(BQ) Part 2 book “Global marketing” has contents: Export modes, intermediate entry modes, hierarchical modes, international sourcing decisions and the role of the sub-supplier, product decisions, distribution decisions, communication decisions, pricing decisions and terms of doing business,… and other contents.
M10_KEEG4348_05_SE_C10.QXD 10/12/07 Part 10:57 AM Page 326 THE GLOBAL MARKETING MIX 10 Brand and Product Decisions in Global Marketing “T hin is in.” That is the verdict from consumers in all parts of the world who have made widescreen, flat-panel TV sets one of the hottest new consumer electronics products in years The new digital sets represent a major improvement over the analog cathode-ray tube (CRT) technology that was an integral part of TV design for more than 50 years Today’s TVs incorporate innovative technologies such as liquid-crystal display (LCD) screens that previously were offered with personal computers Television manufacturers are now offering a variety of screen technology options, including LCD, plasma, Digital Light Processing (DLP), and others No matter which type of set they buy, consumers agree on one point: These TV sets are sleek, sexy, and cool They also offer vastly improved performance compared to conventional TVs Viewers are enthralled by the sharper, brighter image quality and multichannel sound of high-definition TV broadcasts; they also enjoy watching wide-screen DVD movies at home In short, the consumer electronics industry has produced a muchneeded new hit product The success of Samsung, Sharp, and other marketers of flat-panel HDTVs highlights the fact that products—and the 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 III, we surveyed several topics that directly impact product strategy as a company approaches global markets Input from a company’s MIS and market research studies guides the product development process The market must be segmented, one or more target markets selected, and a 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 IV, 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 The next section outlines strategic alternatives available to global marketers Finally, new product issues in global marketing are discussed M10_KEEG4348_05_SE_C10.QXD 10/12/07 10:57 AM Page 327 The growing popularity of flat-panel HDTVs has propelled Sharp and Samsung Electronics to the front ranks of the world’s consumer electronics companies In 2007, Sharp unveiled a 108-inch LCD TV—the world’s largest As prices fall, global demand is growing rapidly The Consumer Electronics Association estimates that 55 percent of U.S households currently own at least one high-definition television 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 company 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 100 pounds, is inches deep, is equipped with two 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 status associated with product ownership, a manufacturer’s service commitment, and a brand’s overall reputation or mystique, are also important When shopping for a new TV set, 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, Kodak offers products and services to both amateur and professional photographers 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 M10_KEEG4348_05_SE_C10.QXD 10/12/07 10:57 AM Page 328 convenience, preference, shopping, and specialty goods Although film is often a low-involvement purchase, many film buyers in the United States show a strong preference for Kodak film, and significant numbers of Japanese photographers prefer Fuji Products can also be categorized in terms of their life span (durable, nondurable, and disposable) Kodak and other companies market both single-use (disposable) cameras as well as more expensive units that are meant to last for many years As these examples from the photo industry suggest, traditional product classification frameworks are fully applicable to global marketing Brands 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 sort 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 (Figure 10-1) The sum Figure 10-1 g sin rti Family, friends Pu bli cit y, ne w s ies or st Ad ve Components of a Brand Image Se rv oyees empl any mp co by Bra nd na m e/ l ice o og P r o m o ti o n s , Experience with product ts Pa e P ricin g 328 Part The Global Marketing Mix ck trib u ti o m D is g in ny en ag pa ev m ed Co sor n spon na M10_KEEG4348_05_SE_C10.QXD global 10/12/07 MARKETING 10:57 AM Page 329 Q&A Wall Street Journal: “BMW is one of the top brands in any industry For you, as CEO, are there special responsibilities you have in maintaining or building your brand image?” Helmut Panke, Chief Executive Officer, BMW: “As provocative as it sounds, the biggest task is to be able to say, ‘No.’ Because in the end, authentic brand management boils down to understanding that a brand is a promise that has to be fulfilled everywhere, at any time So when something doesn’t fit, you must make sure that that is not done The most important role of senior management, not just the CEO, is to understand that the brand is not just a label that you can put on and take off BMW settles for fewer compromises, which goes back to what the brand stands for.” Source: The Wall Street Journal (Eastern Edition) by Neal E Boudette Copyright 2003 by Dow Jones & Company, Inc Reproduced with permission of Dow Jones & Company, Inc in the format Textbook via Copyright Clearance Center of impressions is a brand image, a single—but often complex—mental image about both the product itself and the company that markets it 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.1 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 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.”2 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 “We have to shift to high value-added products, and to that we need to improve our brand.” Noboru Fujimoto, President, Sharp Electronics Corporation For a complete discussion of brand equity, see Kevin Lane Keller, Strategic Brand Management (Upper Saddle River, NJ: Prentice Hall, 1998), Chapter John Willman, “Labels That Say It All,” Financial Times—Weekend Money (October 25–26, 1997), p Peter Landers, “Sharp Covets the Sony Model: A Sexy, High-end Image,” The Wall Street Journal (March 11, 2002), p A13 Chapter 10 Brand and Product Decisions in Global Marketing 329 M10_KEEG4348_05_SE_C10.QXD 10/12/07 10:57 AM Page 330 the rest of the story Wide Screen Flat-Panel TVs Rule The explosive growth of HDTV sales has been a boon for the world’s leading electronics marketers In 2005, South Korea’s LG Electronics was the world’s number one TV set maker with sales of 18.2 million sets Samsung was number two with sales of 16.3 million units By contrast, Sony, long a world leader in TV manufacturing and a strong global brand name, ranked fifth in TV set market share Although Sony is legendary for its spirit of innovation, it was a late entrant into the growing market for flat-panel displays Sony focused on its Wega-brand TVs that offered flat screens in a conventional CRT format; company engineers insisted that Sony’s Trinitron CRT technology was superior to flat-panel technology which, in any event, the company had no experience producing Sony is a good example of a company whose preference for its own technology has proven to be counterproductive Innovation guru Henry Chesbrough notes that today, the technologies needed for products are so complex and with rivals so numerous that no company—even one as big and capable as Sony—can develop all it needs internally A case in point is the cost of building an LCD production facility The price tag is about $2.7 billion, too high a cost for Sony to bear alone Sony’s strong track record as an innovator and inventor of whole classes of technologies blinded it to the merits of using technologies from other companies It was hard hit by shrinking profit margins in its electronics business; in 2003, Sony announced it would close 12 of 17 factories that made analog TVs It also announced a joint venture with Samsung to manufacture LCD sets Meanwhile, new competitors, including Dell and Hewlett-Packard, have entered the TV market Despite these new entrants into the industry, Sony’s goal is to have 30 percent share of the global flat-panel market Prices have been dropping as the manufacturers build new, state-of-the-art factories Because the screen panel itself represents about 85 percent of the cost of an entire set, companies are innovating to bring the cost down For example, Corning is a key supplier of glass products to the industry; the company recently found a way to ship 500 glass panel sheets in the space that would previously only accommodate 20 sheets The result was a dramatic drop in shipping costs to Asian manufacturers Likewise, Sharp and other manufacturers have found ways to reduce the amount of time required to insert the liquid-crystal substance between the glass panels In 2001, five days were required to fabricate a finished screen; today, a 30-inch screen can be produced in just two hours Some industry observers expect the price of a 42-inch LCD model to drop below $1,000 sometime in 2007 There is some confusion in the marketplace, as consumers try to choose between the different technologies Also, although an increasing amount of programming is available in the widescreen format, many shows are still broadcast in standard definition; ironically, the 480i standard definition images look worse on an expensive HDTV than on a conventional TV Many viewers are not sure when they are watching an actual highdefinition broadcast as opposed to a standard definition one The manufacturers themselves are facing another challenge: How to keep revenues and profits strong as manufacturers slash prices to gain market share Prices are expected to stabilize as the rate of new factory openings slows Sources: Evan Ramstad, “Flat-Panel TVs, Long Touted, Finally are Becoming the Norm,” The Wall Street Journal (April 15/16, 2006), pp A1, A2; Martin Fackler, “Running Away from the Pack In Japan,” The New York Times (March 22, 2006), pp C1, C5; Eric A Taub, “Flat-Panel Sets to Enhance the Visibility of Samsung,” The New York Times (January 8, 2004), pp C1, C4; Andrew Ward, Kathrin Hille, Michiyo Nakamoto, Chris Nuttal, “Flat Out for Flat Screens: The Battle to Dominate the $29 bn Market Is Heating Up but the Risk of Glut Is Growing,” Financial Times (December 24, 2003), p 9; Evan Ramstad, “Rise of Flat-Screen TVs Reshapes Industry,“ The Wall Street Journal (November 20, 2003), p B8; Phred Dvorak, “Facing a Slump, Sony to Revamp Product Lines,” The New York Times (September 12, 2003), p B1, B2; Michiyo Nakamoto, “Sony Discusses Screen Venture with Samsung,” Financial Times (September 23, 2003), p 19; Elliot Spagat, “Is It Finally Time to Get a Flat-Panel TV?” The Wall Street Journal (September 12, 2002), p D1; Peter Landers, “Sharp Covets the Sony Model: A Sexy, High-End Image,” The Wall Street Journal (March 11, 2002), p A13 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.” 