Download the pennsylvania state university at harrisburg

THE PENNSYLVANIA STATE UNIVERSITY AT HARRISBURG
THE CAPITAL COLLEGE
Middletown, Pennsylvania
School of Business Administration
MRKT 587.1
FALL 1998
Class Time: T 6:00 – 8:30 PM
Class Room: E-339
Office Hours: T,TH: 2:00 – 3:30 PM
T,TH: 4:45 - 6:00 PM
T: 8:30 – 9:00 PM
(Other times when I am in my office
& by appointment)
Instructor: Dr. Erdener Kaynak
Office: E-355D, Olmsted Building
Office Phone: 948-6343
(After 6 PM knock on E-351 Hall Door)
Residence Phone: 566-6586
(In Emergency Cases Only)
E-Mail: [email protected]
GLOBAL MARKETING
MAIN TEXT:
Warren J. Keegan, Global Marketing Management, Prentice Hall, Englewood Cliffs, NJ, 1995, 5th Edition,
828 pages.
SUPPLEMENTARY TEXTS:
Svend Hollensen, Global Marketing: A Market Responsive Approach, Prentice Hall, Europe, 1998, 604
pages.
Erdener Kaynak, (Ed.), Global Business: Four Key Marketing Strategies, International Business Press, NY,
1994, 432 pages.
Brian Toyne and Peter G. P. Walters, Global Marketing Management: A Strategic Perspective, Allyn and
Bacon, Boston, 1989, 747 pages.
A Coskin Samli; Still and J. S. Hill, International Marketing: Planning and Practice,, MacMillan Publishing
Company, NY, 1993, 456 pages.
Sak Onlvisit and John J. Straw, International Marketing: Analysis and Strategy, 2nd Edition, MacMillan
Publishing Company, NY, 1993, 905 pages.
Warren J. Keegan, Global Marketing Management, Englewood Cliffs, NJ, Prentice Hall Inc., 1989, 783
pages.
Sudhash S. Jain, International Marketing Management, 4th Edition, Wadsworth Publishing Company,
Belmont, CA, 1993, 912 pages.
Vern Terpstra and Ravi Sarathy, International Marketing, 5th Edition, Chicago, IL, Dryden Press, 1991, 714
pages.
Erik Wiklund, International Marketing, Making Exports Pay Off, McGraw-Hill Book Company, NY, 1989,
218 pages.
MRKT 587.1
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SUPPLEMENTARY TEXTS:
Simon Majaro, International Marketing: A Strategic Approach to World Markets (Revised Edition), George
Allen & Unwin, London, 1982, 307 pages.
Philip R. Cateora, International Marketing, (Seventh Edition), Richard D. Irwin, Inc., Homewood IL, 1993,
776 pages.
Collin Gilligan and Martin Hird, International marketing Strategy and Management, Croom Helm, London,
Dover, NH, 1986, 310 pages.
V. H. Kirpalani, International Marketing, Random House Publishing, NY, 1985, 662 pages.
Erdner Kaynak, Transnational Retailing, Walter de Gruyter Co., Berling and NY, 1988.
Erdener Kaynak, World Food Marketing Systems, Butterworth Scientific Publishers, London, 1986.
Erdener Kaynak, Marketing in the Third World, Praeger Publishers, Inc., NY, 1982.
Erdener Kaynak, Comparative Marketing Systems, Praeger Publishers, Inc., NY, 1983.
Erdener Kaynak, International Marketing Management, Praeger Pulishers, Inc., NY, 1985.
Erdener Kaynak, International Business in the Middle East, Walter de Gruyter Co., Berlin and NY, 1986.
Erdener Kaynak, Global Perspectives in Marketing, Praeger Publishers, Inc., NY, 1986.
Erdener Kaynak, Service Industries in Developing Countries, Frank Cass & Co., London, 1985.
Erdener Kaynak, International Advertising Management, Quorum Books, CT, 1989.
Erdener Kaynak and Kam-Hon Lee, Global Business: Asia Pacific Dimensions, Routledge, London, 1989.
Erdener Kaynak, Marketing and Economic Development, Praeger Publishers, Inc., NY, 1986.
