Global Marketing 8th Edition by Svend Hollensen 9781292251806 1292251808

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ISBN 10:1292251808
ISBN 13:9781292251806
Author:Svend Hollensen
Learn and develop skills involving strategic global marketing decision-making   Global Marketing, 8th Edition, by Hollensen continues to be the most up-to-date and comprehensive text of its kind, with cutting-edge case studies and a focus on the impact of new technologies and perspectives on international marketing. For nearly twenty years this title has been the definitive, truly international guide to marketing. During that time, borders have become ever more transient and this book more central to the work of marketers all around the world.   Key Features include: A clear part structure, organised around the five main decisions that marketing people in companies face in connection to the global marketing process Numerous pedagogical features such as Exhibits, Key Terms and Questions for Discussion to help you comprehend theory and apply it to the real world End of part and end of chapter case studies to help you understand how the theory relates to real world application New to this edition: The 8th Edition is concentrated around three major themes: ‘glocalization’, ‘internet of everything’ and ‘social media marketing’ Fully updated to cover the latest technologies, trends and practices in global marketing including AI, the shared economy, subscription-based pricing and omni-channel strategies Case studies are updated throughout the book including new chapter cases on Bumble, Jissbon and Waymo This book is ideal for undergraduate and postgraduate students studying international marketing, and for any practitioners who wish to take their global marketing strategies to the next level.   Svend Hollensen is Associate Professor of International Marketing at the University of Southern Denmark and has worked as a marketing consultant for several international companies and organizations. As well as this book, he is the author of other Pearson texts, including Marketing Management and Essentials of Global Marketing.   Pearson, the world’s learning company.

Global Marketing 8th Table of contents:

Part I

The decision whether to internationalize

1 Global marketing in the firm

Learning objectives

1.1 Introduction to globalization

1.2 The process of developing the global marketing plan

1.3 Comparison of the global marketing and management style of SMEs and LSEs

Exhibit 1.1 LEGO’s strategic drift

Exhibit 1.2 Economies of scale with Nintendo Game Boy

1.4 Should the company internationalize at all?

1.5 Development of the ‘global marketing’ concept

Exhibit 1.3 Helly Hansen uses ‘localization’ through geo-targeting technology

Exhibit 1.4 Persil Black and Persil = (same product, but different packaging and market communication)

1.6 Forces for global integration and market responsiveness

Exhibit 1.5 McDonald’s is moving towards a higher degree of market responsiveness

1.7 The value chain as a framework for identifying international competitive advantage

1.8 Value shop and the ‘service value chain’

1.9 Global experiential marketing

Exhibit 1.6 Case Construction Equipment is using experiential marketing

Exhibit 1.7 IKEA’s use of AR

1.10 Information business, ‘Big Data’ and the virtual value chain

1.11 Artificial Intelligence (AI) and its influence on global marketing

1.12 Summary

Case studies

1.1 Green Toys, Inc.: a manufacturer of eco-friendly toys goes international

1.2 Hunter Boot Ltd: the iconic British brand is moving into exclusive fashion

1.3 Nivea

1.4 Uber

Questions for discussion

References

2 Initiation of internationalization

Learning objectives

2.1 Introduction

2.2 Internationalization motives

Exhibit 2.1 Jägermeister: the famous herbal liqueur is going global as a result of ‘managerial urge’ in the family-owned company

Exhibit 2.2 Global marketing and economies of scale in Japanese firms

Exhibit 2.3 Internationalization of Haier – proactive and reactive motives

2.3 Triggers of export initiation (change agents)

2.4 Internationalization barriers/risks

Exhibit 2.4 De-internationalization at British Telecommunications (BT)

