TGM 557 Global Marketing & Data Analytics Man Xie & Uyen Tran Introduction to Global Marketing Module 1 Jan 08 Global vs. “Regular” Marketing • What is “regular” marketing based on your understanding? • VALUES!! • Functional, economic, social, experiential • Value proposition • Segmentation, Targeting, Positioning • The Marketing Mix (4Ps) • • • • Value Creation – product Value Capture – price Value Delivery – place Value Communication – promotion Value Proposition • Global Marketing • The scope of activities is outside of the home-country market • Creating values in a changing and competitive global business environment Why Global Marketing? % Foreign Sales for US Companies? The Largest US MNCs: Foreign Sales The US's top 100 non-financial MNEs, ranked by foreign assets, 2022 Source: United Nations Conference on Trade and Development The Largest US MNCs: Foreign Sales The US's top 100 non-financial MNEs, ranked by foreign assets, 2022 *Close to or more than two-thirds *More than half Source: United Nations Conference on Trade and Development Globalization Opportunities Shift in Demand Characteristics • Companies with only domestic markets have found it increasingly difficult to sustain customary rates of growth. • The worldwide movement toward free markets, deregulation, and privatization is opening up formerly closed markets and creating tremendous opportunities (e.g., new markets in Latin America, Asia, Eastern Europe, and Africa) Middle Class: Size and Global Share 2015 (3 billion) 1.2% 5.6% 153% 48% 17.5% 86% 2030 (5.4 billion expected) Emerging Markets with Great Potential Total GDP (2012) MINT Real GDP Growth (2012-2020) Data Source: IMF The World’s Top Global Companies (by revenue) U.S. surpassed by China Data Source: Fortune 500 But Challenging and Risky!! Globalization Challenges • Marketing practices vary from country to country because countries differ in • Economic Environment • Trade Environment • Social Environment • Cultural Environment • Legal Environment • Regulatory Environment • Significantly Higher Uncertainty • Emerging Markets Change Rapidly • Competition is global Many Failed • Walmart in Brazil • In June 2018, Walmart Sold 80% of its stake in Brazil, a country where it once had 558 storefronts at its peak. • Target in Canada • Target failed its first attempt at international expansion • Closed its 133 Canadian stores in 2015 (less than two years after opening) Many Failed • Best Buy in China • After studying China's growing middle class, Best Buy entered the Chinese market in 2006 • Closed all branded stores in China in 2011 • Tesco in the US • UK’s biggest supermarket chain entered the US market in 2006 • Tesco pulled out of America in 2013 at a cost of $2 billion after years of losses Why Failed? • Lack of understanding of the purchasing characteristics of consumers • Underestimation of the local competition • Supply chain issues • Poor strategic decisions regarding facility location and the rate of expansion •… Lessons learned from international expansion failures and success. The Domestic Marketing Task The International Marketing Task The Global Marketing Task This Course Course Objective and Value • Help you: 1. Gain basic understanding of global marketing concepts, opportunities, key issues, and strategies. 2. Develop cross-cultural sensitivities and skills that would enable you to identify, analyze, and solve marketing problems in a global economy. Value to You: Prepare you for a successful career in today’s increasingly global business world. Learning Goals 1. Critical Thinking 2. Communication 3. Discipline Specific Knowledge in Marketing “Learning” the Framework “Applying” the Framework “Thinking Skills” Main Topics 1. Global Marketing Environment • Whether to enter the global market? • Where to go? 2. Global Market Entry Strategy • How ? 3. Global Marketing Strategies • What? • STP (segmentation, targeting, positioning) • Marketing Mix (the 4Ps) Global Marketing Decision-making Process Course Materials • Harvard course pack (required) • • • Purchase from https://hbsp.harvard.edu/import/1115927 Cases Reading Articles • Textbook (optional, recommended) “Global Marketing”, 10th Edition, Mark C. Green and Warren J. Keegan, Pearson • Lecture notes: available on Canvas before each class • Additional readings on Canvas: • • ASU Library Resource Organizer Posted under each module Check Canvas !! Course Communications • All via emails • Direct email or Canvas Inbox • Only use your ASU email • Include your section time (3 pm or 4:30 pm) • Always copy TA in the email • TA • Yen Lin Liao: yenlin.liao@tbird.asu.edu • Office hours • Monday 11:00 am – 