International Marketing, 18th Edition PDF by Philip R. Cateora, R. Bruce Money, Mary C. Gilly, John L. Graham

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International Marketing, 18th Edition

By Philip R. Cateora, R. Bruce Money, Mary C. Gilly, John L. Graham

International marketing

CONTENTS

PART ONE

AN OVERVIEW

1 The Scope and Challenge of

International Marketing 2

The Internationalization of U.S.

Business 7

International Marketing

Defined 10

The International Marketing Task 11

Marketing Decision Factors 11

Aspects of the Domestic

Environment 12

Aspects of the Foreign

Environment 13

Environmental Adaptation

Needed 15

The Self-Reference Criterion and Ethnocentrism: Major Obstacles 16

Developing a Global Awareness 19

Stages of International Marketing

Involvement 20

No Direct Foreign Marketing 21

Infrequent Foreign

Marketing 21

Regular Foreign Marketing 21

International Marketing 22

Global Marketing 22

The Orientation of International Marketing 24

2 The Dynamic Environment of

International Trade 28

The Twentieth to the Twenty-First

Century 31

World Trade and U.S.

Multinationals 32

Beyond the First Decade of the

Twenty-First Century 34

Balance of Payments 35

Protectionism 37

Protection Logic and Illogic 37

Trade Barriers 39

Easing Trade Restrictions 44

The Omnibus Trade

and Competitiveness Act 45

General Agreement on Tariffs and Trade 46

World Trade Organization 47

Skirting the Spirit of GATT and WTO 49

The International Monetary Fund

and World Bank Group 49

Protests against Global

Institutions 50

PART TWO

THE CULTURAL

ENVIRONMENT OF

GLOBAL MARKETS

3 History and Geography: The

Foundations of Culture 54

Historical Perspective in Global

Business 56

History and Contemporary

Behavior 56

History Is Subjective 58

Manifest Destiny and the Monroe

Doctrine 60

Geography and Global Markets 64

Climate and Topography 64

Geography, Nature, and

Economic Growth 67

Social Responsibility

and Environmental

Management 69

Resources 73

Dynamics of Global Population

Trends 76

Controlling Population

Growth 76

Rural/Urban Migration 77

Population Decline and

Aging 78

Worker Shortage and

Immigration 79

World Trade Routes 80

Communication Links 82

4 Cultural Dynamics

in Assessing Global

Markets 94

Culture’s Pervasive Impact 96

Definitions and Origins

of Culture 102

Geography 103

History 104

The Political Economy 105

Technology 105

Social Institutions 105

Elements of Culture 110

Cultural Values 110

Rituals 113

Symbols 115

Beliefs 119

Thought Processes 121

Cultural Sensitivity and

Tolerance 121

Cultural Change 122

Cultural Borrowing 122

Similarities: An Illusion 123

Resistance to Change 124

Planned and Unplanned Cultural

Change 125

5 Culture, Management Style,

and Business Systems 128

Required Adaptation 130

Degree of Adaptation 131

Imperatives, Electives, and

Exclusives 131

The Impact of American Culture on

Management Style 133

Management Styles around the

World 136

