International Marketing Strategy: Analysis, Development and Implementation, Ninth Edition
By Isobel Doole, Robin Lowe and Alexandra Kenyon
Contents:
Preface xvii
About the authors xxiv
Acknowledgements xxv
PART I
ANALYSIS 1
1 AN INTRODUCTION TO INTERNATIONAL MARKETING 3
The strategic importance of international
marketing 4
What is international marketing? 7
International marketing defined 7
The international marketing environment 9
Political factors 10
Economic factors 13
The developed economies 15
The emerging economies 16
Least developed countries 16
Currency risks 16
Social/cultural factors 17
Cultural factors 17
Social factors 18
Technological factors 23
Technological development through the
internet 23
Technology and the cultural paradox 24
Legal factors 25
Environment/sustainability factors 26
Differences between international and domestic
marketing 27
The international competitive landscape 28
The international market planning process 28
The planning process 29
Major evolutionary stages of planning 30
The international marketing planning
process 30
Stakeholder expectations 31
Situation analysis 33
Resources and capabilities 33
Knowledge management 33
Corporate objectives 34
Marketing strategies 34
Implementation of the marketing plan 35
The control process and feedback 35
Reasons for success 36
Characteristics of best practice in international
marketing 37
Case study 1 Fast food: the healthy option goes
global 38
Case study 2 Going international? You need
a language strategy 39
2 THE WORLD TRADING
ENVIRONMENT 42
External factors impacting governments
and businesses 43
Environmental risks 45
Technology risks 45
Political risks and world trading patterns 46
Looking back to look forward 50
The reasons countries trade 52
The theory of comparative advantage 52
How comparative advantage is achieved 53
The international product life cycle 54
Barriers to world trade 55
Marketing barriers 55
Tariff barriers 57
Non-tariff barriers 57
International Bank for Reconstruction
and Development (IBRD) 59
International Monetary Fund (IMF) 61
The World Trade Organization 62
The development of world trading groups 63
Forms of market agreement 63
Free trade area 63
Customs union 65
Common market 65
Economic union 65
Political union 65
The European Union 66
The Single European Market 66
European Monetary Union 68
Strategic implications 68
Widening European membership 68
United States–Mexico–Canada Trade Area 69
The Asian Pacific Trading Region 70
Asia Pacific Economic Cooperation (APEC) 70
Asean-China Free Trade Area (ACFTA) 72
Barriers to developing a cohesive trading
region 72
Case study 1 Export tourism increases host
country’s GDP 74
Case study 2 The mobile/cell phone services
market in Africa 75
3 SOCIAL AND CULTURAL CONSIDERATIONS IN INTERNATIONAL MARKETING 78
Social and cultural factors 79
What is culture? 80
The components of culture 81
Language and culture 83
Culture and consumer behaviour 88
Is the buying process in all countries an
individualistic activity? 89
Who, within the family, does the consumer
buying process include? And is this
consistent across cultures? 90
Analyzing cultures and the implications for
consumer behaviour 91
Self-reference criterion 92
Cross-cultural analysis 92
The high/low context approach 93
Hofstede’s 6-D model of national culture 93
Culture/communication typologies 97
Social and cultural influences in B2B marketing 99
Organizational buyers 99
Government buyer behaviour 99
The B2B buying process 100
The role of culture in negotiation styles 100
Ethical issues in cross-cultural marketing 101
Bribery and corruption or gift giving? 103
Bribery and corruption in business: a cultural
phenomenon 104
Piracy 105
Case study 1 Sustainable Case Study:
Starbucks helps coffee farmers sustain their
cultural heritage 108
Case study 2 Cultural challenges of the Brazilian market 109
4 INTERNATIONAL MARKETING
RESEARCH AND OPPORTUNITY
ANALYSIS 111
The role of marketing research and opportunity
analysis 112
The role of international marketing research 112
What big data is telling us 113
Opportunity identification and analysis 116
Scanning international markets 116
Demand pattern analysis 119
Multiple factor indices 119
Analogy estimation 119
Macro-survey technique 120
Risk evaluation 120
World Economic Forum 120
The Knaepen Package 121
Business Environment Risk
Index (BERI) 121
International marketing segmentation 122
Geographical criteria 122
The business portfolio matrix 123
Infrastructure/marketing institution
matrix 123
International segmentation 124
Mosaic Global 125
Hierarchical country: consumer
segmentation 127
The market profile analysis 128
Analyzing foreign country markets 128
Sources of information 128
Online databases 130
Problems in using secondary data 132
Primary research in international markets 133
Problem discovery and definition report 134
Developing an innovative approach 135
Networking 136
Consortia 136
The collection of primary data 136
Organizing the research study 137
Centralization vs decentralization 138
In-house or agency 138
Research design 139
Qualitative research 140
Survey methods 140
Questionnaire design 143
Sample frame 143
Fieldwork 144
Report preparation and presentation 145
Case study 1 Global brands use of
big data 147
Case study 2 Cultural segmentation map 148
Directed Study Activities 152
Directed Study Activity International Marketing
Planning: Analysis 153
PART II
STRATEGY DEVELOPMENT 159
5 INTERNATIONAL NICHE
MARKETING STRATEGIES FOR
SMALL- AND MEDIUM-SIZED
ENTERPRISES 160
The SME sector and its role within the global
economy 161
The role of SME internationalization in economic
regeneration 163
The challenges for SMEs from LDCs 163
Government support 166
The nature of SME international marketing
