Prerequisites: Marketing Management 630:508 (No Exceptions!)

Course Description/Objectives
This course attempts to prepare you for the 21^st Century and become an effective manager overseeing global marketing activities in an increasingly competitive environment. We will be taking a strategic approach reflecting the growing importance of global corporations. Global Marketing is a dynamic area with critical events happening continuously around the world. Consider current changes that affect international business: the fall of the iron curtain, the unification of Germany, the free markets throughout Eastern Europe, the economic crisis in the Asian markets, the new relations with China, and the list goes on daily. The course will focus on eight key areas:
 
 

* A conceptual overview of global marketing. What are the main concepts and buzzwords? * How to use current information sources on the World Wide Web. What reliable information is available? * How to analyze, understand, and be more effective in the global marketing environment. * Targeting global markets. * Sourcing and global production strategy. * Formulating global marketing strategies. * The global marketing mix. * Managing and leading the global marketing effort.

The objective of the course is to develop your knowledge and understanding of the global marketing environment and of concepts, and tools, and theory that will prepare you to take responsibility for successful global market penetration of your organization. The perspective of the course is managerial; i.e. the ability to identify opportunity, resolve problems, and implement solutions and programs. Each night's class meeting will introduce you to several concepts used in Global Marketing, relating these to managerial decisions throughout the world. We will build skills involving cultural awareness, the assessment of political risk, sources of global information, the intricacies of tariff and non-tariff barriers, and hopefully the identification of the self-reference criterion.

It is recognized that many of you are busy professionals with career and possibly family obligations. If you must miss part of a class, it is preferable that you attend a partial session if possible. Please inform me of any expected absences. Many of your companies are likely to be involved in some area of Global Marketing, or you may be interested in pursuing a career in international trade at some point in your career. Please feel free to raise company issues and individual interests in class.
 

Text: Global Marketing Management, Masaaki Kotabe and Kristiaan Helsen (1998), New York: Wiley.

This text has been chosen for its comprehensive information, presented in a readable, accurate fashion. The authors have built an informative Web site that we will use often in class. The address is http://www.wiley.com/college/kotabe

There is a section of links to Global Organizations and another that presents the Fortune Global 100; these are a handy reference for course assignments. We will also cover some of the Internet exercises in class; check them out!
 
 

Library Reference Section: 1. CULTUREGRAM SERIES FROM BRIGHAM YOUNG UNIVERSITY – REF IN LIBRARY 2. EXPORTERS’ ENCYCLOPEDIA is used as the source for the handout on exporting  Interactive Resources: 1. RDS Business and Industry Database on the RU Library Web site – this is one of the best links to trade and global information. Keywords are accessed through a series of pull-down menus. 2. Syllabus on my web site. The links on the web site have been tested and used. These are reliable sources that contain accurate data. NOTE: searching on the Web should be done with care! There are many web sites that are inaccurate, biased, and worse.

1. My office at school is Business and Science 219. I am generally in on class days. Please leave a message or call my home office if you need to reach me in an emergency. If you need an appointment and cannot make these office hours, please see me to schedule another time. Email is the fastest way to reach me.

2. Telephones: Rutgers Office Phone: 856.225.6592 Rutgers Fax: 225-6231

Home Office Phone/Fax: 856.429.1045 (ans. machine, late calls ok)
E-mail: ckaufman@camden.rutgers.edu

E-mail is the best way to reach me. You all have email accounts available to you, and you will need to use your account for this class. You will be sent class notes, questions, and schedules via email periodically throughout the semester. If you do not know how to use email, or are uncomfortable with it, please schedule an appt. with me. It will take about 5 minutes to get you started, and should save you considerable time throughout the semester.
 

Teaching Methodology

Specifically, the course will build on your expertise in business, my expertise in international research, readings, films, and class discussions to build strong analytical skills for global evaluation. The text contains several cases involving well-known corporations and their global strategies. Specific cases and/or exercises will be considered; discussion leaders will be assigned to lead the analysis. Guidelines will be given in class. Class participants will be expected to be up-to-date in class readings and make connections between current world events with topics discussed in class. You are encouraged to bring in examples that you have found, observed, or experienced in your own careers or personal lives.

