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GLOBAL MARKETING AND CONSUMER CULTURES
University of Michigan-Dearborn
MKT 457 – Global Marketing and Consumer Cultures
Fall 2014
2:00-3:15pm, Tuesday and Thursday  FCS 163
Professor: Elif Izberk-Bilgin
Office: 151 FCS
Office Hours: 12:45 – 1:45 TR & by appointment.
Phone: (313) 593-3920
Fax Number: (313) 271-9836
E-Mail: ebilgin@umd.umich.edu
COURSE DESCRIPTION:
Prerequisite: MKT 352, ECON 201, ECON 202
This course will provide you with an understanding of fundamental issues and approaches
in global marketing. By the end of the semester, you should develop the ability to analyze
global marketing situations and develop effective marketing plans and solutions. We will be
playing a simulation and discussing global marketing issues within the context of historical,
political, economic, and social systems in other cultures. Such an emphasis should help
you develop an appreciation of other cultures and culture’s impact on marketing and
management.
COURSE OBJECTIVES:
Specific learning objectives of this course include:
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Analyzing and selecting attractive markets for going global/international;
Understanding the nuances related to global marketing research;
Understanding different modes of entry to foreign markets
Learning to adjust the marketing mix to according to cultural differences
Key BBA program learning objectives relevant to MKT-457 are to:
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o
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Explain different business opportunities and challenges in a global environment.
Analyze business situations and recommend managerial responses
Communicate effectively in writing.
COURSE INSTRUCTIONAL METHODS:
The course sessions will combine lectures, discussions, cases, exercises, and other
activities. You will be encouraged to contribute to the course sessions with your anecdotes,
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experiences, comments, questions, etc., and to discuss the readings which supplement the
course sessions (See participation below).
REQUIRED COURSE MATERIALS:
Course pack for MKT 457, available at the bookstore.
Country Manager: International Marketing Simulation by Lawrence Feick, Martin Roth,
Michael Deighan, and Stuart James, Interpretive Software (to be purchased online at
www.interpretive.com).
Slides will be posted on Canvas (under the LEARNING MODULES tab) before each class
so you can print them and bring a copy to class if you wish. Make sure you visit the website
regularly at:
https://umdearborn.instructure.com/courses/200766
I may distribute additional required readings throughout the semester; you will be
responsible from this additional material in exams.
STUDENT EVALUATION:
Class Participation
Exams (2)
Team Project
(CountryManager simulation):
CountryManager Quiz (online)
Country Attractiveness Report
Period decision summaries
Regional Plan
Performance over periods
Brief
10%
50%
Total:
100%
3%
10%
2%
15%
5%
5%
GRADING SCALE:
100-98 97-93 92-90 89-88 87-83 82-80 79-78 77-73 72-70 69-68 67-63 62-60
A+
A
AB+
B
BC+
C
CD+
D
D-
COURSE POLICIES:
Class Participation: Participation in class discussions is the meat of the course since each
individual brings with him/her a unique cultural perspective and a set of valuable
experiences. You should come to class having read the assigned material and the slides to
make a valuable contribution.
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Discussion is a chance for you to share aspects of the course materials that are intriguing,
surprising, and disturbing. Such reflection is part of learning. Furthermore, I use discussion
during class to challenge you to think about the material and develop and defend opinions
about it. Please keep in mind that you are welcomed to disagree respectfully with the book,
me, or your classmates about topics. There is no make-up for discussion that may have
been lost by missing class.
Classroom Behavior Policy: Laptops allowed only during lab sessions. No cell phones
or pagers. I’m serious.
Late Assignment and Make-Up Exam Policy: Late submissions will be accepted but with
penalty: each school day (Monday through Friday) late will result in a full letter grade
penalty for that assignment. You are responsible for notifying me by e-mail or phone of late
submission and the exact date of submission. Papers arriving after 5:00pm will be
considered as submitted the following day. If late papers are not literally handed to Prof.
Izberk-Bilgin, they can be given to the department secretary with her signature and
time/date noted on receipt. E-mail submissions are accepted only with the professor’s prior
consent so do not e-mail assignments unless you are given the permission to do so.
Make-up exams are not offered. If you have to miss an exam for any reason you will have
the following options: a) receive zero (0) for the exam missed, or b) take a comprehensive
final exam including all the chapters we have covered throughout the semester.
