Preface
Globalization is the growing interdependence of national economies 每 involving primarily
customers, producers, suppliers and governments in different markets. Global marketing
therefore reflects the trend of firms selling and distributing products and services in many
countries around the world. It is associated with governments reducing trade and investment
barriers, firms manufacturing in multiple countries and foreign firms increasingly competing
in domestic markets.
For many years, the globalization of markets, caused by the convergence of tastes across
borders, was thought to result in very large multinational enterprises that could use their
advantages in scale economies to introduce world-standardized products successfully.
In his famous 1994 book, The Global Paradox, John Naisbitt has contradicted this myth,
especially the last part:1
The mindset that in a huge global economy the multinationals dominate world business
couldn＊t have been more wrong. The bigger and more open the world economy
becomes, the more small and middle-sized companies will dominate. In one of the
major turn-arounds in my lifetime, we have moved from ＆economies of scale＊ to ＆diseconomies
of scale＊; from bigger is better to bigger is inefficient, costly and wastefully
bureaucratic, inflexible and, now, disastrous. And the paradox that has occurred is, as
we move to the global context: the smaller and speedier players will prevail on a much
expanded field.
When the largest corporations (e.g. IBM, ABB) downsize, they are seeking to emulate the
entrepreneurial behaviour of successful SMEs (small and medium-sized enterprises) where
the implementation phase plays a more important role than in large companies. Since the
behaviours of smaller and (divisions of) larger firms (according to the above quotation)
are convergent, the differences in the global marketing behaviour between SMEs and LSEs
(large-scale enterprises) are slowly disappearing. What is happening is that the LSEs are
downsizing and decentralizing their decision-making process. The result will be a more
decision- and action-oriented approach to global marketing. This approach will also characterize
this book.
In light of their smaller size, most SMEs lack the capabilities, market power and other
resources of traditional multinational LSEs. Compared with the resource-rich LSEs, the
complexities of operating under globalization are considerably more difficult for the SME.
The success of SMEs under globalization depends in large part on the decision and implementation
of the right international marketing strategy.
The primary role of marketing management, in any organization, is to design and execute
effective marketing programmes that will pay off. Companies can do this in their home
market or they can do it in one or more international markets. Going international is an
enormously expensive exercise, in terms of both money and, especially, top management
time and commitment. Due to the high cost, going international must generate added value
for the company beyond extra sales. In other words, the company needs to gain a competitive
advantage by going international. So, unless the company gains by going international,
it should probably stay at home.
1Naisbitt, J. (1994) The Global Paradox, Nicholas Brealey Publishing, London, p. 17.
Preface xix
The task of global marketing management is complex enough when the company operates
in one foreign national market. It is much more complex when the company starts operations
in several countries. Marketing programmes must, in these situations, adapt to the
needs and preferences of customers that have different levels of purchasing power as well as
different climates, languages and cultures. Moreover, patterns of competition and methods
of doing business differ between nations and sometimes also within regions of the same
nation. In spite of the many differences, however, it is important to hold on to similarities
across borders. Some coordination of international activities will be required, but at the
same time the company will gain some synergy across borders, in the way that experience
and learning acquired in one country can be transferred to another.
Objectives
This book＊s value chain offers the reader an analytic decision-oriented framework for the
development and implementation of global marketing programmes. Consequently, the
reader should be able to analyse, select and evaluate the appropriate conceptual frameworks
for approaching the five main management decisions connected with the global marketing
process: (1) whether to internationalize; (2) deciding which markets to enter; (3) deciding
how to enter the foreign market; (4) designing the global marketing programme; and (5)
implementing and coordinating the global marketing programme.
Having studied this book, the reader should be better equipped to understand how
the firm can achieve global competitiveness through the design and implementation of
market-responsive programmes.
Target audience
This book is written for people who want to develop effective and decision-oriented global
marketing programmes. It can be used as a textbook for undergraduate or graduate courses
in global/international marketing. A second audience is the large group of people joining
＆global marketing＊ or ＆export＊ courses on non-university programmes. Finally, this book is of
special interest to the manager who wishes to keep abreast of the most recent developments
in the global marketing field.
Prerequisites
An introductory course in marketing.
