Ebook Global marketing: Foreign entry, local marketing, global management (Fifth edition) – Part 2

Ebook Global marketing: Foreign entry, local marketing, global management (Fifth edition) – Part 2 includes contents: Chapter 7: Understanding local customers; Chapter 8: Local marketing in mature markets; Chapter 9: Local marketing in new growth markets; Chapter 10: Local marketing in emerging markets; Chapter 11: Global marketing strategy; Chapter 12: Global products and services; Chapter 13: Global branding; Chapter 14: Global pricing;... Đề tài Hoàn thiện công tác quản trị nhân sự tại Công ty TNHH Mộc Khải Tuyên được nghiên cứu nhằm giúp công ty TNHH Mộc Khải Tuyên làm rõ được thực trạng công tác quản trị nhân sự trong công ty như thế nào từ đó đề ra các giải pháp giúp công ty hoàn thiện công tác quản trị nhân sự tốt hơn trong thời gian tới.

joh81012_ch07_205-236 8/28/08 8:07 PM Page 205 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Part Local Marketing In Part Two, Foreign Entry, we focused on how the firm establishes its presence in foreign countries Part Three now looks at the local marketing activities in the new countries The marketer is no longer at headquarters but located abroad This shift has several important consequences First, the marketer must analyze and segment markets, manage distribution channels, position products and services, develop effective promotions, capture market share, and increase sales Even though the main strategic objective of the firm’s presence in the country might be to check competition, monitor leading customers, or cross-subsidize a business elsewhere, the marketing job is still to be as successful as possible within the corporate constraints Second, the marketer must learn more about the environmental factors, as the political, financial, and legal restrictions on business can create unforeseen headaches Also, the social and cultural networks among customers and competitors work in new and mysterious ways The marketing infrastructure has developed under different conditions, so that the functions performed by wholesalers, retailers, advertising agencies, and other middlemen may deviate from expectations Co-workers speak a different language, pledge allegiance to their own nation, believe in a different religion, and behave in unfamiliar ways toward each other Third, the focus is no longer on national boundaries The local marketer is now concerned with the market—and the market may or may not be the same as the nation The market could be larger, a free trade region or geographically close countries, or it could be smaller, ethnic or urban subgroups within a country In our discussion of local marketing in Part Three, the manager will be seen as a marketer who is working within the special constraints created by a new and unfamiliar environment, with an arm’s-length relationship to the home office Chapter presents the conceptual models underlying the marketer’s understanding of customers, how local buyer behavior research can be done, and how segmentation and positioning are affected when new foreign brands enter a local market Chapters 8, 9, and 10 show how the different market environments in maturing, new growth, and emerging economies affect the local marketing effort These chapters deal with strategy formulation, implementation, and execution under quite different conditions joh81012_ch07_205-236 8/28/08 8:07 PM Page 206 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 joh81012_ch07_205-236 8/28/08 8:07 PM Page 207 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Chapter Understanding Local Customers “Buyers everywhere are the same—only different” After reading this chapter, you will be able to: Handle the conceptual rethinking that becomes necessary when trying to understand buyer behavior in a new local market Adapt existing concepts and models of consumer behavior by incorporating new data about the local environment uncovered by marketing research Do local market research with translated questionnaires, controlling for measurement problems, differences in how people respond to surveys, and problems of sample equivalence Tailor the segmentation scheme to the stage of the life cycle and to local attitudes, social norms, and existing loyalties Configure product positioning to account for the possible shifts in the market as the new brand enters Ultimately, customers in different places may want the same basic things, but specifically, their product and service needs and preferences vary considerably The reasons for the variations lie in cultures and socioeconomic and geographic environments, that is, the conditions under which products and services are used and consumed These locational and cultural factors affect buyer behavior directly and they demand a corresponding variety in local marketing activities A good deal of the local marketer’s hard work abroad involves adjusting his or her understanding of what customers specifically want as well as of how and why customers and competitors behave as they This adjustment of one’s understanding is not a matter of acquiring advanced marketing skills but of stretching basic conceptual skills To the extent they are relevant and applicable, most of the technical marketing skills required in a local market are very similar to those at home This chapter will not deal extensively with those On the other hand, there are sophisticated conceptual skills needed, especially when the local market is a leading market To understand customers and competitors, the local marketing manager needs to develop a “theory” of what motivates the people As a start, it is useful to look back at relatively simple models of buyer behavior—stages of consumer decision making, how information is processed by consumers, what external influences play a role in buying decisions, and how the individual buyer handles risktaking—and reevaluate the assumptions underlying these models Such conceptual rethinking requires a stretch of the imagination and constitutes part of the learning that goes into marketing abroad The local marketer abroad will develop larger conceptual skills, fresh ways of thinking about marketing, which in the future can be usefully 207 joh81012_ch07_205-236 8/28/08 8:07 PM Page 208 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 208 Part Three Local Marketing applied in other parts of the world Again, significant features of buyer behavior in the home market will also be better understood when contrasted against buyer behavior in other countries Disneyland Paris Tries to Rekindle Marketing Magic Just a year and a half after opening its gates in 1992, the EuroDisney theme park situated at Marne-La-Vallee just outside Paris was teetering on the brink of bankruptcy The company reported disappointing revenues and an unexpected $900 million loss for its first full year of operation Unless it could negotiate financial help from its creditor banks and parent Walt Disney Company, EuroDisney would have to shut down What went wrong? At one point, EuroDisney seemed to be a promising concept: Based on Disney’s success in Japan and North America, the company’s theme park concept seemed to have worldwide appeal However, park attendance at EuroDisney was less than expected, and the visitors who came did not spend much money Perhaps most devastating to EuroDisney’s bottom line was that the resort had constructed too many hotel rooms Tourists did not book rooms for visits to the park as expected Disney responded by gradually modifying its marketing approach, renegotiating the financial package, and changing the way it treated its employees For example, the familiar “Disney culture” was relaxed to fit the local culture and the expectations of the European managers and workers The French “cast” (Disney employees) did not take lightly to the idea of being lectured about personal grooming, what makeup to use, and what clothes to wear even coming and going to work, as they felt such demands were tantamount to invasion of privacy And European middle managers cared more about prestige and status than the democratic ideals of American management For these reasons, Disney eased up on its strict behavioral code Other changes involved adaptation of the “product.” For instance, the French—over one-third of EuroDisney’s visitors—expect wine with their lunch, so the park loosened Disney’s no-alcohol policy And