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Professor Roger Palmer, Head of the School of
Management, Henley Business School, UK

The globalization of companies is the involvement of customers, producers, suppliers, and other stakeholders in
the global marketing process. Global marketing therefore reflects the trend of firms selling products and services
across many countries. Drawing on an incomparable breadth of international examples, Svend Hollensen not only
demonstrates how global marketing works, but also how it relates to real decisions around the world.
This book offers a truly global approach with cases and exhibits from all parts of the world, including Europe,
the Middle East, Africa, the Far East, North and South America. It provides a complete and concentrated
overview of the total international marketing planning process, along with many new, up-to-date exhibits and
cases, which illustrate the theory by showing practical applications.

•Extensive coverage of hot topics such as glocalization, born
globals, value creation, value net, celebrity branding, brand piracy,
and viral marketing, as well as a comprehensive new section on
integrated marketing communication through social networking.

•

Brand new case studies focus on globally recognized brands
and companies operating in a number of countries, including
Build-A-Bear Workshop, Hello Kitty, Ralph Lauren and Sony
Music Entertainment.

•

Video cases featuring firms such as Nivea, Reebok, Starbucks,
Hasbro and McDonald’s accompany every chapter and are
available at www.pearsoned.co.uk/hollensen.

Global Marketing

‘Svend Hollensen writes with real authority
and insight having been involved in global
marketing both as a manager and academic.
His book provides a framework within which
managers can develop their own approach to
overseas markets, and is illustrated with cases
and insights that aid understanding.’

Fifth Edition

Global Marketing
A decision-oriented approach

Svend Hollensen

Fifth
Edition

•Real-world examples and exhibits enliven the text and enable the
reader to relate to marketing models.

Hollensen

About the author
Svend Hollensen is Associate Professor of International Marketing at the University
of Southern Denmark and has worked as a marketing consultant for several
international companies and organizations. His other Financial Times Prentice Hall

books include Marketing Management (second edition), published in 2010.

www.pearson-books.com

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GLOBAL MARKETING

Visit the Global Marketing, fifth edition Companion Website at
www.pearsoned.co.uk/hollensen to find valuable student learning
material including:
Full versions of the video case studies
Multiple choice questions to test your learning
Annotated links to relevant sites on the web
An online glossary to explain key terms
Flashcards to test your knowledge of key terms and definitions
Classic extra case studies that help take your learning further



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We work with leading authors to develop the
strongest educational materials in marketing,
bringing cutting-edge thinking and best learning
practice to a global market.
Under a range of well-known imprints, including
Financial Times Prentice Hall, we craft high-quality
print and electronic publications which help readers
to understand and apply their content, whether
studying or at work.
To find out more about the complete range of our
publishing, please visit us on the World Wide Web at:
www.pearsoned.co.uk


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Fifth Edition

GLOBAL MARKETING
A DECISION-ORIENTED APPROACH
Svend Hollensen


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Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:

www.pearsoned.co.uk

First published 1998 by Prentice Hall
Second edition published 2001 by Pearson Education Limited
Third edition published 2004
Fourth edition published 2007
Fifth edition published 2011
© Prentice Hall Europe 1998
© Pearson Education Limited 2001, 2011
The right of Svend Hollensen to be identified as author of this work has been asserted by
the author in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise, without either the prior written permission of the publisher or a licence permitting
restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership
rights in such trademarks, nor does the use of such trademarks imply any affiliation with or
endorsement of this book by such owners.
Pearson Education is not responsible for the content of third party internet sites.
ISBN 978-0-273-72622-7
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Hollensen, Svend.
Global marketing : a decision-oriented approach / Svend Hollensen. —
5th ed.
p. cm.
ISBN 978-0-273-72622-7 (pbk.)

1. Export marketing. 2. Export marketing–Case studies. I. Title.
HF1416.H65 2010
658.8′4–dc22
2010009888
10
14

9 8 7 6
13 12 11

5 4
10

3

2

1

Typeset in 10/12pt Minion by 35
Printed and bound by Rotolito Lombarda, Italy


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BRIEF CONTENTS

Preface
Guided tour
Acknowledgements
Publisher’s acknowledgements
Abbreviations
About the author

PART I

THE DECISION WHETHER TO INTERNATIONALIZE
1
2
3
4

PART II

Global marketing in the firm
Initiation of internationalization
Internationalization theories
Development of the firm’s international competitiveness
Part I Case studies

DECIDING WHICH MARKETS TO ENTER
5

6
7
8

Global marketing research
The political and economic environment
The sociocultural environment
The international market selection process
Part II Case studies

PART III MARKET ENTRY STRATEGIES
9
10
11
12
13

Some approaches to the choice of entry mode
Export modes
Intermediate entry modes
Hierarchical modes
International sourcing decisions and the role of the sub-supplier
Part III Case studies

xvi
xxx
xxxiv
xxxvi
xli
xliv


3
5
49
71
103
146

171
173
203
233
260
296

315
319
334
355
385
405
429

PART IV DESIGNING THE GLOBAL MARKETING PROGRAMME

453

Product decisions
Pricing decisions and terms of doing business
Distribution decisions