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 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.4 330 Part Deborah Ball, “Liquor Makers Go Local,” The Wall Street Journal (February 13, 2003), p B3 John Willman, “Time for Another Round,” Financial Times (June 21, 1999), p 15 The Global Marketing Mix M10_KEEG4348_05_SE_C10.QXD 10/12/07 10:57 AM Page 331 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 set 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.”6 In 2002, Haier Group announced a strategic alliance with Taiwan’s Sampo Group The deal, which is valued at $300 million, calls 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 DaimlerChrysler’s two-seat Smart car are available in Europe but not the rest of the world (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.”7 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 introduced in Australia, South America, South Africa, and China The Fit made its North American market debut in 2006 Global Products and Brands The globalization of industry 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 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 Diana Kurylko, “The Accidental World Car,” Automotive News (June 27, 1994), p Chapter 10 Brand and Product Decisions in Global Marketing 331 M10_KEEG4348_05_SE_C10.QXD 10/12/07 10:57 AM Page 332 In French (“La perfection au masculin”), German (“Für das Beste im Mann”), Italian (“Il meglio di un uomo”), Portuguese (“O melhor para o homem”), or any other language, Gillette’s trademarked brand promise is easy to understand—especially when superstar athlete David Beckham is featured in the ad 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 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.8 As this quote implies, companies such as Gillette enjoy several benefits and advantages that derive from creating global products and utilizing global branding These include economies of scale associated with creating a single ad campaign for the world and the advantages of executing a single brand strategy All global companies are trying to increase the visibility of their brands, especially in the key markets such as the United States and China Examples include Philips with its “Sense and simplicity” global image advertising and Siemens’ recent “Be inspired” campaign In the twenty-first century, global brands are becoming increasingly important As one research team noted: 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.9 332 Part Victoria 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 The Global Marketing Mix M10_KEEG4348_05_SE_C10.QXD 10/12/07 10:57 AM Page 333 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 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 ● ● ● 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 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 more than 20 years ago when it introduced the 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 HDTV sets and the PlayStation family of video game consoles and portables (see Case 10-1) Co-branding is a variation on combination branding in which two or more different company or product brands are featured prominently on product Chapter 10 Brand and Product Decisions in Global Marketing 333 M10_KEEG4348_05_SE_C10.QXD 10/12/07 10:57 AM Page 334 STRATEGIC DECISION-MAKING in global marketing The Sony Walkman The history of the Sony Walkman illustrates the fact that it is up to visionary marketers to create global brands Initially, Sony’s personal stereo was to be marketed under three brand names In their book Breakthroughs!, Ranganath Nayak and John Ketteringham describe how the global brand as we know it today came into being when famed Sony Chairman Akio Morita realized that global consumers were one step ahead of his marketing staffers: At an international sales meeting in Tokyo, Morita introduced the Walkman to Sony representatives from America, Europe, and Australia Within two months, the Walkman was introduced in the United States under the name “Soundabout”; two months “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.”10 Peter Brabeck-Letmathe, Chairman and CEO, Nestlé Part Source: P Ranganath Nayak and John M Ketteringham Breakthroughs! How Leadership and Drive Create Commercial Innovations that Sweep the World (San Diego, CA: Pfeiffer & Company, 1994), pp 128–129 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 soft drinks Some of these businesses are global, and some are local For example, Virgin Megastores are found in many parts of the world, while the operating scope of Virgin Rail Group is limited to 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 Table 10-1 shows the four combinations of local and global products and brands in matrix form Each represents a different strategy; a global company can use one or more