Global Marketing Argumentative Essay Example

on both domestic and international companies; international companies seek marketing opportunities outside their home market by expanding through various multinational companies, where country managers independently modify the marketing mix.

Managers at global and transnational companies have an orientation that is either recognition or geocentric. They employ both extension and adaptation strategies in global markets. The significance of global marketing today is influenced by various factors. These factors include market needs and wants, technology advancements, improvements in communication and remonstration, product costs and quality, world economic trends, as well as the recognition of opportunities for global operation leverage. Conversely, there are also restraining forces such as market differences, management myopia, organizational culture, and national controls.

Discussion Questions

The fundamental objectives of marketing are to meet customer demands and provide valuable products and services. These objectives are applicable worldwide. Nonetheless, when an organization ventures into international markets, managers must possess the knowledge of extra conceptual tools and guidelines.

What does "global localization" refer to? Is Coca-Cola considered a global product?

The notion of "global localization" refers to organizations in the 21st century adopting the principle of "think globally, act locally, and manage regionally." Coca-Cola is acknowledged as a global product as it is present in more than 195 countries and recognized by its red cans. However, it should be noted that customer service initiatives are customized to cater to the unique requirements of various markets, like utilizing vending machines in Japan. Thus, Coca-Cola can be perceived as both a global and local brand.

Discuss various global marketing strategies that companies employ, citing examples from Table 1-2. Such strategies comprise global branding

utilized by companies like Coca-Cola and Marlboro, product design employed by McDonald's for their restaurants and menu items, positioning embraced by Harley-Davidson, packaging exemplified by Gillette Sensor, distribution demonstrated by Benton, customer service offered by Caterpillar, and sourcing implemented by Toyota and Gap.

What are the differences in the global marketing strategies between Harley-Davidson and Toyota?

Both Harley-Davidson motorcycles and certain Toyota models like the Campy have strong associations with American culture. However, there is a difference in their approaches to global markets. Harley-Davidson relies on local sourcing while serving customers worldwide, maintaining its brand's connection to America. In contrast, Toyota focuses on manufacturing for the U.S. market within the country and utilizes global supply chains to serve international markets. This distinction is evident in their respective advertisements.

The various management orientations - ethnocentric, polytechnic, recognition, and geocentric - have distinct differences. An ethnocentric orientation operates with the belief that products and management processes from the home country are superior.

An international company can be defined as one that is ethnocentric, sourcing inputs and seeking market opportunities only within the home country. It can also be classified as a company that does business abroad but maintains a belief in the superiority of the home country. In this case, the company would utilize an extension strategy to export products designed for the domestic market without any adaptation. On the other hand, a multinational company has a polytechnic orientation, perceiving each country's market as distinct from others.

In a multinational company, local country managers have a significant level of independence in adjusting the marketing mix. These managers, whether recognition or geocentric in their approaches, acknowledge both the

similarities and differences in global markets. They pursue market opportunities through strategies that involve both extending and adapting their products or services. This recognition and geocentric approach is commonly seen in global transnational companies. Additionally, there are several factors that have led to increased global integration and the rising significance of global marketing.

The diagram in Figure 1-2 illustrates the interaction between driving forces and restraining forces. Driving forces encompass regional economic agreements like NONFAT, convergence of market needs and wants, technological advancements such as the Internet and global TV networks, improvements in transportation, the necessity to recoup high product development costs in global markets, the need for quality improvement through R;D investments, worldwide economic trends like prevarication, opportunities for SE leverage, corporate culture, and the persistent existence of national controls that create trade barriers. The term "leverage" is defined by Webster New World Dictionary as an "increased means of accomplishing some purpose." Companies with global operations can utilize various types of leverage to achieve corporate goals such as profit or revenue growth. These types include experience transfers, scale economies, enhanced resource utilization, and

Chapter 2 the Global Economic Environment

The global market potential and opportunity are greatly influenced by the economic environment.

