NYU Stern School of Business

Undergraduate College

C55.0064.002: INT'L MARKETING MGMT

Fall 2010

Instructor Details

Fischer, Eileen

efischer@stern.nyu.edu

646-591-8760

T,Th 12:30 - 2:00 and by Appt.

KMC 7-154

 

Course Meetings

TR, 11:00am to 12:15pm

KMC 5-140


Final Exam:

Schedule exceptions
    Class will not meet on:
    Class will meet on:

 

Course Description and Learning Goals

COURSE OBJECTIVE

 The purpose of the course is to examine the specific issues involved in developing an international marketing strategy and in conducting marketing operations on an international as opposed to a “domestic” scale. Attention will be focused on problems such as identifying and evaluating opportunities in international markets, developing and adapting marketing tactics in relation to specific national market needs and constraints, and coordinating strategies in global markets. A strategic planning approach will be adopted.

LEARNING GOALS

 The course is designed to teach students how to:

 

Course Pre-Requisites

Introduction to Marketing C55.0001

 

Course Outline

Course Outline

 

Date

 

   Session Topic

 

Readings

 

Assignment

 

9/7

Introduction: Operating in a Global Environment

 

 

 

9/9

The Evolution of Global Marketing Strategy

Gillespie,  Ch 5

 

Read:  Case 5.1 and 5.3

 

Form teams for project

 

Phase 1  -- Analyzing Opportunities and Selecting Countries

 

9/14

Overview:  Country and Culture Factors

 

“Getting Real About Fakes”  WSJ, 8/17/09

 “Humor is no Laughing Matter”

 

“Expanding Abroad? Avoid Cultural Gaffes, WSJ 1/19/2010 

“How to Avoid Getting Burned in China and India”  Businessweek  March 1, 2010

 

 

 

9/16

Establishing Objectives and Developing a Competitive Advantage

Gillespie, Ch. 6

Read:  Case 6.1 and 6.3

 

Submit list of names and select product for project

 

 

9/21

Competitive Strategy

Case:  Ruth’s Chris

Prepare:  Ruth’s Chris; Questions on BB

 

9/23

Assessing International Marketing Opportunities

 

Conducting International

Marketing Research

Gillespie  Ch 7

 

“The Great Indian Beer Rush” BusinessWeek April 23rd 2007

“India’s Whiskey Drinking Elite Make Room for Wine” NY Times,  August 12, 2007

Read:    Case 7-2

 

Submit list of indicators for project

 

9/28

Mode of Operation/Timing and Sequencing of Entry

Gillespie, Ch. 9

 

“Ikea [in Russia]” BusinessWeek, November 14, 2005.

“Welcome (Back) to Russia”   WSJ  6/16/10

 “Three Best Ways to Export” WSJ  3/15/10

 

Read:  Case 9.1

 

9/30

Developing an International Entry Strategy

“How to Avoid Getting Burned in China and India”  BusinessWeek  3/1/2010

 

Video:  Exporting Popcorn Products

Prepare:  “Global Beer”;  Questions on BB

 

Phase 2 – Developing the Local Marketing Mix

 

10/5

Assessing Customer Behavior

 

Market Segmentation

 

“China’s New Cultural Revolution” Fortune, May 25th, 2007

“Children of the Web”, BusinessWeek, July 2nd, 2007

“Small Banks Look to Asia in Targeting”   WSJ  2/17/10

“Open for Business: Turkish Market”  WSJ  6/16/10 

Video: China Rising

 

 

 

10/7

The Global Standardization Debate

Product Standardization

 Gillespie, Ch. 10   pg 281 - 296

 

“Big Mac’s Local Flavor”,Fortune May 5th 2008

“The Czar of Crepes”, Time Aug 18 2008

“Novelty Proves a Hit for Taco Bell” WSJ 3/30/2010

VIDEO:  McDonalds

Read:  Case 10.2

 

10/12

 

