Chapter 1
Section 1: introduction to international marketing.............................................................9
1. What are the meanings of the terms “multinational corporation,” “born-global,” “home
country,” and “host country”?..........................................................................................9
1.1 International marketing.................................................................................................................. 9
1.2 Who does international marketing?................................................................................................ 9
1.3 How do we organize?...................................................................................................................... 9
2. What are the essential ingredients in the marketing mix as they relate to international
markets, needs, and wants?.............................................................................................. 9
2.1 Markets wants and needs............................................................................................................... 9
2.2 The STP process............................................................................................................................ 10
3. How are the factors that create international marketing complexity linked to creating a
global mind-set for marketing activities?.........................................................................10
3.1 International marketing complexity.............................................................................................. 10
4. Why is the concepts of sustainability linked to today’s international marketplace?........10
4.1 Sustainability................................................................................................................................ 10
4.1.1 A sustainability framework...................................................................................................... 10
Section 2: culture in international marketing...................................................................10
1. What is culture and the various elements of culture and how they affect consumer
behavior and marketing?................................................................................................ 10
1.1 Culture.......................................................................................................................................... 10
1.1.1 Material culture....................................................................................................................... 11
1.1.2 Subjective culture................................................................................................................... 11
2. What are the main models of cross-cultural differences and how can they help managers
when making international marketing decisions?.............................................................11
2.1 Values and dimensions................................................................................................................. 11
2.2 Hofstede’s dimensions of culture.................................................................................................. 11
2.3 GLOBE........................................................................................................................................... 11
2.4 Individual-level values (Schwartz)................................................................................................. 12
2.5 Time orientation............................................................................................................................ 12
2.5.1 Presented-oriented cultures.................................................................................................... 12
2.5.2 Future-oriented cultures......................................................................................................... 12
2.5.3 Past-oriented societies............................................................................................................ 13
2.6 Three cultures world..................................................................................................................... 13
2.7 Consumer culture......................................................................................................................... 13
2.7.1 Global consumer culture......................................................................................................... 13
2.8 cultural distance........................................................................................................................... 13
2.9 Physic distance............................................................................................................................. 13
3. Why should a marketing team examine cultural imperatives, cultural electives, and
cultural exclusives when entering a host country?...........................................................13
3.1 Cultural imperatives...................................................................................................................... 13
1
, 3.2 Cultural electives.......................................................................................................................... 14
3.3 Cultural exclusives........................................................................................................................ 14
3.4 Subcultures and countercultures.................................................................................................. 14
3.5 cultural change............................................................................................................................. 14
3.6 aesthetics..................................................................................................................................... 14
3.7 Religion......................................................................................................................................... 14
3.8 Ethics, social responsibility and culture........................................................................................ 14
Section 3: global trade and integration............................................................................14
1. How does free trade influence the international marketing context?.............................14
1.1 Free trade..................................................................................................................................... 14
1.2 Theory of absolute advantage...................................................................................................... 15
1.3 Theory of comparative advantage................................................................................................ 15
1.4 Comparative advantage and trade............................................................................................... 15
1.5 Benefits of free trade.................................................................................................................... 15
1.6 Trade and governmental forms..................................................................................................... 15
1.7 Governmental policies supporting trade.......................................................................................15
