self-Identity Brand Signals”, International Journal of Research in Marketing, 28, 4, 342-351 On Marketing Mix Elements and their use in International Marketing C A Solberg, B Stoettinger, and A Yaprak (2006), “A Taxonomy of the Pricing Practices of Exporting Firms: Evidence from Austria, Norway, and the United States”, Journal of International Marketing, 14, 1, 23-48 S Dutta, A Yaprak, and D Grewal (2017), “Fairness Perceptions of Retail Price Increases by Foreign and Domestic Brands: the Roles of Ethnocentric Beliefs, Profit Stickiness, and Contextual Information”, Journal of Business Research, 75, 37-45 N Naseem, S Verma, and A Yaprak (2015), “Global Brand Attitude, Perceived Value, Consumer Affinity, and Purchase Intentions: A Multidimensional View of Consumer Behavior and Global Brands”, Advances in International Marketing, 25, 255-288 A Yaprak, B Tasoluk, and C Kocas (2015), “Market Orientation, Managerial Perceptions, and Corporate Culture in an Emerging Market: Evidence from Turkey”, International Business Review, 24, 443-456 Have a wonderful life filled with good health and much happiness! ... Behavior”, Journal of International Marketing, 10, 4, 30- 52 H Cannon and A Yaprak (20 11), “Toward a Theory of Cross-National Segmentation”, International Marketing Review, 28 , 3, 22 9 -24 3 Hugh M Cannon... Marketing Review, 25 , 2, 21 5 -22 9 T Lenartowicz and K Roth (20 01), “Does Subculture within a Country Matter? A Cross-Cultural Study of Motivational Domains in Brazil”, Journal of International Business... Self: Implications for Cognition, Emotion, and Motivation”, Psychological Review, 98, 2, 22 4 -25 3 K Leung, et al (20 05), “Culture and International Marketing: Recent Advances and their Implications