Brief Contents
Preface xv
PART ONE
INTRODUCTION 2
Chapter 1 Introduction to Global Marketing 2
PART TWO
APPROACHING GLOBAL MARKETS 38
Chapter 2 Global Information Systems and Market Research 38
Chapter 3 Segmentation， Targeting， and Positioning 74
Chapter 4 Importing， Exporting， and Sourcing 106
Chapter 5 Global Market-Entry Strategies: Licensing， Investment， and
Strategic Alliances 134
PART THREE
THE GLOBAL MARKETING MIX 162
Chapter 6 Brand and Product Decisions in Global Marketing 162
Chapter 7 Pricing Decisions 194
Chapter 8 Global Marketing Channels and Physical Distribution 228
Chapter 9 Global Marketing Communications Decisions I 262
Chapter 10 Global Marketing Communications Decisions II 292
Chapter 11 Global Marketing and the Digital Revolution 322
PART FOUR
STRATEGY AND LEADERSHIP IN THE TWENTY-FIRST
CENTURY 350
Chapter 12 Strategic Elements of Competitive Advantage 350
Glossary 379
Contents
Preface
xv
PART ONE
INTRODUCTION 2
Chapter 1 Introduction to Global Marketing 2
CASE 1-1
The Global Marketplace Is Also Local 2
1-1 Introduction and Overview 3
1-2 Principles of Marketing: A Review 5
Competitive Advantage， Globalization， and Global Industries 6
1-3 Global Marketing: What it is and What it isn’t 9
1-4 The Importance of Global Marketing 16
1-5 Management Orientations 17
Ethnocentric Orientation 17
Polycentric Orientation 18
Regiocentric Orientation 18
Geocentric Orientation 18
1-6 Forces Affecting Global Integration and Global Marketing 21
Driving Forces 21
Restraining Forces 26
1-7 Outline of This Book 27
Summary 28
Discussion Questions 29
Case 1-1 The Global Marketplace Is Also Local (Continued) 30
Case 1-2 McDonald’s Expands Globally While Adjusting Its Local Recipe 31
Case 1-3 Apple versus Samsung: The Battle for Smartphone Supremacy Heats Up 35
PART TWO
APPROACHING GLOBAL MARKETS 38
Chapter 2 Global Information Systems and Market Research 38
CASE 2-1
Big Data: “Number One with a Bullet” in the Music Industry 38
2-1 Information Technology， Management Information Systems， and Big Data
for Global Marketing 40
2-2 Sources of Market Information 45
2-3 Formal Market Research 47
Step 1: Information Requirements 47
Step 2: Problem Definition 48
Step 3: Choosing the Unit of Analysis 49
Step 4: Examining Data Availability 49
Step 5: Assessing the Value of Research 51
Step 6: Research Design 51
Step 7: Data Analysis40 58
Step 8: Interpretation and Presentation 63
2-4 Headquarters’ Control of Market Research 64
2-5 The Marketing Information System as a Strategic Asset 65
Summary 66
Discussion Questions 66
viii CONTENTS
CASE 2-1 Big Data Transforms the Music Business and Artist Careers (Continued) 67
CASE 2-2 A Day in the Life of a Business Systems and Analytics Manager 71
Chapter 3 Segmentation， Targeting， and Positioning 74
3-1
Global Market Segmentation 74
Contrasting Views of Global Segmentation 76
Demographic Segmentation 76
Psychographic Segmentation 82
Behavior Segmentation 85
Benefit Segmentation 86
Ethnic Segmentation 86
3-2
Assessing Market Potential and Choosing Target Markets or
Segments 87
Current Segment Size and Growth Potential 88
Potential Competition 90
Feasibility and Compatibility 91
A Framework for Selecting Target Markets 91
3-3 Product–Market Decisions 94
3- 4 Targeting and Target Market Strategy Options 95
Standardized Global Marketing 96
Concentrated Global Marketing 96
Differentiated Global Marketing 96
3-5 Positioning 97
Attribute or Benefit 98
Quality and Price 98
Use or User 98
Competition 98
Global， Foreign， and Local Consumer Culture Positioning 99
Summary 101
Discussion Questions 102
CASE 3-1 Cosmetics Giants Segment the Global Health and Beauty Market 103
Chapter 4 Importing， Exporting， and Sourcing 106
CASE 4-1
The Game’s Afoot: Exports Revive Britain’s Shoe Industry 106
4-1 Export Selling and Export Marketing: A Comparison 107
4-2 Organizational Export Activities 109