2. What are the relationships between free trade, integration, and international marketing?
...................................................................................................................................... 16
2.1 Integration.................................................................................................................................... 16
2.1.1 Levels of integration defined.................................................................................................. 16
2.1.2 Reasons for integration success..............................................................................................16
2.1.3 Integration trends................................................................................................................... 16
2.2 The world trade organization and integration...............................................................................16
2.2.1 World trade organization powers............................................................................................ 16
3. What are the major trade agreements around the world?.............................................17
3.1 European integration.................................................................................................................... 17
3.2 Organization of the European union.............................................................................................. 17
4. How does protectionism affect free trade?...................................................................17
4.1 Protectionism................................................................................................................................ 17
4.1.1 Government policies limiting trade.........................................................................................17
4.1.2 Arguments for protectionism.................................................................................................. 17
Section 4: country selection and entry strategies.............................................................17
1. What two factors drive market economies, and how are these factors different in
command economies?..................................................................................................... 18
1.1 Economic systems........................................................................................................................ 18
1.1.1 Market economy..................................................................................................................... 18
1.1.2 Components of market economies.......................................................................................... 18
1.1.3 Command economy................................................................................................................ 18
1.1.4 Mixed economy....................................................................................................................... 18
2. How do Rostow’s five stages of economic development apply to the concepts of most-,
less-, and least-developed economies, emerging markets, newly industrialized countries,
and transition economies?.............................................................................................. 19
2.1 Economic development................................................................................................................. 19
2
, 2.1.1 Stages..................................................................................................................................... 19
2.2 Emerging markets......................................................................................................................... 19
2.3 Transition economies.................................................................................................................... 20
2.3.1 Features.................................................................................................................................. 20
2.3.2 Struggles................................................................................................................................ 20
3. What factors help create a national competitive advantage for an economy?.................20
3.1 National competitive advantage................................................................................................... 20
3.1.1 Demand conditions................................................................................................................. 20
3.1.2 Related and supporting industries..........................................................................................20
3.1.3 Firm strategy, structure, and rivalry........................................................................................20
3.1.4 Factor conditions..................................................................................................................... 21
3.1.5 Government............................................................................................................................ 21
4. How do the five forces that increase competitive rivalries relate to industry-level
competitive advantage?.................................................................................................. 21
4.1 Industry-level competitive advantage (Porter’s five forces)..........................................................21
4.1.1 Threat of new entrants........................................................................................................... 21
4.1.2 Threat of substitute products.................................................................................................. 22
4.1.3 Bargaining power of suppliers................................................................................................. 22
4.1.4 Bargaining power of consumers..............................................................................................22
4.1.5 Rivalry among competitors..................................................................................................... 22
4.2 Sustainability and international marketing...................................................................................22
5. How do the various modes of entry balance a company’s level of control with its level of
risk?............................................................................................................................... 22
5.1 Modes of entry.............................................................................................................................. 23
5.1.1 Exporting................................................................................................................................ 23
5.1.2 Licensing................................................................................................................................. 23
5.1.3 Franchising............................................................................................................................. 23
5.1.4 Joint ventures.......................................................................................................................... 23
5.1.5 Strategic alliances.................................................................................................................. 24
5.1.6 Wholly owned subsidiary........................................................................................................ 24
Section 1: markets and segmentation in an international context.....................................24
1. What is market segmentation and how does international market segmentation differ
from domestic market segmentation?..............................................................................24
1.1 Markets and market segments...................................................................................................... 24
1.2 International market segmentation............................................................................................... 24
1.3 The STP approach to markets....................................................................................................... 25
2. What are the primary factors used to identify international consumer and business-to-
business market segments?............................................................................................ 25
2.1 International market segmentation............................................................................................... 25
2.2 International consumer market segments....................................................................................25
2.2.1 Demographics......................................................................................................................... 25
2.2.2 Psychographics....................................................................................................................... 25
2.2.3 Geographic area..................................................................................................................... 25
2.2.4 Geodemographic segmentation..............................................................................................25