In short, our job this semester is to equip you with several tools in Global Marketing and provide you the opportunity to exercise these skills in case discussions, class exercises, and a mini-case competition. These skills include: the use of several specific Web sites providing a wealth of international information, the adaptation of traditional marketing research techniques to international settings, the detection of subtle differences in cultural behaviors, the diagnosis of appropriate business behaviors in other cultures, the use of the nuts and bolts of export documentation, and the technical understanding of trade barriers.

 
 
 
 
 
 
 

	Contribution	When?
Participation	10%	Every night
Midterm Examination	15%	Feb. 22
Global Products Roundtable	15%	March 21
Case Executive Summary	10%	One week following your assigned night as discussion leader
Final Case Presentations	25% (a group grade)	April 25 - Toys "R" Us Goes to Japan
Final	25%	Tuesday, May 9th, 6:00 to 9:00 pm
Total	100%

 

Class Participation

Class participation is encouraged and sought. You are most likely participating in businesses that have some strategic connections to the global markets; some of you are resident experts on some specific global area. Perhaps you have some background experience, whether culturally, legally, managerially, etc. This is your class and you should make it as interesting as possible. In terms of grading, it is assumed that everyone starts out in the middle. Negative participation (disruption, sleeping, reading, etc) detracts from everyone's time; points will be deducted, rather than added for these types of behaviors. Thus the range of class participation grades is from -10 through +10. This can substantially affect your grade.
 

Classroom Policies/Expectations

Academic Dishonesty Policy: Cheating in any form will result in a grade of "F" being submitted in this course. Cheating is just that: it cheats YOU of learning and understanding the material covered in class.

Testing: You are expected to be in class at the scheduled exam times. The instructor MUST be notified IN ADVANCE if you are unable to take an exam on time. Make-up tests are given only in the case of an extreme emergency or serious illness. Substantiation will be required.

Incompletes and Problems: If you find that you are having trouble completing course work or need further explanation of class topics, please schedule an appointment with the instructor. If you need this class for graduation, you should be sure that your performance is up to standard throughout the course. It is TOO LATE to wait until the last week of classes to ask for help. Office hours are held throughout the ENTIRE semester for this purpose. "Incompletes" will only be given through prior consultation with the instructor, under extreme circumstances.

Class attendance is expected; scheduling make ups and/or copying class notes ARE YOUR RESPONSIBILITY. Films and in-class handouts are part of the course material, and are considered eligible for inclusion on class exams. On occasion, class attendance will be taken during the course of the class -- such information may be used in the grading process.

            Assignments:  Planned Schedule (dates are approximate and subject to change)
 

Week - Chapter (s) - Topics

1, Jan. 18th Introduction: Nuts, Bolts, and Numerous Concepts

A1. Update on Asian Markets and the Euro
A2. Chapter 1- What is Global Marketing? When is a firm truly global? Theories
B. Chapter 2 - The Global Economic Environment: what data can we use?
    - global organizations and terms; BEMs, Multinational Mkts, WTO, FTAs
C. World Wide Web Workshop - Internet Exercises
D. Class survey form; Case Sign-up sheets; Class Project Groups
E. Film: Going International Part I
http://www.wto.org
http://www.usitc.gov
http://www.un.org
http://www.toyota.com
http://www.ppc.org/html/map.html
 

2, Jan. 25
A. Chapter 3 - Financial Environment: IMF, SDRs. World Bank, Purchase Power Parity
What determines exchange rates and currency fluctuations? Can they be forecast?
How do you contribute to the Balance of Payments?
http://www.imf.org
http://www.worldbank.org

B. Chapter 4 - The Cultural Environments: cultural universals
What is a culture anyway? The impact of roles, norms, values, beliefs,
artifacts, customs, and rituals - pp. 90-91
The languages of space, time, friendship; High and low context cultures
Zeroing in on the Self-Reference Criterion: Does it impact your judgment?
Working through some negotiation strategies
Going International Films II - how does culture affect expected behavior??

http://www.jetro.go.jp/it/e/pub/index.html
http://www.odci.gov/cia/publications/factbook/index.html
http://www.city.net

Let's consider the specific case of Saudi Arabia:  a) Look at general cultural information, b) Look at actual shopping information
http://www.excite.com/travel/countries/saudi_arabia/?page=factsheet
 

