Chapter 5 ♦ Developing a Global Vision 5-15
One way would be to establish relationships with international lighting wholesalers. Another would be to use
4.2 Explain how the U.S. Commercial Service can help companies wanting to enter the international market.
The U.S. Commercial Service, of the U.S. Department of Commerce, has trade specialists in more than 100 U.S.
cities and 150 overseas offices to help exporters increase their business. The service can help with marketing,
4.3 What are some of the advantages and potential disadvantages of entering a joint venture?
Advantages of joint ventures over other forms of expansion are that they can be relatively inexpensive, since
4.4 Why is direct investment considered risky?
5.1 The sale of cigarettes in many developed countries either has peaked out or is declining. However, the
developing markets represent major growth markets. Should U.S. tobacco companies capitalize on this
opportunity?
Students should argue the ethical implications of exporting cigarettes. Some will argue that it makes sense to move
5.2 Describe at least three situations where an American company might want to keep the product the same but
alter the promotion. Also, give three examples where the product must be altered.
A company may want to keep the product the same and alter the promotion when the needs for the product are
5.3 Explain how exchange rates can affect a firm’s global sales.
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The exchange rate is the price of one country’s currency in terms of another country’s currency. If a country’s
6.1 Describe how “going global” via the Internet presents opportunities and challenges.
Many an entrepreneur has believed that it is simple to go global on the Internet. But going global—even from
your computer chair—presents both opportunities and challenges. Some opportunities are that you can reach a
6.2 Give several examples of how culture may hinder “going global” via the Internet.
Culture can present lots of challenges on the Internet. First, you may have to translate your Web site into
Supplemental Exercise: Group Work
Review and Applications
Review and Application Questions 3.5 and 4.1 lend themselves well to group work. For those activities, divide the class
into small groups of 4-5 people. Each group should read the question and then use their textbooks, or any work that was
completed previously, to perform the exercise. Then each group should discuss or present their work to the class.
APPLICATION EXERCISE
Purpose: To be effective as a marketer, it is important to know geography. How will students be able to decide whether
Chapter 5 ♦ Developing a Global Vision 5-17
Setting It Up: Follow the links at www.clickandlearn.com to find blackline maps. Blackline maps are geographical
outlines with space for labeling. Click and Learn offers blackline maps in great variety. You can begin the exercise by
requiring students to locate countries (or even states) on the maps. One possibility is to move into a longer assignment, as
featured below.
This application exercise was inspired by the following Great Ideas in Teaching Marketing:
Gregory J. Baleja
Alma College
INTERNATIONAL MARKETING: A MAP QUIZ
When discussing international marketing, it is always interesting to investigate the amount of knowledge that
American college students have about any country outside of the United States.
To make the students’ task easier, I provide them with a list of all the European countries involved (aided recall). To
make sure they legitimately try to fill in all of the correct countries, I state that the quiz will be graded. Later, I inform the
students that the quiz was, in fact, graded, but that the scores were not recorded.
Over the last few years, the average number of countries MISSED has totaled approximately 14.38 out of 27
possible European countries listed (an error rate of 53.25%). The number of countries MISSED has ranged from 0 to 26
(to date no student has missed all 27 countries).
A number of students comment when seeing their actual scores, saying that they would have performed much better
if they were quizzed on something more familiar, like the United States. Thus, to accommodate their request, during the
next class period I distribute a quiz on the lower 48 states. For this map quiz the students are not provide with a list of
states (unaided recall). The average number of states WRONG has averaged 13.76 out of 48 (an error rate of 28.6%)
during the last few years. Familiarity seems to help improve the scores, but not totally.
Some unique answers to both quizzes are listed below. Students have told me, for example:
The purpose of these quizzes is to reinforce exactly how little American students know about the world in general. I
ask the students how they can make a conscious business decision about locational alternatives when they don’t even
know where Czechoslovakia is, or for that matter, the state of Kansas. In my most recent Basic Marketing class of 46
students, 43% of them were unable to place Kansas in its correct geographical position. In addition, 35% missed placing
William C. Moncrief
Texas Christian University
USING GEOGRAPHY IN THE INTERNATIONAL MARKETING CLASS
My strong belief is that students should have some sense of geography when studying international marketing. The
first day of class I put a world map on the overhead and ask them to identify 25 countries (France, China, Japan, etc.).