2.2.5 Benefit segmentation............................................................................................................. 25
2.3 International business-to-business market segmentation.............................................................26
2.4 Dual channel marketing................................................................................................................ 26
3
, 3. How can a marketing team use regional and national segmentation methods to improve a
company’s global marketing program?............................................................................26
3.1 Methods for regional and national segmentation..........................................................................26
3.2 GLOBE and Ronen and Shenkar (1985) country clusters...............................................................26
3.3 Green marketing ad sustainability-oriented segments..................................................................26
3.4 Market segment analysis.............................................................................................................. 27
4. How to assess market potential of a selected market segment?....................................27
4.1 Assessing market potential........................................................................................................... 27
4.2 Ethical issues in international segmentation.................................................................................27
Section 2: international positioning.................................................................................27
1. What two primary elements shape a product’s positioning in the global marketplace?...27
1.1 The nature of international product positioning............................................................................27
2. What are the main approaches to international product positioning?............................27
2.1 Positioning statements and approaches.......................................................................................27
3. How can a product’s position become an asset in an international marketing effort?.....28
3.1 International positioning objectives.............................................................................................. 28
3.1.1 Differentiation......................................................................................................................... 28
3.1.2 Brand equity........................................................................................................................... 28
4. What additional challenges affect international product positioning programs?.............28
4.1 International product positioning challenges................................................................................28
4.2 Country image.............................................................................................................................. 28
4.3 Positioning challenges and regulation........................................................................................... 29
4.4 Packaging and labels.................................................................................................................... 29
5. What steps and tactics are used to establish positioning, evaluate positioning, and
conduct repositioning in international markets?...............................................................29
5.1 Steps for international positioning................................................................................................ 29
5.2 Different types of competition...................................................................................................... 29
5.3 Identifying points-of-difference..................................................................................................... 29
5.4 Repositioning................................................................................................................................ 29
5.5 Sustainability and international positioning..................................................................................30
5.6 Greenwashing sins........................................................................................................................ 30
5.7 Ethical issues in international positioning.....................................................................................30
Section 1: international product and brand marketing......................................................30
1. What basic product categories and product dimensions are available in domestic and
international markets?....................................................................................................30
1.1 Types of products.......................................................................................................................... 30
1.2 Goods versus services.................................................................................................................. 30
1.3 Classification of products.............................................................................................................. 31
1.3.1 Convenience products............................................................................................................ 31
1.3.2 Shopping products.................................................................................................................. 31
4
Section 1: introduction to international marketing.............................................................9
1. What are the meanings of the terms “multinational corporation,” “born-global,” “home
country,” and “host country”?..........................................................................................9
1.1 International marketing.................................................................................................................. 9
1.2 Who does international marketing?................................................................................................ 9
1.3 How do we organize?...................................................................................................................... 9
2. What are the essential ingredients in the marketing mix as they relate to international
markets, needs, and wants?.............................................................................................. 9
2.1 Markets wants and needs............................................................................................................... 9
2.2 The STP process............................................................................................................................ 10
3. How are the factors that create international marketing complexity linked to creating a
global mind-set for marketing activities?.........................................................................10
3.1 International marketing complexity.............................................................................................. 10
4. Why is the concepts of sustainability linked to today’s international marketplace?........10
4.1 Sustainability................................................................................................................................ 10
4.1.1 A sustainability framework...................................................................................................... 10
Section 2: culture in international marketing...................................................................10
1. What is culture and the various elements of culture and how they affect consumer
behavior and marketing?................................................................................................ 10
1.1 Culture.......................................................................................................................................... 10
1.1.1 Material culture....................................................................................................................... 11
1.1.2 Subjective culture................................................................................................................... 11
2. What are the main models of cross-cultural differences and how can they help managers
when making international marketing decisions?.............................................................11
2.1 Values and dimensions................................................................................................................. 11
2.2 Hofstede’s dimensions of culture.................................................................................................. 11
2.3 GLOBE........................................................................................................................................... 11
2.4 Individual-level values (Schwartz)................................................................................................. 12
2.5 Time orientation............................................................................................................................ 12