Authority and Decision

Making 136

Management Objectives and

Aspirations 138

Communication Styles 140

Formality and Tempo 143

P-Time versus M-Time 144

Negotiations Emphasis 145

Marketing Orientation 146

Gender Bias in International

Business 146

Business Ethics 151

Corruption Defined 151

The Western Focus

on Bribery 153

Bribery: Variations on a

Theme 156

Ethical and Socially Responsible

Decisions 157

Culture’s Influence on Strategic

Thinking 160

Synthesis: Relationship-Oriented

Information-Oriented

Cultures 162

6 The Political Environment:

A Critical Concern 168

The Sovereignty of Nations 170

Stability of Government

Policies 172

Forms of Government 173

Political Parties 174

Nationalism 175

Targeted Fear and/or

Animosity 176

Trade Disputes 177

Political Risks of Global

Business 177

Confiscation, Expropriation, and

Domestication 177

Economic Risks 178

Political Sanctions 179

Political and Social Activists

and Nongovernmental

Organizations 180

Violence, Terrorism, and

War 184

Cyberterrorism and

Cybercrime 187

Assessing Political

Vulnerability 188

Politically Sensitive Products and

Issues 188

Forecasting Political Risk 189

Lessening Political

Vulnerability 190

Joint Ventures 191

Expanding the Investment

Base 191

Licensing/Franchising 191

Planned Domestication 191

Political Bargaining 192

Political Payoffs 192

Government Encouragement 193

7 The International Legal

Environment: Playing

by the Rules 196

Bases for Legal Systems 198

Common vs. Code Law 199

Islamic Law 200

Marxist–Socialist Tenets 201

Jurisdiction in International Legal

Disputes 202

International Dispute

Resolution 202

Conciliation 203

Arbitration 203

Litigation 205

Protection of Intellectual

Property Rights: A Special

Problem 206

Counterfeiting and Piracy 206

Inadequate Protection 208

Prior Use versus

Registration 209

International Conventions 209

Other Managerial Approaches

to Protecting Intellectual

Property 210

Cyberlaw: Unresolved Issues 213

Domain Names and

Cybersquatters 214

Taxes 215

Jurisdiction of Disputes and

Validity of Contracts 215

Commercial Law within

Countries 216

Marketing Laws 216

Green Marketing

Legislation 220

Foreign Countries’ Antitrust

Laws 221

U.S. Laws Apply in Host

Countries 221

Foreign Corrupt Practices

Act 222

U.S. Antitrust Laws That Apply

in Foreign Markets 223

Antiboycott Law 223

Extraterritoriality of U.S.

Laws 224

Export Restrictions 225

National Security Laws 225

Determining Export

Requirements 226

ELAIN, STELA, ERIC, and

SNAP 227

PART THREE

ASSESSING GLOBAL

MARKET OPPORTUNITIES

8 Developing a Global

Vision through Marketing

Research 230

Breadth and Scope of International

Marketing Research 233

The Research Process 234

Defining the Problem and

Establishing Research

Objectives 234

Problems of Availability and Use of

Secondary Data 235

Availability of Data 236

Reliability of Data 237

Comparability of Data 237

Validating Secondary Data 238

Gathering Primary Data:

