Download DATE - Kellogg School of Management

NORTHWESTERN UNIVERSITY
J.L. KELLOGG SCHOOL OF MANAGEMENT
Revised February 5, 2006
INT MKT 467
International Marketing
Spring 2006
Professor Phil Corse
Office Hours: 1 Hour prior to class and by appointment
[email protected]
[email protected]
Mondays Evanston Campus
President and CEO
Connectables, LLC (China Sourcing and Trading company)
Senior Vice President, Marketing Consulting Services
Herbst LaZar Bell (New Product Research, Design and Development)
312 454 8784 x398 office
847 778 7107 mobile
847 295 7509 home
1 Course Description
This course on Global Marketing is based on a combination of lectures/discussions, cases, videos, outside speakers,
country marketing reports and a final marketing project in a foreign country. It draws upon real world experience …
mostly mine (but also yours).
My background? I have 12 years of corporate experience and the last 15 years I have been conducting marketing
consulting engagements globally and sourcing products from China for resale in the US and Europe. I am a classical
trained marketer, serial entrepreneur and new product focused marketing consultant.
The main perspective … but not the only one … that you the student will have, is as the Chief Marketing Officer of a US
based corporation that is interested in entering new global markets and/or expanding its business in existing global
markets. Other themes and perspectives are:

The important trend of emerging Asian countries”… especially China … striving” to increase their US sales
and trying to establish/build their own brands, buy US companies/brands and “manage” their currency

The recognition that China can’t just be the “world’s factory” but must sell and market its own products to its
emerging middle class … and build/expand its relatively few and unknown brands in developed countries and
particularly in the Middle Kingdom!”
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My philosophy that marketing starts and ends with the consumer or end user … that products must be
developed, channels configured and markets created or penetrated based on consumer experiences and
environments
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The “interesting” and intensifying political turmoil within Europe and expanding EU countries … towards each
other and especially towards the United States … and the effect on US brands.
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The identification and benchmarking of “best international marketing practices”, success stories and failure
examples of global companies.
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The global opportunity of selling to the 4 billion “poor people” (of the 6 billion people on the planet) by
designing and developing low cost products and services that are affordable for this target market.
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The reality that governments of foreign countries in cross border trade can be a significant barrier to entry, a
partner, a customer or a competitor … and are in fact a “sixth” force in the 5 forces model … distributors can
be a seventh force!
You will be asked individually and as a member of a team to provide both oral discussions and written analysis that will
enable you to analyze the business environment and focus on global marketing problems and opportunities. Please
bring into class or send me timely and relevant global marketing articles and information to be discussed and shared
wit the class.
As a team, you will ultimately develop a marketing strategy and plan for a global enterprise in a team selected country
and for a team selected product or service. You will provide an “order of magnitude” profit and loss forecast based on
the opportunity assessment your team formulates. The keys to this P & L are the revenue justification, the assumptions
about selling prices and profits for all channel members and the optimal mix of “push/pull” marketing strategy
components.
One class addresses “Big Emerging Markets” … with special focus on China. The 2 major themes are (1) how do you
source from China? And (2) how do you sell to China? This class is based on personal experience and case histories.
This course integrates and addresses the significant impact of cultural, economic, political, infrastructure and
population variables in global marketing management. Students will explore marketing issues and marketing
implications in a cross-cultural perspective. Your market, competitor and cultural investigation will address appropriate
opportunity and risk assessment, market entry strategies, and importantly, the implementation of the marketing plan.
This course will balance academic rigor and theoretical framework with the real world and the application with
provided global marketing tools and business practices … with the emphasis on the implementation of global
marketing plans and programs.
I am highly interactive … real world … and I will expect and encourage stimulating (I hope!) in class
discussions with challenging and engaging points of view. My strong emphasis is on application … what
works in the comfort and convenience of a classroom … or a spreadsheet … many times will not work in the
real world … together we will sort that.
Please note that the course slightly “overweights” China and Asia and “market entry” strategy.
2 Text
2
The required text is The Mirage of Global Markets by David Arnold, Prentice Hall, 2004. This newer book focuses on
International Marketing Management. The central theme is that markets are becoming more localized… “intensely
local” … and the book stresses how international marketing is very different than conventional marketing by focusing
on local markets that are becoming more and more fragmented.
Optional book: World out of Balance by Paul Louisiana, McGraw-Hill, 2005. This new book addresses global risks to
obtain competitive advantage and is highly recommended but not required.
