Ebook Global marketing (Seventh edition): Part 2

Ebook Global marketing (Seventh edition): Part 2 includes contents: Chapter 10 brand and product decisions in global marketing; chapter 11 pricing decisions; chapter 12 global marketing channels and physical distribution; chapter 13 global marketing communications decisions I: Advertising and public relations; Chapter 14 Global marketing communications decisions II: Sales promotion, personal selling, and special forms of marketing communication. 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.

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 FOUR The Global Marketing Mix 10 Brand and Product Decisions in Global Marketing CASE 10-1 Suzlon Energy A worldwide, consumer-driven movement toward renewable energy solutions has created global market opportunities for entrepreneurial companies In 1995, after facing rising electricity costs for his family’s textile factory in Pune, India, Tulsi Tanti decided to build two wind turbines to power the facility Tanti soon realized that he had stumbled upon a promising opportunity As he explained, “I had a very clear vision: If Indians start consuming power like the Americans, the world will run out of resources Either you stop India from developing, or you find some alternate solution.” Within a few years’ time, Tanti had converted his factory from textiles to the manufacturing of wind turbine generators, gearboxes, towers, rotor blades, and wind turbines Tanti’s company, now called Suzlon Energy Limited, was well positioned to take advantage of the growing demand for alternative energy sources (see Exhibit 10-1) Moving into the U.S market, Suzlon enjoyed the promising prospects of a booming industry; however, numerous problems with product quality and negative publicity, in addition to economic turbulence and regulatory restrictions, have raised concerns about the potential of Suzlon and other green-energy companies To learn more about the challenges and opportunities Exhibit 10-1 India’s Suzlon Energy has become a major player in the wind turbine industry Historically, India’s power distribution system has been inefficient and inconsistent; users pay high prices for electricity but still must endure blackouts on a regular basis Moreover, burning coal to generate electricity can have serious environmental consequences For these reasons, industrial users in India seeking alternative sources of energy are Suzlon’s primary customers Suzlon is also thinking globally: The company has opened a turbine blade factory in Minnesota, where it also operates a wind farm Source: Scott Eells/Redux Pictures 284 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 facing Tanti’s company, turn to the continuation of Case 10-1, Suzlon Energy: The Assignment, at the end of the chapter Tanti’s success at Suzlon Energy illustrates the point that products—and the companies and brands associated with them— are arguably the most crucial element of a company’s marketing program; they are integral to the company’s value proposition In Part 3, we surveyed several topics that directly impact product strategy as a company approaches global markets Input from a company’s business intelligence network and market research studies guides the product development process The market must be segmented, one or more target markets selected, and strong positioning established Global marketers must also make decisions about exporting and sourcing; other market entry strategies, such as licensing and strategic alliances, may be considered as well As we will see in Part 4, every aspect of a firm’s marketing program, including pricing, distribution, and communication policies, must fit the product This chapter examines the major dimensions of global product and brand decisions First is a review of basic product and brand concepts, followed by a discussion of local, international, and global products and brands Product design criteria are identified, and attitudes toward foreign products are explored Then, strategic alternatives available to global marketers are presented Finally, new product issues in global marketing are discussed LEARNING OBJECTIVES Review the basic product concepts that underlie a successful global marketing product strategy Compare and contrast local products and brands, international products and brands, and global products and brands Explain how Maslow’s needs hierarchy helps global marketers understand the benefits buyers sought by buyers in different parts of the world Outline the importance of “country of origin” as a brand element List the five strategic alternatives that marketers can utilize during the global product planning process Explain the new product continuum and compare and contrast the different types of innovation Basic Product Concepts The product P of the marketing mix is at the heart of the challenges and opportunities facing global companies today: Management must develop product and brand policies and strategies that are sensitive to market needs, competition, and the company’s ambitions and resources on a global scale Effective global marketing often entails finding a balance between the payoff from extensively adapting products and brands to local market preferences and the benefits that come from concentrating company resources on relatively standardized global products and brands A product is a good, service, or idea with both tangible and intangible attributes that collectively create value for a buyer or user A product’s tangible attributes can be assessed in physical terms, such as weight, dimensions, or materials used Consider, for example, a flat-panel TV with an LCD screen that measures 42 inches across The unit weighs 50 pounds, is inches deep, is equipped with four high-definition media interface (HDMI) connections, has a built-in tuner capable of receiving high-definition TV signals over the air, and delivers a screen resolution of 1080p These tangible, physical features translate into benefits that enhance the enjoyment of watching HDTV broadcasts and DVD movies Accessories such as wall mounts and floor stands enhance the value offering by enabling great flexibility in placing the set in a living room or home theater Intangible product attributes, including the status associated with product ownership, a manufacturer’s service commitment, and a brand’s overall reputation or mystique, 285 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 49 286 PART • THE GLOBAL MARKETING MIX are also important When shopping for a new TV, for example, many people want “the best”: They want a TV loaded with features (tangible product elements), as well as one that is “cool” and makes a status statement (intangible product element) Product Types A frequently used framework for classifying products distinguishes between consumer and industrial goods For example, Sharp offers products and services to both consumers and businesses worldwide Consumer and industrial goods, in turn, can be further classified on the basis of criteria such as buyer orientation Buyer orientation is a composite measure of the amount of effort a customer expends, the level of risk associated with a purchase, and buyer involvement in the purchase The buyer orientation framework includes such categories as convenience, preference, shopping, and specialty goods Electronics products are often high-involvement purchases, and many shoppers will compare several brands before making a decision Products can also be categorized in terms of their life span (durable, nondurable, and disposable) Sharp and other electronics companies market products that are meant to last for many years; in other words, they are durable goods As these examples from the electronics industry suggest, traditional product classification frameworks are fully applicable to global marketing Product Warranties A warranty can be an important element of a product’s value proposition An express warranty is a written guarantee that assures the buyer that he or she is getting what he or she has paid for or that provides recourse in case a product’s performance falls short of expectations In global marketing, warranties can be used as a competitive tool to position a company in a positive way For example, in the late 1990s Hyundai Motor America chief executive Finbarr O’Neill realized that many American car buyers perceived Korean cars as “cheap” and were skeptical about the Hyundai nameplate’s reliability The company had made significant improvements in the quality and reliability of its vehicles, but consumer perceptions of the brand had not kept pace with the changes O’Neill instituted a 10-year, 100,000-mile warranty program that represents the most comprehensive coverage in the auto industry Concurrently, Hyundai launched several new vehicles and increased expenditures for advertising The results are impressive: Hyundai’s U.S sales jumped from about 90,000 vehicles in 1998 to more than 500,000 vehicles in 2010 Hyundai has also overtaken Toyota as Europe’s best-selling Asian car brand Packaging Oftentimes, packaging is an integral element of product-related decisions Packaging is an important consideration for products that are shipped to markets in far-flung corners of the world The term consumer packaged goods applies to a wide variety of products whose packaging is designed to protect or contain the product during shipping, at retail locations, and at the point of use or consumption “Eco-packaging” is a key issue today, and package designers must address environmental issues such as recycling, biodegradability, and sustainable forestry In Germany, for example, product packaging must conform to Green Dot regulations Packaging also serves important communication functions: Packages (and labels attached to them) offer communication cues that provide consumers with a basis for making a purchase decision Today, many industry experts agree that packaging must engage the senses, make an emotional connection, and enhance a consumer’s brand experience According to Bernd Schmitt, director of Columbia University’s Center on Global Brand Leadership, “Packages are creating an experience for the customer that goes beyond the functional benefits of displaying and protecting the object.”1 Absolut Vodka, Altoids breath mints, and Godiva chocolates are a few examples of brands whose value proposition includes “experiential packaging.” Brewers, soft drink marketers, distillers, and other beverage firms typically devote considerable thought to ensuring that packages speak to consumers or provide some kind of Queena Sook Kim, “The Potion’s Power Is in Its Packaging,” The Wall Street Journal (December 21, 2000), p B12 