4-3 National Policies Governing Exports and Imports 110
Government Programs That Support Exports 110
Governmental Actions to Discourage Imports and Block Market Access 112
4-4 Tariff Systems 116
Customs Duties 117
Other Duties and Import Charges 118
4-5 Key Export Participants 118
4-6 Organizing for Exporting in the Manufacturer’s Country 120
4-7 Organizing for Exporting in the Market Country 120
4-8 Trade Financing and Methods of Payment11 121
Letters of Credit 121
Documentary Collections (Sight or Time Drafts) 122
Navigating the Real World: A Brief Case Study 123
Navigating the Real World: Another Brief Case Study 123
Additional Export and Import Issues 124
4-9 Sourcing 124
Management Vision 126
CONTENTS
Factor Costs and Conditions 127
Customer Needs 127
Logistics 128
Country Infrastructure 128
Political Factors 128
Foreign Exchange Rates 129
Summary 129
Discussion Questions 130
CASE 4-1 Great Britain’s Shoe Export Boom (Continued) 130
CASE 4-2 A Day in the Life of an Export Coordinator 131
Chapter 5
Global Market-Entry Strategies: Licensing， Investment，
and Strategic Alliances 134
CASE 5-1
AB InBev and SABMiller: A Match Made in (Beer) Heaven 134
5-1 Licensing 136
Special Licensing Arrangements 137
5-2 Investment 139
Joint Ventures 139
Investment via Equity Stake or Full Ownership 141
5-3 Global Strategic Partnerships 145
The Nature of Global Strategic Partnerships 146
Success Factors 148
Alliances with Asian Competitors 149
CFM International， GE， and Snecma: A Success Story 150
Boeing and Japan: A Controversy 150
5-4 International Partnerships
in Developing Countries 151
5-5 Cooperative Strategies in Asia 151
Cooperative Strategies in Japan: Keiretsu 152
Cooperative Strategies in South Korea: Chaebol 154
CASE 5-1 AB InBev and SABMiller: A Match Made in (Beer) Heaven (continued) 157
CASE 5-2 Jaguar’s Passage to India 159
PART THREE
THE GLOBAL MARKETING MIX 162
Chapter 6 Brand and Product Decisions in Global Marketing 162
CASE 6-1
Alphabet 162
6-1 Basic Product Concepts 163
6-2 Basic Branding Concepts 166
Local Products and Brands 167
International Products and Brands 168
Global Products and Brands 168
Global Brand Development 171
CONTENTS
6-3 A Needs-Based Approach To Product Planning 175
6-4 “Country of Origin” as a Brand Element 178
6-5 Extend， Adapt， Create: Strategic Alternatives in Global Marketing 180
Strategy 1: Product-Communication Extension (Dual Extension) 181
Strategy 2: Product Extension–Communication Adaptation 182
Strategy 3: Product Adaptation–Communication Extension 183
Strategy 4: Product-Communication Adaptation (Dual Adaptation) 184
Strategy 5: Innovation 185
How to Choose a Strategy 185
6-6 New Products in Global Marketing 186
Identifying New-Product Ideas 186
New-Product Development 187
The International New-Product Department 189
Testing New Products 189
Summary 190
Discussion Questions 191
CASE 6-1
Google (continued) 191
Chapter 7 Pricing Decisions 194
CASE 7-1
Global Automakers Target Low-Income Consumers 194
7-1 Basic Pricing Concepts 195
7-2 Global Pricing Objectives and Strategies 196
Market Skimming and Financial Objectives 196
Penetration Pricing and Nonfinancial Objectives 198
Companion Products: Captive (“Razors and Blades”) Pricing 198
Target Costing6 199
Calculating Prices: Cost-Plus Pricing and Export Price Escalation 200
7-3 Incoterms 201
7-4 Environmental Influences on Pricing Decisions 205
Currency Fluctuations 205
Inflationary Environment 208
Government Controls， Subsidies， and Regulations 209
Competitive Behavior 210
Using Sourcing as a Strategic Pricing Tool 211
7-5 Global Pricing: Three Policy Alternatives 211
Extension or Ethnocentric Pricing 211
Adaptation or Polycentric Pricing 212
Geocentric Pricing 212
7-6 Gray Market Goods 213
7-7 Dumping 214
7-8 Price Fixing 215
7-9 Transfer Pricing 216
Tax Regulations and Transfer Prices 216
Sales of Tangible and Intangible Property 217