2.5 Summary

Case studies

2.1 LifeStraw: Vestergaard-Frandsen transforms dirty water into clean drinking water

2.2 Elvis Presley Enterprises Inc. (EPE): internationalization of a cult icon

2.3 TOMS Shoes

Questions for discussion

References

3 Internationalization theories

Learning objectives

3.1 Introduction

3.2 The Uppsala internationalization model

3.3 The transaction cost analysis (TCA) model

3.4 The network model

3.5 Born globals

Exhibit 3.1 K-pop – a ‘born global’ phenomenon has worldwide success

3.6 Summary

Case studies

3.1 Bumble: the ’Feminist Tinder’ is expanding fast

3.2 BYD electrical cars: the Chinese electric car manufacturer is considering sales worldwide

3.3 Reebok

Questions for discussion

References

4 Development of the firm’s international competitiveness

Learning objectives

4.1 Introduction

4.2 Analysis of national competitiveness (the Porter diamond)

4.3 Competition analysis in an industry

4.4 Value chain analysis

Exhibit 4.1 Hilti is selling the ‘use’ – not the product

4.5 The sharing economy

4.6 The sustainable global value chain

4.7 Corporate social responsibility (CSR)

Exhibit 4.2 Chiquita – integrating CSR in the resource base

4.8 The value net

Exhibit 4.3 Value net – cooperation/competition between competitors within each airline alliance. The three alliances are competing against each other

4.9 Blue ocean strategy and value innovation

4.10 Summary

Case studies

4.1 William Demant hearing aids: different threats appear on the horizon

4.2 DJI Technology Co. Ltd: a Chinese ‘born global’ is dominating the world market for drones with its Phantom and Mavic drones

4.3 Nike

Questions for discussion

References

Part I Case studies

I.1 Electrolux: a white goods manufacturer is considering growth opportunities worldwide

I.2 Nintendo Switch

I.3 Cereal Partners Worldwide (CPW): the no. 2 world player is challenging the no. 1, Kellogg

Part II

Deciding which markets to enter

5 Global marketing research

Learning objectives

5.1 Introduction

5.2 The changing role of the international researcher

5.3 Linking global marketing research to the decision-making process

5.4 Secondary research

5.5 Primary research

5.6 Other types of marketing research

5.7 Marketing research based on Web 3.0

Exhibit 5.1 Amazon.com – sustaining a competitive advantage through market research and analytics

5.8 Setting up an international marketing information system (MIS)

5.9 Summary

Case studies

5.1 Teepack Spezialmaschinen GmbH: organizing a global survey of customer satisfaction

5.2 LEGO Friends: one of the world’s largest toy manufacturers moves into the girls’ domain

5.3 e-Bikes in China

5.4 Hondajets: Honda enters the small-sized business jet market

Questions for discussion

References

6 The political and economic environment

Learning objectives

6.1 Introduction

6.2 The political/legal environment

Exhibit 6.1 Huawei Technologies Corporation: the role of home government in the internationalization process – good and bad

Exhibit 6.2 Google is experiencing political risk in China

6.3 The economic environment

6.4 The European Economic and Monetary Union and the euro

6.5 BRIC – the slowing growth is hitting the emerging countries

Exhibit 6.3 Chotukool – Indian Godrej is creating a disruptive innovation (a low-cost refrigerator) for the BOP market

6.6 ‘Bottom of pyramid’ (BOP) as a market opportunity

Exhibit 6.4 Voltic Cool Pac – distribution of water in Ghana (up to 2011)

6.7 Summary

Case studies

6.1 G-20 and the economic and financial crises: what on earth is globalization about? Protests during a meeting in Buenos Aires, Argentina, November 2018

6.2 Danfoss Power Solutions: which political/economic factors would affect a manufacturer of hydraulic components?

6.3 Debate on globalization

Questions for discussion

References

7 The sociocultural environment

Learning objectives

7.1 Introduction

7.2 Layers of culture

Exhibit 7.1 Electrolux adapts its vacuum cleaner for the Japanese market

7.3 High- and low-context cultures

7.4 Elements of culture

Exhibit 7.2 In China the Citroën C4 brand name was changed to Citroën c-Quatre

Exhibit 7.3 Sensuality and touch culture in Saudi Arabian versus European advertising

Exhibit 7.4 Polaroid’s success in Muslim markets

7.5 Hofstede’s model (the ‘4 + 2’ dimensions model) versus the GLOBE model

Exhibit 7.5 Pocari Sweat – a Japanese soft drink expands sales in Asia

7.6 Managing cultural differences

7.7 Convergence or divergence of the world’s cultures

7.8 The effects of cultural dimensions on ethical decision-making

Exhibit 7.6 The quest for beauty opens a huge market for whitening products in Asia