The results as might be expected are abysmal. Most students indicate that they have never studied geography or they
were so young as to be non-interested.
My goal is to give them some geographical knowledge and to make it fun. Several years ago, I was given a board
game called Where in the World. The game has a card for every country in the world and gives information such as
capital, chief export, chief import, religion, language, currency. I have put all of this information on a handout along with
maps of Europe, Asia, Africa, and North and South America. Groups of 5 are formed for a geography competition. On an
announced day we have the geography bowl with 6 to 8 groups competing. Typically, the students have divided up the
world so that two students within the group are “experts” on a particular continent. I shuffle the approximately 200 cards
class).
The game becomes very competitive and the amount of information learned is phenomenal. It is rare that a group
misidentifies a country and usually they can name the capital. In about half the cases, they even can come up with
exports, imports, currency, and language.
As midterm I give an exam with a map in which the students must identify 20 “significant” countries and capitals
that are active in the international markets. The results are impressive. In my last two classes, exactly 50% of the class
ETHICS EXERCISE
1. What should Moore do?
2. Review the Foreign Corrupt Practices Act online at http://www.justice.gov/criminal/fraud/fcpa. Write a
brief paragraph on what this statute contains that relates to Moore’s dilemma. Some American
executives think this law causes American corporations to suffer a competitive disadvantage. Do you
agree? Why or why not?
The Foreign Corrupt Practices Act is an anti-bribery control. According to the act, it is unethical and illegal to
MARKETING PLAN EXERCISE
Purpose: Students will use the following exercises as a guide for the next part of the strategic marketing plan.
Chapter 5 ♦ Developing a Global Vision 5-19
1. Assume your company is or will be marketing globally. How should your company enter the global marketplace?
How will international issues affect your firm?
2. If you choose an Internet presence, your product or service will be visible to a global community. Assess the
international marketplace for your particular offering. A listing of international chambers of commerce is at
CASE STUDY
P&G, Unilever, Panasonic: The $2-A-Day Initiative
1. Which of the five methods for entering foreign markets did many multinational firms originally use for
reaching the $2-a-day consumer, and how did they do so?
Many multinational firms have tried exporting simplified versions of products designed in their home countries.
2. Which of the five methods for entering foreign markets are many multinational firms now using for
reaching the $2-a-day consumer, and how are they doing so?
Many efforts such as those by P&G and Panasonic to reach this consumer would fall under direct foreign
3. Discuss some features of promotion that many companies are using to market to the $2-a-day consumer.
Getting consumers in this market to adopt new products can be particularly difficult. Potential customers may
LESSON PLAN FOR VIDEO
Company Clips: Method—Global Beginnings
In the twenty-first century, startups can become global businesses much faster than in anytime in history. So, while new
companies are forging their way domestically, they may also experience an added layer of challenges from trying to
enter global markets at the same time. In this final video segment on method, founder Eric Ryan and CEO Alastair
Dorward describe their company’s perspective on global expansion and which foreign markets represent good
opportunities for method.
Solutions for Viewing Activities (also for the Company Clips questions in the textbook):
1. Is Method a multinational company? Explain.
With strategic partners in the UK and Canada, method is indeed an international company, in stage one of
5-20 Chapter 5 ♦ Developing a Global Vision
2. Which environmental factors facing all global marketers is Method confronting as it begins to expand
into foreign markets?
3. Outline Method’s global marketing mix.
By beginning its global marketing in Canada and the UK, method did not face a language barrier or much of a
4. What is innovative about how Method envisions moving into foreign markets? Would Method’s strategy
for global expansion work for other companies or industries? Which ones? Explain.
Method intends to target multinational retailers, not necessarily countries, as global partners. A multinational
Supplemental Exercise: Video
Company Clips
These teaching notes can be assigned for students to prepare before class, in-class before watching the video, during
class while watching the video, or after students watched the video.
During the viewing portion of the teaching notes, stop the tape periodically where appropriate to ask students the
questions or perform the activities listed on the grid. You may even want to give the students the questions before
starting the tape and have them think about the answer while viewing the segment. That way, students will be engaged in
active viewing rather than passive viewing.
