Fifth Edition
GLOBAL MARKETING
A DECISION-ORIENTED APPROACH Svend Hollensen
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CONTENTS
Preface Guided tour Acknowledgements Publisher's acknowledgements Abbreviations About the author
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PARTI
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 1.4 Should the company'stay at home'or'go abroad'? 1.5 Development of the global marketing concept 1.6 Forces for global integration and market responsiveness 1.7 The value chain as a framework for identifying international competitive
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Massive protests during a meeting in London 2009 6.2 Sauer-Danfoss: which political/economic factor would affect a manufacturer of hydraulic components? 6.3 Video case study: debate on globalization Questions for discussion References 6.1
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The sociocultural environment
Learning objectives 7.1 Introduction 7.2 7.3 7.4 7.5 7.6 7.7 •
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Layers of culture High- and low-context cultures Elements of culture Hofstede's original work on national cultures (the '4 + 1' dimensions model) The strengths and weaknesses of Hofstede's model Managing cultural differences
7.8 Convergence or divergence of the world's cultures 7.9 The effects of cultural dimensions on ethical decision-making 7.10 Social marketing 7.11 Summary Case studies 7.1 Lifan: a Chinese sub-supplier and brand manufacturer of motorcycles is aiming at the global market
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7.2 IKEA catalogue: are there any cultural differences? 7.3 Video case study: communicating in the global world Questions for discussion References
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The international market selection process
Learning objectives 8.1 Introduction 8.2 International market selection: SMEs versus LSEs
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CONTENTS
8.3 Building a model
1. Should he pay the “commission” and, if so, to whom? Explain your reasoning. If he pays, how should he handle the situation with the sales manager and the vice president of sales? In your answer, include a discussion of the arguments in favor of paying and the arguments in favor of not paying.
List and analyze FIVE factors which Marketing Manager can apply as tools in to his /her crafting strategy, formulation and execution
A firm 's international marketing program must generally be modified and adapted to foreign markets. This international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. It is important that in international marketing, product, pricing, distribution and promotional strategies be adapted accordingly. In order for an international firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood.
Top managers develop long-range plans, called strategic plans that define the company's overall mission and goals. Strategic planning focuses more on issues that affect the company's future survival and growth. To develop strategic plan, top managers also need information from outside the company, such as economic forecasts, technology trends, competitive threats, governmental issues and shareholder concerns.
Here is an overview of the work of Hofstede, which is probably the most popular work in the area of culture research. Although the work provides a relatively general framework for analysis, the framework can be
1. Frank is director of technology in an MNE in which most of the R&D activities are performed in the parent company’s home country, but then, foreign subsidiaries are responsible for introducing the resulting innovations to their local customers. The innovation process adopted by Frank’s MNE is:
According to Hofstede definition, it is possible to develop the idea of national culture as a culture for a particular group of humans that includes systems of values and is passed down between generations by learning. (Hofstede G. H., 1980, p. 21)
1. To what extent is a global approach to international marketing appropriate to firms in the Asia-Pacific?
The most famous researcher of prevailing cultures in different countries goes by the name of Geert Hofstede. “He conducted one of the most comprehensive studies of how values in the workplace are influenced by culture” (). With the help of his research team, Professor Geert Hofstede created a model of national culture consisting of six dimensions. “The cultural dimensions represent independent preferences for on state of affairs
Douglas & Wier (2005) mention that Hofstede(1980) fails to incorporate multi-culturalism and different ethnicities in a specific ‘national culture’. This is the reason they added additional values to the original framework in their analysis.
Consumer behaviour of US and Western Europe expects domination of retirees in consumer and service demand. They are keen on spending their kinships’ inheritance. Graduate age consumers will show a shift in work life balance, quality of work and taking the time to help communities. Governments are also focused on stimulating birth rates. Japan also experiences decline youth and overall population. CSR is hugely essential for the company’s reputation, so the company will promote the CSR policies through investment in education and other social projects and investment in reduction of the carbon footprint of the business through initiatives.
Geert Hofstede developed the widely applied Hofstede’s cultural dimensions, which mainly focuses on how different countries with different cultural backgrounds handle different anthropological problems that occur in cross-cultural communication (Hofstede 1980). The first five Hofstede’s dimensions will be discussed in following paragraphs. It should be clear that there is no good and bad between two elements in each dimension since every culture has its unique features and ways to function.
Globalization involves a variety of links expanding and tightening a web of political, economic and cultural inter-connections. Most attention has been devoted to merchandise trade as it has had the most immediate (or most visible) consequences, but capital, in and of itself, has come to play an arguably even larger role than the trade in material goods. Human movements also link previously separate communities. Finally, there is the cultural connection. All the individual data would indicate that we are undergoing a process of compression of international time and space and an intensification of international relations. The separation of production and consumption that is the heart of modern capitalism appears to have
Geert Hofstede is an influential Dutch researcher in the fields of organizational studies and more concretely organizational culture, also cultural economics and management. He is a well-known pioneer in his research of cross-cultural groups and organizations and played a major role in developing a systematic framework for assessing and differentiating national cultures and organizational cultures. His studies demonstrated that there are national and regional cultural groups that influence behavior of societies and organizations.
Marketing MA Management and International Business Introduction CRM is a term for methodologists, technologies and e-commerce capabilities -used by companies to manage customer relationships. (Foss, 2001:1) It is also called customer management, customer care and sometimes customer centricity or customer-centric management. (Brown, 2000:1) All the names and definitions of CRM have customer, as its core-it is the management of customer relationships, which attempts to revolutionize marketing and reshape entire business models.