Chapter 5
Developing a Global Vision
This chapter begins with the learning outcome summaries followed by a set of lesson plans for
instructors to use to deliver the content.
Lecture (for large sections) on page 3
Company Clips (video) on page 5
Group Work (for smaller sections) on page 8
Review and Assignments begin on page 9
Review questions
Application questions
Application exercise
Ethics exercise
Video Assignment
Case Assignment—P&G, Unilever, Panasonic
Great Ideas for Teaching Marketing from faculty around the country begin on page 23
We’ve also created integrated cases that cover the topics in Chapters 1 through 5.
Nestle on page 30
Telekom Austria on page 37
Learning Outcomes
5-1 Discuss the importance of global marketing
Businesspeople who adopt a global vision are better able to identify global marketing
opportunities, understand the nature of global networks, create effective global marketing
strategies, and compete against foreign competition in domestic markets. Large corporations
have traditionally been the major global competitors, but more and more small businesses are
entering the global marketplace. Despite fears of job losses to other countries with cheaper labor,
there are many benefits to globalization, including the reduction of poverty and increased
standards of living.
5-2 Discuss the impact of multinational firms on the world economy
Multinational corporations are international traders that regularly operate across national borders.
Because of their vast size and financial, technological, and material resources, multinational
corporations have great influence on the world economy. They have the ability to overcome trade
problems, save on labor costs, and tap new technology. There are critics and supporters of
multinational corporations, and the critics question the actual benefits of bringing
capital-intensive technology to impoverished nations. Some companies presume that markets
throughout the world are more and more similar, so some global products can be standardized
across global markets.
5-3 Describe the external environment facing global marketers
Global marketers face the same environmental factors as they do domestically: culture, economic
development, the global economy, political structure and actions, demography, and natural
resources. Cultural considerations include societal values, attitudes and beliefs, language, and
customary business practices. A country’s economic and technological status depends on its stage
of industrial development, which, in turn, affects average family incomes. A global marketer
today must be fully aware of the intertwined nature of the global economy. The political structure
is shaped by political ideology and such policies as tariffs, quotas, boycotts, exchange controls,
market groupings, and trade agreements. Demographic variables include the size of a population
and geographic distribution. The distribution of natural resources also affects the external
environment by dictating what is available and at what price.
5-4 Identify the various ways of entering the global marketplace
Firms use the following strategies to enter global markets, in descending order of risk: direct
investment, joint venture, contract manufacturing, licensing and franchising, and exporting.
5-5 List the basic elements involved in developing a global marketing mix
A firm’s major consideration is how much it will adjust the four Ps—product, promotion, place
(distribution), and price—within each country. One strategy is to use one product and one
promotion message worldwide. A second strategy is to create new products for global markets. A
third strategy is to keep the product basically the same but alter the promotional message. A
fourth strategy is to alter the product slightly to meet local conditions.
5-6 Discover how the Internet is affecting global marketing
Simply opening an e-commerce site can open the door for international sales. Global shippers
such as UPS, FedEx, and DHL can help solve logistics problems. Language translation software
can help an e-commerce business become multilingual. Global marketers use social media not
only for understanding consumers but also to build their brands as they expand internationally.
Key Terms
Buyer for export Exporting Joint venture
Capital intensive Floating exchange rates Licensing
Contract manufacturing General Agreement on Tariffs
and Trade (GATT) Mercosur
Countertrade Global marketing
standardization Multidomestic strategy
Direct foreign investment Global marketing Multinational corporation
Dominican
Republic-Central America
Free Trade Agreement
(CAFTA-DR)
Global vision
North American Free
Trade Agreement
(NAFTA)
Dumping Gross domestic product (GDP) Outsourcing
European Union (EU) Group of Twenty (G-20) Uruguay Round
Exchange rate Inshoring World Bank
Export agent International Monetary Fund
(IMF)
World Trade
Organization (WTO)
Export broker
Lesson Plan for Lecture
Brief Outline and Suggested PowerPoint Slides
Learning Outcomes and Topics PowerPoint Slides
LO1 Discuss the importance of global
marketing
5-1 Rewards of Global Marketing and
the Shifting Global Business
Landscape
1. Developing a Global Vision
2. Learning Outcomes
3. Rewards of Global Marketing and the
Shifting Global Business Landscape
4. Global Marketing and Global Vision
5. Gross Domestic Product (GDP)
6. Job Outsourcing and Inshoring
7. Benefits of Globalization
8. Costs of Globalization
LO2 Discuss the impact of multinational
firms on the world economy
5-2 Multinational Firms
9. Multinational Firms
10. Stages of Global Business Development
11. Pros and Cons of Multinationals
12. Global Marketing Standardization
LO3 Describe the external environment
facing global marketers
5-3 External Environment Faced by
Global Marketers
13. External Environment Faced by Global
Marketers
14. External Environment Faced by Global
Marketers
15. External Environment Faced by Global
Marketers (continued)
16. Legal Considerations
17. Legal Considerations (continued)
18. Natural Resources
LO4 Identify the various ways of entering
the global marketplace
5-4 Global Marketing by the Individual
Firm
19. Global Marketing by the Individual Firm
20. Methods of Entering the Global Market
21. Methods of Entering the Global Market
(continued 1)
22. Methods of Entering the Global Market
(continued 2)
LO5 List the basic elements involved in
developing a global marketing mix
5-5 The Global Marketing Mix
23. Global Marketing Mix
24. Four Ps of Global Marketing Strategy
25. Product Decisions
26. Placing, or Distribution
27. Pricing
28. Exchange Rates
29. Dumping
Learning Outcomes and Topics PowerPoint Slides
30. Dumping (continued)
LO6 Discover how the Internet is affecting
global marketing
6.1 The Impact of the Internet
31. Impact of the Internet
32. e-Commerce
33. Key Terms
34. Key Terms
35. Summary
36. Summary
Suggested Homework
The end of this chapter contains an assignment on the Nederlander Organization video and
the Nissan case.