Another book, The World is Flat by Thomas Friedman, is recommended especially for his “Ten Forces” discussion in
the first part of the book.
3 Learning Outcomes
Upon completion of International Marketing, you will be able to:
3.1
Recognize cultural differences in various global regions and their effect on the conduct of international
business and is able to analyze these cultural differences in terms of opportunities and inherent risk in
conducting marketing activities.
3.2
Understand the benefits in engaging in international trade in relationship to political economic factors such as
free trade or regional agreements … and learn how to target regions/countries based on their membership in
a free trade agreement.
3.3
Understand how to compete in international markets and the need for organizational structures designed to
manage global companies
3.4
Become more of a global citizen, and learn the economic and marketing aspects of globalization.
3.5
Develop strategies and plans for market entry and implementation for a company in a foreign country and be
able to quantify that opportunity … and justify the revenue … in pro forma P & L statements.
3.6
Gain exposure and perspective to the challenge of managing international marketing operations in a
domestic US corporation.
4 Grading
Shown below are your major deliverables and the weighting of each:
Individual
Individual Participation
1 Case “Memo”
“Best Global Marketing Practices”
15%
15%
15%
Team based
Country Market Report Presentation*
Marketing Strategy Brief for Final Project (1 page memo)
Final Project: Marketing Plan Presentation
15%
5%
35%
* Includes individual peer evaluations by each team member … these are critical and are the only
way for me to assess a student’s team performance and participation outside of class.
3
Total
100%
Notes: Since there are 2 assigned team presentations, it is not necessary for all team members to present
each time. Ideally if the team consists of 4-5 members, 2-3 will present each time and the others will handle Q
& A. and the next time, 2-3 different team members will present.
Each student will turn in 1 case only --- that will be preassigned.
5 Best Global Marketing Practices
Each of you will be assigned a company that is marketing its products/services to 2 or more regions of the
world (excluding the home country). You need to list the specific practices that distinguish them from other
companies. These “best” practices must focus on the 4Ps, culture, segmentation, product/service
development, marketing alliances, distribution configurations, market entry, market expansion or other
areas of marketing and sales interest.
Your “memo” should first describe the company and its products in a paragraph and then list 7-8 or more
approaches, techniques, methods, practices around the themes mentioned above. You will receive 2 points
for every good practice and 1 point for every average practice … to a maximum of 15 points for this
assignment.
This memo should be a maximum of 1 page in a font of 11 or larger with regular margins. You will be
asked in class to informally “present” your findings and insights. I will randomly choose 3-4 students every
class to share their analysis. You will hand in a hard copy of the memo.
Participation
The class format will be approximately 50% informal lecture and discussion, 40% casework, and 10% student team
presentations. Class participation is very important to me as I have a highly interactive approach … that of a
facilitator and coach… so your ideas and input are more than welcomed, they are expected!!! The slides in the
case packet are from a variety of sources: Kotler, Cateora, Keegan and me. I will be posting additional presentations,
“tools” and teaching materials on Blackboard. I will not present every slide in the case packet.
If there is not enough “air time” or you have additional thoughts later, you are encouraged to email me your insights
and builds or catch me after class or in my office. I do plan to cold call on a regular basis.
You will be expected to prepare for and contribute to each class. This is a very important part of the course. Rather
than restating the obvious, you will be expected to provide informed and insightful comments and contributions to the
subject case or material being addressed that evening. Kellogg class etiquette discourages the use of computers in
class. If you intend to use your computer in class, I will assume and expect that it will only be used for note taking.
Violations of this, either observed or reported, will negatively affect your participation grade. The Kellogg Honor Code,
which I assume you are familiar with, is in effect for this class. If you do not have a copy, please let me know.
Your participation grade will be reduced by 2 points if you miss a class and by 5 points if you miss 2 classes. If you
miss 2 classes it will be almost impossible to receive an “A”, regardless of the reason. Please let me know beforehand
if you expect to miss a class and the reason why. You must complete a “makeup” assignment if you miss 2 classes.
"Contrarian" points of view are strongly encouraged! I welcome the opportunity to explore different points of
view!
Class Format
Our class time will be divided as follows:
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First hour: Lecture and discussion orGuest Speaker
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Next half hour to 45 minutes: best global marketing practices, success stories, failure examples, case
histories, videos and current trade press and newspaper articles
Break
Next 45 minutes: Assigned case discussion and connections
Next 20 minutes: Team presentations of Country Market Reports and class discussion of additional “builds”,
connections and insights for that country.