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 10 • BRAND AND PRODUCT DECISIONS IN GLOBAL MARKETING benefit beyond simply holding liquid For example, a critical element in the success of Corona Extra beer in export markets was management’s decision to retain the traditional package design that consisted of a tall transparent bottle with “Made in Mexico” etched directly on the glass At the time, the conventional wisdom in the brewing industry was that export beer bottles should be short, green or brown in color, and have paper labels In other words, the bottle should resemble Heineken’s! The fact that consumers could see the beer inside the Corona Extra bottle made it seem more pure and natural Today, Corona is the top-selling imported beer brand in the United States, Australia, Belgium, the Czech Republic, and several other countries.2 Coca-Cola’s distinctive (and trademarked) contour bottle comes in both glass and plastic versions and helps consumers seek out the “real thing.” The Coke example also illustrates the point that packaging strategies can vary by country and region In North America, where large refrigerators are found in many households, Coca-Cola’s latest packaging innovation is the Fridge Pack, a long, slender carton that holds the equivalent of 12 cans of soda The Fridge Pack fits on a refrigerator’s lower shelf and includes a tab for easy dispensing In Latin America, by contrast, Coca-Cola executives intend to boost profitability by offering Coke in several different sized bottles Until recently, for example, 75 percent of Coke’s volume in Argentina was accounted for by 2-liter bottles priced at $0.45 each Coke has introduced cold, individual-serving bottles priced at $0.33 that are stocked in stores near the front; unchilled, 1.25-liter returnable glass bottles priced at $0.28 are available on shelves further back in the store.3 Other examples include the following: 䊉 䊉 䊉 Grey Goose, the world’s top-selling super premium vodka brand, is the brainchild of the late Sidney Frank The owner of an importing business in New Rochelle, New York, Frank first devised the bottle design and name Only then did he approach a distiller in Cognac, France, to create the actual vodka.4 Nestlé’s worldwide network of packaging teams contribute packaging improvement suggestions on a quarterly basis Implemented changes include a new plastic lid to make ice cream containers easier to open; slightly deeper indentations in the flat end of candy wrappers in Brazil that make them easier to rip open; and deeper notches on single-serve packets of Nescafé in China Nestlé also asked suppliers to find a type of glue to make the clicking sound louder when consumers snap open a tube of Smarties brand chocolate candies.5 When GlaxoSmithKline launched Aquafresh Ultimate in Europe, the marketing and design team wanted to differentiate the brand from category leader Colgate Total Most tube toothpaste is sold in cardboard cartons that are stocked horizontally on store shelves The team designed the Aquafresh Ultimate tube to stand vertically; the tubes are distributed to stores in shelf-ready trays The box-free packaging saves hundreds of tons of paper each year.6 Labeling One hallmark of the modern global marketplace is the abundance of multilanguage labeling that appears on many products In today’s self-service retail environments, product labels may be designed to attract attention, to support a product’s positioning, and to help persuade consumers to buy Labels can also provide consumers with various types of information Obviously, care must be taken that all ingredient information and use and care instructions are properly translated The content of product labels may also be dictated by country- or region-specific regulations Regulations regarding mandatory label content vary in different parts of the world; for example, the EU now requires mandatory labeling for some foods containing genetically modified ingredients Sara Silver, “Modelo Puts Corona in the Big Beer League,” Financial Times (October 30, 2002), p 26 McKay, “Coke’s Heyer Finds Test in Latin America,” The Wall Street Journal (October 15, 2002), p B4 Christina Passarielo, “France’s Cognac Region Gives Vodka a Shot,” The Wall Street Journal (October 20, 2004), p B1 Deborah Ball, “The Perils of Packaging: Nestlé Aims for Easier Openings,” The Wall Street Journal (November 17, 2005), p B1 Clare Dowdy, “GlaxoSmithKline’s New Toothpaste,” Financial Times (August 11, 2011), p Betsy 287 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 49 288 PART • THE GLOBAL MARKETING MIX Regulators in Australia, New Zealand, Japan, Russia, and several other countries have also proposed similar legislation In the United States, the Nutrition Education and Labeling Act that went into effect in the early 1990s was intended to make food labels more informative and easier to understand Today, virtually all food products sold in the United States must present information regarding nutrition (e.g., calories and fat content) and serving size in a standard format The use of certain terms such as light and natural is also restricted Other examples of labeling in global marketing include the following: 䊉 䊉 䊉 䊉 䊉 Mandatory health warnings on tobacco products are required in most countries The American Automobile Labeling Act clarifies the country of origin, the final assembly point, and percentages of the major sources of foreign content of every car, truck, and minivan sold in the United States (effective since October 1, 1994) Responding to pressure from consumer groups, in 2006 McDonald’s began posting nutrition information on all food packaging and wrappers in approximately 20,000 restaurants in key markets worldwide Executives indicated that issues pertaining to language and nutritional testing would delay labeling in 10,000 additional restaurants in smaller country markets.7 Nestlé introduced Nan, an infant-formula brand that is popular in Latin America, in the American market Targeted at Hispanic mothers, Nestlé Nan’s instructions are printed in Spanish on the front of the can Other brands have English-language labeling on the outside; Spanish-language instructions are printed on the reverse side.8 In 2008, the United States enacted a country-of-origin labeling (COOL) law The law requires supermarkets and other food retailers to display information that identifies the country that meat, poultry, and certain other food products come from.9 Aesthetics In Chapter 4, the discussion of aesthetics included perceptions of color in different parts of the world Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package Likewise, aesthetic styles, such as the degree of complexity found on a label, are perceived differently in different parts of the world For example, it has been said that German wines would be more appealing in export markets if the labels were simplified Aesthetic elements that are deemed appropriate, attractive, and appealing in one’s home country may be perceived differently elsewhere In some cases, a standardized color can be used in all countries; examples include the distinctive yellow color on Caterpillar’s earthmoving equipment and its licensed outdoor gear, the red Marlboro chevron, and John Deere’s signature green In other instances, color choices should be changed in response to local perceptions It was noted in Chapter that white is associated with death and bad luck in some Asian countries; when GM executives were negotiating with China for the opportunity to build cars there, they gave Chinese officials gifts from upscale Tiffany & Company in the jeweler’s signature blue box The Americans astutely replaced Tiffany’s white ribbons with red ones because red is considered a lucky color in China and white has negative connotations (see The Cultural Context, p 310) Packaging aesthetics are particularly important to the Japanese This point was driven home to the chief executive of a small U.S company that manufactures an electronic device for controlling corrosion After spending much time in Japan, the executive managed to secure several orders for the device Following an initial burst of success, Japanese orders dropped off; for one thing, the executive was told, the packaging was too plain “We couldn’t understand why we needed a five-color label and a custom-made box for this device, which goes under the hood of a car or in the boiler room of a utility company,” the executive said While waiting for the bullet train in Japan one day, the executive’s local distributor purchased a cheap Steven L Gray and Ian Brat, “Read It and Weep? Big Mac Wrapper to Show Fat, Calories,” The Wall Street Journal (October 26, 2005), p B1 Miriam Jordan, “Nestlé Markets Baby Formula to Hispanic Mothers in U.S.,” The Wall Street Journal (March 4, 2004), p B1 David Kesmodel and Julie Jargon, “Labels Will Say if Your Beef Was Born in the USA,” The Wall Street Journal (September 23, 2008), p B1 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 10 • BRAND AND PRODUCT DECISIONS IN GLOBAL MARKETING watch at the station and had it elegantly wrapped The distributor asked the American executive to guess the value of the watch based on the packaging Despite all that he had heard and read about the Japanese obsession with quality, it was the first time the American understood that, in Japan, “a book is judged by its cover.” As a result, the company revamped its packaging, seeing to such details as ensuring that strips of tape used to seal the boxes were cut to precisely the same length.10 Basic Branding Concepts A brand is a complex bundle of images and experiences in the customer’s mind Brands perform two important functions First, a brand represents a promise by a particular company about a particular product; it is a type of quality certification Second, brands enable customers to better organize their shopping experience by helping them seek out and find a particular product Thus, an important brand function is to differentiate a particular company’s offering from all others Customers integrate all their experiences of observing, using, or consuming a product with everything they hear and read about it Information about products and brands comes from a variety of sources and cues, including advertising, publicity, word of mouth, sales personnel, and packaging Perceptions of service after the sale, price, and distribution are also taken into account The sum of impressions is a brand image, defined as perceptions about a brand as reflected by brand associations that consumers hold in their memories.11 Brand image is one way that competitors in the same industry sector differentiate themselves Take Apple and Nokia, for example Both market smartphones