1111 2 3 4 5 6 7 8 9 10111 1 2 3 4111 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30 1 2 3 4 5 6 7 8 9 40 41 42 43 44 45111
Contents
List of illustrations Preface
xiii xviii
1 NATURE OF INTERNATIONAL MARKETING: CHALLENGES AND OPPORTUNITIES Process of international marketing International dimensions of marketing Domestic marketing vs. international marketing The applicability of marketing Multinational corporations (MNCs) The process of internationalization Benefits of international marketing Conclusion Case 1.1 Sony: the sound of entertainment
1 3 4 5 6 7 15 15 18 19
2 TRADE THEORIES AND ECONOMIC DEVELOPMENT Basis for international trade Exchange ratios, trade, and gain Factor endowment theory The competitive advantage of nations A critical evaluation of trade theories Economic cooperation Conclusion Case 2.1 The United States of America vs. the United States of Europe
22 23 26 27 32 33 39 46 47
3 TRADE DISTORTIONS AND MARKETING BARRIERS Protection of local industries Government: a contribution to protectionism Marketing barriers: tariffs Marketing barriers: nontariff barriers Private barriers World Trade Organization (WTO) Preferential systems Some remarks on protectionism Conclusion Case 3.1 Global war on drugs or tuna?
52 55 57 59 62 73 74 76 77 78 80
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CONTENTS 4 POLITICAL ENVIRONMENT Multiplicity of political environments Types of government: political systems Types of government: economic systems Political risks Privatization Indicators of political instability Analysis of political risk or country risk Management of political risk Measures to minimize political risk Political insurance Conclusion Case 4.1 Hoa Ni Shoe Company
84 86 89 92 100 102 102 104 106 107 112 114 115
5 LEGAL ENVIRONMENT Multiplicity of legal environments Legal systems Jurisdiction and extraterritoriality Legal form of organization Branch vs. subsidiary Litigation vs. arbitration Bribery Intellectual property Counterfeiting Conclusion Case 5.1 International auto safety and patents Case 5.2 Bribery: a matter of national perspective
121 122 124 125 128 129 131 132 139 146 148 149 150
6 CULTURE Culture and its characteristics Influence of culture on consumption Influence of culture on thinking processes Influence of culture on communication processes Cultural universals Cultural similarities: an illusion Communication through verbal language Communication through nonverbal language Subculture Conclusion Case 6.1 Cross-cultural marketing: a classroom simulation
153 155 156 157 158 159 160 160 167 178 181 182
7 CONSUMER BEHAVIOR IN THE INTERNATIONAL CONTEXT: PSYCHOLOGICAL AND SOCIAL DIMENSIONS Perspectives on consumer behavior Motivation Learning Personality Psychographics Perception Attitude Social class
187 190 190 192 193 197 198 202 203
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Group Family Opinion leadership Diffusion process of innovations Conclusion Case 7.1 Beneath Hijab: marketing to the veiled women of Iran
204 205 206 206 207 208
8 MARKETING RESEARCH AND INFORMATION SYSTEM Nature of marketing research Marketing information sources Secondary research Primary research Sampling Basic methods of data collection Measurement Marketing information system Conclusion Case 8.1 B&R Bank: developing a new market
213 214 216 216 218 220 222 224 232 237 238
9 FOREIGN MARKET ENTRY STRATEGIES Foreign direct investment (FDI) Exporting Licensing Management contract Joint venture Manufacturing Assembly operations Turnkey operations Acquisition Strategic alliances Analysis of entry strategies Foreign trade zones (FTZs) Conclusion Case 9.1 How to export houses
243 245 246 248 252 252 254 257 260 260 262 263 265 267 267
10 PRODUCT STRATEGIES: BASIC DECISIONS AND PRODUCT PLANNING What is a product? New product development Market segmentation Product adoption Theory of international product life cycle (IPLC) Product standardization vs. product adaptation A move toward world product: international or national product? Marketing of services Conclusion Case 10.1 McDonaldization
272 275 275 277 278 279 285 297 298 302 304
11 PRODUCT STRATEGIES: BRANDING AND PACKAGING DECISIONS Branding decisions Branding levels and alternatives Brand consolidation
308 310 313 323
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CONTENTS Brand origin and selection Brand characteristics Brand protection Packaging: functions and criteria Mandatory package modification Optional package modification Conclusion Case 11.1 Planet Ralph: the global marketing strategy of Polo Ralph Lauren Case 11.2 Majorica S.A. vs. R. H. Macy
324 326 330 336 336 337 338 339 341
12 CHANNELS OF DISTRIBUTION Direct and indirect selling channels Types of intermediaries: direct channel Types of intermediaries: indirect channel Channel development Channel adaptation Channel decisions Determinants of channel types Distribution in Japan Selection of channel members Representation agreement and termination Black market Gray market Distribution of services Conclusion Case 12.1 The international record industry Case 12.2 Schwarzkopf, Inc. distribution network
344 346 349 351 359 361 361 363 367 368 369 371 371 378 380 380 382
13 PHYSICAL DISTRIBUTION AND DOCUMENTATION Modes of transportation Cargo or transportation insurance Packing Freight forwarder and customs broker Documentation Conclusion
386 388 394 394 398 399 410
14 PROMOTION STRATEGIES: PERSONAL SELLING, PUBLICITY, AND SALES PROMOTION Promotion and communication Promotion mix Personal selling Publicity Sale promotion Overseas product exhibitions Conclusion Case 14.1 Selling in the EU Case 14.2 AllWorld Corporation
413 414 416 416 422 426 429 433 434 435
15 PROMOTION STRATEGIES: ADVERTISING The role of advertising Patterns of advertising expenditures Advertising and regulations
440 441 442 442
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Advertising media Standardized international advertising Global advertising: true geocentricity Conclusion Case 15.1 The Marlboro Man: should we modify his image overseas?
443 455 465 466 466
16 PRICING STRATEGIES: BASIC DECISIONS The role of price Price standardization Pricing decisions Alternative pricing strategies Dumping Price distortion Inflation Transfer pricing Conclusion Case 16.1 Blood diamonds
472 473 474 474 480 481 485 486 489 492 492
17 PRICING STRATEGIES: COUNTERTRADE AND TERMS OF SALE/PAYMENT Countertrade Price quotation Terms of sale Methods of financing and means of payment Conclusion Case 17.1 Countertrade: counterproductive?
495 496 502 503 505 518 518
18 SOURCES OF FINANCING AND INTERNATIONAL MONEY MARKETS Nonfinancial institutions Financial institutions Government agencies International financial institutions/development banks International Monetary Fund (IMF) Financial centers Conclusion Case 18.1 Too close for comfort
522 525 528 533 535 537 540 542 543
19 CURRENCIES AND FOREIGN EXCHANGE Money Foreign exchange Foreign exchange market Foreign exchange rate Exchange rate systems Official classification of exchange rate regimes Evaluation of floating rates Financial implications and strategies Conclusion Case 19.1 Ups and downs: a foreign exchange simulation game
549 551 552 553 556 558 563 564 565 572 573
Index
577
xi