Product and Brand Decisions:  An European Dilemma

Gillespie, Ch. 10, 297-306

 

“Levi’s Marketers Hope One Size Fits All” WSJ, July 2008

“What the Nano Means to India’, Business Week

May 11 2009

Video: Digital Cool

 

 

 

 

10/14

International Branding

Gillespie, Ch 11

 

“Acting Globally But Selling Locally” Business Week May 12th 2008

“The Best Global Brands 2009”, Interbrand.com

“China Tries to Solve Its Brand X Blues” by Joe Nocera

“Why a Chinese Multinational Brand Is Still Years Away”  by Tom Doctoroff; www.Adage.com8/13/09

Read:  Case 11.2

 

10/19

Product Positioning

“At Time Warner, Local Content, Global Profits” Businessweek  2/4/2010

 

Prepare:  “Henkel KGaA: Detergents Division”; Questions on Blackboard

 

10/21

Pricing

Gillespie, Ch. 12

 

“Stalking the Wild Copycats in Africa” Business           Week, Aug 18 2009

Trail of Tiers” Fortune, May 10 2010

 

First part of team project due

 

Read:  Case 12.1 and 12.2

 

10/26

Distribution Channels

Gillespie, Ch. 13

 

 “Retailers Still Expanding in China” WSJ Europe Jan 23 2009

“In India, a Retailer Finds Key to Success is Clutter,” New York Times, August 8, 2007

Zara: Thrives by Breaking all the Rules” Business Week, Oct.20th 2008

Read:  Case 13.1

 

10/28

Global  Marketing  Challenges

 

Guest Speaker

 

11/2

Global Marketing Communications – Advertising and PR

Gillespie, Chap 15

Brands Across Borders” at: http://www.aef.com/on_campus/classroom/speaker_pres/data/6001  Be sure to watch the commercials imbedded in the article.

 

Read:  Case 15.2

 

11/4

Global Marketing Communications – Advertising and PR

 “Global Advertising”, from Ogilvy & Mather

 

 

11/9

Promotion

Gillespie, Chap. 14

 

“ Russia Further Dilutes Beer Ads to Deter  Drinking “ WSJ July 14 2009

“Adidas Campaign Invokes Chinese Nationalism” WSJ July 3rd 2008

“Sportswear with Designs on China” WSJ Aug 2008

 

 

11/11

Dilemma: The Cost and Risks of Changing a Successful Marketing Mix – China and Mexico

 

Case: Colgate Max Fresh: Global Brand Rollout

 

 

 

Global Portfolio and Organization Management

 

 

11/16

Organizing for Global Marketing Efforts

TBD

 

 

11/18

Knowledge Sharing

 

Life of an ExPat

Video: Johnson & Johnson Knowledge Sharing

Prepare: “P&G SK II Globalization Project”; Questions on BB

 

11/23

Developing Focused Strategies

“The Magic Touch,” Fortune, September 6, 2004.

“Luxury- Goods Makers Brandish Green Credentials”, WSJ July 2nd 2009.

Video:Cartier

Second essay due

 

11/25

Happy Thanksgiving!

   

 

Concluding Thoughts

 

 

11/30

Emerging Markets; Local Firms vs. Global Giants

 

Cleaning Up” New York Times, June 10th, 2007

“Scrambling to Bring Crest to the Masses”, Business Week, June 27th, 2007

 

“The Infomercial Comes to Life in India’s Remotest Villages’ WSJ June 10th 2009

Social Cause Meets Business Reality”, Business Week, June 16th 2008

Prepare:  Marketing the $100 Lap Top (A)

 

12/2

Summary:  Some Simple “Truths”

 

 

Prepare:  “Local Memoirs of a Global Manager “; Questions on BB

 

12/7, 12/9, 12/14

 

PRESENTATION OF MARKETING PLANS

Written Marketing Plan Due 12/15

 

 

 

 

Required Course Materials

  1. Text:  Gillespie, Kate, Jeannet, Jean-Pierre, and Hennessey, H. David (2008) Global Marketing  N.Y.: Houghton Mifflin (this is a customized edition)
  2. There is a case packet available in the bookstore.  
  3. Additional readings are detailed in the course outline. The URLs, or actual readings,  are posted on Blackboard.