E-mail Policy: You must have a University of Michigan e-mail account. Class slides,
supplementary readings, and various communications will be made via broadcast email as
well as Blackboard. Email sent to your UM email account will be considered official class
material.
Written assignments: All papers must be typed using 12pt font, double-space with 1”
margins, and organized with the use of headings. All papers should be written clearly,
concisely, logically, and in keeping with rules of standard English. If you need assistance,
the Campus Writing Center, located in the FCN 138, provides free writing support. Papers
with excessive writing problems will be subject to re-write until they are acceptable.
EXAMS:
Tests will cover the course pack readings, lectures, and articles given in class. The exams
are not cumulative and will include True/False, Multiple Choice, and/or short essay
questions.
TEAM PROJECT (COUNTRYMANAGER SIMULATION):
Students will form groups of four. Each student group will act as a marketing team in Allstar
Brands, a U.S.-based consumer products company, for a toothpaste brand. The team will
make decisions for entering and managing the brand business effectively in Latin America,
focusing on six possible countries (Argentina, Brazil, Chile, Mexico, Peru, and Venezuela).
Teams should thoroughly read the manual and instructions for operating the
software.
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Each student must register and pay for a copy of the simulation manual and software
through the website (www.interpretive.com/) no later than September 16. The cost is $40,
and allows a student to access the simulation and a pdf file of the student manual.
Student teams will input decisions on-line on the dates specified in the syllabus and retrieve
outcomes of decisions on-line as well. You have until midnight on the due date to submit
your decisions.
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Decisions for each period should be entered on-line by one team member; it is
important to double check the input before finalizing and advancing the program, so
there is no inadvertent error.
You have two chances to replay: once within the first three periods (Period 1-3), and
once during Periods 4-7.
Print out every decision and summary of results of each period for your records as a
hardcopy record prior to advancing the program.
Each team plays directly against the computer program (the competitors are directed by the
computer and do not represent other student teams). Since there are multiple periods of
play, there is opportunity to learn over time. Your Regional Plan is due after the first
three periods; be advised that your plan will guide your play in the next four years!
Grading of the simulation will be based on the overall quality of decision-making, learning
and corrective action over time, and the team’s performance by the end of the game.
To add a bit of fun and competition, 1st, 2nd, and 3rd place winning teams will be selected
based on key market and financial measures achieved by the end of the game.
Deliverables of the Team Project (CountryManager Simulation) are:
1. Country Attractiveness Report:
This report is intended to have you analyze the information about the possible
markets in the L.A. region (i.e., economic, social, political, and cultural environment;
consumer trends; distribution channels; the competitors in that market) in order to
assess which country would be an attractive market that your company might be
interested in entering. Write this report as if you’re going to present it to your CEO –
in a succinct manner yet describing a solid strategy with specifics (e.g., provide
some metrics). In other words, upon reading your report, the CEO should be able to
make a decision whether your country is an attractive market or not for the
company’s products. Make sure you consider the following as it relates to your
company’s products:
a. Background (Country in-depth)
b. Environment (Industry news, Economic Outlook, Distribution)
c. Consumers (Shopping Habits, Decision Criteria, Awareness, Brands
purchased) – by clicking on X-section, you can see the consumer
preferences for a specific segment.
d. Competition (existing brand formulations on the market, market share, retail
sales, as well as competitors’ pricing, advertising, promotion, and distribution
coverage).
To complete this report, you need to do the following:
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1) Working with your group, you will read the CountryManager case and
analyze all the information about each country provided in the “Latin America
Country Background Supplement” on the simulation website (under
resources tab, under manuals). You are not to consult any outside resources
but to focus solely on the specific country information provided in this
supplement.
2) You will establish your own criteria of assessing each country’s
attractiveness and enter it on the Country Attractiveness excel sheet
provided on the simulation website (under Assignments tab).
3) You will rate each country based on the criteria you’ve established using the
information in the CountryManager case and “Latin America Country
Background Supplement”. Once you complete the rating, you will identify the
most attractive market in the L.A. region that Allstar should enter.
4) You will write your report (3-5 double spaced) to include a discussion of the
pros and cons of entering each country (again, support your claims with
specific metrics) and your recommendation for market entry (recommend
only one country market). Make sure you provide a compelling rationale for
your recommendation.
