International Marketing Strategy: Analysis, Development and Implementation, Eighth 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 2
The strategic importance of international marketing 3
What is international marketing? 5
International marketing defined 5
The international marketing environment 7
Social/cultural factors 8
Cultural factors 8
Social factors 10
Legal factors 12
Economic factors 15
The developed economies 16
The emerging economies 16
Least developed countries 16
Currency risks 17
Political factors 18
Technological factors 20
The Internet 20
The dual technological/cultural paradox 21
Sustainability factors 22
Differences between international and domestic marketing 23
The international competitive landscape 23
The international market planning process 25
The planning process 25
Major evolutionary stages of planning 26
The international marketing planning process 27
Situation analysis 29
Resources and capabilities 29
Knowledge management 29
Corporate objectives 30
Marketing strategies 30
Implementation of the marketing plan 31
The control process 31
Reasons for success 31
Characteristics of best practice in international
marketing 32
Case study 1 Fast food: the healthy option goes
global 34
Case study 2 Going international? You need a language strategy 35
2 THE WORLD TRADING ENVIRONMENT 38
External factors impacting governments and business 39
Environmental risks 40
Technology risks 40
World trading patterns 41
Future prospects 44
The reasons countries trade 47
The theory of comparative advantage 47
How comparative advantage is achieved 47
The international product life cycle 49
Barriers to world trade 49
Marketing barriers 49
Non-tariff barriers 51
International Bank for Reconstruction and Development (IBRD) 53
International Monetary Fund (IMF) 55
The World Trade Organization 56
The development of world trading groups 57
Forms of market agreement 57
Free trade area 57
Customs union 59
Common market 59
Economic union 59
Political union 59
The European Union 60
The Single European Market 60
European Monetary Union 61
Strategic implications 62
Widening European membership 62
The North American Free Trade Area 63
The Asian Pacific Trading Region 64
Asia Pacific Economic Cooperation 64
ASEAN-China Free Trade Area (ACFTA) 66
Case study 1 Export tourism increases host country’s GDP 68
Case study 2 The mobile/cell phone services market in Africa 69
3 SOCIAL AND CULTURAL CONSIDERATIONS IN INTERNATIONAL MARKETING 71
Social and cultural factors 72
What is culture? 72
Layers of culture 73
The components of culture 73
Language and culture 77
Culture and consumer behaviour 80
Does Maslow’s hierarchy of needs remain consistent across all cultures? 80
Is the buying process in all countries an individualistic activity? 81
Are social institutions and local conventions the same across all cultures? 81
Who, within the family, does the consumer buying process include? And is this consistent across cultures? 81
Analyzing cultures and the implications for consumer behaviour 83
Self-reference criterion 84
Cross-cultural analysis 85
The high/low context approach 85
Hofstede’s cultural dimensions 86
Culture/communication typologies 89
Globe programme 90
Social and cultural influences in B2B
marketing 91
Organizational buyers 91
Government buyer behaviour 92
The B2B buying process 92
The role of culture in negotiation styles 92
Ethical issues in cross-cultural
marketing 94
Bribery and corruption 96
Piracy 97
Case study 1 Building an international ethical
brand: coffee 99
Case study 2 Cultural challenges of the Brazilian market 100
4 INTERNATIONAL MARKETING RESEARCH AND OPPORTUNITY ANALYSIS 102
The role of marketing research and opportunity analysis 103
The role of international marketing research 103
What big data is telling us 104
Opportunity identification and analysis 106
Scanning international markets 106
Demand pattern analysis 109
Multiple factor indices 109
Analogy estimation 110
Macro-survey technique 110
Risk evaluation 110
World Economic Forum 111
The Knaepen Package 111
Business Environment Risk
Index (BERI) 112
International marketing segmentation 112
Geographical criteria 112
The business portfolio matrix 112
Infrastructure/marketing institution
matrix 114
Transnational segmentation 115
Mosaic Global 115
Hierarchical country: consumer
segmentation 117
The market profile analysis 118
Analyzing foreign country markets 118
Sources of information 118
Online databases 120
Problems in using secondary data 122
Primary research in international markets 123
Problem discovery and definition report 124
Developing an innovative approach 125
Networking 125
Consortia 126
The collection of primary data 126
Organizing the research study 126
Centralization vs decentralization 127
In-house or agency 128
Research design 129
Qualitative research 129
Survey methods 130
Questionnaire design 130
Sample frame 133
Fieldwork 133
Report preparation and presentation 134
Case study 1 Global brands use of
big data 136
Case study 2 Cultural segmentation map 137
Directed Study Activities 140
Directed Study Activity International marketing
planning: analysis 141
PART II STRATEGY DEVELOPMENT 147
5 INTERNATIONAL NICHE MARKETING STRATEGIES FOR SMALL-
AND MEDIUM-SIZED ENTERPRISES 148
The SME sector and its role within the global
economy 149
The role of SME internationalization in economic
regeneration 151
The challenges for SMEs from LDCs 151
Government support 153
The nature of SME international marketing
strategies 155
Exporting 155
Motivation 155
Barriers to internationalization 156
