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Global Marketing Global 9th Edition Keegan Solutions Manual

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Global Marketing Global 9th Edition Keegan Solutions Manual Full Download:…
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Global Marketing Global 9th Edition Keegan Solutions Manual Full Download: https://alibabadownload.com/product/global-marketing-global-9th-edition-keegan-solutions-manual/CHAPTER 1 INTRODUCTION TO GLOBAL MARKETINGSUMMARY A. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestlé, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. B. Marketing, R&D, manufacturing, and other activities comprise a firm’s value chain the value equation (V =B/P) expresses the relationship between values and the marketing mix. C. Global companies also maintain strategic focus while pursuing competitive advantage. The marketing mix, value chain, competitive advantage, and focus are universal in their applicability, irrespective of whether a company does business only in the home country or has a presence in many markets around the world. However, in a global industry, companies that fail to pursue global opportunities risk being pushed aside by stronger global competitors. D. A firm’s global marketing strategy (GMS) can enhance its worldwide performance. The GMS addresses several issues. First is the nature of the marketing program in terms of the balance between a standardization (extension) approach to the marketing mix and a localization (adaptation) approach that is responsive to country or regional differences. Second is the concentration of marketing activities in a few countries or the dispersal of such activities across many countries. Companies that engage in global marketing can also engage in coordination of marketing activities. Finally, a firm’s GMS will address the issue of global market participation. E. The importance of global marketing today can be seen in the company rankings compiled by the Wall Street Journal, Fortune, Financial Times, and other publications. Whether ranked by revenues, market capitalization, or some other measure, most of the world’s major corporations are active regionally or globally. The size of global markets for individual industries or product categories helps explain why companies “go global”. Global markets for some product categories represent hundreds of billions of dollars in annual sales; other markets are much smaller. Whatever the size of the opportunity, successful industry competitors find that increasing revenues and profits means seeking markets outside the home country. 1-1 Copyright © 2017 Pearson Education, Inc.This sample only, Download all chapters at: AlibabaDownload.comF. Company management can be classified in terms of its orientation toward the world: ethnocentric, polycentric, regiocentric, or geocentric. The terms reflect progressive levels of development or evolution. An ethnocentric orientation characterizes domestic and international companies; international companies pursue marketing opportunities outside the home market by extending various elements of the marketing mix. A polycentric worldview predominates at a multinational company, where the marketing mix is adapted by country managers operating autonomously. Managers at global and transnational companies are regiocentric or geocentric in their orientation and pursue both extension and adaptation strategies in global markets. G. The dynamic interplay of several driving and restraining forces shapes the importance of global marketing. Driving forces include market needs and wants, technology, transportation and communication improvements, product costs, quality, world economic trends, and recognition of opportunities to develop leverage by operating globally. Restraining forces include market differences, management myopia, organizational culture, and national controls such as nontariff barriers (NTBs). OUTLINE OF THE BOOK The book is divided into five parts. Part 1: An overview of global marketing and the basic theory of global marketing. Part 2: The environments of global marketing. Part 3: Approaching global markets (global strategy) Part 4: The marketing mix in global marketing. Part 5: Corporate strategy, leadership, and the impact of the digital revolution on global marketing.LEARNING OBJECTIVES 1 Use the product/market growth matrix to explain the various ways a company can expand globally 2 Describe how companies in global industries pursue competitive advantage 3 Compare and contrast single-country marketing strategy with global marketing strategy (GMS) 4 Identify the companies at the top of the Global 500 rankings1-2 Copyright Š 2017 Pearson Education, Inc.5 Explain the stages a company goes through as its management orientation evolves from domestic and ethnocentric to global and geocentric. 6 Discuss the driving and restraining forces affecting global integration today. DISCUSSION QUESTIONS 1-1. What are the basic goals of marketing? Are these goals relevant to global marketing? Marketing activities represent an organization’s efforts to satisfy customer wants and needs by offering products and services that create value. These goals are relevant in virtually every part of the world; however, when an organization pursues market opportunities outside of its home country (domestic) market, managers need an understanding of additional conceptual tools and guidelines in order to do business in these other countries – in other words, to create value and satisfy consumer needs and wants. 1-2. What is meant by “global localization?” Is Coca-Cola a global product? Explain. The phrase “global localization” represents an attempt to capture the spirit of the rallying cry for organizations in the 21st century, namely, “think globally, act locally, and manage regionally.” Most students will agree that Coca-Cola is a global product by virtue of the fact that it is available in more than 195 countries in red cans bearing the distinctive signature style. It must be noted, however, that customer service efforts are adapted to the needs of particular markets (for example, vending machines in Japan). Thus, Coca-Cola is both global and local. 1-3. A company’s global marketing strategy (GMS) is a crucial, competitive tool. Describe some of the global marketing strategies available to companies. Give examples of companies that use the different strategies. This question invites reference to Table 1-5. Strategies include global branding (CocaCola, Marlboro), product design (McDonald’s restaurants and menu items), positioning (Harley-Davidson), packaging (Gillette Sensor), distribution (Benetton), customer service (Caterpillar), and sourcing (Toyota, Gap). 