CULTUREGRAM SERIES FROM BRIGHAM YOUNG UNIVERSITY – REF IN LIBRARY
 

3, Feb. 1
Chapter 5: The Political-Legal Environment: a look at economic organizations
Identifying Political Risk and Politically-vulnerable Products – Web sites
Cooperation vs. Protectionism: working together vs. creating barriers
Patents and Trademarks: Protecting Intellectual Property
Bribery, Corruption, Expropriation, etc - Is it WORTH going global??
http://www.agora.stm.it/politic/
http://www.prsgroup.com/
Http://www.europa.eu.int/

Chapter 6: Global Marketing Research: Secondary and Primary Data
What kind of information is needed for making global decisions?
What is reliable information? Where can I get info I can trust? Triangulation
What kinds of marketing research techniques will work? Focus groups, surveys, sampling
The Case of South Africa.
http://www.sabc.co.za
http://www.mac.doc.gov/tcc/country.htm
 

4, Feb. 8 Week 4:
Chapter 7: Global Segmentation and Positioning
Criteria for Market Segmentation, number of segments
Positioning and Marketing Mix; see positioning map on page 187
Stages of Economic Development - Rostow, do all countries fit?
Tools for Country Segmentation: Cluster Analysis, Regression
http://www.un.org/Pubs/CyberSchoolBus/infonation/e_infonation.htm
http://www.marks-and-spencer.co.uk/default.asp

Chapter 8: Global Competitive Analysis
Growth of information technologies
What are the drivers for globalization?
Global Marketing Strategies - what are the approaches of different firms?
Applicability of SWOT analysis
 

5, Feb. 15th Week 5:
Chapter 9: Global Market Entry Strategies
What are the ways which firms can enter markets?
What types of factors affect their choices?
What conditions lead to one entry strategy being better than another?

Review for Midterm
Internet Exercises - time to catch up
 

6, Feb. 22 - Week 6
First Exam - Chapters 1-9, 6 pm - 7:30

Chapter 10: Global Sourcing Strategy
Is it enough to obtain the cheapest possible materials for your product?
Does the International Product Life Cycle Theory really work?
Let’s consider Honda: pp. 276-277
What is meant by the "value chain" and how is it useful in business?
http://www.honda.com
 

7, Feb. 29 - Week 7
Chapter 11: Global Product Policy Decisions: Developing New Products for Global Markets
Global expansion strategies, standardization vs. customization
Characteristics of successful innovations - case example of Colgate, p. 317
What are test markets like in global product development?
http://www.campbellsoup.com
http://www.kelloggs.com

Chapter 12: Marketing Products and Services
Are there any truly global brands? How many have you ever used? What about local brands?
How are product features, adaptations, chosen for specific global markets?
Product piracy is a reality: strategies to protect your intellectual property
Does country-of-origin make a difference to consumers?
 

8, March 7 - Week 8
Chapter 13: Global Pricing
What is the pricing strategy of the firm, and how is it related to Global goals?
How are prices established in foreign markets? What is price escalation?
What are parallel imports and gray markets?
How are Devaluations and Revaluations taken into account?
What are Letters of Credit? How is transfer pricing added to the computation?
How do antidumping legislation and countervailing duties affect pricing?
What do you use for trade when your currency has little value? types of countertrade
http://www.landsend.com/
See Japanese Pricing Study at http://www.stat.go.jp/15i2.htm

First Discussion Case - Discussion Team 1
Starbucks Coffee: Expansion in Asia/ Products and their cultural uses
 
 

9, March 21 - Week 9
New Product Roundtable: Make a 10 minute presentation on the product of your choice.
Chapter 14: Communicating with the World Consumer
Look at all the bloopers on pages 402-403: can these be avoided? Slang? Mistranslations?
How different are advertising regulations in other countries? Themes in ads?
How to work with global advertising budgets
Standardized vs. adapted advertising - is it really that simple?
How do media differ in other countries? How do ad expectations differ?
What other forms of promotion are used? Some are less familiar in the U.S.

