This document provides an overview of key concepts in global marketing and international business. It discusses factors driving globalization, different economic systems, country classifications, trade blocs like the EU and OECD, cultural factors influencing global marketing, and challenges in the international political and legal environment. It also summarizes global marketing strategies, strategic planning processes, organizational structures for international businesses, and considerations for implementing and controlling global marketing activities.

1. Chapeter 1
: Intro to
GM
GM - mrkting prctise
vary to country, cust.
preferences,
competitor, distrib.
channel &
communication stgy.
-Global Market
participation (comp.
operations in world
market)
-Standardization/Adaption
- Global Marketing
Stratergy (focus marketing
activities)
-Market Penetration
Strategy
-Product Development
Strategy
-Market Development
Strategy
-Diversification Strategy
Key of Global Success
1.Value creation (offer
much benefit)
2.Competative Adv.
3.Focus (ex. nestle on food)
View Company Personnel
1. Ethnocentric (home country
superior)
2. Polycentric (each country is
unique/multinational comp.)
3. Regiocentric (focus on
regional strategy ex. US in North
America)
4. Geocentric (world as
potential market lead global
strategy)
Driving force GM
1. Multilateral trade agreement
2. Converging market needs and
info. revolution
3. Trasport & Communication
improvement
4. Product Develpment
Cost
5. Quatity
6. World Eco. Trends
7. Leverage
Restraining Forces (slow
in GM)
1. Managemet myopia
and organizational
calture
2. National Controls
Opposition Globalization
GM Strategy for Single Country Vs Global

2. Chapter 2 :
GM
Enviroment
Eco. System
1. Market Capitalism
-indv. & firm allocate resource
- resource privately own
-consumer decide goods, firm
decide what & how much
produce
- Gov. promote competition &
protect consumer
Centrally Planned Socialism
- Gov. serve public interest
(decide G&S produce and
quantity)
- consumer spend what
available
- gov. own industries
- D > S
- no prod. diff. , advertising or
price stra.
Centrally Planned Capitalism
- resouce allocation used in
eviroment of provate resource
ownership
- ex. sweden gov. control 2/3
expenditure, resource more
command then market
oriented
- ex. Singapore ban import,
manufacure and sale chewing
gum bcse mess pub place.
Market Socialism
- market allocation
policies permitted within
overall enviroment of
state ownership
- ex. China (freedom to
business)
High Income
Countries (up 9k)
{US, South Korea}
Upper Middle Income
Countries (btwen 3k to
9k)
{Brazil}
Lower Middle Income Countries
(btwen 0.7k to 3k)
{Indo}
Low Income Country (less 7k)
{India}
•US , Japan, Germany, France, Britain,
Canada, Italy
•leaders high income to establish eco.
stability
G- 7 Countries
•29 nation with market-allocation eco system
•enable members achieve highest eco growth
& social well-being of population
OECD (Organization
for Eco. Cooperation
& Development)
•Dominant eco centers of world
•Japan, Western Europe, US, Expanded,
Triad, Pacific Region, North America,
Europian Union
The Triad