Quantitative and Qualitative

Research 239

Problems of Gathering Primary

Data 241

Ability to Communicate

Opinions 241

Willingness to Respond 242

Sampling in Field Surveys 244

Language and

Comprehension 245

Multicultural Research: A Special

Problem 247

Research on the Internet: A

Growing Opportunity 248

Estimating Market Demand 250

Expert Opinion 251

Analogy 251

Problems in Analyzing and

Interpreting Research

Information 253

Responsibility for Conducting

Marketing Research 254

Communicating with Decision

Makers 256

Appendix: Sources of Secondary

Data 258

Websites for International

Marketing 259

U.S. Government Sources 259

Other Sources 260

9 Economic Development and

the Americas 262

Marketing and Economic

Development 264

Stages of Economic

Development 266

Economic Growth Factors 267

Information Technology, the

Internet, and Economic

Development 268

Objectives of Developing

Countries 269

Infrastructure and

Development 269

Marketing’s Contributions 270

Marketing in a Developing

Country 272

Level of Market

Development 272

Demand in Developing

Countries 274

Big Emerging Markets

(BEMs) 277

The Americas 278

North American Free Trade

Agreement (NAFTA) 278

Dominican Republic–

Central American

Free Trade Agreement

(DR-CAFTA) 282

Southern Cone Free Trade Area

(Mercosur) 284

Latin American Progress 284

Latin American Economic

Cooperation 285

NAFTA to FTAA or

SAFTA? 286

Strategic Implications for

Marketing 286

10 Europe, Africa, and the

Middle East 290

La Raison d’Etre 293

Economic Factors 293

Political Factors 294

Geographic and Temporal

Proximity 294

Cultural Factors 294

Patterns of Multinational

Cooperation 294

Global Markets and Multinational

Market Groups 296

Europe 296

European Integration 296

European Union 300

Eastern Europe and the Baltic

States 302

The Commonwealth of

Independent States 303

Africa 305

Middle East/North Africa

(MENA) 308

Implications of Market

Integration 311

Strategic Implications 311

Market Metrics 312

Marketing Mix

Implications 313

11 The Asia Pacific Region 316

Dynamic Growth in the Asia Pacific

Region 318

The Greater China 318

Japan 323

India 326

The Four “Asian Tigers” 328

Vietnam 328

Bottom-of-the-Pyramid Markets

(BOPMs) 330

Market Metrics 331

Asia Pacific Trade

Associations 333

Association of Southeast Asian

Nations (ASEAN) and

ASEAN+3 333

Asia-Pacific Economic

Cooperation (APEC) 335

A Focus on Diversity within

China 335

Northeast China: Longtime

Industrial Heartland 337

Beijing–Tianjin 339

Shanghai and the Yangtze River

Delta 340

Pearl River Delta 341

The Other Billion 341

Differences in Business

Negotiation Styles within

The Greater China 342

Marketing Opportunities in The

Greater China 343

PART FOUR

DEVELOPING GLOBAL

MARKETING STRATEGIES

12 Global Marketing

Management: Planning and

Organization 346

Global Marketing

Management 349

The Nestle Way: Evolution,

not Revolution 351

Benefits of Global

Marketing 352

Planning for Global Markets 354

Company Objectives and

Resources 355

International Commitment 355

The Planning Process 356

Alternative Market-Entry

Strategies 361

Exporting 362

Contractual Agreements 363

Strategic International

Alliances 366

Direct Foreign Investment 370

Organizing for Global

Competition 371

Locus of Decision 373

Centralized versus Decentralized

Organizations 374

13 Products and Services for

Consumers 376

Quality 378

Quality Defined 379

Maintaining Quality 380

Physical or Mandatory

Requirements and

Adaptation 381

Green Marketing and Product

Development 383

Products and Culture 384

Innovative Products and

Adaptation 390

Diffusion of Innovations 391

Production of Innovations 394

Analyzing Product Components for

Adaptation 397

Core Component 398

Packaging Component 399

Support Services

Component 400

Marketing Consumer Services

Globally 402

Services Opportunities in Global

Markets 403

Barriers to Entering Global

Markets for Consumer

Services 405

Brands in International

Markets 407

Global Brands 409

National Brands 410

Country-of-Origin Effect and

Global Brands 411

Private Brands 415

14 Products and Services for

Businesses 418

Demand in Global Business-to-

Business (B2B) Markets 421

The Volatility of Industrial

Demand 422

Stages of Economic

Development 425

Technology and Market

Demand 428

Quality and Global Standards 430

Quality is Defined by the

Buyer 430

ISO 9000 Certification: An

International Standard of

Quality 433

Business Services 435

After-Sale Services 435

Other Business Services 437

Trade Shows: A Crucial Part

of Business-to-Business

Marketing 438

Relationship Marketing in Businessto-

Business Contexts 441

15 International Marketing

Channels 448

Channel-of-Distribution

Structures 450

Import-Oriented Distribution

Structure 450

Japanese Distribution

Structure 451

Trends: From Traditional

to Modern Channel

Structures 453

Distribution Patterns 456

Retail Patterns 456

Alternative Middleman Choices 459

Home-Country Middlemen 460

Foreign-Country

Middlemen 463

Government-Affiliated

Middlemen 464

Factors Affecting Choice of

Channels 464

Cost 465

Capital Requirements 465

Control 465

Coverage 465

Character 466

Continuity 466

Channel Management 467

Locating Middlemen 468

Selecting Middlemen 468

Motivating Middlemen 469

Controlling Middlemen 469

Terminating Middlemen 470

The Internet 470

Logistics 479

16 Integrated Marketing

Communications

and International

Advertising 484

Sales Promotions in International

Markets 486

International Public Relations 488

International Advertising 491

Advertising Strategy and

Goals 497

Product Attribute and Benefit

Segmentation 498

Regional Segmentation 499

The Message: Creative

Challenges 502

Global Advertising and

the Communications

Process 502

Legal Constraints 506

Linguistic Limitations 508

Cultural Diversity 510

Media Limitations 511

Production and Cost

Limitations 511

Media Planning and Analysis 511

Tactical Considerations 512

Campaign Execution and

Advertising Agencies 526

International Control of Advertising:

