Ralph Berndt • Claudia Fantapié Altobelli •
Matthias Sander
International Marketing
Management
,Contents
Part I International Management and Marketing
Internationalisation and International Marketing Management . . . . . . . . . . . 3
1 Development of International Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2 The Nature of International Marketing Management . . . . . . . . . . . . . . . . . . . . 8
3 Motives for Internationalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4 Sub-Areas of International Marketing Management . . . . . . . . . . . . . . . . . . . . 11
5 Basic Orientations of International Marketing Management . . . . . . . . . . . . . . 13
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
The Steps of International Marketing Planning . . . . . . . . . . . . . . . . . . . . . . . . 17
1 Situation Analysis and Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2 Strategic International Marketing Planning . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3 International Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4 Implementing International Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5 Control of International Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Part II International Marketing Information
The International Marketing Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2 Global Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.1 Economic Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.2 Political-Legal Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3 Socio-cultural Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
2.4 Geographical Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3 Industry and Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.1 Industry Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.2 Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.3 Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
vii
,viii Contents
3.4
Customers ......................................................................................................... 49
3.4.1 End Users .............................................................................................. 49
3.4.2 Distributors ............................................................................................ 51
4 Company-Specific Factors ......................................................................................... 53
4.1 Corporate Objectives and Corporate Culture .................................................... 53
4.2 Financial Strength ............................................................................................. 54
4.3 Product Features ................................................................................................ 54
4.4 Human Resources.............................................................................................. 55
4.5 Production Capacity .......................................................................................... 55
References ........................................................................................................................ 56
International Market Research ................................................................................. 59
1 Challenges to International Market Research ............................................................. 59
1.1 Nature of International Market Research........................................................... 59
1.2 Requirements to International Market Research ................................................ 61
1.3 Equivalence in International Market Research .................................................. 63
1.3.1 Developing Equivalent Research Designs ............................................. 63
1.3.2 Equivalence of Research Subjects ......................................................... 65
1.3.3 Equivalence of Research Methods ........................................................ 66
1.3.4 Equivalence of the Units of Investigation ............................................. 68
1.3.5 Equivalence of the Research Situations ................................................. 69
1.3.6 Equivalence of Data Preparation ........................................................... 70
1.3.7 Equivalence of Data Analysis ............................................................... 70
2 International Secondary Research .............................................................................. 71
2.1 The Process of International Secondary Research ............................................. 71
2.2 Sources of International Secondary Research.................................................... 74
2.3 Applications and Limitations of International Secondary Research .................. 79
3 International Primary Research .................................................................................. 84
3.1 The Process of International Primary Research ................................................. 84
3.2 Definition of the Study Population .................................................................... 87
3.3 Choosing the International Research Methods .................................................. 87
3.3.1 Survey ................................................................................................... 87
3.3.2 Observation ........................................................................................... 93
3.3.3 Experiment ............................................................................................ 94
3.4 Measurement, Operationalisation and Scaling .................................................. 97
3.5 Sampling ........................................................................................................... 98
3.6 Data Collection................................................................................................ 100
3.7 Data Preparation .............................................................................................. 101
3.8 Data Analysis and Interpretation ..................................................................... 101
3.8.1 Overview ............................................................................................. 101
3.8.2 Data Reduction Methods ..................................................................... 102
3.8.3 Classification Methods ........................................................................ 103
,Contents ix
3.8.4 Methods for Measuring Relationships ................................................. 104
3.8.5 Methods for Measuring Preferences .................................................... 105
4 Organisation of International Market Research ........................................................ 106
4.1 Overview ......................................................................................................... 106
4.2 Centralised International Market Research ...................................................... 107
4.3 Decentralised International Market Research .................................................. 108
4.4 Coordinated International Market Research .................................................... 108
References ...................................................................................................................... 110
Part III International Marketing Strategy
Strategic International Objectives ........................................................................... 115
1 The International Target System .............................................................................. 115
2 General Internationalisation Objectives.................................................................... 117
3 Market Objectives .................................................................................................... 118