Special features
This book has been written from the perspective of the firm competing in international
markets, irrespective of its country of origin. It has the following key features:
.
a focus on SMEs as global marketing players;
.
a decision/action-oriented approach;
.
a value chain approach (both the traditional product value chain and the service value
chain);
.
a value network approach (including different actors vertically and horizontally);
.
a social media marketing approach is integrated throughout the book;
.
coverage of global buyer每seller relationships;
.
extensive coverage of born globals and global account management (GAM), as an extension
of the traditional key account management (KAM);
.
presents new interesting theories in marketing, for example, service value chain, Service
Dominant (SD) Logic, value innovation, Blue Ocean Strategy, social media marketing,
xx Preface
Internet-of-Things (IoT), corporate social responsibility (CSR), global account management,
viral branding and sensory and celebrity branding;
.
aims to be a ＆true＊ global marketing book, with cases and exhibits from all parts of
the world, including Europe, the Middle East, Africa, the Far East, North and South
America;
.
provides a complete and concentrated overview of the total international marketing planning
process;
.
many new up-to-date exhibits and cases illustrate the theory by showing practical
applications.
Outline
As the book has a clear decision-oriented approach, it is structured according to the five
main decisions that marketing people in companies face in connection with the global marketing
process. The 19 chapters are divided into five parts. The schematic outline of the
book in Figure 1 shows how the different parts fit together. Global marketing research is
considered to be an integral part of the decision-making process; therefore it is included
in the book (Chapter 5), so as to use it as an important input to the decision about which
markets to enter (the beginning of Part II). Examples of the practice of global marketing by
actual companies are used throughout the book, in the form of exhibits. Furthermore, each
chapter and part ends with cases, which include questions for students.
What＊s new in the eighth edition?
The new eighth edition is concentrated around three major themes: ＆glocalization＊, ＆internet
of everything＊ and ＆social media marketing＊. The glocalization concept which runs throughout
this new edition enables international marketers to utilize the synergies arising from
being both ＆local＊ and ＆global＊ at the same time. An important aspect of this new edition is
its emphasis on the so-called ＆Internet of Everything＊ and ＆Internet of Things＊ (IoT), which
is becoming incorporated in all parts of the daily communication and buying behaviour
Figure 1 Structure of the book
Part III: Market entry strategies
Chapters 9 每13
Part V: Implementing and coordinating the global
marketing programme
Chapters 18 每19
Part IV: Designing the global marketing programme
Chapters 14 每17
Part I: The decision whether to internationalize
Chapters 1每 4
Part II: Deciding which markets to enter
Chapters 5 每 8
Preface xxi
of consumers around the world. Consequently, this increasing ubiquity of the internet is
reflected in its inclusion in every chapter and in most of the cases and exhibits. The integration
of ＆social media marketing＊ maybe plays the most important role in this edition of
Global Marketing.
The book is still structured around the well-known stages that SMEs go through when
they internationalize as shown in Figure 1.
The book＊s chapters and cases are totally updated with newest journal articles and company
information. Besides that, the following new issues are introduced in the individual
chapters:
.
Chapter 1: the concept of providing customer value is now extended by adding ＆Artificial
Intelligence (AI)＊ and its focus on the global marketing planning process (section 1.11).
AI allows international marketers to adopt a data-driven approach with the objective of
making predictive sense of their global digital customers＊ diverse behaviours across channels
and devices. By analysing historical browsing and transactional patterns, marketers
can identify relevant global customer segments.
.
Chapter 4: The section about the ＆sharing economy＊ is expanded by adding the ＆sharing每
exchange continuum＊ which is a model of consumption whereby goods and services are
not owned by a single user, but rather only temporarily accessed by members of a network
and underutilized assets are shared .
.
Chapter 14: now contains an extended section about how Internet-of-Things (IoT) can
be integrated into the global marketing process (section 14.11), which is highly dependent
on the acquisition of the new skills for the marketer. As the IoT becomes a reality, the
interactions between consumers and things undergo emergence and contribute something
greater than the sum of the parts resulting in new consumer experiences embodying
design and complexity.
.
