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ContentsPreface
Acknowledgements
Guided Tour
Technology to Enhance Learning and Teaching
Maps
XXI
xxv ii
xxix
xxx ii
xxxvii
THE SCOPE AND CHALLENGE OFINTERNATIONAL MARKETING 3
The Internationalisation of Business 5
International Marketing Defined 7
The International Marketing Task 10
Marketing Controllables 10
Domestic Uncontrollables 11
Foreign Uncontrollables 12
Environmental Adjustment Needed 15
Self-Reference Criterion: An Obstacle 16
Different Marketing Orientations 18
Domestic Market Extension Orientation 18
Multi-Domestic Market Orientation 19
Global Marketing Orientation 20
Globalisation of Markets 21
Developing a Global Awareness 23
Orientation of International Marketing 26
Chapter 2 THE DYNAMICS OF INTERNATIONAL
MARKETS 29
The Twentieth Century 31
World Trade and the Emergence of Multinational
Corporations 31
Twenty-first Century and Beyond 32
Balance of Payments 38
Protectionism
Protection Logic and Illogic
Trade Barriers
Easing Trade Restrictions
General Agreement on Tariffs and Trade (GATT)
World Trade Organization (WTO)
International Monetary Fund (IMF)
39
39
41
47
47
49
50
Chapter 4
Chapter 3 GEOGRAPHY AND HISTORY: THE FOUNDATIONS
OF CULTURAL UNDERSTANDING 57
Geography and International Markets 58
Climate and Topography 59
Geography, Nature and International Trade 62
Social Responsibility and Environmental Management 62
Resources 64
World Population Trends 65
World Trade Routes 72
Historical Perspective in International Trade 73
History and Contemporary Behaviour 73
History is Subjective 74
CULTURAL DYNAMICS IN INTERNATIONAL
MARKETING 77
Cultural Knowledge 83
Factual Knowledge 83
Interpretive Knowledge 85
Cultural Sensitivity and Tolerance 85
Culture and Its Elements 86
Elements of Culture 86
Analysis of Elements 91
Cultural Change 93
Cultural Borrowing 94
Similarities: an Illusion 94
Resistance to Change 95
Planned Cultural Change 96
Consequences of an Innovation 97
Chapter 5 BUSINESS CUSTOMS AND PRACTICES IN
INTERNATIONAL MARKETING 101
Required Adaptation 102
Degree of Adaptation 103
Imperatives, Adiaphora and Exclusives 105
Different Business Practices 107
Sources and Level of Authority 107
Management Objectives and Aspirations 108
Communications Emphasis 110
Formality and Tempo 112
P-time versus M-time 113
Negotiations Emphasis 114
Gender Bias in International Business 115
Chapter 6 THE INTERNATIONAL POLITICAL AND LEGAL
ENVIRONMENT 121
Political Environments 122
Stability of Government Policies 122
Nationalism 123
Political Risks 123
Economic Risks 125
Encouraging Foreign Investment 126
Assessing Political Vulnerability 128
Politically Sensitive Products 129
Forecasting Political Risk 129
Reducing Political Vulnerability 130
Good Corporate Citizenship 131
Strategies to Lessen Political Risk 131
Legal Environments 133
Bases for Legal Systems 134
Legal Recourse in Resolving International Disputes 137
Conciliation 137
Arbitration 137
Litigation 138
Protection of Intellectual Property Rights: a Special
Problem 139
Prior Use versus Registration 140
International Conventions 140
Commercial Law within Countries
Marketing Laws
Legal Environment of the European Union
The Decision-making Process
Competition Policy
141
141
142
142
143
Chapter 7 RESEARCHING INTERNATIONAL MARKETS 149Breadth and Scope of International Marketing
Research 151
The Research Process 151
Defining the Problem and Establishing Research
Objectives 153
Developing a Research Plan 155
Quantitative and Qualitative Research 155
Gathering Secondary Data 157
Gathering Primary Data 160
Analysing and Interpreting Research Information 164
Presenting the Findings and Results 165
Responsibility for Conducting Marketing Research 165
Estimating Market Demand 165
Multinational Marketing Information Systems 169
Chapter 8 EMERGING MARKETS AND MARKET BEHAVIOUR 177Marketing and Economic Development 180
Stages of Economic Development . 181
Newly Industrialised Countries and Emerging Markets 182
Infrastructure and Development 182
Marketing's Contributions 183
Marketing in a Developing Country 184
Level of Marketing Development 185
Demand in a Developing Country 185
Emerging Markets 186
Eastern Europe and the Baltic States 188
Asia 188
The Americas 194
Changing Market Behaviour and Market
Segmentation 197
Emerging Market Segments 198
International Market Segmentation 198
Chapter 9 MULTINATIONAL MARKET REGIONS AND
MARKET GROUPS 203
La Raison d'etre 205
Economic Factors 205
Political Factors 206
Geographic Proximity 206
Cultural Factors 206