3. Chapter 3 :
Social &
Cultural
Enviroment
- Culture-ways of living
build by human
transmitted
generation to another
- conscious &
unconscious value,
ideas, attitudes and
symbols Social Institution
1. Family
2. Edu.
3. Religion
4. Gov
5. Business
6. Institution Fund
Material and
Nonmateria Culture
- Physical component
(cloth,tool,art,bodyad
ornment, homes)
Subjective culture
(religion,perceptions,a
ttitues,beliefs,value)
Ethic group, gender,
organization or family
category of people
Global consumer culture is
consumption of symbols-specific
category(coffee culture, fast-
food culture so on)
Promarily the product of a tech.
interconnected world-cultural
info. (internet,cell phone)
-Attitude (learn to respond
in consistent way to given
object/entitiy)
-Belief (knowledge that
indv. hold to be true)
-Value (feeling specific
mode are preferable to
another)
Aesthetic (sense of beutiful or not,
depend on visual & style)
ex. Red (associated with liveliness
majority but poor in african) , white
(purity, clean but death in part of Asia,
Gray (inexpensive in Japan but high
quality in U.S)
Dietary Preferences
(culture influence in food
or consumption)
ex. Subway educate
indians to sadwitch bcse
they rarely eat bread.
Hofstede's Cultural
Typology
1. Power Distance (weak
member society accept
and expect power
distribute equal)
2. Individualism
3. Masculinity (Men in
material success, woman
welfare of child)
4. Uncertainty Avoidance
(unconfortable with
unclear, unstructure
question)
5. Long - Term Orientation
(focus achieve goal)
Reduce cultural Myopia
(reference to own culture
value)
- define prob. in home
country cultural traits
- define problem in host
country traits
- isolate SRC infulace &
examine it
-redefine prob. without
SRC & solve host country
situation
Adoption Process
1. Awareness (aware 1st
time prod.)
2. Interest (learn more)
3. Evaluation (benefit to
buy)
4. Trial (sample prod.)
5. Adoption (purchase &
repurchase)
Characteristic of
Innovation
1. Relative Advantage
2. Compatibility
3. Complexity (easy/hard
understand)
4. Divisibility (tried & used
without big expense)
5. Communicability
(communicated to
potential market)
enviroment sensitivity
(prod. must be adapted to
culture-specific needs of
diff. national market)
ex. food most sensitive
(Dehydrated Knorr Soups
no popurity in US bcse
prefer canned soups,
Starbucks overcome
culture barries in Britian)

4. •Int. politics (close political relation btwen
countries, benefit more)
•Int. Law (firm restricted by home & host country
laws)
•conflict btwen host & home law to follow,
choose litigation (delays & costy) or arbitration
(included in ori. contract)
•Int. terroism & marketing
- threat or ystematic use of violance to achieve
political goal
-creates new opportunites for firm in few
industries such as construction, security and IT
- direct effect (immediate cost) & indirect effect (
decline in per capita income, purchase power &
stock value)
- chill effect (uncertainty of nation eco. leads to
reduction in demand consumer & industrial
goods)
- regulation impose by gov to reduce this may
delay supply of imputs, up admin burden and
require form invest new procedures.
•1. Corporate governance (relation stake
holder that determine direction &
performance of org.)
- key element *transparency of firm
operation *financial result *principles in
measures sales, expanses, asset and
liability
•2. Intellectual property (legal entitilement
of right in use idea, knowledge or
invention)
•3. Bribery and corruption
•Domestication (demand ownership & impost
regulation to ensure prod. locally produce &
profit to country)
- effect? *poor cooperation from manager
*increase cost, low quality prod. *distruption of
int. distribution plan *lack of market discipline
•Risk faced for operating abroad:
1. Shortage foreign currency
2. Long nego with gov.
3. Increase tax rares or strict application in host
country tax
4. gov. control on proces imported
•Legal system
1. Comman law - based on tradition depend in
written code
2. Code law - based on Roman law
3. Antidumping law - no below-cost sale
*to protect domestic industries & reduce import
•4 area gov. activies that concern to international
marketer
a) embargoes & trade sanctions (actions to
distort trade for adversarial & political purpose)
b) Export controls (deny acqusition of goods by
adversaries, export license)
c) Import controls (tariffs, voluntary restraint
agreement {nontariff to cut backs trade action} &
quota system {reduce volume imports}
- Problem face
1. huge price for domestic consumer
2. social cost damage eco.
3. downstream change in import composition
4. often not work
5. supply grow far beyond demand
d) Regulation of Inernational Business Behavior
(boycotts, political risk including owernership
risk, operating risk and transfer risk)
Home
Country
Political Legal
& Enviroment
Host Country
Political &
Legal
Enviroment
The
International
Enviroment
Ethical Issue

