• Export opportunities for countries with abundant resources
• Stimulus for military intervention
Examples: Two earth elements, scandium and terbium, are used in everything from
4. Global Marketing by the Individual Firm (LO 5-4, PPT Slide 37, DISC: International
Perspective)
a. Companies decide to “go global” for a number of reasons:
• To earn additional profits by gaining access to new markets
• To benefit from unique products or technological advantages not available to
other international competitors
PRESENTATION VISUAL: Exhibit 5.2 Risk Levels for Five Methods of Entering the
Global Marketplace
c. Exporting: The least complicated method of entering the global market is usually
exporting, which involves selling domestically produced products to buyers in other
countries. China is currently the world’s largest exporter, with the United States and
Germany close behind. Global trade supports about 36 million U.S. jobs, and
exports support over 10 million jobs. The U.S. Commercial Services, part of the
Department of Commerce, helps U.S. businesses export goods and services to
markets worldwide. Instead of selling directly to foreign buyers, a company may use
one of the following types of intermediaries:
• Buyer for export – an intermediary in the global market that assumes all
ownership risks and sells globally for its own account
d. Licensing and Franchising: Other ways to enter the global market are through
licensing and franchising. Licensing is the legal process whereby a licensor allows
another firm to use its manufacturing process, trademarks, patents, trade secrets, or
other proprietary knowledge. A licensor must make sure it can exercise sufficient
e. Contract Manufacturing: Firms that do not want to become heavily involved in
global marketing may engage in contract manufacturing, which is private-label
f. Joint Venture: When a domestic firm buys part of a foreign company or joins with a
foreign company to create a new entity, they have formed a joint venture. Often,
joint ventures are the only way a government will allow a foreign company to enter
its country. Global joint ventures are potentially very lucrative, but also potentially
very risky. Companies may not agree on management strategies and policies.
g. Direct Investment: Foreign direct investment occurs when a business in one
country invests in a business interest in another country. This investment usually
Example: Facebook has been blocked on China’s Internet since 2009. Even though
Facebook has begun developing technology that can block or remove content that
5. The Global Marketing Mix (LO 5-5, PPT Slide 45, DISC: International Perspective)
a. The first step in creating a marketing mix is developing a thorough understanding of
the global target market. Often this knowledge can be obtained through the same
types of marketing research used in the domestic market. However, global
marketing research is conducted in vastly different environments. In some
• Product Invention: Entering a foreign market can mean either creating a new
product for a market or drastically changing an existing product.
Examples: More than 100 unique Pringles potato chip flavors have been invented
• Product Adaptation: An alternative to product invention is to alter a basic product
to meet local conditions and tastes.
Examples: In India, L’Oral, Procter & Gamble, and Unilever have adapted the size
c. Promotion Adaptation: In some cases, marketers can maintain the same basic
product but alter the promotional strategy. International marketing managers must
take into consideration language barriers, translation problems, and cultural
differences. Because consumer values like hedonism (getting as much pleasure out
of life as possible) and personal power vary enormously in importance across
countries, promotions that position products on these variables should also vary by
country.
Example: When Procter & Gamble started selling its Pampers diapers in Japan, it
d. Place (Distribution): International marketers may have to modify where products
are sold to ensure adequate distribution.
Examples: In France, Reebok sells more athletic shoes through traditional shoe
e. Pricing: Pricing presents some unique problems in the global sphere. Exporters
must not only cover their production costs but must also consider transportation
costs, insurance, taxes, and tariffs. Marketers need to determine how much
• Exchange Rates: The exchange rate is the price of one country’s currency in
terms of another country’s currency. If a country’s currency appreciates, less of
that country’s currency is needed to buy another country’s currency. If a
country’s currency depreciates, more of that currency will be needed to buy
another country’s currency.
Example: If the U.S. dollar depreciates, the prices of Japanese goods rise for U.S.