Patterns of Multinational Cooperation 206
Regional Cooperation Groups 206
Free Trade Area 207
Customs Union 207
Common Market 207
Political Union 208
Global Markets and Multinational Market Groups 209
Europe 209
European Union 209
European Free Trade Association (EFTA) 220
The Commonwealth of Independent States (CIS) 221
The Americas 221
United States-Canada Free Trade Agreement (CFTA) 221
North American Free Trade Agreement (NAFTA) 221
Latin American Economic Cooperation 223
Asia 226
ASEAN 226
APEC 227
Africa 228
Middle East 231
Future Multinational Market Groups 231
Strategic Implications for Marketing 232
Opportunities 233
Market Barriers 233
Ensuring EU Market Entry 233
Marketing Mix Implications 234
Part 4: Developing International Marketing Strategies
Chapter 10 INTERNATIONAL MARKETING STRATEGIES 241International Marketing Management 242
Global versus International Marketing Management 243
Standardisation versus Adaptation 244
Market-Driven versus Market-Driving Strategies 244
Competition in the Global Marketplace 245
Quality and Competitive Marketing 245
Cost Containment and International Sourcing 247
Collaborative Relationships 247
Relationship Marketing 249
Formulating International Marketing Strategy 249
Positioning 252
Product Life Cycle and International Marketing Strategy 253
Strategic Planning 253
Company Objectives and Resources 256
International Commitment 256
The Planning Process 257
Chapter 11 INTERNATIONAL MARKET ENTRY STRATEGIES 263Why Firms Go Abroad 264
Becoming International 265
Phases of International Marketing Involvement 265
Changes in International Orientation 266
Market Entry Objectives 266
Market Opportunity Assessment 269
Market/Country Selection 270
Strategic International Alliances 271
Market Entry Strategies 275
Exporting 275
Licensing 276
Franchising 278
Joint Ventures 278
Consortia 279
Manufacturing 279
Countertrade 280
Chapter 12 INTERNATIONAL BRANDING STRATEGIES 285Introduction to Branding 286
The Development of Branding 288
Country-of-Origin Effect and Global Brands 291
Own Brands 293
Brand Elements 295
Functions of Brands 296
Characteristics of Brands 296
Brand Management 297
Brand Equity 297
Branding Strategy 297
Brand Strategy 301
Brand Portfolio Strategy 301
Brand Architecture 302
Corporate Branding 303
•p Branding versus Advertising 303r Corporate Identity 303
Corporate Reputation 305
Chapter 13 EXPORTING, MANAGING AND LOGISTICS 311Regulations and Restrictions of Exporting and
Importing 313
Export Controls 313
Import Restrictions 313
Customs-Privileged Facilities 319
Foreign-Trade Zones 320
Export Documents , 320
Terms of Sale 321
Packing and Marking 323
Export Shipping 325
Logistics 326
The Foreign-Freight Forwarder 327
Chapter 14 ETHICS AND SOCIAL RESPONSIBILITY IN
INTERNATIONAL MARKETING 329
Ethical Environment 330
Anti-trust: an Evolving Issue 332
What is Social Responsibility?
Analysing Ethical Issues and Social Responsibility
Business Ethics
Ethics and International Marketing
Green Marketing
Ethical Behaviour in International Marketing
Part 5: Developing International Marketing Strategies
Chapter 15 PRODUCT DECISIONS FOR INTERNATIONAL
MARKETS
International Markets and Product Decisions
Products and Brands
Products and Culture
Innovative Products and Adaptation
Diffusion of Innovations
? Degree of Newness
Physical or Mandatory Requirements and Adaptation
Product Life Cycle and Adaptation
Screening Products for Adaptation
Analysis of Characteristics of Innovations
Analysis of Product Components
Quality Products
Chapter 16 MARKETING INDUSTRIAL PRODUCTS AND
BUSINESS SERVICES
The Industrial Product Market
Technology and Market Demand
The Volatility of Demand in Industrial Markets
Attributes of Product Quality
Price-Quality Relationship
Product Design-Quality Relationship
Service and Replacement Parts
Universal Standards
ISO 9000 Certification: an International Standardof Quality
Relationship Marketing
333
335
336
337
339
341
351
353
356
357
359
360
361
361
363
363
364
364
367
371
373
373
373
374
375
376
376
378
378
379
Promoting Industrial Products 382
Industrial Trade Shows 383
Countertrade: a Pricing Tool 385
Marketing Services Globally 385
Characteristics of Services 385
Entering International Markets 387
Market Environment for Business Services 388
Chapter 17 INTERNATIONAL DISTRIBUTION AND RETAILING 395Channel of Distribution Structures 396
Supplier-oriented Distribution Structure 397
European Distribution Structure 397
United States and Japanese Distribution Structure 397
Trends: from Traditional to Modern Channel Structures 401 .
