Chapeter 1 : Intro to

GM

GM - mrkting prctise vary to country, cust. preferences, competitor, distrib. channel & communication stgy.

-Global Market participation (comp. operations in world market)-Standardization/Adaption- Global Marketing Stratergy (focus marketing activities)

-Market Penetration Strategy-Product Development Strategy-Market Development Strategy-Diversification Strategy

Key of Global Success1.Value creation (offer much benefit)2.Competative Adv.3.Focus (ex. nestle on food)

View Company Personnel1. Ethnocentric (home country superior)2. Polycentric (each country is unique/multinational comp.)3. Regiocentric (focus on regional strategy ex. US in North America)4. Geocentric (world as potential market lead global strategy)

Driving force GM1. Multilateral trade agreement2. Converging market needs and info. revolution3. Trasport & Communication improvement4. Product Develpment Cost5. Quatity6. World Eco. Trends7. Leverage

Restraining Forces (slow in GM)1. Managemet myopia and organizational calture2. National Controls Opposition Globalization

GM Strategy

Chapter 2 : GM

Enviroment

Eco. System1. Market Capitalism-indv. & firm allocate resource- resource privately own-consumer decide goods, firm decide what & how much produce- Gov. promote competition & protect consumer

Centrally Planned Socialism- Gov. serve public interest (decide G&S produce and quantity)- consumer spend what available- gov. own industries- D > S- no prod. diff. , advertising or price stra.

Centrally Planned Capitalism- resouce allocation used in eviroment of provate resource ownership- ex. sweden gov. control 2/3 expenditure, resource more command then market oriented- ex. Singapore ban import, manufacure and sale chewing gum bcse mess pub place.

Market Socialism- market allocation policies permitted within overall enviroment of state ownership- ex. China (freedom to business)

High Income Countries (up 9k){US, South Korea}

Upper Middle Income Countries (btwen 3k to

9k){Brazil}

Lower Middle Income Countries (btwen 0.7k to 3k)

{Indo}

Low Income Country (less 7k){India}

Stage of Market

US , Japan, Germany, France, Britain, Canada, Italyleaders high income to establish eco. stabilityG- 7 Countries

29 nation with market-allocation eco systemenable members achieve highest eco growth & social well-being of population

OECD (Organization for Eco. Cooperation

& Development)

Dominant eco centers of worldJapan, Western Europe, US, Expanded, Triad, Pacific Region, North America, Europian Union

The Triad

Chapter 3 : Social & Cultural

Enviroment

- Culture-ways of living build by human transmitted generation to another- conscious & unconscious value, ideas, attitudes and symbols Social Institution

1. Family2. Edu.3. Religion4. Gov5. Business6. Institution Fund

Material and Nonmateria Culture- Physical component (cloth,tool,art,bodyadornment, homes)Subjective culture (religion,perceptions,attitues,beliefs,value)

Ethic group, gender, organization or family category of people

Global consumer culture is consumption of symbols-specific category(coffee culture, fast-food culture so on)Promarily the product of a tech. interconnected world-cultural info. (internet,cell phone)

-Attitude (learn to respond in consistent way to given object/entitiy)-Belief (knowledge that indv. hold to be true)-Value (feeling specific mode are preferable to another)

Aesthetic (sense of beutiful or not, depend on visual & style)ex. Red (associated with liveliness majority but poor in african) , white (purity, clean but death in part of Asia, Gray (inexpensive in Japan but high quality in U.S)

Dietary Preferences (culture influence in food or consumption)ex. Subway educate indians to sadwitch bcse they rarely eat bread.