Last 10 minutes: Takeaways and key learnings
6 Country Market Reports (CMRs)
In order to ensure that each student is current with global business events and to learn more about specific countries,
you will be asked to use the international press (using the internet and other sources) to investigate the assigned
country.
Each team will present no more than 10 slides in 15 minutes and then lead a class discussion on the marketing key
learnings for that country. You will not simply report facts and figures … rather you will offer marketing advice in the
form of marketing insights. For example, take Japan ---- the distribution system in that country is very complex with
many levels. One “takeaway” for a global marketer is that there must be sufficient margin and programs to motivate the
many layers of channel members who may have competing objectives and interests.
Another one for Hong Kong is that direct mail is not effective because the Chinese do not respond to direct mail offers.
I will provide more examples of the deliverables in class before the first team presentation. Each Country Market
Report presentation should be organized to identify and address global issues that have a short or long-term effect on
specific industries.
Your marketing insights, key learnings and connections must be organized around many of the following global
marketing and sales themes/principles:
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Marketing communications … global branding and promotion
Culture … language, religion, values etc.
Pricing … getting paid
Distribution channels/market access
Alliances, partnerships and joint ventures
Products and services … global product development and innovation
Segmentation, targeting and positioning
Market entry/market expansion
User/market research
Marketing and sales management, organization and structure
Global account management
Marketing strategy
The presentation is valued at 15 points (including Q & A). You will receive 2 points (to a max of 15) for every major
insight/reasons why that is a solid takeaway … there must be at least 4 different marketing principles or topics
addressed, e.g., pricing, culture, distribution and market entry. No credit will be given for facts … only for the
connections you make! In other words, you need to provide useful, actionable sales and marketing advice as if we
were going to enter or expand the market in the country of your choice. Your presentation should end in an example of
a success story of a company who is doing well in that country and an example of a company who failed --- please
provide the reasons for success or failure.
The only hand in will be your 10 slides and any exhibits you might develop. Please provide a hard and a soft copy,
which I will post on Blackboard.
You may later use the selected country for your final project … or not, it’s your call.
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7 Case Memos
Each student will be assigned one case (out of the cases listed).
I will assign the cases and questions during the first class. The deliverable is a memo due at the beginning of the class
in hard copy only. The memo is limited to 1 page in a font of 11 or larger with standard margins (no limit on number of
exhibits). Please list each of the questions/issues followed by your answers.
This memo may have an unlimited number of exhibits, charts, graphs, web pages etc. The objective here is to analyze
complex situations and develop a crisp action-oriented memo that recommends a solution or direction that can be
implemented … in a 1-page memo. Expanded bullet points are preferred to text intensive documents.
Cases are in the case packet.
8 Final Project: Marketing Plan Presentation
Purpose
This group project is intended to develop skills and provide a real- world experience in market assessment, selection,
entry strategy and the development and implementation of your own marketing program. Because the scope of such
an endeavor is far beyond the time and resources of any one student, it is by necessity, a group project.
Select a company that currently markets products internationally or would like to do so. Examine the portfolio of
products within the firm and select a product or product line to launch in another country. Through some rational
means, such as Country Analysis, determine the target country. For a multinational firm with diverse global operations,
you may select a country where the firm is well established as long as your product of choice is not yet marketed there.
For example, suppose Campbell's CHUNKY SOUP is a major international line for the Campbell's Soup Company but
has not yet been introduced in the Asia-Pacific rim except Japan. Your plan should include a brief assessment of
candidate countries considered with some rational justification for selection of the target country. This is precisely what
you would do if you worked for Campbell's.
A sharp contrast to the soup example would be to select a firm who has just begun marketing internationally. The task
of establishing an export opportunity could provide a wealth of experience related to the nuts and bolts of simply getting
things done in a small business environment.
There is no best topic, product, company or industry. Your choice should reflect the interests of the team. It is also
perfectly appropriate to select the product and company of a team member. No restrictions are imposed regarding the
use of company resources available to you in pursuit of your topic. (E.g., interviews with key employees, company
records, reports, published information, etc.) Of course you are bound by company policy on the use of such
information.
It is strongly recommended that you avoid a new product or a new service. It is much better to select a company that
has an established product line that needs to be sold in additional countries.
