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Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize, The

Book Description

Why do even the best companies struggle to become as profitable in international markets as they are at home? Because they've fallen for the "mirage" of a truly global market. In fact, the world is comprised of hundreds of intensely local markets that are becoming more fragmented with each passing year. In The Mirage of Global Markets, David Arnold reveals why multinationals are actually losing market share--and how the world is rapidly accelerating towards "segments of one." Next, he offers you a comprehensive new blueprint for maximizing profitability in a world of local markets. You will discover why international marketing has become radically different from conventional marketing, and you will learn how to cost-effectively localize all the decisions that matter most: decisions about market entry, product mix, distribution, promotion, communication, strategy and more. Simply put, The Mirage of Global Markets shows how to globally manage the intensely local marketing programs that are now utterly crucial to your success.

Table of Contents

  1. Copyright
    1. Dedication
  2. Prentice Hall Financial Times
  3. Financial Times Prentice Hall Books
  4. Preface and Acknowledgments
  5. 1. Manage Globally, Market Locally
    1. The International Marketing Genie Escapes from the Bottle
    2. The Evidence on Globalization of Markets
    3. The (Rise and) Fall of Mass Marketing
      1. Economic
      2. Information
    4. The Managerial Challenge—Most Companies Underperform in International Markets
      1. Overestimation of Market Potential
      2. Failure to Commit to the Market
      3. Mismanagement of Local Partners
      4. Failure to Read Market Development Patterns
    5. What Is Different about International Marketing?
      1. The Wide Range of Marketing Functions Demanded of the Local Operating Unit or Distributor
      2. Rapid Growth of Business
      3. Multimarket Decisions
    6. The Dynamics of International Competition
      1. Market
        1. Consumers
        2. Business Customers
        3. Distribution Channels and Communication Media
      2. Industry
      3. Company
      4. Local Profit Maximization
      5. Economies of Scale
      6. Leverage Differentiation
      7. Play in Lead Markets
      8. Offense as Defense
    7. The Dynamics of International Competition—An Example
    8. Summary
  6. 2. Assessing Market Potential: Estimating Market Size and Timing of Entry
    1. Pitfalls in Foreign Market Assessment
    2. A Framework for Assessing Foreign Markets
      1. Marketing-Model Drivers
      2. Enabling Conditions
      3. Cost of Entry vs. Cost of Waiting
    3. Guidelines for Market Research in Assessing International Markets
    4. Forecasting Market Potential
      1. Top-Down Forecasting
      2. Bottom-Up Forecasting
    5. First-Mover Advantage
    6. Sources of First-Mover Advantage in Emerging Markets
      1. Government Relations
      2. Pent-Up Demand
      3. Marketing Productivity
      4. Marketing Resources
      5. Learning
    7. Summary
  7. 3. Strategies for Entering and Developing International Markets
    1. What Is Different about International Marketing?
      1. A Context of Rapid Business Growth and Organizational Learning
      2. The Hierarchical Nature of Decisions
      3. Managing a Multimarket Network
      4. Co-location of Strategic Marketing and Distribution Functions
    2. Objectives of Market Entry
      1. Learning in Lead Markets
      2. Competitive Attack or Defense
      3. Scale Economies or Marketing Leverage
    3. Modes of Market Entry
      1. Export/Import and Trading Companies
      2. “Piggybacking”
      3. Franchising
      4. Licensing
    4. Marketing Entry Strategies—Learning from Emerging Markets
    5. A Framework for the Evolution of Marketing Strategies in an International Market
      1. Greater Commitment at Market Entry
      2. Long-Term Planning at Market Entry
      3. Early Development of Local or Regional Marketing Programs
    6. Summary
  8. 4. Global Branding and Promotion
    1. Global Branding Trends
    2. Benefits of Global Brands to Companies
      1. Convergence in Marketing Systems
      2. Marketing Economies of Scale
      3. Organizational Benefits of Global Brand Management
      4. Summary—The Business of Marketing Is Globalizing
    3. Benefits of Global Brands to Consumers
      1. When Foreign Origin Is Equated with Superior Quality