Former Apple CEO Steve Jobs was a constant media presence who was a master at generating buzz; the iPhone has received stellar reviews for its sleek look, large screen, and user-friendly features Apple’s retail stores reinforce the brand’s hip, cool image By contrast, Nokia’s brand image is more heavily skewed toward technology; few Nokia users are likely to know the name of the company’s chief executive.12 Another important brand concept is brand equity, which represents the total value that accrues to a product as a result of a company’s cumulative investments in the marketing of the brand Just as a homeowner’s equity grows as a mortgage is paid off over the years, brand equity grows as a company invests in the brand Brand equity can also be thought of as an asset representing the value created by the relationship between the brand and customers over time The stronger the relationship, the greater the equity For example, the value of global megabrands such as Coca-Cola and Marlboro runs in the tens of billions of dollars.13 As outlined by branding expert Kevin Keller, the benefits of strong brand equity include: 䊉 䊉 䊉 䊉 䊉 䊉 䊉 Greater loyalty Less vulnerability to marketing actions Less vulnerability to marketing crises Larger margins More inelastic consumer response to price increases More elastic consumer response to price decreases Increased marketing communication effectiveness14 Warren Buffett, the legendary American investor who heads Berkshire Hathaway, asserts that the global power of brands such as Coca-Cola and Gillette permits the companies that own 10 Nilly Landau, “Face to Face Marketing Is Best,” International Business (June 1994), p 64 Kevin Lane Keller, Strategic Brand Management: Building, Measuring, and Managing Brand Equity (Upper Saddle River, NJ: Prentice Hall, 1998), p 93 12 Cassell Bryan-Low, “Apple, Nokia Face off in UK Music-Phone Clash,” The Wall Street Journal (October 18, 2007), p B3 13 For a complete discussion of brand equity, see Kevin Lane Keller, Strategic Brand Management: Building, Measuring, and Managing Brand Equity (Upper Saddle River, NJ: Prentice Hall, 1998), Chapter 14 Kevin Lane Keller, Strategic Brand Management: Building, Measuring, and Managing Brand Equity (Upper Saddle River, NJ: Prentice Hall, 1998), p 93 11 289 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 49 290 PART • THE GLOBAL MARKETING MIX them to set up a protective moat around their economic castles As Buffett once explained, “The average company, by contrast, does battle daily without any such means of protection.”15 That protection often yields added profit because the owners of powerful brand names can typically command higher prices for their products than can owners of lesser brands In other words, the strongest global brands have tremendous brand equity Companies develop logos, distinctive packaging, and other communication devices to provide visual representations of their brands A logo can take a variety of forms, starting with the brand name itself For example, the Coca-Cola brand is expressed in part by a word mark consisting of the words Coke and Coca-Cola written in a distinctive white script The “wave” that appears on red Coke cans and bottle labels is an example of a nonword mark logo, sometimes known as a brand symbol Nonword marks such as the Nike swoosh, the three-pronged Mercedes star, and McDonald’s golden arches have the great advantage of transcending language and are therefore especially valuable to global marketers To protect the substantial investment of time and money required to build and sustain brands, companies register brand names, logos, and other brand elements as trademarks or service marks As discussed in Chapter 5, safeguarding trademarks and other forms of intellectual property is a key issue in global marketing Local Products and Brands “There is a strong local heritage in the brewing industry People identify with their local brewery, which makes beer different from detergents or electronic products.”16 Karel Vuursteen, chairman, Heineken A local product or local brand is one that has achieved success in a single national market Sometimes a global company creates local products and brands in an effort to cater to the needs and preferences of particular country markets For example, Coca-Cola has developed several branded drink products for sale only in Japan, including a noncarbonated, ginseng-flavored beverage; a blended tea known as Sokenbicha; and the Lactia-brand fermented milk drink In India, Coca-Cola markets Kinely brand bottled water The spirits industry often creates brand extensions to leverage popular brands without large marketing expenditures For example, Diageo PLC markets Gordon’s Edge, a gin-based ready-to-drink beverage in the United Kingdom Allied Domecq created TG, a brand flavored with Teacher’s Scotch and guaraná, in Brazil.17 Local products and brands also represent the lifeblood of domestic companies Entrenched local products and brands can represent significant competitive hurdles to global companies entering new country markets In China, for example, a sporting goods company started by Olympic gold medalist Li Ning sells more sneakers than global powerhouse Nike In developing countries, global brands are sometimes perceived as overpowering local ones Growing national pride can result in a social backlash that favors local products and brands In China, a local TV manufacturer, Changhong Electric Appliances, has built its share of the Chinese market from percent to more than 22 percent by cutting prices and using patriotic advertising themes such as “Let Changhong hold the great flag of revitalizing our national industries.” White-goods maker Haier Group has also successfully fought off foreign competition and now accounts for 40 percent of China’s refrigerator sales In addition, Haier enjoys a 30 percent share of both the washing machine and air conditioner markets Slogans stenciled on office walls delineate the aspirations of company president Zhang Ruimin: “Haier—Tomorrow’s Global Brand Name” and “Never Say ‘No’ to the Market.”18 In 2002, Haier Group announced a strategic alliance with Taiwan’s Sampo Group The deal, valued at $300 million, called for each company to manufacture and sell the other’s refrigerators and telecommunications products both globally and locally International Products and Brands International products and international brands are offered in several markets in a particular region For example, a number of “Euro products” and “Euro brands” such as Daimler’s two-seat Smart car are available in Europe; the Smart was recently launched in the United States as well 15 John Willman, “Labels That Say It All,” Financial Times—Weekend Money (October 25–26, 1997), 16 John Willman, “Time for Another Round,” Financial Times (June 21, 1999), p 15 17 Deborah Ball, “Liquor Makers Go Local,” The Wall Street Journal (February 13, 2003), p B3 18 p John Ridding, “China’s Own Brands Get Their Acts Together,” Financial Times (December 30, 1996), p 6; Kathy Chen, “Global Cooling: Would America Buy a Refrigerator Labeled ‘Made in Quingdao’?” The Wall Street Journal (September 17, 1997), pp A1, A14 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 10 • BRAND AND PRODUCT DECISIONS IN GLOBAL MARKETING 291 (see Case 10-2) The experience of GM with its Corsa model in the early 1990s provides a case study in how an international product or brand can be taken global The Opel Corsa was a new model originally introduced in Europe GM then decided to build different versions of the Corsa in China, Mexico, and Brazil As David Herman, chairman of Adam Opel AG, noted, “The original concept was not that we planned to sell this car from the tip of Tierra del Fuego to the outer regions of Siberia But we see its possibilities are limitless.” GM calls the Corsa its “accidental world car.”19 Honda had a similar experience with the Fit, a five-door hatchback built on the company’s Global Small Car platform Following Fit’s successful Japanese launch in 2001, Honda rolled out the vehicle in Europe (where it is known as Jazz) Over the next few years, Fit was rolled out in Australia, South America, South Africa, and China The Fit made its North American market debut in 2006 Global Products and Brands Globalization is putting pressure on companies to develop global products and to leverage brand equity on a worldwide basis A global product meets the wants and needs of a global market A true global product is offered in all world regions, including the Triad and in countries at every stage of development A global brand has the same name and, in some instances, a similar image and positioning throughout the world Some companies are well established as global brands For example, when Nestlé asserts that it “Makes the very best,” the quality promise is understood and accepted globally The same is true for Gillette (“The best a man can get”), BMW (“The ultimate driving machine”), GE (“Imagination at work”), Harley-Davidson (“An American legend”), Visa International (“Life takes Visa”), and many other global companies (see Exhibit 10-2) Exhibit 10-2 In French (“La perfection au masculin”), German (“Für das Besteim Mann”), Italian (“Il meglio di un uomo”), Portuguese (“O melhorpara o homem”), or any other language, Gillette’s trademarked brand promise is easy to understand Source: Stephen Cherin/Getty Images 19 Diana Kurylko, “The Accidental World Car,” Automotive News (June 27, 1994), p 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 49 292 PART • THE GLOBAL MARKETING MIX Former Gillette CEO Alfred Zeien explained his company’s approach as follows: A multinational has operations in different countries A global company views the world as a single country We know Argentina and France are different, but we treat them the same We sell them the same products, we use the same production methods, we have the same corporate policies We even use the same advertising—in a different language, of course.20 Zeien’s remarks reflect the fact that Gillette creates competitive advantage by marketing global products and utilizing global branding strategies Gillette reaps economies of scale associated with creating a single ad campaign for the world and the advantages of executing a single brand strategy By contrast, Peter Brabeck-Letmathe, the former CEO of Nestlé, has a different perspective: We believe strongly that there isn’t a so-called global consumer, at least not when it comes to food and beverages People have local tastes based on their unique cultures and traditions— a good candy bar in Brazil is not the same as a good candy bar in China Therefore, decision making needs to be pushed down as low as