contrary to the relaxed eating habits of snacking Americans, the French visitors expected their lunch promptly at p.m., causing long lines and some frustration So, the park opened additional restaurants to accommodate local tastes and habits In addition, EuroDisney invested in a spectacular new ride, the Space Mountain roller coaster, reportedly the fastest Disney attraction in the world, to generate excitement and lure new visitors EuroDisney also set more affordable prices—up to 20 percent less for tickets, food, and hotel rooms A major change was a 1996 decision to disassociate the park from the “Euro” name The Euro connotation had grown stale from overuse in various media and even turned negative as nationalist sentiments surfaced Instead, Disney opted for a Frenchified institution One move was to rename the park Disneyland Paris, drawing on the success with Tokyo Disneyland in Japan and doing away with all references to Euro Another significant move was the release of a successful film adaptation of the Victor Hugo classic, The Hunchback of Notre Dame Produced as the typical Disney cartoon, the feature-long film became a worldwide hit, and the French theme was emphasized in cross-marketed merchandise from the film In addition, the traditional daily parade down “Main Street” in the Disneyland Paris park was changed to feature characters, music, and songs from the movie Naturally, the Frenchification also included considerable upgrades in the park’s restaurants and menus and the Parisian (and Parisienne) visitor can now enjoy a truly French meal in the park, with accompanying fine wines and high prices joh81012_ch07_205-236 8/28/08 8:07 PM Page 209 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Chapter Understanding Local Customers 209 Disneyland Paris has kept improving, adapting, and expanding its product line One recent effort involves building a small town at the Val d’Europe location, to accommodate employees and visitors, but primarily to attract French families with attractive and affordable housing The town square is a replica of the famous square in Lucca, Tuscany, and the houses are modeled on Regents Park houses in London Streets are lined with well-groomed trees and flowers The town and the homes are Disney’s version of a traditional European town, complete with modern facilities and conveniences Despite the efforts, success continues to be elusive And even though the experiences in France were helpful in creating Disneyland Hong Kong, opened in 2005, the differences between France and China were great enough to raise a host of new problems Everybody loves Mickey, sure, but maybe not everybody wants to pay the price Sources: Roger Cohen, “Euro Disney ’93: $90 Million Loss,” New York Times, November 11, 1993, p D4; Nathaniel C Nash, “Euro Disney Reports Its First Profits,” New York Times, July 26, 1995, p D3; David Churchill, “Disney Shows How It Is Done,” The Sunday Times, January 13, 2002 Damian Barr, “Buyers Flock to Disney’s ’Copycat’ New Town at Val d’Europe, Paris,” The Times, March 28, 2008 Introduction Good marketing basics are good marketing basics everywhere Really, local marketing is no different Understand buyer behavior, treat the customer right, and offer quality that justifies consumer loyalty At the same time, in the local marketing context, offer products and services appropriate to the local usage conditions and that have some local competitive advantage Empathize with the customer’s situation, don’t fight it Fight the headquarters instinct that says, “What we is what they get.” As we have said above, fight the kind of ethnocentric rigid mindset that translates to “since it’s good enough at home, it’s good enough here.” After that, though, it is good to remember that, as we saw in Chapter 3, it is not always true that one has to bend over backward to adapt to local cultural norms, it exactly the way the locals want it, or forget about one’s own heritage or pride in what one’s company produces There are times when breaking such rules is good Foreign companies successful even in idiosyncratic markets warn against overplaying the “cultural sensitivity” theme Offering superior value to customers is as good a plain recipe for success in Asian, Latin American, and European markets as in the United States It is just that what ultimately constitutes “value” may differ depending on actual usage conditions, what functions are really needed, and culturally contingent expectations about performance The diagram in Exhibit 7.1 demonstrates the various forces that need to be assessed when predicting buyer behavior in local markets Apart from culture, other external factors (in the box on the left in the exhibit) are important as well, including economics, technology, and politics These and related external influences determine the overall context in which the buyer makes purchasing decisions This is one’s general knowledge of the country environment The buyer box on the right in Exhibit 7.1 involves the psychological, demographic, and sociological models of man, which underlie marketer analysis of how customers should actually be approached Buyer characteristics, such as personality, age, marital status, and life-cycle stage are internal determinants of behavior and will be useful when segmenting the local market The buyer decision process relates to the way the buyer processes information and makes purchasing decisions, which is a major issue for the local marketer since people’s decision processes vary across markets and cultures This is the stage at which the marketing effort comes into play and can make a difference (see the local marketing effort box and arrow in the exhibit) Finally, as the purchasing decision is made, the firm’s controllable marketing factors (including joh81012_ch07_205-236 8/28/08 8:07 PM Page 210 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 210 Part Three Local Marketing EXHIBIT 7.1 Diagram of Major Factors Influencing Local Buyer Behavior External Influences Buyer Choices “Models of Man” Culture Economics Product choice Buyer characteristics Buyer decision process Brand choice Technology Store choice Politics Supplier choice Local Marketing Effort product design, price, promotion, and distribution) have become important influences on the choices that consumers make This chapter focuses on the middle box in the exhibit, the “models of man” that immediately underlie local buyer decision making and therefore should inform market segmentation and positioning decisions for the local marketer The chapter starts by discussing the typical stages of a buyer decision-making process, and how the local economic and cultural environment changes the way people behave in each stage We then discuss local market research, and review the problems and pitfalls of local buyer behavior research and the changes in approach necessary Then the chapter explains how the entry of a new foreign brand into a local market can affect existing segments and brands’ positioning It demonstrates how the selection of local target segments and product positioning can be adapted to account for the likely shifts in perceptions and preferences when a new brand enters The chapter ends with a section identifying three significantly different market environments (mature, new growth, and emerging markets) and how the local buyer situation and the marketing tasks differ across these markets Buyer Decision Making When analyzing local buyer behavior, the good news is that there is one simple truth about buyer behavior in all markets It is that most people are doing what they for a reason Consumers perceive a link between behavior and desired results Buyers not choose products or services for no reason, even in the most fatalistic of cultures In other words, buyers are goal oriented.1 Thus, if one can find out what people in a local market are trying to achieve, one can start to understand their behavior The local marketer should start by attempting to find out what motivates buyers by asking them what and why they buy, or by observing them buying certain products or choosing certain brands The results of such an investigation are sometimes startling, because of hidden motivators (see box, “Finding the Hidden Motivators”) Given the goal orientation, it is useful to see consumers as conscious decision makers To analyze their decision-making process, an adapted version of