2.5.1 Presented-oriented cultures.................................................................................................... 12
2.5.2 Future-oriented cultures......................................................................................................... 12
2.5.3 Past-oriented societies............................................................................................................ 13
2.6 Three cultures world..................................................................................................................... 13
2.7 Consumer culture......................................................................................................................... 13
2.7.1 Global consumer culture......................................................................................................... 13
2.8 cultural distance........................................................................................................................... 13
2.9 Physic distance............................................................................................................................. 13
3. Why should a marketing team examine cultural imperatives, cultural electives, and
cultural exclusives when entering a host country?...........................................................13
3.1 Cultural imperatives...................................................................................................................... 13
1
, 3.2 Cultural electives.......................................................................................................................... 14
3.3 Cultural exclusives........................................................................................................................ 14
3.4 Subcultures and countercultures.................................................................................................. 14
3.5 cultural change............................................................................................................................. 14
3.6 aesthetics..................................................................................................................................... 14
3.7 Religion......................................................................................................................................... 14
3.8 Ethics, social responsibility and culture........................................................................................ 14
Section 3: global trade and integration............................................................................14
1. How does free trade influence the international marketing context?.............................14
1.1 Free trade..................................................................................................................................... 14
1.2 Theory of absolute advantage...................................................................................................... 15
1.3 Theory of comparative advantage................................................................................................ 15
1.4 Comparative advantage and trade............................................................................................... 15
1.5 Benefits of free trade.................................................................................................................... 15
1.6 Trade and governmental forms..................................................................................................... 15
1.7 Governmental policies supporting trade.......................................................................................15
2. What are the relationships between free trade, integration, and international marketing?
...................................................................................................................................... 16
2.1 Integration.................................................................................................................................... 16
2.1.1 Levels of integration defined.................................................................................................. 16
2.1.2 Reasons for integration success..............................................................................................16
2.1.3 Integration trends................................................................................................................... 16
2.2 The world trade organization and integration...............................................................................16
2.2.1 World trade organization powers............................................................................................ 16
3. What are the major trade agreements around the world?.............................................17
3.1 European integration.................................................................................................................... 17
3.2 Organization of the European union.............................................................................................. 17
4. How does protectionism affect free trade?...................................................................17
4.1 Protectionism................................................................................................................................ 17
4.1.1 Government policies limiting trade.........................................................................................17
4.1.2 Arguments for protectionism.................................................................................................. 17
Section 4: country selection and entry strategies.............................................................17
1. What two factors drive market economies, and how are these factors different in
command economies?..................................................................................................... 18
1.1 Economic systems........................................................................................................................ 18
1.1.1 Market economy..................................................................................................................... 18
1.1.2 Components of market economies.......................................................................................... 18
1.1.3 Command economy................................................................................................................ 18
1.1.4 Mixed economy....................................................................................................................... 18
2. How do Rostow’s five stages of economic development apply to the concepts of most-,
less-, and least-developed economies, emerging markets, newly industrialized countries,
and transition economies?.............................................................................................. 19
2.1 Economic development................................................................................................................. 19
2
, 2.1.1 Stages..................................................................................................................................... 19
2.2 Emerging markets......................................................................................................................... 19
2.3 Transition economies.................................................................................................................... 20
2.3.1 Features.................................................................................................................................. 20
2.3.2 Struggles................................................................................................................................ 20
3. What factors help create a national competitive advantage for an economy?.................20
3.1 National competitive advantage................................................................................................... 20
3.1.1 Demand conditions................................................................................................................. 20
3.1.2 Related and supporting industries..........................................................................................20
3.1.3 Firm strategy, structure, and rivalry........................................................................................20
3.1.4 Factor conditions..................................................................................................................... 21
3.1.5 Government............................................................................................................................ 21
4. How do the five forces that increase competitive rivalries relate to industry-level
competitive advantage?.................................................................................................. 21
4.1 Industry-level competitive advantage (Porter’s five forces)..........................................................21
4.1.1 Threat of new entrants........................................................................................................... 21