possible in the organization, out close to the markets Otherwise, how can you make good brand decisions? A brand is a bundle of functional and emotional characteristics We can’t establish emotional links with consumers in Vietnam from our offices in Vevey Whichever view prevails at headquarters, all global companies are trying to increase the visibility of their brands, especially in key markets such as the United States and China Examples include Philips with its “Sense and simplicity” global image advertising and Siemens’ recent “Siemens answers” campaign In the twenty-first century, global brands are becoming increasingly important As one research team noted: “We have to shift to high value-added products, and to that we need to improve our brand.”22 Noboru Fujimoto, president, Sharp Electronics Corporation People in different nations, often with conflicting viewpoints, participate in a shared conversation, drawing upon shared symbols One of the key symbols in that conversation is the global brand Like entertainment stars, sports celebrities, and politicians, global brands have become a lingua franca for consumers all over the world People may love or hate transnational companies, but they can’t ignore them.21 These researchers note that brands that are marketed around the world are endowed with both an aura of excellence and a set of obligations Worldwide, consumers, corporate buyers, governments, activists, and other groups associate global brands with three characteristics; consumers use these characteristics as a guide when making purchase decisions: 䊉 䊉 䊉 Quality signal Global brands compete fiercely with each other to provide world-class quality A global brand name differentiates product offerings and allows marketers to charge premium prices Global myth Global brands are symbols of cultural ideals As noted in Chapter 7, marketers can use global consumer culture positioning (GCCP) to communicate a brand’s global identity and link that identity to aspirations in any part of the world Social responsibility Customers evaluate companies and brands in terms of how they address social problems and how they conduct business (see Exhibit 10-3) Note that a global brand is not the same thing as a global product For example, personal stereos are a category of global product; Sony is a global brand Many companies, including Sony, make personal stereos However, Sony created the category 30 years ago when it introduced the 20 Victoria 21 Griffith, “As Close as a Group Can Get to Global,” Financial Times (April 7, 1998), p 21 Douglas B Holt, John A Quelch, and Earl L Taylor, “How Global Brands Compete,” Harvard Business Review 82, no (September 2004), p 69 22 Peter Landers, “Sharp Covets the Sony Model: A Sexy, High-End Image,” The Wall Street Journal (March 11, 2002), p A13 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 10 • BRAND AND PRODUCT DECISIONS IN GLOBAL MARKETING 293 Exhibit 10-3 Nucor is a steel company best known for its pioneering use of the minimill Minimills produce steel by melting scrap in electric arc furnaces This process is much more efficient than that used by traditional integrated steel producers Nucor uses print and online media for an integrated general branding campaign featuring the tagline “It’s our nature.” The campaign is designed to raise awareness about the company’s stance on a variety of issues, including the environment, energy conservation, and the importance of creating a strong corporate culture Source: Nucor Walkman in Japan The Sony Walkman is an example of combination or tiered branding, whereby a corporate name (Sony) is combined with a product brand name (Walkman) By using combination branding, marketers can leverage a company’s reputation while developing a distinctive brand identity for a line of products The combination brand approach can be a powerful tool for introducing new products Although Sony markets a number of local products, the company also has a stellar track record as a global corporate brand, a creator of global products, and a marketer of global brands For example, using the Walkman brand name as a point of departure, Sony created the Discman portable CD player and the Watchman portable TV Sony’s recent global product brand offerings include Bravia brand HDTVs and the PlayStation family of video game consoles and portables Co-branding is a variation on combination branding in which two or more different company or product brands are featured prominently on product packaging or in advertising Properly implemented, co-branding can engender customer loyalty and allow companies to achieve synergy However, co-branding can also confuse consumers and dilute brand equity The approach works most effectively when the products involved complement each other Credit card companies were the pioneers, and today it is possible to use cards to earn frequent-flyer miles and discounts on automobiles Another well-known example of co-branding is the Intel Inside campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers Global companies can also leverage strong brands by creating brand extensions This strategy entails using an established brand name as an umbrella when entering new businesses or developing new product lines that represent new categories to the company British entrepreneur Richard Branson is an acknowledged master of this approach: The Virgin brand has been attached to a wide range of businesses and products (www.virgin.com) Virgin is a global brand, and the company’s businesses include an airline, a railroad franchise, retail stores, movie theaters, financial services, and health clubs Some of these businesses are global, and some are local For example, Virgin Megastores are found in many parts of the world, whereas Virgin Rail Group and Virgin Media operate only in the United Kingdom The brand has been built on Branson’s shrewd ability to exploit weaknesses in competitors’ customer service skills, as well as a flair for self-promotion Branson’s business philosophy is that brands are built around reputation, quality, innovation, and price rather than image Although Branson is intent on establishing Virgin as the British brand of the new millennium, some industry observers wonder if the brand has been spread too thin Branson’s newest ventures include Virgin America Airlines and Virgin Galactic 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 49 554 AUTHOR/NAME INDEX Todman, Michael, 191 Tomkins, Richard, 497 Tompkins, Richard, 436n33 Tovalds, Linus, 456e Toy, Stewart, 349 Trachtenberg, Jeffrey A., 477n12 Tran, Jacquelyn, 251 Tran, Khanh T L., 179n36 Trani, John, 266 Traub, Marvin, 360 Trichet, Jean-Claude, 66e Tripodi, Joseph, 503t Trofimov, Yaroslav, 32 Trout, Jack, 213, 214n49 Tsui, Bonnie, 349 Tucker, Emma, 145n29, 146n31 Tuckman, Johanna, 76n5 Tuller, Lawrence, 441 Turban, Efraim, 162n1 Tylee, John, 400n32 U Uchitelle, Louis, 266n19, 298n28 Uhler, Kirk, 159 Ulrich, Fernando, 96 Underwood, Laurie, 381 Unger, Lynette, 216n54 Urban, Glen L., 181n39 Urry, Maggie, 275 Uva, Joe, 436 V Vagts, Detlev, 146n30 Valdez, Humberto Garza, 205 Valencia, Jorge, 306n45 Valle, Diego Della, 300 Van Dyck, Rebecca, 503t Vanjoki, Ansii, 184 Vascellaro, Jessica, 454n27, 467 Vence, Deborah L., 189 Verbeke, Lain, 492n32 Verity, John W., 165n7 Verzariu, Pompiliu, 343, 343n42 Veseth, Mike, 65 Villalonga, Juan, 111 Viscounty, Perry J., 337n28–29 Vlasic, Bill, 24n50, 36n3, 307n52 Voigt, Kevin, 110n25 Voinovich, Vladimir, 203e Von Hayek, Friedrich August, 34e, 35 Von Reppert-Bismarck, Juliane, 232n8, 252 Voyle, Susanna, 379 Vranica, Suzanne, 32, 216n52, 296n24, 393n16, 451n20 Vuursteen, Karel, 290 W Wagoner, Rick, 265, 297, 297e Wagstyl, Stefan, 54n35 Wahl, Grant, 7n12 Waits, Tom, 141 Wakabayashi, Daisuke, 490n30 Waldmeir, Patty, 125, 310, 438 Walker, Marcus, 62, 96 Walker, Ulrich, 317 Wallis, William, 92n25, 466 Walsh, Nick Paton, 203 Walton, Sam, 195 Wandell, Keith, 171e Wang, J T., 33 Ward, Andrew, 282, 299n29, 456n32, 519n41 Ward, Stephen, 446 Warner, Fara, 107n14 Warner, Melanie, 471n2 Warren, Harry, 370 Waslekar, Sundeep, 199n20 Wassener, Bettina, 307n49 Waters, Alice, 112e Waters, Richard, 467, 487 Watson, Alexander, 156 Weaver, Courtney, 130n4 Webber, Alan M., 12n26, 24n48, 500n2, 505n18, 512n29 Weinbach, Jon, 124 Weinberger, Marc G., 398n26 Weingarten, Marc, 455n29 Weise, Elizabeth, 326 Weissman, Robert, 407 Welch, Jack, 500, 520 Wellian, Edwin, 499 Wells, Ken, 384n3, 387n11 Wells, Melanie, 397n23 Wen Jiabao, 518 Wentz, Laurel, 223, 267, 313n64 Werner, Helmut, 336 Wessel, David, 55n39, 334n20 Wessels, Maja, 303 Westergaard, Kurt, 105 Whalen, Jeanne, 395n18 Whelen, Tensie, 326 Whipp, Lindsay, 249n21 White, Andrew, 428 White, Erin, 369, 392n12 White, Gregory L., 37, 262 White, Joseph B., 307n50, 496, 515n34 White, Martha C., 251 Whitehorn, Will, 401 Whitehouse, Mark, 57n41 Whitwam, David, 24, 190, 191, 473, 500, 504, 512 Wiersema, Fred, 449n13 Wiesmann, Gerrit, 305n42 Wiggins, Jenny, 32, 47n23, 282, 409, 518n39, 525 Wijm, Annemieke, 326 Wijngaert, Geert Vanden, 131e Wilke, Jerry G., 171 Wilke, John R., 143n26–27, 340n37 Williams, Evan, 467 Williams, Frances, 139n18 Williams, Peter, 369 Williamson, Elizabeth, 99 Williamson, Hugh, 392 Willman, John, 59n45, 107n15, 275, 290n15–16 Wilson, James, 395 Winestock, Geoff, 32, 231 Wingfield, Nick, 124, 353n2 Winslow, Ron, 267 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 AUTHOR/NAME INDEX Winterhalter, Jürgen, 213 Winterkorn, Martin, 468 Wise, Peter, 96 Wiseman, Paul, 125 Wisnefski, Stephen, 171 Witkowski, Terrence H., 519n40 Witt, James Lee, 407 Witzel, Morgen, 407 Womack, James P., 513n32 Wonacott, Peter, 50n30, 167n10, 234, 466 Wong, Elaine, 317 Wong, Karen, 179 Woo-Choong, Kim, 261 Woodford, Michael, 504t Woodruff, David, 513n31 Woodyard, Chris, 99, 434n31, 496 Wooldridge, Adrian, 6, 6n10, 194, 194n6, 201n25, 230n5 Woolworth, Frank, 359 Worthley, Reginald, 104n10 Wozniak, Steve, 444 Wrathall, Claire, 438 Wright, Nathan, 467 Wright, Robert, 375 Wright, Tom, 315, 428 Wynter, Leon E., 397n22 Y Yajima, Hiroshi, 196–197 Yang, Julie, 99 Yang, Michael, 264 Yang, Yuanqing, 439 Yasin, Yevgeny, 37 Yates, Simon, 439 Yavas, Ugur, 137, 400n33 Yee, Amy, 347 Yeh, Andrew, 223 Yergin, Daniel, 23, 23n47, 43, 43n16 Ying, John, Yip, George S., 503n11 Yong Tae Bang, 109n23 Yongtu, Long, 41 Yoshino, Michael, 20n44, 268n21–22, 270n24, 273n34, 482n23 Young, Allan, 497 Young, Paul, 200e Young-Scrivner, Annie, 503t Yuan, Li, 354n6 Yudashkin, Valentin, 203 Z Zachary, G Pascal, 481n20 Zagaris, Michael, 7e Zambello, Ermor, 79 Zambrano, Lorenzo, 167, 473 Zamiska, Nicholas, 22n46 Zapatero, José Luis Rodríguez, 96 Zaun, Todd, 501n8 Zeien, Alfred, 292, 298 Zellner, Wendy, 362n20 