the flowchart model of individual consumer decision making first introduced by Engel, Kollat, and joh81012_ch07_205-236 8/28/08 8:07 PM Page 211 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Chapter Understanding Local Customers 211 Getting the Picture FINDING THE HIDDEN MOTIVATORS When Marriott, the American-based hotel chain, opened up a new luxury hotel in Jeddah, Saudi Arabia, it became an instant attraction for local luminaries and international travelers The grandly decorated lobby with its large windows and magnificent entrance drew not only travelers and hotel guests but also local visitors The large number of people crowded in the lobby delayed check-in and check-out operations, and long lines formed in front of the service counter Managers at the Marriott headquarters in the United States soon determined that it was necessary to install the quick check-out system already in place in many of its hotels worldwide, which would allow the guests to leave quickly without waiting in line But when the system was proposed to local management, objections were immediately raised The managers explained that the customers of the new Marriott wanted to spend time in the lobby, to see and be seen, and to enjoy the status it conveyed; the long lines supplied a simple but legitimate reason for doing this It was decided that a more rapid check-out process would be a negative benefit and the proposal was scuttled Source: Bruce Wolff, Vice President of Distribution Sales, Marriott Hotels Blackwell is helpful.2 The authors distinguish between five sequential stages of a consumer decision process (see Exhibit 7.2) This flowchart can be useful to understanding consumers anywhere Buyers uncover needs or problems, look for alternative ways of satisfying their needs (where alternatives are available), evaluate the alternatives against each other, make a choice, and get satisfied or not But local market environments differ, affecting both how these steps are taken and what starts and ends the process The flowchart can’t be applied the same way everywhere Understanding the American consumer of detergents does not mean understanding the German consumer of detergents To paraphrase the Romanian playwright Ionesco, consumers are not always consumers Problem Recognition Problem recognition is what happens when an individual perceives a difference between an ideal and an actual state of affairs The resulting tension generates a motive for the individual to start the buying decision process in order to satisfy the perceived need New products often lead to tension and a recognized “problem,” the way underarm deodorants suggest that “humans smell.” Because the core benefits may differ between local markets, the ability of a product or service to create a problem and satisfy the ensuing need will differ as well The buyer may not perceive the offering as relevant or suitable, and the product will not be considered—the brand will not be included in the evoked set Large, Western-style furniture, for example, is simply not considered in some Asian markets—it is more or less useless for the Asian consumers’ needs in their smaller homes In other cases, the introduction of a new foreign product or service leads to an increased awareness of new possibilities The “ideal state” is changed; the consumer is made aware of the deficiencies of what was available before; the buyer’s aspiration level is raised; and the offering “educates” the consumer The new entry has “created a need,” although one can argue that at some deeper level there was a latent need for this offering EXHIBIT 7.2 Consumer Decision Process Source: Consumer Behavior, Third Edition by James F Engel, David Kollat, and Roger D Blackwell, copyright © 1978 by The Dryden Press, reproduced by permission of the publisher Problem recognition Search Evaluation of alternatives Choice Outcomes joh81012_ch07_205-236 8/28/08 8:07 PM Page 212 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 212 Part Three Local Marketing For the local marketer it is important to recognize that education about the core benefits might be necessary in order to create a demand for the product But such promotion must first ensure that the core benefits are deliverable in the local market To advertise “smooth ride” in a country with no paved roads will backfire This type of consumer education is not only about raising functional performance standards with new products or services It is also about teaching the consumer to make finer distinctions between alternatives These issues become important not only in the “evaluation of alternatives” stage of the decision process but also serve to create the stimulus for problem recognition Increased awareness of what a product or service can deliver—a new shampoo with rinse and conditioning in one, for example—will create new criteria for choice When entering a local market, such “firm-specific advantages” may have to be taught before the consumers recognize that they have a “problem” with their less-advanced existing products This “need-stimulating” aspect of opened-up trade is one reason why foreign products are sometimes viewed by public policy makers as problem creators rather than problem solvers Search The next step in the process, a consumer’s search for alternative ways to solve the problem, is closely related to his or her level of involvement with the product category For products with which involvement is high—because of a large money outlay, interesting products, or high perceived risk—search tends to be more comprehensive and time consuming, although previous experience and brand loyalty can reduce the effort For convenience and habit purchases, the decision process is shorter, with little need for extensive searches or alternative evaluations However, the search intensity is also dependent on the perceived availability of alternatives In markets that have been closed to trade, consumers have had less exposure to alternatives, and then searching for alternative choices has not been worthwhile The motivation to search is low, and the consumers’ incentive to make an effort needs to be stimulated by the new entrant There is often an aversion to innovations in such markets, the old product having a monopolistic advantage the consumer initially assumes is based on true superiority No one really wants to find out that the tea they like so much is really not as good as the new varieties on the market, or that the old beloved manual SLR camera is inferior to a new automatic The introduction of these new versions often needs to be done with a fair amount of persuasion by a credible spokesperson One advantage for products with high global brand awareness is that this initial distrust is easier to overcome In fact research shows that in Internet searches, brands with large market shares and well-known names receive a majority of the hits In many emerging markets the consumers have long waited for the arrival of these brands There is a pent-up demand that the newly arrived local marketer can capitalize on It is important to realize, however, that such a release will not automatically translate into future success Once the mystique of a long-desired goal is dissolved, the consumer is likely to engage in more sober evaluation of the product’s benefits Evaluation of Alternatives Once a new product or service is available to the consumer and is in the “consideration set” of alternatives, a highly involved individual will process the available information, matching the pros and cons of the alternatives against preferences How this is done by people in different cultures is important to know, especially for positioning purposes There are several ways that consumers deal with these kinds of multiattributed evaluations Consumers can, for example, use gradually less-important features to successively screen out alternatives (a “hierarchical” decision rule) or consider all features simultaneously (a “compensatory” rule) The choices depend on factors such as involvement, product experience, and time pressure For example, in Internet searches savvy consumers can spend a long time comparing different brands on a number of features as well as price Where customers are sophisticated, as in leading markets, joh81012_ch07_205-236.qxd 9/12/08 6:15PM Page 213 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Chapter Understanding Local Customers 213 