7.9 Summary

Case studies

7.1 Cirque du Soleil Inc.: the show that revolutionized the circus arts is expanding its global scope

7.2 The Ikea catalogue: are there any cultural differences?

7.3 Allergan – the maker of Botox and breast implants

Questions for discussion

References

8 The international market selection process

Learning objectives

8.1 Introduction

8.2 International market selection: SMEs versus LSEs

8.3 Building a model for international market selection

Exhibit 8.1 Bosch Security Systems: IMS in the Middle East for fire detection systems

8.4 Market expansion strategies

Exhibit 8.2 Sunquick’s waterfall approach

Exhibit 8.3 An example of the ‘trickle-up’ strategy

Exhibit 8.4 Bajaj is selecting new international markets ignored by global leaders

8.5 The global product/market portfolio

8.6 Summary

Case studies

8.1 Waymo: the driverless Google car is finding future growth markets

8.2 Philips Lighting: screening markets in the Middle East

8.3 Oreo (Mondelēz)

Questions for discussion

References

Part II Case studies

II.1 SodaStream: managing profitable growth in an increasingly competitive global environment

II.2 The Female Health Company (FHC): the female condom is seeking a foothold in the world market for contraceptive products

II.3 Rolex: the luxury watch maker is facing increasing competition in the world market

Part III

Market entry strategies

9 Some approaches to the choice of entry mode

Learning objectives

9.1 Introduction

9.2 The transaction cost approach

9.3 Factors influencing the choice of entry mode

Exhibit 9.1 Zara is modifying its preferred choice of entry mode, depending on the psychic distance to new markets

9.4 Summary

Case studies

9.1 Jarlsberg: the king of Norwegian cheeses is deciding on entry modes into new markets

9.2 Jissbon: is acquisition the right way to gain market shares in the Chinese condom market?

9.3 Understanding entry modes into the Chinese market

9.4 Müller Yogurts – entering the US market by Müller Quaker Joint Venture and exit again two years later

Questions for discussion

References

10 Export modes

Learning objectives

10.1 Introduction

10.2 Indirect export modes

10.3 Direct export modes

Exhibit 10.1 Lofthouse of Fleetwood’s (Fisherman’s Friend) decision criteria when selecting new distributors

10.4 Cooperative export modes/export marketing groups

10.5 Summary

Case studies

10.1 Lysholm Linie Aquavit: international marketing of the Norwegian Aquavit brand

10.2 Parle Products: an Indian biscuit manufacturer is seeking agents and cooperation partners in new export markets

10.3 Honest Tea

Questions for discussion

References

11 Intermediate modes

Learning objectives

11.1 Introduction

11.2 Contract manufacturing

11.3 Licensing

11.4 Franchising

Exhibit 11.1 Build-a-Bear workshop’s use of the indirect franchising model in Germany – Austria – Switzerland

11.5 Joint ventures/strategic alliances

Exhibit 11.2 Irn-Bru’s distributor alliance (Y coalition) with Pepsi Bottling Group (PBG) in Russia

Exhibit 11.3 Safedom: a Chinese condom manufacturer needed a partner with which to enter the European market

11.6 Other intermediate entry modes

11.7 Summary

Case studies

11.1 Hello Kitty: can the cartoon cat survive the buzz across the world?

11.2 Kabooki: licensing in the LEGO brand

11.3 Marriott

Questions for discussion

References

12 Hierarchical modes

Learning objectives

12.1 Introduction

12.2 Domestic-based sales representatives

12.3 Resident sales representatives/foreign sales branch/foreign sales subsidiary

12.4 Sales and production subsidiary

12.5 Subsidiary growth and integration strategies

12.6 Region centres (regional HQ)

12.7 Transnational organization

12.8 Establishing wholly owned subsidiaries – acquisition or greenfield

12.9 Location/relocation of HQ

12.10 Foreign divestment: withdrawing from a foreign market

Exhibit 12.1 Tesco’s withdrawal from Japan in 2012 –later in China

Exhibit 12.2 Walmart’s withdrawal from the German market

12.11 Summary

Case studies

12.1 Ralph Lauren Corporation: Polo moved distribution for South-East Asia in-house

12.2 Durex condoms: SSL sell Durex condoms in the Japanese market through its own organization

12.3 Starbucks

Questions for discussion

References

13 International sourcing decisions and the role of the subsupplier

Learning objectives

13.1 Introduction

13.2 Reasons for international sourcing

13.3 A typology of subcontracting

13.4 Buyer–seller interaction

13.5 Development of a relationship

13.6 Reverse marketing: from seller to buyer initiative

13.7 Internationalization of subcontractors

Exhibit 13.1 An example of Japanese network sourcing: the Mazda seat-sourcing case