• Currency markets operate under a system of floating exchange rates, meaning
prices of different currencies move up and down based on the demand for and
• Dumping: The sale of an exported product at a price lower than that charged for
the same or a like product in the “home” market of the exporter is known as
dumping. Dumping may occur as a result of exporter business strategies that
include:
• Dumping is regarded as a form of price discrimination that can potentially harm
the importing nation’s competing industries. However, some trade economists
view dumping as harmful only when it involves the use of “predatory” practices
that intentionally try to eliminate competition and gain monopoly power in a
a. Opening an e-commerce site on the Internet immediately puts a company in the
international marketplace. The Internet` has been especially beneficial to global
[return to top]
Discussion Questions
You can assign these questions several ways: in a discussion forum in your LMS; as whole-
class discussions in person; or as a partner or group activity in class.
1. Discussion: (LO 5-1, PPT Slides 10–11) Duration 5-10 minutes.
a. Guide students on a discussion of global marketing and the shifting global
business landscape by asking the following:
• What is meant by “having a global vision”?
• Why is it important?
• Can you provide two or three examples of brands you believe have a global
vision?
i. A global vision allows businesspeople to identify global marketing
2. Discussion: (LO 5-2, PPT Slides 16–17) Duration 5-10 minutes.
a. Guide students on a discussion of global business and multinationals by asking
the following:
• Isolationists have suggested that the United States would be much better off
economically and politically if we just “built a wall” around the country and
didn’t deal with outsiders. Do you agree? Why, or why not?
i. Students’ answers will vary, but an interesting answer might include a
3. Discussion: (LO 5-5, PPT Slides 56-57) Duration 10–20 minutes.
a. Guide students on a discussion of global marketing mixes by having them pick a
familiar product. Have them imagine they are the marketers of this product that
they are planning to take global and ask:
• How would your answer change for developing nations? Why?
i. Students’ results will vary depending on the products they have
ii.
[return to top]
Additional Activities and Assignments
A generic discussion and writing rubric is provided in the Appendix.
1. Activator Exercise: Going Global (LO 5-1)
Purpose: To introduce students to the factors involved in going global.
Classroom Format: Group discussion and presentations
(Estimated Time: 20-30 minutes)
1. Divide the class into groups of four or five.
2. Ask each group to think of a company of their choice that would like to
expand its operation in a foreign country. Encourage groups to choose a
Online Format: Discussion board with posted response from each student
(Estimated Time: 20-30 minutes)
1. Use the following prompt to facilitate this activity in a discussion board.
Think of a company of your choice that would like to expand its operation
in a foreign country. Tip: For the purpose of this exercise, it would be
least three factors.
2. Have students respond to classmates’ posts by offering constructive
feedback on their analyses and possibly add more factors to consider.
Instructor Manual: Lamb/Hair/McDaniel, MKTG 13E, 9780357127810; Chapter 5: Developing a Global Vision
Additional questions for a classroom or discussion board: How would you get
the word out to customers in the new market? How would you physically make and
ship products for customers in the new markets? Would you make any changes to
the product?
Result: Students will usually realize there are a number of complexities involved
2. Class activity: (LO 5-3)
Format: This activity can be facilitated in both a classroom and an online
environment. Instructions for how to facilitate the activity in the classroom and
online are provided below. (Estimated time: 25-35 minutes)
Classroom Format: Ask students to divide up into groups of three or four. Ask each
group to think of a company of their choice that wants to expand its operation in a
Online Format: If you’re delivering your course online, you can have students do
this on their own and have them post their answers in a discussion board. Use the
following prompt to facilitate this activity:
Think of a company of your choice that wants to expand its operation in a foreign
3. Class activity (LO 5-4)
Instructor Manual: Lamb/Hair/McDaniel, MKTG 13E, 9780357127810; Chapter 5: Developing a Global Vision
Format: This activity can be facilitated in both a classroom and an online
environment. Instructions for how to facilitate the activity in the classroom and
online are provided below. (Estimated time: 10-20 minutes)
Classroom Format: Divide students into groups of three or four. Instruct them
to select one of the world’s largest fast–food franchises (McDonald’s, KFC, Taco
Online Format: If you’re delivering your course online, you can have students
do this on their own and have them post their answers in a discussion board.
