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IM Course Objective:

 Why Global Marketing is Imperative

 Globalization of Markets: Convergence and Divergence

 Evolution of Global Marketing

 Discuss the reason why firms go international

 Explain the difference between proactive and reactive motives

First Slide:

Discussion of International Marketing

Defining International Marketing

Examining the International Marketing Task

Self-Reference Criterion and Ethnocentrism

Developing a Global Awareness

Stages of Involvement

The increasing importance of global awareness

States of international marketing involvement

Global Marketing

Strategic orientation of international marketing

What is Marketing? What is International Marketing?

What are the most important and fundamental thing in Marketing?

Why doing business outside the firm’s country?

What are the major advantages and disadvantages of international marketing?

Multinational Company vs. Global Company?

Self-Reference Criterion vs. Ethnocentrism?

Global Awareness

• The popularity of American-style hamburgers, fries, and soft drinks is growing around the world,
supporting Levitt’s view of the global village.
• Also, the restaurants themselves offer the consumers a chance to experience for themselves a
fast food legend.

• However, in many locations, menu items are adapted according to the customs and tastes of
individual countries. McDonald’s offers an ideal example of “global localization.”

• With McDonald’s offering of local tastes and a combination of American fare, McDonald’s
thinks globally (product adaption) and acts globally (standardization).

1. The importance of problem definition in international research

2. The problem of availability and use of secondary data

3. Quantitative and Qualitative

4. Multicultural sampling and its problems in less developed countries

5. Sources of secondary data

6. How to analyse and use research information

What are the challenges between domestic and foreign market research?

 Cateora and Graham define international marketing as “the performance of business activities
designed to plan, price, promote, and direct the flow of a company’s goods and services to
consumers or users in more than one nation for a profit.”

Firms entering foreign markets make three basic decisions:


1. Which markets to enter
2. When to enter those markets
3. on what scale to enter those markets
Entry Modes
These are six different ways to enter a foreign market:
1. Exporting
2. Turnkey projects
3. Licensing
4. Franchising
5. Establishing joint ventures with a host country firm
6. Setting up a new wholly owned subsidiary in the host country
Managers need to consider the advantages and disadvantages of each entry mode

Class
Schedule

All course
material is
at

http://instructional1.calstatela.edu/ikim

Identify and briefly describe some of the forces that have resulted in increased global integration
and the growing importance of global marketing.

Explain culture and the need for cultural knowledge.

Summarize the cultural importance of values and behavior.

This chapter first explores the political economy of nations. We examine the main types of political,
economic, and legal systems in practice around the world. We then examine key legal issues for
international firms and explore the importance of ethical behavior and social responsibility.

Describe the key features of each form of political system.

Explain how the three types of economic systems differ.

Summarize the main elements of each type of legal system.


This chapter introduces the different entry modes companies use to “go international.” We discuss the
important issues surrounding the selection and management of (1) exporting, importing, and
countertrade; (2) contractual entry modes; and (3) investment entry modes.

1. Describe how companies use exporting, importing, and countertrade.

2. Explain the various methods of export/import financing.

3. Describe the different types of contractual entry modes.

4. Describe the various kinds of investment entry modes.

5. Outline key strategic factors in selecting an entry mode.

Describe the factors to consider in developing international product strategies.

Outline the international promotional strategies and methods available to firms.

Explain the factors to consider when designing international distribution strategies.

Describe the two main international pricing strategies and factors to consider.

Course Objective:
Understand the history of globalization and how it impacts marketing strategy.
Define what is meant by “global marketing.”
Identify major trends of the past and the future that influence global marketing.
Understand the general discussion of adaptation versus standardization.

Understand the current situation of economic growth and world trade.

Understand how to analyze balance of payment and balance of trade figures.

Learn about different economic systems and stages of economic development.

Realize the potential of emerging global giants.

Conduct a thorough environmental analysis using a variety of tools.

Culture:

Recognize the importance of culture to global marketing.

Identify the components of culture.


Apply cultural frameworks to understand consumer behavior.

Segment countries by cultural similarities.

Understand different models of culture and cultural distance.

Understand the difference between verbal and non-verbal communication.

Legal environment:

Understand some of the legal barriers to using a global, standardized marketing mix.

Identify legal issues of international marketing.

Relate how the use of the Internet for the international sale of goods raises legal problems.

Explain why global marketing research is important.

Understand the difference between marketing research and marketing intelligence.

Understand the importance of information technology for managerial decision marketing.