The global economy is primarily driven by capital movements, which have resulted in the separation of production and employment and the dominance of capitalism over communism. Economies can be categorized as market capitalism, centrally-planned capitalism, centrally-planned socialism, or market socialism based on resource allocation and ownership. In the late 20th century, numerous countries shifted from centralized control to market capitalism. However, there is still a considerable disparity in economic freedom among

nations worldwide.

Countries can be categorized into different economic development stages, including low income, lower middle income, upper middle income, and high income. The 50 least-developed countries are classified as low-income and known as least-developed countries (Olds). Newly industrialization economies (Nines) are upper middle-income nations that are currently undergoing significant growth. Examples of rapidly growing economies include the BRICK nations - Brazil, Russia, India, and China.

The Group of Seven (G7) and the Organization for Economic Cooperation and Development (OECD) are initiatives created by affluent nations to promote global democratic ideals and free-market principles. The Triad, comprised of Japan, the United States, and Western Europe, holds a substantial share of global income. When evaluating market potential for a product, it is crucial to consider both income levels and product saturation levels in these regions where companies often seek international growth.

The balance of payments is a record that displays a country's economic transactions with other nations, indicating if it has a trade surplus or deficit. In 2005, the United States had a merchandise trade deficit amounting to $780 billion; however, it managed to maintain an annual service trade surplus. Overall, the United States remains in debt while Japan maintains a trade surplus and acts as a creditor nation.

This text analyzes the differences between market capitalism, centrally planned capitalism, centrally planned socialism, and market socialism.

In the United States, market capitalism is dominant with private ownership of resources and production. Consumers have the power to choose their desired goods, while firms decide what and how much to produce. The state's main role in this system is to promote competition. On the other hand, Sweden follows

a centrally-planned capitalist model where despite private ownership of resources, the government controls two-thirds of all expenditures.

Centrally-planned socialism, observed in the former Soviet Union, involves the state having extensive powers to serve the public interest as it deems appropriate. State planners make top-down decisions regarding the production and quantities of goods and services, while consumers are limited to spending their money on what is available. The government owns both industries and individual enterprises. Market socialism, however, allows for market allocation policies within a framework of state ownership.

Market socialism exists in China, where farmers have the freedom to sell a portion of their production in a free market.

In this chapter, the focus is on Brazil, Russia, India, and China (BRICK).

The BRICK nations are being observed for their current stage of economic development. Analysts believe that the BRICK nations will have a significant role in global trade despite concerns surrounding their human rights, environmental protections, and other matters raised by their trading partners. India falls into the Low-Income category, whereas China and Brazil are categorized as Lower-Middle- Income.

Russia is the sole BRICK nation currently in the Upper-Middle-lonesome etagere.

Referencing the Index of Economic Freedom (Table 2-3), locate the rankings of the BRICK nations. What does this reveal about the index's significance for global marketers? All four BRICK countries are placed within the "Mostly Unfreeze" category. This signifies that while the index holds importance for marketers, they are not willing to overlook the business prospects offered by these countries.

The manufacturer of satellite dishes is evaluating the global market potential for their products.

He inquires about whether he should view developing countries as

possible arrests. Your advice would depend on saturation levels. The high levels of growth in various developing countries indicate that certain segments of the population can afford luxurious electronic devices, such as a satellite dish. A satellite entrepreneur could welcome neighbors to their residence and charge them for the opportunity to watch programming that is not otherwise accessible. While these neighbors may not be able to purchase their own satellite and accompanying equipment, they can still afford to enjoy an occasional movie.

It is important to address your friend's concern about America's merchandise trade deficit of 780 billion in 2005. Nonetheless, it is crucial to consider the overall trade balance, which incorporates both merchandise and services trade according to official balance of payments data. In terms of services trade, the United States typically maintains a surplus that compensates for the merchandise trade deficit. The service trading industry has significant involvement from the United States, as Figure 2-5 demonstrates, with services exports amounting to approximately $424 billion in 2006.

