:KDW¶V1(: WRWKH6HYHQWK(GLWLRQ" NEW learning objectives guide students through the key goals of every chapter NEW chapter-opening vignettes create relevance and engage students from the beginning of each chapter NEW related end-of-chapter cases tie chapter concepts together at the end of each chapter NEW key company, country, and industry tables provide students with real-world examples including “The World’s Largest Corporations”, “Index of Economic Freedom”, “The World’s Most Valuable Brands”, “Top 25 Global Marketers”, and “Top 20 Global Advertising Organizations.” NEW section “Marketing Metrics and Analytics” teaches students how to focus on quantitative measures and analytics, such as return on investment NEW discussion of social media is integrated throughout the Seventh Edition to engage students and keep Global Marketing current and relevant with today’s students NEW chapter 15, “Global Marketing and the Digital Revolution,” has been completely revised and updated to include discussion of location-based mobile platforms, cloud computing, tablets, and other emerging topics GLOBAL MARKETING SEVENTH EDITION Warren J Keegan Lubin Graduate School of Business Pace University New York City and Westchester, New York Mark C Green Department of Business Administration and Economics Simpson College Indianola, Iowa Boston Amsterdam Columbus Cape Town Indianapolis Dubai New York London Madrid San Francisco Milan Upper Saddle River Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Acquisitions Editor: Erin Gardner Director of Editorial Services: Ashley Santora Editorial Project Manager: Meeta Pendharkar Editorial Assistant: Anastasia Greene Director of Marketing: Maggie Moylan Executive Marketing Manager: Anne Fahlgren Senior Managing Editor: Judy Leale Production Project Manager: Ilene Kahn Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Sr Art Director/Design Supervisor: Janet Slowik Cover and Interior Designer: Laura Ierardi Cover Design Concept: Mark C Green Cover Art: Paul Butt/Section Design Senior Media Project Manager, Editorial: Denise Vaughn Media Product Manager, Production: Lisa Rinaldi Full-Service Project Management: Jennifer Welsch/ Bookmasters Composition: Integra Software Services, Inc Printer/Binder: Quad Graphics/Versailles Cover Printer: Lehigh-Phoenix Color/ Hagerstown Text Font: 10/12 Times Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text Copyright © 2013, 2011, 2008, 2005, 2003 by Warren J Keegan Published by Pearson Education, Inc., publishing as Prentice Hall All rights reserved Manufactured in the United States of America This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290 Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps Library of Congress Cataloging-in-Publication Data Keegan, Warren J Global marketing / Warren J Keegan, Mark C Green.—7th ed p cm Includes bibliographical references and index ISBN 978-0-13-271915-5 (pbk.: alk paper) Export marketing I Green, Mark C II Title HF1416.K443 2013 658.8'4—dc23 2011043720 10 ISBN 10: 0-13-271915-0 ISBN 13: 978-0-13-271915-5 To my wife, best friend, and partner in living life creatively, Cynthia —WJK To Diana, the love of my life —MCG This page intentionally left blank Brief Contents Preface xx Acknowledgments xviii About the Authors xvi PART Introduction Chapter Case 1-1 Case 1-1 Case 1-2 Case 1-3 PART 2 Introduction to Global Marketing The Global Marketplace Is Also Local The Global Marketplace: The Assignment (continued) 29 McDonald’s Expands Globally While Adjusting Its Local Recipe 30 Acer Inc 33 The Global Marketing Environment 34 Chapter Case 2-1 Case 2-1 Case 2-2 Case 2-3 The Global Economic Environment 34 A New Front in the Battle of Ideas 34 A New Front in the Battle of Ideas (continued) 62 Ecuador’s Galápagos Islands and Ecotourism 63 Argentina Uncorks Malbec; World Ready for a Glass Chapter Case 3-1 Case 3-1 Case 3-2 The Global Trade Environment 66 The Euro Zone Fights for Its Life 66 Will the Euro Survive? (continued) 96 The United States and South Korea Sign a Free Trade Agreement 97 Chapter Case 4-1 Case 4-1 Case 4-2 Social and Cultural Environments 100 Will Sharp-Dressed Americans Become Soccer Fanatics? Soccer and the Fashion World (continued) 124 Disney Learns to “Act Local” on the Global Stage 125 Chapter Case 5-1 Case 5-1 Case 5-2 The Political, Legal, and Regulatory Environments 126 America’s Cuban Conundrum 126 America’s Cuban Conundrum: The Assignment (continued) Gambling Goes Global on the Internet 158 PART Approaching Global