7-10 Countertrade 218
Barter 218
Counterpurchase 219
Offset 219
Compensation Trading 219
Switch Trading 220
Summary 220
Discussion Questions 221
CASE 7-1 Global Automakers Target Low-Income Consumers (Continued) 221
CONTENTS
CASE 7-2 Global Consumer-Products Companies Target Low-Income Consumers 223
CASE 7-3 LVMH and Luxury Goods Marketing 225
Chapter 8 Global Marketing Channels and Physical Distribution 228
CASE 8-1
Welcome to the World of Fast Fashion 228
8-1 Distribution Channels: Objectives， Terminology， and Structure 229
Consumer Products and Services 230
Industrial Products 234
8-2 Establishing Channels and Working With Channel Intermediaries 235
8-3 Global Retailing 238
Types of Retail Operations 239
Trends in Global Retailing 243
Global Retailing Market Expansion Strategies 246
8-4 Physical Distribution， Supply Chains， and Logistics Management 249
Order Processing 251
Warehousing 252
Inventory Management 252
Transportation 252
Logistics Management: A Brief Case Study 255
Summary 255
Discussion Questions 256
CASE 8-1 Welcome to the World of Fast Fashion (continued) 257
CASE 8-2 Can Walmart Crack the Retail Code in India 260
Chapter 9 Global Marketing Communications Decisions I 262
CASE 9-1
Volkswagen’s “Dieselgate” Nightmare 262
9-1 Global Advertising 263
Global Advertising Content: Standardization versus Adaptation 265
9-2 Advertising Agencies: Organizations and Brands 269
Selecting an Advertising Agency in the Era of Digital Disruption 270
9-3 Creating Global Advertising 274
Art Direction and Art Directors 275
Copy and Copywriters 276
Additional Cultural Considerations 276
9-4 Global Media Decisions 279
Global Advertising Expenditures and Media Vehicles 280
Media Decisions 280
9-5 Public Relations and Publicity 281
The Growing Role of PR in Global Marketing Communications 285
How PR Practices Differ Around the World 286
Summary 286
Discussion Questions 287
CASE 9-1 Volkswagen’s “Dieselgate” Nightmare (continued) 287
CASE 9-2 Coca-Cola: Using Advertising and Public Relations to Respond to a Changing
World 289
Chapter 10 Global Marketing Communications Decisions II 292
CASE 10-1 Milan Expo 2015 292
10-1 Sales Promotion 293
Sampling 296
Couponing 297
Sales Promotion: Issues and Problems 297
xii CONTENTS
10-2 Personal Selling 298
The Strategic/Consultative Selling Model 299
10-3 Sales Force Nationality 304
10-4 Special Forms of Marketing Communications: Direct Marketing 306
Direct Mail 307
Catalogs 308
Infomercials， Teleshopping， and Interactive Television 309
10-5 Special Forms of Marketing Communications: Support Media，
Sponsorship， and Product Placement 312
Support Media 312
Sponsorship 313
Product Placement: Motion Pictures， Television Shows， and Public Figures 314
Summary 317
Discussion Questions 317
CASE 10-1 Milan Expo 2015 (Continued) 318
CASE 10-2 Red Bull 319
Chapter 11 Global Marketing and the Digital Revolution 322
Case 11-1 How Do You Like Your Reality Virtual Augmented Mixed 322
11-1 The Digital Revolution: A Brief History 323
11-2 Convergence 327
11-3 Value Networks and Disruptive Technologies 328
11-4 Global E-Commerce 330
11-5 Web Site Design and Implementation 332
11-6 New Products and Services 335
Broadband 335
Cloud Computing 336
Smartphones 337
Mobile Advertising and Mobile Commerce 337
Autonomous Mobility 339
Mobile Music 340
Mobile Gaming 341
Online Gaming and e-Sports 341
Mobile Payments 342
Streaming Video 342
Internet Phone Service 342
Digital Books and Electronic Reading Devices 343
Wearables 344
Summary 345
Discussion Questions 345
CASE 11-1 How Do You Like Your Reality: Virtual Augmented Mixed (Continued) 346
CASE 11-2 Africa 3.0 347
PART FOUR
STRATEGY AND LEADERSHIP IN THE TWENTY-FIRST
CENTURY 350
Chapter 12 Strategic Elements of Competitive Advantage 350
CASE 12-1 IKEA 350
............................................................................................................
