Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Course Title: 460.483 Global Marketing and Strategy, Reg#U4630
Course Catalog Description:
This course lays the foundation to gaining competitive advantage in the global marketplace by providing a
hands-on understanding of the competitive implications affecting global marketing strategies, as well as
covers the factors that govern the decision to enter export marketing and analyzes planning, organizing,
and managing an international business marketing strategy. Topics include foreign market surveys; the
role of competitive intelligence; understanding trade barriers, pricing, distribution channels, and cultural
differences that affect marketing strategies; and how to create a global marketing strategy. Students
should leave the course with a comprehensive understanding of global competitive marketing core
concepts and how global marketing strategies can affect a company's future performance.
Instructor: Nance Rosen, MBA
Hello!
Welcome to the course. I’m looking forward to working with you to meet our course objectives.
Global marketing and strategy has played a significant role in the success of many large
companies for decades. Of course with the Internet giving almost every company of any size
worldwide access to customers and consumers, it seems that any company anywhere strives to
have a presence in as many countries as possible, beyond its own borders.
Of course, it’s not logical for literally every company to see itself as a viable player in the global
economy. For example, a small restaurant draws its clientele from the local city, town or village.
That restaurant should focus its marketing efforts on local media, both conventional and online,
as well as local promotions (including coupons, demonstrations and even signage) to draw
customers.
The use of social media, including Twitter, Facebook, Yelp, and CitySearch (and like sites in
every country or region) is appropriate for companies of every size and aspiration. Producing
websites that use SEO to garner organic listings on search engines (and paid listings as well) in
some way creates a global audience (if not global customers) for a small, medium or large
enterprise.
However, the real purpose of our course is to look at the kinds of companies that have the
opportunity to do significant business in the global environment. These are companies that
typically start in a single home market because it has attractive local resources, such as raw
material and labor and most importantly: consumers who have the appropriate purchasing
power. In other countries, companies start up primarily because local resources such as
inexpensive labor are prevalent, and the actual consumers are outside the home market.
How companies grow to global status and why some succeed phenomenally is our area of
interest. Remember, some of the great brands that are iconic in their industries each started in a
local market. This includes The Coca-Cola Company, Nike, Microsoft, Disney, and even
WalMart, among others.
My goal is for you to understand how to plan for international marketing success and harness
the decision-making criteria and skills so you can become familiar with all the critical processes
of global marketing.
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Instructor Contact Information
Instructor: Nance Rosen
Email: Nance@NanceRosen.com
Work Phone: (310) 622-5936 USA
Office Location: 10131 National Blvd., Suite B, Los Angeles, CA 90034
Office Hours: We can arrange to meet before or after class
A quick biography of your instructor:
Nance Rosen, MBA is a former marketing executive with The Coca-Cola Company. She was
the first woman director of marketing in the Fortune 500 technology sector. She is past
president the of Medical Marketing Association and former host of International Business on
public radio. Nance is now publisher of Pegasus Media World and the founder of DITclub.com.
In 2009, her publishing firm produced a Wall Street Bestseller, Business Week bestseller and
the number one sales book on Amazon. The author of Speak Up & Succeed and the Library of
Success, Nance is an instructor at UCLA Extension in the Business and Management
Programs. For more on Nance Rosen, visit: http://www.NanceSpeaks.com.
Instructor Expectations
Welcome! I'm looking forward to working with you, getting to know your professional or
education background and how you plan to use the course in your career. My goal is to be clear
about my expectations for your fulfilling the course requirements and procedures.
Here are a few expectations I would like you to know about as we begin this course. While you
seek to learn and master the concepts and tasks in this course, some things will come easily to
you and other things will be more challenging. We must understand that this is the nature of
taking on a new area of expertise. To be successful, you must do your own work and take
responsibility for reaching out to me when you need help. My goal is for you to find me both
responsive and supportive.
Your In-Class Participation
Sharing Responses: Every day in class, expect to share your responses you write for the
exercises, assignments and discussions (on the due dates). You will also turn in your written
responses.
As soon as we are up on Blackboard, the classroom can be active all week, not just on
weekends.
Starting on your work several days before it is do will give you more time for larger projects
when you need it. I hope you will not only share your responses, but also interact with your
peers and me, sharing your opinions, relevant information from things that you’ve read, and
examples from your experience. Your responses should include more than phrases such as "I
agree with that" or "Interesting comment." The distinguishing feature of a well-done comment
might include an objective and critical analysis of what you read, what you experienced; or,
possibly a short synopsis of a chapter or a related assignment from another course.
Your work should feature good writing, correct spelling and mechanics. We judge one another
substantially by the quality, clarity and depth of our writing. Communication should be
professional and if online, should use good netiquette. In the spirit of scholarly discussion, I
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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expect respectful responses indicating whether you agree or disagree with others. Make sure to
stay on topic. In our learning model, the heart of active learning occurs through the discussions
that help you test your ideas, reinforce what you have learned, and share resources with others
in the class.
When We Are On Blackboard
Responses to your postings: I will be in the classroom almost every day. I will respond to
questions within 36 hours, or the next time we see each other in class.
Put my name in postings to me (To Nance). Do the same for responses to everyone else. No
messages are private - so please expand on any topic. Feel free to call me during my office
hours: Monday between 2 pm and 3 PM Pacific Time and Wednesday between 7 PM and 8 PM
Pacific Time). You may send an email to me, if you need to arrange a different time, or for any
other reason related to our course.
When You Are Confused
If after reading an assignment, you do not understand what to do: please email me your
questions. This is much better than turning in an assignment that is not done correctly and
losing points.
Thank you for your thoughtful reading of the expectations; I welcome your comments. Have a
great learning experience!
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Syllabus Outline
This will help you understand the organization of our course. The textbook chapters for each
week/unit are directly related to that week/unit topic. We may substitute other readings and
assignments – so be sure to pay attention in class.