Chapter 15: introduces the concept of ＆subscription-based pricing＊ (section 15.5). ＆Subscription
pricing＊ is a business model where a customer must pay a (e.g. monthly) subscription
to have access to a product or service. The strategy was initially developed by
magazines and newspapers, but an increasing number of companies and websites are
now using this model for their products and services. The pricing model is illustrated by
the Dollar Shave Club example.
.
Chapter 16: now shows and explains the whole process from the single channel strategy
to the omnichannel strategy (section 16.4). Rather than working in parallel, omnichannel
implies integration and orchestration of channels such that the customer experience of
engaging across all the channels is more efficient or pleasant than using single channels in
isolation. Also, this chapter contains a section about blockchain technology (section 16.6)
and its influence on international marketing and SCM. This new technology will change
business execution and international marketing strategies. With blockchain, anyone can
transfer valuable assets from one person to another person without a third-party trust
middleman.
.
Chapter 17: now contains a totally new way of dividing social media into four categories
(Value Play, Value Sell, Value Share and Value Create), in order to optimize the social
media marketing mix and maximize the Value Capture (net profit/bottom line) from
the social media marketing plan (section 17.7). Furthermore, the chapter also presents
the ＆social media funnel＊ and the key metrics connected to the three stages of a typical
customer buying process: Awareness, Engagement and Action (section 17.8). Finally, the
chapter now contains a more detailed stage plan for the development of the social media
marketing plan (section 17.9).
Several new exhibits with real updated company examples are added to various chapters.
Many completely new and exciting chapter case studies are now available:
xxii Preface
.
Case study 3.1: Bumble 每 the ＆feminist＊ Tinder is expanding fast
.
Case study 3.2: BYD electric cars 每 the Chinese electric car manufacturer is considering
sales worldwide
.
Case study 4.1: William Demant hearing aids 每 different threats appear on the horizon
.
Case study 5.3: e-Bikes in China
.
Case study 8.1: Waymo 每 the driverless Google car is finding future growth markets
.
Case study 9.2: Jissbon 每 is acquisition the right way to gain market shares in the Chinese
condom market?
.
Case study 9.4: M邦ller Yogurts entering the US market by Muller Quaker Joint Venture
and exiting again two years later
Furthermore, completely new part cases have been added:
.
Case I.1: Electrolux 每 a white goods manufacturer is considering growth opportunities
worldwide
.
Case I.2: Nintendo Switch 每 a ＆Blue Ocean Strategy＊ come-back in the games console
market
.
Case II.3: Rolex 每 the luxury watch maker is facing increasing competition in the world
market
.
Case III.1: Tinder dating app 每 the famous dating app brand is facing increasing competition
from e.g. Badoo
.
Case III.2: Spotify 每 the online music-streaming company is growing fast but is suffering
financial imbalance
.
Case IV.1: Swarovski 每 the jewellery/crystal manufacturer is expanding into e-commerce
and social media
.
Case IV.2: Levi Strauss 每 expanding in new international markets
.
Case V.1: Tencent 每 the Chinese online giant is seeking new alliances
. Case V.2: Huawei smartphones 每 expanding into the international markets for smartphones
The following exhibits are also new in the book:
.
Exhibit 14.13: Google＊s use of IoT in the form of the smart thermostat, Nest
.
Exhibit 14.14: Coca Cola Israel increases its sales of its Mini Bottle through a ＆Mini Me＊
3-D campaign
.
Exhibit 16.3: Maersk＊s use of blockchains in its shipping
.
Exhibit 17.6: Abena is using ＆influencer marketing＊ for penetrating the US diaper market
In total Seven (chapter cases) and nine (part cases) =
16 new cases have been added to the
book. In total the book contains 62 chapter cases +
15 part case studies (three per part) =
77 updated case studies in all.
Furthermore 6 completely new exhibits have been added to the book.
Pedagogical/learning aids
One of the strengths of Global Marketing is its strong pedagogical features:
.
Chapter objectives tell readers what they should be able to do after completing each
chapter.
.
Real-world examples and exhibits enliven the text and enable readers to relate to marketing
models.
.
End-of-chapter summaries recap the main concepts.
.
Questions for discussion allow students to probe further into important topics.
Preface xxiii
.