4 Marketing Objectives ............................................................................................... 120
References ...................................................................................................................... 121
International Market Selection ............................................................................... 123
1 Preliminary Screening .............................................................................................. 123
2 Country Selection ..................................................................................................... 124
2.1 Country Selection Criteria ............................................................................... 124
2.1.1 Overview ............................................................................................. 124
2.1.2 Country Attractiveness ........................................................................ 126
2.1.3 Market Barriers ................................................................................... 127
2.1.4 Country Risks...................................................................................... 128
2.2 Country Selection Methods ............................................................................. 134
2.2.1 Checklists ............................................................................................ 134
2.2.2 Scoring Models ................................................................................... 135
2.2.3 Portfolio Analysis ................................................................................ 137
3 Market Selection ...................................................................................................... 139
3.1 International Market Segmentation ................................................................. 139
3.1.1 Intramarket Segmentation.................................................................... 140
3.1.2 Intermarket Segmentation .................................................................... 143
3.2 Methods for International Market Selection .................................................... 147
3.2.1 Portfolio Analysis ................................................................................ 147
3.2.2 Profitability Analysis ........................................................................... 150
4 Empirical Findings ................................................................................................... 156
References ...................................................................................................................... 161
International Market Entry Strategies ................................................................... 165
1 International Market Entry Modes ........................................................................... 165
1.1 Overview ......................................................................................................... 165
1.2 Export.............................................................................................................. 166
,x Contents
1.3 Licensing ......................................................................................................... 169
1.4 Foreign Direct Investment (FDI) ..................................................................... 172
1.5 Cooperations and Networks ............................................................................ 174
1.6 Countertrade .................................................................................................... 176
2 Timing of Foreign Market Entry .............................................................................. 179
2.1 Transnational Timing Strategies ...................................................................... 179
2.2 Country-Specific Timing Strategies ................................................................ 183
3 The Choice of Market Entry Strategy ...................................................................... 183
3.1 Theoretical Background of International Market Entry ................................... 183
3.2 The Pre-Selection of Market Entry Strategy.................................................... 186
3.3 The Fine Selection of Market Entry Strategy .................................................. 187
4 Empirical Findings ................................................................................................... 192
References ...................................................................................................................... 197
International Market Development Strategies ........................................................ 201
1 Fundamental Strategic Orientation ........................................................................... 201
2 International Basic Marketing Strategies .................................................................. 203
2.1 Overview ......................................................................................................... 203
2.2 Standardisation Versus Adaptation of Marketing Programs ............................ 204
2.3 Standardisation Versus Adaptation of Marketing Processes............................ 208
3 International Business Area Strategies ..................................................................... 211
3.1 Overview ......................................................................................................... 211
3.2 Strategy Variation ........................................................................................... 212
3.3 Strategy Style .................................................................................................. 215
3.4 Strategy Substance .......................................................................................... 218
3.5 Strategy Field .................................................................................................. 225
4 The Choice of Market Development Strategy .......................................................... 228
5 Translating Strategic Plans into Tactical and Operational Actions ........................... 230
6 Empirical Findings ................................................................................................... 232
References ...................................................................................................................... 239
Part IV International Marketing Mix
International Product Management ........................................................................ 245
1 Objectives of International Product Management .................................................... 245
2 Factors Influencing International Product Management ........................................... 246
2.1 Market Environment ....................................................................................... 247
2.2 Product-Related Factors .................................................................................. 248
2.3 Company-Related Factors ............................................................................... 249
3 Action Fields of International Product Management ................................................ 249
3.1 Overview ......................................................................................................... 249
3.2 International Product Development ................................................................. 251
3.2.1 Unmodified Transfer of the Existing Product ...................................... 251
, Contents xi
3.2.2 Country-Specific Product Adaptation .................................................. 252
3.2.3 Development of a New Product for Foreign Markets .......................... 255
3.3 Planning the International Product Mix ........................................................... 269