Unit 1
Reading Associated With This Unit
Chapter 1 & 2
Introductions
 Global Marketing
 The Global Manager
 Importance of Global Markets
 Development of Global Marketing
 Your Role in Global Marketing
Unit 2
Chapter 3 + 4
The Global Economy
 International Trade
 Basic Theories of World Trade
 Outsourcing
 Economic Considerations
Cultural and Social Forces
 Definition of Culture
 Cultural values
 Language and Communication
 Cultural Differences
Unit 3
Chapter 5
Political, Economic, Social and Regulatory Climate
 Risks and Opportunities
Global Markets
 Markets and Buyers
 Consumer Markets
 Business Markets
 Government Markets
Unit 4
Chapter 6 + 7
Global Competitors
 Globalization of Competition
 Home Country Actions and Global Competitiveness
 Competitors from Emerging Markets
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Global Marketing Research
 International Marketing Research
 Challenges in Planning International Research
 Studying the Competition
 Outsourcing Research
 Developing a Global Information System
Unit 5
Chapter 8
Global Market Participation
 International Marketing Operations
 Evaluating National Markets
 Geographic Market Choices
 Country Selection
Global Market Entry Strategies
 Exporting
 Foreign Production
 Ownership Strategies
 M&A and Exit Strategies
Unit 6
Chapters 9 + 10
Mid-term
Global Product Strategies
 Product Design
 Packaging and Labeling
 Warranty and Service Policies
 New Product Development
Global Strategies for Services, Brands, Social Marketing
 Marketing Services including Social Marketing
 Branding
 Trademarks and Brand Protection
Unit 7
Pricing for Global Markets
 Profit and Cost Factors
 Market Factors
 Environmental Factors
 Managerial Issues in Global Pricing
Managing Global Distribution Channels
 Structure of Global Distribution System
 National Channels
 Channel Partners
 Global Distribution
 Global Logistics
 Global Trends in Distribution
Chapter 11
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
Unit 8
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Chapters 12 +13
Global Promotion Strategies
 Global Promotion Strategies
 Personal Selling
 Global Account Management
 Selling to Businesses and Governments
 Other Forms of Promotion
Managing Global Advertising
 Global vs Local
 Global Campaigns and Media Strategy
 Global-Local Decisions
Unit 9
Chapter 14
Organizing For Global Marketing
 Elements that Affect Global Marketing Organizations
 Types of Structures and New Trends in Global Organizations
 Controlling the Global Organization
Unit 10
Global Marketing and Strategy Review, Case Study
Unit 11
Key learnings from our course
Final Project Update and Presentation
Chapters 15+ 16
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Course Introduction
This is a course that takes its foundation in fundamental marketing principles and practices.
Your prior experience or education in marketing will be extremely helpful, especially familiarity
with key concepts such as the “marketing mix,” “segmentation,” “basic market research,” and
“product lifecycle.”
If you do not have a background in these fundamentals, you will be able to use this course to
gain knowledge of them: just be prepared to do a little catching up in your free time. Most
marketing concepts and jargon can be typed into a search engine of your choice where you can
learn about them. Along with typical resources such as Google and Yahoo, YouTube is a great
place to find videos, lectures, animation and other learning aids.
Here are some things to think about as you begin our course.
What products or services do you particularly like?
How do you choose the brands your prefer?
How do you get information about new products – even new product categories?
How often do you try something NEW, versus using the same products repeatedly?
What geographic markets – outside of your home country – have you visited?
What are your preconceptions of products from different countries?
Do you see yourself as a global citizen and business person?
What global brands do you admire?
Can you impartially compare competing brands that may come from different countries?
How curious are you?
Learning Goals
At completion of the course, the successful learner should be able to:
1.
2.
3.
4.
Describe the differences between domestic, international, multinational, and global marketing
Develop and write a plan for a global marketing strategy
Develop a global media plan to promote the brand
Select the proper distribution channels for particular items in a particular target market
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Course Grading Policies
Grading:
100 points possible for all course components
Grades are assigned based on your work being responsive the task, accurate, concise and
insightful. Your course calendar may say Unit or Week. If your class has 2 units in one week,
read “Week” to mean “Unit.” So something that is due “Week 2” would be due “Unit 2.”
1. Discussion participation: Labeled “DQ1” for each week on the calendar below. Please see
the Discussion-Reflection Rubric for further information on grading policies
3 points for each of 10 discussion topics, total 30 points
2. Current Events in Global Marketing: Labeled “DQ2” for each week on the calendar below
1 point for each submission (one per 10 week); total of 10 points
3. Assignments: Labeled “A1” for 9 weeks (every week except 6 and 11) on the calendar below
3 points for each assignment; total 27 points
4. Midterm Project Update and Presentation: Labeled “MTP1” in Week 5 and due on Week 12
on the calendar below
15 points
5. Final Project Update and Presentation: Labeled “FTP1” in Week 10 and due Week 11 on the
calendar below
18 points
Tests/Quizzes:
There are no tests this course
Policies About Deadlines and Late Work:
Life happens and I understand that work and family emergencies occur. Remember that
participation in class based on the two discussion questions each week is worth a total of 44
points of your grade. If your written work associated with the discussion questions or
assignments is late but turned in during the next class, you’ll receive full points. For example,
work due Tuesday would be turned in on the following Thursday or work due Thursday is turned
in the following Tuesday. If the work from one week is turned in two meetings after it is due,
you’ll lose ten percent. After that, work will no longer receive a grade.
There is a 50% penalty for turning in the Midterm Presentation or Final Presentation. These are
due in class on the date indicated. Please email them by midnight of that class date. Late is
considered 24 hours after it is due.
If you will contact me before the work is late, we can try to work out something that will mesh
with your schedule. However, there are no extensions for the class. All work must be turned in
by the last day of class.
Academic Policies
Student behavior involving cheating, copying other’s work, and plagiarism are not tolerated
and will result in disciplinary action. Students are responsible for being familiar with the
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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information on Student Conduct in the General Information Section of the UCLA Extension
Catalog or on the website at www.uclaextension.edu
Discussion Rubric
Mechanics of the
Posting
Unsatisfactory
Uses incomplete
sentences, is
unstructured in its
organization, and
includes frequent or
consistent errors in
mechanics
(grammar, spelling,
usage) in each
paragraph. The
posting is
unreadable and
there is a distinct
lack of tone.
Basic
Uses complete
sentences and the
posting is
comprehensible. The
organization could
be improved to
present a more
coherent argument,
statement, or
question. Includes 23 mechanical errors
grammar, spelling,
usage) per
paragraph. The tone
is respectful.
Provides comments,
and some new
information on a
sporadic basis.
Interacts with only 12 participants in the
forum.
Proficient
Uses complete
sentences,
organization is
evident, and the
posting includes no
more than one
mechanical error
(grammar, spelling,
usage) per
paragraph. The tone
is clear and
respectful
Distinguished
Uses complete
sentences,
organization is clear
and thoughtful, the
posting is
grammatically
correct, and free of
spelling errors. The
tone is clear and
respectful.
Provides comments,
discussion,
questions, and new
information on a
fairly regular basis.
Interacts with a few
participants in the
forum.
