BETTER OFF?

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Hello! This is a new commentary of mine that was recently published in CEOWORLD Magazine. I have included an excerpt below, and you are welcome to read the full commentary through the link at the bottom.

Less than a decade ago many economic players pronounced the triumph of global marketing. Governments encouraged market-based decision rules of economic games. Those who invoked benefits of government planning and state monopolies rapidly encountered substantial public doubt. Ten years is a long time for firms and their customers. Conditions have changed. Back then, competitive market conditions held preference. Nations that had turned away from mandated economies found rewards in very strong growth rates. There were sharp expectations for growing political freedom, greater increases in life expectancy, higher literacy rates, and a better overall standard of living. Firms encountered substantial benefits

Read More Here: https://ceoworld.biz/2021/03/28/better-off/?utm_source=email&utm_medium=CEOSocial&utm_campaign=SocialWarfare

Marketing innovation: A consequence of competitiveness

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by Suraksha Gupta, Naresh K. Malhotra, Michael Czinkota, and Pantea Foroudi

A hopefully interesting read! Please find a brief excerpt of this published article along with the link to the full article below.

Abstract: This research uses complexity theory to probe the relationship between competiveness and innovation in the marketing practises of large manufacturing firms that offer their branded products in a foreign market by engaging a network of local small- and medium-sized enterprises (SMEs) as resellers of their brand. A deductive, quantitative research approach was employed and data were collected over a nine-month period from resellers of international IT firms in India using a questionnaire. A structural equation modelling technique and fuzzy-set qualitative comparative analysis (fsQCA) were employed on a sample of 649 respondents to find answers to the questions raised. This research indicates that a successful business relationship between a brand and its resellers can enable both parties to compete in a competitive market. This study finds that innovativeness in the marketing initiatives of the brand can be a function of the contributions made by the brand to its competitiveness. Nevertheless, the findings are also subject to some limitations and provide direction for future research on the topic.

1. Introduction

Various studies recommend that managers aiming to venture into the challenging field of internationalisation should create a competitive edge that helps them to demonstrate the superior abilities of their firm (Barney, Wright, & Ketchen, 2001; Porter, 2011; Samli, Wirth, & Wills, 1994). But, fear of the unknown deters managers from stepping out of their home country and benefiting from internationalisation because growth markets tend to be very complex as they foster competition (Knight, 1995; Thai & Chong, 2013). A business-to-business model of distribution allows managers of international firms to successfully deal with entry barriers and enter smoothly into a foreign market and effectively address the complexity of a place that offers high potential of growth to their businesses (Yan, 2012). A distributor simultaneously facilitates the entry of multiple firms with competing products into the market and engages micro level small and medium firms in the local market for selling (Chen, 2003). Since distributors offer multiple similar and competing products to resellers, markets being served through resellers become very competitive for international brands. Competition in a market encourages competing firms to demonstrate their ability to innovatively serve customers (Freeman, Edwards, & Schroder, 2006). Lack of in-depth native knowledge in such markets is a major shortcoming for firms aiming to internationalise because it decreases their capability to innovate their marketing related business practises by predicting the business environment and trends in the consumption patterns of the foreign market (Bell, 1995; Johanson & Vahlne, 2009). Distributors and resellers have an important role to play in the successful penetration of a foreign market showing that an international firm develops its capability to innovatively market its products through reseller networks that needs to be understood. The resource advantage theory recognises the creation of a competitive edge as a function of marketing and identifies the role of branding in creating the capability of a firm to demonstrate its superior abilities (Hunt & Morgan, 1995, 1996; Srivastava, Fahey, & Christensen, 2001). Simultaneously, the industrial practises of industrial brands particularly in the IT and telecom sector indicate that the managers of strong brands can compete in foreign markets based on their brand leadership and brand relationships in the local market. It has also been noticed and reported in the literature of local firms by studies like Gupta and Malhotra (2013) that a brand that contributes to the competitiveness of the reseller is able to compete at the local level using innovative marketing initiatives. These observations of various researchers indicate that the relationship between an international brand and its resellers in foreign markets becomes very important for brands in a market that poses strong competition (Anderson & Weitz, 1992). This study examines the relationship between competitiveness and innovation in the marketing practises of large manufacturing firms that offer their branded products in different countries through a network of local small- and medium-sized enterprises (SMEs) as resellers of their brand. It builds on both the resource-based view and complexity theory to understand what features of the brand and the reseller enable them to adopt innovative marketing practises in an international setting. We aim to bridge the gap in the existing marketing literature by reviewing current academic knowledge surrounding competitiveness and marketing innovation. Thus, the study addresses the following research question: What configurations of brand and the reseller enable the adoption of innovative marketing practises by two firms in an international setting? This study addresses the research question by first developing a suitable theoretical framework which is then used to investigate the question by means of empirical data. This study addresses this question in four phases. The first phase underpins the arguments about competitiveness and marketing innovation with the current academic knowledge about theory of competitive advantage and resource-advantage theory. The second phase explores the concept and assumptions using expert insights. During the third phase, this study conducts a field survey to collect data from resellers of international brands and use structure equation modelling (SEM) and fuzzy set qualitative comparative analysis (fsQCA) (Ragin, 2006, 2008). fsQCA has received increased attention as it gives an opportunity to the researchers to gain a deeper and richer perspective on the data, particularly when applied together with complexity theory (Leischnig & Kasper-Brauer, 2015; Mikalef, Pateli, Batenburg, & Wetering, 2015; Ordanini, Parasuraman, & Rubera, 2013; Woodside, 2014; Wu, Yeh, & Woodside, 2014). The fourth phase leads to interpret the results in order to make recommendations and consider future avenues for the research. This research contributes to the literature on business-to-business and international marketing. Finally, the study advances the current understanding about the interdependence of brand and reseller firms for developing their competitiveness and adopting innovative approaches to marketing