Niche marketing of domestically delivered
services 159
Importing and reciprocal trading 160
Direct marketing and electronic
commerce 160
The nature of international development 163
Geographic development of SMEs 164
Market concentration and expansion 165
Where the domestic market is redefined 165
Where the SME international development is the
result of networking 165
Entrepreneur and family networks 165
Where the SME is born global 167
Supply chain internationalization 168
Developing relationships 170
International strategic marketing management in SMEs 170
The McKinsey 7S framework 170
The generic marketing strategies for SME
internationalization 171
The factors which affect the choice of an SME’s
international marketing strategy 173
Market factors 173
Company factors 174
Country selection 174
Organization structure 176
International entrepreneurship and fast growth 181
The secret of high growth 181
The future of SME internationalization 184
Case study 1 Telensa: a shining light in smart cities 186
Case study 2 Pin it, share it, desire it, sell it 187
6 GLOBAL STRATEGIES 190
The alternative views of globalization 191
Globalization and standardization 194
The drivers of globalization 195
Alternative strategic responses 200
The international competitive posture 201
Global strategy drivers 202
Standardization and adaptation 204
Globally standardized strategy 205
Regional strategy 208
International marketing management for global
firms 210
Global strategy implementation 211
Opportunities in emerging markets for global firms 211
The emergence of MNEs from emerging
markets 212
Global appeal and the changing basis of
competitive
advantage 213
Increasing global appeal by building the global
brand 214
Global brand management 214
Creating a global presence by achieving global
reach 215
Managing diverse and complex activities across
a range of similar but often disparate markets
and cultures 217
Organization structure for transnational
firms 218
Systems, processes and control 218
Control 218
Return on marketing investment 219
Planning systems and processes 219
Building skills in transnational
organizations 220
Staff and the problems of international
management 221
What makes a good international
manager? 221
Management culture 222
Management style and shared values 223
Case study 1 Huawei: overcoming market
obstacles 224
Case study 2 Reshoring: rethinking global
reach 225
7 MARKET ENTRY STRATEGIES 228
The alternative market entry methods 229
Risk and control in market entry 232
Indirect exporting 233
Domestic purchasing 233
Export management companies or export
houses 233
Piggybacking 234
Trading companies 234
Direct exporting 235
Factors for success in exporting 236
Selection of exporting method 237
Agents 238
Achieving a satisfactory manufacturer–agent
relationship 238
Distributors 238
Other direct exporting methods 239
Management contracts 239
Franchising 239
Direct marketing and online purchasing 240
Foreign manufacturing strategies without direct
investment 241
Reasons for setting up overseas manufacture
and service operations 241
Contract manufacture 242
Licensing 242
Foreign manufacturing strategies with direct
investment 244
Assembly 244
Wholly owned subsidiary 246
Company acquisitions and mergers 247
Cooperative strategies 248
Joint ventures 248
Strategic alliances 250
Minority stake share holdings 252
Case study 1 Wagamama’s international expansion 254
Case study 2 IKEA in China: market entry flat packed? 256
8 INTERNATIONAL PRODUCT AND SERVICE MANAGEMENT 259
The nature of products and services 260
International product and service marketing 260
The international marketing of service 263
The components of the international product offer 264
Products, services and value propositions 266
Factors affecting international product
and service management 267
Reasons for adaptation of the product 269
Product acceptability 270
Shortening product life cycles 270
Franchising, joint ventures and alliances 270
Marketing management 271
Environmental and social responsibility issues 271
Product policy 273
Product strategies 273
Managing products across borders 275
The product life cycle 275
Product portfolio analysis 276
Introduction and elimination activities 277
Image, branding and positioning 278
Country of origin effects 278
International branding 279
Brand categories 280
Brand value 281
Branding strategies 283
Brand piracy 283
Positioning 285
Innovation and new product development 285
The most innovative companies 286
The nature of new product development 286
The new product development process 288
Approaches to technology transfer and the
benefits
for marketing 289
R&D strategies 289
Success and failure in new product
development 290
Case study 1 Autonomous cars: looking for a
driver! 293
Case study 2 Accor inseparable services: online
and face-to-face 294
Directed Study Activity International marketing
planning: strategy development 297
PART III IMPLEMENTATION 301
9 INTERNATIONAL COMMUNICATIONS 302
The role of marketing communications 303
Internal marketing 303
Interactive marketing 304
External marketing 304
Communicating product and service
differentiation 305
Communicating the corporate identity to
international
stakeholders 305
The fundamental challenges for international
marketing
communications 306
International marketing communications,
standardization
and adaptation 309
Towards standardization 310
Towards adaptation 310
International marketing communications strategy 312
Communicating with existing and potential
customers 314
The integration of communications 315
Coordination and planning of the international