compensatory evaluations are likely By contrast, in follower markets, especially in the early stages of the product life cycle, consumer evaluations tend to be more hierarchical A desirable country of origin or the cachet of a Prada or Nike can be sufficient for purchase Even when more attributes are evaluated, which features are important can vary considerably between markets Part of the reason is that the core benefits can vary While a Mercedes may be bought for its luxury status in the United States, a used Mercedes may be bought for its dependability in eastern Europe While Levi’s are practical and functional in the United States, they may convey status in Germany In markets such as North America, where many similar products vie for attention, simple functional superiority is not easy to gain or sustain At this point, the consumer is likely to focus on less-tangible benefits, such as brand image, up-to-date features, and aesthetics The success of the Jeep in Europe and Japan is not based on the functional aspects that might dominate in Australia but on its status The local marketer should not forget the functional aspects, however, since quality performance is a necessary condition for purchase Inferior performance on essential features will not go unpunished For low-involvement purchases, it is well known from market research that the time and effort required for a thorough evaluation of the available information are often too demanding on the average consumer,3 who resorts to simplified rules of thumb, such as “choose the brand with the second-lowest price.” Such rules are difficult to discern without keen observation on the part of the marketer and an understanding of the foreign culture (as well as his or her own culture) Choice The final choice of which alternative to select or try is typically influenced by social norms and by situational factors, including in-store promotions Social Norms Where group pressures to comply are strong, as in many non-Western cultures, one can expect the influence of social norms to override any multiattributed evaluation The social norms can be usefully analyzed by the so-called extended Fishbein model.4 A flow diagram of the Fishbein model, as simplified and adapted to marketing, is given in Exhibit 7.3 Fishbein hypothesizes that a person’s behavioral intention derives from the multiattribute evaluation of the alternatives but is modified by the social norms (Fishbein originally used the term behavioral norms) affecting the choice The multiattribute evaluation results in an overall ranking of the alternatives in order of preference As Exhibit 7.3 shows, the social norms involve two aspects: the social forces themselves and the individual’s motivation to comply EXHIBIT 7.3 Multiattribute evaluation ⌺ BI The Extended Fishbein Model Source: Adapted from M Fishbein and I Azjen, Belief, Attitude, Intention, and Behavior, p 334 Social forces Motivation to comply Preference Social norms Behavioral intent Choice Situational factors (P-O-P) B = beliefs about product attributes; I = importance of the beliefs; P-O-P = point of purchase joh81012_ch07_205-236 8/28/08 8:07 PM Page 214 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 214 Part Three Local Marketing A family in Xinjiang, China, watching TV in their courtyard In less-developed areas of the world, the electric power supply can be unreliable and the cable hookups are often makeshift Nevertheless, many poor now consider TV a “necessity.” Robert Van Der Hilst/Stone/Getty Images Social forces represent the pressures and normative suggestions that come from an individual’s family, peer groups, social class, and other external forces For example, an autoworker in Germany will face some pressure to buy a German car, regardless of individual preference A successful pension fund manager in the City of London is more likely to wear an expensive analog Rolex than a cheap digital watch however versatile and reliable Motivation to comply relates to the willingness of the individual to listen to what others say and think This is very much a matter of culture In high context and homogeneous cultures where norms are both enforceable and enforced, the motivation to comply will usually be great Most people will know what products, features, brands, and stores are “acceptable,” and adhering to the norm will have tangible benefits Buying the right brand brings memberships, invitations, and opportunity You “belong.” Individualism, on the other hand, which represents low motivation to comply with others’ demands, will be costly, since sanctions can be enforced You are an “outsider,” not always unattractive, however, in low-context cultures where sanctions can’t be effectively imposed James Dean, the late actor and quintessential American outsider, is used by Levi’s to advertise its jeans in Japan Paradoxically, but not surprisingly, for the “young rebels” in Japan, wearing Levi’s means that they “belong.” The high value placed by Confucian cultures on the importance of social norms suggests that, in general, Eastern cultures show much more of an impact from social norms than Western cultures This was borne out in one study of athletic shoes comparing behavioral intentions of Koreans and Americans As hypothesized, Koreans showed a significantly greater willingness to consider peer group influence than did Americans.5 Outcomes The degree to which consumers achieve satisfaction with their purchases also varies across cultures, as recent customer satisfaction surveys amply demonstrate This is not surprising, considering what factors make for high satisfaction The most obvious determinant of satisfaction is the actual performance of the product or service when used or consumed But basic functionality does not necessarily mean that satisfaction is high As we saw in the evaluation section, where product and joh81012_ondx_652-655.qxd 9/22/08 07:23 PM Page 655 ntt 201:MHBR058:mhjoh4:joh4ind: 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Organization Index Virginia Slims, 551 Visa, 62, 433, 551, 552, 558 Vizir, 403 VNU NV, 223 Volkswagen, 6, 34, 43, 136, 137, 153, 164, 175, 240, 280, 284, 286, 441, 460, 530, 533 Volvo, 165, 170, 179, 375, 393, 551, 556, 589 Volvo Trucks, 6, 247 Vuitton, 294 Wal-Mart, 10, 185, 187, 238, 251, 281, 294, 300, 497, 498, 499, 593 Warner Brothers, 58 Warsteiner Brauerei, 158 Web TV, 199 Wellcome, 294 Wendy’s, 161 Westat, 223 Westinghouse, 124 Whirlpool, 90–95, 158, 583 Wibe, 451 Wipro, 298 World Bank, 110 WorldCom, 198 WPP, 532, 539 Wrangler Japan, 352 Wuhan, 446 Xerox, 247, 405, 517, 536, 556 Yahoo!, 199, 552, 562 Yamaha, 296, 453 Yonex, 570 Young & Rubicam, 532, 534 Yves Saint-Laurent, 527 Zara, 488, 490, 496, 501, 583 Zeneca, 247 655 joh81012_sndx_656_662.qxd 9/22/08 07:24 PM Page 656 ntt 201:MHBR058:mhjoh4:joh4ind: 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Subject Index Absolute advantage, 34 Achievement vs ascription, 72 Acquisition, 168 Adaptation, 407 Adequate service, 424 Administrative distance, 13 Advertising See Global advertising Advertising volume, 518–520 Affluent Society, The (Galbraith), 266 Africa Briefings, 113 AFTA, 289 After-sales support, 151–152 Agent, 151 Agreements across cultures, 66 Air express, 501–502 Altruists, 225 AMU, 336 Analysis for Marketing Planning (Lehmann/Winer), 394 ANCOM, 279 Anti-Americanism, Antiglobalization, 6–8 APEC, 289 Arab Maghreb Union (AMU), 336 Arbitrage, 478 ARF, 289 Argentina, 283–284 Argentine peso devaluation, 466 Arm’s-length prices, 469 Armstrong’s regression model, 123 ASEAN, 288 Attitude research, 220–221 Attitude scaling, 220 Attitudes toward the environment, 72 Attitudes toward the free market system, 315 Attitudes toward time, 72 Augmented service, 418 Australia and New Zealand, 258–262 competition, 259 distribution, 261 foreign trade agreements, 259 market environment, 258–259 market segmentation, 259–260 pricing, 261 product policies, 261 product positioning, 260 promotion, 261–262 Authoritarian political regimes, 273 Back translations, 221 Banner ads, 523 Barter, 471 Basic service package, 418 Bates Worldwide, 113, 114 BCG growth-share matrix, 376–377 BERI, 113 Big Mac index, 477 Bill of lading, 143 Body language, 61 Bollywood, 226 Bollywood film industry, 382 Born global, 178 656 Boston Consulting Group portfolio matrix, 376–377 Brand changeover, 449 Brand equity, 440–442 Brand evaluation, 441–442 Brand