Each chapter contains three or four case studies, which help the student relate the models
presented in the chapter to a specific business situation.
.
Part cases studies 每 for each part there are three comprehensive case studies covering
the themes met in the part. To reinforce learning, all case studies are accompanied by
questions. Case studies are based on real-life companies. Further information about these
companies can be found on the Internet. Company cases are derived from many different
countries representing all parts of the world. Tables 1 and 2 present the chapter and part
case studies.
.
Multiple choice questions.
.
Part case studies: each part is introduced by a case which highlights a general decision
problem from the part.
Table 1 Chapter case studies: overview
Chapter Case study title, subtitle and related
websites
Country/area
of company
headquarters
Geographical
target area
Target
market
B2B B2C
Chapter 1
Global marketing
in the firm
Case study 1.1
Green Toys, Inc.
A manufacturer of eco-friendly toys is going
international www.greentoys.com
US US, World ..
Case study 1.2
Hunter Boot Ltd
The iconic British brand is moving into
exclusive fashion www.hunterboots.com
UK World .
Case study 1.3
Nivea
www.nivea.com
Germany World .
Case study 1.4
Uber
US World .
Chapter 2
Initiation of
internationalization
Case study 2.1
LifeStraw
Vestergaard-Frandsen transforms dirty water
into clean drinking water
www.vestergaard.com
Switzerland World
(developing
countries)
..
Case study 2.2
Elvis Presley Enterprises Inc. (EPE)
Internationalization of a cult icon
www.elvis.com
US World .
Case study 2.3
TOMS Shoes
www.toms.com
US World
(developing
countries)
.
Chapter 3
Internationalization
theories
Case study 3.1
Bumble
The ＆feminist＊ Tinder is expanding fast
www.bumble.com
US World .
Case study 3.2
BYD electric cars
The Chinese electric car manufacturer is
considering sales worldwide
www.byd.cn
China World ..
xxiv Preface
Table 1 Continued
Chapter Case study title, subtitle and related
websites
Country/area
of company
headquarters
Geographical
target area
Target
market
B2B B2C
Case study 3.3
Reebok
www.reebok.com
www.adidas-group.com
US World ..
Chapter 4
Development of the
firm＊s international
competitiveness
Case study 4.1
William Demant hearing aids
Different threats appear on the horizon
www.demant.com
Denmark World ..
Case study 4.2
DJI Technology Co. Ltd
A Chinese ＆born global＊ is dominating the
world market for drones with its Phantom
www.dji.com
China World ..
Case study 4.3
Nike
www.nike.com
US World .
Chapter 5
Global marketing
research
Case study 5.1
Teepack Spezialmaschinen GmbH
Organizing a global survey of customer
satisfaction
www.teepack.com
Germany World .
Case study 5.2
LEGO Friends
One of the world＊s largest toy manufacturers
moves into the girl＊s domain
www.lego.com
Denmark World .
Case study 5.3
e-Bikes in China
https://www.youtube.com/
watch?v=NvaO3hP3i7w
China World .
Case study 5.4
HondaJets
Honda enters the small-sized business jet
market
http://www.hondajet.com/
Japan World .
Chapter 6
The political
and economic
environment
Case study 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
https://g20.org/en/
US World ..
Case study 6.2
Danfoss Power Solutions
Which political/economic factors would affect
a manufacturer of hydraulic components?
www.powersolutions.danfoss.com
Denmark, US,
Germany
World .
Case study 6.3
Debate on globalization
No website available
US US ..
Preface xxv
Table 1 Continued
Chapter Case study title, subtitle and related
websites
Country/area
of company
headquarters
Geographical
target area
Target
market
B2B B2C
Chapter 7
The sociocultural
environment
Case study 7.1
Cirque du Soleil Inc.
The show that revolutionized the circus arts is
expanding its global scope
www.cirquedusoleil.com
Canada World .
Case study 7.2
IKEA catalogue
Are there any cultural differences?
www.ikea.com
Sweden,
Holland
World .
Case study 7.3
Allergan
The maker of Botox and breast implants
www.allergan.com
Ireland/US ..
Chapter 8
The international
market selection
process
Case study 8.1
Waymo
The driverless Google car is finding future
growth markets
www.waymo.com
US World ..