 

Assessment Components

INDIVIDUAL ASIGNEMNTS – 65%

GROUP ASSIGNMENT – 35%

Case Write-ups:  submit a 2 page write up (as outlined in Appendix II) of:

  1. “Global Beer”
  2. Either “Henkkel KGa: Detergents”  or “Colgate Max Fresh Global Brand Rollout”

Please bring a paper copy to class.  If you miss class, please send a digital copy BEFORE class.  Late assignments are not accepted

Essay:  Students can choose three of approximately six questions to answer.   The essay requires 6 or 7 pages and draws on materials from the textbook, readings and class discussions. 

International Marketing Plan:  Students will develop an international market strategy for a product or service of their choice. This has two parts as detailed in Appendix I:

  1. evaluating opportunities worldwide for the chosen product/service and selecting a country to enter  (7 to 8 page paper due October 21, 2010)
  2. drawing up a marketing plan to enter the selected country (Approximately 20 page paper due December 15, 2010)

Each group will make a 15-minute presentation of their country selection and marketing plan during the last two or three class sessions.

Team members will be evaluated by means of a peer rating. Each team member should submit a peer rating for the project (Appendix IV) on or before December 14, 2010.

 

Group Projects

Guidelines for Group Projects

Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.

Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole:   its different components will not be graded separately. Your exams may contain questions that are based on aspects of your group projects.

It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.

You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.

 

Grading

At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter. Assigning grades that reward excellence and reflect differences in performance is important to ensuring the integrity of our curriculum.

In general, students in this elective course can expect a grading distribution where about 50% of students will receive A’s for excellent work and the remainder will receive B’s for good or very good work. In the event that a student performs only adequately or below, he or she can expect to receive a C or lower.

Note that the actual distribution for this course and your own grade will depend upon how well each of you actually performs in this course.

 

Re-Grading

The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.

 

Professional Responsibilities For This Course

Attendance

Class attendance is essential to your success in this course and is part of your grade. An excused absence can only be granted in cases of serious illness, grave family emergencies, or religious observance.  Documentation may be requested.  I understand that scheduling job interviews around classes is challenging.  However, eabsence for excessive interviews will impact your participation grade.  Incompatible travel plans are considered unexcused absences. Where possible, please notify me in advance of an excused absence.

 

Participation

In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.

Before coming to class, you are expected to read the assigned readings, including the mini-cases, which we will discuss in class.  The quality of your participation in class determines your grade.  Attendance alone does not earn participation points.

You can supplement, not substitute, in-class participation by submitting relevant current articles.  There are no points for quantity!  Please submit them via email (a copy or a link) with two sentences on why the article is important or interesting. 

Assignments

 

Classroom Norms

 

Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 

 

Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 

 

Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.

 

Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.

 

Recording of Classes

Your class may be recorded for educational purposes

 

Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.

 

Appendix 1

Appendix I

INTERNATIONAL MARKET ENTRY PROJECT

 

This project is intended to give you “hands on” experience in developing an international market entry strategy for a hypothetical company. It is divided into two parts:

  1. Select a Country to Enter – This involves establishing criteria and evaluating countries worldwide based on secondary data
  2. Develop a market entry strategy - This includes target market selection, product positioning, channels of distribution and promotional strategy.

 

  Part I: Evaluating International Marketing Opportunities

1. Selecting a product:

The first step is to select a product. You can select virtually any product you like provided it entails marketing issues.  Here are a few guidelines and suggestions: 

 

2.  Choice of Indicators

Next, you will need to think about indicators for each of the stages of the screening procedure. You should adopt a four-stage approach.