Zennström, Niklas, 463 Zetsche, Dieter, 316, 336 Zhang, Qichen, 516 Zhizhi, Wang, 394 Zif, J., 279n52 Zimmerman, Ann, 162n4, 361n16, 367n31 Zindane, Zinedine, 124 Zoellick, Robert B., 231 Zou, Shaoming, 10n23 Zuccardi, Jose Alberto, 64 Zuloaga, Guillermo, 44 Zurita, Ivan, 49e Zuykov, Sergei, 140 555 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 This page intentionally left blank 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/Organization Index Note: Page numbers with e, f, or t represent exhibits, figures, and tables respectively A ABB, 512 ACC See Arab Cooperation Council (ACC) Acer Inc., 33 Adaptation approach, 18 Adaptation pricing, 336 Adaptation strategy, 303 Adidas, 395, 396e Adopter categories in diffusion of innovation, 120, 120f Adoption process in diffusion of innovation, 118–119 Advanced Micro Devices (AMD), 144e Advertising organizations agencies and brands, 389–392, 389t global, 383–398 public relations and publicity, 400–405 Advocacy advertising, 402–403 Aesthetics culture, 104–106 product, 288–289 Affluent materialists, 202 Africa, 91–94 digital revolution in, 442–443 East African Community, 93, 93t ECOWAS, 91–93 marketing issues in, 94 SADC, 93 African Growth and Opportunities Act (AGOA), 94 Agencies and brands, 389–392, 389t Omnicom Group family tree, 390f selecting, 391–392 top 10 global advertising agency brands, 391t top 20 global advertising agencies, 389f Agent, 352 Age segmentation, 199–200 AGOA See African Growth and Opportunities Act (AGOA) Air transportation, 374 Amazon, 463e Amazon.com domain names, 454t Amazon Web Services (AWS), 457 American Standard Code for Information Interchange (ASCII), 455 AMU See Arab Maghreb Union (AMU) Analysis, choosing units of, 170 Andean Community, 76–77, 76f, 77t income and population, 77t map of, 76f Anheuser-Busch/InBev, 140e Antitrust, 143–146, 145t Apple, 257, 354e Arab Cooperation Council (ACC), 91 Arab Maghreb Union (AMU), 91 Arbitration, 151 Art direction and art directors, 394–396 ASEAN See Association of Southeast Asian Nations (ASEAN) Asia alliances with competitors, 272 cooperative strategies in, 274–278 Japan: keiretsu, 274–277 South Korea: chaebol, 278 fine wine prices, 330 Maslow’s needs hierarchy equivalent, 300f Asia-Pacific, 81–83 ASEAN, 81–83, 82f, 82t marketing issues in, 83 Assembler value chains, 514–515 Association of Southeast Asian Nations (ASEAN), 81–83, 82f, 82t income and population, 82t map of, 82f Attitude, culture and, 102 Auto industry joint ventures, 262 AvtoVAZ, 262 B Balance of payments, 54–55, 54–55t Bandwidth, 456 Bang & Olufsen, 218e Bargaining power of buyers, 471 of suppliers, 471–472 Barter, 343 Bartle Bogle Hegarty (BBH), 408 Behavior segmentation, 202–204 Beliefs, culture and, 102–103 Benefit segmentation, 204 Benetton Group, 478–479 Big emerging markets (BEMs), 45 Big Mac Index, 58 Bill of exchange, 241 Bluetooth, 459 Boeing, 20, 273 Bosch, 13e “Bottom of the pyramid” (BOP), 49 BP, 382–383, 407 Brand, 289 co-branding, 293 country-of-origin effect, 300–303 defined, 289 equity, 289 global, 291–294, 294t brand development, 294–296 brand leadership, 295–296, 295t image, 289 international, 290–291 local, 290 top 10 global advertising agency brands, 391t Brazil billboards banned in, 432 market research in, 178 Bribery, 148–150, 148t BRIC, 45 Bridgestone, 215e Broadband, 456–457 Broad market strategies, 474–475 557 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 49 558 SUBJECT/ORGANIZATION INDEX Burberry Group, 11, 11e Burlington Northern Santa Fe (BNSF), 373 Business intelligence (BI), 161–162 See also Global market research Business-to-business marketing (b-to-b or B2B), 352 Business-to-consumer marketing (b-to-c or B2C), 352 C CACM See Central American Common Market (CACM) Calculating prices, 324–329, 328–329t Call option, 60 Capital account, 55 Capital resources, 484 Caribbean Community and Common Market (CARICOM), 80–81 income and population, 80t map of, 81f Caribbean Free Trade Association (CARIFTA), 80 See also Caribbean Community and Common Market (CARICOM) CARICOM See Caribbean Community and Common Market (CARICOM) CARIFTA See Caribbean Free Trade Association (CARIFTA) Carrefour SA, 380–381 Cash in advance, 242 Catalogs, 427–429 Central American Common Market (CACM), 74–75 See also Central American Integration System (SICA) Central American Integration System (SICA), 74–75, 75f, 75t countries, map of, 75f income and population, 75t Centrally planned capitalism, 42–45, 43t, 44–45t Centrally planned socialism, 42 CFR (cost and freight), 327, 329 Chaebol, 278 Chance in national competitive advantage, 486 Changing rules to create competitive advantage, 480–481 Chateau Lafite Rothschild, 330 China Expo 2010 Shanghai China, 410–411 furniture exports from, 252 localizing ad executions in, 394 new media in, 461 scolded by Western business executives, 516 shoe exports from, 252 tariff rates for, NTR vs non-NTR, 236t Chinese Value Survey (CVS), 114–115 Chivas Regal, 408–409 Cigarettes, promoting in emerging markets, 428 CITGO Petroleum, 48e Civil law, common law vs., 136–137 Civil-law country, 136 Cloud computing, 457 Cluster analysis, 182 Coach, 160–161, 189 Co-branding, 293 Coca-Cola Company, 11, 401, 433e Collaborating to create competitive advantage, 481–482 Comfortable belongers, 202 Commercial Fan Moteur (CFM) International, 272–273 Common Agricultural Policy (CAP), 230 Common external tariffs (CETs), 69 Common-law country, 136 Common law vs civil law, 136–137 Common market, 69 Common Market of the South (Mercosur), 77–78, 78t income and population, 78t map of, 76f Communication improvements, 21 Companion products, 322 Compensation trading, 344–345 Competition positioning, 215–216 potential, 208 Competition, forces influencing, 469–473 bargaining power of buyers, 471 bargaining power of suppliers, 471–472 rivalry among competitors, 472–473 threat of new entrants, 469–471 threat of substitute products, 471 Competitive advantage, 6–8, 473 current issues in, 487–493 defined, 6, 473 flagship model, 477–479 generic strategies for creating, 474–477 location of companies with global competitive advantage, 488t national, 482–487 research on, 492–493 strategic intent to create, 479–482 Competitive behavior, 334–335 Competitive-currency politics, 57 Concentrated global marketing, 213 Confiscation, 134 Conflict resolution, 150–151 Conjoint analysis, 183–184 Consumer Electronics Association, 70e Consumer panel, 176 Consumer products and services, distribution of, 352–355, 352f Consumer sales promotions, 411 Consumer segments, 201–202, 202t Content sites, 451 Contract manufacturing, 257–258 Convenience stores, 360–361 Convergence, 447–448, 448f Cooperative exporter, 238 Cooperative strategies in Asia, 274–278 twenty-first century, 278–279 Copy and copywriters, 395–396 Copyright, 138–142 Core competence and leadership, 502–503, 503t Corporate social responsibility (CSR), 517–522, 522t Corruption, 148–150, 148t Cost, insurance, freight (CIF) named port, 327, 329 Cost-based transfer price, 341 Cost focus and focused differentiation, 475–477 Cost leadership, 474 Cost/quality, 488 Counterfeiting, 138 Counterpurchase, 343–344 Countertrade, 342–345 barter, 343 compensation trading, 344–345 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/ORGANIZATION INDEX counterpurchase, 343–344 offset, 344 switch trading, 345 Countervailing duties (CVDs), 237 Country concentration and market diversification, 279–280 Country diversification and market concentration, 280 Country infrastructure, sourcing and, 247–248 Country-of-origin effect, 300–303 Couponing, 415–416 Coupon promotions, regulation of, 414t Creative execution, 393–394 Creative strategy in global advertising, 393–398 art direction and art directors, 394–396 copy and copywriters, 395–396 cultural considerations, 396–398 CSX, 373 Cuba, 126–127 Cultural considerations in global advertising, 395–398 Cultural typology, Hofstede’s, 113–117 collective-individual orientation in, 117 CVS data and, 114–115 future orientation in, 116 gender differentiation in, 116 individualism/collectivism in, 114, 117 long-term orientation vs short term in, 114–115 masculinity/femininity in, 114, 115, 117 power distance in, 113, 115, 116 for selected countries, 114t uncertainty avoidance in, 114, 115, 116 Culture, 100–125 aesthetics and, 104–106 attitude and, 102 beliefs and, 102–103 communication and (See Language) defined, 102 dietary preferences and, 106–107 elements of, 102 environmental sensitivity and, 121–122, 121f high- and low-context cultures, 112–113, 113t language and, 107–111 marketing’s impact on, 111–112 McDonaldization of, 111–112 political (See Political environment) religion and, 103–104 self-reference criterion and, 117–118 unbiased perception of, 118 values and, 103 See also Cultural typology, Hofstede’s; Diffusion of innovation, Roger’s Currency fluctuations, 330–332 Current account, 54 Customer needs, sourcing and, 247 Customer relationship management (CRM), 164–165 Customs and Border Protection (CBP), 243 Customs duties, 236–237 Customs Trade Partnership Against Terrorism (C-TPAT), 243 Customs union, 69 D Daimler AG, 402e DaimlerChrysler, 316–317 Danish cartoons, 105 559 Data analysis, 181–185, 181t, 182t, 183f, 184t cluster analysis in, 182 comparative analysis and market estimation by analogy, 184–185 conjoint analysis in, 183–184 factor analysis in, 181–182 multidimensional scaling in, 182–183, 182t, 183f Data availability, examining, 170–172, 172t Data collection issues, 174–175 Data warehouses, 165 Deere & Company, 23e Defense Advanced Research Projects Agency (DARPA), 444 Delivered duty paid (DDP), 327 Demand conditions in national competitive advantage, 484–485 composition of home demand, 484 means by which a nation’s products and services are pushes or pulled into foreign countries, 484–485 rapid home market growth, 484 size and pattern of growth of home demand, 484 Democratization of information, 21 Demographic segmentation, 195–201 by age, 199–200 by gender, 200–201 by income and population, 196–199 Devaluation, 57 Diageo China, 408 Dietary preferences, culture and, 106–107 Diet plans, marketing worldwide, 310 Differentiated global marketing, 213 Differentiation, 474–475 Diffusion of innovation, Roger’s, 118–121 adopter categories in, 120, 120f adoption process in, 118–119 innovations in, characteristics of, 119 in Pacific Rim countries, 120–121 Digital books, 463–464 Digital revolution, 443–467 broadband, 456–457 cloud computing, 457 convergence, 447–448, 448f digital books and electronic reading devices, 463–464 disruptive technologies, 448–449 in France, 446 global e-commerce, 450–453, 450t history, 443–447 Internet phone service, 463 mobile advertising and mobile commerce, 458–460 