https://cyberleninka.org/article/n/529841/viewer

Marketing Management: Past, Present, and Future

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I’m pleased to announce the publication of my new book! Marketing Management: Past, Present, and Future is now available for pre-order on Amazon. Please check out the link to purchase it down below.

This textbook provides students with comprehensive insights on the classical and contemporary marketing theories and their practical implications. A fourth, revised edition of Marketing Management, the text features new classical and contemporary cases, new interdisciplinary and cross-functional implications of business management theories, contemporary marketing management principles, and futuristic application of marketing management theories and concepts. The core and complex issues are presented in a simplified manner providing students with a stimulating learning experience that enables critical thinking, understanding, and future application.

https://www.amazon.com/Marketing-Management-Springer-Business-Economics/dp/3030669157

Trade Policy and International Marketing Under Reagan and Trump: An Abstract

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The following is an abstract of a new piece I have been working on with my colleague Professor Gary Knight. I hope you enjoy it and please feel free to leave your comments below.

Michael Czinkota, Georgetown University, Washington, DC, USA, czinkotm@georgetown.edu
Gary Knight*, Willamette University, Salem, OR, USA, gknight@willamette.edu

                                                                  ABSTRACT

We investigate the international marketing implications of the international trade policies of US Presidents Ronald Reagan (‘Reagan’) and Donald Trump (‘Trump’). Today, in international trade, tariffs are low, averaging about 3% in the advanced economies and 10%-15% in the emerging markets. The average tariff across all goods worldwide is about 6%, down from 18% in 1990.  Meanwhile, world trade has increased consistently. China is now the most important trading partner of the US, providing both a huge market and supplying a great variety of products.


In the 1970s, a goods trade deficit emerged in the US and persists to the present day. In our research, we found that the administrations of both presidents sought to reduce the US trade deficit, and defend and enhance the international marketing performance of US firms.  In the early phase of his administration, trade policy under Reagan was restrained but became more assertive. Reagan focused on the trade deficit with Japan and on enhancing international market opportunities for US firms. But Reagan’s policies fell short of their goals. Today, the US faces a much larger trade deficit, primarily with China. Trump adopted policy goals similar to those of Reagan. Trump’s approach has been more assertive. Like Reagan, however, Trump’s policies have fallen short of achieving the intended goals.