http://babelfish.altavista.com/
http://babelfish.altavista.digital.com/cgi-bin/translate
http://www.levistrauss.com/index_sitemap.html - go to World of Advertising
http://www.pepsi.ru/ - see Pepsi's Website in Russia
http://www.euro.huggies.com/
http://www.adage.com – go to International Daily

Second Discussion Case- Discussion Team 2
Pharma Swede: Gastirup/ Assessing Pricing Structures in Global Markets
 

11, April 4 - Week 11
Chapter 16 - Global Logistics and Distribution
What are the key factors? Distance, transportation, exchange rates, intermediaries, tariffs
The strategic choice of Free Trade Zones, maquiladoras, tariff strategy
What types of characteristics are needed in retail markets?
How different are channels in other countries? The Hungarian case
How are distribution networks defined, classified in other markets?
How is a viable system of trading relationships developed?
Ports of Philadelphia and Camden: http://www.ppc.org/
 

Third Discussion Case - Discussion Team 3
Anheuser-Busch International Inc: Making Inroads into Brazil and Mexico
Branding and Advertising Strategies
 

12, April 11 - Week 12
Chapter 17 - Export and Import Management
Developing an exporting strategy: using tariff and non-tariff barriers
How is an export market chosen? Do we have enough expertise?
What skills do we have in the chosen markets? Gray markets
Wading through the exporting documents and understanding idiosyncracies
http://www.bxa.doc.gov/ - Bureau of Export Administration
Where to find regulations and technical information
http://www.mac.doc.gov/tcc/country.htm
How complex are export documents? What is an FTZ?
http://www.tradeport.org/ts/

Fourth Discussion Case - Discussion Team 4
Ford Motor Company and Die Development: Differences in Japanese Suppliers
 

13, April 18 - Putting it all together
Chapter 18 - Organizing Global Marketing Efforts
What are the structures of various types of organizations? Centralize or Decentralize?

Review; Groups Assigned time to work on Final Presentations
 

14, April 25 Final Case Presentations:Toys "R" Us Goes to Japan
 

Final Exam: Tuesday, May 9th, 6:00 to 9:00 pm

In order to stimulate discussion and gain experience with global concepts, four in-class cases will be discussed on assigned nights. Each class participant will be assigned to a Discussion Team for one of the assigned cases; two to three persons will be assigned to each case. I will make a list available so that you can each sign up for a night as best fits your schedule. NOTE: This is not a traditional case presentation. Instead, it is a teaching case, in which you are required to use appropriate course tools and Web sites in teaching the class HOW to solve the case.

1. As Discussion Team members, you are responsible for the following:

a. Reading the case thoroughly, and preparing a 5-minute summary of the case, to be presented to the class with overheads. Be clear and direct; do not just repeat the case.

b. Leading the discussion, developing a set of discussion questions that involves the class. That is, your grade depends on how well you stimulate the class to work through the solution. Be creative! Use questions, matrices, Websites, role-plays, etc. in covering the following areas. Remember, there are certain key points that each case is designed to teach and to illustrate. You need to figure out what each case is attempting to teach and which skills are to be learned.

    1.) Central Problem: Define clearly and concisely the basic problem in the situation.

    2.) Analysis of Situation: Lead the class through a SWOT analysis

    3.) Secondary Data: Identify, justify, and use five sources of information which you feel are the most useful and appropriate. Show the class
          how you did it. Involve them in learning how these work!   Be sure that the class knows how to find them.

    4.) Identify Alternative Strategies: Based on the analysis in 2, identify possible alternative strategies to cope with the problem defined in 1.
          Involve the class in evaluating the pros and cons.

    5.) Course of Action: Get the class involved in a discussion of recommended courses of action.

c. You are responsible for bringing the class to closure on the case. I will take the perspective of the Board, who will evaluate your analysis.
 

2. Prepare your own individual 1-2-page (approximately) word-processed overview of the day's case, covering the points listed above. Tell me how your Discussion Team planned to create class discussion and what the key global concepts were that you wanted to teach. Did you accomplish your goals? This should be handed in the week following your role as discussion leaders, so that you can incorporate the comments of the class and the overall discussion success/failure.
 

Note 1: While you will work in small groups to lead the discussion on your case, the report which you prepare will be your individual writeup, using the discussion topics you have developed.

