Fall 2002
SCHOOL OF
BUSINESS ADMINISTRATION
WAYNE STATE
UNIVERSITY
307 Prentis
Bldg.
e-mail:
Attila.Yaprak@wayne.edu
Tel: (313)
577-4842 or (313) 577-4525 Fax:
(313) 577-5486
Office Hours: M
10-13 and 16-18 or by appointment
Website Address: http://www.cis.wayne.edu/cibs/yaprak/home.html
TEXTS:
John A. Quelch and Christopher A. Bartlett, Global
Marketing Managemenet, 4th Edition (Addison Wesley Publishing
Company, 1999).
Jean P. Jeannet and David H.Hennessey, Global
Marketing Strategies, 5th Edition (Houghton Mifflin Company,
2001).
REFERENCE TEXTS
AND COURSE MATERIALS ON THE WEB:
Michael R. Czinkota and Ilkka A. Ronkainen, International
Marketing, 6th Edition (the Dryden Press, 2002).
Mike A. Kotabe and K. Helsen, Global Marketing Management, 3rd Edition (John
Wiley and Sons, 2001).
Attila Yaprak and Hulya Tutek, Eds., Globalization,
the Multinational Firm and Emerging Economies, (The JAI Press, 2000).
George S.Yip, Total
Global Strategy, 2nd Edition (Prentice Hall, Inc.,
2002).
Visit http://www.cis.wayne.edu/cibs/yaprak/home/html
for course materials and handouts.
RELEVANT
SCHOLARLY JOURNALS AND PERIODICALS:
Journal of
International Business Studies, Journal of Marketing, Journal of the Academy of
Marketing Science, Journal of International Marketing, Harvard Business Review,
International Journal of Research in Marketing, Advances in International
Marketing, Business Week, The Wall Street Journal, The Economist.
COURSE
OBJECTIVES AND CENTRAL THEME:
International
Marketing Management is a problem-solving-oriented marketing course designed for
undergraduate seniors and first-year graduate students who expect to undertake
marketing assignments as part of their career paths to general management, and
students planning functional careers in multinational, global, and
internationalizing enterprises.
My
objective in this course is to present a systematic application of
strategic marketing in the global environment. To achieve this objective, I present an integrated treatment of
conceptual and managerial issues in contemporary international marketing based
on the state of the art research in the field. The focus of the course is on the conceptual
formulation of comprehensive marketing strategies by North American, Japanese
and European multinationals competing in global industries.
The integrated presentation of operations and policy issues is blended
with discussions that focus on the operational dynamics of global competition,
highlighting key issues emphasized in the current literature.
The
course is designed to provide an appreciation for cross-functional and
interdisciplinary perspectives. This is because today’s global operations
increasingly require these proficiencies in managing core business processes.
For example, product development teams today include managers from finance and
engineering, even from disciplines such as anthropology and sociology, in
addition to marketing. They also include professionals from multiple national
cultures, such as German and American managers working together at Daimler
Chrysler and American, British, and German engineers working with
anthropologists and demographers on new car projects at Ford Motor Company.
In the course, you will develop a critical appreciation for the external forces that are increasingly shaping the marketing manager’s job in the global economy. You will learn when to use different product/market strategies, when to standardize or adapt marketing programs, and when to centralize or decentralize marketing decision making. You will also learn about organizing international marketing operations for maximum effectiveness. Ultimately, you will develop the skills that are necessary to recognize, analyze, and evaluate marketing problems encountered in global business operations.
This
is accomplished through integrative themes I have built into the content of the
course. International marketing is, in both its theory and practice, a
cross-functional and interdisciplinary phenomenon. It requires, and in turn
facilitates, the development of interdisciplinary,
cross-functional, historical, ethical,
and technological skills. The
acquisition and internalization of
these skills by young managers leads to the development of a global orientation
that is culturally sensitive and strategic in practice, yet based on theory. For
instance, better understanding of the evolution
of the new world economic order and the roles that anthropology, sociology,
politics, legal traditions, the arts, and the norms and values of societies have
played, and continue to play, on global business help foster greater
appreciation for an interdisciplinary perspective on global business.
