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DISCUSSION QUESTIONS
1-1. What are the basic goals of marketing? Are these goals relevant to global marketing?
Marketing activities represent an organization’s efforts to satisfy customer wants and
needs by offering products and services that create value. These goals are relevant in
1-2. What is meant by “global localization?” Is Coca-Cola a global product? Explain.
The phrase “global localization” represents an attempt to capture the spirit of the rallying
cry for organizations in the 21st century, namely, “think globally, act locally, and manage
1-3. A company’s global marketing strategy (GMS) is a crucial, competitive tool. Describe
some of the global marketing strategies available to companies. Give examples of companies that
use the different strategies.
This question invites reference to Table 1-5. Strategies include global branding (Coca-
Cola, Marlboro), product design (McDonald’s restaurants and menu items), positioning
1-4. UK-based Burberry is a luxury fashion brand that appeals to both genders and all ages. To
improve Burberry’s competitiveness in the luxury goods market, CEO Angela Ahrendts recently
unveiled a new strategy that includes all the elements of the marketing mix. Their strategy also
addresses key markets that Burberry will participate in, as well as the integration and
coordination of marketing activities. Search for recent articles about Burberry and write a brief
summary that outlines Burberry’s GMS.
1-5. Discuss the differences between the global marketing strategies of Harley-Davidson and
Toyota?
Harley-Davidson motorcycles are known the world over as “the” all-American
motorcycle. Harley’s mystique and heritage are associated with America. The company
1-6. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentric
management orientations.
The premise of an ethnocentric orientation is that home country products and
management processes are superior. An ethnocentric company that neither sources inputs
without adaptation, products designed for the domestic market.
The polycentric orientation that predominates at a multinational company leads to a view
of the world in which each country market is different from the others. Local country
and geocentric orientations are characteristic of global transnational companies.
1-7. Identify and briefly describe some of the forces that have resulted in increased global
integration and the growing importance of global marketing.
The dynamic involving driving and restraining forces is shown diagrammatically in
Figure 1-1. Driving forces include regional economic agreements such as NAFTA,
converging market needs and wants, technology advances such as the Internet and global
1-8. Define leverage and explain the different types of leverage utilized by companies with
global operations.
Webster’s New World Dictionary defines “leverage” as an “increased means of
accomplishing some purpose.” A global company can take advantage of several types of
1-9. Each July, Fortune publishes its Global 500 listing of the world’s largest companies.
You can find the current rankings online at: www.fortune.com/global500. Alternatively, you can
consult the print edition of Fortune. Browse through the list and choose any company that
interests you. Compare its 2014 ranking with the most recent ranking. Has the company’s
ranking changed? Consult additional sources (e.g., magazine articles, annual reports, the
company’s Web site) to get a better understanding of the factors and forces that contributed to the
company’s move up or down in the rankings. Write a brief summary of your findings.
1-10. There’s a saying in the business world that “nothing fails like success”. Take Gap, for
example. How can a fashion retailer that was once the source for wardrobe staples such as
chinos and white T-shirts suddenly lose its marketing edge? Motorola has also fallen victim to
its own success. The company’s Razr cell phone was a huge hit, but Motorola struggled to
leverage that success. Now, Google owns Motorola Mobility. Also, Starbucks CEO Howard
Shultz recently warned that his company and brand risk becoming commoditized. And, as noted
in Case 1-3, some industry observers are saying that Apple has “lost its cool”. If you were to
make separate recommendations to management at each of these companies, what would you
say?
Each student’s answer will vary but their answers should incorporate such terms as global
marketing, marketing mix strategy, value chain, V = B/P, strategic focus, global
CASES
Case 1-1: The Global Marketplace: The Assignment
Answers given in the text book.
Case 1-1 Discussion Questions
1-11. Anheuser-Busch, which has been described as “an American icon,” is now under the
ownership of a company based in Belgium. Responding to reports that some consumers
planned to boycott Bud products to protest the deal, one industry observer said, “Brand
nationality is all about where it was born, and also the ingredients of that beer and how they
make the beer: Basically, it doesn’t matter who owns it. We are in a global world right now”.
Do you agree?
Students answers will vary based on their agreement or disagreement with this
statement. Good students will introduce key words like ethnocentric, polycentric,
1-12. Anheuser-Busch, (A-B) has long enjoyed a reputation as a very desirable place to work.