13.8 Project export (turnkey contracts)

13.9 Summary

Case studies

13.1 ARM: challenging Intel in the world market of computer chips

13.2 Bosch Indego: how to build B2B and B2C relationships in a new global product market – robotic lawnmowers

13.3 Kone elevators and escalators

Questions for discussion

References

Part III Case studies

III.1 Tinder dating app: the famous dating app brand is facing increasing competition from e.g. Badoo

III.2 Spotify: the online music-streaming company is growing fast but is suffering financial imbalance

III.3 Autoliv Airbags: transforming Autoliv into a global company

Part IV

Designing the global marketing programme

14 Product decisions

Learning objectives

14.1 Introduction

14.2 The dimensions of the international product offer

14.3 Developing international service strategies

Exhibit 14.1 Salesforce.com as provider of CRM ‘cloud’ services

14.4 The product life cycle

Exhibit 14.2 The iOS (Apple)/Android (Google) global contest in the smartphone business

Exhibit 14.3 Threadless T-shirt crowdsourcing business

14.5 New products for the international market

Exhibit 14.4 Product invention – solar-powered portable charging systems for India

14.6 Product positioning

Exhibit 14.5 Chinese piano manufacturers are experiencing the ‘country of origin’ (COO) effect

Exhibit 14.6 Madame Tussauds – a brand that brings people closer to celebrities on a global basis

14.7 Brand equity

14.8 Branding decisions

Exhibit 14.7 Unilever’s Snuggle fabric softener – an example of local brands in multiple markets

Exhibit 14.8 Kellogg under pressure to produce under Aldi’s own label

Exhibit 14.9 Shell’s co-branding with Ferrari and LEGO

Exhibit 14.10 Roundup – a global brand for multiple markets

Exhibit 14.11 Maggi – local brands for multiple markets through acquisitions

14.9 Sensory branding

Exhibit 14.12 Starbucks’ expanding product line strategy is causing problems for its ‘scent marketing strategy’

14.10 Implications of the internet for collaboration with customers on product decisions

14.11 Internet of Things (IoT) and its use for marketers

Exhibit 14.13 Google’s use of IoT in the form of the smart thermostat, Nest

14.12 3-D printing – a possible new industrial revolution in customization

Exhibit 14.14 Coca-Cola Israel increases its sales of their mini bottle though a ‘Mini Me’ 3-D Print campaign

14.13 Global mobile app marketing

Exhibit 14.15 L’Oréal is extending the customers’ buying experience with the mobile app Makeup Genius

14.14 ‘Long tail’ strategies

14.15 Brand piracy and anti-counterfeiting strategies

Exhibit 14.16 The next stage in pirating, faking an entire company – NEC

14.16 Summary

Case studies

14.1 Danish Klassic: launch of a cream cheese in Saudi Arabia

14.2 Zippo Manufacturing Company: has product diversification beyond the lighter gone too far?

14.3 Burberry branding

14.4 Tequila Avión

Questions for discussion

References

15 Pricing decisions and terms of doing business

Learning objectives

15.1 Introduction

15.2 International pricing strategies compared with domestic pricing strategies

15.3 Factors influencing international pricing decisions

15.4 International pricing strategies

Exhibit 15.1 German car manufacturers are using ‘skimming’ price strategy in China

Exhibit 15.2 A ‘market pricing’ (‘mass point’) strategy in use: the Converse brand is making a comeback under Nike ownership

Exhibit 15.3 Volkswagen Group’s product portfolio approach to pricing

Exhibit 15.4 The Gillette price premium strategy

Exhibit 15.5 Dollar Shave Club

15.5 Implications of the internet for pricing across borders

15.6 Terms of sale and delivery

15.7 Terms of payment

15.8 Export financing

15.9 Summary

Case studies

15.1 Harley-Davidson: how should the pricing strategy be affected by the new EU tariffs in 2018?

15.2 Gillette Co.: is price standardization possible for razor blades?

15.3 Vaseline pricing strategy

Questions for discussion

References

16 Distribution decisions

Learning objectives

16.1 Introduction

16.2 External determinants of channel decisions

16.3 The structure of the channel

Exhibit 16.1 Burberry: the iconic British luxury brand targets 25 of the world’s wealthier cities