3.4 International Branding ..................................................................................... 271
3.5 Product-Related Services ................................................................................. 277
3.6 R&D Management for Global Product Development...................................... 281
4 Empirical Findings ................................................................................................... 284
References ...................................................................................................................... 291
International Price Management ............................................................................ 299
1 Objectives of International Price Management ........................................................ 299
2 Factors Influencing International Price Management ............................................... 301
3 Action Fields of International Price Management .................................................... 307
3.1 Overview ......................................................................................................... 307
3.2 International Pricing ........................................................................................ 309
3.2.1 Basic Strategies of International Pricing.............................................. 309
3.2.2 Approaches to Pricing in International Markets .................................. 314
3.3 International Terms and Conditions ................................................................ 333
3.3.1 International Delivery Terms............................................................... 333
3.3.2 International Payment Terms............................................................... 335
3.3.3 International Credit Terms .................................................................. 338
3.3.4 International Discount Terms .............................................................. 341
3.3.5 General Terms and Conditions in International Business .................... 342
4 Integration of Pricing into the International Price Management Process .................. 344
5 Empirical Findings ................................................................................................... 346
References ...................................................................................................................... 351
International Communication Management ........................................................... 355
1 Objectives of International Communication Management ....................................... 355
2 Factors Influencing International Communication Management .............................. 358
3 Action Fields of International Communication Management ................................... 363
3.1 Overview ......................................................................................................... 363
3.2 International Corporate Identity ...................................................................... 363
3.3 International Advertising ................................................................................. 365
3.4 International Sponsoring and International Product Placement ....................... 377
3.5 International Sales Promotions ........................................................................ 385
3.6 International Direct Communications .............................................................. 387
3.7 Other Communication Tools ........................................................................... 391
4 Implementation of International Marketing Communication.................................... 400
4.1 Determining the Communication Content ....................................................... 401
4.2 Determining the Communication Processes .................................................... 403
4.3 Organisation of International Marketing Communication ............................... 404
xii Contents
Matthias Sander
International Marketing
Management
,Contents
Part I International Management and Marketing
Internationalisation and International Marketing Management . . . . . . . . . . . 3
1 Development of International Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2 The Nature of International Marketing Management . . . . . . . . . . . . . . . . . . . . 8
3 Motives for Internationalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4 Sub-Areas of International Marketing Management . . . . . . . . . . . . . . . . . . . . 11
5 Basic Orientations of International Marketing Management . . . . . . . . . . . . . . 13
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
The Steps of International Marketing Planning . . . . . . . . . . . . . . . . . . . . . . . . 17
1 Situation Analysis and Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2 Strategic International Marketing Planning . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3 International Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4 Implementing International Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5 Control of International Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Part II International Marketing Information
The International Marketing Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2 Global Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.1 Economic Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.2 Political-Legal Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3 Socio-cultural Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
2.4 Geographical Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3 Industry and Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.1 Industry Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.2 Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.3 Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
vii
,viii Contents
3.4
Customers ......................................................................................................... 49
3.4.1 End Users .............................................................................................. 49
3.4.2 Distributors ............................................................................................ 51
4 Company-Specific Factors ......................................................................................... 53
4.1 Corporate Objectives and Corporate Culture .................................................... 53
4.2 Financial Strength ............................................................................................. 54
4.3 Product Features ................................................................................................ 54
4.4 Human Resources.............................................................................................. 55
4.5 Production Capacity .......................................................................................... 55
References ........................................................................................................................ 56
International Market Research ................................................................................. 59
1 Challenges to International Market Research ............................................................. 59
1.1 Nature of International Market Research........................................................... 59
1.2 Requirements to International Market Research ................................................ 61
1.3 Equivalence in International Market Research .................................................. 63
1.3.1 Developing Equivalent Research Designs ............................................. 63
1.3.2 Equivalence of Research Subjects ......................................................... 65
1.3.3 Equivalence of Research Methods ........................................................ 66