In light of all these , the course
is designed so that you will learn about:
§ Diagnosing industry globalization and measuring globalization drivers
§
Building global market
participation and localizing marketing activities
§
Designing and marketing global
products and services
§
Designing a global marketing
strategy and executing it effectively
§
Conducting cross-national and
cross-cultural analyses
§
Building the global organization
and assuring high performance
§
Rationalizing the firm’s global
value chain to more effectively compete worldwide
§
Organizing and controlling global
operations, and
§
Coping with marketing challenges in
emerging markets
While in the course, you will also:
The
course is built around a central theme, that developing
and sustaining a superior value proposition
and delivering it effectively to customers worldwide is the key to creating
value for the firm and its stakeholders. We focus on
the role that marketing might play in creating that superior value for
the firm, on strategy, strategizing and global competitiveness, and on the
delivery of the firm’s value proposition more efficiently and effectively than
competitiors in relevant world markets. Our premise is that due to the
confluence of globalization and technology, customers today are becoming
increasingly sophisticated, their preferences and expectations are constantly
changing, and new opportunity segments are continuously evolving around the
globe. To compete effectively in this world, and thus in sustaining long term
growth in both profitability and market share, the global business must learn to
provide superior value to customers worldwide through attracting and retaining a
loyal customer base. We also believe that effective competition around the globe
requires global market orientation, that is, developing and executing
strategy based on a thorough understanding of the firm’s goals and
capabilities, its customers and relevant competitors, and the business context
within which the firm competes. We believe that it is this mindset that provides
the foundation for developing superior competitive strategy, and drives
long-term profitability, and builds competitiveness and growth for the firm
around the world.
In
sum, the course is built around the premise that competing successfully in the
global environment will require that managers (a) excel in identifying and
serving market opportunities effectively; (b) are able to create and sustain
operational capabilities and relationship networks with partners in both inside
and outside the firm; and (c) are capable of guiding and communicating the
firm’s value proposition to current and future customers more effectively and
efficiently than relevant competitors.
COURSE
PEDAGOGY, RESOURCES AND GRADING:
The
course is designed to help students develop problem solving skills in global
business contexts. To help achieve this, it is taught in a lecture
and case discussion format. The
lectures present key concepts in global strategic thinking while case
discussions sharpen students’ skills in analytical problem-solving situations.
While the lectures are key in
internalizing salient content knowledge in global business, case discussions are key in developing the problem-solving and
communication skills valued so highly in management practice. Discussions of
cases are also valuable in familiarizing you (today’s young managers and
tomorrow’s executives) with the kinds of problems typically faced by decision
makers, and all the risks and rewards involved in implementing a chosen decision
alternative, whether in the technology-driven or the service industries.
Given
our focus on decision-making contexts and
the case method, the course is very action-oriented. That is, in addition to the general analysis of decision
making in the firm’s product/market strategy contexts, the course also
addresses tactical issues such as those involved in balancing
standardization of global marketing strategy with local adaptations or rationalizing
the firm’s supply chain worldwide.
Critiques of recommended readings and the cases, completed often in groups, will
help you question the findings of frontier knowledge in the field, and lead you
to new discoveries based on current knowledge. Readings
and cases will help you shape your thinking about the subjects we discuss in
class, help you grasp these better, and increase the value you will gain from
the course. This will facilitate deepening and integration of your understanding
of concepts and analytical tools used in international business management. Intellectual
involvement is, therefore, a key ingredient of effective learning in the
course.
It
is essential that you read the textbook,
and prepare for the cases regularly, along with the assigned readings. The
textbook is one of the best references available on the fundamentals of global
marketing management; it provides an encyclopedia of the concepts, frameworks
and tools that are used in the practice of contemporary international marketing
management. Co-authored by two very highly regarded Harvard Business School
professors of international business, the casebook is clearly the most
comprehensive available on the market today on the practice of international
marketing.
As
soon-to-be successful young marketing managers, you should be reading popular
business periodicals, such as Business Week (www.businessweek.com),
the Economist (www.economist.com), the
Wall Street Journal (www.wsj.com), and the
Financial Times (www.ft.com), regularly. In
addition, you can consult many other resources readily available in electronic
format. Among these, perhaps the best resource is Michigan State University
CIBER’s website (http://globalEDGE.msu.edu).
This resource provides an easy-to-use index, a search engine, and other features
such as the Resource Desk, which serves as an electronic international business
library. Through this site, you can access international business periodicals,
conduct industry or firm-specific research, gather information about specific
markets of interest, and discover both public and private sources of information
about international business that you never thought existed! You can also gain
access to several computer-assisted decision tools for international business
professionals. These tools, which facilitate more effective decision making by
management teams, include CORE V (Company Readiness to Export), DISTRIBUTOR
(used in selecting a foreign agent or distributor), PARTNER (used in selecting
potential foreign joint venture partners), FREIGHT (used in assessing the
capabilities of a foreign freight forwarder), and MAPS (co-developed by myself,
and used in evaluating the feasibility of 15 different entry modes, ranging from
exporting to joint ventures, when entering foreign markets).
