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To learn more about Cengage platforms and services, register or access your online learning solution, or purchase materials for your course, visit www.cengage.co.uk. Printed in the UK by Ashford Colour Press Print Number: 01 Print Year: 2022 Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. BRIEF CONTENTS PART I ANALYSIS 1 1 An introduction to international marketing 3 2 The world trading environment 42 3 Social and cultural considerations in international marketing 78 4 International marketing research and opportunity analysis 111 Part I Directed Study Activity: International marketing planning: analysis 153 PART II STRATEGY DEVELOPMENT 159 5 International niche marketing strategies for small- and medium-sized enterprises 160 6 Global strategies 205 7 Market entry strategies 248 8 International product and service management 280 Part II Directed Study Activity: International marketing planning: strategy development 320 PART III IMPLEMENTATION 325 9 International communications 326 10 The management of international distribution and logistics 371 11 Pricing for international markets 411 12 Strategic planning in technology-driven international markets 454 Part III Directed Study Activity: International marketing planning: implementation, control and evaluation 489 iiiiii Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. iv CONTENTS CONTENTS Situation analysis 33 Resources and capabilities 33 Knowledge management 33 Corporate objectives 34 Marketing strategies 34 Implementation of the marketing plan 35 The control process and feedback 35 Preface xvii Reasons for success 36 About the authors xxiv Characteristics of best practice in international Acknowledgements xxv marketing 37 Case study 1 Fast food: the healthy option goes global 38 Case study 2 Going international? You need a language strategy 39 PART I 2 THE WORLD TRADING ENVIRONMENT 42 ANALYSIS External factors impacting governments 1 and businesses 43 1 AN INTRODUCTION TO Environmental risks 45 Technology risks 45 INTERNATIONAL MARKETING 3 Political risks and world trading patterns 46 The strategic importance of international Looking back to look forward 50 marketing 4 The reasons countries trade 52 What is international marketing? 7 The theory of comparative advantage 52 International marketing defined 7 How comparative advantage is achieved 53 The international marketing environment 9 The international product life cycle 54 Political factors 10 Barriers to world trade 55 Economic factors 13 Marketing barriers 55 The developed economies 15 Tariff barriers 57 The emerging economies 16 Non-tariff barriers 57 Least developed countries 16 International Bank for Reconstruction Currency risks 16 and Development (IBRD) 59 Social/cultural factors 17 International Monetary Fund (IMF) 61 Cultural factors 17 The World Trade Organization 62 Social factors 18 The development of world trading groups 63 Technological factors 23 Forms of market agreement 63 Technological development through the Free trade area 63 internet 23 Customs union 65 Technology and the cultural paradox 24 Common market 65 Legal factors 25 Economic union 65 Environment/sustainability factors 26 Political union 65 Differences between international and domestic The European Union 66 marketing 27 The Single European Market 66 The international competitive landscape 28 European Monetary Union 68 The international market planning process 28 Strategic implications 68 The planning process 29 Widening European membership 68 Major evolutionary stages of planning 30 United States–Mexico–Canada Trade Area 69 The international marketing planning The Asian Pacific Trading Region 70 process 30 Asia Pacific Economic Cooperation (APEC) 70 Stakeholder expectations 31 Asean-China Free Trade Area (ACFTA) 72 Copyright 2022 Cengage Learning. 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CONTENTS v Barriers to developing a cohesive trading The role of international marketing research 112 region 72 What big data is telling us 113 Case study 1 Export tourism increases host Opportunity identification and analysis 116 country’s GDP 74 Scanning international markets 116 Demand pattern analysis 119 Case study 2 The mobile/cell phone services Multiple factor indices 119 market in Africa 75 Analogy estimation 119 3 SOCIAL AND CULTURAL Macro-survey technique 120 Risk evaluation 120 CONSIDERATIONS IN World Economic Forum 120 INTERNATIONAL MARKETING 78 The Knaepen Package 121 Social and cultural factors 79 Business Environment Risk What is culture? 80 Index (BERI) 121 The components of culture 81 International marketing segmentation 122 Language and culture 83 Geographical criteria 122 Culture and consumer behaviour 88 The business portfolio matrix 123 Is the buying process in all countries an Infrastructure/marketing institution individualistic activity? 89 matrix 123 Who, within the family, does the consumer International segmentation 124 buying process include? And is this Mosaic Global 125 consistent across cultures? 