Activities and Timing
8.1
The first order of business is to form into teams of 4-5 students. A slightly longer break will be provided the
first night to meld teams.
8.2
Experience suggests it is easier to first select a company, then the product. The country selection will be the
result of your analysis of several candidate countries. Sometimes this process is reversed when a group has
a particular interest in a country. The justification steps are still required.
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8.3
Include in your plan a description of the firm's international operations and its corporate culture. Several
elements of a company organizational assessment may be useful here if you are using your company.
8.4
Prepare a product/service fact sheet as a guideline for investigating and gathering information.
8.5
Your methodology should include development of both primary and secondary data about the company,
product and country. Personal interviews, telephone/electronic interviews and any other form of direct
contact are encouraged. Several databases may be available through Northwestern or one of your
companies.
8.6
Develop your Marketing Plan using any elements of various outlines included in this course, the text or any
other sources. There is no one ideal format. Consider an outline format easily transferable to transparencies
or slides.
8.8 Plan presentations will be on the last class day. Each team (depending on the number of teams) will make a 20minute summary presentation with no more than 12 slides and 10-15 minutes will be allotted for Q & A. You are
required to turn in both a copy of your presentation and a CD … (no other write-up is required) and any backup or
supplementary information you consider essential (there is no limit on the number of exhibits). A bibliography or
equivalent document outlining your sources of information is not required.
8.8
Timing … it is essential to establish a pace and delegate assignments and investigations on a timely basis.
The following is a guideline to coordinate your activities:
Week 2 Investigate Company, product, country
Week 3 Reconfirm with country analysis and a cultural audit
Week 4 Develop preliminary marketing strategy
Week 5 Format plan
Week 6 Continue research and finalize strategy
Week 7 Revenue justification/P&Ls prepared
Week 8 Complete plan and prepare presentation (I’ll show examples of past
presentations and let you look at them in class)
Week 9 Hand in hard copy of Marketing Strategy Brief* and discuss in
class
Week 10 Show time!
9 Grading for Marketing Strategy Brief and Final Project
The project is 40% (40 points) of your grade. Each team member receives the same grade unless notably different
levels of contribution are reported or observed. E.g., a “low” peer evaluation will result in a lower grade … for this
project. A marketing plan rating sheet is provided in the case packet to further review presentation evaluation criteria.
The breakdown of the 40 points is as follows:
*Marketing Strategy Brief: 5 points … a 1 page memo that first documents the product or market opportunity
assessment and secondly that provides the marketing strategy summary to include: the 4Ps, how you are segmenting,
targeting and positioning to end users (with special emphasis on culture, use model and buying habits and practices)
and any cross border issues or problems … e.g., tariffs, duties, government quotas or other barriers to entry.
Grading values are 2 points for the opportunity assessment (the “why” of the product or market opportunity) and 3
points for the marketing strategy.
A team representative will informally and briefly present this Marketing Strategy Brief at Class #9 to obtain “builds” and
“marketing advice” from the other teams and from me. After I read your brief, I will email each team my additional
feedback. This process will enable your team to take your Final Project to a higher level.
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Content … marketing strategy, country analysis, cultural audit, marketing sizing, opportunity assessment, market entry
or expansion etc: 20 points (includes 5 points for Marketing Strategy Brief due Class # 9).
Financials, volume projections and justification: 5 points
Presentation … energy, passion, communication and persuasiveness: 10 points
Q&A, rebuttal, and ability to make additional points: 5 points … it’s your responsibility to facilitate discussion and make
additional comments.
The grading emphasis and ‘trade-offs” will be on the recommended marketing strategy, rationale and the action plans
to implement the strategy in the “real world”.
10 Deliverables
Shown below is a timeline of your assignments and deliverables for this class. Please note that the Kellogg schedule
requires that the first class be held on Friday, April 1. However, rather than meet on a second Friday night, as
suggested by the scheduling office (who don’t have to follow these schedules) to make up for no class on Memorial
Day, Class # 10 will be held on Monday, June 6, the first night of finals week, which you would attend if there were a
final exam.
If this presents a problem for any of you, please let me know the first day of class or before. I want to avoid meeting on
a second Friday night if at all possible!
Case questions and other more detailed assignment information will be covered in class. There will be 1-2 informal
brief group meetings during class in which we can confirm Final Project direction together. Some articles in the case
packet will not be discussed in class and I will not cover all the slides provided.