Communication decisions (promotion strategies)
Part IV Case studies

459

14
15
16
17

PART V

IMPLEMENTING AND COORDINATING THE GLOBAL
MARKETING PROGRAMME

517
550
585
626

655

18 Cross-cultural sales negotiations
19 Organization and control of the global marketing programme
Part V Case studies

684

Index


739

657
718


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CONTENTS

PART I


Preface
Guided tour
Acknowledgements
Publisher’s acknowledgements
Abbreviations
About the author

xvi
xxx
xxxiv
xxxvi
xli
xliv

THE DECISION WHETHER TO INTERNATIONALIZE

3

1

2

Global marketing in the firm

5

Learning objectives
1.1 Introduction to globalization
1.2 The process of developing the global marketing plan

1.3 Comparison of the global marketing and management style of SMEs and LSEs
1.4 Should the company ‘stay at home’ or ‘go abroad’?
1.5 Development of the global marketing concept
1.6 Forces for global integration and market responsiveness
1.7 The value chain as a framework for identifying international competitive advantage
1.8 Value shop and the service value chain
1.9 Information business and the virtual value chain
1.10 Summary
Case studies
1.1 Build-A-Bear Workshop (BBW): how to manage the global comeback?
1.2 Arcor: a Latin American confectionery player is globalizing its business
1.3 Video case study: Nivea
Questions for discussion
References

5
6
6
7
17
19
21
25
33
36
38

Initiation of internationalization

49


Learning objectives
2.1 Introduction
2.2 Internationalization motives
2.3 Triggers of export initiation (change agents)
2.4 Internationalization barriers/risks
2.5 Summary
Case studies
2.1 LifeStraw: Vestergaard-Frandsen transforms dirty water into clean drinking water
2.2 Elvis Presley Enterprises Inc. (EPE): internationalization of a cult icon
2.3 Video case study: TOMS Shoes
Questions for discussion
References

49
50
50
57
61
65

39
45
47
47
47

65
68
69

70
70


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CONTENTS

3

4

Internationalization theories

71

Learning objectives
3.1 Introduction
3.2 The Uppsala internationalization model
3.3 The transaction cost analysis model
3.4 The network model

3.5 Internationalization of SMEs
3.6 Born globals
3.7 Internationalization of services
3.8 Summary
Case studies
3.1 Cryos: they keep the stork busy around the world
3.2 Classic Media: internationalization of Postman Pat
3.3 Video case study: Reebok
Questions for discussion
References

71
72
74
77
80
84
87
90
95
96
99
100
101
101

Development of the firm’s international competitiveness

103


Learning objectives
4.1 Introduction
4.2 Analysis of national competitiveness (the Porter diamond)
4.3 Competition analysis in an industry
4.4 Value chain analysis
4.5 The sustainable global value chain – CSR
4.6 CSR and international competitiveness
4.7 The value net
4.8 Blue ocean strategy and value innovation
4.9 Summary
Case studies
4.1 Nintendo Wii: Nintendo’s Wii takes first place on the world market – can it last?
4.2 Senseo: creating competitiveness through an international alliance
4.3 Video case study: Nike
Questions for discussion
References

103
104
104
109
114
123
124
126
126
131
132
137
143

143
143

Part I Case studies
I.1
I.2
I.3
I.4

PART II

Zara: a Spanish retailer goes to the top of world fashion
Manchester United: still trying to establish a global brand
Bridgestone Tyres: European marketing strategy
Cereal Partners Worldwide (CPW): the number 2 world player is challenging
the number 1 – Kellogg

DECIDING WHICH MARKETS TO ENTER
5

146
152
155
162

171

Global marketing research

173


Learning objectives
5.1 Introduction
5.2 The changing role of the international researcher
5.3 Linking global marketing research to the decision-making process
5.4 Secondary research
5.5 Primary research

173
174
174
175
177
181


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CONTENTS

6

7


8

ix

5.6 Other types of marketing research
5.7 Setting up an international MIS
5.8 Summary
Case studies
5.1 Teepack Spezialmaschinen GmbH: organizing a global survey of
customer satisfaction
5.2 Tchibo: expanding the coffee shops’ business system in Eastern Europe
5.3 Video case study: Ziba
Questions for discussion
References

193
197
198

The political and economic environment

203

Learning objectives
6.1 Introduction
6.2 The political/legal environment
6.3 The economic environment
6.4 The European economic and monetary union and the euro
6.5 Poverty as a market opportunity

6.6 Summary
Case studies
6.1 G-20 and the economic and financial crises: what on earth is globalization
about? Massive protests during a meeting in London 2009
6.2 Sauer-Danfoss: which political/economic factor would affect a manufacturer of
hydraulic components?
6.3 Video case study: debate on globalization
Questions for discussion
References