In this paper, we provided empirical background and discussed the policies and outcomes of the policies of Reagan and Trump. We highlighted implications for firms’ international marketing efforts and performance, and as well as directions for future research.  We pointed to research opportunities for scholars. Research might investigate better, smarter trade policy, and examine benchmarking by reviewing various trade policy approaches, of the US and other nations, and then examining those successful in achieving intended goals.  Scholars might seek to identify appropriate strategies and tactics for enhancing the performance, of nations and of firms. 

Implications suggest that companies need to increase their competitive advantages in global trade. The US needs to increase its national competitive advantages by improving national factors of production and implementing smarter economic policies that promote US business. Public policymakers should emphasize investing in infrastructure, for example, in communications technologies that can increase the effectiveness of the management of firms’ value chain operations. Broadly, firm strategy and public policy should aim to improve performance on in the areas of entrepreneurship, innovation, and productivity, in order to make US companies more competitive in the global marketplace. An important research step will be the anticipated identification of trade policy shifts and the concurrent effects on business planning and policy development. Looking forward, the Biden administration will have to juggle its promise of bolstering domestic investment in infrastructure and US firms while also growing US importance within World Trade.

Keywords: International trade policy; International marketing; Tariffs; Protectionism; Public policy

References Available Upon Request

Together for more and better

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Michael R. Czinkota

On a recent holiday, I had six teeth extracted. The insights I gathered during this process seemed relevant to current policy and election travails. My dentist’s office was closed, but he kindly came in to see me. Of course, his staff did not, since it was a holiday, but that did not worry me since I wanted my doctor’s skills, not those of his staff. After a lengthy procedure, my dentist gave me a pain prescription. Kind reader, please keep in mind – our local jurisdictions consist of the District of Columbia,  the Commonwealth of Virginia, and the State of Maryland. Each state has different pharmaceutical rules and laws, and political leadership. 

My dentist resides in Washington, D.C.; I live in Virginia but have to drive through Maryland to get home. My daughter kindly offered to pick me up from the appointment, and as my pain was growing, we stopped at a pharmacy to purchase the medication on the way home. But with little luck. “We don’t supply this medication,” we were told. Little matter, we drove to the next pharmacy a few miles away in Maryland, where my daughter trains to be an emergency medical technician. But since the prescription was in my name, and I am a Virginian, we again obtained no medication, but growing pain from my teeth.

Onwards then to Virginia. Yet here I was informed that the pain medication was a narcotic which in Virginia needed to be personally signed by the issuing doctor who, due to the holiday, had long ago left his office. Back to the car, with surging pain, we aimed for my home pharmacy where they know me. I always admonish my daughter to drive cautiously, but now I asked her to drive as fast as possible. It took 45 minutes, but finally, the home village came into sight.  About one kilometer before the town, we heard a horn behind us and saw a blue emergency light. It was a visiting state trooper who stopped us for driving at an excessive speed. I started to explain, but his gestures made me quickly recall the saying of ‘tell it to the judge’. Besides, I just wanted to get to the pharmacy.  

The trooper was quite meticulous, but 40 minutes later, we were on the road again. At the pharmacy,  we were immediately recognized and the prescription was, of course, filled right away. Apparently, word had gotten around regarding my earlier visits to other pharmacies since the pharmacist told me in confidence that ‘next time, just come here directly.’ The pills worked, and I thanked my daughter for her help, also promising to pay for all her expenses. In the end, the bills for speeding, lawyers, court cost, regular fees, speed measurement all added up to more than $ 1,300.

All this is truly not earth-shattering but of major impact nonetheless. Lack of collaboration may start out by discomforting life, but given time and repetition, can lead to growing social gaps.  America has, for more than one and a half centuries, principally drawn strength and a good life through success from its cohesiveness. Nevertheless, there have been shortcomings, apathies and neglect which require repair.