5. Chapter 6 (5A) :
Strategic Planning
A. Strategic Planning Process
B. The Local Company In Global
Enviroment
GlobalizationDriver
1. Market Factor
- purchasing power, development
infrastructure(communication),
technology, distribution and cross-
border retail alliance
2. Cost Factor (avoid cost
inefficency&duplicate effort)
3. EnviromentFactor (rapid tech. ,
internet)
4. Competative Factor
Global Marketing - process of
market entry & expansion
Strategy integration needed due:
1. national market increasingly
similar
2. Scale eco. become important
3. Duplicatingprod. in country
more obvious
4. Pressure of leverage resource
5. Increase no. customer operating
globally
6. Similar competitor in market
Stratergic Planning Process
•contribute to financial & non financial
objective
a) rise efficancy of new prod.
b) reduce operation cost
c) Improve quality
d) market share performance
•Demension to be kept in mind in strategic
plainning
a) pontential benefit in short and long run
b) cost in management time and process
realignment
c) effort management in allocate resource
Understanding &
Adjusting the core
strategy
• A. Market & Competitive Analysis
- Understand trend and source of profit in diff country. ex, automobile industry, trend costomer demand - safety, economy? design?
• Internal Analysis
- exemine the capability in strategic move with their resource ex. Nokia decide on focus digital cellular phone
Formutating a GM
Strategy
• 1. Choice of competitive strategy
a) cost leadership (offer same product in lowest cost then the competitor)
• b) differentiation(focus on single segment, creating highly diferent prod. line)
c) focus (focus effort on few market segment rather then whole market)
2. Country-Market Choice (market expension determineallocation resource among various market, alternetive concentration or diversification)
- factor determine country market selection
a) stand-alone attractiveness of market (ex. China bcse of population)
b) global strategic importance of market (ex. finland in shipbuilding due lead tech develop. in vessel design)
c) Possible synergies offered by market (ex. entry in Latvia after succes in estonian market - similar market)
3. Segmentation
- basic of grouping customers
a) Demographic(income, population, age, gender, edu. , occupation)
b) Psychographic (attitude, values & lifestyle)
c) Behavior (people buy or not ex. light, heavy, user)
d) Ethnic group
Global Marketing
Program
Development
• decision based on 4 area:
1. standardization in product offering
2. Marketing Approch (glocalization - uniformity in strategic nature but take care of localize element)
3. Location and Extent of Value (add activities of innvoation for market efficiently)
4. Competative Move - using cross-subsidization that is uses of resource in one part of world to fight in competitivebattle. ex. Fuji cutting Kodak market in US. Kodak respond by increasing
advertise in japan.
Implementing
Global Marketing
• Challange in GM
1. Insufficient reseach & tendency over standardize-failure(ex. promote sucess in US success not in Japan)
2. Inflexbilityin planning and implementation(too much customize in local production, lost brand image)
3. Local resistance in the form of not-invented-heresyndrome (NIH), occur when org not part of planning process or adoption force by headquater.
• LocalizingGlobal Marketing
a) Management Process (minimizeNIH syndrome by using motivational policies)
b) OrganizationStructure (establish global or regional prod. manager & support group at headquaters)
c) Corporate Culture (managemetdevelopment must be trasparent, equal chance non-executives for fast track to top management)

6. Chapter 7 : Marketing Organization,
Implementation and Control
Organization Structure
•3 categories in managing foreign activties based on
degree of internalization
1. Little or no formal organization (domestic operation
handle int. transaction on ad hoc basis to saperate
export department)
2. International division (centralize one entitiy for
responsibe in int. activities)
3. Global Organization structured by product, area
function, process or customer.
•6 Global Structure
1. Product Structure (responsibility for marketing prod.
lines)
2. Area Structure (basis on georaphical area)
3. Functional Structure (basis on basic task of firm)
4. Customer Structure (based on distinct worldwide
customer groups)
5. Mixed Structure (combine 2 or more)
6. Matrix Structure (multinational org. for plan, org. ,
control business, resource, strategies and geo. regions.
Implementation
•Locus of decision making
1. Decentralization (sub have autonomy & as profit
center)
2. Centralization (decision making at headquater)
3. Coordinated Decentralization (stratergy from global
or regional headquarters but sub free but need
implement in consultation btwn headquarters & sub)
•Factor affect decision making multinational coop.
1. degree of involvement in int. opreation (low inv.
parent comp, high autonomy of sub)
2. Business firm engaged.
3. Size & improtance of market
4. Human resource capability of firm.
5. Firm country origin & political history of the area.
•Networked Global Organization (avoid prob.
duplication, inefficiency and resistance to idea develp.)
Center of excellence:
1. charismatic (individual who recognized as expertise
in function or area)
2. Focused (single area of expertise, tech or prod. base)
3. Virtual (individual work around the world through
electronic)
•promote Internal Cooperation
- intellectual capital, teacing-how to succeed in
busienss
Control
•action to verify & correct action that differ from
original plans.
•1. Bueaucratic/ Formalized Control
- budget system used for allocation fund among sub,
plan global production capacity and supply, evaluation
performance and info exchange among sub, org. and
headquaters.
•2. Cultural control
-socialization process and informal, personal
interaction
•3. Exercising Control
- control given will vary sub characteristic and location.
- ex. Malaysia - emerging eco. managerial talent in
short supply, headquater participate more in small
decision making.

