1. Introduction to Global Marketing
Chapter 1

2. Why Global Marketing?
Blaise E. Bergiel

3. Markets ________________ country borders
Markets ________________ country borders. Customers &/or competitors cross frontiers to buy and to sell.
Significant _____________________ exist among customers from different countries; segments cut across _____________________ frontiers.
Improvements in ________________, & _________________ have lowered the cost of exporting & importing.

4. __________________ innovations and technological improvements have resulted in the development of new goods & services with international appeal.
Major advances in _______________ & the emergence of e-commerce have made possible the widening and linking of markets.

5. __________________________ exists in a wide range of industries in many countries.
The ________________________

6. Marketing Mix
__________
_________
___________
__________

7. Global Marketing
An organization that focuses its resources on global market __________ & _________________.
Difference between “regular” marketing and “global” marketing is the ________ of activities.
Note: there is ___________ number of countries that a company must offer its goods & services in to be automatically qualified as a global marketer.

8. Marketing
Marketing can be described as one of the ________________________ of a business, distinct from management, finance, operations, etc.
Marketing can also be thought of as one of the activities that along with product design, manufacturing, & transportation logistics, comprise a firm’s ______________________________.

9. Boundaryless Marketing
Firms involve marketers in _____________, __________________________, and other value-related decisions from the start.
It ensures that marketing _______________ permeates all value-created activities in a company.
It gives ___________________ at all levels & in all departments the opportunity to be involved in marketing.

10. Value Chain & Boundaryless Marketing
____________
____________
________
_____________
____________
______________

11. Customer Value Equation: Value =____________/_________
Benefits = combination of the ______________________________________________ (distribution)
Price = ____________________, etc.

12. General Rule of Customer Value:
Value as perceived by the customer can be increased in three basic ways.
1. _____________ bundle of benefits
2. __________________ price (money, time, effort, etc.)
3. ________________________

13. General principle to the customer value equation:
“The smaller the ______________ (i.e., price) in the value equation, the ______________ the overall value created”.

14. Note: _______________ to General Principle: _______________ i.e.,

15. Competitive Advantage:
When a company succeeds in creating ____________________ for customers than its competitors.
Global Industry:
one in which ___________________ can be achieved by integrating and leveraging operations on a worldwide scale. (Michael Porter)

16. Marketing Myopia:
The failure of a company to define its _____________________________ from a broad consumer orientation.

17. Note: Achieving competitive advantage requires executives and managers to maintain a well-defined ___________________ ___________________________.

18. Focus:
the concentration of attention on a ___________________________ .
i.e., the former chairman of Nestle told an interviewer: “We are food and beverages. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it along.”

19. Theodore Levitt, “The Globalization of Marketing,” Harvard Business Review: The world is becoming more ___________________.

20. The Wall Street Journal: “Levitt’s comment about the world becoming homogenized is bunk. There are about two products that lend themselves to global marketing and one of them is ______________________.”

21. The rally cry of the global marketer is: “__________________________ ______________________________”
A company that engages in global marketing creates both ____________________ and ____________________ products.

22. A firm’s global marketing strategy is concerned with:
_____________ versus _________ of the marketing mix
Global market ________________
Coordination of ______________ activities
________________ of competitive moves

23. The world's local bank: ____________________

24. A. outside U.S. 70%, outside Japan 70%
Measured by national income, the U.S. represents the world’s largest single market for goods and services while Japan represents the world’s second largest single market. What percentage of world income is found outside the U.S. & Japan, respectively:
A. outside U.S. 70%, outside Japan 70%
B. outside Japan 85%, outside U.S. 70%
C. outside U.S. 75%, outside Japan 85%
D. None of the above

25. Management Orientation: the EPRG framework
__________________________
Home country is ________________, sees ________________ in foreign countries.
“If it is good enough for our customers at home it’s good enough for the rest of the world.”
(An ____________________ company is characterized by an Ethnocentric management orientation.)

26. Ethnocentric
This point of view leads to a ____________ or _____________ approach to marketing.
i.e., Until the mid-1990s, _______________ accepted only English language messages in many of its discussion areas.
In the Ethnocentric international company, foreign operations or markets are typically viewed as being ___________________ to domestic ones.

27. ____________________
Management’s belief or
assumption that each
country in which a
company does business
is _______________.
____________________
The term __________________ company is often used to describe such a structure

28. Polycentric
This point of view leads to a ___________ or _____________ approach that assumes products must be adapted in response to different market conditions.
i.e., When ____________ acquired Philips Electronics’ appliance unit, managers at the American company discovered that Philips washing machines manufactured in Germany & Italy did not have a single component or part in common.

29. in its view of the rest of
_____________
A region becomes relevant _____________ unit; mgt. goal is to develop an _______________ regional strategy. Is ethnocentric or polycentric
in its view of the rest of
the world.
i.e., a company decides to focus on market opportunities opened up by __________

30. _________________:
________ view, sees similarities and differences in home and host countries. “_________________ must be taken for granted.”
A company in which a geocentric mgt. orientation prevails can also be called a(n) ___________________ or _______________________ company

31. A company whose management views foreign markets as a convenient place to dispose of surplus production can be said to have a(n) _____ orientation.
A. polycentric
B. regiocentric
C. ethnocentric
D. geocentric

32. Some well-known companies & brands are listed in the left-hand column below. In what country is the parent corporation located?
1. Firestone Tire & Rubber
2. Burger King
3. RCA Electronics
4. Dr. Pepper
5. Brooks Brothers
6. Baskin-Robbins
7. Holiday Inn
a. Germany
b. Great Britain
c. United States
d. Japan
e. France
f. Switzerland

33. 1. Firestone Tire & Rubber = ________________ (Bridgestone)
Answers:
1. Firestone Tire & Rubber = ________________ (Bridgestone)
2. Burger King = ________________ (Diageo)
3. RCA Electronics = ___________ (Thomson SA)

34. 4. Dr. Pepper = _________________ (Cadbury-Schweppes)
5. Brooks Brothers = _____________ (Marks & Spencer)
6. Baskin-Robbins = ______________ (Allied Domecq)
7. Holiday Inn = ________________
( Bass PLC)

35. Forces Affecting Global Integration & Global Marketing
and
global
marketing
__________ Forces
_________ Forces

36. Driving Forces behind Global Integration
1. Regional ___________ Agreements: (_____________ Trade agreements): ___________: North American Free Trade Agreement; ____________: General Agreement on Tariffs and Trade.
2. Market ______________________ ____________________________.

37. 3. ___________________________:
4. _________________________ & Communication Improvements
5. Product ______________________: i.e., the pharmaceutical industry is characterized by product development cycles of _______ years and product development costs in excess of $____________ million.

38. 6. _____________: when a global company establishes a _______________ in quality, competitors must quickly make their own improvements to come up to par.
7. ___________________________ Trends:
1st. Economic growth in ________________ countries have created market opportunities
2nd. Economic growth has _______________ resistance to the entry of foreign firms into domestic economies.

39. 3rd. The worldwide movement toward _________ markets, ______________, and ___________________________.
8. __________________: some type of advantage that a company enjoys by having _______________________ in more than one country.

40. Four Types of Leverage:
A. ______________________ Transfers:
Note: A company in which a _________________ orientation (each country is unique) predominates cannot take advantage of experience transfers.
B. Scale _______________________:
C. _____________________ Utilization:
D. ______________________ Strategy:

41. It's True:
___________-U.S. operating income is growing faster than ____ operating income.
They have restaurants in approximately ________________________ countries.
In_________, McDonald’s restaurants have 2 kitchens, one for meat sandwiches & the other strictly vegetarian.