International Marketing Strategy: Analysis, Development and Implementation, 8th Edition PDF by Isobel Doole, Robin Lowe and Alexandra Kenyon


International Marketing Strategy: Analysis, Development and Implementation, Eighth Edition

By Isobel Doole, Robin Lowe and Alexandra Kenyon

International Marketing Strategy: Analysis, Development and Implementation,


Preface xvii

About the authors xxiv

Acknowledgements xxv



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


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


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


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




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


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


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


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


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


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



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


stakeholders 305

The fundamental challenges for international


communications 306

International marketing communications,


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


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


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


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


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


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