extensions, 435 Brand fit, 448 Brand hierarchy, 447 Brand image, 529 Brand manager, 24 Brand names, 274 Brand New Justice: The Upside of Global Branding (Anholt), 436 Brand portfolio, 446–447 Branding See Global branding Brazil, 129–130, 284 Build-up method, 118 Business Environment Risk Intelligence (BERI), 113 Business International Market Report, 114 Buyer action, 530 Buyer decision making, 210–215 choice, 213–214 evaluation of alternatives, 212–213 outcomes, 214–215 problem recognition, 211–212 search, 212 Buyer power, 50–51 CAGE, 13 Calibration equivalence, 220 Cases AOL, 196–203 Banyan Tree Hotels and Resorts, 603–615 Benetton, 621–632 Cathay Pacific Airways, 632–640 Colgate-Palmolive, 357–367 Hewlett-Packard, 640–645 IKEA, 85–90 Illycaffe, 189–196 Levi Strauss Japan K.K., 348–357 Procter & Gamble, 343–348 Starbucks, 193–196 Texas Instruments, 615–621 Toys “R” Us, 185–189 Whirlpool, 90–95 Cause marketing, 552–553 CESSDA, 113 CFR, 143 Channel captains, 500 Channel design, 509–510 Channel tie-up, 510–511 Chasm, 20 Chile, 284–285 China, 288, 323–333 continuous change, 332–333 distribution, 330–331 foreign entry, 325–327 foreign exchange control, 325–326 Hong Kong, 327–328 import license controls, 325 market environment, 323 market segmentation, 328 pricing, 329–330 product policies, 329 product positioning, 328–329 promotion, 332 protective tariffs, 325 special economic zones (SEZs), 326 WTO effect, 326–327 CIA World Factbook 2008, 113 CIF, 143 Cinema advertising, 520 Clearing through customs, 142–143 Closing tactics, 559 Cluster analysis, 382 COCOM, 315 Colonial domination, 273 Comparative advantage, 34 Compensation deals, 472 Competitive advantage, 33 Competitive analysis, 387–388 Competitive drivers, 21 Competitive parity, 531 Competitive repertoire, 51–52 Competitive signaling, 116–117 Competitive strength, 51 Concept research, 412–413 Concept testing, 412 Concessions and agreements, 74 Conflict resolution, 594–597 Confucianist dynamics, 68 Conspicuous consumption, 64 Construct equivalence, 220 Consumer decision process, 211 Consumer surveys, 217–218 Consumer tourism, 478 Contract manufacturing, 132 Control posture, 172 Converting funds, 150 Coordinated pricing strategies, 479 Coordinating committee, 588–589 Copyright infringement, 326 Core middle class, 274 Core product, 406 Core service, 418 Corporate brand, 434 Corporate culture, 591 Corruption research, 110 Cost, Insurance and Freight (CIF), 143 Cost and Freight (CFR), 143 Cost drivers, 22 Cost-plus pricing, 463 Council of European Social Science Data Archives (CESSDA), 113 Counterfeit products, 452–455 Counterfeits and pirated copies, 326 Counterpurchases, 472 Countertrade, 471–474 Countervailing duty, 146 Country attractiveness, 99–127 competitive intensity, 109 corruption research, 110 country data sources, 112–116 joh81012_sndx_656_662.qxd 9/22/08 07:24 PM Page 657 ntt 201:MHBR058:mhjoh4:joh4ind: 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Subject Index economic environment, 106 environmental research, 104–106 forecasting country sales, 117–123 forecasting market share, 123–124 general measure of, 102 market growth, 108–109 market size, 108 personal experience, 111 physical environment, 105 political risk research, 102–104 regulatory environment, 106 researching competitors, 116–117 sociocultural environment, 105 systematic entry screen, 106–111 trade barriers and regulations, 109 trade blocs, 106 Country attractiveness scale weights, 378 Country data sources, 112–116 Country identification, 106–107 Country markets, 233 Country-of-origin effect, 38, 240 Country-specific advantage (CSA), 34, 38–39, 45, 48 Creatives, 225 Credibility of advertising, 322 Creditworthiness, 149 Critical incident, 424 Cross-marketing, 553 CSA, 34, 38–39, 45, 48 Cultural adaptation, 60 Cultural dilemmas, 72 Cultural distance, 13, 176 Cultural foundations, 57–84 buyer behavior, 61–62 core benefit, 63–64 culture, defined, 60 foreign entry, 78–79 Gannon’s metaphors, 70 global branding, 439–440 global management, 80–81 high vs low context cultures, 65–66 Hofstede’s cultural dimensions, 66–68 industrial buyers, 75–77 local marketing, 79–80 managerial styles, 70–71 managing subordinates, 71 materialism, 62–63 negotiations, 72–75 nonadaptation, 78 Rapaille’s archetypes, 69 silent languages, 66 Cultural idiosyncrasies, 63 Culture, 60 Customer satisfaction, 215, 242–243 Damage control, 556 DDP, 143 Decoding cultures, 69 Delivery Duty Paid (DDP), 143 Delphi method, 120–121 Demand characteristics, 218 Demand spillover, 443 Demonstration effect, 476 Descriptive market research, 217 Desired service, 424 Devaluation, 465 Developing countries, 309 See also Emerging markets Devouts, 225 Diamond of national advantage, 35–37 Diffusion process, 19 Digitization of advertising, 539–540 Direct buying, 508 Direct experience, 111 Direct exporting, 131, 141 Direct marketing, 558–559 Direct observation, 219 Direct response television (DRTV), 558 Disintermediation, 540 Dissipation, 44, 159 Distributed headquarters, 247 Distribution See also Global distribution Australia and New Zealand, 261 China, 330–331 emerging markets, 312 India, 301–302 Japan, 257 Latin America, 282 mature markets, 241–242 Middle East, 337 new Asian growth markets, 292 new growth markets, 276 North America, 266 pan-European marketing, 251–252 Russia, 319–322 Distribution access, 136–137 Distribution alliance, 139, 164 Distribution center, 503 Distributors, 147 Diversification strategies, 385 Diversity, 66 Doing Business 2008, 113 “Doing business” annual reports, 115 Double-branding, 449 DRTV, 558 Dual adaptation, 392 Dual branding, 434 Dual distribution, 491 Dubai phenomenon, 11–12 Dumping, 146–147 Duty-free shopping, 508 E-commerce, 559–565 E-procurement, 501 E-tailing, 560–563 Eastern European customer, 106 Economic distance, 13 Economic environment, 106 Economist Intelligence Unit (EIU), 113 Economy of scale, 22, 404, 444 Economy of scope, 22, 404 Educating of middlemen, 321 EIU, 113 EIU Country Commerce, 113 EIU Country Data, 113 EIU Country Reports, 113 Electronic commerce, 559–565 EMC, 140 Emerging markets, 307–341 China See China distribution, 312 market segmentation, 310 Middle East See Middle East 657 pricing, 311 product positioning, 311 promotion, 312 Russia and the NDCs See Russia and the NDCs Vietnam, 333 Endorsement brand, 434, 449 Entry barriers, 133–139 Entry mode matrix, 171–172 Environmental dimensions, 105 Environmental research, 104–106 Ethnic market segmentation, 316 Ethnocentric pricing, 481–482 EU, 244–245 See also Pan–European marketing Euro-brands, 250 Euro currency, 250 Euro-teens, 250 European Union (EU), 244–245 See also Pan–European marketing Eurostat, 113 Event, 552 Event marketing, 552 Evoked set, 211 Ex-works (EXW), 143 Exchange rate, 465–467 Exchange rate fluctuations, 465 Exit barriers, 138 Expatriate, 591 Expatriate manager, 591–592 Expectations, 215 Expected service, 424 Experience curve, 463 Experience curve pricing, 463–464 Experiential brand, 438 Expert pooling, 120 Explanatory (causal) research, 219–220 Explanatory marketing research, 219 Exploratory research, 217 Export controls, 315 Export department structure, 578, 579 Export expansion, 129–155 advanced vs developing nations, 138 after-sales support, 151–152 clearing through customs, 142–143 direct exporting, 141 distribution access, 136–137 distribution alliance, 139 documents used, 142 dumping, 146–147 entry barriers, 133–139 exit barriers, 138 government regulations, 136 importers as trade partners, 152–153 indirect exporting, 140 legal issues, 151 local distribution, 147–148 natural barriers, 137–138 nontariff barriers, 135–136 payment, 148–150 pricing, 143–147 product shipment, 141–143 tariff barriers, 135–136 trade credit, 143–144 unbundling, 138 warehousing, 143 Export license, 151 joh81012_sndx_656_662.qxd 9/22/08 07:24 PM Page 658 ntt 201:MHBR058:mhjoh4:joh4ind: 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 658 Subject Index Export management company (EMC), 140 Export manager, 26 Export pricing, 143–147 Extended Fishbein model, 213 Extrapolation, 121 EXW, 143 Fade-in/fade-out, 449 Fair trade, 8–9 Family brand, 434 FAS, 143 FDI, 44, 45 FDI in wholly owned manufacturing, 166 Fieldwork, 222–224 Final selection, 110–111 Firm-specific advantage (FSA), 34, 40–48 internalization, 44 knowledge-based, 41 marketing-related, 41–42 regionalization, 47–48 transaction costs, 44–46 transferability, 