We must recognize and adjust our lives to cope with the growing complexity of the world today. Breaking up links and relationships is a bad idea. We continue to have an unsurpassed capacity for communication and analysis. We can find ways that allow for curative marketing or restitution for past or current wrongdoings. There clearly is room for improvement, be it for pain pills, jurisdiction, or treatment of people. Let’s take steps for the pursuit of happiness, which supports us all.– the Declaration of Independence has made a promise, but we as individuals need to deliver on it.

———————————

Professor Michael Czinkota (czinkotm@georgetown.edu) is emeritus faculty of international marketing and trade at Georgetown University. His forthcoming book is International Business, 9th edition.

International Marketing and the Migrant-Owned Enterprise

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by Gary Knight, Michael Czinkota. Zaheer Khan

A hopefully interesting read! Please find the abstract of the published article along with the link to the full article below.

Abstract: We propose a research investigation on migrant-own businesses that undertake international marketing ventures. Migrant-owned firms contribute substantially to their adopted countries, and many launch international ventures, targeting their home countries and other international markets (Kerr and Kerr 2016; Light 2010; Saxenian 2002; OECD 2011; United Nations 2016; USAID 2009)

https://www.researchgate.net/publication/329225285_International_Marketing_and_the_Migrant-Owned_Enterprise_Research_Propositions_An_Abstract_Proceedings_of_the_2018_Academy_of_Marketing_Science_AMS_Annual_Conference

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Education: Key public and private investment choice for the coming administration

Prof.  Michael Czinkota

The next four years will determine where and how all the accumulated economic resources will be spent. The decisions will affect those suffering from rainy days to come. Targeted spending will sow seeds for innovation, technology, and the pursuit of happiness. In a post – Covid 19  era with large debts our environment needs to be poised for growth and expenditure. Education must become the core answer.

Covid 19 will continue to restructure the domestic and global economy, with one key facet being the delivery of education. Technology and information flows have redefined the entire field. For example, both students and teachers can again sit and wait for the common assignment to be handed out. We will increasingly need to take the path of self-direction, sharply differentiating between creativity, contentment, and the outlook of life for both students and faculty.

In addressing new issues in novel ways, we are not offering old wine in new containers but instead offering fundamental innovation and new methods of analysis combined with linkages between fields of thought. These methods need to enable students to overcome the gap when forced to communicate asynchronously. Within this context communication, planning and interaction attain new meaning. Online education needs to re-introduce specific dimensions of personal cross-fertilization. For example, we are not communicating and learning enough about the relationship between economically forced migration and entrepreneurship even though fundamental adjustments in education and capabilities could make the world of a difference to the lives of migrants.

There is a substantial need to re-define and newly address practical education and to do so simultaneously across functional fields with a concentrated focus at a low cost. I increasingly conclude that a re-fashioning of the educational goals, approaches, and delivery is needed. To make progress on my understanding,  I serve as a four-year board member on the Lord Fairfax Community College in Virginia representing the county of Page. Overall the college educates more than 23,000 students each year. Courses can cover the learning of a special and needed skill or to achieve academic progress that would lead to acceptance into a four-year college. Examples are students who engage in a career as phlebotomists, where they draw blood as a doctor’s assistant. Due to the exchange and transfer of academic credits, students also prepare with their studies for full graduation from a well-established but distant university which otherwise would be out of reach.

All this learning is done in a close-by facility which allows the student to save on housing costs, reduce psychological distance, and to maintain close ties with the family. This proximity helps in terms of personal as well as regional enrichment. Education brings clear advantages of brainpower and attracts further support just like tax rebates, logistics facilities, duty-free zones, or preferential market access.

Jenkins Hall of the LFCC will soon be inaugurated together with a new campus in Luray. Business subsidies are large and far-reaching. For decades I have traveled to historically unique edifices and structures.  I‘ve visited the Coliseum in Rome, the Notre Dame Cathedral in Paris, and burial sites in China and Egypt. When built, many were of them were capable of accommodating far more than the entire local population of their day. But there was a reason for such spatial exuberance. The new facilities including Jenkins hall reflect a desire to build a better future and a commitment to competitiveness.