1.3.4 Equivalence of the Units of Investigation ............................................. 68
1.3.5 Equivalence of the Research Situations ................................................. 69
1.3.6 Equivalence of Data Preparation ........................................................... 70
1.3.7 Equivalence of Data Analysis ............................................................... 70
2 International Secondary Research .............................................................................. 71
2.1 The Process of International Secondary Research ............................................. 71
2.2 Sources of International Secondary Research.................................................... 74
2.3 Applications and Limitations of International Secondary Research .................. 79
3 International Primary Research .................................................................................. 84
3.1 The Process of International Primary Research ................................................. 84
3.2 Definition of the Study Population .................................................................... 87
3.3 Choosing the International Research Methods .................................................. 87
3.3.1 Survey ................................................................................................... 87
3.3.2 Observation ........................................................................................... 93
3.3.3 Experiment ............................................................................................ 94
3.4 Measurement, Operationalisation and Scaling .................................................. 97
3.5 Sampling ........................................................................................................... 98
3.6 Data Collection................................................................................................ 100
3.7 Data Preparation .............................................................................................. 101
3.8 Data Analysis and Interpretation ..................................................................... 101
3.8.1 Overview ............................................................................................. 101
3.8.2 Data Reduction Methods ..................................................................... 102
3.8.3 Classification Methods ........................................................................ 103
,Contents ix
3.8.4 Methods for Measuring Relationships ................................................. 104
3.8.5 Methods for Measuring Preferences .................................................... 105
4 Organisation of International Market Research ........................................................ 106
4.1 Overview ......................................................................................................... 106
4.2 Centralised International Market Research ...................................................... 107
4.3 Decentralised International Market Research .................................................. 108
4.4 Coordinated International Market Research .................................................... 108
References ...................................................................................................................... 110
Part III International Marketing Strategy
Strategic International Objectives ........................................................................... 115
1 The International Target System .............................................................................. 115
2 General Internationalisation Objectives.................................................................... 117
3 Market Objectives .................................................................................................... 118
4 Marketing Objectives ............................................................................................... 120
References ...................................................................................................................... 121
International Market Selection ............................................................................... 123
1 Preliminary Screening .............................................................................................. 123
2 Country Selection ..................................................................................................... 124
2.1 Country Selection Criteria ............................................................................... 124
2.1.1 Overview ............................................................................................. 124
2.1.2 Country Attractiveness ........................................................................ 126
2.1.3 Market Barriers ................................................................................... 127
2.1.4 Country Risks...................................................................................... 128
2.2 Country Selection Methods ............................................................................. 134
2.2.1 Checklists ............................................................................................ 134
2.2.2 Scoring Models ................................................................................... 135
2.2.3 Portfolio Analysis ................................................................................ 137
3 Market Selection ...................................................................................................... 139
3.1 International Market Segmentation ................................................................. 139
3.1.1 Intramarket Segmentation.................................................................... 140
3.1.2 Intermarket Segmentation .................................................................... 143
3.2 Methods for International Market Selection .................................................... 147
3.2.1 Portfolio Analysis ................................................................................ 147
3.2.2 Profitability Analysis ........................................................................... 150
4 Empirical Findings ................................................................................................... 156
References ...................................................................................................................... 161
International Market Entry Strategies ................................................................... 165
1 International Market Entry Modes ........................................................................... 165
1.1 Overview ......................................................................................................... 165
1.2 Export.............................................................................................................. 166
,x Contents
1.3 Licensing ......................................................................................................... 169
1.4 Foreign Direct Investment (FDI) ..................................................................... 172
1.5 Cooperations and Networks ............................................................................ 174
1.6 Countertrade .................................................................................................... 176
2 Timing of Foreign Market Entry .............................................................................. 179
2.1 Transnational Timing Strategies ...................................................................... 179
2.2 Country-Specific Timing Strategies ................................................................ 183