mobile gaming, 462 mobile music, 460–462 smartphones, 457–458 value networks, 448–449 Web site design and implementation, 453–455 Direct mail, 427 Direct marketing, 425–431, 426t catalogs, 427–429 direct mail, 427 infomercials, 429–430 interactive television, 431 teleshopping, 430–431 Discount retailers, 361 Discriminatory procurement policies, 232 Dispute settlement, 151–152 Disruptive technologies, 448–449 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 49 560 SUBJECT/ORGANIZATION INDEX Dissatisfied survivors, 202 Distribution channels, 351–381 establishing and working with intermediaries, 356–358 global retailing, 359–370 logistics management, 377 objectives, 351–352 physical distribution, 370–377 supply chains, 370–377, 371f terminology and structure, 352–356 consumer products and services, 352–355, 352f industrial products, 355–356, 356f value chains, 370–377, 371f Distributor, 352 Diversification, 5, 5t Dr Reddy’s Laboratories, 477 Documentary collections (sight or time drafts), 241–242, 242f Documentary credit, 240–241, 241f Downstream value chains, 517–519 Draft, 241–242 Dual adaptation (product-communication adaptation), 307–308 Dubai Ports World (DP World), 375 Dumping, 237, 339–340 DuPont, 143e Dynamically continuous innovations, 311 E EC See European Community (EC) E-commerce, 450–453, 450t Economic Community of West African States (ECOWAS), 91–93 income and population of, 92t map of, 92f Economic exposure, 58–59 Economic systems, 38–44, 39f centrally planned capitalism, 40–43, 41t, 42t centrally planned socialism, 40 descriptive criteria of, 39 international finance, 56–58, 57f, 58t market capitalism, 39, 40t market socialism, 40–43, 41t, 42t Economic union, 69–70 ECOWAS See Economic Community of West African States (ECOWAS) Efficient consumer response (ECR), 163 80/20 rule, 204 Electronic data interchange (EDI), 162 Electronic point of sale (EPOS), 163 Electronic reading devices, 463–464 Embraer, 79 Enabling conditions, 210 Entry barriers, 491–492 Environmental influences on pricing decisions, 330–335 competitive behavior, 334–335 currency fluctuations, 330–332 government controls, 333–334 inflationary environment, 332–333 regulations, 333–334 sourcing as strategic pricing tool, 335 subsidies, 333–334 Environmental sensitivity, culture and, 121–122, 121f Equity, brand, 289 Equity stake, 263 investment via, 263–269, 265t Estée Lauder, 222 Ethics, 326, 517–522 Ethnic segmentation, 205 Ethnocentric orientations, 17 Ethnocentric pricing, 335–336 EU See European Union (EU) European Central Bank (ECB), 66e European Community (EC), 84 See also European Union (EU) European Union (EU), 36, 84–88 GMOs, 133 income and population of nations in, 85–86t map of, 86f marketing issues in, 87 Microsoft and, 131 regulatory environment example, 153–154, 154t top 10 trading partners billions of €, 85f Exchange rate exposure, 59–60 Exchange risks and gains, 58t Executives of 2011, 504t Expanded Triad, 52 Expenditures and media vehicles in global advertising, 399 Experience transfers, 24 Export broker, 237 Export commission representative, 238 Export distributor, 238 Exporters/importers, top, 56t Export management company (EMC), 238 Export merchants, 238 Export price escalation, 324–329, 328–329t Export selling and export marketing, 225–253 additional export and import issues, 243 defined, 225 export activities, organizational, 227 export problems, potential, 228t key export participants, 237–238 national policies governing, 227–233 government actions to discharge imports and block market access, 230, 232–233, 232t government programs that support exports, 228–230 organizing for exporting in manufacturer’s country, 239 organizing for exporting in market country, 239–240 sourcing, 243–249 tariff systems, 233–237 trade barriers, examples of, 232t trade financing and methods of payment, 240–243 Express warranty, 286 Expropriation, 134 Extension approach, 17 Extension pricing, 335–336 Extension strategy, 303 External hedging methods, 59 Ex-works (EXW), 327 F Factor analysis, 181–182 Factor conditions in national competitive advantage, 483–484 capital resources, 484 human resources, 483 infrastructure resources, 484 knowledge resources, 483 physical resources, 483 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/ORGANIZATION INDEX Factor costs and conditions in sourcing, 245–247 Firm strategy in national competitive advantage, 485–486 First-mover advantage, 210 Flagship model, 477–479 Focus, 7–8 Focus group, 179–180 Forces influencing competition, 469 Ford Motor Company, 283 Foreign consumer culture positioning (FCCP), 217–218 Foreign Corrupt Practices Act (FCPA), 148–150 Foreign currency option, 60 Foreign direct investment (FDI), 259 Foreign exchange rates, sourcing and, 248–249 Foreign positioning, 216–219 Foreign purchasing agents, 237 Foreign sales corporation (FSC), 229 Formal market research, 167–185 assess value of research, 173 choose units of analysis, 170 data analysis, 181–185, 181t, 182t, 183f, 184t examine data availability, 170–172, 172t information requirement, 168–169, 169t interpretation and presentation, 185 problem definition, 169–170 research design, 173–180 Form utility, 351 Forward market, 59–60 France culinary arts, 108 digital revolution in, 446 Franchising, 258–259 Free alongside ship (FAS) named port, 327, 329 Free carrier (FCA), 327 Free on board (FOB) named port, 327, 329 Free trade area (FTA), 69 Free Trade Area of the Americas (FTAA), 81 Free trade zones (FTZ), 230 Freight forwarders, 238 FTAA See Free Trade Area of the Americas (FTAA) Full ownership, 263 investment via, 263–269, 265t G Gap, 15, 15e GATT See General Agreement on Tariffs and Trade (GATT) GCC See Gulf Cooperation Council (GCC) GE, 272–273 Gender segmentation, 200–201 General Agreement on Tariffs and Trade (GATT), 20–21, 26, 67–68, 72 See also World Trade Organization (WTO) General Motors (GM), 262, 297 Generic strategies for creating competitive advantage, 474–477 broad market strategies, 474–475 cost focus and focused differentiation, 475–477 cost leadership, 474 differentiation, 474–475 narrow target strategies, 475–477 Genetically modified organisms (GMOs), 133 Geocentric orientations, 18–19 Geocentric pricing, 337 Geographical and product division structures, 509–510, 509f Gerber, 267 Gillette, 291–292 Global advertising creative strategy, 393–398 expenditures and media vehicles, 399 media decisions, 398–400 standardization vs adaptation in content, 386–389 top 25 global marketers by ad spending, 385t Global brand, 291–294, 294t brand development, 294–296 brand leadership, 295–296, 295t Global company, 18 Global consumer culture positioning (GCCP), 216–217, 305 Global e-commerce, 450–453, 450t Global economic environment, 34–63 balance of payments, 54–55, 54–55t economic systems, 40–46, 41f market development, stages of, 45–54, 45t trade in merchandise and services, 55–60 world economy, overview of, 38–39 Global elite, 200 Global industry, Global integration, forces affecting, 20–26, 20f communication improvements, 21 information revolution, 21 leverage, 24–25 multilateral trade agreements, 20–21 product development costs, 21–22 quality, 22 restraining forces, 25–26 transportation improvements, 21 world economic trends, 22–23 See also Leverage Globalization defined, 6–7 opposition to, 26 Global localization, 12 Global marketers by ad spending, 385t Global marketing, 2–33, 303–309 communications, PR in, 404 defined, effective, examples of, 14t importance of, 15–16 innovation, 308–309 introduction and overview, 3–5 organizing for, 505–515 principles of, 5–8 product adaptation-communication extension, 307 product-communication adaptation (dual adaptation), 306–308 product-communication extension, 304–305 product-communications strategies, 309 product transformation, 307 responsibility for, 503t See also Global integration, forces affecting; Management orientations; Product/market matrix of growth strategies Global marketing of new products, 309–313 international new-product department, 312–313 new-product development, 311–312 new-product ideas, 310–311 testing, 313 561 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 49 562 SUBJECT/ORGANIZATION INDEX Global marketing strategy (GMS), 8–11 dimensions of, 10 vs single country marketing strategy, 10–11, 10t Global market research, 160–191 assess value of research, 173 choose units of analysis, 170 data analysis, 181–185, 181t, 182t, 183f, 184t examine data availability, 170–172, 172t headquarters’ control of, 186, 186t information requirement, 168–169, 169t information technology, 161–165 interpretation and presentation, 185 marketing information system as strategic asset, 187 problem definition, 169–170 process, 168f research design, 173–180 sources of market information, 166–167 See also Formal market research Global market segmentation, 193–223 behavior segmentation, 202–204 benefit segmentation, 204 choosing target markets or segments, 206–210 contrasting views of, 195 defined, 193 demographic segmentation, 195–201 ethnic segmentation, 205 positioning, 213–219 product-market decisions, 211–212, 211t psychographic segmentation, 201–202 in Russia, 203 targeting and target market strategy options, 212–213 concentrated global marketing, 213 differentiated global marketing, 213 standardized global marketing, 212 Global positioning, 216–219 Global positioning systems (GPS), 459 Global pricing decisions, 335–337 adaptation or polycentric pricing, 336 extension or ethnocentric pricing, 335–336 geocentric pricing, 337 Global retailing, 359–370 market expansion strategies, 368–370, 368f trends in, 364–368 types of retail operations, 359–360t, 359–364 Global strategic partnerships (GSPs), 268–273 alliances with Asian competitors, 272 characteristics of, 269f controversies, 273 examples of, 270t nature of, 268–271 success factors, 271 success stories, 272–273 Global strategy as leverage, 25 Global teens, 199 Global trade environment, 66–99 Africa, 91–94 Asia-Pacific, 81–83 European Union, 84–88 Latin America, 81–83 Middle East, 89–91 North America, 71–73, 74f preferential trade agreement, 68–70, 71f WTO, 67–68 Globovision television, 44 Google, 461 Government controls, 333–334 Government in national competitive advantage, 486–487 Gray market goods, 337–338 Great Britain, social commentary from, Greenfield investment, 263–264 Gross domestic product (GDP), 38, 40 Gross National Happiness (GNH), 88 Gross national income (GNI), 38n7, 45 high-income countries, 51–52 lower-middle-income countries, 46–47 low-income countries, 45–46 upper-middle-income countries, 47–48 Group of Eight (G-8), 51 Group of Seven (G-7), 51 Group of Twenty (G-20), 51 Gulf Cooperation Council (GCC), 90–91, 90t income and population, 90t map