strategies as appropriate As noted previously, some global companies pursue Strategy by developing local products and brands for individual country or regional markets Coca-Cola makes extensive use of this strategy; Georgia canned coffee in Japan is one example Coca-Cola’s flagship 10 334 later, it was on sale in the United Kingdom as “Stowaway.” Sony in Japan had consented to the name changes because their English-speaking marketing groups had told them the name “Walkman” sounded funny in English Nevertheless, with tourists importing the Walkman from Japan and spreading the original name faster than any advertising could have done, Walkman became the name most people used when they asked for the product in a store Thus, Sony managers found themselves losing sales because they had three different names for the same item Morita settled the issue at Sony’s United States sales convention in May 1980 by declaring that, “funny or not,” Walkman was the name everybody had to use Suzy Wetlaufer, “The Business Case Against Revolution,” Harvard Business Review 79, no (February 2001), p 116 The Global Marketing Mix M10_KEEG4348_05_SE_C10.QXD 10/12/07 10:57 AM Page 335 Table 10-1 Product Brand Local Global Local Global Local product/local brand Local product/global brand Global product/local brand Global product/global brand Product/Brand Matrix for Global Marketing cola brand is an example of Strategy In South Africa, Coca-Cola markets Valpre brand bottled water (Strategy 2) The global cosmetics industry makes extensive use of Strategy 3; the marketers of Chanel, Givenchy, Clarins, Guerlain and other leading cosmetics brands create different formulations for different regions of the world However, the brand name and the packaging may be uniform everywhere Global Brand Development Table 10-2 shows global brands ranked in terms of their economic value as determined by analysts at the Interbrand consultancy and Citigroup To be included in the rankings, the brand had to generate about one-third of sales outside the home country; brands owned by privately held companies such as Mars are not included Not surprisingly, Coca-Cola tops the list However, one of the telling findings of the rankings is that strong brand management is now being practiced by companies in a wide range of industries, not just by consumer packaged-goods marketers.11 Rank Value ($ billions) Coca-Cola Microsoft IBM GE Intel Nokia Toyota Disney McDonald’s 10 Mercedes-Benz 11 Citi 12 Marlboro 13 Hewlett-Packard 14 American Express 15 BMW 16 Gillette 17 Louis Vuitton 18 Cisco 19 Honda 20 Samsung 21 Merrill Lynch 22 Pepsi 23 Nescafé 24 Google 25 Dell 67.0 56.9 56.2 48.9 32.3 30.1 27.9 27.8 27.5 21.7 21.4 21.3 20.4 19.6 19.6 19.5 17.6 17.5 17.0 16.1 13.0 12.9 12.5 12.3 12.2 Table 10-2 The World’s Most Valuable Brands Source: Adapted from “The 100 Top Brands,” Business Week (August 7, 2006), pp 60–61 11 Gerry Khermouch, “The Best Global Brands,” Business Week (August 6, 2001), pp 50+ Chapter 10 Brand and Product Decisions in Global Marketing 335 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Multilateral trade agreements, 24 Multinational company, 21 Multisegment targeting, 246 N NAFTA See North American Free Trade Agreement Napoleon’s code of 1804, 157 National advantage, 520 National competitive advantage chance, 524–525 demand conditions, 521–522 factor conditions, 520–521 firm strategy, structure, and rivalry, 523–524 government, 525 related and supporting industries, 522 National Football League (NFL) Europe, Nationality of top management, 538–540 Nationalization, 153 Nation-states, and sovereignty, 147–148 Negotiated transfer prices, 388 Nestlé, benefit segmentation, 234–235 competitors in Brazil, 57 currency exposure, 67 direct mail in Asia, 489 distribution in Brazil, 402 global branding, 334 international packaging teams, 343 PowerGel, 205 Pure Life bottled water in Pakistan, 55 telephone research, 190 New products development, 354–355 identifying, 353–354 new-product departments, 355–356 testing of, 356 Newly industrializing economies (NIEs), 53 Newspaper sales in India, 456 NFL (National Football League) Europe, NGOs (nongovernmental organizations), 557 Nielsen Media Research, 193 peoplemeter, 203–204 video gamer research, 208 638 Subject/Organization Index Page 638 Nike defense of labor practices and policies, 460–461 factory working conditions, 289–290 gender segmentation, 230 international advertising, 450 negative publicity, 458 Nintendo, video game console wars, 359–360 Nokia, 574 hypothetical market research scale, 208–209 image and advocacy advertising, 459 leadership, 539, 541 psychographic segmentation, 230–231 Nongovernmental organizations (NGOs), 31, 557 Nontariff barriers (NTBs), 32, 267 Normal trade relations (NTR), 270–271 North America Free Trade Area of the Americas (FTAA), 108–109 regional market, 80–84 North American Free Trade Agreement (NAFTA), 21, 24, 82–83 income and population of members, 82 map of countries, 83 Mexican currency crisis, 61 “Not invented here” (NIH) syndrome, 352 Novartis, 26 NTBs (nontariff barriers), 32, 267 NTR (normal trade relations), 270, 271 Nucor minimills, 333 O Observation, as data collection method, 203–204 OECD (Organization for Economic Cooperation and Development), 58–59 antibribery convention, 172 