Provides comments,
discussion,
questions, and new
information on a
regular, active, and
weekly basis. Shows
a high degree of
interaction with other
participants in the
forum.
Demonstrates a solid
understanding of the
concepts, topics, and
ideas as evidenced
by thoughtful
responses and
questions that show
a clear connection
(are integrated) with
the course material
at hand. The posting
shows depth, and
includes many
supporting details.
Demonstrates a
critical analysis of an
existing posted idea
or introduces a
different
interpretation to an
existing concept or
idea. Includes
comments,
discussion, and
questions that have
a clear connection
(are integrated) with
the course material
at hand.
Participation in the
Discussion
Provides minimal
comments and
information to other
participants in the
forum.
Content of Posting
Writes a general or
superficial posting
that is unrelated to
the discussion at
hand and/or posts no
comments.
Demonstrates a
restricted
understanding of the
concepts, topics, and
ideas as evidenced
by posting
information that
could be derived
from prior posts
and/or including
highly general
comments.
Demonstrates an
adequate
understanding of the
concepts, topics, and
ideas as evidenced
by posting
superficial, or
general statements
in the forum.
Includes a few
details in the posting.
Provides no
evidence of
agreement or
disagreement with
an existing
discussion.
Indicates agreement
or disagreement with
an existing
discussion but
provides no
justification or
explanation for
comments.
Indicates agreement
or disagreement with
an existing
discussion including
a limited explanation
or justification.
Provides comments,
discussion, and
questions without a
clear connection to
the course material
at hand.
Critical Thinking
Evidenced by
Posting
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Project and Written Assignment Rubrics
For all your written assignments – including your mid-term and final projects, you will apply what
you have learned. This rubric will help you assess your assignments.
Coherence &
Relevance
Transformation
Unsatisfactory
One cannot discern
the learner’s
perceptions and
attitudes or what he
or she learned.
It is not clear how
the experiences
transformed the
learner.
Basic
Paper adequately
describes the
learner’s
perceptions,
attitudes and what
she or he learned;
however, gaps and
omissions are
present.
There are gaps in
the learner’s
description of how
the experiences
helped transform him
or her into a scholarpractitioner.
Proficient
Paper describes the
learner’s thoughts,
perceptions,
attitudes and what
was learned; a few
gaps or omissions
are present.
Distinguished
Paper thoroughly
describes the
learner’s
perceptions,
attitudes and what
he or she learned
from the project.
Learner adequately
describes how the
experiences helped
transform him or her
into a scholarpractitioner.
Learner clearly
describes how the
experiences helped
transform him or her
into a scholarpractitioner.
The rubrics provide a way for you and your instructor to agree on the level of performance. It
provides the performance-based criteria that help to steer discussions so that they are effective
and reflect on your learning experiences.
PLEASE NOTE THAT ALL COURSE GRADES ARE FINAL
Incompletes: The interim grade Incomplete may be assigned when a student's work is of
passing quality, but a small portion of the course requirements is incomplete for good cause
(e.g. illness or other serious problem). It is the student’s responsibility to discuss with the
instructor the possibility of receiving an “I” grade as opposed to a non-passing grade. The
student is entitled to replace this grade by a passing grade and to receive unit credit provided
they complete the remaining coursework satisfactorily, under the supervision of and in a time
frame determined by the instructor in charge, but in no case later than the end of the next
academic quarter. At that time, the Registrar will cause all remaining Incompletes to lapse to
the grade "F". Note: Receiving an “I” does not entitle a student to retake all or any part of the
course at a later date.
Course Materials and Resources
Syllabus, PDF file
Required Reading
rd
Course Text: Global Marketing and Strategy, Gillespie, Jeannet, Hennessey 3 Edition
Articles or cases will be distributed online or in class, or found online
External links
Discussion and Reflection Rubrics
Course Calendar PDF File
Welcome Letter
Power Point
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Course Calendar
Reading
Unit 1
Assignments
DUE: Next
class
Unit 2
Chapters1 + 2
Chapters 3 + 4
Assignments
DUE: Next
class
Unit 3
Chapters 5
Assignments
DUE: Next
class
Unit 4
Chapters 6 + 7
Assignments
DUE: Next
class
Unit 5
Read Chapters 8
Assignments
Due: Next
class
Unit 6
Chapters 9 + 10
Midterm
Presentation
DUE: Next
class
Discussion Q 1
3 points
Discussion Q 2
1 point
Assignment 3 points
Midterm 12 points
Final 18 points
U01DQ1
U01DQ2
U01A1 3 pts
How does global
marketing relate to your
current or future career?
Current event: news
and why is it
interesting to global
marketers?
Read Case 2.3
Answer case question 5
U02DQ1
U02DQ2
U02A1 3 pts
What is your key learning
from one of these
chapters – and how you
would see yourself
applying it?
Current event: news
and why is it
interesting to global
marketers?
Read Case 4.2
Answer case question 2
U03DQ1
U03DQ2
U03A1 3 pts
What is your key learning
from one of these
chapters – and how you
would see yourself
applying it?
Current event: news
and why is it
interesting to global
marketers?
Pick a case to read from one of
this week’s chapters. Choose a
case question to answer
U04DQ1
U04DQ2
U04A1 3 pts
What is your key learning
from one of these
chapters – and how you
would see yourself
applying it?
Current event: what
happened in the
news this weeks and
why is it interesting
to global marketers?
Pick a case to read from one of
this week’s chapters. Choose a
case question to answer
U05DQ1
U05DQ2
U05A1
What is your key learning
from one of these
chapters – and how you
would see yourself
applying it?
Current event: what
happened in the
news this weeks and
why is it interesting
to global marketers?
Pick a case to read from one of
this week’s chapters. Choose a
case question to answer
U06DQ1
U06DQ2
MTP1
What is your key learning
from one of these
chapters – and how you
would see yourself
applying it?
Current event: what
happened in the
news this weeks and
why is it interesting
to global marketers?
Identify and describe a widely
purchased product produced in
your home country. Include the
means-end chain (see PPT and
Irish Convenience Food case).
3 pts
15 pts
Describe 2 segments that
purchase this product
form/category, including each
segment’s emotional, cultural and
other attachment to the brand.
See the Irish Convenience Food
case for description of targets.
Unit 7
Assignments
Due: Next
class:
Read Chapters 11
U07DQ1
U07DQ2
U07A1 3 pts
What is your key learning
from one of these
chapters – and how you
would see yourself
applying it?
Current event: what
happened in the
news this weeks and
why is it interesting
to global marketers?
