1. GLOBAL MARKETING MANAGEMENTby
MASAAKI KOTABE
and
KRISTIAAN HELSEN
John Wiley & Sons, Inc.
1998

2. GLOBALIZATION IMPERATIVE Chapter One
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3. 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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4. Overview of Globalization Imperative
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5. 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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6. 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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7. 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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8. 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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9. 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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10. 3. Evolution of Global Marketing (cont)
Export Marketing
ethnocentric
International Marketing
polycentric
multidomestic marketing
Multinational Marketing
regiocentric
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11. 3. Evolution of Global Marketing (cont)
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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12. 4. APPENDIX Comparative Advantage Theory
International Product Cycle Theory
Internalization / Transaction Cost Theory
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13. 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 traded goods
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14. 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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15. INTERNALIZATION/ TRANSACTION COST THEORY
multinational companies
appropriability regime
dominant design
manufacturing and marketing ability
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