Luxury Goods Marketing

Luxury Goods Marketing

Cataloguing-in-Publication Data a catalogue record for this book is available from the british library

10 9 8 7 6 5 4 3 2 1 14 13 12 11

Typeset in 10/12 Times by Integra Printed and bound by Courier Kendallville in The United States of america

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To Cynthia, my wife, best friend, and partner in living life creatively.

—WJK

In memoriam: Peter Nathaniel Green 1964–2013

—MCG

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5

Brief Contents

Preface 17 Acknowledgments 21

Part ONE Introduction 24 Chapter 1 Introduction to Global Marketing 24 Case 1-1 The Global Marketplace Is Also Local 24 Case 1-1 The Global Marketplace (continued) 54 Case 1-2 McDonald’s Expands Globally While Adjusting Its Local

Recipe 55 Case 1-3 Apple versus Samsung: The Battle for Smartphone Supremacy

Heats Up 58

Part twO the Global Marketing Environment 60 Chapter 2 The Global Economic Environment 60 Case 2-1 A New Front in the Battle of Ideas 60 Case 2-1 A New Front in the Battle of Ideas (continued) 89 Case 2-2 Argentina Uncorks Malbec; World Ready

for a Glass 90

Chapter 3 The Global Trade Environment 92 Case 3-1 Global Trading Partners Look East and West

for Economic Growth 92 Case 3-1 Will New Trade Partnerships Fuel East-West Growth?

(continued) 121 Case 3-2 Will the Euro Survive? The Euro Zone Fights

for Its Life 122

Chapter 4 Social and Cultural Environments 124 Case 4-1 Will Tourism Ruin Venice? 124 Case 4-1 Is Tourism the Savior or the Scourge of Venice?

(continued) 148 Case 4-2 Soccer and the Fashion World 150

Chapter 5 The Political, Legal, and Regulatory Environments 152

Case 5-1 Mr. President—Free Pussy Riot! 152 Case 5-1 Mr. President—Free Pussy Riot! (continued) 181 Case 5-2 America’s Cuban Conundrum 183 Case 5-3 Gambling Goes Global on the Internet 186

Part thrEE approaching Global Markets 188 Chapter 6 Global Information Systems and Market Research 188 Case 6-1 Nestlé’s Middle East Investment in Market Research 188 Case 6-1 Nestlé’s Middle East Investment in Market Research

(continued) 217 Case 6-2 Research Helps Whirlpool Keep Its Cool at Home, Act Local

in Emerging Markets 218

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6 BRIEF CoNTENTS

Chapter 7 Segmentation, Targeting, and Positioning 220 Case 7-1 Global Companies Target Low-Income Consumers (A) 220 Case 7-1 Global Companies Target Low-Income Consumers (A)

(continued) 250 Case 7-2 Cosmetics Giants Segment the Global Cosmetics Market 252

Chapter 8 Importing, Exporting, and Sourcing 254 Case 8-1 East-Asian Countries: Export-led Growth for Economic

Success 254 Case 8-1 Hong Kong Trade and Investment Hub (continued) 281 Case 8-2 Turkish Cars: The Big Picture 282 Case 8-3 A Day in the Life of an Export Coordinator 283

Chapter 9 Global Market-Entry Strategies: Licensing, Investment, and Strategic Alliances 284

Case 9-1 Mo’men Launches Franchises in UAE 284 Case 9-1 Mo’men Launches Franchises in UAE (continued) 311 Case 9-2 Jaguar’s Passage to India 313

Part fOur the Global Marketing Mix 314 Chapter 10 Brand and Product Decisions in Global Marketing 314 Case 10-1 The Beatles Story, Liverpool 314 Case 10-1 The Beatles Story, Liverpool (continued) 347 Case 10-2 The Smart Car 348

Chapter 11 Pricing Decisions 350 Case 11-1 Global Companies Target Low-Income Consumers (B) 350 Case 11-1 Global Companies Target Low-Income Consumers (B)

(continued) 379 Case 11-2 LVMH and Luxury Goods Marketing 380 Case 11-3 One Laptop Per Child 382

Chapter 12 Global Marketing Channels and Physical Distribution 384 Case 12-1 Carrefour’s Entry in Dubai 384 Case 12-1 How Successful is Carrefour’s Joint Venture in the UAE?

(continued) 415 Case 12-2 Fail! Tesco Strikes Out in the United States 416

Chapter 13 Global Marketing Communications Decisions I: Advertising and Public Relations 418

Case 13-1 The Gulf Oil Spill: BP’s Public Relations Nightmare 418 Case 13-1 The BP Oil Spill (continued) 445 Case 13-2 Samsung: Launching People 446

Chapter 14 Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication 448

Case 14-1 Red Bull 448 Case 14-1 Red Bull (continued) 479 Case 14-2 Marketing an Industrial Product in Latin America 480

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BRIEF CoNTENTS 7

Chapter 15 Global Marketing and the Digital Revolution 482 Case 15-1 Africa 3.0 482 Case 15-1 Africa 3.0 (continued) 508 Case 15-2 Global Marketers Discover Social Media 509

Part fIvE Strategy and Leadership in the twenty-first Century 510

Chapter 16 Strategic Elements of Competitive Advantage 510 Case 16-1 Volkswagen Aims for the Top 510 Case 16-1 Volkswagen (continued) 538 Case 16-2 IKEA 541 Case 16-3 LEGO 543

Chapter 17 Leadership, organization, and Corporate Social Responsibility 544

Case 17-1 A Changing of the Guard at Unilever 544 Case 17-1 Unilever (continued) 572

Glossary 575 Author/Name Index 589 Subject/Organization Index 597

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9

Contents

Preface 17 Acknowledgments 21

Part ONE Introduction 24

Chapter 1 Introduction to Global Marketing 24 introduction and overview 25 Principles of Marketing: A Review 27

Competitive Advantage, Globalization, and Global Industries 28

global Marketing: What it is and What it isn’t 31 the importance of global Marketing 38 Management orientations 40

Ethnocentric Orientation 40 Polycentric Orientation 41 Regiocentric Orientation 41 Geocentric Orientation 42

Forces Affecting global integration and global Marketing 44 Multilateral Trade Agreements 44 Converging Market Needs and Wants and the Information Revolution 45 Transportation and Communication Improvements 45 Product Development Costs 45 Quality 46 World Economic Trends 46 Leverage 48

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