Why do they buy? Create the
“average” customer profile for
each segment. Provide a name,
psychosocial profile, behaviors
and family/cultural situation.
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
Chapters 12 + 13
Unit 8
U08DQ1
U08DQ2
U08A1 3 pts
What is your key learning
from one of these
chapters – and how you
would see yourself
applying it?
Current event: what
happened in the
news this weeks and
why is it interesting
to global marketers?
U09DQ1
What is your key learning
from one of these
chapters – and how you
would see yourself
applying it?
U09DQ2 1 pt
Current event: what
happened in the
news this weeks and
why is it interesting
to global marketers?
Identify and describe a multinational branded product not
currently available in your
country. Describe 2 locally
produced products that compete
with it.
U09A1 3 pts
Chapters 15 + 16
U10DQ1
U10DQ2
U10A1
For your
assignment this
week, use the
Internet to
research and
produce your
assignment (see
U10A1).
Web and other
resources
What do you think is the
greatest challenge facing
a global marketer today?
Current event: what
happened in the
news this weeks and
why is it interesting
to global marketers?
Produce a SWOT analysis of the
3 brands (2 local and the one
multi-national).
U10DQ1
Which part of the world
would you most like to
market products – and
why?
U11DQ2
Current event: what
happened in the
news this weeks and
why is it interesting
to global marketers?
Assignments
Due: Next
class
Chapters 14
Unit 9
Assignments
Due: Next
class
Unit 10
Assignments
Due: Next
class
Unit 11
Final
Presentation
Due: Next
class
DQ =
A=
MTP =
FTP =
12
For your
assignment this
week, use the
Internet to
research and
produce your final
presentation
Produce a PEST analysis of the
home country
FTP1
3 pts
18 pts
To introduce the multi-national
branded product to a lucrative
segment in your home country:
create the ideal marketing mix.
Include one sample of marketing
communications
Discussion Question
Assignments
Mid-term presentation
Final presentation
All discussion questions, assignments, mid-term and final must be turned in with hardcopy and emailed to
Nance@NanceRosen.com. Make sure to put the code and your LAST NAME in the email subject line.
Ex.: U1DQ1Rosen
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Unit 1 Overview of The Marketing Opportunity and Challenge in a Global Environment
Introduction:
There is no “perfect way” to market every product, service or brand in a global minded
company. Do YOU have to be the “perfect marketer” to get your product or service to
consumers or customers in to new geographic markets?
Lecture:
There is no perfect world. Thus, there are no perfect companies. And, certainly there are no
perfect marketers.
There are global companies that appear to be working well in a vast array of countries, and
often they are marketing in ways that are very differently from each other. For example, you
may look at Nestle, Coke, Nike, Louis Vuitton, Subway, Lenovo and other successful global
marketers and see a range of approaches. What you will find similar is these brands’ desire to
learn as much as possible about the local environments before jumping in to new markets.
Fred DeLuca, the founder of Subway sandwiches started out with a basic requirement for his
new venture. As a new high school graduate, Fred asked a family friend to loan him $1000
($US) as a way to get himself started on a college education in the US. Instead of a loan to
pay college tuition, the friend told Fred to start a business with the money. The idea was for
this business to be successful – and pay for Fred’s complete college education. So, the young
man opened up a sandwich shop close to his college campus.
Today, Subway Sandwiches has over 30,000 stores in 92 countries!
Learn more about this educational and inspirational story by visiting this site:
http://www.subway.com/subwayroot/aboutsubway/history/subwayhistory.aspx
Thoughts to Help You Take Action as a Marketer
Consider what you would do today if someone gave you $1000 and said invest it in a new business –
that will one day be a global giant.
What would you need to know about your home country? What would you want to know about the
countries you plan on expanding to?
The textbook chapters one and two will help you frame good answers to these hard questions.
References/Resources:
http://www.careers.nestle.com
http://www.thecoca-colacompany.com/careers/index.html
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Unit 2 The Global Economy
Lecture
In a dramatic way that we have never seen before, the global economy has recently taken a
major downturn. In part, this has happened because our countries’ economies are so
interconnected. How did we become so interdependent? We now have the ability to
communicate 24/7/365 via telecommunications, particularly the Internet. Where our citizens and
brokers were once able to only invest in home country financial instruments or regional
economies, most of us are now able to purchase stocks, bonds, real estate, and other financial
products from nations around the world.
Investing in other countries used to be the special privilege of only sophisticated investors. Now,
it’s common to have “overseas” investments in almost every portfolio. Even if you are not
invested directly in the global economy, it’s likely your bank is.
When the rate that money in the US was lent dropped to all time lows, borrowers were eager to
purchase homes – with borrowed money. Some borrowers were qualified – they took out
mortgages on houses at a price they would be able to pay. As housing prices skyrocketed, less
qualified borrowers were encouraged to take out loans, because they expected that the
increase in the value of their homes would allow them to re-finance and pay back loans.
All these loans were packaged together – often with the unqualified borrowers sifted into the
same “paper pile” as qualified borrowers.
Investors were from many different nations were eager to get in on the US housing mortgage
market.
When reality hit – homes stopped increasing in value – and unqualified borrowers did not get
the anticipated rise in equity – the investors were left with a load of unpaid debts. Even the
qualified borrowers were affected as their home values were negatively impacted by
foreclosures in their neighborhoods. Many wound up owing a lot more than their homes were
worth – and many people simply “walked away” from their obligations.
Thus, the global economy was hurt because it wasn’t just US banks and lending institutions that
had made these loans. Global investors had bought them. Thus, we witnessed the near
complete crash of the global economy.
How has this affected our local and global companies – and even the wealth of our countries
and the companies they tax to “stay in business?” Many companies run on borrowed money.
They must have cash to pay suppliers and vendors, employees and other costs – while waiting
for their customers to pay their bills.
When banks failed and those that survived became “tight-fisted,” companies no longer had
access to the capital they needed. Many consumers lost jobs.
We’re all staying tuned to find out how this all comes out.
Thoughts to Help You Take Action as a Marketer
What do you think will happen during the next one to five years? Will there be a fast enough
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
15
recovery to keep most of our companies growing? Or will this new economy have a very longterm effect on economic well-being? What does that mean for consumer purchasing power?
Resources/References
The crisis of credit part one
http://www.youtube.com/watch?v=Q0zEXdDO5JU
The crisis of credit part two
http://www.youtube.com/watch?v=iYhDkZjKBEw
The textbook is a bit dated when it comes to the global economy – although the
fundamentals of global economics are still correct. As you read this week, consider how
important it is to stay current on news and new perspectives about the economy.
