International Marketing
Pervez N. Ghauri
Yoëlle Kempen
International Marketing
International Business and languages
,Table of Contents
Chapter 1 The scope and challenge.......................................................................5
An over view....................................................................................................... 5
International marketing defined..........................................................................5
International marketing task............................................................................... 5
Different marketing orientations.........................................................................6
Globalisations of markets.................................................................................... 7
Developing a global awareness...........................................................................7
Chapter 2 The dynamic international markets.......................................................7
The twentieth century......................................................................................... 7
Balance of payments........................................................................................... 8
Protectionism...................................................................................................... 8
Easing trade restrictions................................................................................... 10
Chapter 3 geography and history Geography and international markets.............10
Geography, nature and international trade.......................................................10
World trade routes............................................................................................ 11
Historical perspective in international trade.....................................................11
Chapter 4 Cultural Dynamics and International Marketing...................................12
An overview...................................................................................................... 12
Cultural knowledge........................................................................................... 13
Elements of culture........................................................................................... 13
Cultural change................................................................................................. 15
Required adaption............................................................................................. 15
Chapter 5 The international political and legal environment................................17
Political environment......................................................................................... 17
Political risks..................................................................................................... 17
Encouraging foreign investments......................................................................18
Assessing political vulnerability........................................................................19
Reducing Political Vulnerability..........................................................................19
Legal environment............................................................................................ 19
Legal recourses in resolving International Disputes..........................................20
Protection of Intellectual Property Rights..........................................................20
Commercial Law within Countries.....................................................................21
Legal Environment of The EU............................................................................ 21
1
,Chapter 6 Reaching international markets...........................................................22
Breadth and scope of international marketing research....................................22
The research process........................................................................................ 22
Responsibility for conducting marketing research.............................................24
Estimating market demand............................................................................... 25
Multinational marketing information systems...................................................25
Chapter 7 Emerging markets and market behaviour............................................26
Emerging markets............................................................................................. 26
Marketing and economic development.............................................................26
Marketing in emerging markets........................................................................26
Emerging market groups................................................................................... 27
Chapter 8 Regional Market Groups and Marketing Implications...........................28
Reasons for economic union (La raison d’être).................................................28
Patterns of multinational cooperation...............................................................29
Europe............................................................................................................... 31
The Americas.................................................................................................... 33
Asia................................................................................................................... 34
Africa................................................................................................................. 34
Middle East........................................................................................................ 34
Future regional Market groups..........................................................................35
Strategic Implications For Marketing.................................................................35
Chapter 9 International marketing strategies.......................................................36
International marketing management...............................................................36
Market-driven versus market-driving strategies................................................38
Competition in the global marketplace.............................................................38
Formulating international marketing strategy...................................................39
Strategic planning............................................................................................. 41
Chapter 10 International Market entry strategies.................................................43
Becoming international..................................................................................... 43
Market entry objectives..................................................................................... 43
Marketing opportunity assessment...................................................................44
Market/Country selection.................................................................................. 44
Marketing entry strategies................................................................................ 45
Chapter 11 International Segmentation and Positioning......................................47
2
, International market segmentation...................................................................47
Market positioning............................................................................................. 49
Positioning in international marketing...............................................................49
Chapter 12 international branding strategies.......................................................50
Introduction to branding.................................................................................... 50
Brand elements................................................................................................. 51
Characteristics of brands.................................................................................. 52
Brand management.......................................................................................... 52
Brand strategy.................................................................................................. 54
Cooperate branding.......................................................................................... 54