203
204
204
213
219
224
227

The sociocultural environment

233

Learning objectives
7.1 Introduction
7.2 Layers of culture
7.3 High- and low-context cultures
7.4 Elements of culture
7.5 Hofstede’s original work on national cultures (the ‘4 + 1’ dimensions model)
7.6 The strengths and weaknesses of Hofstede’s model
7.7 Managing cultural differences

7.8 Convergence or divergence of the world’s cultures
7.9 The effects of cultural dimensions on ethical decision-making
7.10 Social marketing
7.11 Summary
Case studies
7.1 Lifan: a Chinese sub-supplier and brand manufacturer of motorcycles is
aiming at the global market
7.2 IKEA catalogue: are there any cultural differences?
7.3 Video case study: communicating in the global world
Questions for discussion
References

233
234
236
237
237
245
247
248
249
250
252
253

The international market selection process

260

Learning objectives

8.1 Introduction
8.2 International market selection: SMEs versus LSEs

260
261
261

199
200
201
201
202

229
230
231
232
232

254
256
258
258
259


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CONTENTS

8.3 Building a model for international market selection
8.4 Market expansion strategies
8.5 The global product/market portfolio
8.6 Summary
Case studies
8.1 Tata Nano: international market selection with the world’s cheapest car
8.2 Philips Lighting: screening markets in the Middle East
8.3 Video case study: Hasbro
Questions for discussion
References

262
277
284
284
286
291
294
294
295


Part II Case studies
II.1
II.2
II.3
II.4

Bajaj Auto: the Indian motorcycle manufacturer internationalizes its business
The Female Health Company (FHC): the female condom is seeking a foothold
in the world market for contraceptive products
Tipperary Mineral Water Company: market selection inside/outside Europe
Skagen Designs: becoming an international player in designed watches

PART III MARKET ENTRY STRATEGIES
9

296
300
304
309

315

Some approaches to the choice of entry mode

319

Learning objectives
9.1 Introduction
9.2 The transaction cost approach
9.3 Factors influencing the choice of entry mode

9.4 Summary
Case studies
9.1 Jarlsberg: the king of Norwegian cheeses is deciding about entry modes
in new markets
9.2 Ansell condoms: is acquisition the right way to gain market shares in the
European condom market?
9.3 Video case study: understanding entry modes into the Chinese market
Questions for discussion
References

319
320
320
321
327

10 Export modes
Learning objectives
10.1 Introduction
10.2 Indirect export modes
10.3 Direct export modes
10.4 Cooperative export modes/export marketing groups
10.5 Summary
Case studies
10.1 Lysholm Linie Aquavit: international marketing of the Norwegian Aquavit brand
10.2 Parle Products: an Indian biscuit manufacturer is seeking agents and
cooperation partners in new export markets
10.3 Video case study: Honest Tea
Questions for discussion
References


327
329
332
333
333
334
334
335
337
341
348
349
350
352
353
354
354


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CONTENTS


11 Intermediate entry modes
Learning objectives
11.1 Introduction
11.2 Contract manufacturing
11.3 Licensing
11.4 Franchising
11.5 Joint ventures/strategic alliances
11.6 Other intermediate entry modes
11.7 Summary
Case studies
11.1 Hello Kitty: can the cartoon cat survive the buzz across the world?
11.2 Ka-Boo-Ki: licensing in the LEGO brand
11.3 Video case study: Marriott
Questions for discussion
References

12 Hierarchical modes

xi
355
355
356
356
358
361
366
375
379
379

382
383
384
384
385

Learning objectives
12.1 Introduction
12.2 Domestic-based sales representatives
12.3 Resident sales representatives/foreign sales branch/foreign sales subsidiary
12.4 Sales and production subsidiary
12.5 Subsidiary growth strategies
12.6 Region centres (regional headquarters)
12.7 Transnational organization
12.8 Establishing wholly owned subsidiaries: acquisition or greenfield
12.9 Location/relocation of HQ
12.10 Foreign divestment: withdrawing from a foreign market
12.11 Summary
Case studies
12.1 Polo Ralph Lauren: Polo moves distribution for South East Asia in-house
12.2 Durex condoms: SSL will sell Durex condoms in the Japanese market
through its own organization
12.3 Video case study: Starbucks
Questions for discussion
References

385
386
387
387

389
390
391
392
393
394
395
398

13 International sourcing decisions and the role of the sub-supplier

405

Learning objectives
13.1 Introduction
13.2 Reasons for international sourcing
13.3 A typology of subcontracting
13.4 Buyer–seller interaction
13.5 Development of a relationship
13.6 Reverse marketing: from seller to buyer initiative
13.7 Internationalization of subcontractors
13.8 Project export (turnkey contracts)
13.9 Summary
Case studies
13.1 Syngenta AG: a world market leader in crop protection is defending its position
13.2 LM Glasfiber A/S: following its customers’ international expansion in the wind
turbine industry