      2. When Customers Are International
      3. When Brands Are Aspirational and Conspicuously Used
      4. Summary—Global Brands Have a Specific but Limited Appeal to Consumers
    4. What Is a Global Brand?
      1. Global Brand Name and Visual Identity but Locally Adapted Product and/or Positioning
      2. Country of Origin or “Export” Brands
      3. Global Brand with Variable Product—or Vice Versa
    5. Guidelines for a Global Branding Policy
      1. Globalize at the Level of Name and Appearance, but Not Brand Meaning
      2. Allow for Evolution of Brand Position over Time and Variation in Different Markets
      3. Separate Brand Policy from Product Policy
      4. Adopt Global Brand Policies for New Brands
      5. Institute a “Buy Globally, Sell Locally” Organizational Model
    6. Summary
  9. 5. Selecting and Managing International Distributors
    1. The International Distribution Life Cycle
    2. The Distributor Crisis
      1. Lack of Strategic Marketing
      2. Lack of Investment in Business Growth
      3. Lack of Ambition by the Distributor
    3. Distribution Is Different in International Markets
      1. A Wider Range of Functions Demanded of the Distributor
      2. Rapid Growth of Business
      3. Multimarket Decisions
    4. Guidelines for Managing the International Distributor Life Cycle
      1. Retain Responsibility for Marketing Strategy from Market Entry Onwards
      2. Commit MNC Resources to Supporting Market Entry
      3. Choose a Distributor and Structure the Relationship According to Clear Partnership Goals
      4. Ensure Access to Detailed Market and Financial Performance Data
      5. Build Links among National Distributors at the Earliest Possible Opportunity
    5. Looking Ahead—Is There a Future for Local Distributors?
    6. Summary
  10. 6. International Customer Management and the Challenge of International Pricing
    1. The Emergence of Global Customer Management and Pressure for Price Harmonization
    2. The Consequences of International Customer Management
    3. Research into the Performance of Global Accounts
    4. Guidelines for Selecting, Designing, and Implementing Global Account Management Programs
      1. Strategy—Selecting and Designing Global Account Relationships
      2. Assess the Balance of Power
      3. Assess the Customer as a Strategic Partner, Not Just a Sales Account
        1. Strategic Importance
        2. Marketing and Sales Strategy
        3. Top Executive Support
    5. Implementation—Putting the Right Systems and People in Place
      1. Clarify the Role of the Global Account Management Team
      2. Make Incentive Structures Realistic
      3. Pick the Right Global Account Managers: Not Just Supersalesmen
        1. Create a Strong Support Network
        2. Make Sure the Customer Relationship Operates at More than One Level
    6. Reacting to International Pricing Pressure
    7. Summary
  11. 7. The Organizational Challenge of International Marketing
    1. The Evolution of International Marketing Organization Structures
    2. The Organizational Problem—Horizontal and Vertical Processes
    3. Two Examples of an International Marketing Organization
    4. Network Organizations—A Template for International Marketing
    5. Design Principles for International Marketing Organization
      1. Ensure that Somebody Has a Global Overview of Each Product Line or Brand
      2. Design According to Decision Structures
      3. Adopt a Bottom-Up Approach to Marketing Innovation
      4. Invest Heavily in Horizontal Communication Channels and Information Flows
    6. Small Organizations “Born Global” into International Markets
    7. Service Organizations—Different Structures Lead to More Rapid Internationalization
      1. First-Mover Advantage and Service Businesses
      2. Service Businesses as the Enablers of the Mass Market
      3. The Economic Structure of Service Businesses—Localization Yields Higher Returns
    8. Summary
  12. 8. The Big Ideas of International Marketing
    1. Market Knowledge and Marketing Knowledge
      1. Investments in Commitment Produce Returns in Control
      2. The Best Market Entry Strategy Is Not Necessarily the Best Strategy for Market Development
      3. Scale Demands Control, but Not Standardization
      4. The Stage of a Country’s Economic Development Need Not Correlate with Product-Market Development
      5. Product-Market Data Explains More than Country-Market Data
    2. Conclusion—International Marketing Management, Not International Marketing