Executives were awarded well-appointed corporate suites and traveled on corporate jets; many
had secretaries as well as executive assistants. When managers took commercial flights, they
flew first class. Most employees received beer for free and could count on donations of beer
and merchandise for community events. Tickets to Cardinal home games were also used as a
marketing tool. A-B spent heavily on advertising and promotion; various advertising agencies
produced about 100 new ads for A-B each year. Given these facts, what changes, if any,
would you expect A-B’s new owners to make? Why?
Student answers should explain the differences in / among / between the different
management orientations and compare and contrast the ethnocentric orientation of A-B
1-13. In 2009, Italy’s Fiat acquired a 20 percent stake in Chrysler, another iconic American
company. Are you familiar with Fiat? What do you think CEO Sergio Marchionne hope to
accomplish with this deal? How might Chrysler benefit from the alliance?
CEO Sergio Marchionne hopes to turn Fiat into a transnational company serving
global markets and utilizing global supply chains. His strategy might be to turn Fiat
1-14. Ben & Jerry’s Homemade is a quirky ice cream marketer based in Burlington, Vermont.
Founders Ben Cohen and Jerry Greenfield are legendary for enlightened business practices
that include a three-part mission statement: product mission, financial mission, and social
mission. When the company was acquired by consumer products giant Unilever, some of the
brand’s loyal customers were alarmed. What do you think was the source of their concern?
The form and substance of a company’s response to global market opportunities
depends greatly on the management’s assumption or beliefs. In this case, Ben & Jerry
Case 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe
Overview: Today, McDonald’s golden arches are one of the most recognized symbols in the
world, just behind the Olympic rings. While growth within the U.S. has slowed, the picture
outside the U.S. has appeared brighter, until recently. However, globally, taste profiles and
consumer desires are changing. McDonald’s has responded to these changes by altering their
basic products (when necessary) to fit the requirements of the local markets. While not always
successful, it has proven to be a winning strategy.
1-15. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular,
how does McDonald’s approach the issue of standardization? Does McDonald’s think global and
act local? Does it also think local and act global?
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
With McDonald’s offering of local tastes and a combination of American fare,
1-16. Do you think government officials in developing countries such as Russia, China, and India
welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or why
not?
Despite concerns by governments and citizens in some countries about “cultural
imperialism,” McDonald’s and other franchises with well-known brand names are
McDonald’s does a good job of earning the support of local authorities and the local
1-17. Is it realistic to expect that McDonald’s – or any well-known company – can expand
globally without occasionally making mistakes or generating controversy? Why do anti-
globalization protesters around the world frequently target McDonald’s?
McDonald’s has a reputation for being sensitive to local issues and mentalities.
According to the staff director for international human resources in Central Europe, “One
Another issue is to maintain the service attitude that was a cornerstone of McDonald’s
1-18. Assess the changes McDonald’s is making to its marketing strategy in the United States
and around the world.
McDonald’s executives intend to create a modern, streamlined environment that will
encourage customers to stay longer and spend more. They have included more salads
CASE 1-3: Apple versus Samsung: The Battle for Smartphone Supremacy Heats Up
Overview: Apple’s reputation was based on its proven ability to disrupt existing markets and
create new markets with technical and design innovations. In some circles the launch of the
iPhone 5 was viewed as an evolution, rather than a revolution. Samsung makes several versions
of their Galaxy S 4 to suit the needs of different markets, Apple does not. In India, the number
three smart-phone market, Apple lags far behind Samsung, offering an Android phone for about
$ 100. Indian consumers pay $ 500 for an iPhone 4 and about $ 850 for the iPhone 5.
1-19. Do you own a smartphone? If so, which brand did you buy, and why?
1-20. In 2013, Apple introduced the iPhone 5c to attract consumers who were not willing or able
to pay a premium for an Apple device. The price was about $100 less than the top of the line 5s.
Was this the right pricing decision?
Yes this is a correct decision. This is the only way Apple was able to compete in the
1-21. Do you think Apple can continue to grow by developing break-through products that create
new markets, as it did with the iPod, iPhone, and iPad?
Apple needs to embrace the concept of formal market research. Steve Jobs downplayed
the importance of this concept saying that consumers don’t know what they want.
1-22. How has Samsung’s global marketing strategy enabled it to compete so effectively against
Apple?
In many developing countries, there is a strong demand for inexpensive mobile phones.
Some Android-based models from Android models from Samsung sell for much less than
1-23.Assess the prospects for the global success of Apple Pay and Apple Watch.
Apple Pay and Apple Watch will be game changers for their competition. These