In 2006, the United States had a services surplus of $80 billion, which helped to lessen the country's merchandise trade deficit. The deficit in merchandise trade was a record-breaking $838 billion, accounting for roughly one-third of the total U.S. exports.

Chapter 3 the Global Trade Environment

This section examines how the global trade environment affects trade patterns, focusing on institutions and regional cooperation agreements. The World Trade Organization (WTO) was created in 1995 to replace the General Agreement on Tariffs and Trade. It offers member nations a platform to resolve conflicts and establish global trade policies.

Regional and subregional preferential trade agreements are crucial in global

trade as they signify varying degrees of economic integration. An example is the North American Free Trade Agreement (NAFTA), which establishes a free trade area by removing tariffs and quotas. To determine the origin of goods, rules of origin are enforced.

A customs union, such as Mercury, introduces common external tariffs and eases the flow of labor and capital. The most advanced form of economic integration is accomplished through an economic union like the European Union (ELI), which harmonizes economic policies and institutions. Other notable cooperation agreements are seen in the Association of Southeast Asian Nations (SEAN) and the Cooperation Council for the Arab States of the Gulf (ICC).

In Africa, the Economic Community of West African States (COCOAS) and the South African Development Community (SAD) serve as the two main cooperation agreements.

The World Trade Organization (WTFO), located in Geneva, serves as the successor to GAIT. It consists of a dispute-settlement body (DOS) represented by all member countries. The DOS handles trade complaints regarding unfair trade barriers and other issues. To resolve a complaint, parties must engage in good-faith negotiations and reach a mutually agreeable solution within a 60-day consultation period.

If the complainant is unable to resolve the issue, they can seek assistance from the Department of State (DOS). They have the option to request a review of their case by a three-member panel appointed by DOS. The panel is required to provide its ruling within nine months. DOS possesses the authority to take action based on the recommendations made by the panel. In case of an unfavorable outcome, the losing party has the right to appeal to a seven-member appellate body. If

a country's trade policies are found in violation of WTFO rules, that particular country must make adjustments to its policies and negotiate with lower tariffs as compensation for the complaining country. Failure to comply may result in trade sanctions imposed by WTFO against the losing party.

This passage explores the similarities and differences among a free trade area, a customs union, a common market, and an economic union. It also gives examples of each type of economic integration. All four types eliminate tariffs and quotas between member nations. Customs unions, common markets, and economic unions additionally establish shared external tariff and quota systems. Furthermore, common markets and economic unions aim to decrease or remove limitations on the movement of people, money, and other factors. The highest level of integration is the economic union which requires alignment of economic policies and institutions.

Examples of regional integration include different types of agreements. For instance, a free trade area is represented by NONFAT, a customs union is represented by ELI, a common market is represented by the Central American Common Market (CACM), and an economic union is represented by ELI.

In Latin America, the regional economic organizations or agreements include the Integration System (SICK), Andean Group, and Southern Cone Common Market (Mercury). The Asia/Pacific region has the Association of Southeast Asian Nations (SEAN). In Western Europe, the important trading blocs are the European Union (ELI) and European Economic Area (EYE).

In the eastern region, there is the Central Cooperation Council (ICC) which originated in 1981. Additionally, there are newer agreements such as the Arab Cooperation Council (AC) and the Arab Manager Union Economic Community of West African States

(COCOAS). In other parts of the continent, the South African Development Coordination Conference (CAD) has been in existence since 1980 and consists of ten nations.

Chapter 4 Social and Cultural Environments

The influence of culture on each national market environment is both pervasive and constantly changing. Global marketers need to acknowledge this influence and be ready to either adapt to it or alter it.