Chapter 13 exporting and logistics.......................................................................56
Regulations and restrictions of exporting and importing...................................56
Customs-privileged facilities............................................................................. 57
Export documents............................................................................................. 58
Terms of sale..................................................................................................... 59
Logistics............................................................................................................ 60
Chapter 14 ethics and social responsibility in international marketing................61
Ethical environment.......................................................................................... 61
Social responsibility........................................................................................... 61
Ethics and international marketing...................................................................62
Ethical behaviour in international marketing.....................................................63
Chapter 15 product decisions for international markets.......................................64
International markets and product decisions....................................................64
Products and brands......................................................................................... 64
Products and culture......................................................................................... 65
Screening products for adaption.......................................................................66
Quality products................................................................................................ 67
Chapter 16 marketing industrial products and business services........................67
The industrial product market...........................................................................67
Attributes and product quality...........................................................................68
Relation marketing............................................................................................ 69
Promoting industrial product............................................................................. 70
Marketing services globally............................................................................... 70
Chapter 17 International Distribution and Retailing.............................................72
Channel of distribution structures.....................................................................72
3
, The internet....................................................................................................... 73
Distribution patterns......................................................................................... 74
Alternative middleman choices.........................................................................75
Factors affecting choice of channel...................................................................77
Locating, Selecting and Motivating Channel Members......................................78
Chapter 18 pricing for international markets........................................................79
Pricing policy..................................................................................................... 79
Factors influencing international pricing...........................................................80
Administered pricing......................................................................................... 82
Transfer pricing................................................................................................. 82
Dumping........................................................................................................... 83
Countertrade as a pricing tool...........................................................................83
Chapter 19 international promotion and advertising............................................84
Promotional mix................................................................................................ 84
International advertising................................................................................... 84
Challenges of international advertising.............................................................85
Media planning and analysis............................................................................. 86
Sales promotion................................................................................................ 87
Advertising agency............................................................................................ 87
International control of advertising...................................................................87
Chapter 20 Personal Selling and Negotiations......................................................88
Selling in international markets.........................................................................88
Recruitment of an international sales force.......................................................89
Cross-cultural negotiations................................................................................ 89
4
,Chapter 1 The scope and challenge
An over view
Free-trade area: where goods can move freely, without tariffs and restrictions
Trends in the worldwide economy, influencing the shape of international business:
The interdependence of the world economies
The rapid growth of regional free trade areas such as: ASEAN (Southeast
Asian countries), APEC (Asia pacific countries) EU, NAFTA.
The interdependence of the world economies
The increase in wealth and growth in most parts of the world, causing
enhanced purchasing power
The evolution of large emerging markets such as Brazil, China, India,
Malaysia, Russia, Hungary and Poland
Availability of advanced methods of communication and transportation due
to developments in information technology
These forces affected the international business and therefore the world economy
is a smaller and more interdependent place.
• Evolution of large emerging markets
• Availability of advanced methods of communication and
transportation
Gets affected by the economic changes of the world
• Economic change: Change in economic conditions, such as growth
or recession
International marketing defined
International marketing is the performance of business activities that direct
the flow of a company’s goods and services to consumers or users in more than
one nation for a profit.
The only difference in the definitions of domestic marketing and international
marketing is that the marketing activities take place in more than one
country.
International marketing task
International marketing is more complex because the international marketer
must deal with at least two levels of uncontrollable instead of one.
(uncontrollables at home and uncontrollables at the foreign market)
Marketing controllables: Price, product, promotion and channels of
distribution. Things you can control.
Domestic uncontrollables (domestic-environment): Economic climate,
competitive structure and political/legal forces
Foreign uncontrollables (foreign environment): Economic forces, competitive
forces, levels of technology, structure of distribution, geography and
infrastructure, cultural forces and political/legal forces
5
, Phases of International Marketing Involvement:
• No direct foreign marketing
• Infrequent foreign marketing
• Regular foreign marketing
• International marketing: marketing adapted to each country
• Global marketing: one strategy for the whole world
Different marketing orientations
EPRG Schema: classifies firms by their orientation ethnocentric, polycentric,
regiocentric/geocentric
Domestic market extension orientation:ethnocentric
Sees international operation as secondary and as an extension of their domestic
operations (seeks market where demands are similar to domestic market)
Multi-domestic market orientation: polycentric
Once a company recognises the importance of overseas markets they may shift
to a multidomestic market strategy. Separate marketing strategies for each
country.
Global marketing orientation: region/geocentric
Marketing activity is global and covers the whole world. These kind of companies
strives for efficiencies of scale.