Broader Issues 528

17 Personal Selling and Sales

Management 532

Designing the Sales Force 534

Recruiting Marketing and Sales

Personnel 536

Expatriates 536

Virtual Expatriates 537

Local Nationals 538

Third-Country Nationals 540

Host-Country Restrictions 541

Selecting Sales and Marketing

Personnel 541

Training for International

Marketing 546

Motivating Sales Personnel 547

Designing Compensation

Systems 548

For Expatriates 548

For a Global Sales Force 549

Evaluating and Controlling Sales

Representatives 551

Preparing U.S. Personnel for Foreign

Assignments 552

Overcoming Reluctance

to Accept a Foreign

Assignment 552

Reducing the Rate of Early

Returns 553

Successful Expatriate

Repatriation 554

Developing Cultural

Awareness 556

The Changing Profile of the Global

Manager 557

Foreign-Language Skills 559

18 Pricing for International

Markets 562

Pricing Policy 565

Pricing Objectives 566

Parallel Imports 568

Approaches to International

Pricing 570

Full-Cost versus Variable-Cost

Pricing 570

Skimming versus Penetration

Pricing 571

Price Escalation 573

Costs of Exporting 573

Taxes, Tariffs, and Administrative

Costs 574

Inflation 574

Deflation 575

Exchange Rate

Fluctuations 575

Varying Currency Values 576

Middleman and Transportation

Costs 578

Sample Effects of Price

Escalation 578

Approaches to Reducing Price

Escalation 579

Lowering Cost of Goods 579

Lowering Tariffs 580

Lowering Distribution

Costs 581

Using Foreign Trade Zones 581

Dumping 582

Leasing in International

Markets 583

Countertrade as a Pricing Tool 584

Problems of

Countertrading 585

The Internet and

Countertrading 585

Price Quotations 586

Administered Pricing 587

Cartels 587

Government-Influenced

Pricing 590

Getting Paid: Foreign Commercial

Payments 590

Letters of Credit 591

Bills of Exchange 593

Cash in Advance 593

Open Accounts 593

Forfaiting 593

PART FIVE

IMPLEMENTING GLOBAL

MARKETING STRATEGIES

19 Inventive Negotiations with International

Customers, Partners, and Regulators 596

The Dangers of Stereotypes 599

The Pervasive Impact of Culture on Negotiation

Behavior 600

Differences in Language and Nonverbal Behaviors 601

Differences in Values 606

Differences in Thinking and Decision-Making

Processes 609

Implications for Managers and Negotiators 610

Negotiation Teams 610

Negotiation Preliminaries 612

At the Negotiation Table 615

After Negotiations 620

Inventive International Negotiations 621

Conclusions 623

PART SIX

SUPPLEMENTARY

MATERIAL

THE COUNTRY NOTEBOOK—A

Guide for Developing a

Marketing Plan 625

CASES

Cases can be found in SmartBook or

the Instructor Resources within

Connect

An Overview

1-1 Starbucks—Going Global Fast

1-2 Nestlé: The Infant Formula

Controversy

1-3 Coke and Pepsi Learn to Compete

in India

1-4 Marketing Microwave Ovens to a

New Market Segment

1-5 Living in a Box . . . The Way of the

Future?

The Cultural Environment of

Global Marketing

2-1 The Not-So-Wonderful World of

EuroDisney—to Paris, Hong Kong,

Shanghai, and Beyond

2-2 Cultural Norms, Fair & Lovely,

and Advertising

2-3 Starnes-Brenner Machine Tool

Company: To Bribe or Not to

Bribe?

2-4 Ethics and Airbus

2-5 Coping with Corruption

2-6 When International Buyers and

Sellers Disagree

2-7 McDonald’s and Obesity

2-8 Ultrasound Machines, India,

China, and a Skewed Sex Ratio

2-9 Counterfeit Mobile Phones in

Southeast Asia

Assessing Global Market

Opportunities

3-1 International Marketing Research

at the Mayo Clinic

3-2 Swifter, Higher, Stronger, Dearer

3-3 Marketing to the Bottom of the

Pyramid

3-4 Continued Growth for Zara and

Inditex

3-5 A Sea Launch Recovery?

3-6 Club Med and the International Consumer

3-7 Gillette: The 11-Cent Razor, India,

and Reverse Innovation

Developing Global Marketing Strategies

4-1 Tambrands—Overcoming Cultural Resistance

4-2 Futuram’s Risk Management Strategy

4-3 Sales Negotiations Abroad for

MRI Systems

4-4 National Office Machines—

Motivating Japanese Salespeople:

Straight Salary or Commission?

4-5 AIDS, Condoms, and Carnival

4-6 Making Socially Responsible and

Ethical Marketing Decisions:

Selling Tobacco to Third World

Countries

4-7 The Obstacles to Introducing a

New Product into a New Market

4-8 Mary Kay in India

4-9 Noland Stores Cleans Up Its Act

Glossary 634

Name Index 642

Subject Index 657

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