12:00 pm • Location: TGHB 419A • Other time: schedule an appointment by email Evaluation of Your Work • Individual • Class participation (12 points) • 2 Quizzes (2 X 8 points) • Final Exam (34 points) • Peer evaluation (8 points) • Group • 2 case analysis reports (2 X 10 points) • HBR article presentation (10 points) • Total: 100 points (50% of the course grade) Form your own group: • 10 groups • Max 6 members • Due 1/12 Friday • Go to “People-Group” Class Participation • Attendance is required!! • Come to class in person • Come on time • Don’t leave early • Excusable absence • Request via email prior to class • A proof document is required • Participation in class • Preparation • Engagement • Contribution • Respect for others’ views • Quality counts! • Online discussions count! Quizzes & Final Exam (in class) • Two Quizzes • Closed book • 8 multiple choice questions • Cover materials up to the date • Final Exam • In-class part (closed book) + take-home part (open book) • Multiple choice, short answer, and short essay questions • Cover all materials • Focus on applications • Bring your laptop on the quiz/exam dates Case Analysis • You will be asked to analyze two cases and submit two case reports. Case 1: “The Espresso Lane to Global Markets” Case 2: “Atlantic Computer: A Bundle of Pricing Options” • Read the cases carefully • Discuss with your group • Each group will submit ONE report for each case • Questions will be distributed a week before the due date • Address each question directly and separately • Focus on the quality of analysis rather than the accuracy of your conclusion • Give both the pros and cons of each alternative • At most 3 pages (single-spaced 12-point font) • Tables and figures in the appendix (not count to page limit) HBR Article Presentation • Each group will be assigned one HBR article to present in the class from Module 3 to Module 7 • Article summary + leading discussion (15 min total) • The summary should provide sufficient information so that readers can learn the main ideas of the article and the supporting evidence by reading your slides. • In addition, the summary should have an introduction page that states the issues of the article; a conclusion page that summaries the main conclusions, and an insight/comments page that offers some of your own insights/comments on the topic. • Raise one question that interests you the most after reading the article and lead a short discussion with the class. HBR Article Presentation HBR Article Title Date of Presentation “Cracking Frontier Markets” 1/22 (Mon) “Understanding the Arab Consumer” 1/24 (Wed) “Distance Still Matters: The Hard Reality of Global Expansion” 1/29 (Mon) “Right Up the Middle: How Israeli Firms Go Global” 1/31 (Wed) “Mastering the Make-in-India Challenge” 2/5 (Mon) “Diaspora Marketing” 2/7 (Wed) “Pricing to Create Shared Value” 2/12 (Mon) “Unlocking the Wealth in Rural Markets” 2/14 (Wed) “What Western Marketers Can Learn from China” 2/19 (Mon) “Continuing Power of Mass Advertising” 2/22 (Wed) • The article assignment will be announced after the group formation is due. • Every student needs to read the article and prepare for class discussion. Peer Evaluation • Group assignment grading • All group members receive the same grade • At the end of the course, you will complete a peer evaluation form to grade your group members’ contributions (including yours) to the group activities and assignments. • Evaluate your peers fairly and candidly • Determine a portion of your final grade (8 points) Important Dates!! Due Date Deliverable (Submit on Canvas) Student Information Card 1/10 (Wed) Student information card Group Formation 1/12 (Fri) Quiz 1 1/22 (Mon) Case 1 (Group) 1/31 (Wed) Quiz 2 2/7 (Wed) Case 2 (Group) 2/14 (Mon) Case report HBR Article Presentation (Group) Date of your group presentation Presentation PPT Final Exam 2/26 (Mon) Case report Your Responsibilities • Well-prepared for classes • Come to class in person and on time • Mute your cell phone before class begins • Actively involved in the class discussion • On-time completion and submission of assignments • “Ownership” and responsibility for the success of the course My Responsibilities • High commitment to teaching • Well-prepared for classes • Be concerned about students’ needs • Be available to help • Fair treatment of every student • Provide thorough and prompt feedback to students’ learning progress Q&A To do … q Submit student information card q Find your group ASAP q Get your course packet ready q Bring your name tag for the next class q Reading for next class (check Canvas) Next… Introduction to Global Marketing (cont.)