This chapter’s online study tools include flashcards, visual summaries, practice quizzes, and
other resources that can be assigned or used as the basis for longer investigations into
marketing.
Lesson Plans for Video
Company Clips
Segment Summary: The Nederlander Organization
The Nederlander Organization is a theater management company that manages a global network
of Broadway style theaters. In this video clip, top management discusses how the Nederlander
Organization grew from a small midwestern theater management company into a global brand
that helps successful producers move from Broadway to a global tour circuit.
These teaching notes combine activities that (a) you can assign students to prepare before class,
(b) you can do in class before watching the video, (c) you can do in class while watching the
video, and (d) you can assign students to complete on their own after watching the video.
During the viewing portion of the teaching notes, stop the video periodically where it is
appropriate to ask students the questions listed on the grid or perform the activities listed on the
grid. You may even want to give the students the questions before starting the video and have
them think about the answers while viewing the segment. That way, students will be engaged in
active viewing rather than passive viewing.
Pre-Class Prep For You Pre-Class Prep For Your Students
Preview the Company Clips video segment
for Chapter 5. This exercise reviews
concepts for LO1, LO3, and LO5.
Review your lesson plan.
Stream the video HERE.
Have students familiarize themselves with
the following terms and concepts: global
marketing, global vision, and multinational
corporation.
Have students explore the various parts of
the Nederlander Organization’s Web site:
http://www.nederlander.com/.
Video Review Exercise
Activity Teaching Method
Warm Up
Begin by asking your students the following questions:
Without looking, which of you knows (or is confident that you know)
where your backpack was made? Where?
Who was right? Who was wrong?
Who cares where their backpack was made?
(For students who raise their hands to the last question, push them to answer
why.)
In-class
Preview
Segue into a lecture that centers around these questions: “What is global
vision?” and “Why is global marketing imperative for businesses?”
Review the negatives and benefits of global trade and what it means to be
a multinational company.
Illustrate the factors of the external environment.
Review the Company Clips questions with students. They should be
prepared to answer them after viewing the video.
Viewing
(Solutions
below)
1. Is the Nederlander Organization a multinational company? Explain.
2. Which environmental factor(s) facing all global marketers is the Nederlander
Organization confronting as it begins to expand into foreign markets?
3. Outline the Nederlander Organization’s global marketing mix.
Follow-up
Spark a debate in class by asking students to respond to the following
statement: “Any company can benefit by going global.”
Have students use the Internet or the Yellow Pages to identify a retail store
with international partners or shipping policies. Students should then e-mail
or call the company and ask the manager or sales personnel to describe a
difficulty they have overcome in implementing their global marketing
strategy. Ask students to be prepared to share their research at the next class
meeting.
Solutions for Viewing Activities
1. Is the Nederlander Organization a multinational company? Explain.
The Nederlander Organization has direct investment in the United Kingdom, where it owns
theaters and acts as a producer and landlord for plays and concerts. The Nederlander
Organization must choose successful Broadway shows to produce and lease the theaters to,
which depends on the company understanding what translates well into British culture.
2. Which environmental factor(s) facing all global marketers is the Nederlander
Organization confronting as it begins to expand into foreign markets?
The economic development, culture, and demography of some international markets make
it less feasible to consider producing certain shows there.
3. Outline the Nederlander Organization’s global marketing mix.
By expanding into the United Kingdom, the Nederlander Organization did not face a
language barrier or much of a cultural barrier, so their product, place, and promotion mix
are similar to that in the United States and, to be cost-effective to do business with the
United Kingdom, price points must be acceptable to both parties.
Lesson Plan for Group Work
In most cases, group activities should be completed after some chapter content has been covered,
probably in the second or third session of the chapter coverage. (See the “Lesson Plan for
Lecture” above.) For “Class Activity—Reverse International Marketing,” divide the class into
small groups of four or five people. Provide the information and the questions asked by the class
activity.
Class Activity—”Reverse” International Marketing
The outcome of this exercise is to get students to understand first-hand the challenges of
marketing internationally. Students won’t understand what they’re doing wrong if they take an
American product and hypothetically market it to a foreign country. So, they will do “reverse”
international marketing by taking a foreign product and marketing it in the United States. (As
U.S. consumers themselves, they’ll understand what foreign firms have done wrong in marketing
their products in the United States.)
Before this class session, you should shop for some products made by foreign firms. You can
either have friends in foreign countries send you these products or buy them yourself at a
local grocery store that sells foreign products. Possibilities include ethnic grocery stores
(such as Latino stores or Japanese food stores) or chains such as Cost Plus or Pier One that
import inexpensive products from other countries. When selecting products, try to get ones
that are amusing and have obviously been poorly marketed in terms of packaging, brand
name, or general lack of appeal to U.S. consumers. Bring the items to class.
Divide the class into groups of four or five students. Give each group one of the products, and
explain that they are the foreign marketers of these products and should put together a
strategy for marketing the products in the United States. They have the opportunity to keep
the product, package, and so forth, the way it is or to change it completely. They should
consider the additional costs associated with changing them. The groups should create
strategies in the areas listed below.
1. Target market: Who should be the target market in the United States? What variables will be
used to select the target market?
2. Product: Will any adaptation be made to the product features? What about the packaging?
The brand name?
3. Price: What is a good retail price for the product?
4. Promotion: How will the product be communicated to the target market? What promotional
message will be used? What media will be used to reach the target market?
5. Distribution: Where will the product be sold?
After each group is finished, have them share their ideas with the class. You’ll be surprised at
how creative and entertaining this exercise is!