of, 90f H Hard discounters, 362 Harley-Davidson, 171 Harmonization, 87 Harmonized Tariff System (HTS), 230, 235t Headquarters’ control of market research, 186, 186t Hedging, 59 Henkel, 305 High-context cultures, 112–113, 113t High-income countries, 51–52 Home Depot, 264, 264e Human resources, 483 Hypercompetitive industries, 487–492, 489t cost/quality, 488 entry barriers, 491–492 timing and know-how, 488–491 Hypermarkets, 362 Hypertext Markup Language (HTML), 445 Hypertext Transfer Protocol (HTTP), 445 Hyundai Motor Company, 260e I IBM, 487 IKEA, 496–497 Image, brand, 289 Image advertising, 402 Imax Corporation, 321e Importers, top, 56t Imports government actions to discharge imports and block market access, 230, 232–233, 232t issues, 243 parallel importing, 337 sample rates of duty for U.S., 235t Incipient market, 175 Income segmentation, 196–197t, 196–199 Index of economic freedom—2011 rankings, 44–45t 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/ORGANIZATION INDEX India outsourcing in, 246 retail sector, 366 Industrial products, distribution of, 355–356, 356f Inflationary environment, 332–333 Infomercials, 429–430 Information requirement, 168–169, 169t Information revolution, 21 Information technology (IT), 161–165 Information utility, 351 In France, 446 Infrastructure resources, 484 Innovation, 308–309 Innovator’s dilemma, 449 Insomnia Coffee Company, 282 Intangible property, sales of, 342 Integrated circuit (IC), 444 Integrated marketing communications (IMC), 383–384 Intellectual property, 138–143 Interactive television, 431 Intermediaries, establishing and working with, 356–358 Intermodal transportation, 376 Internal hedging methods, 59 International Bottled Water Association, 122 International brand, 290–291 International Commercial Terms (Incoterms), 325, 327 International division of structure, 507–508, 507f International finance, 56–58, 57f, 58t International law, 135–137 common law vs civil law, 136–137 Islamic law, 137 International Monetary Fund (IMF), 91 International new-product department, 312–313 International organizational development patterns, 507 geographical and product division structures, 509–510, 509f international division of structure, 507–508, 507f matrix design, 510–513, 511f regional management centers, 508–509, 508f International partnerships in developing countries, 274 International product, 290–291 Internet as transportation mode, 374 Internet Corporation for Assigned Names and Numbers (ICANN), 445 Internet phone service, 463 Interpretation and presentation, research, 185 Interprofessional Council of Bordeaux Wine (CIVB), 108 Intranet, 162 Inventory management, 372 Investment, 259–267 to establish new operations, 265t joint ventures, 260–263, 262t market entry and expansion by acquisition, 266t Iridium, 177 Islamic law, 137 Isuzu Motors, 262 J Jaguar, 283 James Bond films, 436 Japan Boeing alliance, 273 Keiretsu, 274–277 lean production, 515–519 Jiangling Motors, 262 Johnson & Johnson, 522, 528 Joint ventures, 260–263, 262t auto industry, 262 in global retailing, 369 investment, 260–263, 262t market entry and expansion by, 262t Jollibee, 481 Jurisdiction, 138 Jyllands-Posten newspaper, 105 K Keiretsu, 83, 274–277 Kikkoman, 415e Knowledge resources, 483 L Labeling, 287–288 Language, 107–111 American communication styles and, 111 English, diffusion of, 110 morphology and, 107, 109 phasing and, 111 phonology and, 107, 109 sequencing, 111 spoken or verbal, study of, 107 study of, 107 technology and, 109–110, 110f translations, 107, 109 unspoken or nonverbal, 107, 110–111 Latent market, 174 Latin America, 81–83 Andean Community, 76–77, 76f, 77t CARICOM, 80–81 FTAA, 81 Mercosur, 77–78, 78t SICA, 74–75, 75f, 75t Law of one price, 319 Layers of advantage to create competitive advantage, 480 Leadership, 499–503 core competence and, 502–503, 503t executives of 2011, 502t lean production, 513–517 organizing for global marketing, 513–517 responsibility for global marketing, 503t top management nationality, 500–501, 502t Lean production, 513–517 assembler value chains, 514–515 downstream value chains, 515–517 Least-developed countries (LDCs), 46, 49–50 Legal environment, 137–150 antitrust, 143–146, 145t bribery and corruption, 148–150, 148t intellectual property, 138–143 jurisdiction, 138 licensing and trade secrets, 146–147 LEGO Company, 498–499 Lenovo Group, 439 Letter of credit (L/C), 240–241 563 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 49 564 SUBJECT/ORGANIZATION INDEX Leverage, 24–25 experience transfers, 24 global strategy, 25 resource utilization, 24 scale economies, 24 Licensing, 146–147, 256–259 arrangements, 257–259 in global retailing, 369 Local brand, 290 Local consumer culture positioning, 216–219 Localized approach, 18 Local product, 290 Location-aware ad campaigns, 459 Location of companies with global competitive advantage, 488t Logistics, sourcing and, 247 Logistics management, 377 Long-term orientation (LTO), 114–115 Loose bricks to create competitive advantage, 480 L’Oréal, 222 Louis Vuitton, 140 Low-context cultures, 112–113, 113t Lower-middle-income countries, 46–47 Low-income countries, 45–46 LVMH Moët Hennessy-Louis Vuitton SA, 348–349 M Major League Soccer (MLS), 6–7, 100–101, 124 Management information system (MIS), 161 See also Global market research Management myopia, 25 Management orientations, 16–20 ethnocentric, 17 geocentric, 18–19 polycentric, 18 regiocentric, 18 Management vision, sourcing and, 245 Manufacturer’s export agent (MEA), 238 Market-based transfer price, 341 Market capitalism, 41, 41t Market development, 4, 5t Market development, stages of, 45–54, 45t in high-income countries, 51–52 in LDCs and developing countries, 46, 49–50 in lower-middle-income countries, 46–47 in low-income countries, 45–46 marketing implications of, 53–54 in Triad, 52 in upper-middle-income countries, 47–49 Market entry and expansion by acquisition, 266t Market expansion strategies, 279–280, 279t, 368–370, 368f Market holding strategy, 331 Marketing defined, principles of, 5–8 See also Global marketing Marketing communication forms, 425 direct marketing, 425–431, 426t mass marketing, 426t product placement, 434–436 public figures, 434–436 sponsorships, 433–434 support media, 431–433 television placement, 435 Marketing information system as strategic asset, 187 Marketing issues in Africa, 94 in Middle East, 91 Marketing mix, 4, Marketing’s impact on culture, 111–112 Market penetration, 4, 5t Market penetration pricing strategy, 322 Market research, 167 See also Formal market research; Global market research Market selection framework, 209–210, 209t Market skimming and financial objectives, 320–322 Market socialism, 42–45, 43t, 44–45t Mars, Inc., 296, 412e Maslow’s needs hierarchy, 298–299, 298f, 300f Massively multiplayer online games (MMOG), 457 Mass marketing, 426t Matrix design, 510–513, 511f McArthurGlen, 364e McDonaldization of culture, 111–112 McDonald’s Corporation, 14, 14t, 30–32, 481 Media decisions in global advertising, 398–400 Mercantilism, 57 Merchandise trade, 54 See also Trade in merchandise and services Mercosur See Common Market of the South (Mercosur) Microsoft, 131 Middle East, 89–91 Blackberry in, 145 GCC, 90–91, 90t marketing issues in, 91 Mobile advertising, 458–460 Mobile commerce (m-commerce), 458–460 Mobile gaming, 462 Mobile music, 460–462 Motorola, 177 Multidimensional scaling (MDS), 182–183, 182t, 183f Multilateral trade agreements, 20–21 Multisegment targeting, 213 N NAFTA See North American Free Trade Agreement (NAFTA) Narrow target strategies, 475–477 National competitive advantage, 482–487 chance, 486 demand conditions, 484–485 factor conditions, 483–484 firm strategy, structure, and rivalry, 485–486 government, 486–487 related and supporting industries, 485 National controls, 26 National Export Initiative, 225 National Football League (NFL), 7e Nationalization, 134 National policies governing export selling and export marketing, 227, 233 government actions to discharge imports and block market access, 230, 232–233, 232t government programs that support exports, 228–230 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/ORGANIZATION INDEX Nation-states and sovereignty, 127–128 Nationwide Equipment, 224–225 NAVTEQ Media Solutions, 459–460 Needs-based approach to planning, 298–300, 300f Negative public relations and publicity, 402t Negotiated transfer price, 341 Nestlé SA, 7, 12e, 49e, 204 New operations, investment to establish, 265t New-product development, 311–312 New-product ideas, 310–311 Niche, 213 Nike, 395, 403e Nongovernmental organizations (NGOs), 26, 519 Nontariff barriers (NTBs), 26, 232 Normal trade relations (NTR), 233, 235–236 North America, 71–73, 74f NAFTA, 71–73, 74f U.S trading partners, 73f North American Free Trade Agreement (NAFTA), 18, 20, 26, 71–73, 74f countries, map of, 74f income and population, 73t “Not invented here” (NIH) syndrome, 309 Nucor steel, 293 O Observation, 176 Offset, 344 Ogilvy & Mather, 394 Omnicom Group family tree, 390f Omnivore, 108 One-to-one marketing, 426 Operating system, 444 Option, foreign currency, 60 Order processing, 371–372 Organizational culture as restraining force, 25 Organization for Economic Cooperation and Development (OECD), 51–52 Organizing for global marketing, 503–513 Outlet malls, 364 Outlet stores, 363–364 Outsourcing, 243, 246 P Pacific Rim countries, diffusion of innovation in, 120–121 Packaging, 286–287 Paid search advertising, 453 Parallel importing, 337 Patent, 138–142, 142t Patent Cooperation Treaty (PCT), 142 Peer-to-peer marketing (p-to-p), 353 Peninsular & Oriental Steam Navigation (P&O), 375 Penske Automotive Group, 317 PepsiCo, 501e Perception color, 104 self-reference criterion and, 117–118 unbiased, of culture, 118 Pernod Ricard SA, 408 Personal computer (PC), 444 Personal interviews, 176 Personal selling, 417–425 philosophy, 420 sales force nationality, 423–425 sales partnership, building, 421–423, 421f strategic/consultative selling model, 419–420, 419f, 421f strategy, implementing, 418–419 Pharmaceutical market by region, 22t Pharmaceutical Research and Manufacturers Association, 21–22 Physical distribution, 370–377 inventory management, 372 order processing, 371–372 transportation, 272t, 372–377, 374t warehousing, 372 Physical resources, 483 Pioneer Hi-Bred, 423e Place in global marketing strategy, 10 Place utility, 351 Planning of product, needs-based approach to, 298–300, 300f Political environment, 127–159 nation-states and sovereignty, 127–128 political risk, 129–132, 130t seizure of assets, 134 taxes, 132 Political factors, sourcing and, 248 Political risk, 129–132, 130t Pollo Campero SA, 258e Polycentric orientations, 18 Polycentric pricing, 336 Population segmentation, 