Hofstede's Cultural Typology1. Power Distance (weak member society accept and expect power distribute equal)2. Individualism3. Masculinity (Men in material success, woman welfare of child)4. Uncertainty Avoidance (unconfortable with unclear, unstructure question)5. Long - Term Orientation (focus achieve goal)

Reduce cultural Myopia (reference to own culture value)- define prob. in home country cultural traits- define problem in host country traits- isolate SRC infulace & examine it-redefine prob. without SRC & solve host country situation

Adoption Process1. Awareness (aware 1st time prod.)2. Interest (learn more)3. Evaluation (benefit to buy)4. Trial (sample prod.)5. Adoption (purchase & repurchase)

Characteristic of Innovation1. Relative Advantage2. Compatibility3. Complexity (easy/hard understand)4. Divisibility (tried & used without big expense)5. Communicability (communicated to potential market)

enviroment sensitivity (prod. must be adapted to culture-specific needs of diff. national market)ex. food most sensitive (Dehydrated Knorr Soups no popurity in US bcse prefer canned soups, Starbucks overcome culture barries in Britian)

• Chapter 4: Legal & Political Enviroment

Int. politics (close political relation btwen countries, benefit more)Int. Law (firm restricted by home & host country laws)conflict btwen host & home law to follow, choose litigation (delays & costy) or arbitration (included in ori. contract)Int. terroism & marketing- threat or ystematic use of violance to achieve political goal-creates new opportunites for firm in few industries such as construction, security and IT- direct effect (immediate cost) & indirect effect ( decline in per capita income, purchase power & stock value)- chill effect (uncertainty of nation eco. leads to reduction in demand consumer & industrial goods)- regulation impose by gov to reduce this may delay supply of imputs, up admin burden and require form invest new procedures.

1. Corporate governance (relation stake holder that determine direction & performance of org.)- key element *transparency of firm operation *financial result *principles in measures sales, expanses, asset and liability2. Intellectual property (legal entitilement of right in use idea, knowledge or invention)3. Bribery and corruption

Domestication (demand ownership & impost regulation to ensure prod. locally produce & profit to country)- effect? *poor cooperation from manager *increase cost, low quality prod. *distruption of int. distribution plan *lack of market disciplineRisk faced for operating abroad:1. Shortage foreign currency2. Long nego with gov.3. Increase tax rares or strict application in host country tax4. gov. control on proces importedLegal system1. Comman law - based on tradition depend in written code2. Code law - based on Roman law3. Antidumping law - no below-cost sale*to protect domestic industries & reduce import

4 area gov. activies that concern to international marketera) embargoes & trade sanctions (actions to distort trade for adversarial & political purpose)b) Export controls (deny acqusition of goods by adversaries, export license)c) Import controls (tariffs, voluntary restraint agreement {nontariff to cut backs trade action} & quota system {reduce volume imports}- Problem face1. huge price for domestic consumer2. social cost damage eco.3. downstream change in import composition4. often not work5. supply grow far beyond demandd) Regulation of Inernational Business Behavior (boycotts, political risk including owernership risk, operating risk and transfer risk)

Home Country

Political Legal & Enviroment

Host Country Political &

Legal Enviroment

The International Enviroment

Ethical Issue

Chapter 6 (5A) : Strategic Planning

A. Strategic Planning ProcessB. The Local Company In Global Enviroment

Globalization Driver1. Market Factor- purchasing power, development infrastructure (communication), technology, distribution and cross-border retail alliance2. Cost Factor (avoid cost inefficency &duplicate effort)3. Enviroment Factor (rapid tech. , internet)4. Competative Factor

Global Marketing - process of market entry & expansionStrategy integration needed due:1. national market increasingly similar2. Scale eco. become important3. Duplicating prod. in country more obvious4. Pressure of leverage resource5. Increase no. customer operating globally6. Similar competitor in market

Stratergic Planning Process

contribute to financial & non financial objectivea) rise efficancy of new prod.b) reduce operation costc) Improve qualityd) market share performanceDemension to be kept in mind in strategic plainninga) pontential benefit in short and long runb) cost in management time and process realignmentc) effort management in allocate resource

Understanding

& Adjustin

g the core

strategy

A. Market & Competitive Analysis- Understand trend and source of profit in diff country. ex, automobile industry, trend costomer demand - safety, economy? design?Internal Analysis- exemine the capability in strategic move with their resource ex. Nokia decide on focus digital cellular phone

Formutating a

GM Strategy

1. Choice of competitive strategya) cost leadership (offer same product in lowest cost then the competitor)b) differentiation (focus on single segment, creating highly diferent prod. line)c) focus (focus effort on few market segment rather then whole market)