Denise M. Johnson and Erdener Kaynak (eds) Marketing in the Third World, International Business Press,
NY, 1996, 126 pages.
SCHOLARLY JOURNALS OF INTEREST:
Journal of International Consumer Marketing, Journal of International Business Studies, Journal of
Marketing, Journal of World Business, Management International Review, Journal of International
Consumer Marketing, Journal of the Academy of Marketing Science, California Management Review,
Business Horizons, Harvard Business Review, Journal of Business Research, International Management,
Journal of Global Marketing, Long Range Planning and Sloan Management Review (only those journals
which are available at Heindel Library are listed).
PRACTITIONER-ORIENTED PERIODICALS OF INTEREST:
Business Week, The Wall Street Journal, Time, Newsweek, Fortune, Marketing News, Business Marketing,
Advertising Age and Forbes.
MRKT 587.1
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COURSE DESCRIPTION:
This course is a systematic treatment of marketing on a global scale. The course will focus on six key
areas:







A conceptual overview of global marketing
How to analyze, understand, and be more effective in the global marketing environment
Targeting global markets
Sourcing and global production strategy
Formulating global marketing strategies
The global marketing mix
Managing and leading the global marketing effort
The objective of the course is to develop your knowledge and understanding of the global marketing
environment and of concepts and tools, and theory that will prepare you to take responsibility for successful
global market penetration of your organization. The perspective of the course is managerial: i.e. the ability
to identify opportunity, resolve problems, and implement solutions and programs.
This course will provide graduate students with an understanding of marketing planning and strategy from
a global perspective. The world should be viewed as a marketplace with a resulting need for familiarity
with various environmental similarities and differences. These may necessitate adaptation and/or
standardization of marketing programs, strategies and plans from nation to nation. A major focus of this
course will be on strategic marketing management techniques, issues, strategies and problems within a
global marketing framework. As well, an understanding and appreciation of world cultures, socioeconomic, and legal/political conditions which have a profound effect on a US firm’s target market
selection and marketing strategy development, will be established.
COURSE OBJECTIVES:
Upon completion of this course, graduate students will acquire the following:
1.
Understand and appreciate the role of global marketing in the highly interrelated and competitive
world markets.
2.
Become familiar with socio-economic, cultural, political and legal environments in the globalizing
markets.
3.
Develop the skills and understanding needed to make marketing decisions in the global market
place in regard to product policy, pricing strategy, channels of distribution and promotional
programs and organizational arrangements.
4.
Learn skills needed to overcome visible and invisible trade barriers, which hinder U.S. firm’s
performance in global markets.
5.
Learn to develop lucrative market segments overseas and carry out marketing research to find out
needs and wants of foreign customers.
6.
Develop marketing plans, organizational set-ups, and control procedures and mechanism for global
markets.
MRKT 587.1
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GRADING PROCEDURE:
The course will have a lecture, case, short incidents, and important global marketing issues discussion
format. Each student is expected to be prepared to discuss all cases and issues assigned during the term. In
addition to class participation, each student will be graded on his/her performance on case
presentations/critiques, short incidents, term project and a mid-term exam.
Although attendance is not mandatory, it is strongly recommended that students do not miss classes since
class participation and discussions can be an important component of the course grade. Students are
strongly urged to contact the instructor ahead of time for possible delays in meeting deadlines.
Since there are no perfect solutions to the cases assigned, student will be graded on: (a) organization, (b)
understanding, (c) originality of ideas and solution alternatives, (d) breadth and depth of coverage of the
issues, (e) clarity of exposition, and (f) thoroughness in integration of the multiple components of the case.
Students will be expected to avoid the common errors listed on the last page of this syllabus in their
analyses of the cases. The grading procedure will be:
GRADING:
One Issue Project
One Individual Case
*Case Presentation and Discussion
15%
15%
10%
Class Participation and
In-Class Discussions
Term report assignment
10%
Final Open Book Exam
25%
100%
25%
(6-8 pages written report)
(8-10 pages written report)
(5% presentation and
5% discussion)
(15-20 pages written report
prepared by each student)
(15% each)
*Please submit two copies of each assignment.