....
Threat of New Entrants 352
Threat of Substitute Products 353
Bargaining Power of Buyers 353
CONTENTS xiii
Bargaining Power of Suppliers 354
Rivalry among Competitors 354
12-2 Competitive Advantage 355
Generic Strategies for Creating Competitive Advantage 355
Creating Competitive Advantage via Strategic Intent 358
....................................................................................................................
....
Factor Conditions 362
Demand Conditions 363
Related and Supporting Industries 365
Firm Strategy， Structure， and Rivalry 366
Chance 366
Government 367
12-4 Current Issues in Competitive Advantage 367
Hypercompetitive Industries 367
The Flagship Firm: The Business Network with Five Partners 372
Blue Ocean Strategy 373
Additional Research on Competitive Advantage 373
Summary 374
Discussion Questions 375
CASE 12-1 IKEA (Continued) 375
CASE 12-2 “Everything Is Awesome， Everything Is Cool” at LEGO 377
Glossary 379
內容試閱：
We are proud that this Tenth Edition of Global Marketing marks more than two decades of publication
success. In this new edition， as in prior editions， we take an environmental and strategic
approach to global marketing by outlining the major dimensions of the global business environment.
We also provide a set of conceptual and analytical tools that prepare students to successfully
apply the 4Ps when pursuing careers in global marketing or related areas.
Guided by our experience using the text in undergraduate and graduate classrooms and in
corporate training seminars， we have revised， updated， and expanded Global Marketing. One
of our challenges in developing a new edition of Global Marketing is the rate of change in the
global business environment. Yesterday’s impossibility becomes today’s reality; new companies
explode onto the scene; company leadership changes abruptly. In short， any book can be quickly
outdated by events. Even so， we set out to create a compelling narrative that captures the unfolding
drama that is in inherent in marketing in the globalization era.
When Principles of Global Marketing first appeared in 1996， we invited readers to “look
ahead” to such developments as the ending of America’s trade embargo with Vietnam， Europe’s
new single market， Daimler AG’s Smart car， Volkswagen’s global ambitions， and Whirlpool’s
expansion into emerging markets. This newly revised edition also surveys important current
developments in the international arena， including Britain’s tortuous path towards Brexit，
China’s ascendance on the world stage， evolving trade relations in the Trump era， achievements
by entrepreneurs such as Elon Musk， plus much more.
We are passionate about the subject of global marketing; if our readers detect a note of
enthusiasm in our writing， then we have been successful. Our goal for all ten editions has been
the same: to write a book that is authoritative in content yet relaxed and assured in style and
tone. One instructor using the Ninth Edition wrote us to say， “I love the text， and really like
the way it engages students. That is invaluable.” We believe that you will find latest edition of
Global Marketing to be the most engaging， up-to-date， relevant， useful text of its kind.
New to This Edition
As with previous editions， the Tenth Edition offers up-to-date， original insights into the complexities
and subtleties of shifts in the external environment and their implications for global
marketers. Specific updates and revisions include:
.
More than fifty percent of the chapter-opening vignettes and related endof-
chapter cases are new to the Tenth Edition. Cases retained from the
prior edition have also been revised and updated for this new edition.
.
Revised and updated end-of-chapter cases include Case 1-2，
“McDonald’s Expands Globally While Adjusting Its Local Recipe”;
Case 1-3， “Apple versus Samsung: The Battle for Smartphone
Supremacy Heats Up”; Case 6-1， “Google”; Case 7-1， “Global
Automakers Target Low-Income Consumers”; Case 12-1， “IKEA.”