16.4 From single-channel to omnichannel strategy

Exhibit 16.2 Dell’s use of the multichannel distribution strategy

16.5 Managing and controlling distribution channels

16.6 Blockchain technology and its influence on international marketing and SCM

Exhibit 16.3 Maersk’s use of blockchain in their shipping

16.7 Implications of the internet for distribution decisions

16.8 Online retail sales

16.9 Smartphone marketing

16.10 Channel power in international retailing

Exhibit 16.4 The ‘banana split’ model

16.11 Grey marketing (parallel importing)

16.12 Summary

Case studies

16.1 De Beers: forward integration into the diamond industry value chain

16.2 Tupperware: the global direct distribution model is still working

16.3 DHL

Questions for discussion

References

17 Communication decisions (promotion strategies)

Learning objectives

17.1 Introduction

17.2 The communication process

Exhibit 17.1 Husqvarna’s consumer wheel

17.3 Communication tools

Exhibit 17.2 Ninjago’s 360-degree marketing communication

Exhibit 17.3 Ricola is using celebrity endorsement in the international marketing of its herbal drops

Exhibit 17.4 Ambush marketing strategy – Dutch Bavaria vs Anheuser Busch’s Budweiser during the Fifa World Cup 2010

17.4 International advertising strategies in practice

Exhibit 17.5 Jarlsberg® cheese – cross-border communication

17.5 Implications of the internet for communication decisions

17.6 Social media marketing

Exhibit 17.6 Abena is using ‘influencer marketing’ to penetrate the US diaper market

17.7 Categorization of social media

17.8 The social media funnel

17.9 Development of the social media marketing plan

17.10 Developing a viral marketing campaign

Exhibit 17.7 Fox Business (Trish Regan) is selling a political statement

17.11 Summary

Case studies

17.1 Helly Hansen: sponsoring fashion clothes in the US market

17.2 Morgan Motor Company: can the British retro sports car brand still be successful after 100 years?

17.3 BMW Motorcycles

Questions for discussion

References

Part IV Case studies

IV.1 Swarovski: the jewellery/crystal manufacturer is expanding into e-commerce and social media

IV.2 Levi Strauss: expanding in new international markets

IV.3 Guinness: how can the iconic Irish beer brand compensate for declining sales in the home market?

Part V

Implementing and coordinating the global marketing programme

18 Cross-cultural sales negotiations

Learning objectives

18.1 Introduction

Exhibit 18.1 Google gives a clock as gift in China

18.2 Cross-cultural negotiations

Exhibit 18.2 Euro Disney becomes Disneyland Resort Paris – Disney learns to adapt to European cultures

18.3 Intercultural preparation

18.4 Coping with expatriates

18.5 Knowledge management and learning across borders

18.6 Transnational bribery in cross-cultural negotiations

18.7 Summary

Case studies

18.1 ZamZam Cola: marketing of a ‘Muslim’ cola from Iran to the European market

18.2 TOTO: the Japanese toilet manufacturer seeks export opportunities for its high-tech brands in the US

18.3 Dunkin’ Donuts

18.4 Stella & Dot

Questions for discussion

References

19 Organization and control of the global marketing programme

Learning objectives

19.1 Introduction

19.2 Organization of global marketing activities

19.3 The global account management organization

Exhibit 19.1 Danfoss Power Solutions’ GAM

19.4 Controlling the global marketing programme

19.5 The global marketing budget

19.6 The process of developing the global marketing plan

19.7 Summary

Case studies

19.1 Mars Inc.: merger of the European food, pet care and confectionery divisions

19.2 Henkel: should Henkel shift to a more customer-centric organization?

19.3 McDonald’s

Questions for discussion

References

Part V Case studies

V.1 Tencent: the Chinese online giant is seeking new alliances

V.2 Huawei smartphones: expanding into the international markets for smartphone

V.3 Tetra Pak: how to create B2B relationships with the food industry on a global level

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