Chapter 1.

Introduction to Global Marketing

P. 3 Introduction and Overview
p. 4 Four growth strategies: Ex. Starbucks
Market Penetration
Market development
Product development
Diversification

Principal of Marketing: A Review

Value = Benefits/price (money, time, etc...
p6. Increase value as part of being competitive
Competitive Advantage, Globalization, and Global
Industries,
Access to cheaper production and higher demand
worldwide.
p. 18 THE IMPORTANCE OF GLOBAL MARKETING

U.S. has 25% of the world market

75% of Coke revenue is from outside of the U.S.
Wal-Mart's yearly income, $400 Billion, 30% outside of
U.S.
MANAGEMENT ORIENTATIONS
Ethnocentric Orientation (Mondavi)
Regiocentric Orientation (Beer)
Polycentric Orientation (Ford, Fadder)
Geocentric Orientation (also known as world or transnational
companies) such as Toyota and GM. Ongoing and dynamic
research for adaptation or standardization.

P. 20 FORCES AFFECTING GLOBAL INTEGRATION AND

GLOBAL MARKETING
Driving Forces:
1. Multilateral Trade Agreements (NAFTA)
2. Converging Market Needs and Wants and the
Information Revolution (Water)
3. Transportation and Communication Improvements
4. Product Development Costs (outsourcing)
5. Quality (Swiss Watches)
6. World Economic Trend
7.

Leverage:
Experience transfer,
Scale Economies,
Resource utilization (scanning the world for the cheapest
materials, or finance)
Global strategy (where to produce and where to sell)

8.

P. 25 Restraining Forces:
1. Management Myopia and Organizational Culture
2. National Control (non-tariff barriers, NTBs), Buy local
3. Opposition to Globalization
-----------------------------

CHAPTER 2: The Global Economic Development

P. 45
STAGES of MARKET DEVELOPMENT
Big Emerging Markets: China, India, Indonesia, South Korea,
Brazil, Mexico, Argentina, South Africa, Poland, and Turkey
1) Low-Income Countries (see page 45 for general
characterisrics)

GNI per capita < $995/Year: Bangladesh, Ethiopia

General characteristics:
Low industrialization
High birth rate and low life expectancy
Low literacy rates
High reliance on foreign aid
Political instability
Mainly in Africa south of the Sahara

2) Lower-Middle-Income Countries
GNI per capita $996-3,945/Year: India and Thailand
3) Upper-Middle-Income Countries: Newly industrializing
economies, GNI per capita $3,946-12,195 Brazil, Chile,
Malaysia
4) High Income Countries: GNI per capita> 12,196
The Triad: Japan, Western Europe, and the United States
-----------(Overall Opportunities)
--------------------------

CHAPTER 3: THE GLOBAL TRADE

ENVIRONMENT
P. 68
PREFERENTIAL TRADE AGREEMENT, allowed by WTO

(Forms of Economic Integrations)

I.

Free Trade Area (FTA)

Free trade between the member countries. But each

member sets its own policies toward the non-member
countries.
EX:
NAFTA,
European Free Trade Association (EFTA), which
includes Iceland, Liechtenstein, Norway, and
Switzerland.
II. Custom Union
Free trade between the member countries. In addition,
they have common policies toward the non-member
countries
EX:
Benelux countries, which consist of Belgium, the
Netherlands, and Luxembourg
III. Common Market
Free trade between the member countries. They have
common policies toward the non-member countries. In
addition, there is a free flow of factors of production
among the members.
Ex:
Mercosur (Southern Common Market) which consists
Of Argentina, Brazil, Bolivia, Chile, Paraguay, and
Uruguay
IV. Economic Union

Free trade between the member countries. They have

common policies toward the non-member countries. In
addition, there is a free flow of factors of production
among the members. Members have harmony and
coordination in their economic
Policies and decisions.
EX:
Belgium and Luxembourg
V. Political Integration
EX:
United States
_____________________________

CHAPTER 4: SOCIAL AND CULTURAL

ENVIRONMENT
100
p. 101 SOCIETY, CULTURE, AND GLOBAL
CONSUMER CULTURE
Define Culture: Transgenerational and conventional
practices of interacting with one and another in a
society*
P. 108 Attitude: responses to other based on our
perceptions and experiences.
Beliefs: strong opinion based on our past experience.
Values: Is our enduring beliefs (hard to change)

Religion, Has many definitions, but it is a source of

ttitude, beliefs, and values.
Aesthetics, Colors, Paintings etc..., (Italy and France as
compared with Saudi Arabia.)
Dietary Preferences; Dog, fish, beef, dairy products
horse, frog snake etc...
P. 107 Language and Communication

Verbal and non-verbal,

Verbal: Written or Spoken* (overdraft*, supermarket*,
Electrolux*, Gerber*, Nova*, Colgate*)
Non-verbal: Includes: Body and facial movement,
Proxemics, eye contacts, and handshakes*
p. 111 Marketings Impact on Culture
What we learn in one culture we can promote it in other
cultures, countries such as disposable products.
Outsourcing.
Negotiation, mode of promotion, Pricing on the
packaging.
P. 112 HIGH-AND LOW CONTEXT CULTURE
Differences*
P. 113. HOFSTEDES CULTURAL TYPOLOGY

Power Distance
Individualist Culture
Achievement (masculinity or quantity of life)
Uncertainty Avoidance
Long-Term Orientation
P. 118, SRC
----------------------

CHAPTER 5: The Political, Legal, and Regulatory

Environments
p. 127. THE POLITICAL ENVIRONMENT

Nation-States and Sovereignty

Whether market economy or planned economy, each
state seeks for its independence (b&*).
Political Risks
Some S. American or S. African countries.
Attitude to foreign investments: India low and Italy
high. Both had change of governments in 1945s.
p. 134
Seizure of Assets
Expropriation, Cub and American Corporations in
1959*.
Confiscation: Iran 1953 Oil Companies
Nationalization: Has a higher magnitude than the other
two with a broader scope meaning the whole industry.

INTERNATIONAL LAW (pertain to trade investment,

immigration.)
P. 135 Common Law Versus Civil Law
Common law is based on experience and existing cases
that were already decided on by various courts.
Code Law refers to written and explicit rules. They are
commonly divided in 3 codes:
Commercial
Civil
Criminal
p. 137 Islamic Law, Haram Shariiyat, Khoms*
Sidestepping Legal Problems: Important Business
Issues
Jurisdiction: Expatriate should understand the laws of
the host countries related to global marketing.
Also, the issue of extraterritoriality*
Intellectual Property:
Patents (invention),
Trademarks (brand name logo...), and
Copyrights (written)
The issue of counterfeiting and the general system of
preferences. C. Club. Paniosonic, Shish kabob in
Starbucks.
p. 143 Antitrust

To protect small businesses, customers, and

communities against the unbridle behavior of big
businesses)*
Also:
Encourage competition
Discourage price fixing or limiting production
(Discourage) collusion* (Secret and illegal agreements)
An example of Cartel:? OPEC
p. 146 Licensing and Trade Secrets
(Potential problem for the licensor)
P. 158 Bribery and Corruption: Legal and Ethical
Issues
Extortion*
Subornation*
Lubrication*
FCPA
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