COURSE OUTLINE
Date
Topics
Assignments
PART ONE: CONCEPTUAL OVERVIEW
September 1
September 8
Introduction to Global Marketing
Course objectives and methodology, overview of the international
marketing management process; the case analysis framework; the
international economy and the national interest; the scope of global
marketing activities.
Read which company is transnational?
pp. 2-27
Global Marketing Planning
The company in the world clustering, segmentation and target
marketing environmental sensitivity, stapes theory, global marketing
plan
Case 1: Euro Disney in Trouble
pp. 28-64
pp. 65-66
pp. 67-75
MRKT 587.1
Date
Page 5
Topics
Assignments
PART TWO: THE GLOBAL MARKETING ENVIRONMENT
September 15
September 22
September 29
Economic Environment
Economic systems, making development consumption patterns, trade
Patterns, trade patterns, the global environment
Case 2: Club Med, Inc.
Issue 2
Social and Cultural Environments
Analytical approaches to cultural factors, buyer behavior and cultural
dynamics in assessing world markets, business customs and practices
in world marketing, negotiation techniques
Case 3: Choufont-Salva, Inc.
Issue 3
Legal and Regulatory Environment
Home country related aspects, host country related aspects, bribery
and corruption, regulatory agencies and institutions
Case 4: Yiyang Wine Company (to be distributed)
Issue 4
pp. 76-116
pp. 199-209
pp. 296-312
pp. 150-174
PART THREE: TARGETING GLOBAL MARKETS
October 6
October 13
Global Marketing Information systems and research
International marketing information systems, information analysis,
cross-national consumer research problems
Case 5: Kodak versus Fuji
Issue 5
pp. 225-256
Global Segmentation, Targeting and Positioning
Market segmentation, researching world markets, multinational
markets, developing world markets, regional market characteristics
Case 6: Odysseus, Inc.
Issue 6
pp. 257-295
pp. 675-690
pp. 427-439
PART FOUR: FORMULATING GLOBAL MARKETING STRATEGY
October 20
October 27
Sourcing Decisions and the Value Chain
Sourcing and the trade cycle
Sourcing strategy alternatives
Case 7: Metro Corporation
Issue 7
pp. 326-347
pp. 579-611
Strategy Alternatives for Global Market Entry and Expansion
Exporting, licensing, joint ventures, minority, majority and
wholly-owned subsidiaries, management contracts, turn-key projects,
swap and other exchange arrangements.
Case 8: Richardson Manufacturing Company, Inc.
Issue 8
pp. 348-368
pp. 420-426
pp. 395-419
pp. 698-721
MRKT 587.1
Date
Page 6
Topics
Assignments
PART FIVE: GLOBAL MARKETING MIX
November 3
Product Decisions
pp. 445-505
New product planning and development for multinational marketing;
profitability analysis for product mixes and product lines, test-marketing,
product management, product audits; the international product life cycle;
attitudes toward foreign products; product strategy alternatives.
Case 9: Hot shot to Japan
pp. 642-650
Issue 9
November 10
Pricing Strategy Decisions:
Multi-product, multi-country pricing, export pricing; pricing in an
inflationary environment; intra-corporate transfer pricing; legal aspects
of international pricing; product line pricing in international markets;
cross-price elasticity of product lines for international markets.
Case 10: Ito-Yokado Company, Ltd.
Issue 10
pp. 506-533
November 17
Distribution and Channel Strategy Decisions:
Channel strategies for new market entry; distribution alternatives and
channel selection, channel constraints, channel conflict in international
distribution, international logistics.
Case 11: IKEA in the USA (to be distributed)
Issue 11
pp. 534-552
November 24
Global Promotion and Communication Strategy Decisions:
International advertising strategy alternatives, the standardization
vs. adaptation controversy, optimization of the multinational
advertising mix, international promotion methods.
Case 12: Parker Pen Co. (to be distiruted)
Issue 12
pp. 553-578
pp. 651-674
PART SIX: ORGANIZATION, PLANNING AND CONTROL OF
GLOBAL MARKETING ACTIVITIES
December 1
December 8
Organization and Control of the Global Marketing Program
Multinational market planning; grouping world markets for product
strategies; structure, product diversification and size; patterns of
international organizational development; multinational
communications and control
Case 13: Grasse Fragrances SA
Issue 13
pp. 722-760
The Future of Global Marketing:
Global marketing in a nationalistic world; the multinational company
and national sovereignty; codes of conduct for global companies
multinational marketing in a world of resource cartels; the future of
world economic integration and common markets.
