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GLOBAL MARKETING MANAGEMENT
by
MASAAKI KOTABE and
KRISTIAAN HELSEN John Wiley & Sons, Inc.
John Wiley & Sons, c 1998
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GLOBALIZATION
IMPERATIVE
John Wiley & Sons, c 1998
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Globalization Imperative
Chapter One
• Overview
• 1. Why Global Marketing is Imperative • 2. Globalization of Markets and
Competition
John Wiley & Sons, c 1998
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John Wiley & Sons, c 1998
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1. Why Global Marketing is Imperative
• Exhibit 1-1 “Change in the World’s 100 Largest Companies”
John Wiley & Sons, c 1998
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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
John Wiley & Sons, c 1998
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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
John Wiley & Sons, c 1998
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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
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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
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3. Evolution of Global Marketing (cont)
• Export Marketing
– ethnocentric
• International Marketing
– polycentric
– multidomestic marketing
• Multinational Marketing
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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
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4. APPENDIX
• Comparative Advantage Theory
• International Product Cycle 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
John Wiley & Sons, c 1998
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INTERNATIONAL PRODUCT CYCLE
THEORY
• Exhibit 1-5 “International Product Cycle” • first
– economies of scale – economies of scope
• second
– technological gap – monopoly power
• third
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INTERNALIZATION/ TRANSACTION
COST THEORY
• multinational companies • appropriability regime • dominant design