The Internet 402
Factors Influencing Marketing Through the Internet 405
Electronic Commerce 406
Distribution Patterns 409
General Patterns 409
Retailing 411
Alternative Middleman Choices 415
Home Country Middlemen 416
Foreign-country Middlemen 421
Government-affiliated Middlemen 424
Factors Affecting Choice of Channel 424
Cost 425
Capital Requirement 425
Control 425
Coverage 425
Character 425
Continuity 426
Locating, Selecting and Motivating Channel Members 426
Locating Middlemen 426
Selecting Middlemen 427
Motivating Middlemen 427
Terminating Middlemen 427
Controlling Middlemen 428
Chapter 18 PRICING FOR INTERNATIONAL MARKETS 431Pricing Policy 432
Parallel Imports 432
Skimming versus Penetration Pricing 436
Leasing in International Markets 437
Factors Influencing International Pricing 438
Pricing Objectives 438
Price Escalation 439
Lower the Cost of Goods 445
Lower the Tariffs 445
Lower the Distribution Costs 445
Using Foreign-Trade Zones 445
Competition 447
Target Customer 447
Pricing Controls 448
? Administered Pricing 448
Price Setting by Industry Groups 448
International Agreements 451
Transfer Pricing 451/
Dumping 452
Countertrade as a Pricing Tool 453
Types of Countertrade 453
Western Firms and Countertrade 455
Proactive Countertrade Strategy 456
Chapter 19 INTERNATIONAL PROMOTION AND ADVERTISING 461
Promotional Mix 462
International Advertising 464
Pattern Advertising: Plan Globally, Act Locally 467
International Advertising and World Brands 467
Pan-European Advertising 469
International Market Segmentation and Promotional
Strategy 469
Challenges of International Advertising 470
Legal and Tax Considerations 470
Language Limitations 471
Cultural Diversity 471
Production and Cost Limitations 473
Media Planning and Analysis 474
Tactical Considerations 474
Specific Media Information 475
Sales Promotion 477
International Advertising and the Communications
Process 480
The Advertising Agency 484
International Control of Advertising 485
Chapter 20 PERSONAL SELLING AND NEGOTIATIONS 489Selling in International Markets 490
The International Selling Sequence 493
Understanding the Nuances of Cross-cultural
Communications 495
Recruitment of an International Sales Force 496
Selecting an International Sales Force 497
Training and Motivation 499
Cross-cultural Negotiations 500
Pre-negotiation Stage 501
Face-to-Face Negotiation Stage 503
Post-negotiation Stage 505
THE COUNTRY NOTEBOOK: A GUIDE FORDEVELOPING A MARKETING PLAN 511
Cultural Analysis 512
Economic Analysis 513
Market Audit and Competitive Market Analysis 514
Preliminary Marketing Plan 515
CASE STUDIES
Part 1 521
1.1 Strategy Formulation at Zanzibar 521
1.2 Starbucks: Going Global Fast 525
1.3 Halliburton 'Over-billing' Controversy 530
Part 2 537
2.1 Cultural Norms, Fair & Lovely and Advertising 537
2.2 The McDonald's 'Beef Fries' Controversy 541
2.3 Coke and Pepsi Learn to Compete in India 547
Part 3
3.1 Motorola in China
3.2 Adidas: The Marketing Policy for theEuropean Market
3.3 Aldi Lidl: International Expansion of TwoGerman Grocery Discounters
Part 4
4.1 Wal-Mart's German Misadventure
4.2 Handl Tyrol: Market Selection andCoverage Decisions of a Medium-sized Austrian Enterprise
4.3 IKEA: Entering Russia
4.4 The 'David Beckham' Brand
4.5 Luxottica: Internationalisationand Expansion
4.6 FedEx vs. UPS - Competing withContrasting Strategies in China
4.7 Tetra Pak's Packaging Innovations
Part 5
5.1 Levi-Strauss Signature: A New Brand forMass-Channel Retail Stores
5.2 Apple Inc.'s iPhone: Can iPhoneMaintain its Initial Momentum?
5.3 UGG Boots: Australian Generic Product toGlobal Luxury Brand
5.4 L'Oreal - Building a Global Cosmetic Brand
GlossaryIndexAuthor Index
561
566
573
573
581
584
588
594
600
609
621
621
626
635
644
653
661
681