Issues 14 and 15
pp. 764-771
pp. 663-641
MRKT 587.1
Date
Page 7
Topics
December 11
Assignments
Classes End
PLEASE NOTE: TAPING OF LECTURES WITHOUT AUTHORIZATION IS STRICTLY FORBIDDEN.
GLOBAL MARKETING ISSUES ASSIGNMENT
Please choose one of the following issues and prepare a managerially-oriented report, suggesting ways and means
of exploring international markets. In your analysis, you are expected to use actual company examples. Although
it is a practical type of an exercise, your are also expected to demonstrate your theoretical knowledge of global
marketing. Needless to say, that proper and accurate referencing and footnotes will be expected.
ISSUES TO CHOOSE FROM:
International Marketing Research (October 6)
International Target Market Analysis (October 13)
Product Differentiation and Product Positioning for International Markets (November 3)
How to Enter Into European Union (October 27)
Global Marketing, Planning (September 8)
Managing Global Channels of Distribution (November 17)
Pricing for Global Markets (November 10)
Strategic Alliances (October 20)
Global Communication Strategy (November 24)
Organization of the Global Marketing Effort (December 1)
Global Economic Environment (September 15)
Global Socio-Cultural Environment (September 22)
Global Legal Political Environment (September 29)
TERM REPORT ASSIGNMENT
A major assignment in this course is the research project. The topic of your project must be approved by the
instructor. Projects incorporating field data (i.e., data from company files, databanks, government agencies,
interviews with executives, consumers, etc.) are preferred although analytical reports based on published sources of
information are acceptable. The key requirement of this project is that it contains analytical content. The following
constraints and rules will apply:
1.
From the following list, select a topic of interest that will advance your career or assist you in achieving
your objectives.
a.
The global marketing audit. Design a marketing audit that a company can use to determine where
it is in the Kaynak typology of the stages of development of the global company and what it should
do with the information.
The article by Kaynak, “Global Marketing: Theory and Practice” outlines stages of evolution of a
company. From domestic to international to multinational to global. Locate a company (or
companies) in this typology to identify its past position, present position, and future direction of
development. Focus specifically on the company’s marketing strategy (target markets, positioning,
and marketing mix strategy), financial strategy, manufacturing or sourcing strategy, and structure.
How has the strategy evolved, what changes have been made, and why?
MRKT 587.1
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The thesis of the Kaynak paper is that every company should be a global corporation. How does
this apply to the company you have studied. Specifically, what changes should the company make
to improve its performance and effectiveness.
b.
The report should be typed, doubled spaced. It should not exceed 25 pages, including tables,
graphs, exhibits and appendices. It is due on the last day of class.
c.
Research proposal project. You are required to submit two (2) copies of a typed research project
proposal. The proposal should:
1.
2.
3.
4.
5.
6.
State the problem or topic you plan to investigate, and your “working title”. (This may be
changed for the completed report),
Describe the objective of your report,
Identify your sources of data,
Briefly describe your proposed method of investigation, i.e., interviewing, company files,
library research, etc.,
Describe any planned data analysis,
Indicate your expected findings. This proposal will be reviewed and approved by the
instructor. An approved proposal will be returned to you and MUST be included with your
report. DUE DATE: Five weeks after the first class meeting. Length: max. – 2 pages,
min., 1 page.
d.
The report will be due on the last day of the term. All reports will be kept on file by the instructor.
If you wish to have comments on your report in addition to a grade, please include a self-addressed
envelope. Comments and your grade will be returned to you in this envelope. If you would prefer
to have comments made directly on your report, please submit a duplicate copy of your report
plainly marked “Duplicate – to be returned to author with comments” and addressed mailing
envelope.
e.
Reports will be graded and evaluated strictly on quality and not on quantity. One important aspect
of quality is brevity and economical presentation. Quality is achieved when reports are
authoritative, well organized and written, creative, accurate, well documented and interesting.
