Copyright Text International MARKETING

7E

Copyright Text

International

MARKETING

An Asia-Pacific Perspective

Richard FLETCHER Heather CRAWFORD

CONTENTS IN FULL

Preface 

List of Cases by Chapter Author and

International Marketing Highlights

Additional Cases on the Website

Educator Resources

Acknowledgments 

About the Authors 

1

The rationale for

international marketing

xv

xix

xxii

xxv

xxvi

xxvii

2

Opening vignette: Made in . . .

3

Introduction4

The new international marketing

environment5

What is international marketing?

6

1.1 INTERNATIONAL HIGHLIGHT: Smart new markets

7

1.2 INTERNATIONAL HIGHLIGHT: Is the sun setting on

America¡¯s century of world dominance?

12

Approaches to international marketing

12

From domestic to transnational

12

From indirect exporting to foreign

direct investment13

From an export focus to a holistic focus

13

Concepts underlying international

marketing14

Comparative advantage

Product life cycle extension

14

15

1.3 INTERNATIONAL HIGHLIGHT: China and the

waterfall pattern17

The wheel of international marketing

18

The hub

The spokes

The rim

The importance of world trade

The dilemma of definition

18

19

19

19

20

The trading environment 

20

Major export activity

Major import activity

Trade in services

Australian¨CAsian trade

21

22

22

22

1.4 INTERNATIONAL HIGHLIGHT: Driving our

exports23

The impact of the internet on

international marketing 

23

Case Study 1

25

Summary29

Websites29

Discussion questions

29

IMEdge29

References30

PART A THE ENVIRONMENT

OF INTERNATIONAL

MARKETING31

2

Avoiding the pitfalls of the

international political and

legal environment

32

Opening vignette: The politics of

international trade

Introduction 

33

35

The political environment

35

The role of government in international

marketing35

Different types of national governments

35

2.1 INTERNATIONAL HIGHLIGHT: Governments protect

the interests of their consumers

36

The role of government in the economy

2.2 INTERNATIONAL HIGHLIGHT: A conflict

of interest

37

41

Political approaches in international

marketing42

Political stability and risk

Sources of political instability

42

43

2.3 INTERNATIONAL HIGHLIGHT: Venezuela nationalises

its major asset

44

Nature of political risk

44

Assessment45

The trade-off

47

Managing the foreign political

environment47

Company behaviour

47

Home country environment

47

Home government actions

47

Contribution to the host country

48

Localisation of operations

48

Globalisation49

Political risk insurance

49

Marketing implications¡ªpolitical

50

The legal environment

50

Introduction50

2.4 INTERNATIONAL HIGHLIGHT: China¡¯s legal and

arbitration systems

51

Differing legal systems and jurisdictions

51

Legal systems

51

2.5 INTERNATIONAL HIGHLIGHT: When is a contract legal? 53

International law

54

Legal jurisdiction

55

Legal risk

56

Law and the marketing mix internationally

56

Product56

Price57

Distribution57

Promotion58

Foreign exchange issues

Financial management

3.4 INTERNATIONAL HIGHLIGHT: OSS¡ªmanaging

exchange rate risks99

The international financial system

103

Marketing implications

106

Case Study 3

107

Summary110

Websites110

Discussion questions

110

IMEdge111

References111

The impact of law on international

operations58

Environment59

Human resources

59

Intellectual property protection

59

2.6 INTERNATIONAL HIGHLIGHT: National boundaries

no protection when illegally downloading foreign

TV shows and films

61

Anti-trust64

Reducing the impact

64

2.7 INTERNATIONAL HIGHLIGHT: Drug giants told to

reveal secrets65

Contracts and dispute resolution

66

Conciliation66

Arbitration66

Litigation67

Marketing implications¡ªlegal

67

Case Study 2

69

Summary74

Websites74

Discussion questions

74

IMEdge 

75

References75

3

Appreciating the dynamics

of the international economic

and financial environment 78

Opening vignette: Growing opportunities

79

Introduction80

The economic environment

The global economic scene

3.1 INTERNATIONAL HIGHLIGHT: Nourishing rice farms

International trade

3.2 INTERNATIONAL HIGHLIGHT: Newly industrialised

countries¡ªthe secret of success

Measuring markets

80

81

82

84

84

91

95

98

4

Catering for the social and

cultural environment of

international marketing

112

Opening vignette: Food for thought

113

Introduction115

Definition of culture

115

Culture as a collective fingerprint

Elements of culture

4.1 INTERNATIONAL HIGHLIGHT: Culture transcends

national boundaries119

Expressions of culture

120

The impact of culture on

international marketing121

Knowledge121

Sensitivity122

Collectivism122

Social conventions

122

4.2 INTERNATIONAL HIGHLIGHT: The Chinese way

Cognitive styles

Cultural universals

Levels at which culture operates

93

95

The financial environment

95

Convertible and non-convertible

currencies95

122

123

123

123

Cultural concepts and cultural

differences125

Key cultural concepts

Key cultural differences

125

128

4.3 INTERNATIONAL HIGHLIGHT: Providers of

financial services ignore cultural differences at

their peril

Culture and communication

134

135

Verbal communication

Non-verbal communication

Cultural adaptation and communication

Cross-cultural comparison studies 

3.3 INTERNATIONAL HIGHLIGHT: Numbers tell only

part of the story

Marketing implications

116

116

Hofstede 

Trompenaars 

Etic versus emic approach

135

136

137

137

137

140

141

4.4 INTERNATIONAL HIGHLIGHT: Creating favourable

conditions¡ªfeng shui

143

CONTENTS IN FULL

vii

Culture and international negotiation

144

Negotiation styles

145

Background to negotiation

146

Culture and the conduct of negotiations 147