Note 2: You have 45 minutes to complete the Discussion. If you go overtime, the class will have to stay late. It is your responsibility to keep discussion on track.
 
 

Relevance and Skill-Building: A difficult and much-needed skill in Global Marketing is the ability to discover and to think about consumers' and organizations' needs in different cultures, to interpret those needs into products, and to market those products in ways which are meaningful to their target markets. This investigation asks you to put yourself in the place of the foreign consumer, encountering your product for the first time.

Go to a shopping area that specializes in the native tastes of some ethnic group. For instance, Yaohan Mall in Englewood Cliffs is directed specifically at Japanese consumers who want authentic Japanese products (this is one of my favorites - directions are attached). Other areas include Chinatown in Philadelphia and other ethnic neighborhoods. There are shops throughout South Jersey which also specialize in certain ethnic products, such as Indian, Polish, etc. Please see me if you need suggestions and/or directions.

1. Find/buy a product which you cannot identify; write down your first impressions of what you think the product is made of and what it is used for. (Bring it to class for discussion.).

2. What cues are there on the product? If it is packaged, what information can you find? If it is not packaged, did the store signs give you any information? What information would you want as a consumer?

3. Describe what section of the store your product is placed in, i.e.: describe what products were near it. (If you can not recognize these products, describe what they look like).

4. Attempt to interview store management or one of the retail clerks to find out what the product really is (you may not always be successful in this attempt!) If you fail to find out, please select another product whose identity can be explained to you.

5. After finding out what the product is, consider whether or not the product would be marketable in the United States. Place yourself in the role of the product manager who is searching for products to import to the United States. Be prepared to describe why or why not you would want to proceed with this product:

a. Give the pros and cons
b. Tell if the product would be standardized, adapted, or completely changed
c. Discuss the types of data that you would want in order to make your presentation to management. Remember, your decision is simply a preliminary call whether to proceed with a market investigation!!

6. Be sure to include all this information in your report. Be prepared to speak about 5-10 minutes on what you found.

7. Please hand in the product to me with your paper. I will return them to you, unless you want to donate them to future classes. Please indicate your choice on your paper.

                        Directions to Yaohan-Japanese Shopping Mall in Edgewater, NJ

The total trip takes about 2 hours each way. It is a fairly easy drive. Take the New Jersey Turnpike north to exit 16 East. Follow Lincoln Tunnel signs to 495 East. Then take J.F. Kennedy Blvd. North - follow Bergen County signs. When you see a sign for JFK on your right, you need to turn on JFK to the LEFT (There will be no sign saying to turn left - this crosses the highway and goes under the overpass). Stay on JFK for a few miles; go to 60th Street, and make a right on 60th Street. 60th St. becomes Hillside, which curves to the left and becomes River Rd. Go a few miles. Yaohan is on the right - there is the parking lot first, behind it (to the east) is a large low white building (the supermarket). On the north side of the parking lot are smaller stores (including a bookstore, and small department store). (If you reach the George Washington Bridge, you've gone too far.) The supermarket is especially interesting, and there is a food court for a good and interesting meal
 
 

Toys "R" Us has gone through several significant experiences since the case was written for your text. It has had a landmark impact on the face of Japanese retailing. We will develop a set of key issues for your group to consider. Each group will select a focused topic that is related to the members’ interests.

The class as a whole will analyze one comprehensive case that challenges you to use all the skills that we have been developing all semester, while this time working as part of a team. Each group will have approximately 30 minutes to present their analysis, leaving time for questions from the rest of the class, which will act as the Board of Directors. The format is similar to the weekly cases that we have been discussing throughout the semester. Your presentation must include:

1.) Central Problem: Define clearly and concisely the basic problem in the situation. Identify main issues eg., increased competition, changes in underlying consumer tastes, and do not be confused with "symptoms" - - e.g., declining unit share, lower profitability.

2.) Analysis of Situation: Use the information and facts provided in the case to analyze the situation - - the market, demand (buyer) competition, company strengths and weaknesses.

3.) Identify Alternative Strategies: Based on the analysis in 2, identify possible alternative strategies to cope with the problem defined in 1. Evaluate the pros and cons of each alternative.