Case study 8.2
Philips Lighting
Screening markets in the Middle East
www.philips.com
Holland World .
Case study 8.3
Oreo (Mondel言z)
www.oreo.com
US World .
Chapter 9
Some approaches
to the choice of
entry mode
Case study 9.1
Jarlsberg
The king of Norwegian cheeses is deciding on
entry modes into new markets
www.jarlsberg.com
Norway World ..
Case study 9.2
Jissbon
Is acquisition the right way to gain market
shares in the Chinese condom market?
www.jissbon.cn
China Europe, World .
Case study 9.3
Understanding entry modes into the Chinese
market
No website available
World China .
Case study 9.4
M邦ller Yogurts
www.muellergroup.com
Germany US ..
Chapter 10
Export modes
Case study 10.1
Lysholm Linie Aquavit
International marketing of the Norwegian
Aquavit brand
www.linie.com
Norway Germany, the
rest of the
world
..
xxvi Preface
Table 1 Continued
Chapter Case study title, subtitle and related
websites
Country/area
of company
headquarters
Geographical
target area
Target
market
B2B B2C
Case study 10.2
Parle Products
An Indian biscuit manufacturer is seeking
agents and cooperation partners in new export
markets
www.parleproducts.com
India World ..
Case study 10.3
Honest Tea
www.honesttea.com
US World, US .
Chapter 11
Intermediate entry
modes
Case study 11.1
Hello Kitty
Can the cartoon cat survive the buzz across the
world?
www.sanrio.com
Japan World ..
Case study 11.2
Kabooki
Licensing in the LEGO brand
www.legowear.dk
Denmark World ..
Case study 11.3
Marriott
www.marriott.com
US World ..
Chapter 12
Hierarchical modes
Case study 12.1
Polo Ralph Lauren
Polo moves distribution for South-East
Asia in-house
www.ralphlauren.com
US World, Asia ..
Case study 12.2
Durex Condoms
SSL will sell Durex condoms in the Japanese
market through its own organization
www.durex.com
UK World ..
Case study 12.3
Starbucks
www.starbucks.com
US World ..
Chapter 13
International
sourcing decisions
and the role of the
subsupplier
Case study 13.1
ARM
Challenging Intel in the world market of
computer chips
www.arm.com
UK World .
Case study 13.2
Bosch Indego
How to build B2B and B2C relationships
in a new global product market 每 robotic
lawnmowers
www.bosch.com
Germany World ..
Case study 13.3
Kone elevators and escalators
www.kone.com
Finland World .
Preface xxvii
Table 1 Continued
Chapter Case study title, subtitle and related
websites
Country/area
of company
headquarters
Geographical
target area
Target
market
B2B B2C
Chapter 14
Product decisions
Case study 14.1
Danish Klassic
Launch of a cream cheese in Saudi Arabia
www.arla.com (regarding the Puck brand)
Denmark Saudi Arabia
Middle East
..
Case study 14.2
Zippo Manufacturing Company
Has product diversification beyond the lighter
gone too far?
www.zippo.com
US World ..
Case study 14.3
Burburry branding
www.burberry.com
UK World .
Case study 14.4
Tequila Avi車n
www.tequilaavion.com
US World .
Chapter 15
Pricing decisions
and terms of doing
business
Case study 15.1
Harley-Davidson
How should the pricing strategy be affected by
the new EU tariffs in 2018?
www.harley-davidson.com
US US, Europe .
Case study 15.2
Gillette Co.
Is price standardization possible for razor
blades?
www.gillette.com
US World ..
Case study 15.3
Vaseline pricing strategy
www.vaseline.com
US US, World .
Chapter 16
Distribution
decisions
Case study 16.1
De Beers
Forward integration into the diamond industry
value chain
www.debeers.com
South
Africa, UK,
Luxembourg
Europe, World ..
Case study 16.2
Tupperware
The global direct distribution model is still
working
www.tupperware.com
US World ..
Case study 16.3
DHL
www.dhl.com
Germany World .