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
16
Unit 3 – Political, Economic, Social and Regulatory Climate
What Does “Think Global, Go Local” Really Mean?
Almost every branded product or service has a home country. That is, the first place where the
product was marketed, and often created. Without a doubt, the local influence: the culture,
economy, purchasing and use habits, overall appeal, packaging and even the components of
the product or service are greatly influenced by “home rules.”
A product or service may be wildly successful in its home country and then find a plethora of
problems as it is rolled out globally.
Think about Palmolive
Palmolive laundry soap is a perfect example of what goes on and what can go wrong, even
when the newest geographical market is sharing a border with the home country. Smartly,
Palmolive did its homework – called market research – when it came to taking its laundry soap
branded product from the US to Mexico.
In the United States, clean water is taken for granted. You turn on the tap and the water is now
only ever flowing – it’s clean and often quite tasty. I personally love tap water in New York City. I
think the water is the secret to the best tasting bagels that you can only find there.
Even in rural areas, providing and regulating clean water is a basic government service,
although some private companies such Culligan and Sparkletts provide some choices.
In Mexico, however, there are many locations throughout the country where clean water – in
fact any water, is not easily available. In some locales, a truck brings in water only a few times
each week. In other areas, the water is found in streams and rivers. Therefore, doing laundry is
not always an easy task, because water is a fundamental element of “doing the wash.”
Palmolive went into Mexico to observe and interview the people responsible for washing
clothes. In the highest income classes, water was plentiful and washing machines are as
common as they are in the US. So it was easy for Palmolive to simply change the packaging
language (from English to Spanish) and market that product in a similar fashion.
However, in rural areas, the wash is still being done – often in the river or when water is trucked
in. For those consumers, Palmolive need to develop a soap that used little water and was easy
to remove from cleaned clothes.
Thoughts to Help You Take Action as a Marketer
Consider what product or service you use regularly. Ask yourself: To use the product or service,
what ELSE has to be available to make it desirable in another country I am targeting. If the
resources available are different: what would you change in order to succeed?
Resources/References
http://www.colgate.com/app/Colgate/US/HomePage.cvsp
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
Unit 4 - Global Competitors
Lecture
Resources/References
Unit 5 – Global Market Decision-making
Lecture
Resources/References
Unit 6 – Creating Your Own Perspective as A Global Marketer
Lecture
Resources/References
Unit 7 – Global Strategies for Products, Services, Brands, Social Marketing
Resources/References
Lecture
Unit 8 – Pricing for Global Markets
Lecture
Resources/References
Unit 9 – Global Promotion Strategies
Lecture
Resources/References
Unit 10 – Global Campaigns and Media Strategy
Lecture
Resources/References
Unit 11 – Current Trends in Global Marketing
Lecture
Resources/References
Unit 12 – What is the Future for Global Marketers?
Lecture
Resources/References
17
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
18
Glossary
Chapter One
Definitions
Domestic
marketing
marketing activities aimed at a firm’s domestic market
Export
marketing
marketing activities undertaken when a firm sells its products abroad and when those
products are shipped from one country to another
Global
competence
the ability to balance local market needs with the demands of global efficiency and the
opportunities of global synergies
Global
marketing
strategy
a single transnational strategy for a product, service, or business that nonetheless
incorporates flexibility for local adaptation
International
marketing
marketing activities undertaken when a company becomes significantly involved in local
marketing environments in foreign countries
Multidomestic
strategy
a strategy pursued by a multinational firm in which various marketing strategies are
developed, each tailored to a particular local market
Multinational
corporation
(MNC)
a company that possesses extensive investments in assets abroad and operates in a
number of foreign countries as though it were a local company
Chapter 2
Appreciation
an increase in value or price of a currency
Balance of
payments
(BOP)
an accounting record of the transactions between the residents of one country and the
residents of the rest of the world over a given period of time
Capital
account
principal BOP account that records a country’s international financial assets and liabilities
over the BOP period
Common
market
a form of economic integration with all the characteristics of a customs union and in which
the free flow of resources, such as labor and capital, is encouraged among member
nations
Current
account
a principal part of the balance of payments statement that includes the key sub–accounts
of goods, services, and unilateral transfers
Customs
union
two or more countries that formally sign an agreement to drop trade barriers among
themselves and to establish common external barriers between member and nonmember
countries
Depreciation
a decrease in value or price of a currency
Exchange
rate
the ratio that measures the value of one currency in terms of another currency
Foreign direct
foreign investments over which investors assume some if not all direct management
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
19
investments
control
Free–trade
area
two or more countries that formally sign an agreement to drop trade barriers among
themselves but to allow each member country to maintain independent trade relations
with nonmember countries
Freely
floating
currency
a currency whose exchange rate is determined by the market forces of supply and
demand
Goods or
merchandise
account
BOP account stating the monetary value of a country’s international transactions in
physical goods
Invisible
exports
a country’s earnings abroad from intangibles such as services, remittances, and income
earned on overseas investments
Most favored
nation (MFN)
status
a guarantee in a trade agreement between countries binding signatories to extend trade
benefits to each other equal to those accorded any third state
Nontariff
barriers
nonmonetary restrictions on trade
Orderly
marketing
arrangement
(or voluntary
export
restriction)
an agreement between countries in which one country agrees to limit its exports to the
other
Pegged
currency
a currency whose price is fixed by its government to another currency or basket of
currencies
Portfolio
investments
investments, such as the purchase of stocks and bonds, over which investors assume no
direct management control
Quota
a physical limit on the amount of goods that can be imported into or, less commonly,
exported from a country
Services
account
BOP account stating a country’s international transactions in intangibles such as
transportation services, consulting, royalties on intellectual property, and dividends on
foreign investment
Soft currency
a currency that attracts little global demand
Tariff
a tax on goods or services moving across an economic or political boundary
Unilateral
transfers
all the transactions for which there is no quid pro quo, such as private remittances,
personal gifts, philanthropic donations, and aid
Chapter 3
Affective
culture
a culture in which speakers are allowed—even expected—to express emotions
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Body
language
nonverbal communications, including touching, making arm and hand gestures, and
keeping a proper distance between speakers
Cultural
paradox
a common behavioral norm in a culture that appears to contradict a prior conceptual
model of that culture
Culture
all human knowledge, beliefs, behavior, and institutions transmitted from one generation
to another
Culture shock
stress and tension resulting from coping with new cultural cues and expectations
Hadith
an authoritative collection of the sayings and reported practices of Mohammed
Halal
permitted under Islamic law
High–context
culture
a culture in which communication is more implicit and the meanings of words change
depending on who is speaking to whom, where that person is speaking, and under what
circumstances he or she is speaking
High–trust
society