4.) Course of Action: Recommend a course of action comprising recommendations concerning marketing goals, strategies, organizational changes, budgets, further research if needed, etc. which you would consider most appropriate to solve the problem identified in 1, taking into consideration the analysis made in step #2. Include some specifics regarding how the recommendations may be implemented.
 

Responsibilities: Prepare a 5-10 page (approximately) word-processed overview of the case, covering the points listed above. This is due the night of your presentation. You are expected to use professional-style visuals, such as Powerpoint. Please see me if you need assistance with preparation of visuals. You must also prepare a one-page outline of your presentation to be distributed to the class. Use executive summary style.

Working with groups is not always easy. There are some suggestions that can help you with this. The group work experience is considered to be an important part of this course, as no matter where you end up, working with other people is likely to be an important par to your job. Get names, phone numbers, working schedules, etc. to facilitate your meeting times. Additionally, each group member is EQUALLY responsible for the case outcome. Under extreme circumstances, groups are allowed to "fire" group members who do not meet their responsibilities; this can only be done in consultation with the instructor.

Each team member must also complete and hand in a "Peer Rating" Form, in a sealed envelope. These are for my information, and will be kept confidential. They will be used in judging group effectiveness and individual member contribution.
 
 
 
 
 
 
 
 
 
 

Each team member is required to submit a peer rating form. This form is to contain an evaluation of each of his/her team members. The form will be kept in strict confidence. In the space provided below please fill in the names of your team members and record your peer rating for each. Submit the form to me on or before the date your case is due.

The peer rating is based on a total awardable point base of 100 points for all team members other than yourself. You should award the 100 points among your team members based on a consideration of the following:

1. Willingness of the individual to carry out jobs assigned.

2. Ability of the individual to meet deadlines.

3. Cooperation with other team members.

4. Quality of the individual's work.

5. Individual's overall contribution to case reports and discussion and completion of the group project.
 

---------------------------------------------------------------------
Team Members Points Awarded
---------------------------------------------------------------------

1.

2.

3.

4.

5.

------------------------------Total-----------100---------------.

Additional Comments:

(Use reverse side if necessary)

_______________________________________

Signature of the team member doing evaluation.
 
 
 

Name _______________________________________ Global Marketing Strategy Spring 2000

Sign-up date for Discussion Team Leader: ___________________________________

a. March 7 – Starbucks Coffee
b. March 28 - Pharma Swede: Gastirup
c. April 4 - Anheuser-Busch International Inc
d. April 11 - Ford Motor Company and Die Development

Suggested group members for Final Case Presentations (list up to three persons):
1._________________________________________________________________
2._________________________________________________________________
3._________________________________________________________________

NOTE: Each person in a Discussion Team helps to lead the case discussion on a specific night. You should divide up the work and are free to work independently after doing so. Your writeup is individual and so is your grade.

Your Final Case Group instead presents a coordinated paper and oral presentation. This is a true "group" that is expected to work together.

Best way to reach you: Tel: _________________________________
Email: _________________________________
Fax: _________________________________

Your major:

Other Marketing Courses taken in the past?
 

Other Marketing Courses being taken this semester?
 

Any international experience or skills? Foreign language ability?
 

What are your goals for this course? Is there any skill in particular that you would like to acquire?
 

What would you like to learn in this class? Any specific topics of interest?
 

Employment?____________________________________________________________

Approximate Hours per Week______________________________________________

Is your company involved in global business? _________________________

Any expected absences?? ________________________________________________
 
 

Names: 2-3 persons per case	CASE
Date: March 7th A. B. C.	Starbucks Coffee: Expansion in Asia/ Products and their cultural uses 1. Discuss the role of coffee in various markets. What types of cultural roles does it play? 2. Give an overview of the Asian Financial Crisis 3.  Given the Asian Financial Crisis presented, what strategies can Starbucks use in order to build consumer demand?
Date: April 11th A. B. C.	Ford Motor Company and Die Development: Differences in Japanese Suppliers
Date: March 28 A. B. C.	Pharma Swede: Gastirup:  Assessing Pricing Structures in Global Markets
Date: April 4 A. B. C.	Anheuser-Busch International Inc: Making Inroads into Brazil and Mexico Branding and Advertising Strategies