There
are also other data sources you might find useful while working on your term
projects in this course, and indeed in your professional lives now and in the
future. These include country-level, trade and direct investment-focused
industry-level, and firm-specific data. Descriptions of these and their website
addresses are given in the Appendix
to this syllabus, under the titles Select
List of Secondary Datat Sources
and Web-Based Exercises and Projects for
Internationalizing Business Courses.
Your
course grade will be a function of your performance in the following:
1.
A case analysis, typically 10-12 typewritten pages, due on the date
the case is discussed in class(100 pts. or 25% of the course grade). You can
write up the Mary Kay
Cosmetics OR the Gallo Rice case,
either individually or as a member
of a group, to fulfill this requirement.
2.
An individually written, in-class course
exam, scheduled for November 25, 2002
(100 pts. or 25% of the course grade). Make-up exams will be given only in
extraordinary, health-related circumstances.
3.
Involvement,
which includes regular attendance,
meaningful contribution to class discussion, and demonstrated interest in
the course (60 pts. or 15% of the course grade). As class participation leads to
significant cross-fertilization of ideas, regular attendance is required. Withdrawals and incompletes are given in
extraordinary, health-related circumstances.
4.
Computerized
market research exercise, a project
involving the use of computerized data bases
described in the Appendiz to this syllabus and/or the use of computer decision support systems,
such as MAPS, described above (40 pts or 10% of the course grade). You can
fulfill this requirement by completing the assignment individually or as a
member of a group.
5.
A group
Term Project, typically 15-20 pages,
due on December 13, 2002 (100 pts. or
25% of the course grade). To fulfill this requirement, each group will select a
global industry such as autos, cosmetics, financial services, food,
pharmaceuticals, etc., will conduct research on two major players in this
industry, and will write a paper profiling current competitive strategy each
player is following globally, and projecting future global strategy for each of
these players
My
expectations of you from each of these course grade components are described in
greater detail in the Appendix to this Syllabus. This document is also available on my
website. Further, samples of each of these are available in my office for
review.
I
will scale the course grade as
follows: 90% and above = A; 80%-89% = B; 70%-79% = C; 60%-69% = D; and 60% and
below = E
As
always, you will get out of the course what you put into it. Active
participation in reasoning and decision making is as important in this course as
writing articulately. Active listening and critical thinking are essential
skills you should develop in your college education. Discussing cases and
preparing the team project can be valuable individual learning experiences
outside of class. You should be prepared to present your analysis and reasoning
behind it to the class when called upon. You should also learn to listen to, and
critique, your classmates ideas objectively, and be prepared to debate the
merits of their viewpoints. Understanding, challenging, and defending points of
view leads to better understanding of others’ ideas, the factors considered by
them, and their interpretations. This type of constructive conflict often leads
to a clearer understanding of the problem, the merits of alternative courses of
action, and most importantly, to the syntheses of ideas that are being
considered. In light of these, I will be evaluating your contribution to class
discussion based on whether your ideas are reasonable, defensible, and supported
by theory or fact; whether your contribution is adding value to the current
discussion; and whether your solution alternatives are action-oriented
contributions.
It
is particularly important that students with work experience in international
business, especially in industries that are experiencing rapid
internationalization, and those with experience in a specific market situation,
such as emerging markets, actively participate in class discussion. Sharing this
type of experience, along with experience in living and/or working abroad, in
class is invaluable in complementing our case analyses, lectures, and readings.
In
sum, you can achieve maximum learning in this course by doing the following: be
an active learner, make full use of the supplementary resources provided you,
use the course materials distributed in class and available on the web to guide
your study of the cases and interpretation of the text, and manage your time
effectively.
COURSE CONTENT
AND ORGANIZATION (with tentative dates)
I.
Conceptual Foundations: Forces That Shape the Global Knowledge Economy
and Implications for Global Marketing Management (September
9 and 16)
Globalization of markets and competition, comparative
and competitive advantages of nations and firms, emerging patterns of trade and
investment, global sourcing flows, the scope of multinational operations, the
multinational enterprise in global industries, the financial environment of
international marketing, the global marketing process. Global market
integration, patterns of multinational cooperation, economic liberalization in
transformation econonies, globalization of technology and knowledge,
internationalization of the firm, strategic imperatives for firms, and global
competitiveness. Social and cultural value change patterns in societies, the
current landscape in global and the marketing function in the new global
economy.
Text:
Chapters 1 and 2.
Readings: Reading
List Part I.
II. Understanding
World Markets: Marketing Research (September 23 and 30)
Global information systems, assessing product/market
potential, methods and analysis in cross-national market research, measurement
problems in scaling and survey research and how to cope with them, managing
global marketing research activities, interpreting research results accurately
(reliability, validity, and construct equivalency concerns in cross-national
research and coping mechanisms).
Text: Chapter 6.