Pre-Class Prep for You:
• Preview the Company Clips video segment for Chapter 5. This exercise reviews concepts for LO1, LO3, and LO5.
• Review your lesson plan.
• Make sure you have all of the equipment needed to show the video to the class, including the DVD and a way to
project the video.
Pre-Class Prep for Students:
• Have students familiarize themselves with the following terms and concepts: global marketing, global vision, and
Video Review Exercise Activity
• Warm Up – Begin by asking your students the following questions:
“Without looking, which of you know (or is confident that you know) where your backpack was made? Where?”
“Who cares where their backpack was made?”
o For students who raise their hands to the last question, push them to answer why.]
• In-Class Preview
o Segue into a lecture that centers around these questions: “What is global vision?” and “Why is global
marketing imperative for businesses?”
Chapter 5 ♦ Developing a Global Vision 5-21
• Follow-up
o Spark a debate in class by asking students to respond to the following statement: “Any company can
benefit by going global.”
o Have students use the Internet or Yellow Pages to identify a premium retail store, such as those mentioned
5-22 Chapter 5 ♦ Developing a Global Vision
Supplemental Exercise: 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
into the U.S. (As U.S. consumers themselves, they’ll understand what foreign firms have done wrong in marketing
their products to the U.S.)
Before this class session, you should shop for some products made by foreign firms. You can either have friends in
Divide the class into groups of 4-5 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 into the U.S. They
have the opportunity to keep the product, package, etc., the way it is or to change it completely. They should
consider the additional costs associated with changing. The groups should create strategies in the following areas:
1. Target market: Who should be the target market in the U.S.? What variables will be used to select the target
market?
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!
GREAT IDEAS FOR TEACHING CHAPTER 5
James S. Cleveland, Sage College of Albany
DISCUSSION BOARD TOPICS TO ENCOURAGE PARTICIPATION
Discussion board questions provided to students to encourage them to engage in thinking and writing about the
content of the Principles of Marketing course usually take the form of a provocative statement to which students are
asked to respond. An example of this would be: All PR is good PR.
Chapter 5 ♦ Developing a Global Vision 5-23
1. First, there is a sentence or two from the students’ textbook introducing the topic. By using the text author’s own
words, students are enabled to locate relevant material in the text more easily, the text content is reinforced, and
confusion resulting from use of variant terms or expressions is minimized.
Series A
1. No longer just an option, global marketing—marketing that targets markets throughout the world—has become
an imperative for business.
Series B
1. A company that is heavily engaged in international trade, beyond exporting and importing, is called a
John L. Beisel, Pittsburg State University
FORCING INTERNATIONAL COMMUNICATION
Students from other countries who are studying in the United States bring with them a rich cultural heritage and
perspective that most American students seldom bother to learn about. In fact, many American students rarely even take
the opportunity to talk to an international student during their college years, even though they have sat in class with them
time after time. I have had international students tell me upon graduation that they regret the fact that they never became
friends with an American student.
I decided to force communication between the two groups at every opportunity in my classes. In my International
Marketing course, the students are divided up into teams consisting of four students, and each team is assigned a country.
Their task: to develop a plan for marketing a specific consumer product to their assigned country, in 25 pages or less.
5-24 Chapter 5 ♦ Developing a Global Vision
Each team also created a brand name and a package design. A pricing policy was decided on, as well as a
promotional strategy. Common distribution channel alternatives were named, and entry alternatives (i.e., licensing,
David J. Brennan, Webster University—St. Louis, Missouri
IT’S NOT FUNNY MONEY!
In teaching International Marketing it is important for American students to develop a knowledge of foreign
currencies. For marketing students, this need not be a detailed financial knowledge but simply an awareness of a few key
Country Currency Symbol
Example: USA Dollar/cent $ US
Australia __________[Dollar/Cent] _____[$AUS]
Belgium __________[Franc] _____[Bf]
Canada __________[Dollar/Cent] _____[$CD]
These, as well as other countries and their respective currencies, can be found in the foreign exchange listings in the
Financial Section of the Wall Street Journal. This listing provides the country, its major currency and foreign exchange
values for the previous two business days in terms of foreign currency value in $US, and $US in terms of value in the
foreign currency. If possible, it is also useful to go to a local bank and get (buy a few foreign currency bills (£, DM, Ff,
$CD) for class.
