978-1259709074 Chapter 8 Part 2

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Chapter 8 – Global Marketing Marketing 6th

McGraw-Hill Education.

word in it. They can transfer the story problem 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 guessing the term. If the instructor can solicit a real-time chat, the students

can submit their story problems in advance of the session and the instructor can play the role of

presenting the story problems for the class.

Students do not fully appreciate cultural diversity and location and its impact on the four 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?

Connect Activities

Activity

Type

Learning Objectives 08–

Manager’s Hot Seat

Video Case

Kraft: Marketing Globally

Video Case

Global Entry Strategy

Click & Drag

Country Market Assessment: Starbucks

Click & Drag

Country Market Assessment: Under Armour

Click & Drag

The Globalization of the American Hamburger

Case Analysis

Domino’s Pizza

Video Cast

ISeeIt Video Case: Global Entry Strategies

Video Case

Manager’s Hot Seat

▪ Activity Type: Video Case

▪ Learning Objectives: 08–01

▪ Difficulty: Medium

▪ Activity Summary: This video shows an unsuccessful sales negotiation involving two

businesspeople—one from Japan and one from the U.S.—in which the failure can be attributed to

cultural differences. After the video ends, students are asked questions about the video and related

course concepts.

Activity

▪ Introduction: Michael Sokoloff has assumed responsibility for a new client during the last stage of a

big deal, but he cannot for the life of him figure out why this Japanese businessperson won’t let him

close the deal. Watch as this real manager deals with this difficult situation.

Chapter 8 – Global Marketing Marketing 6th

McGraw-Hill Education.

▪ Concept Review: Understanding another country’s culture is crucial to the success of any global

marketing initiative. Culture, or the set of values, guiding beliefs, understandings, and ways of doing

things shared by members of a society, exists on two levels: visible artifacts (e.g., behavior, dress,

symbols, physical settings, ceremonies) and underlying values (thought processes, beliefs, and

assumptions). Visible artifacts are easy to recognize, but businesses often find it more difficult

recognizing the underlying values of a culture and appropriately adapting their marketing strategies to

them.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activities

Ask students how the company should have handled the situation differently—for example, keeping

Roger involved in order to make an orderly transition (this would be a good idea even in a situation

involving a U.S. customer). It would have been wise for the first meeting between the Japanese

businessman and the new account representative to have taken place in a social setting (with Roger

there as well)—a lunch or dinner, for example.

Kraft: Marketing Globally

▪ Activity Type: Video Case

▪ Learning Objectives: 08–04

▪ Difficulty: Medium

▪ Activity Summary: Reviews Kraft’s global marketing strategy for the Oreo brand, addressing issues

related to each of the Four Ps. After the video ends, students are asked questions about the video

and related course concepts.

Activity

▪ Introduction: At 95 years old, Kraft’s Oreo cookie is the most popular cookie in the world, enjoyed in

more than 100 countries spread across every continent. The Oreo cookie is truly a global product—

but although the Oreo adapts to meet the needs of various countries, it’s still an Oreo.

▪ Concept Review: Globalization refers to the processes by which goods, services, capital, people,

information, and ideas flow across national borders. Global markets are the result of several

fundamental changes, such as reduction or elimination of trade barriers by country governments, the

decreasing concerns of distance and time with regard to moving products and ideas across countries,

the standardization of laws across borders, and globally integrated production processes. Each of

these fundamental changes has paved the way for marketing to flourish in other countries.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activity

Oreo has faced some challenges recently in maintaining its strong brand position in China. Assign this

article, and ask students to summarize the changes it describes to Kraft’s marketing mix for the Oreo in

China:

Chapter 8 – Global Marketing Marketing 6th

McGraw-Hill Education.

http://blogs.wsj.com/chinarealtime/2014/02/13/why-chinas-falling-out–of-love-with-the-oreo/

Global Entry Strategies

▪ Activity Type: Click & Drag

▪ Learning Objectives: 08–03

▪ Difficulty: Medium

▪ Activity Summary: Students are provided with five potential market entry approaches for a coffee

business and asked to match them with the market entry strategy they represent.

Activity

▪ Introduction: A U.S. national coffee chain called Bean is reviewing the various strategies it could use

to enter its first international market in South America. The company is aware that different foreign

market entry strategies offer different levels of control and profit potential, but its executives are

primarily concerned with the risks involved in each strategy. Read about Bean’s various options and

then assemble the foreign market entry risk assessment as instructed.

▪ Concept Review: A firm can choose from several approaches when entering a foreign market. The

specific strategy chosen will vary according to the level of risk the firm is willing to assume. Many

firms follow a progression in which they begin with a less risky strategy to enter their first foreign

market and move to increasingly risky strategies—which usually offer greater profit potential—as they

gain confidence in their abilities.

Follow-Up Activity

Ask students which of the options they think would make the most sense (and why) for:

▪ A large company like Starbucks

▪ A medium-sized company like Peet’s Coffee and Tea

▪ A small-to-medium coffee bean roasting company that sells beans to other coffee companies but

does not run its own stores.