2. Country-Market Choice (market expension determine allocation resource among various market, alternetive concentration or diversification)- factor determine country market selectiona) stand-alone attractiveness of market (ex. China bcse of population)b) global strategic importance of market (ex. finland in shipbuilding due lead tech develop. in vessel design)c) Possible synergies offered by market (ex. entry in Latvia after succes in estonian market - similar market)

3. Segmentation- basic of grouping customersa) Demographic (income, population, age, gender, edu. , occupation)b) Psychographic (attitude, values & lifestyle)c) Behavior (people buy or not ex. light, heavy, user)d) Ethnic group

Global Marketi

ng Progra

m Develop

ment

decision based on 4 area:1. standardization in product offering2. Marketing Approch (glocalization - uniformity in strategic nature but take care of localize element)3. Location and Extent of Value (add activities of innvoation for market efficiently)4. Competative Move - using cross-subsidization that is uses of resource in one part of world to fight in competitive battle. ex. Fuji cutting Kodak market in US. Kodak respond by increasing advertise in japan.

Implementing Global

Marketing

Challange in GM1. Insufficient reseach & tendency over standardize-failure (ex. promote sucess in US success not in Japan)2. Inflexbility in planning and implementation (too much customize in local production, lost brand image)3. Local resistance in the form of not-invented-here syndrome (NIH), occur when org not part of planning process or adoption force by headquater.Localizing Global Marketinga) Management Process (minimize NIH syndrome by using motivational policies)b) Organization Structure (establish global or regional prod. manager & support group at headquaters)c) Corporate Culture (managemet development must be trasparent, equal chance non-executives for fast track to top management)

Chapter 7 : Marketing Organization, Implementation and

ControlOrganization Structure3 categories in managing foreign activties based on degree of internalization1. Little or no formal organization (domestic operation handle int. transaction on ad hoc basis to saperate export department)2. International division (centralize one entitiy for responsibe in int. activities)3. Global Organization structured by product, area function, process or customer.

6 Global Structure1. Product Structure (responsibility for marketing prod. lines)2. Area Structure (basis on georaphical area)3. Functional Structure (basis on basic task of firm)4. Customer Structure (based on distinct worldwide customer groups)5. Mixed Structure (combine 2 or more)6. Matrix Structure (multinational org. for plan, org. , control business, resource, strategies and geo. regions.

ImplementationLocus of decision making1. Decentralization (sub have autonomy & as profit center)2. Centralization (decision making at headquater)3. Coordinated Decentralization (stratergy from global or regional headquarters but sub free but need implement in consultation btwn headquarters & sub)Factor affect decision making multinational coop.1. degree of involvement in int. opreation (low inv. parent comp, high autonomy of sub)2. Business firm engaged.3. Size & improtance of market4. Human resource capability of firm.5. Firm country origin & political history of the area.Networked Global Organization (avoid prob. duplication, inefficiency and resistance to idea develp.)Center of excellence:1. charismatic (individual who recognized as expertise in function or area)2. Focused (single area of expertise, tech or prod. base)3. Virtual (individual work around the world through electronic)promote Internal Cooperation- intellectual capital, teacing-how to succeed in busienss

Controlaction to verify & correct action that differ from original plans.1. Bueaucratic/ Formalized Control- budget system used for allocation fund among sub, plan global production capacity and supply, evaluation performance and info exchange among sub, org. and headquaters.2. Cultural control-socialization process and informal, personal interaction3. Exercising Control- control given will vary sub characteristic and location.- ex. Malaysia - emerging eco. managerial talent in short supply, headquater participate more in small decision making.

