GMMCH01.ppt 80KB Jun 05 2011 09:30:24 PM

GLOBAL MARKETING MANAGEMENT

by
MASAAKI KOTABE
and
KRISTIAAN HELSEN
John Wiley & Sons, Inc.
1998

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GLOBALIZATION
IMPERATIVE
Chapter One

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Globalization Imperative
Chapter One

• Overview
• 1. Why Global Marketing is Imperative
• 2. Globalization of Markets and
Competition
• 3. Evolution of Global Marketing
• 4. Appendix
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Overview of Globalization
Imperative

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1. Why Global Marketing is Imperative
• Exhibit 1-1 “Change in the World’s 100
Largest Companies”

• global vs international vs multinational

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2. Globalization of Markets and
Competition
• Exhibit 1-2 “ US Balance of Goods,
Services and Income over 20 Year Period”
• International Trade (IT) and International
Business (IB)
– IT = exports/imports
– IB = includes IT and foreign production
• export of products
• investment in foreign production
• contract or manufacture in foreign country

– foreign production is larger than IT
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2. Globalization of Markets and
Competition (cont)
• Global Reach
• United States
– 3:1 ratio of foreign products to exports
– 6:1 ration of US/European production to
exports
– 5:1 ratio of European owned US located
subsidiaries

• Japan
– 2.5:1 ratio of Japanese subsidiaries to Japanese
exports
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2. Globalization of Markets and

Competition (cont)
• Who Manages International Trade?
– intra-firm trade
• transfers to affiliates overseas
• 30% of US exports
• 30% of exports by Japan and Britain

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3. Evolution Of Global Marketing
• What is Marketing?
– satisfies customers needs
– anticipates and creates their future needs at a
profit
– reactively and proactively

• Domestic Marketing
– exhibit 1-3

– ethnocentric
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3. Evolution of Global Marketing (cont)
• Export Marketing
– ethnocentric

• International Marketing
– polycentric
– multidomestic marketing

• Multinational Marketing
– regiocentric
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3. Evolution of Global Marketing (cont)

• Global Marketing
– geocentrism
– reduction of cost inefficiencies and duplication
of efforts
– opportunities to transfer products, brands and
ideas across subsidiaries
– emergence of global customers
– improved linkages … leading to global market
infrastructure
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4. APPENDIX
• Comparative Advantage Theory
• International Product Cycle Theory
• Internalization / Transaction Cost Theory

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COMPARATIVE ADVANTAGE
THEORY

• Exhibit 1-4 “Comparative Advantage at
Work”
• absolute advantage vs comparative
advantage
• commodity terms of trade
• principles of international trade

– 1. countries benefit from international trade
– 2. international trade increases worldwide
production by specialization
– 3. exchange rates are primarily determined by
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traded goodsJohn Wiley & Sons, c

INTERNATIONAL PRODUCT CYCLE

THEORY
• Exhibit 1-5 “International Product Cycle”
• first
– economies of scale
– economies of scope

• second
– technological gap
– monopoly power

• third
– preference similarity (consumption power)
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INTERNALIZATION/ TRANSACTION
COST THEORY
•
•

•
•

multinational companies
appropriability regime
dominant design
manufacturing and marketing ability

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