6
Pervez N. Ghauri
Yoëlle Kempen
International Marketing
International Business and languages
,Table of Contents
Chapter 1 The scope and challenge.......................................................................5
An over view....................................................................................................... 5
International marketing defined..........................................................................5
International marketing task............................................................................... 5
Different marketing orientations.........................................................................6
Globalisations of markets.................................................................................... 7
Developing a global awareness...........................................................................7
Chapter 2 The dynamic international markets.......................................................7
The twentieth century......................................................................................... 7
Balance of payments........................................................................................... 8
Protectionism...................................................................................................... 8
Easing trade restrictions................................................................................... 10
Chapter 3 geography and history Geography and international markets.............10
Geography, nature and international trade.......................................................10
World trade routes............................................................................................ 11
Historical perspective in international trade.....................................................11
Chapter 4 Cultural Dynamics and International Marketing...................................12
An overview...................................................................................................... 12
Cultural knowledge........................................................................................... 13
Elements of culture........................................................................................... 13
Cultural change................................................................................................. 15
Required adaption............................................................................................. 15
Chapter 5 The international political and legal environment................................17
Political environment......................................................................................... 17
Political risks..................................................................................................... 17
Encouraging foreign investments......................................................................18
Assessing political vulnerability........................................................................19
Reducing Political Vulnerability..........................................................................19
Legal environment............................................................................................ 19
Legal recourses in resolving International Disputes..........................................20
Protection of Intellectual Property Rights..........................................................20
Commercial Law within Countries.....................................................................21
Legal Environment of The EU............................................................................ 21
1
,Chapter 6 Reaching international markets...........................................................22
Breadth and scope of international marketing research....................................22
The research process........................................................................................ 22
Responsibility for conducting marketing research.............................................24
Estimating market demand............................................................................... 25
Multinational marketing information systems...................................................25
Chapter 7 Emerging markets and market behaviour............................................26
Emerging markets............................................................................................. 26
Marketing and economic development.............................................................26
Marketing in emerging markets........................................................................26
Emerging market groups................................................................................... 27
Chapter 8 Regional Market Groups and Marketing Implications...........................28
Reasons for economic union (La raison d’être).................................................28
Patterns of multinational cooperation...............................................................29
Europe............................................................................................................... 31
The Americas.................................................................................................... 33
Asia................................................................................................................... 34
Africa................................................................................................................. 34
Middle East........................................................................................................ 34
Future regional Market groups..........................................................................35
Strategic Implications For Marketing.................................................................35
Chapter 9 International marketing strategies.......................................................36
International marketing management...............................................................36
Market-driven versus market-driving strategies................................................38
Competition in the global marketplace.............................................................38
Formulating international marketing strategy...................................................39
Strategic planning............................................................................................. 41
Chapter 10 International Market entry strategies.................................................43
Becoming international..................................................................................... 43
Market entry objectives..................................................................................... 43
Marketing opportunity assessment...................................................................44
Market/Country selection.................................................................................. 44
Marketing entry strategies................................................................................ 45
Chapter 11 International Segmentation and Positioning......................................47
2
, International market segmentation...................................................................47
Market positioning............................................................................................. 49
Positioning in international marketing...............................................................49
Chapter 12 international branding strategies.......................................................50
Introduction to branding.................................................................................... 50
Brand elements................................................................................................. 51
Characteristics of brands.................................................................................. 52
Brand management.......................................................................................... 52
Brand strategy.................................................................................................. 54
Cooperate branding.......................................................................................... 54