Offset, 391–392 Omnicom Group, 443 One Laptop Per Child, 55, 56 One-to-one marketing, 487 Open source software, 582–583 Operating system (OS) software, 570 OPIC, 151 Option, 68 Order processing, 423 Organic growth, 418 Organization, 541–545 geographical and product division structures, 547–548 international division structure, 545–546 lean production, 553–556 matrix design, 549–553 regional management centers, 546–547 Organization for Economic Cooperation and Development (OECD), 58–59 Organizing for global marketing, 541 See also Organization Outdoor advertising, 492–493 Outlet malls, 414 Outlet stores, 414 Outsourcing, 280 See also Sourcing management view on, 282 P Packaging, 342–345 aesthetics, 344–345 labeling, 343–344 Paid search advertising, 579 Parallel importing, 383 Parallel translations, 203 Pareto’s Law, 233 Paris Union, 161 Parker Pen, 31 Partnerships See Global strategic partnerships (GSPs) Patagonia, corporate social responsibility, 561 Patent Cooperation Treaty (PCT), The, 162 Patents, 158–163 Patterns of international organizational development, 545 geographical and product division structures, 547–548 international division structure, 545–546 matrix design, 549–551, 553 regional management centers, 546–547 PC (personal computer), 570 Peer-to-peer (p-to-p), 401 Penetration pricing, 365–366 Peoplemeter, 203–204 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM PepsiCo leadership, 541 negative publicity, 458 Numeromania contest (Latin America), 470 publicity for new blue can, 460 Persian Gulf War, 100 Personal computer (PC), 570 Personal interviews, 203 Personal selling, 476–478 nationality of sales force, 483–486 Strategic/Consultative Selling Model, 478–483 Personal selling philosophy, 478 Petróleos de Venezuela S.A (PDVSA), 53 Pharmaceutical industry, product development costs, 26–27 Phasing, 122 Philip Morris, 152 Philips Electronics, 25 Phones cell phone cameras, 573–574 Internet phone service, 588–590 Iridium satellite telephone system, 201–202 mobile commerce (m-commerce), 585 mobile gaming, 588 Nestlé telephone research, 190 smart phones, 586–588 Physical distribution, 398, 421–423 inventory management, 423 logistics management, 428 order processing, 423 transportation, 424–428 warehousing, 424 Piggyback marketing, 405 Pirated movies, 362–363, 365 Place utility, 399 Platform, 354 Political environment, 147–154 nation-states and sovereignty, 147–148 risk, 148–154 sourcing, 284–285 Political risk, 148–154 seizure of assets, 153–154 taxes, 151–152 Polycentric orientation, 20–21 Polycentric pricing, 381 PolyGram, Population, segmentation by, 225–229 Page 639 Porsche hedging, 67–68 insulation from currency fluctuations, 374 psychographic segmentation, 231 Ports foreign management of U.S ports, 425–426 Port of New York, 427 Positioning, 247–253 attribute or benefit, 248 competition, 249–250 foreign consumer culture positioning (FCCP), 248, 253 global consumer culture positioning (GCCP), 250–253 local consumer culture positioning (LCCP), 253 quality and price, 248 use or user, 248 Postindustrial countries, 57 Power distance, 127, 130 Prada, e-commerce, 579 Preferential tariff, 270 Preferential trade agreements, 78–80 Presentation plan, 480 Presentation strategy, 480 Price discrimination, 386 Price escalation, 372 Price fixing, 387–388 Price transparency, 375 Pricing, 362–364 adaptation/polycentric pricing, 381–382 calculating prices, 368–370 companion products, 366–367 competitive behavior, 380 cost-plus pricing, 368–370, 372–373 countertrade, 389–392 currency fluctuations, 373–376 dumping, 385–387 export price escalation, 368–369 extension/ethnocentric pricing policy, 381 financial objectives, 364–365 geocentric pricing, 382 global pricing policy alternatives, 380–383 governmental policies and regulations, 378–379 gray market goods, 383–385 inflation, 376–378 luxury goods marketing, 394–396 market skimming, 364–365 nonfinancial objectives, 365–366 penetration pricing, 365–366 sourcing as strategic pricing tool, 380 target costing, 367–368 terms of the sale, 370–373 transfer pricing, 388–389 U.S exports to Europe, 375 Primary data, 199 Privacy, and RFID, 432–433 Private international law, 155 Pro forma invoice, 277 Procter & Gamble, 116 benefit segmentation, 235 Internet presence, 578 Organization 2005 plan, 548 shampoo sampling in China, 473 Product (RED), 557 Product adaptation-communication extension, 349 Product division structure, 547–548 Product extension-communication adaptation, 348–349 Product invention, 345 Product markets, United States and EU vs BRIC, 352 Product placement, 495–498 Product saturation levels, 60 Product strategy, 479 Product transformation, 349 Product/brand matrix, 335 Product/market growth matrix, Product-communication adaptation (dual adaptation), 349–350 Product-communication extension (dual extension), 347 Product-market, 241 Products, 327 brands, 328–329 See also Brands companion products, 366–367 definition of, 327 global, 331–335 global vs local, 337–341 international, 331 invention and innovation, 350–351 local, 330–331 new products in global marketing, 353–356 packaging, 342–345 types, 327–328 warranties, 345 Subject/Organization Index 639 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Projective technique, 206 Promotion, 469–476 couponing, 473–475 