Country Market Assessment: Starbucks

▪ Activity Type: Click & Drag

▪ Learning Objectives: 08-01

▪ Difficulty: Medium

▪ Activity Summary: Students are presented with types of issues Starbucks might consider when

evaluating a market for expansion, and asked to classify them according to the four categories of

factors used to assess global markets. NOTE: This activity is very similar to the Under Armour click

and drag activity, also in this chapter.

Chapter 8 – Global Marketing Marketing 6th

McGraw-Hill Education.

Activity

▪ Introduction: Starbucks Corporation (Starbucks) roasts and retails specialty coffee in stores

operating in over 50 countries. The company’s strength in strategy and the ability to provide honest

quality service has allowed it to enter many markets successfully. However, Starbucks’ entry into

global markets has not always been successful.

▪ Concept Review: Firms must assess the viability of various potential foreign markets before

choosing to enter. Four sets of criteria are necessary to assess a country’s market. They are

economic analysis, infrastructure and technological analysis, government actions or inactions, and

sociocultural analysis. Information about these four areas offers marketers a more complete picture of

a country’s potential as a viable market for products and services.

Follow-Up Activity

For one or more of the BRIC countries discussed in the text, identify potential issues in these four

categories that might make the country a less attractive market for Starbucks.

Country Market Assessment: Under Armour

▪ Activity Type: Click & Drag

▪ Learning Objectives: 08–01

▪ Difficulty: Medium

▪ Activity Summary: Students are presented with types of issues Under Armour might consider when

evaluating a market for expansion, and asked to classify them according to the four categories of

factors used to assess global markets. NOTE: This activity is very similar to the Starbucks click and

drag activity, also in this chapter.

Activity

▪ Introduction: Under Armour is at the forefront of its industry producing performance apparel for men,

women, and youth. The company provides products from everyday wear to just about any sport

activity in virtually all climates and conditions and has made itself known over the past 10 years by

putting quality first for its customers. Headquartered in Baltimore, Maryland, Under Armour continues

to grow as a strong competitor in the industry, with offices located in many areas of the world,

including Denver, Colorado; Toronto, Canada; Hong Kong, China; and London, England. You will be

reviewing some of the steps Under Armour makes when it begins to enter a foreign market.

▪ Concept Review: Firms must assess the viability of various potential foreign markets before

choosing to enter. Four sets of criteria are necessary to assess a country’s market. They are

economic analysis, infrastructure and technological analysis, government actions or inactions, and

sociocultural analysis. Information about these four areas offers marketers a more complete picture of

a country’s potential as a viable market for products and services.

Follow-Up Activity

For one or more of the BRIC countries discussed in the text, identify potential issues in these four

categories that might make the country a less attractive market for Starbucks.

Chapter 8 – Global Marketing Marketing 6th

McGraw-Hill Education.

The Globalization of the American Hamburger

▪ Activity Type: Case Analysis

▪ Learning Objectives: 08-01, 08-03, 08-04

▪ Difficulty: Medium

▪ Activity Summary: Students read a case exploring the way McDonald’s approaches global

expansion. Then they answer questions applying chapter concepts to the case.

Activity

▪ Introduction: When companies expand to other countries, they must decide how to adapt their

marketing strategy to suit the environment in each market. This activity is important because in our

increasingly global business climate, marketers must be able to identify and evaluate different

approaches to global marketing.

Global Marketing: Domino’s Abroad

▪ Activity Type: Video Case

▪ Learning Objectives: 08-01, 08-03, 08-04

▪ Difficulty: Medium

▪ Activity Summary: Domino’s Pizza earns over half its revenue from sales outside the USA. This

video case explores the ways in which Domino’s adapts its marketing strategy in various markets.

After the video ends, students are asked questions about the video and related course concepts.

Activity

▪ Introduction: Domino’s Pizza is the world’s largest pizza delivery chain, with stores in over 80

countries worldwide and over half its sales outside the US. In order to satisfy consumer preferences

in that many markets, Domino’s must understand its global customers and adjust its marketing mix to

meet local needs. The video describes Domino’s marketing efforts in several countries. This activity is

important because marketers must understand how to approach global markets in order to

successfully expand outside the home market. The goal of this exercise is to test your understanding

of global market assessments, global entry strategies, and global marketing strategies.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

ISeeIt Video Case: Global Entry Strategies

▪ Activity Type: Video Case

▪ Learning Objectives: 08–03

▪ Difficulty: Easy

Chapter 8 – Global Marketing Marketing 6th

McGraw-Hill Education.

▪ Activity Summary: This video case reviews different global entry strategies from the perspective of a

coffee company.

Activity

▪ Introduction: When expanding into a global marketplace, companies must select a means of market

entry. The decision between exporting, franchising, a strategic alliance, a joint venture and direct

investment is based upon an organization’s interest in maintaining marketing control and how much of

a financial investment it is willing to make. This holds true for 5 Bucks and Joe to Go, both of which

are coffee retailers that want to enter emerging urban markets in India. 5 Bucks prefers to maintain

greater control afforded by a joint venture and is willing to take on greater financial risk. Joe to Go, on

the other hand, is not as willing to take on high levels of financial risk and is willing to rely on its

franchisees to effectively market and brand Joe to Go in India. Both options require their local

partners to adjust offerings to meet the needs of the local population while maintaining product, look,

and experience similarities across global locations.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.