A . Sti m uli to Internati onalizeProacti ve M o ti vati on (sti m uli to att am pt strategic change)1 . Pro fit A dv.2 . U n ique Pro d.3 . Tech . A dv.4 . Exclusive In fo . (know ledge about m arketp lace that not w ide ly share)5 . Eco . o f sca le (increase in t. prod . he lp reduce cost prod. for dom esti c sale )6 . M arket S izeR eacti ve M oti vati on (infl uance to sh ift envirom ent by change acti viti es over ti m e)1. Com petati ve Pressure (fear losing dom esti c m arket)2 . O verpoducti on3. Stab le or D eclin ing D o m esti c Sa les4 . Excess Capacity (eq iupm ent no t fu lly uti lize)5 . Saturated D om esti c M arket6 . Pro xim ity to custo m er and ports (c lo seness to fore ign m arket help in t. acti viti es)

B. Change A gentIn ternal1 . En lightened M anagem ent2. N ew M anagem et3. S ign ifi cant In ternal EventExternal1 . Fo re ign D em and2. Com peti ti o n3. D o m esti c D istributors4 . Service F irm s5. B usiness A ccosiati ons6. G ov. A cti viti es7. Expo rt In term ediaries (export & trad ing m anagem et com panies)

C. G o ing Internati onal1. Expo rt- stage in gradual in ternati onalizati o n (A ITEE)a) aw areness to m arket oppro tun ityb) in terest in in t. acti vityc) tria l - exp lore in t. m arketd) evaluati on o f export eff orte) expo rt adapti on2. Expo rt M anagem ent Com panies- provide int. m arketi ng serv ice & d istributi on, get com m issionTrad ing Com panies- expand pow er & w ealth w ith trad ing right & protecti o n by naval force in exchange for tax paym ent- Sogo shasha from Japan- Export Trad ing C om panies (ETC s) to im pro ve export perfo rm ance of sm al & m edium size fi rm in U SE-C om m erce- ab itlity off er G & S in W ebeg. B 2B in ch inese m arket user in ch ina (a libaba.com )

Licensing & Franch isingagreem ent of licensor perm its ano ther to use in te llectual property in exchange o f ro yalty .- A dvantage1. cap ita l investm ent not requ ired2. royalty g ive incom e and support R & D3. reduce risk R& D fa il and patent n fringem ent liti gati on.- D isadvantage1. Lim ited Experti se2. Creates o w n com peti ti or3. A llow m ulti nati onal co rporati on cap italize o lder tech .- P rincip le issues in nego licensing agreem ent : a ) expo rt contro l regu lati o nb) co nfidenti alty in te lectual property & techc) d isute reso luti o nd) specifi c term , term inati o n & surviva l right- Tradem ark Licensing (perm it use nam e or logo on m erchandise such as c loth ing)Franch ising- franch iser grant other independent enti ty as franch isee right to do business in specifi ed m anner- em phasize on prod. so ld w hile business form at focus the w ay do ing business- franch ising co ncern :a) standard izti on (not 100% un ifo rm ity)b) protecti on of total business systemc) G o v. in terventi ond) se lecti on & tra in ing

D . Fore ign D irect Investm ent (FD I)- investm ent to expand long-term interest- Portf olio Investm ent (puchase o f stock & bond internati onally)Categorized as:a) R eso urce seekersb) M arket seekersc) Effi ciency seekersR eason FD I1 . M arketi ng factor (grow th & profi t m o ti vati ons ; w ider m arket acces to m anta in and increase sa les ; C ircum vent barries to trade; lo ca l custom er preference for do m esti c G & S)2 . G ov. Incenti ves (F isca l incenti ve in term of tax; F inancia l Incenti ve in fund to lo ans, bu ild ing ; non fi nancial incenti ves in protecti o n co m peti ti on through tariff s, im po rt quo tas)Type o f O w nersh ip1. Fu ll ow enersh ip (o utside enti ty no im pact to m anagem ent)2 . Jo int ventures (co llaborati on 2 m ore org. fo r m ore a transitory period , reaso n for go vem ental & co m m ercia l)3 . Strategic A lliance/ Partnersh ip (2 m o re com p. w ith com m on business o b j., spread cost & risk , b lo cking com peti to rs)4 . G ov. Co nsorti a (gov. support & subsid izati o n, m ainta in gobal leadersh ip in som e secto r)

Chapter 9 : Market Entry

and Expension

Chapter 10 :