The easy availability of money in today’s era and the alacrity to spend it in support of causes should make education both an example and exhortation. Both Georgetown University and LFCC have a unique opportunity during this period of Covid-19, to adjust and finetune their offering and education model. There are many ways to improve our capabilities in terms of design, delivery, and diversity. There is much we can learn from each other. Let us leave future generations to ponder and admire the strength and enthusiasm supporting our education.

Prof. Czinkota (czinkotm@georgetown.edu) is on the faculty emeritus of the Georgetown University Business School and serves on the board of Lord Fairfax Community College Board. He served in the US government as the Deputy Assistant Secretary of Commerce. His key book is International Marketing, 11th ed. Cengage 2021

Technology a Key Catalyst in a Changing Society

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Michael R. Czinkota

and 

 Amalia Stahl

When analyzing the midterm Covid-19 effects, many pundits envision a return to the status quo ante once the current societal disruptions have calmed down. We doubt such an outcome due to the magnitude of the societal shifts triggered by Covid-19 along with the emergence of new technologies that take on an increasingly important role for business, government, and the individual. Just like toothpaste once squeezed out of the tube becomes difficult to repackage back into the tube, policy and behavior once explored become very challenging to ignore. 

Technology is today’s most critical man-made driver of global shifts, replacing and substituting established processes. It has already renewed content and context for many firms and individuals. For example, new routings between countries and consumers that were traditionally impassable or leading to long time delays have been made accessible, thus creating what some have called a death (or at least diminishment) of distance. . The opening of the Swiss Ceneri base tunnel provides greatly enhanced connectivity between Alpine mountain ranges. The Zhuhai bridge makes a dramatic new connection to Hong Kong, Macau, and Mainland China. Both of these edifices have changed geographic proximity.

Due to technology, information can now be rapidly transferred around the globe.   While immigration may be fueling population shifts in wealthy nations, technology is fueling the growth of the business and consumption flows around the world. Historically, worker mobility was a critical human resource variable that involved changing physical presence. Today, worker mobility may mean as little as someone working on a computer at a different location. Increasingly, there is no longer even the need for such activity to take place synchronously.  

The power of technology can be momentous and its impact may not always be fully visible from the start of its implementation.  Often its relevance bubbles under the surface. A testament to the importance of technology is broadband internet. As an indicator of technological development, the number of fixed broadband subscribers matters since a high number of subscribers per capita usually indicates a high level of technology. Advanced economies tend to have the most broadband subscribers which is most reflective of business capabilities. By contrast, the number of subscribers in many developing economies, such as Burkina Faso and Afghanistan, is currently effectively zero. Thus, technologies tend to be most evolved in advanced economies and least evolved in developing economies. The distinction is important because technology is critical to entrepreneurship, productivity, innovation, national economic vitality, and superior living standards.

Technological developments over the past decade have led to dramatic changes in the way people think about communication and information sharing. Mobile telephone subscriptions worldwide keep rising greatly and contribute the largest share of worldwide sales in the consumer electronics sector. Many mature markets have over 100 percent mobile penetration (meaning that some owners have more than one phone, not that all members of that market’s population own a phone).

Technological advances lead to greater information sharing worldwide and allow for new equipment to be more sophisticated and perform more functions at a lower cost. More intelligent and accurate control equipment can bring energy efficiency and large cost savings. As we look at the world marketplace, our planning should focus more on technology. With more technology, even poor countries can become more efficient and successful. Enhanced with the power of financial remittances and acquisition of innovation from countries around the world, technology should become the watchword for the future.

Professor Michael Czinkota (czinkotm@georgetown.edu) works on International Business and Trade issues. His key textbook is International Marketing which goes into its 11edition. 


Amalia Stahl is a student at Georgetown University majoring in Mathematics and Fine Arts.  

