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Chapter 18 ‒ Global Marketing and R&D
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1. Data on the country and potential market segments (geography, demography,
sociocultural factors, and psychological factors)
2. Data to forecast customer demands within specific country or world region
(social, economic, consumer, and industry trends)
3. Data to make marketing mix decisions (product, distribution, communication, and
price)
International Market Research Steps
The process for conducting international market research typically includes defining the
research objectives, determining the data sources, assessing the costs and benefits of the
The Location of R&D
New product ideas come from the interactions of scientific research, demand conditions,
and competitive conditions.
Integrating R&D, Marketing, and Production
A firm’s new product development efforts need to be closely coordinated with the
• Have members located together
• Establish clear goals
• Develop an effective conflict resolution process
Building Global R&D Capabilities
To adequately commercialize new technologies, firms need to integrate R&D and
marketing.
CRITICAL THINKING AND DISCUSSION QUESTIONS
QUESTION 1: Imagine you are the marketing manager for a U.S. manufacturer of
disposable diapers. Your firm is considering entering the Brazilian market. Your CEO
believes the advertising message that has been effective in the United States will suffice
in Brazil. Outline the possible objections to this. Your CEO also believes that the pricing
decisions in Brazil can be left to local managers. Why might she be wrong?
Chapter 18 ‒ Global Marketing and R&D
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ANSWER 1: While babies’ behinds serve the same function in all cultures, and the
product's technical standards may be similar, sensitivity to bodily functions does vary
across cultures. Thus, the advertising message may need to be changed for different
attitudes towards what is appropriate advertising. Likewise, where it might be progressive
QUESTION 2: Within 20 years, we will have seen the emergence of enormous global
markets for standardized consumer products. Do you agree with this statement? Justify
your answer.
ANSWER 2: One could either choose to agree or disagree, while the best answer would
likely hedge it somewhere in the middle. There are already enormous global markets for
QUESTION 3: You are the marketing manager of a food products company that is
considering entering the Indian market. The retail system in India tends to be very
fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food
companies; these ties make access to distribution channels difficult. What distribution
strategy would you advise the company to pursue? Why?
ANSWER 3: The firm should sell to either wholesalers or import agents. Because the
retail system in India is very fragmented, it would be very expensive for the firm to make
QUESTION 4: Price discrimination is indistinguishable from dumping. Discuss the
accuracy of this statement.
ANSWER 4: In some specific instances this statement is correct, but as a general rule it is
not. When a firm is pricing lower in a foreign country than it is in its domestic market, it
Chapter 18 ‒ Global Marketing and R&D
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Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
than in foreign markets, it can reasonably be concluded that price discrimination rather
than dumping is occurring.
QUESTION 5: You work for a company that designs and manufactures personal
computers. Your company’s R&D center is in Michigan. The computers are
manufactured under contract in Taiwan. Marketing strategy is delegated to the heads of
three regional groups: a North American group (based in Chicago), a European group
(based in Paris), and an Asian group (based in Singapore). Each regional group develops
the marketing approach within its region. In order of importance, the largest markets for
your products are North America, Germany, Great Britain, China, and Australia. Your
company is experiencing problems in its product development and commercialization
process. Products are late to market, the manufacturing quality is poor, costs are higher
than projected, and market acceptance of new products is less than hoped for. What might
be the source of these problems? How would you fix them?
ANSWER 5: The dispersion of activities makes sense—products are produced in the
lowest cost location and marketed by people familiar with local conditions. Yet this
CLOSING CASE: Global Branding, Marvel Studios, and Walt Disney
Company
Summary
The closing case explores how Marvel movie studios capitalized on the popularity of lead
character Tony Stark (and the actor who plays him) in branding its Avengers and Iron
Man franchises. The company also coordinated with parent company Walt Disney
Studios to generate an effective global marketing plan. Discussion of the case can begin
with the following questions.
QUESTION 1: From a global branding standpoint, why do you think Marvel Studios is a
wholly owned subsidiary of the Walt Disney Company instead of just a part of Disney?
ANSWER 1: Responses to this question will vary by student. Some will probably suggest
QUESTION 2: Marvel Comics has drawn from more than 100 characters for its
Avengers superheroes since 1963. Collectively, these characters have created a very
Chapter 18 ‒ Global Marketing and R&D
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successful franchise for Marvel Comics and Marvel Studios. What is their global
marketing formula and why do you think this global marketing works for the company?
ANSWER 2: Marvel pursues a “pull strategy” based on high brand recognition and mass
media advertising by hiring actors and directors with significant international appeal to
QUESTION 3: Many of Marvel Studios movies are connected to each other—like The
Avengers and Iron Man movie franchises. Do you think the film-watching public can
keep up with all these intricate connections? Does it even matter if people do keep up
with the connections (e.g., Tony Stark across so many movies)?
ANSWER 3: Responses to this question will depend on student opinion. Most will
probably suggest that whether people can keep up with the connections between movies
QUESTION 4: What does Marvel Studios gain by having the global branding
connections of the characters across a multiple movie franchise?
ANSWER 4: Marvel recognizes that there are several market segments that may be
interested in its film franchises for different reasons. Comic book readers may not
necessarily be interested in seeing famous actors playing superhero roles. Instead, they
Another Perspective: For more information on the surprising success of Marvel’s film
franchises, go to: {http://www.bbc.com/news/entertainment-arts-32379661}.
Teaching Tip: To extend the discussion on global brands, consider How a Welsh Jeans
Firm Became a Global Cult Brand and Samsonite Sees Opportunities in Brands in Korea,
Europe in the International Business Library at http://bit.ly/MHEIBVideo. Click “Ctrl+F”
on your keyboard to search for the video title.
Chapter 18 ‒ Global Marketing and R&D
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MHE INTERNATIONAL BUSINESS VIDEO LIBRARY
Please click here to visit our International Business Video Library which provides an
ongoing stream of updated video suggestions correlated by key concept and major topic.
Every new clip posted is supported by teaching notes and discussion questions. Please
feel free to leave comments in the library that you feel might be helpful to your
colleagues.
INCORPORATING globalEDGE™ EXERCISES
Use the globalEDGE™ site {globaledge.msu.edu} to complete the following exercises:
Exercise 1
The consumer purchase of specific brands is an indication of the relationship that
develops over time between a company and its customers. Locate and retrieve the most
current ranking of best global brands. Identify the criteria used. Which countries appear
to dominate the top 100 global brands list? Why do you think this is the case? Now look
at which sectors appear to dominate the list, and try to identify the reasons. Prepare a
short report identifying the countries that possess global brands and the potential reasons
for success.
Exercise 2
Part of developing a long-term R&D strategy is to locate facilities in countries that are
widely known to be competitive. Your company seeks to develop R&D facilities in Asia
to counter recent competitor responses. A publication which evaluates economies based
on their competitiveness is the Global Competitiveness Report. Locate this report, and
develop a presentation for the top management team that presents the benefits and
drawbacks for the top five Asian economies listed.
Answers to Exercises
Exercise 1 Answer
Additional Info:
Best Global Brands is an annual ranking that has been published by Interbrand since
Chapter 18 ‒ Global Marketing and R&D
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Exercise 2 Answer
Additional Info:
The Global Competitiveness Report assesses the competitiveness landscape of about 150
economies, providing insight into the drivers of their productivity and prosperity. The