Product Adaptation

1. Core Product- benefit customer expect from G&S- nonrational factor (shine of new model car) supported rationalization (excellent resale value)2. Augmented Product- primary physical & non-physical attributes that increase prod. value (ex. prod. warrenty, installation service)

Product Variable (prod. modification)- Standardization or Adaptation- 4 basic approch int. market :a) sell prod. int.b) modify prod. for diff countriesc) design new prod. for foreign marketsd) Incoporate all diff. into one prod. & intro it globally

* Why Standardization? 1. eco. scale in prod.2. eco. in prod. R&D3. Eco. in marketing4. Shrinking marketplace (universal brand)5. Universal Acceptability6. Global competation

*Why Adaption?1. Diff. use to diff. contries in performance specification2. High degree of cultural3. Gov. influence (halal labeling)4. Diff. consumer behavior patterns.5. Local competition

Market Enviromenta) Gov. Regulationb) Nontariff barriers (prod. standards, language in label info.)c) Customer characteristics, expectations & prferensesd) Eco. Development (demand helps determine potential G&S)e) Competitive Offering (monitor competitor prod. feature)f) Climate & geography (ex. choclate sell in hot/cold climates)

Product Characteristic

1. Product Constituents & Content (not violate local

legal regulation

Apperance (adaption in style, colour and so on)

Branding (symbol used to diff. its offering to the

compatitor)- Trademark

Packaging (to protect, promote and user

convenience, labeling)

Method of operation or usage (prod. my sold in

domestic but not foreign market, prod. adjustment)

Quality

Service (prod. warranties, repair arrangement)

Country-of-Origin Effect (origin prod. have strong

effect on perception about foreign prod.)

Company Considerations

prod. adaption depends- ability to control cost,

estimate market potential & secure profit in long

term

analysis of market

ability mantain consistency in marketing

effort

managerial expertise in decide standardization &

adaption

Product Counterfeiting

Counterfeit Goods (goods bearing unauthorized

representation like copyright, trademark that

legally protected in country)

largest counterfeit goods is China, Brazil, Taiwan,

Korea & India

Marketing Communication Process1. Encoding (convert mesej to symbolic form that understandable)2. Decoding (trasform mesej symbol back to thought)3. Noise (distraction)4. Outcome (how well obj. met in generate aweness, +ve attitude or increase purchase)5. Feedback (analyze success)

International NegotiationDanger in Int. Nego:a) Parochialism (misleading perception)b) Stereotyping (generalize in group in +ve or -ve)

Uses Internet in nego allow : - overcome distance- minimize social barriers- obtain instant feedback- nego from home base- nego with many customer simultaneously

Process of nego (5 Stage)1. Offer2. Informal meeting (discuss term & acquainted)3. Strategy formulation (review negotiated result)4. Negotiations (competitive or collaborative)5. Implementation (choice of location, negotiator character)

Marketing Communication Strategy1. Promotional Mix (creating total communication program for use in target market)2. Push Strategies (personal selling, short distribution channel)3. Pull Strategies (depend on mass communication in long distrubution channel)4. Integrated Marketing Communication (use of broad range of promotional tools)

Comunication Tools1. Business & trade journals and directories (select media that efficiency in reach target and cost min)2. Direct Merketing (make relationship with customer by direct response advertising or direct selling)3. Internet4. Trade Shows and Mission (event to display prod. or discribe service to customer, supplier & so on)5. Personal Selling (high cost & immediate feedback)

General Guide to satisfied market intermediary interaction to work:- Know the sales scene- reasearch the customer- work with culture- Learn from representative

Chapter 12 : Marketing

Communication

Chapter 14 : Global Product Management &

Branding

Glo

bal P

rodu

ct D

evel

opm

ent Stage of prod. develp. process :

1. Idea Generetion2. Screening3. Product & process Develp.4. Scale-up5. Commercialization

Source of Idea Generation: - company , customer, lead user, procurement requisition from gov.- facilitating agent such as advertising agency

Time Lag btwen prod. develop. & into. prod. to market depend on : - the prod. involved- degree of newness- customer characteristic- geographic proximity- firm-related variables- degree of commitment of resource