Markets Chapter Case 6-1 Case 6-1 Case 6-2 Chapter Case 7-1 Case 7-1 Case 7-2 64 100 156 160 Global Information Systems and Market Research 160 Market Research Keeps Coach at the Cutting Edge of Fashion 160 Market Research Transforms Coach: The Assignment (continued) 189 Research Helps Whirlpool Keep Its Cool at Home, Act Local in Emerging Markets 190 Segmentation, Targeting, and Positioning 192 Global Companies Target Low-Income Consumers 192 Innovating for the Bottom of the Pyramid: The Assignment (continued) 221 Cosmetics Giants Segment the Global Cosmetics Market 222 V VI BRIEF CONTENTS Chapter Case 8-1 Case 8-1 Case 8-2 Case 8-3 Importing, Exporting, and Sourcing 224 Can the United States Double Its Exports by 2015? 224 Increasing U.S Exports: The Assignment (continued) 251 Asian Shoe Exports to Europe 252 A Day in the Life of an Export Coordinator 253 Chapter Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances 254 Starbucks Expands Abroad 254 Starbucks’ Global Expansion: The Assignment (continued) 282 Jaguar’s Passage to India 283 Case 9-1 Case 9-1 Case 9-2 PART The Global Marketing Mix 284 Chapter 10 Case 10-1 Case 10-1 Case 10-2 Brand and Product Decisions in Global Marketing 284 Suzlon Energy 284 Suzlon Energy: The Assignment (continued) 315 The Smart Car 316 Chapter 11 Case 11-1 Pricing Decisions 318 Cheap and Cheaper: How Low Can a Car’s Cost (and Price) Go? 318 Cheap and Cheaper: The Assignment (continued) 347 LVMH and Luxury Goods Marketing 348 Case 11-1 Case 11-2 Chapter 12 Case 12-1 Case 12-1 Case 12-2 Chapter 13 Case 13-1 Case 13-1 Case 13-2 Chapter 14 Case 14-1 Case 14-1 Case 14-2 Case 14-3 Chapter 15 Case 15-1 Case 15-1 Case 15-2 PART Global Marketing Channels and Physical Distribution Tesco Expands in the United States 350 Tesco Expands in the United States: The Assignment (continued) 379 Carrefour Expands Abroad 380 350 Global Marketing Communications Decisions I: Advertising and Public Relations 382 The Gulf Oil Spill: BP’s Public Relations Nightmare 382 The BP Oil Spill: The Assignment (continued) 407 Scotch Whisky in China: A Taste of the Good Life 408 Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication 410 Expo 2010 Shanghai China 410 Expo 2010: The Assignment (continued) 438 Lenovo 439 Marketing an Industrial Product in Latin America 440 Global Marketing and the Digital Revolution 442 Africa 3.0 442 Africa 3.0: The Assignment (continued) 466 Global Marketers Discover Social Media 467 Strategy and Leadership in the Twenty-First Century Chapter 16 Case 16-1 Case 16-1 Strategic Elements of Competitive Advantage 468 Volkswagen Aims for the Top 468 Volkswagen: The Assignment (continued) 495 468 BRIEF CONTENTS Case 16-2 Case 16-3 Chapter 17 Case 17-1 Case 17-1 IKEA 496 LEGO 497 Leadership, Organization, and Corporate Social Responsibility 498 A Changing of the Guard at Unilever 498 Unilever: The Assignment (continued) 524 Appendix 526 Glossary 527 Author/Name Index 541 Subject/Organization Index 557 VII This page intentionally left blank 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 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 This page intentionally left blank 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, 474–475 557 558 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 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, 448–449 560 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 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, 313 561 562 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 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), 240–241 563 564 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 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, 341–342 565 566 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 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 567 568 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) ... Introduction Introduction to Global Marketing Introduction and Overview Principles of Marketing: A Review Competitive Advantage, Globalization, and Global Industries Global Marketing: What It Is and... Standardized Global Marketing 212 Concentrated Global Marketing 213 Differentiated Global Marketing 213 Positioning 213 Attribute or Benefit 214 Quality and Price 214 Use or User 214 Competition 215 Global, ... to Global Marketing The Global Marketplace Is Also Local The Global Marketplace: The Assignment (continued) 29 McDonald’s Expands Globally While Adjusting Its Local Recipe 30 Acer Inc 33 The Global