7. A. Stimuli to Internationalize
•Proactive Motivation (stimuli to attampt strategic
change)
1. Profit Adv.
2. Unique Prod.
3. Tech. Adv.
4. Exclusive Info. (knowledge about marketplace that
not widely share)
5. Eco. of scale (increase int. prod. help reduce cost
prod. for domestic sale)
6. Market Size
•Reactive Motivation (influance to shift enviroment by
change activities over time)
1. Competative Pressure (fear losing domestic market)
2. Overpoduction
3. Stable or Declining Domestic Sales
4. Excess Capacity (eqiupment not fully utilize)
5. Saturated Domestic Market
6. Proximity to customer and ports (closeness to
foreign market help int. activities)
B. Change Agent
•Internal
1. Enlightened Management
2. New Managemet
3. Significant Internal Event
•External
1. Foreign Demand
2. Competition
3. Domestic Distributors
4. Service Firms
5. Business Accosiations
6. Gov. Activities
7. Export Intermediaries (export & trading managemet
companies)
C. Going International
•1. Export
- stage in gradual internationalization (AITEE)
a) awareness to market opprotunity
b) interest in int. activity
c) trial - explore int. market
d) evaluation of export effort
e) export adaption
•2. Export Management Companies
- provide int. marketing service & distribution, get
commission
•Trading Companies
- expand power & wealth with trading right &
protection by naval force in exchange for tax payment
- Sogoshasha from Japan
- Export Trading Companies (ETCs) to improve export
performance of smal & medium size firm in US
•E-Commerce
- abitlity offer G&S in Web
eg. B2B in chinese market user in china (alibaba.com)
Licensing & Franchising
•agreement of licensor permits another to use
intellectual property in exchange of royalty.
- Advantage
1. capital investment not required
2. royalty give income and support R&D
3. reduce risk R&D fail and patent nfringement
litigation.
- Disadvantage
1. Limited Expertise
2. Creates own competitior
3. Allow multinational corporation capitalize older
tech.
- Principle issues in nego licensing agreement :
a) export control regulation
b) confidentialty intelectual property & tech
c) disute resolution
d) specific term, termination & survival right
- Trademark Licensing (permit use name or logo on
merchandise such as clothing)
•Franchising
- franchiser grant other independent entity as
franchisee right to do business in specified manner
- emphasize on prod. sold while business format focus
the way doing business
- franchising concern :
a) standardiztion (not 100% uniformity)
b) protection of total business system
c) Gov. intervention
d) selection & training
D. Foreign Direct Investment
(FDI)
•- investment to expand long-term interest
- Portfolio Investment (puchase of stock & bond
internationally)
•Categorized as:
a) Resource seekers
b) Market seekers
c) Efficiency seekers
•Reason FDI
1. Marketing factor (growth & profit motivations ;
wider market acces to mantain and increase sales ;
Circumvent barries to trade; local customer preference
for domestic G&S)
2. Gov. Incentives (Fiscal incentive in term of tax;
Financial Incentive in fund to loans, building ; non
financial incentives in protection competition through
tariffs, import quotas)
•Type of Ownership
1. Full owenership (outside entity no impact to
management)
2. Joint ventures (collaboration 2 more org. for more a
transitory period, reason for govemental &
commercial)
3. Strategic Alliance/ Partnership (2 more comp. with
common business obj., spread cost & risk, blocking
competitors)
4. Gov. Consortia (gov. support & subsidization,
maintain gobal leadership in some sector)