42–43 value chain, 46–47 First-mover advantages, 18–19 Fishbein model, 213 Flat world, 10 FOB, 143 Focus group, 217, 412 Focus strategy, 386 Ford’s country matrix, 377–378 Forecasting by analogy, 118–119 Forecasting country sales, 117–123 Forecasting market share, 123–124 Foreign direct investment (FDI), 44, 45, 132 Foreign entry of services, 420–423 Foreign entry phase, 53 Foreign entry role, 26 Foreign trade agreements Australia and New Zealand, 259 Japan, 254 Latin America, 278–279 new Asian growth markets, 288–289 North America, 264 Pan-European marketing, 245–246 Foreign trade in services, 420 Forewarning, 449 Forward contract, 467 Franchising, 132, 161–162 Free Alongside Ship (FAS), 143 Free on Board (FOB), 143 Fresh fruit in Japan, 65 Friendship patterns, 66 Frost & Sullivan, 113 FSA See Firm-specific advantage (FSA) FTAA, 279 Full-line policies, 290 Full-service wholesalers, 493 Fun seekers, 225 Functional analysis, 470 Gannon’s metaphors, 70 Gatekeeper, 134 GCC, 335 GE/McKinsey matrix, 377 Geocentric pricing, 481 Geographic distance, 13 Geographical/regional structure, 579–580 Global account manager, 593 Global advertising, 515–545 advertising volume, 518–520 budgeting and organization, 531 cinema advertising, 520 defined, 518 digitization of advertising, 539–540 example (Goodyear in Latin America), 540–543 global advertising agency, 532–539 global media, 521–524 identical ads, 535–536 media selection, 537–539 media usage, 520–521 message translation, 535 online advertising, 521, 525 outdoor advertising, 521, 525 pattern standardization, 536–537 print media advertising, 520, 521–522, 525 promotion as competitive advantage, 516–518 pros/cons, 525–528 prototype advertising, 536 radio advertising, 520, 525 strategy, 529–530 TV advertising, 520, 521, 524 Web advertisements, 522–524, 525 Global advertising agency, 532–539 Global brand, 17, 403, 435 Global brand management, 433 Global branding, 431–458 advantages of global brands, 442–444 advantages of local brands, 450–451 brand equity, 440–442 brand evaluation, 441–442 brand portfolio, 446–447 counterfeit products, 452–455 cultural differences, 439–440 defending local brands, 449–450 disadvantages of global brands, 444–447 global, regional and local brands, 435 globalizing a local brand, 448–449 iconic and experiential, 438–439 Internet, building brands on, 443 longevity and familiarity, 438 market drives, 439 nation branding, 436–437 place branding, 437 product name, 448 risk avoidance and trust, 438 types of brands, 434–435 Global carrier alliances, 502 Global channel design, 509–510 Global channels, 21 Global communications, Global customers, 21, 592–594, 444 Global diffusion, 414 Global distribution, 487–513 air express, 501–502 changing distributors, 490–491 channel tie-up, 510–511 competitive advantage, 489–490 creating new channels, 496–497 dual distribution, 491 e-procurement, 501 global channel design, 509–510 global logistics, 500–504 gray trade, 504–508 multiple distribution channels, 508 ocean carriers, 502–503 overland transportation, 503 parallel distribution, 504–508 rationalizing local channels, 490–492 retailing, 494–500 transportation costs, 491 vertical integration, 492–493 warehousing, 503 wholesaling, 491–494 Global identification, 290 Global localization, 23–24 Global logistics, 500–504 Global management role, 27 Global market planning, 375–381 Global market segmentation, 381–387 Global marketing, 14 Global marketing alliance, 157–183 born global, 178 cultural distance, 176 entry mode/marketing control, 169–171 entry mode matrix, 171–172 franchising, 161–162 international learning curve, 176–177 internationalization stages, 177 joint venture (JV), 166 licensing, 159–163 manufacturing subsidiaries, 166–169 optimal entry strategy, 171–176 original equipment manufacturing (OEM), 162–163 sprinkler strategy, 179–180 strategic alliance (SA), 164–166 waterfall strategy, 179 Global marketing objectives, 25–26 Global marketing planning, 393–398 Global marketing strategy, 371–400 centralization, 375 competitive analysis, 387–388 coordination, 374–375 diversification vs focus, 385–386 factors affecting choice of market portfolio, 386 global market planning, 375–381 global market segmentation, 381–387 global marketing planning, 393–398 global product positioning, 389–391 global resource allocation, 378–380 global STP strategies, 391–393 macrosegmentation, 382–385 new global mindset, 375 profitability analysis, 388–389 selling orientation, 373–374 standardization, 374 targeting segments, 387–389 Global markets, 14–16 Global network as an asset, 584–585 Global personal selling, 565–570 closing tactics, 559 handling objections, 559 managing a sales force, 565–566 personal salesmanship, 566–567 preparation, 568 presentation, 567 Global pricing, 459–486 competition, 464 joh81012_sndx_656_662.qxd 9/22/08 07:24 PM Page 659 ntt 201:MHBR058:mhjoh4:joh4ind: 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Subject Index costs, 463 countertrade, 471–474 demand, 464–465 ethnocentric pricing, 481–482 exchange rate, 465–467 experience curve pricing, 463–464 framework, 461–463 geocentric pricing, 481 global coordination, 476–480 global services, 482 government intervention, 468 gray trade, 476–480 hedging, 467 managerial trade-offs, 482–483 PLC impact, 476 polycentric pricing, 481 price-quality relationship, 475–476 systems pricing, 474–475 transfer pricing, 468–471 Global product division, 580 Global product lines, 409–410 Global product positioning, 389–391 Global products, 16, 403 Global products and services, 401–430 concept research, 412–413 foreign entry of services, 420–423 foreign trade in services, 420 global product lines, 409–410 global services, 416–419 globalizing successful new products, 414–415 idea generation, 411 localization vs adaptation, 406–407 new product success factors, 414 preliminary screening, 411 pricing in global services, 482 sales forecast, 413 service entry modes, 421–422 service globalization potential, 419–420 service quality, 424–425 standardization, 403–406, 408–409 test marketing, 413 Global Prospectus LLC, 113 Global prototype, 536 Global public relations, 555–556 Global resource allocation, 378–380 Global retailing, 497–500 Global Risk Assessment, Inc., 113 Global rivalry, 52 Global sales promotion, 549–554 cause marketing, 552–553 cross-marketing, 553 event marketing, 552 in-store promotions, 550 product placement, 554 sponsorships, 551–552 trade promotions, 550–551 Global services, 416–419 Global STP strategies, 391–393 Global teams, 587 Global warming, Globalization drivers, 20 Globalization potential, 419 Globalizing management, 586–588 Goal oriented, 210 Good global marketer, 597–598 Government globalization drivers, 23 Government regulations, 136 Gray trade, 452, 476–480, 504–508 Green trade, 10 Greenfield investment, 168 Growth-share matrix, 376–377 Gulf Cooperation Council (GCC), 335 Handling objections, 559 Harmonious whole, 290 Harry Potter series of books, 57–59 Hedging, 150, 467 Heterogeneity, 416 Hidden motivators, 210 Hierarchy of effects, 524 High context cultures, 65, 66 High vs low power distance, 66 Hire, The, 443 Hofstede’s cultural dimensions, 66–68 Hong Kong, 294, 295, 327–328 Hong Kong trading companies, 327 Horizontal networks, 581 Iconic brand, 438 Ideal points, 229 Identical ads, 535–536 IMC, 570 IMF, 309 In-depth screening, 108 In-store promotions, 550 India, 295–302 consumers, 299 distribution, 301–302 FDI effect, 296–298 market environment, 296 market segmentation, 298–299 outsourcing entrepreneurs, 298 pricing, 301 product policies, 300–301 product positioning, 299–300 promotion, 302 software industry, 297 Indirect exporting, 131, 140 Individualism vs collectivism, 66 Individualism vs communitarianism, 72 Infrastructure, 419 Ingredient brand, 435 Inseparability, 416 Insurance, 151 Intangibility, 416 Intangibles, 42 Integrated marketing communications (IMC), 570 Internalization, 44 International agencies, 313 International division structure, 579 International learning curve, 176–177 International Monetary Fund (IMF), 309 International price escalation, 145 International product cycle (IPC), 35 International trade fairs, 557 Internationalization stages, 177 Internet, 22–23 Internet aggregators, 99–100 Internet Center for Corruption Research, 113 Interstitial ads, 523 Intimates, 225 Intrabrand competition, 266 Intranet, 585 Inventory management, 503 