3 The Choice of Market Entry Strategy ...................................................................... 183
3.1 Theoretical Background of International Market Entry ................................... 183
3.2 The Pre-Selection of Market Entry Strategy.................................................... 186
3.3 The Fine Selection of Market Entry Strategy .................................................. 187
4 Empirical Findings ................................................................................................... 192
References ...................................................................................................................... 197
International Market Development Strategies ........................................................ 201
1 Fundamental Strategic Orientation ........................................................................... 201
2 International Basic Marketing Strategies .................................................................. 203
2.1 Overview ......................................................................................................... 203
2.2 Standardisation Versus Adaptation of Marketing Programs ............................ 204
2.3 Standardisation Versus Adaptation of Marketing Processes............................ 208
3 International Business Area Strategies ..................................................................... 211
3.1 Overview ......................................................................................................... 211
3.2 Strategy Variation ........................................................................................... 212
3.3 Strategy Style .................................................................................................. 215
3.4 Strategy Substance .......................................................................................... 218
3.5 Strategy Field .................................................................................................. 225
4 The Choice of Market Development Strategy .......................................................... 228
5 Translating Strategic Plans into Tactical and Operational Actions ........................... 230
6 Empirical Findings ................................................................................................... 232
References ...................................................................................................................... 239
Part IV International Marketing Mix
International Product Management ........................................................................ 245
1 Objectives of International Product Management .................................................... 245
2 Factors Influencing International Product Management ........................................... 246
2.1 Market Environment ....................................................................................... 247
2.2 Product-Related Factors .................................................................................. 248
2.3 Company-Related Factors ............................................................................... 249
3 Action Fields of International Product Management ................................................ 249
3.1 Overview ......................................................................................................... 249
3.2 International Product Development ................................................................. 251
3.2.1 Unmodified Transfer of the Existing Product ...................................... 251
, Contents xi
3.2.2 Country-Specific Product Adaptation .................................................. 252
3.2.3 Development of a New Product for Foreign Markets .......................... 255
3.3 Planning the International Product Mix ........................................................... 269
3.4 International Branding ..................................................................................... 271
3.5 Product-Related Services ................................................................................. 277
3.6 R&D Management for Global Product Development...................................... 281
4 Empirical Findings ................................................................................................... 284
References ...................................................................................................................... 291
International Price Management ............................................................................ 299
1 Objectives of International Price Management ........................................................ 299
2 Factors Influencing International Price Management ............................................... 301
3 Action Fields of International Price Management .................................................... 307
3.1 Overview ......................................................................................................... 307
3.2 International Pricing ........................................................................................ 309
3.2.1 Basic Strategies of International Pricing.............................................. 309
3.2.2 Approaches to Pricing in International Markets .................................. 314
3.3 International Terms and Conditions ................................................................ 333
3.3.1 International Delivery Terms............................................................... 333
3.3.2 International Payment Terms............................................................... 335
3.3.3 International Credit Terms .................................................................. 338
3.3.4 International Discount Terms .............................................................. 341
3.3.5 General Terms and Conditions in International Business .................... 342
4 Integration of Pricing into the International Price Management Process .................. 344
5 Empirical Findings ................................................................................................... 346
References ...................................................................................................................... 351
International Communication Management ........................................................... 355
1 Objectives of International Communication Management ....................................... 355
2 Factors Influencing International Communication Management .............................. 358
3 Action Fields of International Communication Management ................................... 363
3.1 Overview ......................................................................................................... 363
3.2 International Corporate Identity ...................................................................... 363
3.3 International Advertising ................................................................................. 365
3.4 International Sponsoring and International Product Placement ....................... 377
3.5 International Sales Promotions ........................................................................ 385
3.6 International Direct Communications .............................................................. 387
3.7 Other Communication Tools ........................................................................... 391
4 Implementation of International Marketing Communication.................................... 400
4.1 Determining the Communication Content ....................................................... 401
4.2 Determining the Communication Processes .................................................... 403
4.3 Organisation of International Marketing Communication ............................... 404
xii Contents