399
402

403
403
404

405
406
407
409
410
413
415
416
419
420
421
425


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CONTENTS


13.3 Video case study: Eaton Corporation
Questions for discussion
References

427
427
428

Part III Case studies
III.1 Raleigh bicycles: does the iconic bicycle brand still have a chance on
the world market?
III.2 IKEA: expanding through franchising to the South American market?
III.3 Autoliv airbags: transforming Autoliv into a global company
III.4 IMAX Corporation: globalization of the film business

PART IV DESIGNING THE GLOBAL MARKETING PROGRAMME
14 Product decisions
Learning objectives
14.1 Introduction
14.2 The dimensions of the international product offer
14.3 Developing international service strategies
14.4 The product life cycle
14.5 New products for the international market
14.6 Product positioning
14.7 Brand equity
14.8 Branding decisions
14.9 Sensory branding
14.10 Celebrity branding
14.11 Implications of the Internet for the collaboration with customers on product

decisions
14.12 ‘Long tail’ strategies
14.13 Green marketing strategies
14.14 Brand piracy and anti-counterfeiting strategies
14.15 Summary
Case studies
14.1 Danish Klassic: launch of a cream cheese in Saudi Arabia
14.2 Zippo Manufacturing Company: has product diversification beyond the lighter
gone too far?
14.3 Video case study: Swiss Army
Questions for discussion
References

15 Pricing decisions and terms of doing business
Learning objectives
15.1 Introduction
15.2 International pricing strategies compared with domestic pricing strategies
15.3 Factors influencing international pricing decisions
15.4 International pricing strategies
15.5 Implications of the Internet for pricing across borders
15.6 Terms of sale and delivery
15.7 Terms of payment
15.8 Export financing
15.9 Summary

429
435
442
447


453
459
459
460
460
460
465
471
477
480
481
490
493
495
501
502
507
508
508
512
513
514
514
517
517
518
518
518
522
536

537
538
542
544


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CONTENTS

Case studies
15.1 Harley-Davidson: does the image justify the price level?
15.2 Gillette Co.: is price standardization possible for razor blades?
15.3 Video case study: Vaseline pricing strategy
Questions for discussion
References

16 Distribution decisions
Learning objectives
16.1 Introduction
16.2 External determinants of channel decisions
16.3 The structure of the channel
16.4 Managing and controlling distribution channels

16.5 Managing logistics
16.6 Implications of the Internet for distribution decisions
16.7 Special issue 1: international retailing
16.8 Special issue 2: grey marketing (parallel importing)
16.9 Summary
Case studies
16.1 De Beers: forward integration into the diamond industry value chain
16.2 Nokia: what is wrong in the US market for mobile phones – can Nokia
recapture the number 1 position from Motorola?
16.3 Video case study: DHL
Questions for discussion
References

17 Communication decisions (promotion strategies)
Learning objectives
17.1 Introduction
17.2 The communication process
17.3 Communication tools
17.4 International advertising strategies in practice
17.5 Online communication decisions: viral marketing and social networking
17.6 Summary
Case studies
17.1 Helly Hansen: sponsoring fashion clothes in the US market
17.2 Morgan Motor Company: can the British retro sports car brand still be
successful after 100 years?
17.3 Video case study: BMW Motorcycles
Questions for discussion
References

Part IV Case studies

IV.1 Absolut Vodka: defending and attacking for a better position in the global
vodka market
IV.2 Guinness: how can the iconic Irish beer brand compensate for declining sales
in the home market?
IV.3 Dyson Vacuum Cleaner: shifting from domestic to international marketing with
the famous bagless vacuum cleaner
IV.4 Triumph Motorcycles Ltd: rising from the ashes in the international motorcycle
business

xiii

545
546
546
548
549
550
550
551
552
554
557
562
568
569
575
577
577
580
583

583
584
585
585
586
586
589
606
611
618
619
621
624
624
625
626

626
633
641
648


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CONTENTS

PART V

IMPLEMENTING AND COORDINATING THE GLOBAL
MARKETING PROGRAMME
18 Cross-cultural sales negotiations

655
657

Learning objectives
18.1 Introduction
18.2 Cross-cultural negotiations
18.3 Intercultural preparation
18.4 Coping with expatriates
18.5 Knowledge management and learning across borders
18.6 Transnational bribery in cross-cultural negotiations
18.7 Summary
Case studies
18.1 Mecca Cola: marketing of a ‘Muslim’ cola to the European market
18.2 TOTO: the Japanese toilet manufacturer seeks export opportunities for its
high-tech brands in the United States
18.3 Video case study: Dunkin’ Donuts
Questions for discussion
References