90 Hierarchical country: consumer Analyzing cultures and the implications for segmentation 127 consumer behaviour 91 The market profile analysis 128 Self-reference criterion 92 Analyzing foreign country markets 128 Cross-cultural analysis 92 Sources of information 128 The high/low context approach 93 Online databases 130 Hofstede’s 6-D model of national culture 93 Problems in using secondary data 132 Culture/communication typologies 97 Primary research in international markets 133 Social and cultural influences in B2B marketing 99 Problem discovery and definition report 134 Organizational buyers 99 Developing an innovative approach 135 Government buyer behaviour 99 Networking 136 The B2B buying process 100 Consortia 136 The role of culture in negotiation styles 100 The collection of primary data 136 Ethical issues in cross-cultural marketing 101 Organizing the research study 137 Bribery and corruption or gift giving? 103 Centralization vs decentralization 138 Bribery and corruption in business: a cultural In-house or agency 138 phenomenon 104 Research design 139 Piracy 105 Qualitative research 140 Survey methods 140 Case study 1 Sustainable Case Study: Questionnaire design 143 Starbucks helps coffee farmers sustain their Sample frame 143 cultural heritage 108 Fieldwork 144 Case study 2 Cultural challenges of the Brazilian Report preparation and presentation 145 market 109 Case study 1 Global brands use of 4 INTERNATIONAL MARKETING big data 147 RESEARCH AND OPPORTUNITY Case study 2 Cultural segmentation map 148 ANALYSIS 111 Directed Study Activities 152 The role of marketing research and opportunity Directed Study Activity International Marketing analysis 112 Planning: Analysis 153 Copyright 2022 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. vi CONTENTS Case study 1 Telensa: a shining light in smart PART II cities 200 Case study 2 Pin it, share it, desire it, sell it 201 6 GLOBAL STRATEGIES 205 STRATEGY DEVELOPMENT 159 Global strategies of responsible businesses 206 Views of globalization and who has gone 5 INTERNATIONAL NICHE global 208 MARKETING STRATEGIES FOR COVID-19’s impact on global trade 211 SMALL- AND MEDIUM-SIZED The drivers of globalization 214 ENTERPRISES 160 Alternative strategic responses 220 Global strategy drivers 221 The SME sector and its role within the global Globalization and standardization 222 economy 161 Standardization and adaptation 223 The role of SME internationalization in economic Globalized and customized 224 regeneration 163 Regional strategy 227 The challenges for SMEs from LDCs 163 International marketing management for global Government support 166 firms 229 The nature of SME international marketing Global strategy implementation 229 strategies 167 Opportunities in emerging markets for global Exporting 167 firms 229 Motivation 168 The emergence of MNEs from emerging Barriers to internationalization 169 markets 230 Niche marketing of domestically delivered Global appeal and the changing basis of services 172 competitive advantage 232 Importing and reciprocal trading 173 Increasing global appeal by building the global Direct marketing and electronic commerce 173 brand 233 The nature of international development 175 Global brand management 233 Geographic development of SMEs 177 Creating a global presence by achieving global Market concentration and expansion 178 reach 234 Where the domestic market is redefined 179 Managing diverse and complex activities Where the SME international development is the across a range of similar but often disparate result of networking 179 markets and cultures 236 Entrepreneur and family networks 179 Organization structure for transnational Where the SME is born global 180 firms 237 Supply chain internationalization 182 Systems, processes and control 237 Developing relationships 184 Control 237 International strategic marketing management in Return on marketing investment 238 SMEs 184 Planning systems and processes 238 The McKinsey 7S framework 184 Building skills in transnational organizations 239 The generic marketing strategies for SME Staff and the problems of international internationalization 185 management 240 The factors which affect the choice of an SME’s What makes a good international international marketing strategy 187 manager? 240 Market factors 187 Management culture 241 Company factors 188 Management style and shared values 242 Country selection 189 Case study 1 Huawei: overcoming market Organization structure 190 obstacles 243 International entrepreneurship and fast growth 195 The secret of high growth 195 Case study 2 Reshoring: rethinking global The future of SME internationalization 199 reach 244 Copyright 2022 Cengage Learning. 