The report is due on September 18 and should include the Country Attractiveness
spreadsheet.
A note about writing good reports: The most informative reports are those in which
the students are able to synthesize the information into useful insight. The least
informative (least interesting, and lowest scoring) reports are those in which the
students reiterate or rephrase the information provided in the simulation.
2. Period Decision Summaries: As you play the simulation (not after the fact),
you are to summarize your decision making process in a short write-up (2 pages
max.) for each period. I’m more interested in your rationale than the particular
decisions you make (e.g., how much you’re going to charge for the product, how
many sales people you’ll employ). In your summary, you are to explain your
reasoning for each set of decisions (as an example, explain why you decided to
increase/decrease sales force and why you hired sales people for traditional
channels but not wholesalers). You may include your printed decision entry screens
or copy & paste your decisions as appendix.
3. Regional plan: Before you write the plan, you will have played the simulation for 3
periods (Periods 1, 2, and 3), or years, and have made initial decisions for the brand
(short-term strategy). The purpose of the market plan is to have you think about the
future of your brand in the L.A. market and apply the experience/learning you have
gained in previous years. Your goal is to enter at least one more country –in addition
to the first market in L.A.- beginning with Period 4. You may enter more than one
country in Period 4 or sequence your future entries over Period 4-7. Your plan will
detail all your strategic decisions (e.g., market entry mode, STP, and 4Ps) for the
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next four years (long-term strategy) for your current and future markets. You will
implement those long-term strategies in Periods 4-7. In other words, Period 47decisions will be bound by your regional plan. While you’re given one chance for
replay and could revise your strategy accordingly, you’re expected to follow the
regional plan as closely as possible -so think carefully! More specifically, the plan
should include the following (important: must provide analysis and clearly stated
rationale for all choices in the marketing plan):
A. Introduction
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Company’s performance in the current L.A. market: Briefly describe
some of the key decisions already made in this market and how they
turned out.
B. Future goals for Latin America
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Market Entry
 Which countries to enter, when, and what sequence (you need to
enter at least one more country in Period 4. Also consider
countries you may enter after Period 4).
 Entry mode to be used in each country (may not be all the same)
 Sourcing – from which plant to supply the market
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Segmentation, Target, Positioning (STP should be consistent with and
driven by overall competitive strategy)
 Segmentation options, target group selected, size, and sales
potential in each country
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Marketing Mix (4 P’s should be integrated among themselves and
consistent w/ STP)
 Product (which one(s), what needs products meet, what their
advantages would be over local and global competitors’
products/services, etc.)
 Promotion (advertising, other promotional efforts, and budget
allocations).
 Pricing (approximate unit prices considering inflation and other
issues)
 Place or Distribution (what channels to be used, what channels
available, expected ease or difficulty of channel access, direct
distribution or using partners or agents, salesforce management,
etc.)
C. Expected Results
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If the plan were successfully implemented, detail the performance
expectations of revenues, expense, market share, and profit
projections for Periods 4-7.
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The above is not exhaustive of what you can include in a marketing analysis and
plan. The goal is to write a plan that is realistic (since no company has infinite funds
and expertise), logical, coherent, integrated (part x makes sense with part y), and
accounts for the complexity of successfully introducing products/services abroad.
Note the marketing plan should present an integrated, long-term strategy for the
region as well as specific strategy for each country you’ve chosen to enter; the latter
should be collectively synergistic to accomplish the former.
Some constraints apply to the simulation:
 Within the first three years, your team is allowed to enter and operate in
only one market. Beginning with the fourth year, your team can enter as
many additional countries each year as you like. Your team can also choose
to withdraw from countries.
 You have to market at least four products (SKUs). Otherwise, the software
won’t calculate your brand equity index and other performance metrics.
 Products sold in Period 1 will be sourced from existing U.S. factories. You
can elect to build or expand a Latin American factory at any time, but its
capacity will not be available until the following year. In other words, there is
a period/year lag in building production capacity in Latin America.
 No more than one new production facility can be built in Latin America, so
carefully consider this decision in view of a larger strategic plan. An existing
plant is in the U.S. and will automatically supply your markets in Latin
America when local production (Latin American) is non-existent or
insufficient.