a society in which trust is extended to persons beyond the immediate family, encouraging
the emergence of various voluntary organizations such as civic groups and modern
corporations
Individualism– a measure of culture capturing the extent to which a society evaluates a person as an
collectivism
individual rather than as a member of group
Koran
the sacred text of Islam
Kosher
conforming to Jewish dietary laws
Low–context
culture
a culture in which communication is explicit and words tend to retain their meaning in all
situations
Low–trust
society
a society in which trust is extended only to immediate family members
Masculinity–
femininity
a measure of culture relating to assertiveness/modesty and competitiveness/nurturance
Monochronic
culture
a culture in which activities are undertaken one at a time and people respect schedules
and agendas
Neutral
culture
a culture that discourages a show of emotion
Polychronic
culture
a culture in which multitasking is common, schedules and agendas bend to the needs of
people, and interruptions are common
Power
distance
a measure of culture capturing the extent to which the less powerful members within a
society accept that power is distributed unevenly
Sunna
a way of life prescribed for Muslims based on the practices of Mohammed and scholarly
interpretations of the Koran
Temporal
orientation
a society’s predominant time focus—either on the past, the present, or the future
Uncertainty
avoidance
a measure of culture relating to general worry about the future
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
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Chapter 4
Confiscation
expropriation without compensation
Domestication
the limitation of certain economic activities to local citizens
Expropriation
the formal seizure of a business operation, with or without the payment of
compensation
HNO
(human nature orientation)–negative societies
societies that assume people cannot be trusted to obey the rules
HNO
(human nature orientation)–positive societies societies that assume people can be
trusted to obey the rules
Host country
a country that contains an operational unit (marketing, sales, manufacturing, finance,
or R&D) of an international company
Loose cultures
societies with few rules, norms, or standards for correct behavior
Political mapping
the process of identifying all individuals involved in a regulatory decision—politicians,
bureaucrats, key members of pressure groups—and understanding their various
points of view
Political risk
the possibility that an unexpected and drastic change due to political forces will result
in adverse circumstances for business operations
Regulatory
change
moderate and relatively predictable change in laws and regulations
Sovereignty
supremacy of authority or rule free from external control
Takeover
a host–government initiated action that results in a loss of ownership or direct control
by a foreign company
Tight cultures
societies with many rules, norms, and standards for correct behavior
Chapter 5
Bottom of the
consumers in developing countries who earn less than $2 a day
pyramid (BOP)
Bribery
giving something of value to an individual in a position of trust to influence his or her
judgment or behavior
Competitive
screen
a requirement that firms bidding on government contracts in developing countries be
competitive in experience, reputation, and cultural sensitivity as well as in price
Cosmopolitans consumers who purchase global brands to enhance their self–image of being
sophisticated and modern
Cost–
performance
criterion
the expected performance of industrial products or capital equipment relative to the
costs to purchase and use such products or equipment
Eligibility
the initial requirement placed by governments on firms seeking to bid on government
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
screen
22
contracts in developing countries; firms must be judged to be serious in their intent and
large enough to handle the contracts
Expediting
payments
small bribes paid to civil servants to perform their duties in a timely manner
Global
account
management
the assignment of special account executives and service teams to handle the needs of
valuable but demanding global buyers
Gross national
product (GNP)
the total market value of all goods and services produced within the borders of a country
during a specific period
Influence
screen
a requirement that firms bidding on government contracts in developing countries
identify key decision makers and assure their proposals meet the needs of all parties
Informal
economy
the totality of economic activity of individuals and businesses that operate without
licenses, permits, or reporting procedures required by law
Just–like–us
segments
market segments in foreign countries that closely resemble marketers’ domestic buyers
Linkage
screen
a common requirement that international firms bidding on government contracts in
developing countries identify ways in which specific local businesses will participate in or
otherwise benefit by the proposed contracts
Market
segmentation
the aggregation of prospective buyers into groups (segments) that have common needs
and will respond similarly to a particular marketing strategy
Maslow’s
hierarchy of
needs
a theory stating that human needs are divided into four levels and that humans satisfy
lower–level needs before seeking to satisfy higher–level needs
Mobile
consumers
consumers who are aware of and purchase foreign products because of exposure to
foreign markets from overseas work, study, or travel
Multinational
global buyers
firms that search the world for products to be used throughout their global operations
National
global buyers
firms that search the world for products that are used in a single country or market
Per–capita
income (PCI)
a country’s average income per person for a specific period
Procedural
screen
a requirement that firms bidding on government contracts in developing countries follow
numerous bureaucratic procedures
Purchasing–
power parity
a theory that prices of internationally traded commodities should be the same in every
country and therefore that the true exchange rate is the ratio of these prices in any two
countries
Chapter 6
Business
groups
large business organizations consisting of firms in diverse industries interlinked by both
formal and informal ties
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
Consumer
animosity
23
political objection to purchasing products from a specific foreign country
Consumer
the belief that purchasing imported products results in job loss and consequently
ethnocentrism hardship for a buyer’s home country
Counterparry
a counterattack against a competitor in one country in response to a prior attack by that
competitor in another country
Country of
manufacture
the country in which a product is manufactured or assembled
Country of
origin
the country with which a firm is associated—typically its home country
Country of
parts
the country in which an input to a final product is produced
Cross–
country
subsidization
the use of profits from one country in which a business operates to subsidize competitive
actions in another country
Globally
coordinated
move
the employing of simultaneous actions across countries to gain competitive advantage
over global or local rivals
Horizontal
keiretsus
large and diverse industrial groups in Japan
Hybrid
a firm in which a government holds a partial, though usually significant, equity position
Market
liberalization
the encouragement of competition where monopolies or strict entry controls previously
existed
Privatization
the practice of selling state–owned enterprises or their assets to private firms or
individuals
Situational
animosity
consumer animosity as a response to a current economic or political event
Stable
animosity
consumer animosity arising from difficult historical relations between two countries
Targeting of
global
competitors
the process of identifying actual and potential global competitors, planning how to
compete against each of them, and implementing those plans
Chapter 7
Back
translation
a technique in which a questionnaire is translated from one language into a second
language, translated back from the second language into the first language, and then
compared with the original text
Benchmarking the act of identifying best practices in an industry in order to adopt those practices and
achieve greater efficiency
Consumer
carefully crafted observational studies designed to capture nuances in consumer
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
24
ethnographies
behavior
Courtesy bias
a phenomenon in which respondents fail to reply honestly but instead supply the answer