.
New cases in the Tenth Edition include Case 8-1， “Welcome to the
World of Fast Fashion”; Case 11-1， “How Do You Like Your Reality?
Virtual? Augmented? Mixed?”
.
New discussion of social media is integrated throughout the Tenth
Edition. Chapter 11， “Global Marketing and the Digital Revolution，” has
been thoroughly revised and updated to include discussion of location-
based mobile platforms， cloud computing， tablets， wearable devices，
autonomous mobility， and other cutting-edge topics.
.
In addition， most chapters contain sidebar features on the following
themes: Emerging Markets Briefing Book; Entrepreneurial Leadership，
Creative Thinking， and the Global Startup; and The Cultural Context.
.
Among the entrepreneurs profiled in these sidebars are Kevin Systrom
CASE 1-3
Apple versus Samsung: The Battle for Smartphone
Supremacy Heats Up
W
W
hen Steve Jobs died in October 2011， the world lost one of the
rivalry between Apple and Samsung has been heated， with the two
towering figures of the modern business era (see Exhibit 1-14).
sides squaring off in court over alleged patent infringement.
Apple， the company Jobs cofounded， was a pioneer in the consumer
China and Europe are two of Samsung’s key markets; in 2012，
electronics world; its key product introductions included the Apple II
the company launched the Galaxy S III in Europe. In 2013， however，
(1977)， the Macintosh (1984)， the iPod and iTunes (2001)， the Apple
Samsung staged a lavish event at Radio City Music Hall in New York to
Store (2001)， the iPhone (2007)， and the iPad (2009). At the time of
launch the Galaxy S4. Why the change? As J. K. Shin， the executive in
Jobs’s death， Apple was the most valuable tech company in the world.
charge of Samsung’s mobile business， noted， “We’re a global player in
By September 2012， Apple stock had soared to record levels， with
the smartphone market and a global company， and the U.S. is an imporits
price briefly rising above $700 per share. In addition， Apple had
tant market for us....I’m not satisfied with our U.S. market share.”
amassed more than $100 billion in cash， most of it held abroad as
In many developing countries， there is strong demand for inexpenforeign
earnings. Meanwhile， once-dominant tech industry giants such
sive mobile phones. Some Android-based models from Samsung and
as Nokia， Sony， Dell， and BlackBerry were struggling.
other companies sell for much less than Apple’s cheapest models. For
Despite strong 2012 sales for the iPhone 5， industry observers
many years， Apple did not offer a lower-cost version of the iPhone. In
began to wonder whether Apple’s hot streak of hit product introduc
the United States， wireless carriers such as Verizon and AT&T subsidized
tions was starting to cool. Apple’s reputation was based on its proven
the price of the iPhone for consumers who signed multiyear service
ability to disrupt existing markets (e.g.， the music and telecommunica
contracts—a factor that explained why an American iPhone 5 sold for
tions industries) and to create new markets through the introduction
$199. By contrast， in other countries consumers paid the full， unsubsiof
technical and design innovations. However， some viewed the 2012
dized price of the iPhone but were not tied to a contract. Moreover， the
launch of the iPhone 5 as an evolutionary step rather than a revolution
iPhone 5 was the same in every world market. By contrast， Samsung
ary breakthrough. In fact， many consumers opted to buy the slower，
made several versions of the Galaxy S4—using different processors， for
cheaper iPhone 4 or 4S rather than upgrade to the iPhone 5. Without
example—to suit the needs of different regions.
Jobs， who was considered by many to be the heart and soul of the
Not surprisingly， smartphone makers are setting their sights on
company， were Apple’s best days behind it?
China， India， and other emerging markets. For example， Greater China，
which includes China， Hong Kong， and Taiwan， is now Apple’s second-
The Competitive Threat
largest market. In 2013， Cook announced that China Mobile， the larg-
As growth in the key smartphone sector began to slow， Apple’s most
est carrier in the region and the world’s largest carrier overall， would
formidable competitor was Samsung Electronics， a division of Korean
begin selling the iPhone. Apple faces strong competition from local
industrial giant Samsung Group， whose products range from semicon
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