4.1.2 Threat of substitute products.................................................................................................. 22
4.1.3 Bargaining power of suppliers................................................................................................. 22
4.1.4 Bargaining power of consumers..............................................................................................22
4.1.5 Rivalry among competitors..................................................................................................... 22
4.2 Sustainability and international marketing...................................................................................22
5. How do the various modes of entry balance a company’s level of control with its level of
risk?............................................................................................................................... 22
5.1 Modes of entry.............................................................................................................................. 23
5.1.1 Exporting................................................................................................................................ 23
5.1.2 Licensing................................................................................................................................. 23
5.1.3 Franchising............................................................................................................................. 23
5.1.4 Joint ventures.......................................................................................................................... 23
5.1.5 Strategic alliances.................................................................................................................. 24
5.1.6 Wholly owned subsidiary........................................................................................................ 24
Section 1: markets and segmentation in an international context.....................................24
1. What is market segmentation and how does international market segmentation differ
from domestic market segmentation?..............................................................................24
1.1 Markets and market segments...................................................................................................... 24
1.2 International market segmentation............................................................................................... 24
1.3 The STP approach to markets....................................................................................................... 25
2. What are the primary factors used to identify international consumer and business-to-
business market segments?............................................................................................ 25
2.1 International market segmentation............................................................................................... 25
2.2 International consumer market segments....................................................................................25
2.2.1 Demographics......................................................................................................................... 25
2.2.2 Psychographics....................................................................................................................... 25
2.2.3 Geographic area..................................................................................................................... 25
2.2.4 Geodemographic segmentation..............................................................................................25
2.2.5 Benefit segmentation............................................................................................................. 25
2.3 International business-to-business market segmentation.............................................................26
2.4 Dual channel marketing................................................................................................................ 26
3
, 3. How can a marketing team use regional and national segmentation methods to improve a
company’s global marketing program?............................................................................26
3.1 Methods for regional and national segmentation..........................................................................26
3.2 GLOBE and Ronen and Shenkar (1985) country clusters...............................................................26
3.3 Green marketing ad sustainability-oriented segments..................................................................26
3.4 Market segment analysis.............................................................................................................. 27
4. How to assess market potential of a selected market segment?....................................27
4.1 Assessing market potential........................................................................................................... 27
4.2 Ethical issues in international segmentation.................................................................................27
Section 2: international positioning.................................................................................27
1. What two primary elements shape a product’s positioning in the global marketplace?...27
1.1 The nature of international product positioning............................................................................27
2. What are the main approaches to international product positioning?............................27
2.1 Positioning statements and approaches.......................................................................................27
3. How can a product’s position become an asset in an international marketing effort?.....28
3.1 International positioning objectives.............................................................................................. 28
3.1.1 Differentiation......................................................................................................................... 28
3.1.2 Brand equity........................................................................................................................... 28
4. What additional challenges affect international product positioning programs?.............28
4.1 International product positioning challenges................................................................................28
4.2 Country image.............................................................................................................................. 28
4.3 Positioning challenges and regulation........................................................................................... 29
4.4 Packaging and labels.................................................................................................................... 29
5. What steps and tactics are used to establish positioning, evaluate positioning, and
conduct repositioning in international markets?...............................................................29
5.1 Steps for international positioning................................................................................................ 29
5.2 Different types of competition...................................................................................................... 29
5.3 Identifying points-of-difference..................................................................................................... 29
5.4 Repositioning................................................................................................................................ 29
5.5 Sustainability and international positioning..................................................................................30
5.6 Greenwashing sins........................................................................................................................ 30
5.7 Ethical issues in international positioning.....................................................................................30
Section 1: international product and brand marketing......................................................30
1. What basic product categories and product dimensions are available in domestic and
international markets?....................................................................................................30
1.1 Types of products.......................................................................................................................... 30
1.2 Goods versus services.................................................................................................................. 30
1.3 Classification of products.............................................................................................................. 31
1.3.1 Convenience products............................................................................................................ 31
1.3.2 Shopping products.................................................................................................................. 31
4