“Blackboard” will be used on a regular basis to post documents such as teaching notes, presentations (yours and
mine) and other documents.
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“Game Plan”
SESSION
Spring 2006 INT MKT 467
DATE
TOPIC
ASSIGNMENT
Mondays
1
March 27
Global Opportunity Assessment “We’ve
got the Whole World!”
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2
April 3
Market Sizing/Timing
Market Access vs. Market Potential
Economic Freedom Index
Culture and cultural audits for products
and markets
Global Market Entry vs. Market
Expansion
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Entry vs. Expansion tradeoffs
Market Development
Global Regions
Global Market Research
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3
April 10
Global Product Development
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4
April 17

Innovation Product Research
New Product Case Histories
Stage Gate Process
Design
Global Distributor Selection and
Management & Channel Pricing
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Channels to country-markets
Channels in country
Market entry importance
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5
April 24
International Pricing
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How to Pay … Get Paid!
Letters of Credit/Wire Transfers
Penetration Strategy
Global Account Management
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Read GM* Chapters1, 2 & 8
Read “Distance Still Matters”
Form teams/exchange contact
information/sync up schedules for
the Final Project: Marketing Plan
Presentation
Honeywell Bull Video
Student survey
Read GM Chapter 3
Read “Entry Strategies for
International Markets”, “Selling to the
Poor” and Global Market Planning
Model and Region and Country
Selection Teaching Notes (TNs)
Case: “Go Global - or No?” (No
hand-in) but be ready for role play
exercise
Hand in hard copy of Best Global
Marketing Practices (1 page memo)
Read “Competing with Giants”
Team Presentations: India Country
Market Report (CMR)
India CMR (hand in hard and soft
copies)
Read GM Chapter 5
Read “Make Your Dealers Your
Partners”, “Seven Rules of
International Distribution” and Global
Marketing Insights (TN)
Case: Loctite, hand-in by only those
assigned (1 page hard copy)
China CMR
Read GM Chapter 6
Read Global Channel Product
Pricing Framework and Developing
Global Marketing Pro Forma P& Ls
(TNs)
Case: MontGras, hand-in memo
Brazil CMR
9
6
Global Marketing Communication
May 1
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Branding and Branding Trends
China and Asia Brands
Non traditional Marcomm
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Read GM Chapter 4
Read “The Top 100 Brands”
Case: P&G SK-II (hand-in)
Japan CMR
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Read “Brand Killers’,” The Return of
the Global Brand and “The Quest for
Global Dominance” (Executive Book
Summary)
Master Card Case (hand-in)
GermanyCMR
Growing Consumerism in Asia
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7
Download of April 29 Allen Center
Program
By country similarities and
differences
Emerging middle classes
Demographic changes
New targets: poor, rural, old, young
Global Marketing Strategy
May 8
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Global Brand Harmonization
Local differentiated brands
Entry vs. Expansion
Event Marketing
P&Ls
Revenue justification (“top down”
vs. “bottoms up”
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Review of past final project plans
presentations and team meetings
SESSION
DATE
8
May 15
TOPIC
Emerging Markets
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9
May 22
Global Marketing Management
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10
June 5
Make up
class for
Sourcing from China
Selling to China
Unique Business Models
Growth strategies
International Sales
Global opportunities
Branding Issues
Final Project Due
Global Marketing Plans Presentations by
Student Teams
ASSIGNMENT
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Read The Great Transition
Read Turning Gadflies into Allies
Grupo Elektra (hand-in)
Review Final Project instructions and
understand Feedback Form for
assessment criteria
Mexico CMR
Read, “What is a Global Manager?”
Read “In Search of Global Leaders”
Read “The Forgotten Strategy”
Read GM Chapter 7
Henkel Case (hand-in)
Team Hand-in: Marketing Strategy
Brief Final Project & in class
discussion of each team’s strategy
Hard copy and CD hand-in: Slides with
speakers’ notes and any exhibits. No limit on
number of exhibits.
10
Memoria
l Day
holiday
Course Summary (TN)
*GM The Mirage of Global Markets, David Arnold, 2004, Pren Hall
Note: I will not usually cover the text material directly nor will I present every slide or discuss in depth every
article in the case packet. It is your responsibility to review all materials and to ask questions and promote
discussion around themes that are of particular interest to you.
Additional articles, teaching notes and copies of presentations will be used to supplement and sometimes replace
materials in the case packet.
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