IPC, 35 iPod, 4–5, 263 iPod index, 478 Iraq, 104 ISO 9001, 23 ISO certification, 130 Japan competition, 254–255 distribution, 257 foreign trade agreements, 254 market environment, 253–254 market segmentation, 255 pricing, 256 product policies, 256 product positioning, 256 promotion, 258 Japanese distribution, 257 Japan’s giant traders, 140 Joint venture (JV), 132, 166 Judgmental forecasts, 120–121 Jury technique, 120 JV (joint venture), 132, 166 Knockdown (KD), 144 Knockoffs, 452 Knowledge assets, 24 Knowledge-based FSAs, 41 Knowledge-based organization, 41 Kodak-Fuji battle, 53 Korea, 293–294 Labor costs, 273 LAIA, 278 Latin America, 276–286 Argentina, 283–284 Brazil, 284 Chile, 284–285 distribution, 282 foreign trade agreements, 278–279 market environment, 277–278 market segmentation, 279 Mexico, 285 pan-regional marketing, 286 pricing, 281 product policies, 280–281 product positioning, 279–280 promotion, 283 Lead markets, 17–18 Leading markets, 17–18, 291 Learned behavior, 60 Learning curve, 176 Letter of credit, 149–150 Liberalization in India, 297 Licensing, 132, 159–163 Local brand, 17, 435, 449–451 Local customers, 207–236 attitude research, 220–221 buyer decision making, 210–215 consumer surveys, 217–218 country markets, 233 explanatory (causal) research, 219–220 fieldwork, 222–224 local market segmentation, 224–227 659 joh81012_sndx_656_662.qxd 9/22/08 07:24 PM Page 660 ntt 201:MHBR058:mhjoh4:joh4ind: 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 660 Subject Index Local customers—Cont local product positioning, 227–231 marketing environment, 231 marketing tasks, 232 measurement and scaling, 220–221 observational studies, 219 problem definition, 215–217 qualitative research, 217 questionnaire construction, 221 sampling, 222 trade surveys, 218–219 Local distribution, 147–148 Local market segmentation, 224–227 Local marketing phase, 53 Local marketing role, 26–27 Local product positioning, 227–231 Localization, 407 Localized advertising, 518 Logistics, 500–504 Long tail theory, 20 Low context cultures, 65–66 M-Net system, 379–380 Macrosegmentation, 382–385 Made-in labels, 38–39 Mail order, 558 Management systems, 588 Manufacturing alliances, 165 Manufacturing subsidiaries, 166–169 Market development, 232 Market drivers, 21 Market orientation, 41 Market-oriented clustering of world markets, 384 Market potential, 108 Market segmentation, 19 Australia and New Zealand, 259–260 China, 328 emerging markets, 310 global, 381–387 Japan, 255 Latin America, 279 macrosegmentation, 382–385 mature markets, 239 microsegmentation, 381 Middle East, 336 new Asian growth markets, 289 North America, 265 Pan-European marketing, 247–248 Russia, 316–318 Market share, 232 Market share forecasts, 123 Marketing environment, 231 Marketing infrastructure, 232, 309 Marketing-related FSAs, 41–42 Marketing strategy See Global marketing strategy Marketing tasks, 232 Masculine vs feminine, 67 Master brand, 434 Master foreign agency appointment checklist, 152 Master foreign distributorship agreement checklist, 149 Material possessions, 66 Matrix organization, 581 Mature markets, 237–269 Australia See Australia and New Zealand customer satisfaction, 242–243 distribution, 241–242 Japan See Japan market segmentation, 239 North America See North America pan-European marketing See PanEuropean marketing pricing, 241 product policies, 240–241 product positioning, 239–240 promotion, 242 Me-too product, 240 Measurement equivalence, 220 Measurement errors, 220 Media selection, 537–539 Megaports, 503 MENA, 334 Mercosur, 279 Message translation, 535 Mexico, 285 Microsegmentation, 381 Middle East, 333–338 distribution, 337 GDP per capita, 336 governing structures, 334 Islam, 334–335 market environment, 335 market segmentation, 336 product positioning, 336–337 promotion, 338 trade blocs, 335–336 Mispositioned, 229 Modes of entry, 131–133 Modular design, 406 Moment of truth, 424 Motivation to comply, 214 Multiattributed evaluations, 212 Multicultural, 65 Multidomestic advertising, 518 Multidomestic markets, 14, 16 Multiple distribution channels, 508 NAFTA, 279 Nation branding, 436–437 National competitive advantages, 35–37 Natural barriers, 137–138 NDCs, 312 See also Russia and the NDCs Negotiations, 72–75 Neocolonial, 275 Network theory, 585 Neutral vs emotional, 72 New Asian growth markets, 287–295 distribution, 292 foreign trade agreements, 288–289 Hong Kong, 294 market environment, 287 market segmentation, 289 pan-regional marketing, 294–295 pricing, 291–292 product policies, 290–291 product positioning, 289–290 promotion, 292–293 South Korea, 293–294 Taiwan, 294 New entrants, 50 New growth markets, 271–305 distribution, 276 India See India Latin America See Latin America market segmentation, 274 new Asian growth markets See New Asian growth markets pricing, 276 product positioning, 274–275 promotion, 276 trade blocs, 274 two kinds of markets, 273 New product success factors, 414 New trade theory, 37 New Zealand See Australia and New Zealand Newly democratized countries (NDCs), 312 See also Russia and the NDCs Newly industrialized economy (NIE), 273 NIE, 273 No Logo (Klein), Nonadaptation, 78 Nontariff barriers, 133, 135–136 Nontask sounding, 74 Nonverbal communication, 73 North America competition, 264–265 decentralization, 263 distribution, 266 ethnic diversity, 262–263 foreign trade agreements, 264 market environment, 262–264 market segmentation, 265 pricing, 265–266 product policies, 265 product positioning, 265 promotion, 266–267 regulations, 264 religion, 263 Objective-task method, 531 Observational studies, 219 Ocean carriers, 502–503 OEM, 162–163 Off-shoring, 167 Offset, 473 Online advertising, 521, 525 Online marketing, 559–565 Open skies bilateral agreement, 134 OPIC, 309 Optimal entry mode, 159 Organizational culture, 591 Organizational design, 578 Organizational structure, 578–583 Original equipment manufacturing (OEM), 162–163 Outdoor advertising, 521, 525 Outsourcing, 167–168 Overland transportation, 503 Overseas Private Investment Corporation (OPIC), 309 Pan-European marketing, 243–252 competition, 246–247 distribution, 251–252 foreign trade agreements, 245–246 market environment, 244–245 market segmentation, 247–248 pricing, 250–251 product policies, 250 joh81012_sndx_656_662.qxd 9/22/08 07:24 PM Page 661 ntt 201:MHBR058:mhjoh4:joh4ind: 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 Subject Index product postioning, 248–249 promotion, 252 Pan-European structure, 582 Pan-regional, 286, 294 Pan-regional advertising, 535 Panel consensus, 120 Parallel distribution, 504–508 Parallel imports, 476 Pattern standardization, 536–537 Penetration price, 291, 311, 476 People skills, 589 Perceived risk, 212 Perceived service, 424 Percentage-of-sales, 531 Perceptual maps, 227 Perceptual space, 229 Perishability, 416 Personal experience, 111, 122 Personal salesmanship, 566–567 Personal selling See Global personal selling Persuasion, 74 Physical environment, 105 Piggybacking, 242 Place branding, 437 Point-of-purchase information technology, 497 Political risk, 315 Political risk in India, 297 Political risk research, 102–104 Political Risk Yearbook, 114 Polycentric pricing, 481 Pop-up ads, 523 Porter’s five forces model buyer power, 50–51 new entrants, 50 rivalry, 48–49 substitutes, 50 supplier power, 51 Porter’s related industries, 38 Portfolio approach, 376 Power distance, 66 Preferences, 210 Preliminary screening, 107 Premium price differential, 464 Press release, 555 Price controls, 468 Price corridors, 478 Price discrimination, 468 Price elasticities, 464 Price escalation, 143–144 Price-quality relationship, 475–476 Pricing See also Global pricing Australia and New Zealand, 261 China, 329–330 emerging markets, 311 India, 301 Japan, 256 Latin America, 281 mature markets, 241 new Asian growth markets, 291–292 new growth markets, 276 North America, 265–266 pan-European marketing, 250–251 Russia, 318 Pricing coordination, 476–480 Pringle syndrome, 24 Print media advertising, 520, 521–522, 525 Problem definition, 215–217 Product adaptation-communications extension, 392 Product brand, 434 Product buy-backs, 473 Product-communications extension, 392 Product extension-communications adaptation, 392 Product life cycle (PLC), 19–20 Product line pricing, 481 Product name, 448 Product placement, 554 Product policies Australia and New Zealand, 261 China, 329 India, 300–301 Japan, 256 Latin America, 280–281 mature