Chapter 07 – Understanding and Reaching Global Consumers and Markets
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Ask students to break out different segments in the golf market that could be targeted by
club manufacturers. Segments could include: men, women, youth, as well as segmentation based
on experience—beginners, experienced and professional golfers. This leads nicely into the
discussion questions and whether there are global similarities and differences across the various
golfer segments.
Answers to Questions
1. What are the pros and cons of a global versus a multidomestic approach to marketing
golf clubs for Callaway? Which approach do you feel would have more merit and
why?
Answers:
2. What are some of the significant environmental factors that could have a major
impact on the marketing of golf clubs internationally? Describe each factor and what
the nature of the impact would be.
Answers:
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3. What marketing mix recommendations would you have for Callaway as it attempts to
increase its international market share, especially in Asian markets?
Answers:
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ICA 7-1: IN-CLASS ACTIVITY
Introducing Carmex Healing Cream to European Markets1
Learning Objectives. To have students: (1) identify the problems U.S. global marketers
typically face when adapting a U.S. product to sell to foreign consumers and (2) suggest
marketing mix actions that Carma Labs might make for its Carmex healing cream to appeal to
European consumers.
Nature of the Activity. To have students:
• Identify marketing mix actions for Carmex to take in introducing one of its brands to
European consumers that reflects the typical problems that U.S. global marketers face
when targeting international consumers.
• Classify the type of global company Carma Labs is (an international firm, a
multinational firm, or a transnational firm).
Estimated Class Time and Teaching Suggestions. About 20 minutes, taught in class in
4-person teams.
Materials Needed.
• Copies for each student of the of the “Marketing Actions to Improve Carmex’s
Chances of Successfully Targeting the European Market” handout.
• OPTIONAL: Purchase several samples of the Carmex Healing Cream tubes at a local
supermarket or drugstore to pass around the class during this ICA.
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer:
3. OPTIONAL: Pass around the Carmex Healing Cream tubes.
4. Pass out copies of the Marketing Actions to Improve Carmex’s Chances of
Successfully Targeting the European Market Handout to each student.
5. Carmex Healing Cream (U.S. to European Markets). Click on the Internet icon to
play the YouTube video clip about the introduction of the new Carmex Skin Care line
[TRT = 0:50].
1 The authors wish to Carma Labs and Jeff Gerst of Bolin Marketing, all of whom assisted in the development of this ICA.
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6. Give this background mini-lecture on the history of Carmex and global marketing
strategy alternatives:
“Alfred Woelbing created Carmex lip balm in the early 1930s. He made the product
by hand and sold it in glass jars out of the trunk of his car on the streets of
Milwaukee, WI. In late 2011, Carma Labs introduced the Carmex Healing Cream.
Carmex sells its products in the U.S., Canada, Mexico, Europe, Australia, and Asia.
Many U.S. companies like Carmex engage in global marketing and trade with
consumers in foreign countries. to expand sales and profits for U.S. companies.
Companies engaged in global commerce may be characterized as either:
7. Marketing Actions to Improve Carmex’s Chances of Successfully Targeting the
European Market Handout. Give the students the following instructions:
“In your teams, spend 7 or 8 minutes to (1) identify the issues or problems in global
marketing and (2) recommend an action for each of four marketing mix elements that
your team thinks will improve Carmex’s chances of successfully targeting European
markets in terms of:
8. Ask student teams to share their ideas and discuss them.
9. Marketing Actions to Improve Carmex’s Chances of Successfully Targeting the
European Market Answers that identifies potential marketing mix problems and
resulting actions.
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10. Ask students to classify Carma Labs, the firm that markets the Carmex Healing
Cream in the U.S., either as an international firm, a multinational firm, or a
transnational firm.
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MARKETING ACTIONS TO IMPROVE CARMEX’S CHANCES OF
SUCCESSFULLY TARGETING THE EUROPEAN MARKET ANSWERS
Marketing Mix
Element
Issue/Problem
Action/Solution
Product
Improvements
• Flavors
• Packaging (tube; jar?)