Determine how to use a marketing intelligence/information system.

Entry Mode strategy:

Distinguish between the various options a firm has for establishing presence in foreign markets.

Compare the risks and the advantages of the export modes, intermediate modes, and hierarchical
modes of entry.

Understand the difference between direct and indirect exports.

Apply distributor selection process, channel management, and control to export management.

Explain the characteristics of international licensing, international franchising, and other important
contract-based intermediate modes.

Understand the difference between strategic alliances and joint ventures.

Explain why joint ventures are prone to failure.


Compare different hierarchical modes of entry: wholly owned subsidiaries, subsidiaries, and affiliates

Distinguish between greenfield and brownfield investments

Understand the factors that influence foreign market entry decision.

Understand the dynamics of entry mode decisions.

STP Framework:

• Develop an international market selection process.

• Segment global markets through macro and micro segmentation.

• Evaluate market attractiveness and competitive strength.

• Apply different methods to define market size.

• Apply the criteria for targeting markets.

• Understand the difference between concentration and diversification.

• Understand the difference between concentrated, differentiated and undifferentiated


strategies.

• Show how to gain competitive advantage through positioning.

Global marketing Strategies:

Product strategies:

Define global products and services.

Understand what is meant by “international product life cycle.”

Discuss the standardization versus adaptation alternative.

Describe product features and perception in a global context.

Discuss why many differences in product attributes are found in emerging markets.

Explain the key approaches to branding decisions in global markets.

Identify and discuss the main international product strategies.

Price Strategy:

Understand the centrality of pricing in the international marketing mix.

Identify the main competitive, consumer, product, distribution and country factors influencing pricing
decisions.
Understand how to define objectives, strategies, and pricing policies.

Distinguish between cost versus market-based pricing approaches.

Learn how to manage new product pricing.

Discuss the standardization versus adaptation alternatives.

Recognize pricing strategies prototypes.

Understand how to manage transfer pricing.

Describe terms and methods of payment.

Understand the concept of counter trade.

Distribution:

Understand the role of distribution in the international marketing mix.

Identify the main internal and external factors influencing distribution decisions.

Understand how to manage global placement and international distribution channels.

Evaluate different types of channel intermediaries.

Recognize the existence of differences in the retailing system of different countries.

Analyze the internationalization of retailers.

Describe the main activities related to physical distribution.

IMC Communication:

Explain what constitutes a global promotional strategy and what marketing activities are included in
it.

Discuss some of the challenges and opportunities marketers face on a global scale when developing
their communication mix.

Define the differences between global and localized marketing communications.

Understand how culture influences advertising preferences.

Provide examples of regulatory issues that advertising executives may encounter around the world
and explain why they are needed.

Know about the practical issues when designing a communications campaign.


Please download and print out the PowerPoint lecture notes before each class meeting.

Week/Date Topic Readings Event

1 International Marketing: Ch1


Introduction Class policy
Examining the International
Marketing Task

2 Environment Scanning: Ch2


Economic Ch3
and Political Environment
Key Trends in the World

3 Global Cultural Environment

4 International Marketing
Research
5 Market Entry Strategies

6 Segmentation, Targeting and Ch10


Positioning in International Ch11
Marketing

7 International Marketing Ch12


Strategies:
International Product Strategies
Communication and Promotion
Strategies
8 International Marketing
Strategies:
International Distribution
Global Pricing
9 Final Presentation I

10
TEXT:
Kotabe and Helsen. Global Marketing Management (5th Ed.) 2010, Wiley. (ISBN:
9780470381113 )

Course Description
International marketing operations: product policies, pricing, advertising, distributional channels,
marketing research; factors governing the decision to engage in foreign transactions. In-depth
market studies.

Learning Objectives
1) To understand globalization.
2) To understand global marketing environment.
3) To develop competitive strategy for global market.
4) To manage global operation.

Class Meetings
Most of each class meeting will be lecture and discussion of marketing concepts and related
topics. In addition, marketing case materials will be discussed at scheduled sessions during the
quarter. Class participation is an important part of your learning process and also grading.
Any distracting behavior or activity during the class may result fail of the class.
Some Examples of Distracting Activities but not limited:
 Using ANY ELECTRONIC DEVICE including CELL PHONE, PC and MP3
 Eating ANY TYPE of FOOD except drinks
 Consistently late on class, and/or frequently in/out of classroom during the lecture
 Making noise
 Studying other subjects