Preparing for international negotiation 148

Stages in international negotiation

150

The atmosphere of international

negotiations152

4.5 INTERNATIONAL HIGHLIGHT: Negotiation via

the internet152

Case Study 4

154

Summary158

Websites158

Discussion questions

158

IMEdge159

References159

5

Technology and change in

international marketing

162

Opening vignette: The last mile

163

Introduction164

The technology environment

164

Infrastructure development and

economic history¡ª¡®techno-economic

paradigms¡¯165

Information and communication: the

fifth techno-economic paradigm

167

5.1 INTERNATIONAL HIGHLIGHT: Personal technology

Information neural networks: the sixth

techno-economic paradigm

169

The information revolution and

the internet

169

The global network

The new information infrastructure

168

169

171

New business models

171

Implications for international marketing 172

Influences on internet use worldwide

173

E-government173

International diffusion of innovation

174

5.2 INTERNATIONAL HIGHLIGHT: Diffusion of health

innovations175

Consumer behaviour online

178

Barriers to internet consumption

179

Implications of online behaviour for

international marketing 

180

Digital marketing strategies

Business to consumer (B2C)

marketing online

181

181

5.3 INTERNATIONAL HIGHLIGHT: Mass customisation

182

5.4 INTERNATIONAL HIGHLIGHT: The Long Tail 

187

5.5 INTERNATIONAL HIGHLIGHT: The Achilles heel of

internet marketing189

viii

CONTENTS IN FULL

Business to business (B2B)

marketing online190

5.6 INTERNATIONAL HIGHLIGHT: Virtual products

190

5.7 INTERNATIONAL HIGHLIGHT: BCS Group

191

Consumer to consumer (C2C)

marketing online193

Market research online

194

Integrating online and offline strategies 195

The future and technology change

5.8 INTERNATIONAL HIGHLIGHT: Lights out

195

196

Case Study 5

196

Summary204

Websites204

Discussion questions

205

IMEdge205

References206

6

Contemporary environmental

variables in international

marketing

208

Opening vignette: Australian firms in

the firing line

209

Introduction210

Ethics210

6.1 INTERNATIONAL HIGHLIGHT: Ethical

inconsistency213

Varying views of ethics

213

Ethics and the internet

215

Environmentalism215

6.2 INTERNATIONAL HIGHLIGHT: Ethical issues in

the distribution channel

Environmentalism as a threat

Environmentalism as an opportunity

215

218

218

Geography and climate

219

6.3 INTERNATIONAL HIGHLIGHT: Companies tiptoe

through Indonesia¡¯s political minefields

220

Terrorism221

Health-related issues

223

Consumerism225

Infrastructure endowment

225

Labour225

Population trends

6.4 INTERNATIONAL HIGHLIGHT: The risk factor

226

226

Case Study 6

228

Summary231

Websites231

Discussion questions

231

IMEdge231

References232

PART B STRATEGIES

FOR INTERNATIONAL

MARKETING233

7

Researching international

markets

234

Opening vignette: International marketing

research¡ªa survival story

235

Introduction236

Information needs for international

marketing236

International research decisions

237

7.1 INTERNATIONAL HIGHLIGHT: Common

international research mistakes239

Costs of international marketing

research240

Stages in planning international

marketing research 

241

The international research process

Stage 1: Problem identification

Stage 2: Research design

Stage 3: Collection of data

7.2 INTERNATIONAL HIGHLIGHT: Research issues

in the world¡¯s fastest growing markets

Stage 4: Analysis and interpretation

of data

Stage 5: Dissemination of

information/research report

Other issues in international

market research

242

243

243

247

248

253

255

7.3 INTERNATIONAL HIGHLIGHT: Gathering data in

Zimbabwe257

Managing international research

258

Test marketing

260

Case Study 7

261

Summary266

Websites266

Discussion questions

266

IMEdge267

References267

International market

selection and entry

Market selection for experienced

exporters277

Market selection for foreign direct

investment (FDI)

268

Opening vignette: The evolution of

international involvement269

Introduction270

International market selection

270

Screening for market selection

272

281

The nation state and market

selection281

Market selection trends

282

Modes of entering foreign markets

282

8.1 INTERNATIONAL HIGHLIGHT: Solution selling

works in India

283

8.2 INTERNATIONAL HIGHLIGHT: Successful exporters

think outside the square

283

Export-based entry

284

Manufacturing-based entry

286

8.3 INTERNATIONAL HIGHLIGHT: Franchising as a

way to go international287

Relationship-based entry

289

8.4 INTERNATIONAL HIGHLIGHT: Offsets boost

Australia¡¯s manufacturing capability

The ¡®born global¡¯ entry mode

Other entry modes

Evaluation of entry modes

294

295

295

295

Theories of market entry

296

Dunning¡¯s eclectic paradigm

Williamson¡¯s transaction cost approach

Internalisation theory

255

Research in developing countries

255

New international research techniques 256

8

Analysing the attractiveness of

individual markets272

A screening approach

273

296

297

298

Information for market entry and

expansion298

Factors internal to the firm

Factors external to the firm

298

299

Evolution of involvement from initial

entry mode301

Case Study 8

302

Summary306

Websites306

Discussion questions

306

IMEdge307

References307

9

International competitive

strategy

310

Opening vignette: International strategies

and the Australian beverage industry

311

Introduction313

Competitive advantage

313

National competitive advantage

National competitive advantage goes

international 

Competitiveness and e-business

313

316

318

CONTENTS IN FULL

ix

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