• Labeling
• Amount of product: 4 ounces
• Others as identified
• Make more flavors (fruit,
natural, mint, etc.)
• Design unique packaging for
each European country
• Determine optimal product
package forms, quantities,
and sizes
• Others as identified
• Currency exchange risks
since Carmex is produced in
• Determine uniform euro price
for each country
Chapter 07 – Understanding and Reaching Global Consumers and Markets
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MARKETING ACTIONS TO IMPROVE CARMEX’S CHANCES OF
SUCCESSFULLY TARGETING THE EUROPEAN MARKET HANDOUT
MARKETING
MIX ELEMENT
ISSUE/PROBLEM
ACTION/SOLUTION
Product
Improvements
Pricing
Improvements
Promotion
Improvements
Place
(Distribution)
Improvements
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Connect Application Exercises
Application Exercise 1: Protectionism
Activity Summary: In this case analysis activity, students read a brief scenario in which they are
asked to think like a global marketing consultant working to increase exports and decrease
imports into the United States. Students are asked five follow-up questions related to the effect of
tariffs and quotas on international trade.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Global Marketing
Learning Objective: LO 07-02 Identify the major developments that have influenced world
trade and global marketing
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to search for recent information on the trade
partners of the United States, identifying countries that have significant trade surplus and
Application Exercise 2: Global Market Entry
Activity Summary: In this click and drag activity, students are given six global market entry
strategies; indirect exporting, direct exporting, licensing, franchising, joint venture and direct
investment. The draggable items (Moodmatcher lipstick, Boeing, Yoplait, McDonald’s, Ericsson
and CGCT, and Nissan) provide students with a description of a global market entry strategy
when clicked. Students match the firm to the appropriate global entry strategy.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Market Entry Strategies
Learning Objective: LO 07-04 Name and describe the alternative approaches companies use to
enter global markets.
AACSB: Analytical thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors can ask students to look up American companies with
international operations, recording the number of international outlets and revenues. Ask
Application Exercise 3: Global Marketing Program
Activity Summary: In this click and drag activity, students enhance their understanding of
global marketing programs. Students match five companies (Shiseido, Maybelline, Toyota,
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Breathe Right, Gasoline Producer) onto the correct global marketing program (product
extension, product adaptation, product invention, communication adaptation, and/or dual
adaptation strategy). As students mouse over the company name, they are provided with a
description of that firm’s marketing program.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Global Marketing
Learning Objective: LO 07-05 Explain the distinction between standardization and
customization when companies craft worldwide marketing programs.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could provide students with additional video and print examples
of global advertising with the domestic counterparts for sake of comparison. Ask the students to
Application Exercise 4: Mary Kay, Inc.: Building a Brand in India
Activity Summary: In this 6-minute video, students learn the history of Mary Kay Cosmetics
and its expansion into the Asia-Pacific market. The focus of the video is Mary Kay’s expansion
into the Indian market with its infrastructure, growth, and cultural challenges. After viewing the
video, students are asked five questions covering global competition, trade restrictions,
macroenvironmental forces, and marketing tactics for Mary Kay.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Global Marketing, Global Environmental Forces
Learning Objectives: LO 07-02 Identify the major developments that have influenced world
trade and global marketing
LO 07-03 Identify the environmental forces that shape global marketing
efforts.
LO 07-05 Explain the distinction between standardization and
customization when companies craft worldwide marketing programs.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
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Application Exercise 5: iSeeit! Video Case: Global Entry Strategies
Activity Summary: In this straightforward whiteboard animation video, global entry strategies
are explored in the context of coffee retailers 5 Bucks and Joe to Go. After watching the 3-
minute video, students are asked four follow-up questions related to global entry strategies.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Market Entry Strategies
Learning Objectives: LO 07-04 Name and describe the alternative approaches companies use to
enter global markets.
AACSB: Knowledge Application
Blooms: Understand
Difficulty Level: 1 Easy
Follow-Up Activity: Instructors can introduce Geert Hofstede’s theory on cultural dimensions