strategies 167
Exporting 167
Motivation 168
Barriers to internationalization 169
Niche marketing of domestically delivered
services 172
Importing and reciprocal trading 173
Direct marketing and electronic commerce 173
The nature of international development 175
Geographic development of SMEs 177
Market concentration and expansion 178
Where the domestic market is redefined 179
Where the SME international development is the
result of networking 179
Entrepreneur and family networks 179
Where the SME is born global 180
Supply chain internationalization 182
Developing relationships 184
International strategic marketing management in
SMEs 184
The McKinsey 7S framework 184
The generic marketing strategies for SME
internationalization 185
The factors which affect the choice of an SME’s
international marketing strategy 187
Market factors 187
Company factors 188
Country selection 189
Organization structure 190
International entrepreneurship and fast growth 195
The secret of high growth 195
The future of SME internationalization 199
Case study 1 Telensa: a shining light in smart cities 200
Case study 2 Pin it, share it, desire it, sell it 201
6 GLOBAL STRATEGIES 205
Global strategies of responsible businesses 206
Views of globalization and who has gone
global 208
COVID-19’s impact on global trade 211
The drivers of globalization 214
Alternative strategic responses 220
Global strategy drivers 221
Globalization and standardization 222
Standardization and adaptation 223
Globalized and customized 224
Regional strategy 227
International marketing management for global
firms 229
Global strategy implementation 229
Opportunities in emerging markets for global
firms 229
The emergence of MNEs from emerging
markets 230
Global appeal and the changing basis of
competitive
advantage 232
Increasing global appeal by building the global
brand 233
Global brand management 233
Creating a global presence by achieving global
reach 234
Managing diverse and complex activities
across a range of similar but often disparate
markets
and cultures 236
Organization structure for transnational
firms 237
Systems, processes and control 237
Control 237
Return on marketing investment 238
Planning systems and processes 238
Building skills in transnational organizations 239
Staff and the problems of international
management 240
What makes a good international
manager? 240
Management culture 241
Management style and shared values 242
Case study 1 Huawei: overcoming market
obstacles 243
Case study 2 Reshoring: rethinking global
reach 244
7 MARKET ENTRY STRATEGIES 248
The alternative market entry methods 249
Risk and control in market entry 252
Indirect exporting 253
Domestic purchasing 253
Export management companies or export
houses 253
Piggybacking 254
Trading companies 255
Direct exporting 256
Factors for success in exporting 256
Selection of exporting method 257
Agents 258
Achieving a satisfactory manufacturer–agent
relationship 258
Distributors 258
Other direct exporting methods 259
Management contracts 259
Franchising 259
Exporting through online platforms 260
Foreign manufacturing strategies without direct
investment 262
Reasons for setting up overseas manufacture
and service operations 262
Contract manufacture 264
Licensing 264
Foreign manufacturing strategies with direct
investment 265
Assembly 266
Wholly owned subsidiary 266
Company acquisitions and mergers 266
Cooperative strategies 270
Joint ventures 270
Strategic alliances 271
Minority stake share holdings 273
Case study 1 Wagamama’s international
expansion 276
Case study 2 IKEA in China: market entry flat
packed? 277
8 INTERNATIONAL PRODUCT AND
SERVICE MANAGEMENT 280
The nature of products and services 281
International product and service
marketing 281
The international marketing of service 284
The components of the international product
offer 285
Products, services and value propositions 287
Factors affecting international product and
service management 289
Reasons for adaptation of the product 291
Product acceptability 292
Shortening product life cycles 292
Franchising, joint ventures and alliances 292
Marketing management 293
Environmental and social responsibility
issues 293
Product policy 295
Product strategies 295
Managing products across borders 297
The product life cycle 297
Product portfolio analysis 298
Introduction and elimination activities 299
Image, branding and positioning 300
Country of origin effects 300
International branding 301
Brand categories 302
Brand value 303
Branding strategies 305
Brand piracy 307
Positioning 307
Innovation and new product development 308
The most innovative companies 309
The nature of new product development 309
The new product development process 311
Approaches to technology transfer and the
benefits for marketing 312
Research and development strategies 312
Success and failure in new product
development 313
Case study 1 A silver lining: new product
developments needed 316
Case study 2 Accor inseparable services: online
and face-to-face 317
Directed Study Activity International Marketing
Planning:
Strategy Development 320
PART III
IMPLEMENTATION 325
9 INTERNATIONAL
COMMUNICATIONS 326
The role of marketing communications 327
Internal marketing 327
Relationship marketing 328
External marketing 328
Communicating product and service
differentiation 329
Communicating the corporate identity to
international stakeholders 329
The fundamental challenges for international
marketing communications 332
International marketing communications,
standardization and adaptation 335
Towards standardization 336
Towards adaptation 338
International marketing communications
strategy 339
Communicating with existing and potential
customers 340
The integration of communications 342