657
658
659
669
670
672
676
677

19 Organization and control of the global marketing programme

684

Learning objectives
19.1 Introduction
19.2 Organization of global marketing activities
19.3 The global account management organization
19.4 Controlling the global marketing programme
19.5 The global marketing budget
19.6 The process of developing the global marketing plan
19.7 Summary
Case studies
19.1 Mars Inc.: merger of the European food, pet care and confectionery divisions
19.2 Henkel: should Henkel shift to a more customer-centric organization?
19.3 Video case study: McDonald’s
Questions for discussion
References

Part V Case studies

V.1
V.2
V.3
V.4

Index

Sony Music Entertainment: new worldwide organizational structure and the
marketing, planning and budgeting of Pink’s new album
OneCafé: a ‘born global’ penetrates the coffee industry
Philips Shavers: maintaining shaving leadership in the world market
Vipp AS: an SME uses global branding to break into the international waste
bin business

678
680
681
682
682

684
685
685
690
702
708
711
711
712
713

716
716
717
718
718
723
727
735
739


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SUPPORTING RESOURCES
Visit www.pearsoned.co.uk/hollensen to find valuable online resources:
Companion Website for students
Full versions of the video case studies
Multiple choice questions to test your learning
Annotated links to relevant sites on the web
An online glossary to explain key terms
Flashcards to test your knowledge of key terms and definitions
Classic extra case studies that help take your learning further


For instructors
PowerPoint slides that can be downloaded and used for presentations
Extensive Instructor’s Manual with sample answers for all of the case study question
material, including the extra case studies on the Companion Website
Answers to the questions in the book that accompany the video case studies
Testbank of question material

Also: The Companion Website provides the following features:
Search tool to help locate specific items of content
E-mail results and profile tools to send results of quizzes to instructors
Online help and support to assist with website usage and troubleshooting
For more information please contact your local Pearson Education sales representative
or visit www.pearsoned.co.uk/hollensen.


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PREFACE

Globalization is the growing interdependence of national economies – involving primarily
customers, producers, suppliers and governments in different markets. Global marketing

therefore reflects the trend of firms selling and distributing products and services in many
countries around the world. It is associated with governments reducing trade and investment
barriers, firms manufacturing in multiple countries and foreign firms increasingly competing
in domestic markets.
For many years the globalization of markets, caused by the convergence of tastes across
borders, was thought to result in very large multinational enterprises that could use their
advantages in scale economies to introduce world-standardized products successfully.
In his famous 1994 book, The Global Paradox, John Naisbitt has contradicted especially the
last part of this myth:1
The mindset that in a huge global economy the multinationals dominate world business
couldn’t have been more wrong. The bigger and more open the world economy becomes,
the more small and middle sized companies will dominate. In one of the major turnarounds
in my lifetime, we have moved from ‘economies of scale’ to ‘diseconomies of scale’; from
bigger is better to bigger is inefficient, costly and wastefully bureaucratic, inflexible and,
now, disastrous. And the paradox that has occurred is, as we move to the global context:
The smaller and speedier players will prevail on a much expanded field.

When the largest corporations (e.g. IBM, ABB) downsize, they are seeking to emulate the
entrepreneurial behaviour of successful SMEs (small- and medium-sized enterprises) where
the implementation phase plays a more important role than in large companies. Since the
behaviours of smaller and (divisions of) larger firms (according to the above quotation) are
convergent, the differences in the global marketing behaviour between SMEs and LSEs (largescale enterprises) are slowly disappearing. What is happening is that the LSEs are downsizing
and decentralizing their decision-making process. The result will be a more decision- and
action-oriented approach to global marketing. This approach will also characterize this book.
In light of their smaller size, most SMEs lack the capabilities, market power and other
resources of traditional multinational LSEs. Compared with the resource-rich LSEs, the
complexities of operating under globalization are considerably more difficult for the SME.
The success of SMEs under globalization depends in large part on the decision and implementation of the right international marketing strategy.
The primary role of marketing management, in any organization, is to design and execute
effective marketing programmes that will pay off. Companies can do this in their home

market or they can do it in one or more international markets. Going international is an enormously expensive exercise, in terms of both money and, especially, top management time and
commitment. Due to the high cost, going international must generate added value for the
company beyond extra sales. In other words, the company needs to gain a competitive advantage by going international. So, unless the company gains by going international, it should
probably stay at home.
The task of global marketing management is complex enough when the company operates
in one foreign national market. It is much more complex when the company starts operations
in several countries. Marketing programmes must, in these situations, adapt to the needs and
preferences of customers that have different levels of purchasing power as well as different
1

Naisbitt, J. (1994) The Global Paradox, Nicholas Brearly Publishing, London, p. 17.


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xvii

climates, languages and cultures. Moreover, patterns of competition and methods of doing
business differ between nations and sometimes also within regions of the same nation.
In spite of the many differences, however, it is important to hold on to similarities across
borders. Some coordination of international activities will be required, but at the same time

the company will gain some synergy across borders, in the way that experience and learning
acquired in one country can be transferred to another.