Reports are authoritative when they are focused and based on a thorough survey of published
information and/or a survey of people who have knowledge and experience on the reported topic.
f.
The format of each report will depend on the style and objective of the author(s). Every paper
must, however, include the following:
1.
2.
3.
4.
5.
6.
7.
8.
Title page: author, course name and number, date, and author’s address and phone, fax and
e-mail numbers.
Term report proposal with instructor’s approval.
Acknowledgments – Indicate your sources of help and assistance. (For example, if you
interviewed executives in XYZ company, acknowledge their help by listing their name and
title.)
Table of contents. (The topic headings, appendices, etc.)
Executive summary. (The essence if your report summarized in a maximum of two pages).
This is an important part of your report and should receive great care and attention.
Identify your topic, summarize your data, your analysis and your conclusions and
recommendations.
Introduction. (The focus of your report, an overview of your methods of investigation, etc.)
The body of the report. (Data analysis and interpretation)
Conclusions and/or recommendations.
MRKT 587.1
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9.
10.
g.
Footnotes and bibliography. (All sources of data and references must be fully cited using a
standard format of orderly presentation and documentation. (A Manual for Writers of
Term Papers, Theme and Dissertations, by Kate L. Turbian, University of Chicago Press, is
an excellent guide.)
Reports should be typewritten and double-spaced on one side of the paper.
General Requirements and Comments
1.
2.
The use of charts, tables, drawings, graphs, etc. is highly recommended. Try as much as
possible to clarify and simplify your report with visual aids.
Oral presentation. The last two class sessions will be devoted to oral presentations. You
will be given an assigned date and time for your presentation. You should rehearse so that
you can report and leave time for questions in your assigned time period. You are
expected to participate in presentation and evaluations of the other presentations. Your
evaluations will be given to each presenting team.
COMMON ERRORS ENCOUNTERED IN STUDENT CASE REPORTS
(Please try to avoid these)
1.
Students simply repeat and rehash data provided in the case.
Use data, don't just give it back.
2.
Some students conclude that the data are inadequate and no decision may be reached. It is better to use what
you have or get more from the library or from data banks and from company sources.
3.
Failure to deal adequately with numbers.
If you are given numerical data, be sure to analyze them using quantitative analysis procedures such as trend,
cross-classification, pricing, cost break-even and margin analyses, and other methods you know.
4.
Failure to pursue analysis to a logical conclusion.
Don't stop halfway through; cover all the important issues. Remember that your analysis of the data is more
important than the solution you recommend or the conclusions at which you arrive.
5.
Failure to organize report adequately.
Reports should begin with a short problem statement, move to an analysis section with appropriate headings
and subheadings, and end with a set of specific recommendations. Some students simply string together a
series of random compound sentences. This is not acceptable. Your analysis should flow and have continuity
and it must be logical and consistent.
6.
Failure to be decisive.
This is especially important when you are making your final recommendations. Also, when you encounter
conflicting data, don't hedge, state your assumptions and fly with them. A bad decision is better than no
decision.
MRKT 587.1
7.
Page 10
Excessive grammatical errors.
Avoid incomplete and awkward sentences. Pay particular attention to your sentence structuring. Be careful
with tense; avoid the use of I, we, it. Once a student employs those words they are often overused. Also,
avoid colloquial expressions. Do not shorten words.
8.
Failure to read report after it is typed.
Correct all grammatical errors and be sure all pages and tables are included in the proper order. Submit a
clean and tidy report. Don't forget that you are portraying an image of yourself through your written report.
9.
Late submission of assignments.
Be punctual in handing in the assignments. Don't forget that we are all relying on you on that day. Your
delay, or worse, no show, will disrupt the class and can have a detrimental effect on your final grade.
INTERNATIONAL MARKETING
CASES: PURPOSE, USE, AND GUIDE TO ANALYZING THEM
There are essentially two different approaches to education. If one polarizes the issue, one approach presupposes that
education should consist of accumulating important pieces of knowledge in classified and systematized form. It
teaches accepted truths. The other approach presupposes that education consists of acquiring the ability to act in the
presence of new experience. It is concerned with precedents only so far as they lead to initiative.* It regards the
power of thinking and not the acquisition of facts as the ultimate educational ideal. In our dynamic, fast-changing
global environment, emphasis on the latter approach is necessary. The case itself consists of a problem or situation
that the organization in question has to solve in some way.