Warning: Print out every decision and summary of results of each period for
your records as a hardcopy record prior to advancing the program.
This paper is 10 double-spaced pages long (excluding appendices) and is due
November 6.
4. Brief: Each group should submit a brief report to the CEO of the company showing
what marketing strategy the brand team developed and implemented and the results
of that strategy. The report should be composed of the following parts:
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Briefly discuss your short-term and long-term strategy with results. Then
compare Period 4-7 results with the projections of the marketing plan (you must
present your team’s final performance results, e.g. income statement and key
market measures).
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Discuss the most important decisions made over 7 years, both in planning and
during actual market operations. Identify which decisions were most and least
successful and why. Elaborate on key lessons learned about the market and
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complexities of international marketing (especially any lessons learned by
replaying).
Brief should be 3-5 pages in length, excluding the appendices.
A NOTE ABOUT TEAM WORK AND PEER EVALUATION:
In this course 40% of your grade rests on team work. Therefore, each member is expected
to participate fully. Group problems should be brought promptly to the attention of the
instructor for resolution. To ensure equal contribution, group members will anonymously
evaluate one another. The evaluations will be used by the instructor to determine individual
grades for the team project. If those evaluations indicate equal contribution, every member
of a team will receive the group grade; if those evaluations indicate unequal contribution,
then certain members will receive a lower grade than the group grade. These individual
grades are not subject to negotiation with the instructor as they are contingent on
anonymous evaluations by fellow team members.
UMD STATEMENT OF ACADEMIC INTEGRITY:
The University of Michigan - Dearborn values academic honesty and integrity. Each student
has a responsibility to understand, accept, and comply with the university's standards of
academic conduct as set forth by the Code of Academic Conduct, as well as policies
established by the schools and colleges. Cheating, collusion, misconduct, fabrication, and
plagiarism are considered serious offenses. Violations will not be tolerated and may result
in penalties up to and including expulsion from the University. Please read the COB
statement on academic integrity:
http://umdearborn.edu/fileadmin/template/som/files/grad/docs/Statement_on_Academic_Int
egrity_Publication_07-09.pdf
ACCOMODATIONS FOR STUDENTS WITH DISABILITIES:
The University will make reasonable accommodations for persons with documented
disabilities. Students need to register with Disability Resource Services every semester
they are taking classes. DRS is located in Counseling and Support Services, 2157
University Center (593-5430). To be assured of having services when they are needed,
students should register no later than three weeks after the first day of classes.
INCLEMENT WEATHER INFORMATION:
Information on whether the campus is open or closed due to inclement weather or for any
other emergency situation is always available by calling the Campus Closure Information
Line, (313) 436-9157.
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WEEK BY WEEK COURSE SCHEDULE (subject to change)
WEEK 1 – September 4, 2014
Subject: Course Overview and Introduction to CountryManager simulation
Reading assignments:
 Read the syllabus very carefully with particular attention to exam and assignment
due dates
 Read Section 1of student manual, Appendix 1 (country attractiveness analysis), and
Latin America Country Background (interpretive.com/resources/manuals).
Homework: Play the simulation on your own. Find yourself a team.
Week 2 – September 9-11, 2014
Subject: Introduction to Global Marketing
Learning Objectives:
1. Understand how global marketing is different than domestic marketing
2. Know the complex decisions (the why, how, and where) involved in going global
3. Identify the differences between standardization and global localization strategies
4. Know the four management orientations and how they might impact the company’s
mode of operation in foreign markets.
Reading Assignments (prepare for discussion-the first two):
 Marketing Across Borders: It’s a big, big world.
 McDonald’s Case
 Sections 2 and 3, and p.83 and 87 of section 4 in the student manual
Homework: Play the simulation on your own. Complete the CM Quiz by September 18.
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Week 3 – September 16-18, 2014
Subject: Global Economic Environment Regional Markets & Trade Agreements
Learning Objectives:
1. Understand the important economic factors in assessing market attractiveness
2. Identify the growing importance of marketing to the bottom-of-the-pyramid
3. Understand how foreign exchange rate fluctuations impact trade
4. Know concepts such as pass-through and purchasing power parity
5. Distinguish between different forms of economic cooperation and social integration
6. Familiarize with major regional trade agreements
Reading Assignments (prepare for discussion):
 Selling to the Poor
 P. 92-95 of student manual (foreign exchange rates and pricing)
 Unilever in India: Hindustan Lever’s Project Shakti – Marketing FMCG to the Rural
Consumer
Team Assignment: Country Attractiveness Spreadsheet and Report are due on
September 18.