issues/problems, 474–476 sampling, 472–473 Promotion sites, 577 PRS Group, 150 Psychographic segmentation, 230–233 Public international law, 155 Public relations (PR), 457–463 Publicity, 457–463 Purchasing power parity (PPP), 66 Put option, 68 Q Qibla Cola, 113–114 Qualitative information, 199 Quantitative information, 199 Quota, 267 QVC, 491–492 R Race, ethnic segmentation, 235–237 Radio frequency identification (RFID) future of, 432–433 inventory management, 423 South Korea, 572 Rational appeal, 447 Reactivity, 204 Red Bull, 202 Reebok, pricing in India, 377–378 Regiocentric orientation, 21 Regional economic organizations, 176–177 Regional management centers, 546–547 Regional markets Africa, 102–105 Asia-Pacific, 91–93 Europe, 93–99 Latin America, 84–90 Middle East, 99–102 North America, 80–84 Regulatory environment, 176–178 Related and supporting industries, 522 Relationship enterprise, 319 Relationship strategy, 478 Religion, 113–114 Denmark’s clash with Middle East, 110, 130 Islamic law, 156–157 Renault, 30 Renault Logan, target costing, 367 640 Subject/Organization Index Page 640 Research See Market research Restraining forces, 30–32 Restrictive administrative and technical regulations, 269 Retail See Global retailing Revaluation, 65 Revlon, lawsuit against United Overseas Limited (UOL), 157–158 RFID See Radio frequency identification Ring tunes, 587–588 Rivalry among competitors, 507 Robert Mondavi Corporation, 19–20 Rolling Stones, Chinese censorship, 46 Rolls-Royce, 230 Royal Philips Electronics, 25 Rules of origin, 79 Russia economy, 40, 43, 51 GM joint ventures, 300 Moscow billboards, 457 Moscow Bread Company (MBC) distribution system, 404 murder of journalists, 171 political risk, 150, 152 psychographic and behavior segmentation, 233 Starbucks trademark protection, 161 vodka, 233, 235, 236, 246 S S C Johnson & Sons, 167 SACU (Southern African Customs Union), 105 SADC (Southern African Development Community), 105 Sales nationality of sales force, 483–486 personal selling, 476–478 six-step presentation plan, 481–482 Strategic/Consultative Selling Model, 478–483 Sales agents, 486 Sales force automation (SFA), 187 Sales on open account, 279 Sales promotion, 469–476 couponing, 473–475 issues/problems, 474–476 sampling, 472–473 Sampling, 207, 472–473 Samsung Electronics advertising, 445 negative publicity, 458 Satellite telephone system, 201–202 Scalar equivalence, 207 Scale development, market research, 206–207 Scale economics, 29 Scaling in market research, multidimensional scaling (MDS), 208–210 Schick-Wilkinson Sword, 220 Seagram Company, Search engines, 571 Ask.com, 595 paid search advertising, 579 Seattle Coffee Company, 139 Secondary data, 197 Segmentation See Market segmentation Seizure of assets, 153–154 Self-reference criterion (SRC), 132–133 Selling proposition, 447 Sematech, 319 Sequencing, 122 Services trade, 62–65 SEZ (special economic zones), 265 Sharp Electronics Corporation, 329 Sherman Act of 1890, 164 Short message service (SMS), 587 Short-term orientation, 128 SICA (Central American Integration System), 84–85 Sight drafts, 278–279 Singapore ASEAN (Association of Southeast Asian Nations), 92 authoritarian state capitalism, 48 Single-column tariff, 270 Skype, 589 Slovenija, branding, 342 Slow Food movement, 124–125 Smart car, 360–361 Smart phones, 586–588 SMS (short message service), 587 Snecma, 312 Social responsiveness, 557–561 Socialism centrally planned, 45–46 market, 46–50 Society, 110–112 See also Culture aesthetics, 114–117 attitudes, beliefs, and values, 112 dietary preferences, 117–118 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM diffusion theory, 134–137 impact of marketing on culture, 122–125 language and communication, 118–122 marketing implications of social environments, 137–139 religion, 113–114 Software operating systems, 570 patents, 163 Sony companion products, 366–367 convergence, 573 leadership, 536–537, 544 PlayStation (PS3)/video game console wars, 359–360 pricing of PlayStation (PS2) and PlayStation (PS3), 366 segmentation, 232 transistor radios, 295, 569 Walkman, 333–334, 366 SonyEricsson, 302 Sourcing, 280–286 as strategic pricing tool, 380 call centers, 280–283 country infrastructure, 284 customer needs, 283 factor costs and conditions, 282–283 foreign exchange rates, 285–286 laptop computers, 368 logistics, 284 management vision, 282 political factors, 284–285 Sourcing decision, 280 South African Breweries/SABMiller in China, 324–325 South America, Free Trade Area of the Americas (FTAA), 90, 108 South Korea cooperative strategies (chaebol), 318–319 digital future, 572 information and communications technologies (ICT) access, 568 Southern African Customs Union (SACU), 105 Southern African Development Community (SADC), 105 Sovereignty, 147–148 Soviet Union, economy of former countries, 51 Special economic zones (SEZ), 265 Page 641 Specialty retailers, 412 Specific duty, 272 Sponsorship, 493–495 Lenovo Group, generating publicity through sponsorship, 468–469, 472 Spotmarket, 65 Spreadsheet, 570 SRC (self-reference criterion), 132–133 SRI International, 230 Stages of market development high-income countries, 57–59 lower-middle-income countries, 52 low-income countries, 50–51 marketing implications of the stages of development, 60–61 marketing opportunities in