8-1: The European Union (EU) Group activity: Brainstorm about how the
introduction of a single currency affected various
marketing aspects in the EU.
The conversion to the Euro presented serious
concerns for marketers, most of which have been
resolved.
But in France, retailers still list prices in both
Euros and the now defunct French Franc, which
allows consumers, especially older consumers, to
make better purchasing decisions.
Since the Euro is used across all EU countries, it
makes pricing a challenge. Many items do not
sell for the same price across the EU.
Will different Euro prices irritate consumers?
However, having one currency across all EU
countries does facilitate trade.
For instance, tourists across the EU find it easier
to gauge value when everything is priced in
Euros.
8-2: Analyzing Sociocultural Factors Perhaps no other aspect of globalization has
posed more difficulties to marketers than culture.
Outsiders often have trouble understanding the
detailed meanings associated with proper
communication in a foreign culture.
8-3: Country Clusters Hofstede’s cultural dimensions offer an effective
understanding of the subtle elements of a culture.
Taken together, these dimensions enable
marketers to group countries together according
to their similarity on these dimensions and
therefore engage in more efficient planning.
Ask students: How would you characterize
American culture on these dimensions?
How would you characterize other cultures with
which you are familiar?
8-4: Country Clusters Hofstede’s cultural dimensions offer an effective
understanding of the subtle elements of a culture.
The person in the picture is gathering as much
information as possible in order to make the best
decision.
8-5: The Appeal of the BRIC Countries Perhaps the greatest change facing the global
community in recent years has been the growth
and expansion of four countries that together
have come to be known as the BRIC countries:
Brazil, Russia, India, and China.
8-6: Check Yourself 1. The general economic environment, the
market size and population growth rate, and
real income.
2. Tariffs, quotas, exchange controls, and trade
agreements
3. Cultural Dimensions include power distance,
uncertainty avoidance, individualism,
masculinity, and time orientation
4. Brazil’s ability to weather, and even thrive
during, the most recent economic storm, has
transformed it into a global contender. Russia
has undergone multiple up- and downturns in
its economy. However, its overall growth
prospects appear promising, especially as a
consumer market. With more than 1.1 billion
people, or approximately 15 percent of the
world’s population, together with expanding
middle and upper classes, India is one of the
world’s fastest growing markets. China’s
leadership, while maintaining communist
political ideals, has embraced market-oriented
economic development, which has led to
startlingly rapid gains.
8-7: Choosing a Global Entry Strategy Ask students: Why do you think most firms try
exporting first? In each strategy, the risks and
rewards change.
As risk increases, so do the potential rewards.
Exporting represents the lowest risk level for the
firm.
Group activity: Divide into groups that represent
different firms.
Each group should outline its product offering
and the entry strategy it would choose for its
global strategy.
Ask students: Why is your chosen entry strategy
appropriate for your offering?
What criteria did you use to determine your
strategy?
What risks does your strategy entail, and are the
potential rewards worth those risks?
8-8: Check Yourself 1. Exporting requires the least financial risk but
also allows for only a limited return to the
exporting firm. Global expansion often begins
when a firm receives an order for its product
or service from another country, in which
case it faces little risk because it has no
investment in people, capital equipment,
buildings, on infrastructure.
2. Direct investment requires a firm to maintain
100 percent ownership of its plants, operation
facilities, and offices in a foreign country,
often through the formation of wholly owned
subsidiaries. This entry strategy requires the
highest level of investment and exposes the
firm to significant risks, including the loss of
its operating and/or initial investments
8-9: Choosing a Global Marketing
Strategy: Target Market (STP)
Adjusting the marketing mix and positioning
strategy to meet the needs of a new market may
represent the most complex topic for global
marketing.
Chapter 9 discusses segmentation, targeting, and
positioning in greater detail.
Group Activity: Divide the class into groups.
Have them choose a product that they want to
introduce into another country. (It may be the
same product/firm they used in previous group
activity.)
Have students consider how they would adapt
their positioning strategy in the new country.
8-10: The Global Marketing Mix:
Product or Service Strategies
Ask Students: What products are the easiest to
standardize?
What makes these products easy to standardize?
Products at the extreme ends of high tech (i.e.,
electronics, computers, software versus paper and
pencil) or high touch (i.e., luxury goods, jewelry
versus staple products) continuums are easy to
standardize, but those in the middle generally
require varying levels of adaptation to local
markets.
8-11: Global Marketing Mix: Pricing
Strategies
In addition to competitive, cost, and other
considerations, global pricing involves additional
dimensions that increase its complexity.
8-12: Global Marketing Mix: Global
Distribution Strategies
Delivering products to local retailers can be
incredibly difficult and frustrating. Infrastructure
issues often prevent traditional distribution
methods and require creative adjustments.
Global firms must find distribution strategies that
enable them to reach even really remote markets.
For instance, Avon sells and delivers cosmetics to
customers using canoes.
This example could also prompt an ethical
discussion on whether or not firms should be
marketing hedonic products or services to
consumers with very little disposable income.
This YouTube ad (always check link before class)
is for FedEx and shows how international
distribution can be difficult for many companies.
8-13: Global Marketing Mix: Global
Communication Strategies
Ask students: How do firms market their
products in countries with very low literacy
levels?
Imagine you are promoting a new soft drink.
How would you do it without written
communication?
8-14: Spanish Ad Ask students: Given your awareness of Spanish
culture, why might this ad be effective?
How is it different than a U.S. ad?
The answer is that it is not that different at all.
8-15: Check Yourself 1. Determining the target markets to pursue and
developing a marketing mix that will sustain a
competitive advantage over time.
2. Global product strategies:
a. Sell the same product or service in both
the home country market and the host
country.
b. Sell a product or service similar to that
sold in home country but include minor
adaptations.
c. Sell totally new products or services.
Additional Teaching Tips
In this chapter, students are exposed to global product development, distribution, and marketing
strategy. Students evaluate the similarities and differences between a domestic marketing
strategy and a global marketing strategy. Ethical consideration and cultural diversity are
addressed as they impact the marketing message.
Students will be re-introduced to business terms such as quota, various trade agreements, joint
venture, GNP, GDP, etc. To review these terms before discussing the concepts in the chapter,
the instructor may want to exercise a challenge similar to the Jeopardy game.
Divide students into 4 or 5 groups of equal size. The instructor writes down 3-4 terms from the
chapter on 4 or 5 note cards. The group then takes the word and writes a story problem without
the word in it. They can transfer to a transparency. One group presents each of their story
problems while the other groups (with one person being the spokesperson for the group) try to
determine the term. The group earns one point if they get the story problem correct. They also
can lose a point if they get it wrong and the next spokesperson’s hand that goes up (acting like a
buzzer) gets a chance to answer. Instructors can award the winning group with +2 points on a
quiz or exam. This “livens-up” content that is heavily laden with vocabulary.
Online Teaching Tip: This exercise can be transferred to a post situation with a term assigned to
each student and fellow students determining the term. If the instructor can solicit a real-time
chat, the students can submit their word problems in advance of the session and the instructor
plays the role of presenting the story problems for the class.
Students do not fully appreciate cultural diversity and location and its impact on the 4 Ps until
they study a country and are assigned related questions to answer. Instructors may want to make
this an assignment with students turning to the Web for research. Questions asked may be:
What social customs may impact the way a product is marketed? Are there barriers to the
distribution system? Is the product use in the country consistent with the home country or do
they differ and why? Will language barriers present a problem?