Week 4 – September 23-25, 2014
Subject: Socio-Cultural Environment
Learning Objectives:
 Understand the role of culture on marketing mix elements
 Distinguish between two cultural frameworks – Hofstede vs. Hall
 Identify the managerial implications of these frameworks
Reading Assignment (prepare the first two for discussion):
 Tailoring Your Strategy to fit the Culture
 Barbie Case
 Note on Low-Tech Math (read this so you are prepared to price your products).
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Week 5 – September 30 – October 2, 2014
Subject: Global Political-Legal Environment
Learning Objectives:
1. Understand the key factors that global marketers use in assessing favorable legal
and political environments
2. Explore how global marketers manage political and legal situations
Reading Assignment:
 P. 88-91 of student manual
Lab session: Work in teams on Period 1 decisions; decisions due on October 5 midnight.
Week 6 – October 7-9, 2014
Subject: Global Market Entry Strategies
Learning Objectives:
1. Know different modes of market entry
2. Understand how strategic alliances work
3. Familiarize with entry timing decisions
4. Understand what is involved in market exit decisions
Reading Assignment (prepare for discussion):
 Herborist case
Lab Session: work in teams on Period 2 decisions; decisions due on October 12 midnight.
Week 7 – October 14-16, 2014 - EXAM 1
Exam 1 on October 14: Review all materials we covered until now.
Lab Session: work in teams on Period 3 decisions; decisions due on October 19 midnight.
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Week 8 – October 21-23, 2014
Subject: Global Market Research
Learning Objectives:
1. Understand unique issues related to carrying out market research in multiple
markets
2. Know the importance of Internet for global market research
Reading Assignment:
 Cherries with charm – prepare for discussion
 International Marketing Research
 Whirlpool Case
Lab Session: Work on your Regional Plan, due on November 6.
Week 9 – October 28-30, 2014
Subject: Global Segmentation, Targeting, Positioning
Learning Objectives:
1. Understand international segmentation strategies
2. Identify global segments
3. Understand criteria for global target market selection
4. Distinguish among global, foreign, and local positioning strategies
Lab Session: Work on your Regional Plan, due on November 6.
Week 10 – November 4-6, 2014
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Subject: Branding Decisions & Global New Product Development
Learning Objectives:
1. Understand how to manage global brands in hostile and turbulent environments
2. Familiarize with how companies develop for and introduce new products in multiple
country markets
3. Know how the diffusion of innovation curve works across different country markets
Reading Assignments (prepare for discussion):
 How Global Brands Compete
 How to manage a Global New Product Development Process
 Colgate Max case
Lab Session: work on Period 4 decisions; decisions due November 9 midnight.
Assignment: Regional plan due on November 6.
Week 11 – November 11-13, 2014
Subject: Pricing Decisions
Learning Objectives:
1. Familiarize with the factors that impact global pricing decisions
2. Understand the role of inflation, currency fluctuations, and governments on pricing
3. Know specific global pricing issues such as gray markets, dumping, and transfer
pricing
Lab session: work in teams on Period 5 decisions; decisions due November 16 midnight.
Week 12 – November 18-20, 2014
Subject: Global Retailing
Learning Objectives:
1. Understand the trends in global retailing
2. Know the differences in retailing culture across markets
Reading Assignment (prepare for discussion):
 Louis Vuitton in Japan case
Lab session: work in teams on Period 6 decisions; decisions due November 23 midnight.
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Week 13 – November 25-27, 2014
No class on Thursday, November 27.
Week 14 – December 2-4, 2014
Subject: Global Communications
Learning Objectives:
1. Understand barriers to global marketing communications
2. Know global media trends
Lab session: work in teams on Period 7 decisions; decisions due December 7 midnight.
Week 15 – December 9 – EXAM 2
Exam 2: Review all materials covered since Exam 1.
Assignment due: Brief is due on December 13 midnight.