Several aspects of foreign currencies, as they may apply to marketing students, can be raised during class discussion.
These could include:
• Some currencies have similar names, i.e., Dollar: U.S., Canada, Hong Kong; franc: France, Belgium,
Switzerland but all have very different values.
Chapter 5 ♦ Developing a Global Vision 5-25
✓ The British pound (£) is worth more than the U.S. dollar ($US): 1 £ = 1.91 $US or 1 $US = .52 £ (52
pence)
• Changes in foreign currency values in terms of the U.S. dollar can impact international business. A good
example of that is of the Japanese yen (¥). In 1987, 1 $US was worth (bought) approximately 250 ¥ while in
Jacqueline J. Kacen, University of Michigan-Dearborn
CROSS-CULTURAL MARKETING: TAKING THE BRAND LOCAL?
What must international and cross-cultural marketers think about when introducing products into foreign markets?
Instead of focusing on familiar U.S. products being introduced into a new foreign market, this exercise has students
introduce a foreign product into the U.S. This exercise works well as an in-class exercise, a group project, or an
individual homework assignment.
I also bring in the product in to class students can see it in its “original” form. By using a food product such as
Vegemite, students also actually taste the product; thus, better understanding and appreciating its composition. (Note:
most American students hate the taste of Vegemite, so I also provide soft drinks and pieces of candy to students so they
can “cleanse their palates”).
The background information on the product and the taste experience provide students with enough information to
Andrew Banasiewicz, Louisiana State University
GLOBALIZING THE THINKING OF BUSINESS STUDENTS
During the last decade, we have seen a strong emphasis being placed on providing business students with a more
global orientation. To accommodate this, we need to make the students realize that being raised in a particular culture
results in their “business perceptions,” as employed in a particular context, being not only a function of the actual
attributes, but their respective cultural background as well. I have devised a simple exercise aiming at forcing students to
5-26 Chapter 5 ♦ Developing a Global Vision
they judged most culturally dissimilar. Due to the fact that the product under consideration is rather hard to compare on
its functional attributes, the students are forced to base their ratings on their culturally based attitudes.
Having collected all that information, I then group the lists of the most culturally similar and dissimilar cultures.
Then I divide students into groups where each of the groups has a specific country or region assigned to it. The groups
are usually composed of about four students who are paired and matched in such a way that two of the students have
listed their group’s country as one which they believe to be most similar to their own country, while the other two listed
Part 1 ♦ The World of Marketing – Solutions 27
PART 1 – SOLUTIONS
SOLUTIONS TO MARKETING MISCUES
Concerns over Sustainability result in Social Media Disaster for Nestlé
1. How could Nestlé have handled the situation differently? Should the company have simply shut down
its Facebook page?
Most students will agree that the employee in charge of Nestlé’s Facebook fan page really instigated the
2. While the KitKat candy bar was at the original heart of the issue, what other products/companies are
owned by Nestlé? Could these products be affected by the KitKat social media fiasco?
been affected. Product categories and brands include:
• Baby foods (Cerelac, Gerber, Naturnes, Nestum)
SOLUTIONS TO CRITICAL THINKING CASE
Telekom Austria Group: Sustainability to Increase Value
28 Part 1 ♦ The World of Marketing – Solutions
1. How will Telekom Austria’s commitment to the triple bottom line (planet, people, profit) provide
value to the company’s bottom line?
When it comes to sustainability, the “bottom line” is comprised of two components: corporate social
performance and corporate financial performance. However, the financial world and shareholders tend to assess
performance on the corporate financial performance metric. Thus, it is imperative that Telekom Austria be able
2. Much is discussed about customer service within the context of sustainability at Telekom Austria.
Why is customer satisfaction included in the topic of sustainability?
In the 21st century, corporate social responsibility in innovative companies improves customer satisfaction in
companie, which then leads to improved financial performance. Thus, many companies include topics of