8. Chapter 10
: Product
Adaptation
1. Core Product
- benefit customer expect from
G&S
- nonrational factor (shine of new
model car) supported
rationalization (excellent resale
value)
2. Augmented Product
- primary physical & non-physical
attributes that increase prod. value
(ex. prod. warrenty, installation
service)
Product Variable (prod.
modification)
- Standardization or Adaptation
- 4 basic approch int. market :
a) sell prod. int.
b) modify prod. for diff countries
c) design new prod. for foreign
markets
d) Incoporate all diff. into one prod.
& intro it globally
* Why Standardization?
1. eco. scale in prod.
2. eco. in prod. R&D
3. Eco. in marketing
4. Shrinking marketplace (universal
brand)
5. Universal Acceptability
6. Global competation
*Why Adaption?
1. Diff. use to diff. contries in
performance specification
2. High degree of cultural
3. Gov. influence (halal labeling)
4. Diff. consumer behavior
patterns.
5. Local competition
Market Enviroment
a) Gov. Regulation
b) Nontariff barriers (prod.
standards, language in label info.)
c) Customer characteristics,
expectations & prferenses
d) Eco. Development (demand
helps determine potential G&S)
e) Competitive Offering (monitor
competitor prod. feature)
f) Climate & geography (ex.
choclate sell in hot/cold climates)
Product
Characteristic
1. Product Constituents &
Content (not violate local
legal regulation
Apperance (adaption in
style, colour and so on)
Branding (symbol used to
diff. its offering to the
compatitor)
- Trademark
Packaging (to protect,
promote and user
convenience, labeling)
Method of operation or
usage (prod. my sold in
domestic but not foreign
market, prod. adjustment)
Quality
Service (prod. warranties,
repair arrangement)
Country-of-Origin Effect
(origin prod. have strong
effect on perception
about foreign prod.)
Company
Considerations
prod. adaption depends
- ability to control cost,
estimate market potential
& secure profit in long
term
analysis of market
ability mantain
consistency in marketing
effort
managerialexpertise in
decide standardization &
adaption
Product
Counterfeiting
Counterfeit Goods (goods
bearing unauthorized
representation like
copyright, trademark that
legally protected in
country)
largest counterfeit goods
is China, Brazil, Taiwan,
Korea & India

9. Marketing Communication Process
1. Encoding (convert mesej to
symbolic form that understandable)
2. Decoding (trasform mesej symbol
back to thought)
3. Noise (distraction)
4. Outcome (how well obj. met in
generate aweness, +ve attitude or
increase purchase)
5. Feedback (analyze success)
International Negotiation
Danger in Int. Nego:
a) Parochialism (misleading perception)
b) Stereotyping (generalize in group in +ve
or -ve)
Uses Internet in nego allow :
- overcome distance
- minimize social barriers
- obtain instant feedback
- nego from home base
- nego with many customer
simultaneously
Process of nego (5 Stage)
1. Offer
2. Informal meeting (discuss term &
acquainted)
3. Strategy formulation (review negotiated
result)
4. Negotiations (competitive or
collaborative)
5. Implementation (choice of location,
negotiator character)
Marketing Communication Strategy
1. Promotional Mix (creating total
communication program for use in target
market)
2. Push Strategies (personal selling, short
distribution channel)
3. Pull Strategies (depend on mass
communication in long distrubution
channel)
4. Integrated Marketing Communication
(use of broad range of promotional tools)
Comunication Tools
1. Business & trade journals and
directories (select media that
efficiency in reach target and cost min)
2. Direct Merketing (make relationship
with customer by direct response
advertising or direct selling)
3. Internet
4. Trade Shows and Mission (event to
display prod. or discribe service to
customer, supplier & so on)
5. Personal Selling (high cost &
immediate feedback)
General Guide to satisfied market
intermediary interaction to work:
- Know the sales scene
- reasearch the customer
- work with culture
- Learn from representative