Readings: Reading
List Part II.
III. Understanding World
Markets: Cultural Analysis (October 7)
Cultural profiling, acculturation, emic vs. etic
study of culture, societal evolution toward modernization and postmodernization,
economic and political nationalism, internationalism, and cosmopolitanism,
environmental scanning methods, market clustering, national identity,
cultural relativity, ethnographic vs. positivist research on culture,
global vs. local cultures, national and organizational cultures’ impact on
marketing activities, managing cultural differences effectively.
Text:
Chapters 3 and 4.
Readings:
Reading List Part III.
[Teams formed. Two-page outline of the term project,
previewing its scope and components, is due.]
Case 1:
Ikea (Internationalization process of a Swedish Furniture retailer) (Global
market expansion)
IV.
Formulating a Global Strategy: Developing Markets
(October 14 and 21)
The internationalization process, designing global
strategy and value added chains, global product/market portfolios, marketing in
developed vs. developing countries, estimating foreign market potential, modes
of foreign entry, exporting, contractual, and investment involvement modes.
Text:
Chapters 7 and 8.
Readings: Reading
List Part IV.
Case 2:
Bajaj Auto, Ltd. (Developing foreign entry strategies in the earliest stages of
internationalization) (Expansion from India into nearby markets).
Case 3: Gallo Rice (Developing a marketing strategy for a commodity product in different types of markets) (Italy vs. Argentina vs. Poland).
V.
Formulating a Global Marketing Strategy: Assuring Collaboration along the
Supply Chain
(October 28)
Global logic of strategic alliances, forms, rationale
for, parenthood of, ownership structures in, and behavioral life cycles of
alliances, the role that collaboration plays in international marketing, the
effect of culture on alliances, organizational transformation through alliances,
partnerships and networks in international marketing, relational norms, trust,
and social exchange in collaborative arrangements.
Text:
Chapters 8 and 9.
Readings: Reading
List Part V.
Case 4: Mary
Kay Cosmetics (International Market Assessment for a unique
American marketer) (Expansion into China vs. Japan).
VI.
Formulating a Global Marketing Strategy: Targeting, Positioning, and the
Marketing Mix
A. Formulating
Strategy: Cross-National Consumer Behavior and Segmentation (November 4 and 11)
Cross-national consumer behavior, global demographics, psychographics, consumption patterns, consumer expectations, technology infrastructure and market discontinuities, methods of cross-national segmentation, segmentation and targeting systems, means-ends chaining in cross-national research, the role of the self concept and emotions in understanding consumer behavior, attitude, belief, and value change in societies, the role of product and country images in purchase behavior.
Text: Chapters
5 and 13.
Readings: Reading
List Part VI.
Case 5:
Planet Reebok A (Repositioning a brand which has separate images in different
countries and determining the feasibility of an umbrella campaign) (France,
Germany, the U.K. and the U.S.)
Case 6:
Stella Artois (Global branding of beer, a fast-moving-consumer- product) (Global
rollout)
B. Global Product and Service Strategies (November 18
and December 2) The Course Exam is on
Novermber 25! Thansgiving Recess is November 27 through December 1.
Strategic alternatives in product market portfolios,
international product life cycles, global branding, products and culture,
product/brand personalities and adaptation, niche marketing
in developing country markets, societal demands on products and services.
Text:
Chapters 10, 13 and 14.
Readings:
Reading List
Part VII.
Case 7:
Proctor and Gamble Europe (Development process and subsequent launch
of a consumer product) (Western European rollout with Germany as the lead
market).
C. Global
Pricing and Logistics Strategies (December 9)
Export and transfer pricing mechanisms,
exchange rate issues, price escalation, administered pricing, dumping,
cross-price elasticities, pricing grey market goods, standardized pricing,
channel alternatives, countertrade arrangements, locating, selecting and
motivating channel members, retailing and wholesaling patterns, distribution
coverage, global sourcing, global distribution smoothing.
Text:
Chapter 10 and 15.
Readings: Reading
List Part VIII.
Case 8:
DHL Express (International pricing by a service marketer) (Global strategy)
D. Global Communications and Promotion
Strategies (December 16)
Cultural influences on international
communications, creative challenges in promotion, media mix planning and
analysis, global sales promotion and advertising, cultural influences on
personal selling and sales management, managing international sales personnel,
establishing communications harmony through standardized and adapted promotion
strategy.
Text:
Chapters 11, 12 and 16.
Readings: Reading
List Part IX.
Case 9:
Mastercard World Championship Soccer (Global sponsorships as part of global
communications and brand building programs) (Global rollout)
IX. Term
Projects Due (December 16)
Have a Happy
Holiday Season and a Healthy New Year!