Objectives
This book’s value chain offers the reader an analytic decision-oriented framework for the
development and implementation of global marketing programmes. Consequently, the
reader should be able to analyze, select and evaluate the appropriate conceptual frameworks
for approaching the five main management decisions connected with the global marketing
process: (1) whether to internationalize, (2) deciding which markets to enter, (3) deciding
how to enter the foreign market, (4) designing the global marketing programme and (5)
implementing and coordinating the global marketing programme.
Having studied this book, the reader should be better equipped to understand how the
firm can achieve global competitiveness through the design and implementation of marketresponsive programmes.

Target audience
This book is written for people who want to develop effective and decision-oriented global
marketing programmes. It can be used as a textbook for undergraduate or graduate courses in
global/international marketing. A second audience is the large group of people joining ‘global
marketing’ or ‘export’ courses on non-university programmes. Finally, this book is of special
interest to the manager who wishes to keep abreast of the most recent developments in the
global marketing field.

Prerequisites
An introductory course in marketing.

Special features
This book has been written from the perspective of the firm competing in international
markets, irrespective of its country of origin. It has the following key features:
a focus on SMEs as global marketing players;
a decision/action-oriented approach;

a value chain approach (both the traditional product value chain and the service value
chain);
a value network approach (including different actors vertically and horizontally);
coverage of global buyer–seller relationships;


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PREFACE

extensive coverage of born globals and global account management (GAM), as an extension of the traditional key account management (KAM);
presents new interesting theories in marketing, for example, service value chain, value
innovation, blue ocean strategy, social marketing, corporate social responsibility (CSR),
global account management, viral branding and sensory and celebrity branding;
aims to be a ‘true’ global marketing book, with cases and exhibits from all parts of the
world, including Europe, the Middle East, Africa, the Far East, North and South America;
provides a complete and concentrated overview of the total international marketing
planning process;
many new up-to-date exhibits and cases illustrate the theory by showing practical
applications.


Outline
As the book has a clear decision-oriented approach, it is structured according to the five main
decisions that marketing people in companies face in connection with the global marketing
process. The 20 chapters are divided into five parts. The schematic outline of the book in
Figure 1 shows how the different parts fit together. Global marketing research is considered to
be an integral part of the decision-making process, therefore it is included in Chapter 5, so as
to use it as an important input to the decision about which markets to enter (the beginning
of Part II). Examples of the practice of global marketing by actual companies are used
throughout the book, in the form of exhibits. Furthermore, each chapter and part end with
cases, which include questions for students.

Figure 1

Structure of the book


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What’s new in the fifth edition?

Chapter 1 – the glocalization concept is expanded and the ‘de-globalization’ concept is
introduced as a reverse globalization process.
Chapter 4 – based on a new definition of customer perceived value (CPV) this chapter now
contains a new comprehensive section on value net, which is a company’s value creation in
collaboration with suppliers and customers (vertical network partners) and complementors and competitors (horizontal network partners). Furthermore this chapter introduces
the sustainable value chain, where it is explained how CSR (corporate social responsibility)
influences the international competitiveness of the company.
Chapter 5 – in this chapter a new section shows what pitfalls are connected with doing
market research in India.
Chapter 6 – new updated information on the EU and furthermore this chapter discusses
the BOP (bottom of the pyramid) strategy as a new business opportunity in the world
market.
Chapter 8 – a new section about ‘trickle-up’ strategies (the opposite of the ‘trickle-down’ or
waterfall approach) explains how some multinational companies are taking low-cost products developed for emerging markets and adapting them for developed countries.
Chapter 9 – a new exhibit explains the principles of choosing the ‘right’ entry mode for
Konica Minolta Printing Solutions.
Chapter 12 – this chapter now includes a completely new section subsidiary growth strategies. It also explains the motives for Wal-Mart’s withdrawal from the German market.
Chapter 14 – this chapter explains the ‘time-to-market’ strategies, and introduces the
different parameter strategies that a company can follow in the different stages of the
product life cycle (PLC).
Chapter 15 – introduces an international pricing taxonomy: the local price follower firm,
the global price follower firm, the multilocal price-setter firm and the global price leader
firm.
Chapter 16 – introduces the ‘banana split model’, which shows how much of the retail
value of a product (e.g. a banana) stays with each actor in the value chain.
Chapter 17 – this chapter now includes a new comprehensive section on integrated
marketing communication through social networking.
Chapter 18 – includes a section about a seven-stage cross-cultural negotiation process,
including a discussion about the so-called BATNA (best alternative to a negotiated
agreement).