10. GlobalProductDevelopment
Stage of prod. develp. process :
1. Idea Generetion
2. Screening
3. Product & process Develp.
4. Scale-up
5. Commercialization
Source of Idea Generation:
- company , customer, lead user,
procurement requisition from gov.
- facilitating agent such as advertising
agency
Time Lag btwen prod. develop. & into.
prod. to market depend on :
- the prod. involved
- degree of newness
- customer characteristic
- geographic proximity
- firm-related variables
- degree of commitment of resource
GlobalProductDevelopment
Reason R&D activites abroad:
1. tech. transfer from parent to sub
2. new & improve prod. for foreign
market
3. new product & processes for
simultaneous application
4. new tech. of long term nature
Multidisciplinary teams:
- Max payoff from R&D by
streamlining decision making
- reduce develop. time
- reducive overall cost
- trim manufacture process
3 techniques in int. product testing :
1. Laboratory test markets (use
consumer reactions in controlled
enviroment)
2. Microtest marketing (use
permenent panel consumer &
assesses their willingness to buy after
exposure to media & purchase
incentives)
3. Forced distribution test (rely on
report from consumer reaction to
new product alredy in the market)
Global Product Launch
_ intro. prod. to 3 to more region
within timeframe
- measure success by involvent of
country managers, prelaunch
attention to localization & traslation,
increased education & suport of sales
channel ManagementoftheProduct&BrandPortfolio
Product Portfolio anaylisis
- based on growth rate & market
positions
- used to analyse business entitles.
prod. line or indv. product, market;
prod. & business interlinkages
Advantage prod. protfolio
- view of competitive structure
- guide to global marketing strategy
based on resources
- guide formulation of marketing
objective based on prod. line
- visual communication goal
Disadvantage?
- foreign not same rule as domestic
competition
- diff relation market share &
profitability
- gov. regulation
- local laws
- diff. production sites impact
perceptions of risk and quality
Managing brand protfolio
- co- branding (alliance 2 more brand
in offer)
- 3 choice of branding:
1. use of corporate name
2. use family brand for a wide prod.
line
3. use indv. brand for each item in
prod. line
ManagementofthePordut&BrandPortfolio
Characteristic Global Brand
- strong quality signal & compete on
emotion
- cater need of feeling cosmopolitan
- reflect pro. & personal status of user
- use monetary & human resource to
benefit society
Brand Strategy Decision
- avoid hiding globality by
communicating features of brand to
consumer
- tackle home-country bias
- satisfy basic quality with brand
- carefully crafted brand portfolop
aloow marketers serve market
- portfolop need to be periodically &
regulary assessed
- need to assess term of current sales,
loyalty, potential & trend
Private Brand Policy
- intermediaries own brand prod or
store brand
- method to use this:
1. umbrella branding with
intermediary name
2. saparate brand name for indv.
prod. or product line

11. Difference btween G&S
•G - physical, object, device or thing.
S - Deeds, performance or effort
G - fix in form & require physical distribution
- Intangibility (cannot felt, touch, taste)
- Perishability (cannot be stored for future
usage)
- Customer Involvemet
- Customization (midify, make according to
customer)
Heterogeneity (never same from one delivery
to other)
•Stand-alone service
- compete with goods
- compete with each other
- problem matching service capasity to
variation in demand
- require customer involvement
- sensitivity to customer culture, beliefs &
preferences
- custom made
•Prob. with serivce
1. Quality perception (determine by
employees)
2. Market Transparency (difficulty in
evaluating service provider)
3. Service heterogeneity (vary content &
quality as customer requirement change)
4. Service require new channel of distribution
5. Cultural sensitivity
Global Transformation of Service
•Factor rapid growth of int service trade:
1. reduce gov. regulation in transport, bank &
telecomunication
2. decrease regulation of service industry by
industy group
3. tech advance & increase service trade
opportunity
4. expansion of labor intensive and tech.
incentive
•International Trade Problem
•Regulation of service trade
•Obstacles to service trade
1. Barries to entry
2. Problem of performance
•Coperations & Involvement in
International Service Marketing
•Ecomerce & Intenet help in
•Need for multilingual Website
- cost effective marketing tool
- access new customer and increase sales
- customer-centric company
- generate trust
- demonstrate cultural sensitivity and beat
competition
- show company work, deals internationally
- search engine access
•Service and academia
- high education largest service export in US.
contribute $15.5b to eco.
Corporations and Involvement in
International Service Marketing
•Typical int. service
- financial
- construction, design. engineering
- legal & accounting
- teaching
- management consulting
-tourism service
•Strategic Implication for int. service marketing
1. Indentify the nature and aim of service
offering
2. Communicate the performance of service in
mass or one-on-one level
3. Train org. personnel to convey spirit, value
& atittitudes.
4. address issue of service pricing and
financing
5. Consider the distribution implication of int.
Service