Iconoclast series

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I am excited to announce that I relaunching the series of the international iconoclasts. Every week, I will post 2 iconoclast cartoons that deal with a variety of societal and economic trends in a fun and thought-provoking way.

Drawings  by award-winning artist David Clark (Washington Post “ Barney and Clyde”) text by professor Michael Czinkota, czinkotm@georgetown.edu

Find the 1st iconoclast of the series below!

INTERNATIONAL MARKETING Transformation and Adaptation over Time Part 3

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Please find below the third and final part of my presentation from my International Marketing speech at the 13th Annual Conference of the EuroMed Academy of Business in Cyprus on September 9th. It describes the transition from the old to the new pillars of marketing and its implications.

Please feel free to leave your comments below and hope you enjoy it.

slides-part-3-CZ

No Bull: The State of the global economy Pt 2 How serious is it?

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On October 12, I posted part 1 of the interview I did with Nicolette Devidar of the TV segment Smart Sustainability. In part 2, please find the rest of the interview. In this section, we discussed US-China relations, the concept of interdependency, and the potential ramifications of the upcoming US election.

Please click on part 2 down below to watch the second half!

No Bull: The State of the global economy Pt I How serious is it?

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The global economy is in dire straits. That’s an understatement. Most of the COVID shutdown implications cannot even be grasped yet. We see some of it, but by far not all of it. There’s a lot of talk about the kind of recovery — V shape, U shape, L shape that can take place. The reality is that we live in a new world, with a new landscape and new parameters. So, how can we predict something based on applying old parameters? – Smart Sustainability

Last week, I had the pleasure of talking with Nicolette Devidar of the TV segment Smart Sustainability, on the state of the global economy. We discussed a variety of issues with regards to the global economy, including the long term effects of covid 19 and the impacts of a growing digital landscape.

You can watch part 1 by clicking on the video below. Stay tuned because part 2 will be coming soon.

INTERNATIONAL MARKETING Transformation and Adaptation over Time Part 2

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Please find below the second part of my presentation from my International Marketing speech at the 13th Annual Conference of the EuroMed Academy of Business in Cyprus on September 9th. Please feel free to leave your comments below. Stay tuned for the final part, coming soon!

International-Marketing-_-Transformation-and-Adaptation-over-Time_part2

INTERNATIONAL MARKETING Transformation and Adaptation over Time Part 1

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On September 9, I gave a speech on the topic of International Marketing at the 13th Annual Conference of the EuroMed Academy of Business in Cyprus. The experience was an enjoyable one and I have included down below the first part of my presentation which covers the history of marketing.

Stay tuned for parts 2 and 3 coming soon!

Part-1-cyprus-speech-

Letter of Appointment to the Lord Fairfax Community College Board

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Dr. Michael Czinkota has joined the board of the Lord Fairfax Community College in Virginia. With more than 23,000 students, the key emphases are on trades, such as healthcare and robotics, and on the completion of preparatory courses which enable students to move into junior standing at universities.

Baby Boomer-owned small businesses can help resuscitate urban economies

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Professor Jerry Haar at Florida International University has kindly granted me permission to re-post a very interesting article (Hall, J. (2020, September 12). Baby Boomer-owned small businesses can help resuscitate urban economies. The Hill.) of his on my blog.

Please click on the link below and feel free to leave your thoughts.

https://thehill.com/opinion/finance/516132-baby-boomer-owned-small-business-can-help-resuscitate-urban-economies?rnd=1599920642

FROM BOWLING ALONE TO STANDING TOGETHER: 19 YEARS AFTER 9/11

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In commemoration of the 19 year anniversary of the attacks of 2001, I present a copy of the article I wrote for AMA and the U.S. Dept. of State. Your thoughts and comments are welcome, Terrorism and International Marketing have not lost sight of each other.

Please click the link down below in order to access the first page of the article. If you would like to see the article in full please refer to the American Marketing Association 1 800-AMA – 1150.

https://search.proquest.com/openview/b15ff91763a5f4783503bd85bfe1d7da/1?pq-origsite=gscholar&cbl=30990