markets, 240–241 new Asian growth markets, 290–291 North America, 265 Pan-European marketing, 250 Product positioning, 20, 227 Australia and New Zealand, 260 China, 328–329 emerging markets, 311 global, 389–391 India, 299–300 Japan, 256 Latin America, 279–280 mature markets, 239–240 Middle East, 336–337 new Asian growth markets, 289–290 new growth markets, 274–275 North America, 265 Pan-European marketing, 248–249 Russia, 318 Product shipment, 141–143 Product space, 228 Product space maps, 227 Profitability analysis, 388–389 Promotion Australia and New Zealand, 261–262 China, 332 emerging markets, 312 India, 302 Japan, 258 Latin America, 283 mature markets, 242 Middle East, 338 new Asian growth markets, 292–293 new growth markets, 276 North America, 266–267 pan-European marketing, 252 Russia, 322–323 Protected know-how, 174–175 Prototype advertising, 536 PRS Group, 113 Public relations, 555–556 Publicity, 554–555 Qualitative research, 217 Questionnaire, 218 Questionnaire construction, 221 Radio advertising, 520, 525 Rapaille’s archetypes, 69 661 Raw materials, 273 R&D alliances, 165 Regional brand, 435 Regional organization, 580 Regional products, 403 Regional structure, 583–584 Regional trade blocs, 106 Regionalization, 13 Regression-based forecasts, 121–123 Regulatory environment, 106 Relationship marketing, 77, 593 Relative income hypothesis, 64 Religious influence, 278 Repatriating funds, 150 Researching competitors, 116–117 Resource-based strategy, 41 Retail trade marketing groups, 594 Retailing, 494–500 Rich media ads, 523 Rivalry, 48–49 Roadblocks, 523 Roll-on-roll-off (RORO), 503 RORO, 503 Royalties, 160 Russia and the NDCs, 312–323 distribution, 319–322 market environment, 313–315 market segmentation, 316–318 marketing education, 321 political and legal risks, 315 pricing, 318 product positioning, 318 promotion, 322–323 service training, 321–322 SA, 132, 164–166 Sales force, 565 Sales forecast, 117, 413 Sales promotion See Global sales promotion Sales subsidiary, 133, 152 Salesman as a person, 566 Salesmanship, 565 Salient attributes, 229 Sampling, 222 Sampling equivalence, 222 Sampling frame, 217 SBU, 579 Scale economies, 404, 444 Scope economies, 404 Score equivalence, 220 Secondary data, 112 Segmentation criteria, 222 Service delivery system, 419 Service entry modes, 421–422 Service globalization potential, 419–420 Service industries, 416 Service “product,” 418 Service quality, 424–425 Service satisfaction, 424 Service standardization, 419 SEZs, 326 Shared manufacturing, 165 Shopping but not choosing, 62 Silent languages, 66 Skimming price, 291, 311, 476 Sky-high entry barriers, 134 Social norms, 213 joh81012_sndx_656_662.qxd 9/22/08 07:24 PM Page 662 ntt 201:MHBR058:mhjoh4:joh4ind: 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 662 Subject Index Sociocultural environment, 105 Sourcing advantages, 22 South Korea, 293–294 Space, 66 Special economic zones (SEZs), 326 Specific vs diffuse, 72 Sponsorships, 551–552 Sprinkler strategy, 179–180 Standardization, 403–406, 408–409 Standardized products, 14 Straight licensing, 160 Strategic alliance (SA), 132, 164–166 Strategic business unit (SBU), 579 Strategic intent, 51 Strategic posture, 171–172 Strivers, 225 Sub-brand, 434 Substitutes, 50 Summary axing, 449 Supplier power, 51 Supply chain management, 500 Survey, 217, 412 Swap, 467 Systematic entry screen, 106–111 Systems pricing, 474–475 Systems selling, 474 Taiwan, 294 Target research, 412 Tariff barriers, 133, 135–136 Task-related exchange of information, 74 Technology driver, 22 Technology transfer, 35 Technology transfer into India, 296 Telemarketing, 558 Telenovela, 226 Television advertising, 520, 521, 524 Terrorism, 103 Test marketing, 413 “Think” and “feel” country clusters, 385 Tickers, 523 Time, 66 Time series extrapolation, 121 Title, 151 Total Global Strategy (Yip), 394 Trade barriers and regulations, 109 Trade blocs, 106, 274 Trade credit, 143–144 Trade fairs, 147 Trade promotions, 550–551 Trade surveys, 218–219 Trading companies, 131 Transaction costs, 45 Transactional ads, 523 Transfer pricing, 468–471 Transferability, 42 Transferable marketing, 21 Translation equivalence, 220 Transnational organizations, 581 Transparency International, 113 Transportation costs, 491 Trust, 66 Turkey, 337 Turnkey contracts, 132 Turnkey sales, 474 TV advertising, 520, 521, 524 TV penetration, 119–120 Two-dimensional country clustering map, 383 Type A negotiator, 74 Type B negotiator, 74 Umbrella brand, 434 Unbundling, 138 Uncertainty avoidance, 67 Uniform positioning, 390 Universalism vs particularism, 72 Unrepresentative sample, 217 Urban versus rural population, 279 URL, 564 Value chain, 46 Vertical integration, 492–493 Vertical keiretsu, 77 Vietnam, 333 Warehousing, 143, 503 Waterfall strategy, 179 Web 2.0, 560 Web advertisements, 522–524, 525 Web home page, 564 Wholesaling, 491–494 Wholly owned manufacturing subsidiary, 132–133 World Bank, 110, 113–115, 309 World Bank Country Data, 113 World Is Flat, The (Friedman), 10 World Cup promotion, 552 joh81012_sndx_656_667.qxd 24-9-2008 08:54PM Page 663 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 joh81012_sndx_656_667.qxd 24-9-2008 08:54PM Page 664 33a8d66 6e7d7dc9e13 dd1 05b1 1d31 bb1a 3455 1df2b0 cb9 7186 bc6 d16a 369ee5 b ee72a4a6 c95e 8b44 261 c11b4da31 9ff705 b88da 47d8 4df733 b53a c07db5dfacc 1510e98 0f4 50b60aa5d5a6890 d04 084e1 69f91b0a 0746aa f8db6ad4b36 3cb2aa f7241 c66a 32f777 f8d7 cb0bb287 f89ee b3cc87 25aa013 8eb5 ef5 3e30 c2eaa3 b4 e02a5a6fa 70b0 7f7 fcd90 ba65b61b8 f12 3f1 9667 d8f652fe56 cf4 b7e8a dcc6c3 27fc8c5 9ff18a6 cc5 b550e f27 2207e 2890 e7004 6d87 71b5cc78 c4cc78 b7b5 3ed 7c671 77c6ed c0d9 cb4e3df6 d9b4 f27 9f2 4b01 e9147a 384db32 2798e 50c0f8e b6 be2c8 01b1fb0070 8e12 c6de 961 c5f1c0 06855 d27 b368 f5d3200 457bf86 82875 7da9aa76 fc2 ed63 f83 0eaf0 c38 74ebfb6 7e9c8ed f16 f6dc82 6b51 078e7 60f49c 65a914d4973 444e2 d79a7 58d43b2e 6adbb6da 6d7 cb1 d692 8950 8de5 27b9 8e614 08e5183 8cb468 07e5 f69d5b5 f32e 0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 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0b59 dd6 d94 9422a0 b5 cc7e 452e d3c3d3a4 8f c8c0 747 d2d9 988b26a4d181 f8d1ae03e7 8f6a 3d5a4 0036 f14 74f03bfa68a33 1f 24180d1943 19c5b53 60e51 00c27f5c0 6601 be5b55b9 1eb2 908e5 cb1a159e 6e2b bd19 f0b1a72 c4971 21fb1e8 ee703 c88 1d05 b4f370 b27a4 cb9a 76d3 8fc7fa3 9f9 6e4c1 25a430 5bfc91 dc8 7d41 6036 0fb00fca063 6038aae 4774 0cfd0a7 b33ab4d c075 cc2 f31a 7f7 245 c7a5fca8 f749 3b20 d1be27aa69 d40 c7a2 f7f36b3f0ae f35 e190ac1c9 6f6 f10 748 f84c4d3a 7aaad61 9ff8ef2 9806 c05 43c99b8a 20c9a1df4 b83b8 d125 48d1f8 da85e1 7f2 45c47e48 f5 cf18c4a38b4fb6219a 69980 133a2 49 th Edition Global Marketing seeks to develop the different skills a marketing manager needs to be successful when taking on the three-part tasks of foreign entry, local marketing, and global management Excellent examples and cases, many of which are drawn from the author’s rich international experience, help you move from concept to application Updated and New Features in the 5th Edition: The Effect of Technology and the Internet on Global Commerce Coverage is introduced early in the text and then integrated throughout the text where appropriate so students experience how technology affects global marketing Revised coverage of e-commerce in Chapter 17 recognizes the amazing developments after the emergence of Web 2.0 Revised Chapter 11: The Global Marketing Strategy The new Global Branding chapter extends the branding discussion in the previous edition, and adds new material on brand equity and on the added value that globality confers upon a brand This chapter also introduces the concept of country branding For more information and student resources, please visit the text Online Learning Center: www.mhhe.com/johansson5e ISBN 978-0-07-338101-5 MHID 0-07-338101-2 90000 780073 381015 www.mhhe.com Johny K Johansson New Chapter 13: Global Branding t h Edition global marketing Foreign Entr y, Local Marketing & Global Management Johny K Johansson MD DALIM #983087 09/12/08 CYAN MAG YEL BLK This revised chapter is an extended version of the Global Segmentation and Positioning chapter in the fourth edition The chapter still covers new research on global segmentation and positioning, but also adds new material on resource allocation across products and markets global marketing Focus on marketing decisions in the global environment