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CONTENTS vii 7 MARKET ENTRY STRATEGIES 248 Reasons for adaptation of the product 291 Product acceptability 292 The alternative market entry methods 249 Shortening product life cycles 292 Risk and control in market entry 252 Franchising, joint ventures and alliances 292 Indirect exporting 253 Marketing management 293 Domestic purchasing 253 Environmental and social responsibility Export management companies or export issues 293 houses 253 Product policy 295 Piggybacking 254 Product strategies 295 Trading companies 255 Managing products across borders 297 Direct exporting 256 The product life cycle 297 Factors for success in exporting 256 Product portfolio analysis 298 Selection of exporting method 257 Introduction and elimination activities 299 Agents 258 Image, branding and positioning 300 Achieving a satisfactory manufacturer–agent Country of origin effects 300 relationship 258 International branding 301 Distributors 258 Brand categories 302 Other direct exporting methods 259 Brand value 303 Management contracts 259 Branding strategies 305 Franchising 259 Brand piracy 307 Exporting through online platforms 260 Positioning 307 Foreign manufacturing strategies without direct Innovation and new product development 308 investment 262 The most innovative companies 309 Reasons for setting up overseas manufacture The nature of new product development 309 and service operations 262 The new product development process 311 Contract manufacture 264 Approaches to technology transfer and the Licensing 264 benefits for marketing 312 Foreign manufacturing strategies with direct Research and development strategies 312 investment 265 Success and failure in new product Assembly 266 development 313 Wholly owned subsidiary 266 Case study 1 A silver lining: new product Company acquisitions and mergers 266 developments needed 316 Cooperative strategies 270 Joint ventures 270 Case study 2 Accor inseparable services: online Strategic alliances 271 and face-to-face 317 Minority stake share holdings 273 Directed Study Activity International Marketing Case study 1 Wagamama’s international Planning: Strategy Development 320 expansion 276 Case study 2 IKEA in China: market entry flat packed? 277 PART III 8 INTERNATIONAL PRODUCT AND SERVICE MANAGEMENT 280 IMPLEMENTATION The nature of products and services 281 325 International product and service marketing 281 9 INTERNATIONAL The international marketing of service 284 COMMUNICATIONS 326 The components of the international product offer 285 The role of marketing communications 327 Products, services and value propositions 287 Internal marketing 327 Factors affecting international product and Relationship marketing 328 service management 289 External marketing 328 Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. viii CONTENTS Communicating product and service Case study 1 Greenpeace: global differentiation 329 campaigner 366 Communicating the corporate identity to Case study 2 How do corporate brands survive a international stakeholders 329 global crisis? 368 The fundamental challenges for international marketing communications 332 10 THE MANAGEMENT OF International marketing communications, standardization and adaptation 335 INTERNATIONAL DISTRIBUTION Towards standardization 336 AND LOGISTICS 371 Towards adaptation 338 The challenges in managing an international International marketing communications distribution strategy 372 strategy 339 Selecting foreign country market Communicating with existing and potential customers 340 intermediaries 373 The integration of communications 342 Indirect and direct channels 374 Coordination and planning of the Channel selection 376 international marketing communications Customer characteristics and culture 377 Company objectives and competitive strategy 344 The marketing communications tools 344 activity 379 Word-of-mouth and personal selling 345 Character of the market 379 Exhibitions, trade fairs and experiential Capital required and costings 379 marketing 347 The coverage needed 381 Trade missions 348 Control, continuity and communication 381 Advertising 348 The selection and contracting process 381 Television advertising 349 Building relationships in foreign market Press advertising 350 channels 382 The use of agencies and consultancies 351 Motivating international marketing Sales promotions 352 intermediaries 382 Direct marketing 352 Controlling intermediaries in international Communicating with the wider range of markets 383 stakeholders 352 Channel updating 384 Corporate identity 353 Developing a company-owned international Sponsorship and celebrity endorsement 353 sales force 384 Product placement and celebrity Trends in retailing in international markets 385 endorsement 356 The differing patterns of retailing around the Public relations 357 world 385 Crisis management 357 Traditional retailing 387 Online communications 358 Intermediary retailing 388 The nature of online communications 358 Structured retailing 390 Online advertising 359 Advanced retailing 390 Social media advertising 359 The globalization of retailing 391 Paid search advertising 360 Marketing implications for development of Display advertising 361 international distribution strategies 392 Native advertising 361 Internet retailing 393 Developing profitable, long-term marketing The management of the physical distribution of relationships 363 goods 396 The concept of relationship marketing 363 The logistics approach to physical Database development 364 distribution 396 Customer relationship management 364 Customer service 397 Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.