Cases act as a substitute for experience. The teacher must develop an appreciation among students of the complexity
of modern business problems. The student must place, or be taught to place, himself or herself mentally in a position
of responsibility when proposing solutions to the problem if that is not his or her natural bent. The process of learning
must switch from one in which the teacher lectures and the student passively absorbs to one in which teacher and
student are partners in a joint process of learning and the teacher, in part, acts as a catalyst.
In analyzing an international marketing case, the following questions are listed as a guide to the student:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What are the objectives of the organization or group involved?
What is (are) the major problem(s)?
What are the chief subproblems?
What are the pertinent pieces of information contained in the case?
What are all the feasible alternatives for a solution to the problem(s) and subproblems?
What information not contained in the case would you like to have to aid in selecting from the various
possible solutions? Is this additional information worth obtaining from a time and cost viewpoint? How
would you use this information?
How would you go about obtaining this additional information? What specific research tools, if any, would
you use?
What assumptions are you making in the face of the unavailable information? What is the reasoning behind
these assumptions?
What are all the advantages and disadvantages of each feasible solution?
Which alternative would you finally choose and why?
Given the chosen alternative, what plan of action would you recommend as optimal?
The format for international marketing case analysis is stated below.**
MRKT 587.1
1.
Page 11
Analysis of the Situation
Do not restate the case. Emphasize only the information that you think is critical to your decision process.
Two levels of analysis are useful. The first, the macro level, attempts to understand the structure of the
international marketing situation for all the firms involved. The second, the micro level, looks at the position
of each firm in the particular situation, and at the strategy of each.
1.1
Macro Level. (Country Level Analysis): Nature of the market (region, country, market segment(s), and subsegment(s) including uncontrollable factors such as:
-Environment: economic, cultural, social, technological, political, and legal
-Market size
-Consumer segments and their wants or needs
-Product segments
-Channels of distribution
-Other relevant macro factors pertaining to the case.
1.2
Micro Level. (Company Level Analysis): Current marketing objectives of each competitor firm:
Current strategy: Target market, Product, Promotion, Place (distribution), and Price
Strengths and weaknesses of each competitor
2.
Identification of the Problem and/or Opportunity
It is obviously crucial to identify the main problem correctly; since the case solution focuses on whatever has
been stated as the problem. One tip that has proved to be helpful is to identify whatever subproblems may
exist, then to check if all subproblems relate to the main problem. If they do not then it is worthwhile to think
again whether the main problem as stated is the correct one.
3.
Identification and Evaluation of Alternative Strategies
Make sure alternative strategies are complete and consistent, and discuss pros and cons of each one in point
form. Only realistic options should be presented. In some cases, decisions may have to be made to reduce the
number of alternatives. Also state any reasonable assumptions you are making where you lack information.
4.
Recommended Strategy with Justifications
Elaborate on the alternative(s) that you think is/are best for the firm to use in the immediate future.
5.
Suggested Plan for Implementation of the Proposed Strategy
This includes timing, organizational change, and other issues critical to your carrying out the proposed course
of action.
*
Arthur Stone Dewing, "An Introduction to the Use of Cases," in the Case Method of Instruction, Cecil E.
Fraser, ed. (New York: McGraw-Hill Book Company, Inc., 1971).
**
Partially adapted from K. L. McGown's class notes (Montreal, Quebec, Canada, Concordia University, 1984).
MRKT 587.1
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TERM ASSIGNMENT TOPICS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Objective setting for global marketing
Market potential/opportunity analysis
Researching foreign markets
Impact of global environmental factors
Global product policy/strategy
Global pricing policy/strategy
Global advertising policy/strategy
Global distribution policy/strategy
Control of global marketing activities
Market entry modes in to global markets
Cultural environment of global markets
Organizational arrangements for global marketing
Emerging trading blocs and their impact on US global trade
North American Common Market and it marketing implications
US-China trading relationship and it s marketing implications