they believe an interviewer wishes to hear
Emic
approach
separate research studies are developed to capture the uniqueness of each cultural
context
Etic approach
concepts and measures of concepts developed in one cultural context are translated and
used in other cultural contexts
Parallel
translation
a technique in which two or more translators translate a questionnaire, compare their
translations, and resolve any differences between the translations
Primary data
data collected for a specific research purpose and obtained by direct observation or by
direct contact with sources of information
Proxy
a product the demand for which varies in relationship with the demand for another
product being investigated
Scalar
equivalence
the similarity among respondents in their interpretation of calibrations along a continuum
Secondary
data
data already in existence that was collected for some purpose other than the current
study
Chapter 8
Back
translation
a technique in which a questionnaire is translated from one language into a second
language, translated back from the second language into the first language, and then
compared with the original text
Benchmarking the act of identifying best practices in an industry in order to adopt those practices and
achieve greater efficiency
Consumer
ethnographies
carefully crafted observational studies designed to capture nuances in consumer
behavior
Courtesy bias
a phenomenon in which respondents fail to reply honestly but instead supply the answer
they believe an interviewer wishes to hear
Emic
approach
separate research studies are developed to capture the uniqueness of each cultural
context
Etic approach
concepts and measures of concepts developed in one cultural context are translated and
used in other cultural contexts
Parallel
translation
a technique in which two or more translators translate a questionnaire, compare their
translations, and resolve any differences between the translations
Primary data
data collected for a specific research purpose and obtained by direct observation or by
direct contact with sources of information
Proxy
a product the demand for which varies in relationship with the demand for another
product being investigated
Scalar
the similarity among respondents in their interpretation of calibrations along a continuum
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
25
equivalence
Secondary
data
data already in existence that was collected for some purpose other than the current
study
Born global
term referring to a firm that establishes marketing and other business operations
abroad upon formation of the firm or immediately thereafter
BRIC
Brazil, Russia, India, and China
BRICK
Brazil, Russia, India, China, and South Korea
Critical mass
the minimal effort and investment needed to compete effectively in a market
Economies of
scale
profitability gained through the phenomenon that as the size of a production run
increases, per–unit costs decrease
First–mover
advantage
a market advantage relating to brand awareness, sales, and profits that accrues to
the first significant competitor to enter a new market
Internationalization the expansion of a firm beyond its domestic market into foreign markets
Lead markets
countries or regions that possess major research and development sites for an
industry or are recognized for being trendsetters
Macroindicators
data useful in estimating the total market size of a country or region
Microindicators
data useful in estimating the consumption of a certain product in a country or region
Must–win markets
markets crucial to a firm’s global market leadership
Psychic distance
the perceived degree of similarity between markets
Psychic–distance
paradox
a phenomenon in which a market thought to be similar to another market turns out to
be dissimilar
Triad
the United States, Europe, and Japan
Chapter 9
Bundling
the act in which a firm combines all its operations in a certain country or region into a
single legal unit
Compounding a term referring to the last stages of manufacturing in the chemical and pharmaceutical
industries
Direct
exporting
exporting through an intermediary located in a foreign market
Entry strategy
configuration
the process by which a firm determines the best possible entry strategy for a country or
region
Export
consortium
a group of companies that agrees to share the logistical and promotional costs of
exporting to foreign markets
Indirect
exporting through an intermediary located in the exporter’s home country
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26
exporting
Master
franchises
franchises that include exclusive rights to market within a whole city or country
Parallel firm
a firm established by local partners or managers of a joint venture to illegally compete
with the joint venture by using the joint venture’s technology, market knowledge, and
brand
Royalties
payments by a licensee to a licensor in exchange for the right to produce and market the
licensor’s product or service within a certain region
Strategic
alliance
an alliance involving two or more firms in which each partner contributes a particular skill
or resource—usually complementary—to a venture
Unbundling
the act in which a firm divides its operations in a certain country or region into different
legal units
Chapter 10
Consortium
approach
an approach involving firms united in a working relationship without the formation of a
new legal entity
Contributor
a subsidiary responsible for adapting some products for smaller markets
Discretionary
adaptation
a product adaptation that is optional but possibly desirable for a certain market
Generic
management
system
standard
an international standard covering a particular set of corporate behaviors to which
companies can choose to comply and consequently become certified as to their
compliance
Global
product
a product for which a portion of the final design is standardized and a portion can be
adapted to individual markets
Implementer
a subsidiary the primary role of which is to implement a firm’s global strategy
Lead market
a national or regional market whose level of development exceeds that of other markets
and whose experience sets the pattern for other markets
Mandatory
adaptation
a product adaptation that a firm must make to sell a product in a certain country or region
Modularity
a process involving the development of standard components that can easily be
connected with other standard components to increase the variety of final products
Product life
cycle
the market stages a product experiences over time: introduction, growth, maturity,
decline, and withdrawal
Strategic
leader
the home base or major subsidiary of a multinational firm, responsible for developing
products used by the entire company
Chapter 11
Anti-globals
consumers who are skeptical of the quality of global brands and of the transnational
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
27
companies who own them
Back–stage
elements of
services
the planning and implementation aspects of services, invisible to the customer
Bottom–up
approach
an approach to global branding in which brand strategy emerges from shared
experiences and best practices among the firm’s subsidiaries
Brand
champion
a manager or group within a firm charged with the responsibility for building and
managing a global brand
Counterfeiting the illegal use of a registered trademark
Eurobrands
regional brands in Europe
Front–stage
elements of
services
the aspects of service encounters that are visible to the customer
Global
agnostics
consumers who judge global brands and local brands by the same criteria and are
neither impressed nor alienated by the fact that a brand is global
Global brand
strategy
a strategy in which the positioning, advertising, look, and personality of a brand remain
constant across markets
Global
citizens
consumers who associate global brands with quality and innovation and expect
transnational firms to behave responsibly regarding workers’ rights and the environment
Global
dreamers
consumers who equate global brands with quality and are attracted by the lifestyle they
portray
Global
strategy
a strategy that captures the quality improvements and cost savings of standardized
backstage activities but adapts key elements of the marketing mix, such as product
features, distribution, and promotion to local tastes
International
brand
a brand that follows a global strategy but does not maintain a strict standardized
marketing strategy and mix across all national markets
Lateral
partnerships
formal or informal agreements between NGOs to work toward a common goal and to
facilitate efficiency
Piracy