1-4. UK-based Burberry is a luxury fashion brand that appeals to both genders and all ages. To improve Burberry’s competitiveness in the luxury goods market, CEO Angela Ahrendts recently unveiled a new strategy that includes all the elements of the marketing mix. Their strategy also addresses key markets that Burberry will participate in, as well as the integration and coordination of marketing activities. Search for recent articles about Burberry and write a brief summary that outlines Burberry’s GMS. Student answers will vary, but all should contain the facts that the new CEO intends to broaden the brand’s appeal and introduce two new logos. 1-3 Copyright © 2017 Pearson Education, Inc.1-5. Discuss the differences between the global marketing strategies of Harley-Davidson and Toyota? Harley-Davidson motorcycles are known the world over as “the” all-American motorcycle. Harley’s mystique and heritage are associated with America. The company backs up this positioning with exports from two U.S. manufacturing locations. By contrast, Toyota builds some models (e.g. Camry) for the U.S. market in the U.S., a fact that Toyota stresses in its American advertising. Thus, Harley-Davidson serves global markets while sourcing locally, while Toyota’s strategy calls for serving world markets and using the world as a source of supply. 1-6. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentric management orientations. The premise of an ethnocentric orientation is that home country products and management processes are superior. An ethnocentric company that neither sources inputs from, nor seeks market opportunities in the world outside the home country may be classified as an international company. A company that does business abroad while still presuming the superiority of the home country may be classified as an international company. Such a company would rely on an extension strategy whereby it would export, without adaptation, products designed for the domestic market. The polycentric orientation that predominates at a multinational company leads to a view of the world in which each country market is different from the others. Local country managers operating with a high degree of autonomy adapt the marketing mix in a polycentric, multinational company. Managers who are regiocentric or geocentric in their orientations recognize both similarities and differences in world markets. Market opportunities are pursued using both extension and adaptation strategies. The regiocentric and geocentric orientations are characteristic of global transnational companies. 1-7. Identify and briefly describe some of the forces that have resulted in increased global integration and the growing importance of global marketing. The dynamic involving driving and restraining forces is shown diagrammatically in Figure 1-1. Driving forces include regional economic agreements such as NAFTA, converging market needs and wants, technology advances such as the Internet and global TV networks, transportation improvements, the need to recoup high product development costs in global markets, the need to improve quality through R&D investment, world economic trends such as privatization and finally, opportunities to use leverage, corporate culture, and the continuing presence of national controls that create trade barriers. 1-8. Define leverage and explain the different types of leverage utilized by companies with global operations.1-4 Copyright © 2017 Pearson Education, Inc.Webster’s New World Dictionary defines “leverage” as an “increased means of accomplishing some purpose.” A global company can take advantage of several types of leverage in pursuit of corporate goals such as profit or revenue growth. These include experience transfers, scale economies, enhanced resource utilization, and global strategy. 1-9. Each July, Fortune publishes its Global 500 listing of the world’s largest companies. You can find the current rankings online at: www.fortune.com/global500. Alternatively, you can consult the print edition of Fortune. Browse through the list and choose any company that interests you. Compare its 2014 ranking with the most recent ranking. Has the company’s ranking changed? Consult additional sources (e.g., magazine articles, annual reports, the company’s Web site) to get a better understanding of the factors and forces that contributed to the company’s move up or down in the rankings. Write a brief summary of your findings. Each student’s answer will vary based upon the company they chose. 1-10. There’s a saying in the business world that “nothing fails like success”. Take Gap, for example. How can a fashion retailer that was once the source for wardrobe staples such as chinos and white T-shirts suddenly lose its marketing edge? Motorola has also fallen victim to its own success. The company’s Razr cell phone was a huge hit, but Motorola struggled to leverage that success. Now, Google owns Motorola Mobility. Also, Starbucks CEO Howard Shultz recently warned that his company and brand risk becoming commoditized. And, as noted in Case 1-3, some industry observers are saying that Apple has “lost its cool”. If you were to make separate recommendations to management at each of these companies, what would you say? Each student’s answer will vary but their answers should incorporate such terms as global marketing, marketing mix strategy, value chain, V = B/P, strategic focus, global marketing strategy, extension, adaption, ethnocentric, polycentric, regiocentric, or geocentric orientations in their responses. Perhaps, a phrase that could be said to each of these chief executives is “think globally, act locally”. OVERVIEW The growing importance of global marketing is one aspect of a sweeping transformation that has profoundly affected the people and industries of many nations during the past 160 years. Four decades ago, the phrase global marketing did not even exist. Today businesspeople utilize global marketing to realize their companies’ full commercial potential. However, there is another, even more critical reason why companies need to take global marketing seriously: survival. A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products.1-5 Copyright © 2017 Pearson Education, Inc.But what is global marketing? How does it differ from “regular” marketing? Marketing can be defined as the activity, set of institutions, and processes for creating, communicating, and delivering value for customers, clients, partners, and society at large. Marketing activities center on an organization’s efforts to satisfy customer wants and needs with products and services that offer competitive value and for managing customer relationships in ways that benefit the organization and its stakeholders. The marketing mix (product, price, place, and promotion) comprises a contemporary marketer’s primary tools. Marketing is a universal discipline – as applicable in Argentina as it is in Zimbabwe.  (Learning Objective #1) This book is about global marketing. An organization that engages in global marketing focuses its resources and competencies on global market opportunities and threats. A fundamental difference between regular marketing and global marketing is the scope of activities. A company that engages in global marketing conducts important business activities outside the home-country market. The scope issue can be conceptualized in terms of the familiar product/market matrix of growth strategies (see Table 1-1). Some companies pursue a market development strategy; this involves seeking new customers by introducing existing products or services to a new market segment or to a new geographical market. Global marketing can also take the form of a diversification strategy in which a company creates new product or service offerings targeting a new segment, a new country, or a new region. Four of the growth strategies shown in Table 1-1: (Chapter 1, Page 5) Four Stages - Starbucks Market penetration: Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. Market development: Starbucks is entering India via an alliance with the Tata Group. Phase one calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. The next phase will likely involve opening Starbucks outlets in Tata’s upscale Taj hotels in India. Product development: Starbucks created a brand of instant coffee, Via, to enable its customers to enjoy coffee at the office and other locations where brewed coffee is not available. After a successful launch in the United States, Starbucks rolled out Via in Great Britain, Japan, South Korea, and several other Asian countries. Diversification: Starbucks has launched several new ventures, including music CDs and movie production. Next up: Revamping stores so they can serve as wine bars and attract new customers in the evening.1-6 Copyright © 2017 Pearson Education, Inc.Companies that engage in global marketing frequently encounter unique or unfamiliar features in specific countries or regions of the world. In some regions of the world, bribery and corruption are deeply entrenched. A successful global marketer understands specific concepts and has a broad and deep understanding of the world’s varied business environments. He or she also must understand the strategies that, when skillfully implemented in conjunction with universal marketing fundamentals, increase the likelihood of market success.ANNOTATED LECTURE/OUTLINE Principles of Marketing: A Review Marketing is one of the functional areas of business – distinct from finance and operations. Marketing is the set of activities and processes that (along with product design, manufacturing, and transportation) comprises a firm’s value chain. Decisions at every stage of the process – from idea conceptualization to customer support after the sale – should be assessed in terms of their ability to create value for customers. The core of marketing is to surpass the competition in creating perceived value for customers. The value equation is the guide to this task: Value = Benefits / Price (money, time, effort, etc.) The marketing mix is central to this equation because benefits are a combination of the product, promotion, and distribution components of the mix. Value to the customer can be increased in two ways – 1) an improved bundle of benefits or 2) a lower price (or both): 1) Marketers may improve the product, design new channels of distribution, communicate better – or a combination of all three. 2) Marketers may seek ways to cut costs or lower the price. Nonmonetary costs may be lowered by decreasing the time and effort customers must expend to learn about or acquire a product. If a company is able to offer a combination of superior product, distribution, and promotion of the benefits AND offer lower prices than its competition, it should enjoy an extremely advantageous position. Recall the definition of a market: people or organizations that are both able and willing to buy. In order to achieve market success, a product or brand must measure up to a threshold of acceptable quality and be consistent with buyer behavior, expectations, and preferences Competitive Advantage, Globalization, and Global Industries 1-7 Copyright © 2017 Pearson Education, Inc. (Learning Objective #2) When a company succeeds in creating more value for customers than its competitors, that company is said to enjoy competitive advantage in an industry. Competitive advantage is measured relative to rivals with whom you compete in the industry – whether that is on a local, national, or global level. Global marketing is essential if a company competes in a global industry or one that is globalizing. The process of globalization is the transformation of formerly local or national industries into global ones. From a marketing point of view, globalization presents companies with tantalizing opportunities—and challenges—as executives decide whether to offer their products and services everywhere. As defined by management guru Michael Porter, a global industry is one in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale. Put another way, an industry is global to the extent that a company’s industry position in one country is interdependent with its industry position in other countries. Indicators of globalization include the ratio of cross-border trade to total worldwide production, the ratio of cross-border investment to total capital investment, and the proportion of industry revenue generated by companies that compete in all key world regions. One way to determine the degree of globalization in an industry sector is to calculate the ratio of the annual value of global trade in the sector— including components shipped to various countries
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