196–199, 198t Positioning, 193, 213–219 attribute of benefit, 214 competition, 215–216 global, foreign, and local consumer culture positioning, 216–219 quality and price, 214 use or user, 214–215 Power distance (PDI), 113, 115, 116 Preferential trade agreement (PTA), 68–70, 71f common market and, 69 customs union and, 69 economic union and, 69–70 free trade area and, 69 hierarchy of, 71f regional economic integration and, forms of, 70t WTO and, 68–69 Presentation strategy, 421–423 Price fixing, 340 Price in global marketing strategy, 10 Price in positioning, 214 Price transparency, 331, 331t Pricing concepts, 319–320 Pricing decisions, 318–349 countertrade, 342–345 dumping, 339–340 environmental influences on, 330–335 global, 335–337 gray market goods, 337–338 price fixing, 340 transfer pricing, 341–342 565 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 49 566 SUBJECT/ORGANIZATION INDEX Pricing objectives, global, 320–329 calculating prices, 324–329, 328–329t companion products, 322 market penetration pricing strategy, 322 market skimming and financial objectives, 320–322 target costing, 323–324 Primary data, 173 Problem definition, 169–170 Procter & Gamble, 222, 452 Product, 285–289 aesthetics, 288–289 defined, 285–286 global marketing of, 303–309 innovation, 308–309 product adaptation-communication extension, 307 product-communication adaptation, 306–307 product-communication adaptation (dual adaptation), 307–308 product-communication extension, 304–305 product-communications strategies, 309 product transformation, 307 global marketing of new, 309–313 international new-product department, 312–313 new-product development, 311–312 new-product ideas, 310–311 testing, 313 in global marketing strategy, 10 international, 290–291 labeling, 287–288 local, 290 packaging, 286–287 planning, needs-based approach to, 298–300, 300f sales in select global industry sectors markets, 16t types, 286 warranties, 286 Product (RED), 517e Product adaptation-communication extension, 307 Product-communication adaptation (dual adaptation), 306–308 Product-communication extension, 304–305 Product-communications strategies, 309 Product development costs, 21–22 Product invention, 303 Product-market decisions, 211–212, 211t Product/market matrix of growth strategies, 4–5, 5t diversification, market development, market penetration, product development, 4–5 Product placement, 434–436 Product saturation levels, 53–54 Product transformation, 307 Promotion in global marketing strategy, 10 Promotion sites, 451 Psychographic segmentation, 201–202 in Russia, 203 PTA See Preferential trade agreement (PTA) Public figures, 434–436 Public relations (PR) and publicity, 400–405 differences in, worldwide, 404–405 in global marketing communications, 404 negative, 402t Put option, 60 Q Quality in global marketing, 22 in positioning, 214 Quota, 232 QVC, 430 R Rail transportation, 373 Ranbaxy, 477 Reebok, 321e Regiocentric orientations, 18 Regional economic integration, 70t Regional economic organizations, 153–154 Regional management centers, 508–509, 508f Regulations, pricing, 333–334 Regulatory environment, 152–154, 154t Related and supporting industries, 485 Relationship strategy, 420 Religion culture and, 103–104 sustainable products and, 326 Renault, 262, 318 Research design, 173–180 data collection issues, 174–175 research methodologies, 175–180 sampling, 180 scale development, 180 Research in Motion (RIM), 145 Research methodologies, 175–180 Research on competitive advantage, 492–493 Research value, assessing, 173 Resource utilization, 24 Restraining forces, 25–26 management myopia and organizational culture, 25 national controls, 26 opposition to globalization, 26 Retail operations, types of global, 359–360t, 359–364 Revaluation, 57 Rivalry among competitors, 472–473 in national competitive advantage, 485–486 Rolling Stone magazine, 106e Rolls-Royce, 200e Rules of origin, 69 Russia, psychographic segmentation in, 203 S S.A.B de C.V Cemex, 473 SABMiller, 275 SADC See South African Development Community (SADC) Saeco International, 356e Sales force nationality, 423–425 Sales in select global industry sectors markets, 16t Sales on open account, 242–243 Sales partnership, building, 421–423, 421f Sales promotion, 411–417 couponing, 415–416 coupon promotions, regulation of, 414t by global marketers, 412t issues and problems in, 416–417 sampling, 413–415 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/ORGANIZATION INDEX Salvatore Ferragamo, 2e Sampling, 180, 413–415 Scale development, 180 Scale economies, 24 Scotch Whisky Association, 408 Secondary data, 170 Seizure of assets, 134 Self-reference criterion (SRC), 117–118 Selling proposition, 393 Services trade, 54 See also Trade in merchandise and services Shipco Transport, 253 Shiseido, 222–223 Shopping malls, 362–363, 363t Short message service (SMS), 457 Short-term orientation, 114–115 SICA See Central American Integration System (SICA) Sight or time drafts (documentary collections), 241–242, 242f Single-column tariff, 233 Slow Food, 111–112 Small Business Administration (SBA), 251 Smartphones, 457–458 Snecma, 272–273 Social responsiveness, 517–522 Sony Corporation, 257, 263e, 292–293, 294, 323, 506 Sony Ericsson, 263e Sourcing, 243–249 country infrastructure, 247–248 customer needs, 247 decision, 243 factor costs and conditions, 245–247 foreign exchange rates, 248–249 logistics, 247 management vision, 245 outsourcing, 243, 246 political factors, 248 as strategic pricing tool, 335 South African Breweries PLC, 275 South African Development Community (SADC), 93 income and population, 94t map of, 92f South Korea chaebol in, 278 digital revolution in, 446 Sovereignty, nation-states and, 127–128 Sovereign wealth funds, 55 Special economic zones (SEZ), 230 Specialty retailers, 360 Sponsorships, 433–434 Stakeholder analysis, 519 Standardization vs adaptation in global advertising, 386–389 Standardized approach, 17 Standardized global marketing, 212 Star Alliance, 269e Starbucks, 254–255, 282 STIHL Inc., 363e Strategic alliances, 268–271, 269f, 270t Strategic/consultative selling model, 419–420, 419f, 421f Strategic intent to create competitive advantage, 479–482 changing rules, 480–481 collaborating, 481–482 layers of advantage, 480 loose bricks, 480 Strategic international alliances, 268–271 Streaming media, 457 Structure in national competitive advantage, 485–486 Subsidies, 229–230, 333–334 Successful idealists, 202 Sun Microsystems, 131 Supermarkets, 360 Superstores, 362 Supply chains, 370–377, 371f Support media, 431–433 Survey research, 176 Sustaining technologies, 449 Suzlon Energy, 284–285, 315 Swatch Group, 490e Switch trading, 345 T Tangible property, sales of, 342 Target costing, 323–324 Targeting, 193, 212–213 Target markets or segments, choosing, 206–210 current segment size and growth potential, 206–208, 207t feasibility and compatibility, 208–209 market selection framework, 209–210, 209t potential competition, 208 Target market strategy options, 212–213 concentrated global marketing, 213 differentiated global marketing, 213 standardized global marketing, 212 Tariffs, 230 Tariff systems, 233–237 countervailing duties, 237 customs duties, 236–237 dumping, 237 normal trade relations, 233, 235–236 sample rates of duty for U.S imports, 235t single-column tariff, 233 tariff rates for China, NTR vs non-NTR, 236t two-column tariff, 233 Tata Group, 486e Tata Motors, 283 Taxes in political environment, 132 Tax regulations, transfer pricing and, 341–342 TCP/IP (Transmission Control Protocol/Internet Protocol), 444 Telefonaktiebolaget LM Ericsson, 263e Teleshopping, 430–431 Television placement, 435 Tesco, 163, 350–354, 379 Testing new products in global marketing, 313 Threat of new entrants, 469–471 Threat of substitute products, 471 Timberland Company, 519e Time utility, 351 Timing and know-how, 488–491 Tobacco advertising, 392 Top interactive agencies, 453t Top 10 global advertising agency brands, 391t Top 20 global advertising agencies, 389f Top 25 global marketers by ad spending, 385t Top management nationality, 500–501, 502t 567 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 49 568 SUBJECT/ORGANIZATION INDEX Total Apparel Group (TAG), 100–101 Toyota, 514–515 Trade barriers, examples of, 232t Trade deficit, 54–55 Trade financing and methods of payment, 240–243 cash in advance, 242 documentary collections (sight or time drafts), 241–242, 242f documentary credit, 240–241, 241f sales on open account, 242–243 Trade in merchandise and services, 55–60 economic exposure, 58–59 exchange rate exposure, 59–60 exchange risks and gains, 58t international finance, overview of, 56–58, 57f, 58t top exporters/importers, 56t U.S trade balance, 57f Trademark, 138–142 Trade mission, 226 Trade sales promotions, 411 Trade secrets, 146–147 Trade show, 226 Trade surplus, 55 Transaction sites, 451 Transfer pricing, 341–342 methods of, compared, 341t sales of tangible and intangible property, 342 tax regulations and, 341–342 Transparency, 87 Transportation, 272t, 372–377, 374t air, 374 improvements, 21 Internet, 374 modes of, comparison of, 372t rail, 373 trucks, 373–374 water, 374 Triad, 52 Truck transportation, 373–374 Twenty-first century cooperative strategies, 278–279 Twitter, 467 Two-column tariff, 233 U Uncertainty avoidance, 114, 115, 116 Uniform Commercial Code (UCC), 136 Uniform Resource Locator (URL), 445 Unilever, 498–499, 524–525 United States Customs and Border Protection (CBP), 243 exports, 224–225 increasing, 251 market share of top 10 apparel exporting countries, 228t sample rates of duty for U.S imports, 235t sugar subsidies and quotas, 231 foreign management of ports, controversy over, 375 trade balance, 57f trading partners, 73f Upper-middle-income countries, 47–49 Usage rates, 202 User status, 202, 204 V Value chain assembler, in lean production, 514–515 defined, downstream, in lean production, 515–517 in global marketing, 370–377, 371f Value equation, Value networks, 448–449 Values, culture and, 103 Vietnam’s National Textile-Garment Group (Vinatex), 244e Virgin, 293 Voice over Internet Protocol (VoIP), 463 Volkswagen, 468–469, 495–496 W Walmart, 166, 361 Walt Disney Company, 125, 256e Warehousing, 372 Water transportation, 374 Web site design and implementation, 453–455 Amazon.com domain names, 454t top interactive agencies, 453t Whirlpool Corporation, 190–191 Wi-Fi, 458–459 World Economic Forum (WEF), 96 World economy overview of, 36–38 trends in, 22–23 World Health Organization (WHO), 310, 392 World Intellectual Property Organization (WIPO), 140, 141f World Trade Organization (WTO), 21, 26, 67–68 cases, 68t GATT, 67–68 preferential trade agreements and, 68–69 World Wide Web, 445 WTO See World Trade Organization (WTO)