LDCs and developing countries, 53–56 The Triad, 60 upper-middle-income countries, 52–53 Stakeholder, 557 Stakeholder analysis, 557 Standardized global marketing, 244–245 Standardized/extension approach to marketing, 19–20 Starbucks, 34 Beijing’s Forbidden City, 293 corporate social responsibility, 558 fair trade in coffee, 142–143 sampling, 473 success and challenges, 292, 299 trademark protection in Russia, 161 Stern Pinball, pricing of exports, 375 Strategic alliances, 307 See also Global strategic partnerships (GSPs) Strategic alternatives in global marketing, 345–347 choosing a strategy, 352 product adaptationcommunication extension, 349 product extensioncommunication adaptation, 348–349 product invention, 350–351 product-communication adaptation (dual adaptation), 349–350 product-communication extension (dual extension), 347 Strategic decision making, Strategic intent, 515–518 Strategic international alliances, 307 Strategic partnerships See Global strategic partnerships (GSPs) Strategic/Consultative Selling Model, 478–483 Streaming audio, 584 Streaming media, 584 Streaming video, 584 Subaru 360, Subcultures, 112 Subsidies, 263 Sugar subsidies, 290–291 Sun Microsystems, Microsoft lawsuit, 146, 151 Supercenters, 413 Supermarkets, 412 Supplier bargaining power, 507 Supply chains, 421–423 Support media, 492–493 Survey research, 203 Sustaining technologies, 575 SUVs market research, 210–211 targeting of U.S market, 238–239 Swatchmobile, 360 Sweatshops, 288–290 Sweden, government resource ownership, 46–47 Switch trading, 392 T Tamagotchis, 131 Target costing, 367–368 Targeting, 220, 237–243 automobile industry targeting Generation Y (Gen Y), 255 concentrated global marketing, 245 current segment size and growth potential, 238–239 development of target marketing strategies, 244–245 differentiated global marketing, 246–247 feasibility and compatibility, 240 market selection framework, 240–243 MTV, 256–257 multisegment targeting, 246 potential competition, 239–240 standardized global marketing, 244–245 Subject/Organization Index 641 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Tariffs, 265, 270–273 common external tariffs (CETs), 79 countervailing duties (CVDs), 272 customs duties, 272 duping, 272 European tariffs on Asian shoe imports, 258, 262 Harmonized Tariff System (HTS), 266, 270, 271 nontariff barriers (NTBs), 32, 267 preferential tariff, 270 single-column tariff, 270 temporary surcharges, 273 two-column tariff, 270 variable import levies, 273 Taxes, 151–152 corporate taxes and political risk, 152 export tax incentives, 263 tariffs See Tariffs transfer prices, 388–389 Technology See also Computers digital revolution, 569–571 disruptive technologies, 574–575 e-commerce, 576–579 sustaining technologies, 575 Telefónica, 124 Telematics, 586 Telephones cell phone cameras, 573–574 Internet phone service, 588–590 Iridium satellite telephone system, 201–202 mobile commerce (m-commerce), 585 mobile gaming, 588 Nestlé telephone research, 190 smart phones, 586–588 Teleshopping, 491–492 Television direct marketing, 491–493 European advertising regulation, 457 flat-panel TV sets, 326, 330 interactive television (ITV), 491–492 peoplemeter, 203–204 product placement, 495–498 Temporary surcharges, 273 Terms of the sale, 370–373 Tesco, expansion of distribution, 398–400 Testing new products, 356 Theft, video piracy, 362–363, 365 642 Subject/Organization Index Page 642 Thermax, product innovation strategy, 351 Tiered branding, 333 Timberland Company, The, corporate social responsibility, 559 Time drafts, 278–279 Time utility, 399 Time-series displacement, 212 Tobacco advertising regulation, 446 WHO Framework Convention on Tobacco Controls, 495 Toyota, 14, 16, 22, 23, 28 Toyota Production System (TPS), 553–555 Toys “R” Us, 175, 380 Trade Central European Free Trade Association (CEFTA), 98–99 fair trade in coffee, 142–143 free trade agreement See Free trade agreement (FTA) Free Trade Area of the Americas (FTAA), 90, 108–109 free trade area See Free trade area (FTA) free trade zones (FTZ), 265 merchandise and services, 63–65 most-favored nation status See Trade, normal trade relations (NTR) normal trade relations (NTR), 270–271 preferential trade agreements, 78–80 regional markets See Regional markets Trade and Tariff Act of 1984, 272 Trade deficit, 62 Trade mission, 260 Trade sales promotions, 469 Trade secrets, 167, 169 Trade show, 260 Trade surplus, 62 Trademarks, 158–163 Transaction sites, 577 Transaction value, 271 Transfer pricing, 388–389 Transistor, 569 transistor radios, 295, 569 Transit advertising, 493 Transnational cyberworld, 44 Transnationality, 23 Transportation, 26, 424–428 Treaties Patent Cooperation Treaty (PCT), 162 Treaty of Rome, 177 Triad Power, 60 Triad, The, 60 TRIPs (Agreement on Trade-Related Aspects of Intellectual Property Rights), 169 Two-column tariff, 270 U U.S See United States Uncertainty avoidance, 127, 130 Uniform resource locator (URL), 571 Uniform Trade Secrets Act (UTSA), 169 Unilever differentiated global marketing, 247 failure of Power, 356 market research, 191 United Nations digital opportunity index, 568 International Court of Justice (ICJ), 154 United Nations Conference on International Trade Law (UNCITRAL), 175 United States (U.S.) Act of State Doctrine, 154 American Automobile