marketing communications
strategy 317
The marketing communications tools 317
Word-of-mouth and personal selling 318
Exhibitions, trade fairs and experiential
marketing 320
Trade missions 321
Advertising 321
Television advertising 322
Press advertising 323
The use of agencies and consultancies 323
Sales promotions 325
Direct marketing 325
Communicating with the wider range of
stakeholders 325
Corporate identity 325
Sponsorship and celebrity endorsement 326
Product placement and celebrity endorsement 327
Public relations 327
Crisis management 329
Online communications 329
The nature of online communications 329
Developing profitable, long-term marketing relationships 332
The concept of relationship marketing 332
Database development 333
Customer relationship management 333
Case study 1 UNiDAYS: a good deal for students worldwide 335
Case study 2 Greenpeace: global campaigner 336
10 THE MANAGEMENT OF INTERNATIONAL DISTRIBUTION AND LOGISTICS 339
The challenges in managing an international
distribution strategy 340
Selecting foreign country market intermediaries 341
Indirect and direct channels 342
Channel selection 344
Customer characteristics and
culture 345
Company objectives and competitive
activity 347
Character of the market 347
Capital required and costings 347
The coverage needed 349
Control, continuity and communication 349
The selection and contracting
process 349
Building relationships in foreign market
channels 350
Motivating international marketing
intermediaries 350
Controlling intermediaries in international
markets 351
Channel updating 352
Developing a company-owned international
sales force 352
Trends in retailing in international markets 353
The differing patterns of retailing around the
world 353
Traditional retailing 355
Intermediary retailing 356
Structured retailing 358
Advanced retailing 358
The globalization of retailing 358
Marketing implications for development
of international distribution
strategies 360
Internet retailing 360
The management of the physical distribution of
goods 362
The logistics approach to physical
distribution 362
Customer service 363
The restructuring of physical distribution
operations 364
The use of intermediaries 364
Transportation 367
Export processing zones 369
Administrative problems resulting from the cross-border transfer of goods 369
Documentation 370
Packaging 371
The export sales contract 371
Case study 1 Bulk wine shifts the global wine market 373
Case study 2 Poor packaging = lost profits 374
11 PRICING FOR INTERNATIONAL MARKETS 377
Domestic vs international pricing 378
The factors affecting international pricing
decisions 378
Company and product factors 379
Product and service factors 380
The influence of cost structures
on pricing 381
Specific export costs 384
Cost reduction 388
Economies of scale 388
Learning curve 388
Location of production facility 389
Market factors 389
Developing pricing strategies 390
The objectives of pricing 391
Setting a price 392
Problems of pricing and financing international
transactions 393
Problems in multinational pricing 393
Coordination of prices across markets 393
What is grey marketing? 395
Price coordination strategies 397
Transfer pricing in international markets 399
To create barriers to entry 399
To avoid domestic tax liabilities 399
To avoid foreign tax 400
To manage the level of involvement in
markets 400
Problems in managing foreign currency
transactions 400
What currency should the price be quoted
in? 400
Should prices be raised/lowered as exchange
rates fluctuate? 401
Problems in minimizing the risk of non-payment in
high-risk countries 402
Countertrade and leasing 403
Advantages and limitations of countertrade 406
Leasing 406
Deciding at what stage of the export sales process
the price should be quoted 407
The export order process 408
Case study 1 The impact of cryptocurrencies 412
Case study 2 Torque Developments International plc 413
12 STRATEGIC PLANNING IN TECHNOLOGY- DRIVEN INTERNATIONAL MARKETS 416
The challenge 417
The enabling technologies 418
Technological innovation 418
Disruptive technologies 419
Convergent technology 421
The Internet and international business
communications 421
Online strategies 424
The purpose of websites 424
Organization sites 425
Service online 425
Information online 425
Business transactions online 425
Social networking 426
International e-markets and e-marketing 426
Business-to-business (B2B) 426
Disintermediation and re-intermediation 428
Business-to-consumer (B2C) 428
Consumer-to-consumer (C2C) 429
International marketing solution integration 429
Knowledge management 429
Supply chain management 430
Value chain integration 430
Virtual enterprise networks 431
Customer relationship management 431
Customization 431
Strategic planning 432
Technology-driven analysis 433
Internal data 434
The impact of technology on international
strategy
development 434
Internet-based market entry 434
The impact of technology on strategy implementation
and control 434
Some limitations of e-commerce for international
marketing strategy 437
Legislation 438
Problems of application of existing law to the
Internet 438
Other Internet problems 439
Moving to a customer-led strategy 439
Sustainability and corporate social
responsibility 440
The elements of the strategic plan 441
Case study 1 Heart problems? Wearable tech
could save your life 444
Case study 2 Yum! Brands: eating into new
markets 445
Directed Study Activity International marketing
planning: Implementation, control and
evaluation 449
Glossary 455
Credits 461
Index 463
Copyright