Coordination and planning of the
international marketing communications
strategy 344
The marketing communications tools 344
Word-of-mouth and personal selling 345
Exhibitions, trade fairs and experiential
marketing 347
Trade missions 348
Advertising 348
Television advertising 349
Press advertising 350
The use of agencies and consultancies 351
Sales promotions 352
Direct marketing 352
Communicating with the wider range of
stakeholders 352
Corporate identity 353
Sponsorship and celebrity endorsement 353
Product placement and celebrity
endorsement 356
Public relations 357
Crisis management 357
Online communications 358
The nature of online communications 358
Online advertising 359
Social media advertising 359
Paid search advertising 360
Display advertising 361
Native advertising 361
Developing profitable, long-term marketing
relationships 363
The concept of relationship marketing 363
Database development 364
Customer relationship management 364
Case study 1 Greenpeace: global
campaigner 366
Case study 2 How do corporate brands survive a
global crisis? 368
10 THE MANAGEMENT OF
INTERNATIONAL DISTRIBUTION
AND LOGISTICS 371
The challenges in managing an international
distribution strategy 372
Selecting foreign country market
intermediaries 373
Indirect and direct channels 374
Channel selection 376
Customer characteristics and culture 377
Company objectives and competitive
activity 379
Character of the market 379
Capital required and costings 379
The coverage needed 381
Control, continuity and communication 381
The selection and contracting process 381
Building relationships in foreign market
channels 382
Motivating international marketing
intermediaries 382
Controlling intermediaries in international
markets 383
Channel updating 384
Developing a company-owned international
sales force 384
Trends in retailing in international markets 385
The differing patterns of retailing around the
world 385
Traditional retailing 387
Intermediary retailing 388
Structured retailing 390
Advanced retailing 390
The globalization of retailing 391
Marketing implications for development of
international distribution strategies 392
Internet retailing 393
The management of the physical distribution of
goods 396
The logistics approach to physical
distribution 396
Customer service 397
The restructuring of physical distribution
operations 397
The use of intermediaries 398
Transportation 400
Export processing zones 403
Administrative problems resulting from the
cross-border transfer of goods 403
Documentation and electronic data
interchange (EDI) 404
Packaging 405
The export sales contract 405
Case study 1 Bulk wine shifts the global wine
market 407
Case study 2 Poor packaging 5 lost profits 408
11 PRICING FOR INTERNATIONAL
MARKETS 411
Domestic vs international pricing 412
The factors affecting international pricing
decisions 412
Company and product factors 414
Product and service factors 415
The influence of cost structures on pricing 416
Specific export costs 420
Cost reduction 422
Economies of scale 424
Learning curve 424
Location of production facility and
pandemics 424
Market factors 425
Developing pricing strategies 426
The objectives of pricing 427
Setting a price 428
Problems of pricing and financing international
transactions 429
Problems in multinational pricing 430
Coordination of prices across markets 430
What is grey marketing? 431
Counterfeiting 432
Price coordination strategies 434
Transfer pricing in international markets 436
Problems in managing foreign currency
transactions 438
What currency should the price be quoted
in? 438
Should prices be raised/lowered as exchange
rates fluctuate? 439
Problems in minimizing the risk of non-payment in
high-risk countries 440
Countertrade and leasing 441
Advantages and limitations of
countertrade 444
Leasing 444
Deciding at what stage of the export sales process
the price should be quoted 445
The export order process 446
Case study 1 The impact of cryptocurrencies 450
Case study 2 Torque Developments
International plc 451
Global challenges 451
12 STRATEGIC PLANNING IN
TECHNOLOGY-DRIVEN
INTERNATIONAL MARKETS 454
The challenge 455
The enabling technologies 456
Technological innovation 457
Disruptive technologies 458
Convergent technology 460
The internet and international business
communications 460
Online strategies 463
The purpose of websites 463
Organization sites 463
Services online, on mobile, on the
move 464
Information apps online 464
Business transactions online 464
Social network advancement 464
International e-markets and e-marketing 466
Business-to-business (B2B) 466
Disintermediation and re-intermediation 468
Business-to-consumer (B2C) 468
Consumer-to-consumer (C2C) 469
International marketing solution integration 469
Knowledge management 469
Supply chain management 470
Value chain integration 470
Virtual enterprise networks 471
Customer relationship management
(CRM) 472
Customization 472
Strategic planning 473
Technology-driven analysis 473
Internal data 474
The impact of technology on international
strategy development 474
Internet-based market entry 474
The impact of technology on strategy
implementation and control 475
Some limitations of e-commerce for international
marketing strategy 478
Legislation 478
Problems of application of existing law to the
internet 479
Other internet problems 479
Moving to a customer-led strategy 479
Sustainability and corporate social
responsibility 481
The elements of the strategic plan 482
Case study 1 Heart problems? Wearable tech
could save your life 484
Case study 2 Yum! Brands: eating into new
markets 485
Yum! Restaurants International 486
Directed Study Activity International Marketing
Planning: Implementation, Control and
Evaluation 489
Glossary 495
Index 502
Credits 510