Chapter 19 – now contains even more extensive coverage of global account management
(GAM), including three models for handling the organizational set-up of GAM.
Furthermore this chapter now also contains an overview model of the total international
marketing planning process.
All existing cases are now up-to-date.
Seventeen completely new cases are available:
Chapter cases (13 new cases): Build-A-Bear Workshop (case 1.1), LifeStraw (case 2.1),
Classic Media (case 3.2), Nintendo Wii (case 4.1), Ziba Design Consultancy (case 5.3), G20 and globalization (case 6.1), Tata Nano (case 8.1), Hello Kitty (case 11.1), Polo Ralph
Lauren (case 12.1), Syngenta Crop Protection (case 13.1), Vaseline (case 15.3), Morgan
Motor Company (case 17.2) and Henkel (case 19.2).
End-of-part cases (4 new cases): Zara (case I.1), Bajaj Auto (case II.1), Raleigh Bicycles
(case III.1), Sony Music Entertainment (case V.1)


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PREFACE

Pedagogical/learning aids
One of the strengths of Global Marketing: A decision-oriented approach is its strong pedagogical features.
Chapter objectives tell the reader what they should be able to do after completing each chapter.

Real-world examples and exhibits enliven the text and enable the reader to relate to
marketing models.
End-of-chapter summaries recap the main concepts.
Each chapter contains two case studies, which help the student relate the models presented
in the chapter to a specific business situation.
Questions for discussion allow students to probe further into important topics.
Part cases studies – for each part there are five comprehensive case studies covering the
themes met in the part. To reinforce learning, all case studies are accompanied by questions. Case studies are based on real-life companies. Further information about these
companies can be found on the Internet. Company cases are derived from many different
countries representing all parts of the world. Tables 1 and 2 present the chapter and part
case studies.
Multiple choice questions.
Video library, including questions.

Table 1

Chapter case studies: overview
(The video case studies can be downloaded at www.pearsoned.co.uk/hollensen)

Chapter

Chapter 1
Global marketing
in the firm

Chapter 2
Initiation of
internationalization

Country/area

of company
headquarters

Geographical
target area

Case study 1.1
Build-A-Bear Workshop (BBW)
How to manage the global
comeback www.buildabear.com

USA

USA, World

✓

Case study 1.2
Arcor
A Latin American confectionery
player is globalizing its business
www.arcor.com.ar

Argentina

World

✓

Video case study 1.3

Nivea (8.56) www.nivea.com

Germany

World

✓

Case study 2.1
LifeStraw
Vestergaard-Frandsen transforms
dirty water into clean drinking
www.vestergaard-frandsen.com

Switzerland

World
(developing
countries)

Case study 2.2
Elvis Presley Enterprises Inc.
(EPE)
Internationalization of a ‘cult’ icon
www.elvis.com

USA

World


✓

Video case study 2.3
TOMS Shoes
www.tomsshoes.com

USA

World
(developing
countries)

✓

Case study title, subtitle and
related websites

Target market
B2B

✓

B2C

✓


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PREFACE

Table 1

Continued

Chapter

Chapter 3
Internationalization
theories

Chapter 4
Development
of the firm’s
international
competitiveness

Chapter 5
Global
marketing
research


Chapter 6
The political
and economic
environment

Country/area
of company
headquarters

Geographical
target area

Case study 3.1
Cryos
They keep the stork busy around
the world
www.cryos.dk

Denmark

World

Case study 3.2
Classic Media
The internationalization of
‘Postman Pat’
www.classicmedia.tv

UK


World

✓

Video case study 3.3
Reebok (9.09)
www.reebok.com and
www.adidas-group.com

USA

World

✓

Case study 4.1
Nintendo Wii
Nintendo’s wii takes first place
in the world market–can it last?
www.nintendo.com

Japan

World

✓

✓


Case study 4.2
Senseo
Creating competitiveness
through an international alliance
www.senseo.com

Netherlands/USA

World

✓

✓

Video case study 4.3
Nike (14.03)
www.nike.com

USA

World

Case study 5.1
Teepack Spezialmaschinen
GmbH
Organizing a global survey of
customer satisfaction
www.teepack.com

Germany


World

✓

Case study 5.2
Tchibo
Expanding the coffee shops’
business system in Eastern Europe
www.tchibo.com

Germany

Germany

✓

Video case study 5.3
Ziba
www.ziba.com

USA

USA, World

✓

✓

Case study 6.1

G-20 and the economic and
financial crises: what on earth is
globalization about? Massive
protests during a meeting in
London 2009
www.g20.org
www.londonsummit.gov.uk

USA

World

✓

✓

Case study title, subtitle and
related websites

Target market
B2B

B2C

✓

✓

✓



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PREFACE

Table 1

Continued

Chapter

Chapter 7
The sociocultural
environment

Country/area
of company
headquarters

Geographical
target area


Case study 6.2
Sauer-Danfoss
Which political/economic factor
would affect a manufacturer of
hydraulic components?
www.sauer-danfoss.com