Labeling Act, 344 American communication styles, 123 balance of payments, 62 BRIC supplier base and infrastructure/logistics comparison, 422 Byrd Amendment, 385 CEO pay, 560 coupons, 474 Cuban Liberty and Democratic Solidarity Act, 180–182 dollar vs yen, 374 exports, 267 Federal Trade Commission, 164 Foreign Corrupt Practices Act (FCPA), 170–171 foreign management of U.S ports, 425–426 global automakers’ targeting of U.S market with SUVs, 238–239 import duties, 270 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Internal Revenue Code Section 482, 397 McDonald’s focus on U.S market, 37–38 North America regional market, 80–84 open-skies agreement with Germany, 379 outlet malls, 414 patent laws, 162 Port of New York, 427 pricing exports to Europe, 375 product markets, vs BRIC, 352 sugar subsidies, 290–291 Trade and Tariff Act of 198, 272 U.S.-Canada Free Trade Agreement (CFTA), 82 Uniform Commercial Code (UCC), 156 Uniform Trade Secrets Act (UTSA), 169 United Technologies, 228 Unix, 582 Unlawful Internet Gaming Enforcement Act, 183 Upper-middle-income countries, 52–53 URL (uniform resource locator), 571 User status segmentation, 233 V Value chains, 5, 421–423 assembler, 554–555 downstream, 555–556 Value equation, Value networks, 574–575 Values, 112 aesthetics, 114–117 Chinese Value Survey (CVS), 128 dietary preferences, 117–118 religion, 113–114 Variable import levies, 273 Venezuela economy, 53 VF Corp., offshoring, 285 Video game console wars, 359–360 Video piracy, 362–363, 365 Vietnam See also Asia economic transformation, 70–74 tariffs on shoe exports to Europe, 258, 262 Page 643 Vietnam National TextileGarment Group (Vinatex), 259 Virgin Group megastores, 417, 419 new product evaluation, 356 publicity of Richard Branson, 459 VisiCalc, 570 Vitango, 55 Vivendi, VNU, 193 Vodka global positioning, 248 in Russia, 233, 235, 236, 246 Voice over Internet protocol (VoIP), 588–589 Volkswagen foreign consumer culture positioning (Fahrvergnügen), 253 lawsuit against GM, 158 leadership, 552 Moonraker market research project, 204 outsourcing, 283 Swatchmobile, 360 Vonnage, 590 W Wal-Mart, 16 buyer bargaining power, 506 corporate social responsibility, 560 Fuji photofinishing contract, 459 India, 152 international sales, 412, 417 market research in China, 191 RFID, 432–433 Sam’s Club, 413 supercenters, 413 Walt Disney Company Disneyland Paris, 195–196 Magical Journey promotion, 470 Warehouse club, 413 Warehousing, 424 Warranties, 345 Web sites design and implementation, 579–583 types of, 577 Web, the See World Wide Web Whirlpool Corporation, 29 competitive advantage, 508 European operations reorganization, 548 global marketing strategy, 217–219 leadership, 538 Whiskey, marketing in China, 434, 437 WiMax (World Interoperability for MicroWave Access), 585 WIPO (World Intellectual Property Organization), 160 Wireless fidelity (Wi-Fi), 585 Wireless Internet, 585–586 World economy, 41–44 World Health Organization (WHO) Framework Convention on Tobacco Controls, 495 sugar subsidies, 291 World Intellectual Property Organization (WIPO), 160 World Interoperability for MicroWave Access (WiMax), 585 World Trade Organization (WTO), 24, 63–64, 77–78 normal trade relations (NTR), 270–271 World Wide Web, 571 advertising, 579 Ask.com, 595 broadband, 583–584 domain names, 580 eBay in Asia, 593 e-commerce, 576–579 gambling, 183 gaming, 584 privacy, 582 types of Web sites, 577 Web site design and implementation, 579–583 WPP Group, 451 Y Yahoo!, 571, 576, 579, 580, 584, 590 Yahoo! Japan, 593 Yugo, Subject/Organization Index 643 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Page 644 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Page 645 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Page 646 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Page 647 Z04_KEEG4348_05_SE_SIDX.QXD 10/18/07 11:23 PM Page 648 Z02_KEEG4348_05_SE_CRED.QXD 10/13/07 10:11 AM Page 613 CREDITS CHAPTER Page 3: Courtesy of China Photos/Getty Images, Inc Page 6: Courtesy of Ryan Pyle Page 8: Courtesy of Jordan Fischer/Greensburg Daily News Page 12: Courtesy of HSBC Bank Page 13: Courtesy of The Coca Cola Company Page 25: Reprinted Courtesy of Caterpillar, Inc Page 31: “Labor Day” Courtesy of Mike Thompson/Copley News Service Page 35: Courtesy of AP Wide World Photos Page 39: Courtesy of David Hartung/Getty Images, Inc CHAPTER Page 41: Courtesy of Alexander Nemenov/AFP/Getty Images, Inc Page 46: Courtesy of AP Wide World Photos Page 48: Courtesy of Tim Hall/Getty Images, Inc.–Photodisc Page 53: 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Inc Page 593: Courtesy of AP Wide World Photos Page 594: Courtesy of IAC InterActive Corporation 616 Credits ... 24 Google 25 Dell 67.0 56.9 56 .2 48.9 32. 3 30.1 27 .9 27 .8 27 .5 21 .7 21 .4 21 .3 20 .4 19.6 19.6 19.5 17.6 17.5 17.0 16.1 13.0 12. 9 12. 5 12. 3 12. 2 Table 10 -2 The World’s Most Valuable Brands Source:... Citi 12 Marlboro 13 Hewlett-Packard 14 American Express 15 BMW 16 Gillette 17 Louis Vuitton 18 Cisco 19 Honda 20 Samsung 21 Merrill Lynch 22 Pepsi 23 Nescafé 24 Google 25 Dell 67.0 56.9 56 .2 48.9... Nissan, Ford, and other global automakers have established Mexican operations that produce nearly million vehicles per year, three-fourths of which are exported .23 20 21 22 23 24 “China is complex