Human behavior is influenced by an individual's personality and how they interact with society and culture. Attitudes, values, and beliefs can differ greatly across countries, as can religion, aesthetics, dietary customs, and language. These cultural differences impact how brands or products are perceived and how well company personnel can operate in different cultures. Various concepts and theoretical frameworks offer understanding on these cultural dynamics.

Cultures can be categorized as high- or low-context, and this classification affects communication and negotiation styles across countries. The hypotheses typology provides insights into power distance, individualism, masculinity, uncertainty avoidance, and time orientation within national cultures. Global marketers can overcome perceptual blockage and distortion by understanding the self-reference criterion. Additionally, Rogers' study on the diffusion of innovations reveals how products are adopted by different adopter categories over time.

According to Rogers, marketers can use his findings on the characteristics of innovations to assess if consumer and industry products need to be customized for different markets. Recent studies indicate that Asian adopter categories diverge from the Western model. Cultural competency is crucial for marketers to understand and address potential complications resulting from cultural differences. Furthermore, an understanding of environmental sensitivity aids in determining whether consumer and industry products should be adjusted for different markets.

The text

below discusses the elements of culture and their expression in native culture. This question is particularly intriguing when there is multicultural representation among students. It allows for reflection and comparison of attitudes, beliefs, and values. Additionally, the relevance of performing and visual arts to both individuals and the population at large can be examined. Lastly, language and communication topics can also be explored.

The difference between a low-context culture and a high-context culture lies in how communication is influenced by the verbal component or the context. In low-context cultures, a significant portion of the message relies on the written or spoken words. These cultures prioritize formal agreements, often involving lawyers to ensure their creation and enforcement. In contrast, high-context cultures place more importance on the context in which communication takes place. Lawyers have a lesser role, as personal obligations and trust form the foundation of these cultures.

According to Hypotheses cultural typologies, Japan is considered a high-context culture, whereas the U.S. is seen as a low-context culture. The Chinese Value Survey provides insights for Western marketers seeking to understand Asian culture better. This survey identified a dimension known as "Confucian Dynamism," which helps explain the economic growth in Asian countries. In Asian culture, virtuous behavior is demonstrated through characteristics such as persistence, respect for hierarchy, thriftiness, and a sense of shame.

By absorbing some of these cultural dimensions, Westerners can enhance their own experience and achieve their business goals. However, it is important for Westerners to recognize that attempting to change Asian behavior based on these dimensions is likely to be futile.

The self-reference criterion is an important concept that helps individuals overcome ethnocentrism while

perceiving other cultures. By understanding this criterion, one can identify and avoid product failures by applying the ISRC. This tool is crucial in preventing potential errors in judgment and decision-making.

The significance of questioning assumptions or conclusions that may stem from personal biases or cultural backgrounds is highlighted in the text. The International Sensitivity and Relevance Check (ISRC) employs a four-step process to eliminate bias. Campbell Soup observed a significant negative perception of convenience food and acknowledged the impact of homemakers' attitudes towards food preparation on marketing prepared foods. Research revealed that Italian housewives dedicated an average of 4.5 hours per day to food preparation, while their American counterparts only spent 60 minutes daily.

The increase in incomes and product innovations in Italy may influence the attitudes towards time and convenience, thereby positively affecting the market for convenience foods. Everett Rogers conducted social research on the diffusion of innovations, characteristics of innovations, and adopter categories. This research helps introduce innovations into a culture or country. The adoption process consists of five steps, beginning with awareness and culminating in adoption. How does the adoption process in Asia differ from the traditional Western model?

The adoption of inexpensive nonuser products involves repeat purchase. The speed at which buyers go through the adoption process is influenced by the five characteristics of innovations: relative advantage, compatibility, complexity, divisibility, and communicability. Russell M. Frederickson's successful launch of a series of coffee outlets in Hong Kong in 1991 serves as an example. Frederickson began by providing a cup of coffee that was superior to others ("relative advantage") at an affordable price, encouraging customers to try it and return for more ("divisibility").