the counterfeit production of copyrighted material
Preemption
the legal hijacking or registration of a brand name when the brand is not yet registered
Top–down
approach
an approach to global branding in which a global team determines the global brand
strategy and country strategies are derived from this strategy
Trademarks
the names, words, and symbols that enable customers to distinguish among brands
Chapter 12
Cartel
a group of companies acting together to control the price of certain goods or
services
Cooperation
countertrade arrangements extending over years and usually involving capital
Global Marketing and Strategy Course Syllabus Nance Rosen, MBA
28
agreements/buybacks equipment in exchange for output of that equipment
Countertrade
a transaction in which goods are exchanged for other goods
Discretionary income
income remaining after the basic necessities of food, shelter, and clothing have
been acquired
Dumping
the practice of exporting a product at an “unfair” price and consequently
damaging competition in the export market
Exhaustion principle
a legal principle that establishes the conditions under which a trademark owner
relinquishes its right to control the resale of its product
Export price
escalation
the phenomenon in which the costs of export documentation, overseas
transportation, insurance, and tariffs raise the price of products abroad to a level
above that of the price in the domestic market
Fixed costs
costs that do not vary with changes in production levels
Forward price/forward
rate
the price agreed upon by two parties for one to deliver to the other a set amount
of currency at a fixed future date
Hard goods
countertraded merchandise that is easy to resell
Hedging
the act of contracting through financial intermediaries for the future exchange of
one currency for another at a set rate
International
exhaustion
an exhaustion principle that states that once a firm has sold a product anywhere
in the world, it cannot restrict its resale into a particular country
International transfer
price
the price paid by one unit of a firm to import a product or service supplied by
another unit of the same firm
Marginal profit
the change in total profit resulting from the sale of one additional unit of a product
Modified uniform
pricing
a pricing strategy in which a firm monitors price levels in different countries to
close large price differentials and discourage gray markets
National exhaustion
an exhaustion principle that states that once a firm has sold a trademarked
product in a specific country, it cannot restrict the further distribution of that
product in that country
Parallel imports/gray
market
imports that enter a market outside the official distribution channels established
by the trademark owner
Regional exhaustion
an exhaustion principle that states that once a firm has sold a trademarked
product anywhere in a region (such as the EU), it cannot restrict the resale of that
product within that region
Sin taxes
taxes assessed on products that are legal but discouraged by society
Soft goods
countertraded merchandise that is difficult to resell
Spot price/spot rate
the rate of exchange between two currencies for delivery, one for the other,
within one or two business days
Transaction risk
the risk that a change in exchange rate that will prove unfavorable to either the
seller or the buyer will occur between invoicing and settlement dates
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Uncovered position
a strategy in which a firm chooses not to take any action that would alleviate
transaction risk
Uniform pricing
strategy
a pricing strategy in which a firm charges the same price everywhere when that
price is translated into a base currency
Value–added tax
(VAT)
a tax that is levied at each stage in the production and distribution of a product or
service based on the value added by that stage; the tax is ultimately passed on to
the buyer
Variable costs
costs that vary with changes in production levels
Chapter 13
Channel
alignment
the coordination of various channel members to the end of providing a unified approach
to the marketing of a product or service
Channel
captain
the dominant channel participant; dictates terms of pricing, delivery, and sometimes
product design
Channel
length
the number of intermediaries directly involved in the physical or ownership path of a
product from the manufacturer to the buyer
Channel
maintenance
costs
the costs of managing and auditing channel operations
Density of
distribution
the number of sales outlets or distribution points utilized for a given geographic market
Exclusive
distribution
a distribution strategy in which a product is available through only one outlet in a relatively
large geographic area
Extensive
distribution
a distribution strategy that employs many sales outlets per market area
Global supply
chain
management
the collective managerial behavior and decisions essential to the development of a
functioning global supply chain
Initial channel
costs
the costs of locating or establishing a channel
Logistics
costs
the costs of transporting and storing products and processing those products through
customs
Magic
moments
a term designating the point at which modern retailing emerges within a country
Piggyback
arrangement
an arrangement in which one company agrees to distribute through its established
channels the products of another company
Selective
distribution
a distribution strategy that employs few sales outlets per market area
Smuggling
the illegal transport of products across national borders
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Chapter 14
Buzz
marketing
managed word of mouth in which a firm attempts both to promote a sale and to
encourage people to talk about the firm’s product or service
Consortium
a group of firms that participate in a project on a pre–agreed–on basis but act as one
company toward the buyer Turnkey project
Formal bid
a phase in the bidding process in which a potential supplier states the price it will charge
a client for a project and details the terms of the project
Global
account team
a team dedicated to servicing a multinational global buyer
International
selling
selling that crosses national boundaries and utilizes salespersons who travel to different
countries
Local selling
selling that targets a single country
Missionary
sales force
salespersons who promote a firm and its products or services but do not close a sale
Performance
bond
money supplied by a supplier and held in escrow to guarantee that a buyer will be
reimbursed if a project is not completed in accordance with agreed–upon specifications
Personal
selling
communication between a potential buyer and a salesperson to the end of understanding
buyer needs, matching those needs to the supplier’s products or services, and ultimately
achieving a sale
Prequalifying
phase
a phase in the bidding process in which prospective buyers ask for documentation from
interested suppliers to verify that bidders are trustworthy and capable of handling the
proposed project
Pull strategy
a promotional strategy directed at the final buyer or end user of a product or service
Push strategy
a promotional strategy directed at the distributors of a product
Search phase
a phase in the bidding process in which potential suppliers identify projects of interest to
them
Spam
unsolicited commercial bulk e–mail
Worthwhile
global
account
an account that meets minimum revenue levels that support the additional overhead
required by global account management
Chapter 15
Global theme
approach
the use of an advertising campaign in which a single advertising theme is utilized in all
markets but is varied slightly with each local execution
Chapter 16
Behavioral
standards
standards relating to actions taken within the firm
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Ethnocentric
orientation
a corporate worldview in which management is focused on the home market and
considers ideas from the home market to be superior to those from foreign subsidiaries
Geocentric
orientation
a corporate worldview in which management pursues a global marketing strategy and
decision making is shared by headquarters and subsidiaries
Global
mandate
a responsibility assigned to a manager or team within a firm to carry out a task on a
global scale
Global team
a task force established to address at the global level a particular issue facing a firm
Performance
standards
standards relating to market outcomes
Polycentric
orientation
a corporate worldview in which each market is considered unique and local subsidiaries
are given power to develop and implement independent strategies
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