Denmark, USA

World

✓

Video case study 6.3
Debate on globalization (15.44)
No website available

USA

USA

✓

✓

Case study 7.1
Lifan
A Chinese sub-supplier and brand
manufacturer of motacycles is

aiming at the global market
www.lifan.com/en

China

World

✓

✓

Case study 7.2
IKEA catalogue
Are there any cultural differences?
www.ikea.com

Sweden, Holland

World

Case study title, subtitle and
related websites

B2B

Video case study 7.3
Communicating in the
global world
No website available
Chapter 8

The international
market selection
process

Chapter 9
Some
approaches
to the choice of
entry mode

Target market
B2C

✓

✓

✓

✓

✓

Case study 8.1
Tata Nano
International market selection
with the world’s cheapest car

India


World
(emerging
countries)

Case study 8.2
Philips Lighting
Screening markets in the
Middle East
www.philips.com

Holland

World

✓

Video case study 8.3
Hasbro (9.42)
www.hasbro.com

USA

World

✓

Case study 9.1
Jarlsberg
The king of Norwegian cheeses is
seeking new markets

www.jarlsberg.com

Norway

World

Case study 9.2
Ansell condoms
Is acquisition the right way for
gaining market shares in the
European market?
www.anselleurope.com
www.lifestylesplay.com

Australia, Belgium

Europe, World

Video case study 9.3
Understanding entry modes into
the Chinese market (16.33)
No website available

World

China

✓

✓


✓

✓


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PREFACE

Table 1

Continued

Chapter

Chapter 10
Export modes

Chapter 11
Intermediate

entry modes

Chapter 12
Hierarchical
modes

Chapter 13
International sourcing
decisions and
the role of the
subsupplier

Country/area
of company
headquarters

Geographical
target area

Case study 10.1
Lysholm Linie Aquavit
International marketing of the
Norwegian Aquavit brand
www.linie-aquavit.com

Norway

Case study 10.2
Parle Products
An Indian biscuit manufacturer is

seeking agents and cooperation
partners in new export markets
www.parleproducts.com

Case study title, subtitle and
related websites

Target market
B2B

B2C

Germany,
the rest of
the World

✓

✓

India

World

✓

✓

Video case study 10.3
Honest Tea (8.25)

www.honesttea.com

USA

World, USA

Case study 11.1
Hello Kitty
Can the cartoon cat survive the
buzz across the world?
www.sanrio.com

Japan

World

✓

✓

Case study 11.2
Ka-Boo-Ki
Licensing in the LEGO brand
www.kabooki.com

Denmark

World

✓


✓

Video case study 11.3
Marriott (9.36)
www.marriott.com

USA

World

✓

✓

Case study 12.1
Polo Ralph Lauren
Polo moves distribution for South
East Asia in-house
www.ralphlauren.com

USA

World, Asia

✓

✓

Case study 12.2

Durex condoms
SSL will sell Durex condoms in
the Japanese market through
its own organization
www.durex.com

UK

World

✓

✓

Video case study 12.3
Starbucks (13.04)
www.starbucks.com

USA

World

✓

✓

Case study 13.1
Syngenta Crop Protection
A world market leader in crop
protection is defending its position

www.syngenta.com

Switzerland

World

✓

Case study 13.2
LM Glasfiber A/S
Following its customers’
international expansion in the wind
turbine industry
www.lmglasfiber.com

Denmark

World

✓

✓


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PREFACE

Table 1

Continued

Chapter

Chapter 14
Product decisions

Chapter 15
Pricing decisions
and the terms
of doing business

Chapter 16
Distribution
decisions

Country/area
of company
headquarters

Geographical

target area

Video case study 13.3
Eaton Corporation (9.52)
www.eaton.com

USA

World

✓

Case study 14.1
Danish Klassic
Launch of a cream cheese in
Saudi Arabia
www.arla.com (regarding the
Puck brand)

Denmark

Saudi Arabia
Middle East

✓

✓

Case study 14.2
Zippo Manufacturing Company

Has product diversification beyond
the lighter gone too far?
www.zippo.com

USA

World

✓

✓

Video case study 14.3
Swiss Army (9.07)
www.swissarmy.com

Switzerland

USA, World

✓

Case study 15.1
Harley-Davidson
Does the image justify the
price level?
www.harley-davidson.com

USA


USA, Europe

✓

Case study 15.2
Gillette Co.
Is price standardization possible
for razor blades?
www.gillette.com

USA

World

Video case study 15.3
Vaseline
www.vaseline.com

USA

USA, World

Case study 16.1
De Beers
Forward integration into the
diamond industry value chain
www.debeers.com

South Africa, UK,
Luxembourg


Europe, World

✓

✓

Case study 16.2
Nokia
What is wrong in the US market
for mobile phones – can Nokia
recapture the number 1 position
from Motorola?
www.nokia.com

Finland

USA

✓

✓

Video case study 16.3
DHL (10.53)
www.dhl.com

Germany

World


✓

Case study title, subtitle and
related websites

Target market
B2B

✓

B2C

✓

✓