Use the following prompt to facilitate this activity:
Select one of the world’s largest fast–food franchises (McDonald’s, KFC, Taco Bell,
4. Class activity (LO 5-5)
Format: This activity can be facilitated in both a classroom and an online
environment. Instructions for how to facilitate the activity in the classroom and
online are provided below. (Estimated time: 20-30 minutes)
Classroom Format: Divide the class into groups of three or four. Ask them to use a
retail website like Cost Plus World Market or Amazon to identify an obviously
• Target market: Who should be the target market in the United States? What
variables will be used to select the target market?
• Product: Will any adaptation be made to the product features? What about the
packaging? The brand name?
Online Format: If you’re delivering your course online, you can have students do
this on their own and have them post their answers in a discussion board. Use the
following prompt to facilitate this activity:
Use a retail website like Cost Plus World Market or Amazon to identify an obviously
foreign-made product that is being sold in the United States. (Tip: Food products work
well for this activity.) Now imagine you are the marketing manager for the product you
have chosen. Write a post describing the marketing mix you’ll use to re-introduce your
product into the U.S. market. Be sure to answer the following questions:
• Target market: Who should be the target market in the United States? What
variables will be used to select the target market?
5. Additional activity: Globalization and Cultural Exchanges (LO 5-3)
Purpose: To highlight the cultural shifts that have resulted from economic
globalization.
Background: During the past 25 years, the United States has been accused with
Relationship to Text: External Environment Faced by Global Marketers
Estimated Class Time: About 10 to 20 minutes
Classroom Format: Have students divide into groups of three or four to complete
the following steps:
1. Use the Internet to find at least three examples of products, ideas, or
traditions that have been imported into the United States from some
Online Format: Discussion board with posted response from each student
(Estimated Time: 10-20 minutes)
1. Use the following prompt to facilitate this activity in a discussion board:
Use the Internet to find at least three examples of products, ideas, or
2. Have students respond to their classmates’ posts, question their
assumptions and provide additional examples.
Additional Questions for Reflection:
• Given the cultural exchanges spurred by globalization, are we in danger of
developing a homogenous world culture? Why or why not?
5. Online Research Activity: Chinese Currency Policy (LO 5-2)
Critics contend that the Chinese government pursues policies that keep the value of
the Chinese currency artificially low relative to other currencies such as the U.S.
6. Online Research Activity: Global Marketing Strategies (LO 5-5)
Samsung—the electronics company based in South Korea—has been quite
successful over the past ten years at marketing its products worldwide. Visit the
Samsung website and note two or three elements of the firm’s global marketing
strategy. Next visit the websites of two other global electronics company such as
Appendix
Generic Rubrics
Providing students with rubrics helps them understand expectations and components of
assignments. Rubrics help students become more aware of their learning process and
progress, and they improve students’ work through timely and detailed feedback.
Customize these rubrics as you wish. The writing rubric indicates 40 points and the
discussion rubric indicates 30 points.
Standard Writing Rubric
Criteria
Meets Requirements
Needs Improvement
Incomplete
Content
The assignment clearly and
comprehensively
addresses all questions in
the assignment.
The assignment partially
addresses some or all
questions in the
assignment.
The assignment does not
address the questions in
the assignment.
0 points
Research
The assignment is based
upon appropriate and
adequate academic
literature, including peer
reviewed journals and
other scholarly work.
5 points
The assignment is based
upon adequate academic
literature but does not
include peer reviewed
journals and other
scholarly work.
3 points
The assignment is not
based upon appropriate
and adequate academic
literature and does not
include peer reviewed
journals and other
scholarly work.
Standard Discussion Rubric
Criteria
Meets Requirements
Needs Improvement
Incomplete
Participation
Submits or participates in
discussion by the posted
deadlines. Follows all
assignment. instructions
for initial post and
responses.
Does not participate or
submit discussion by the
posted deadlines. Does not
follow instructions for
initial post and responses.
3 points
Does not participate in
discussion.
0 points