Chapter 17
Communication
decisions
Case study 17.1
Helly Hansen
Sponsoring fashion clothes in the US market
www.hellyhansen.com
Norway US ..
xxviii Preface
Table 1 Continued
Chapter Case study title, subtitle and related
websites
Country/area
of company
headquarters
Geographical
target area
Target
market
B2B B2C
Case study 17.2
Morgan Motor Company
Can the British retro sports car brand still be
successful after 100 years?
www.morgan-motor.co.uk
UK World (Europe
and US)
..
Case study 17.3
BMW Motorcycles
www.bmwmotorcycles.com
www.bmw.com
Germany US, World ..
Chapter 18
Cross-cultural sales
negotiations
Case study 18.1
ZamZam Cola
Marketing of a ＆Muslim＊ cola from Iran to the
European market
www.zamzamrefreshment.com
Iran Europe,
Middle East
..
Case study 18.2
TOTO
The Japanese toilet manufacturer seeks export
opportunities for its high-tech brands in the US
www.toto.co.jp/en/
Case study 18.3
Dunkin＊ Donuts
www.DunkinDonuts.com
www.dunkinbrands.com
Case study 18.4
Stella & Dot
www.stelladot.com
US World ..
Chapter 19
Organization and
control of the
global marketing
programme
Case study 19.1
Mars Inc.
Merger of the European food, pet care and
confectionery divisions
www.mars.com
US World ..
Case study 19.2
Henkel
Should Henkel shift to a more customer-centric
organization?
www.henkel.com
Germany World ..
Case study 19.3
McDonald＊s
www.mcdonalds.com
US World .
Preface xxix
Table 2 Part case studies: overview
Part Case study title, subtitle and related
websites
Country/area
of company
headquarters
Geographical
target area
Target
market
B2B B2C
Part I The decision
whether to internationalize
Case study I.1
Electrolux
A white goods manufacturer is considering
growth opportunities worldwide
www.electrolux.com
Sweden World . .
Case study I.2
Nintendo Switch
A ＆Blue Ocean Strategy＊ come-back in the
games console market?
www.nintendo.com
Japan World .
Case study I.3
Cereal Partners Worldwide (CPW)
The no. 2 world player is challenging the no. 1,
Kellogg
www.generalmills.com/en/Company/Businesses/
international/joint-ventures
www.nestle.com/asset-library/documents/
media/news-and-features/2011-february/
cpw-brochure.pdf
Switzerland,
US
World . .
Part II Deciding
which markets to
enter
Case study II.1
SodaStream
Managing profitable growth in an increasingly
competitive global environment
www.sodastream.com
Israel/US World . .
Case study II.2
The Female Health Company (FHC)
The female condom is seeking a foothold in
the world market for contraceptive products
www.femalehealth.com
US World (governmental
organizations)
. .
Case study II.3
Rolex
The luxury watch maker is facing increasing
competition in the world market
www.rolex.com
Switzerland World . .
Part III Market entry
strategies
Case study III.1
Tinder dating app
The famous dating app brand is facing increasing
competition from e.g. Badoo
www.match.com, www.tinder.com
US World .
Case study III.2
Spotify
The online music streaming company is growing
fast but is suffering financial imbalance
www.spotify.com
Sweden World .
Case study III.3
Autoliv Airbags
Transforming Autoliv into a global company
www.autoliv.com
Sweden, US World .
xxx Preface
Table 2 Continued
Part Case study title, subtitle and related
websites
Country/area
of company
headquarters
Geographical
target area
Target
market
B2B B2C
Part IV Designing
the global marketing
programme
Case study IV.1
Swarovski
The jewerelly/crystal manufacturer is
expanding into e-commerce and social media
Austria World ..
Case study IV.2
Levi Strauss
Expanding in new international markets
US World ..
Case study IV.3
Guinness
How can the iconic Irish beer brand compensate
for declining sales in the home market?
www.diageo.com www.guinness.com
UK, Ireland World ..
Part V Implementing
and coordinating
the global marketing
programme
Case study V.1
Tencent
The Chinese online giant is seeking new
alliances
www.tencent.com
China World .
Case study V.2
Huawei
Expanding into the international markets for
smartphones
www.huawei.com
China World ..
Case study V.3
Tetra Pak
How to create B2B relationships with the food
industry on a global level
www.tetrapak.com
Sweden World .