Glo

bal P

rodu

ct D

evel

opm

ent Reason R&D activites abroad:

1. tech. transfer from parent to sub2. new & improve prod. for foreign market3. new product & processes for simultaneous application4. new tech. of long term nature

Multidisciplinary teams:- Max payoff from R&D by streamlining decision making- reduce develop. time- reducive overall cost- trim manufacture process

3 techniques in int. product testing :1. Laboratory test markets (use consumer reactions in controlled enviroment)2. Microtest marketing (use permenent panel consumer & assesses their willingness to buy after exposure to media & purchase incentives)3. Forced distribution test (rely on report from consumer reaction to new product alredy in the market)

Global Product Launch_ intro. prod. to 3 to more region within timeframe- measure success by involvent of country managers, prelaunch attention to localization & traslation, increased education & suport of sales channel

Man

agem

ent o

f the

Pro

duct

& B

rand

Por

tfol

io Product Portfolio anaylisis- based on growth rate & market positions- used to analyse business entitles. prod. line or indv. product, market; prod. & business interlinkagesAdvantage prod. protfolio- view of competitive structure- guide to global marketing strategy based on resources- guide formulation of marketing objective based on prod. line- visual communication goalDisadvantage?- foreign not same rule as domestic competition- diff relation market share & profitability- gov. regulation- local laws- diff. production sites impact perceptions of risk and qualityManaging brand protfolio- co- branding (alliance 2 more brand in offer)

- 3 choice of branding:1. use of corporate name2. use family brand for a wide prod. line3. use indv. brand for each item in prod. line

Man

agem

ent o

f the

Por

dut &

Bra

nd P

ortf

olio Characteristic Global Brand

- strong quality signal & compete on emotion- cater need of feeling cosmopolitan- reflect pro. & personal status of user- use monetary & human resource to benefit societyBrand Strategy Decision- avoid hiding globality by communicating features of brand to consumer- tackle home-country bias- satisfy basic quality with brand- carefully crafted brand portfolop aloow marketers serve market- portfolop need to be periodically & regulary assessed- need to assess term of current sales, loyalty, potential & trendPrivate Brand Policy- intermediaries own brand prod or store brand- method to use this:1. umbrella branding with intermediary name2. saparate brand name for indv. prod. or product line

Chapter 15 Global Service

Difference btween G&SG - physical, object, device or thing.S - Deeds, performance or effortG - fix in form & require physical distribution

- Intangibility (cannot felt, touch, taste)- Perishability (cannot be stored for future usage)- Customer Involvemet - Customization (midify, make according to customer)Heterogeneity (never same from one delivery to other)Stand-alone service- compete with goods- compete with each other- problem matching service capasity to variation in demand- require customer involvement- sensitivity to customer culture, beliefs & preferences- custom madeProb. with serivce1. Quality perception (determine by employees)2. Market Transparency (difficulty in evaluating service provider)3. Service heterogeneity (vary content & quality as customer requirement change)4. Service require new channel of distribution5. Cultural sensitivity

Global Transformation of ServiceFactor rapid growth of int service trade:1. reduce gov. regulation in transport, bank & telecomunication2. decrease regulation of service industry by industy group3. tech advance & increase service trade opportunity4. expansion of labor intensive and tech. incentiveInternational Trade ProblemRegulation of service tradeObstacles to service trade1. Barries to entry2. Problem of performanceCoperations & Involvement in International Service MarketingEcomerce & Intenet help in Need for multilingual Website- cost effective marketing tool- access new customer and increase sales- customer-centric company- generate trust- demonstrate cultural sensitivity and beat competition- show company work, deals internationally- search engine accessService and academia- high education largest service export in US. contribute $15.5b to eco.

Corporations and Involvement in International Service MarketingTypical int. service- financial- construction, design. engineering- legal & accounting- teaching- management consulting-tourism serviceStrategic Implication for int. service marketing1. Indentify the nature and aim of service offering2. Communicate the performance of service in mass or one-on-one level3. Train org. personnel to convey spirit, value & atittitudes.4. address issue of service pricing and financing5. Consider the distribution implication of int. Service