 

Stage 1. Here you will need to select 3-4 screening indicators to identify approx. 20 countries going into stage 2. I suggest you have a min pop size and min GNI per capita; the others will depend on your product. Here the most reliable data to use are the World Bank data, though you may find the CIA data easier to handle electronically. The min cut-off points you use to eliminate countries are purely arbitrary, and depend on whether you want to go into a developed or developing country, e.g. whether you are selling low-cost bicycles, or expensive jewelry.

Stage 2. In stage 2 you need to identify 5-7 indicators to screen the macro-environment. These might, for example, include political risk, corruption, financial risk, rate of inflation, urbanization, ease of doing business, competiveness etc. Again, establish minimum cut-off points for each criterion. However, I recommend that you look at the position of all countries on these indicators before making elimination decisions, rather than eliminating countries on a sequential basis, as some countries may come close to your cut-off points.  At the end of this stage you should have at least 10 -12 countries going into stage 3.          

Stage 3.This is the most important stage. Here, you need to identify 10-12 indicators relating to the product market to evaluate the countries at this stage and select 4-5 to go into stage 4. Here I suggest you rely on the Euromonitor Global Marketing Information Data base in the Virtual Business Library, supplemented by whatever other data bases you know of relevant to your specific product. This should focus primarily on data relating to the product market. This should include data on total         size of the market in units, and also total $ sales, rate of growth in market size and $ sales volume over the last five years, per capita unit volume, per capita $ sales, as well as similar data for complementary or competing products, for example, if you are focusing on sales of vitamin water, you may want to look at data on soft drink sales, bottled water sales, vitamin sales, carbonated drinks sales, bottled tea sales etc. You may also want to look at indicators of the target segment, by age, income, etc. In this stage do not use min cut off points, but look at the ranking of a country across all of your criteria, and work out potential trade- offs, e.g. between market size and growth.

Stage 4.In the final stage you should have 3-5 countries. Here you may want to make use of qualitative data. The most important factors are the presence and strength of competition as well as the development of the marketing infrastructure, and for example, the availability and ease of entry into existing distribution channels. Here the main issue should be the ease of establishing operations, and competing in a country.

3. Choice of Country.The final choice of country is likely to be a subjective one. You need decide which of your remaining countries seems to provide the most attractive opportunity for your company, not only in the short, but also long run. For example, you need to think about whether it provides a good jumping off point for international expansion. For example Japan might be an attractive market, but where do you go next? South Korea? Australia, on the other hand, while relatively isolated, might be a good base for expanding in S.E Asia.

4. Write a report of approximately 7-8 pages evaluating these opportunities, stage by stage. Identify key factors determining success in marketing the product and any specific constraints which impede the marketing effort. Based on this analysis select a country (or group of countries) on which to focus your efforts. This report should be handed in on October 21, 2010.

 

 

Part II: Developing an International Marketing Entry Plan

This part of the project is intended to provide you with first-hand experience in developing a strategic marketing plan for entering an international market. In general, this should be the country selected in phase I, though you may decide after collecting additional data to enter another country. 

  1. Collect additional data related to the country, and product market and draw up a strategy for entering this market. The core of the company marketing strategy will be the description of the positioning and the target market (s) which you have chosen. This will provide guidelines for proposed tactics, i.e. distribution, price and promotional policy.

You will need to make some assumptions about production location, financial, and production capacity. I suggest you assume you will ship your product from the U.S., and have a time horizon for your marketing plan of 1-3 years, though you should keep the long-term in mind.

You may find it helpful to do field work, i.e. interview companies, advertising agencies, etc. relating to your product.

2.  Draw up the details of your strategic plan, including product positioning and modifications, pricing strategy (including trade discounts, freight and distribution costs), distribution strategy (i.e. choice of direct vs. indirect channels, type of coverage etc.), and promotional strategy, (including a media plan, advertising copy, sales promotion and personal selling strategy - where relevant).

3.  You will also need to develop a marketing budget, including all expenses based on projected market share, distribution and promotion costs.