Chapter 13 exporting and logistics.......................................................................56
Regulations and restrictions of exporting and importing...................................56
Customs-privileged facilities............................................................................. 57
Export documents............................................................................................. 58
Terms of sale..................................................................................................... 59
Logistics............................................................................................................ 60
Chapter 14 ethics and social responsibility in international marketing................61
Ethical environment.......................................................................................... 61
Social responsibility........................................................................................... 61
Ethics and international marketing...................................................................62
Ethical behaviour in international marketing.....................................................63
Chapter 15 product decisions for international markets.......................................64
International markets and product decisions....................................................64
Products and brands......................................................................................... 64
Products and culture......................................................................................... 65
Screening products for adaption.......................................................................66
Quality products................................................................................................ 67
Chapter 16 marketing industrial products and business services........................67
The industrial product market...........................................................................67
Attributes and product quality...........................................................................68
Relation marketing............................................................................................ 69
Promoting industrial product............................................................................. 70
Marketing services globally............................................................................... 70
Chapter 17 International Distribution and Retailing.............................................72
Channel of distribution structures.....................................................................72
3
, The internet....................................................................................................... 73
Distribution patterns......................................................................................... 74
Alternative middleman choices.........................................................................75
Factors affecting choice of channel...................................................................77
Locating, Selecting and Motivating Channel Members......................................78
Chapter 18 pricing for international markets........................................................79
Pricing policy..................................................................................................... 79
Factors influencing international pricing...........................................................80
Administered pricing......................................................................................... 82
Transfer pricing................................................................................................. 82
Dumping........................................................................................................... 83
Countertrade as a pricing tool...........................................................................83
Chapter 19 international promotion and advertising............................................84
Promotional mix................................................................................................ 84
International advertising................................................................................... 84
Challenges of international advertising.............................................................85
Media planning and analysis............................................................................. 86
Sales promotion................................................................................................ 87
Advertising agency............................................................................................ 87
International control of advertising...................................................................87
Chapter 20 Personal Selling and Negotiations......................................................88
Selling in international markets.........................................................................88
Recruitment of an international sales force.......................................................89
Cross-cultural negotiations................................................................................ 89
4
,Chapter 1 The scope and challenge
An over view
Free-trade area: where goods can move freely, without tariffs and restrictions
Trends in the worldwide economy, influencing the shape of international business:
The interdependence of the world economies
The rapid growth of regional free trade areas such as: ASEAN (Southeast
Asian countries), APEC (Asia pacific countries) EU, NAFTA.
The interdependence of the world economies
The increase in wealth and growth in most parts of the world, causing
enhanced purchasing power
The evolution of large emerging markets such as Brazil, China, India,
Malaysia, Russia, Hungary and Poland
Availability of advanced methods of communication and transportation due
to developments in information technology
These forces affected the international business and therefore the world economy
is a smaller and more interdependent place.
• Evolution of large emerging markets
• Availability of advanced methods of communication and
transportation
Gets affected by the economic changes of the world
• Economic change: Change in economic conditions, such as growth
or recession
International marketing defined
International marketing is the performance of business activities that direct
the flow of a company’s goods and services to consumers or users in more than
one nation for a profit.
The only difference in the definitions of domestic marketing and international
marketing is that the marketing activities take place in more than one
country.
International marketing task
International marketing is more complex because the international marketer
must deal with at least two levels of uncontrollable instead of one.
(uncontrollables at home and uncontrollables at the foreign market)
Marketing controllables: Price, product, promotion and channels of
distribution. Things you can control.
Domestic uncontrollables (domestic-environment): Economic climate,
competitive structure and political/legal forces
Foreign uncontrollables (foreign environment): Economic forces, competitive
forces, levels of technology, structure of distribution, geography and
infrastructure, cultural forces and political/legal forces
5
, Phases of International Marketing Involvement:
• No direct foreign marketing
• Infrequent foreign marketing
• Regular foreign marketing
• International marketing: marketing adapted to each country
• Global marketing: one strategy for the whole world
Different marketing orientations
EPRG Schema: classifies firms by their orientation ethnocentric, polycentric,
regiocentric/geocentric
Domestic market extension orientation:ethnocentric
Sees international operation as secondary and as an extension of their domestic
operations (seeks market where demands are similar to domestic market)
Multi-domestic market orientation: polycentric
Once a company recognises the importance of overseas markets they may shift
to a multidomestic market strategy. Separate marketing strategies for each
country.
Global marketing orientation: region/geocentric
Marketing activity is global and covers the whole world. These kind of companies
strives for efficiencies of scale.
6