4.  Some guidelines concerning plan implementation, key strategic moves, and anticipated future developments should be included as well as a contingency plan. In essence, this final concluding section should lay out a proposed strategy in view of expected market trends.

The final paper should be typed, double-spaced, approximately 20 pages including parts I & II (excluding Appendices and other supporting material). Please keep a copy for your records. This should be handed in by December 15, 2010. 

 

INFORMATION SOURCES FOR THE TEAM PROJECT

(Most of these sources can be found in the Bobst Virtual Business Library, http://library.nyu.edu/vbl)

 

PRELIMINARY SCREENING

CRITERIA

World Development Report: www.worldbank.org

 

 

country  indicators

  • The PRS Group, Political Risk Yearbook: www.prs.com

 

  • World Bank, World Development Indicators:  www.worldbank.org

 

  • EIU, Country Reports, Country Profiles, Country Risk Service,
  • http://www.eiu.com/site_info.asp?info_name=corporate_landing_NYU&rf=0

 

  • The Global Competitiveness Report 2008-9, www.weforum.org/documents/GCR0809/index.html

 

  • UNDP, Human Development Report 2007/8,

http://hdr.undp.org/en/media/HDR_20072008_EN_Complete.pdf

 

product market indicators

  • Euromonitor, Global Marketing Information Database

(electronic access only)

Euromonitor Product Market Reports

(for specific products/services)

http://arch.library.nyu.edu/databases/proxy/NYU02141

 

  • EIU Market Reports

EIU City Data (pricing info.)

http://www.eiu.com/site_info.asp?info_name=corporate_landing_NYU

 

-KEY WEBSITES:

Michigan State University

Kansas State University

World Bank

CIA

 

Cultural Insights

 

  • A series of books titled; “Culture Shock:  X Country”.  Some Country books are better than others; this series should not be your only source.

 

 

 

“MARKETING MIX” WEBSITES

 

  • American Marketing Association -  this site has only limited material on global marketing issues
  • American Educational Foundation  www.aef.org-  generally has good case studies of global branding and advertising

 

 

 

Appendix II

Appendix II

GUIDELINES FOR CASE WRITE-UP: PLEASE READ CAREFULLY

The write-up of the case should be written in management summary form and should not exceed  2 pages single-spaced. You are advised to use bullet heads.

  1. First, define clearly and concisely  the basic decision problem. This should focus on the action to be taken, e.g. how to enter international markets, developing a long-run strategy for international growth, rather identifying symptoms such as declining sales, increased competition. The problem statement should be summarized in 3-5 sentences.
  2. Next, identify a number of alternative courses of action to deal with the problem identified in #1, i.e. alternative entry modes might include direct exporting, joint ventures, franchising, etc. For each alternative, list the pros and cons using bullet heads. This should be the major part of your write-up. Materials such as tables, quantitative analysis, may be placed in appendices, not in the text. Do not repeat tables and material contained in the case.
  3. Write a brief recommendation, selecting one of your suggested alternatives. Give a rationale for your choice. This should be approximately 6-7 sentences (this is a target and you may require a few more sentences).
  4. Cases should be handed in before the class session in which they are discussed.  Late cases are not accepted.

 

Appendix III

Appendix III

  Peer Rating

Each team member should submit a peer rating form. This form is to contain an evaluation of each team member with the exception of yourself. 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 raring for each. Submit the form to me on or before December 7, 2010.  The form should be signed and enclosed in an envelope.

If I do not receive a form from you, I assume that you divide points equally among other team members.

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 completion of the group project.

           

                        TEAM MEMBERS                                       POINTS AWARDED

 

            1.

 

            2.

           

            3.

 

            4.

 

            5.

 

            6.                                                                                                         ________

                                                                                               

                                                                                                Total                    100

            __________________________________________________________________

            Additional Comments:

            (Use reverse side if necessary)                                                                                                                                                     _____________________________________________

                                                                    Signature of the team member doing evaluation

 

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