International Marketing

by Czinkota, Michael R.; Ronkainen, Ilkka A.

• ISBN13: 9780324190465
• ISBN10: 0324190468
• Edition: 7th
• Format: Hardcover
• Copyright: 2003-05-22
• Publisher: South-Western College Pub

Summary

A completely up-to-date text for one of the most dynamic upper-level and graduate courses in marketing departments today. It offers the entire range of international marketing topics beginning with start-up operations, continuing with new market entry considerations, and concluding with the international issues confronting giant global marketers.

Table of Contents

Preface	iv
Acknowledgments	x
About the Authors	xii
Part One The International Environment
The International Marketing Imperative	2	(28)
The International Marketplace 1.1: The Two Sides of International Marketing	3	(1)
What International Marketing Is	4	(1)
The Importance of World Trade	5	(2)
Global Linkages	6	(1)
The International Marketplace 1.2: Some Thoughts on Basketball Competitiveness	7	(3)
Domestic Policy Repercussions	8	(2)
The International Marketplace 1.3: International Marketing: Bringing Peace, Fighting Terrorism	10	(1)
Opportunities and Challenges in International Marketing	10	(4)
The Goals of This Book	14	(3)
Summary	15	(1)
Key Terms	15	(1)
Questions for Discussion	15	(1)
Internet Exercises	16	(1)
Appendix A: Basics of Marketing	17	(4)
Strategic Marketing	17	(1)
Target Market Selection	17	(2)
Marketing Management	19	(1)
The Marketing Process	19	(1)
Key Terms	20	(1)
Appendix B: Geographical Perspectives on International Marketing	21	(9)
Location	22	(1)
Place	22	(1)
Natural Features	23	(1)
Human Features	24	(1)
Interaction	25	(1)
Movement	26	(2)
Region	28	(1)
Key Terms	29	(1)
International Trade Institutions and Trade Policy	30	(26)
The International Marketplace 2.1: Who Should Regulate E-Commerce?	31	(1)
The Historical Dimension	31	(2)
Global Division	33	(1)
Transnational Institutions Affecting World Trade	33	(4)
World Trade Organization (WTO)	33	(3)
International Monetary Fund (IMF)	36	(1)
World Bank	36	(1)
The International Marketplace 2.2: World Bank to the Rescue	37	(1)
Regional Institutions	37	(1)
Comparing International Trade Positions	38	(3)
A Diagnosis of the U.S. Trade Position	40	(1)
The Impact of Trade and Investment	41	(3)
The Effect of Trade	41	(1)
The Effect of International Investment	42	(2)
Policy Responses to Trade Problems	44	(6)
Restrictions of Imports	44	(4)
Export Promotion Efforts	48	(2)
A Strategic Outlook for Trade and Investment Policies	50	(2)
A U.S. Perspective	50	(1)
An International Perspective	51	(1)
The International Marketplace 2.3: A Marketing Approach to Trade	52	(3)
Summary	53	(1)
Key Terms	53	(1)
Questions for Discussion	53	(1)
Internet Exercises	53	(1)
Recommended Readings	54	(1)
Appendix A: Members of the U.S. Trade Promotion Coordination Committee (TPCC)	55	(1)
The Cultural Environment	56	(32)
The International Marketplace 3.1: Cultural Imperialism Does Not Sell in International Markets	57	(2)
Culture Defined	59	(2)
The Elements of Culture	61	(1)
Language	61	(1)
The International Marketplace 3.2: Euroteens = U.S. Teens?	62	(9)
Nonverbal Language	64	(1)
Religion	65	(3)
Values and Attitudes	68	(1)
Manners and Customs	69	(2)
The International Marketplace 3.3: Soup: Now It's Mmmm-Mmmm-Global!	71	(4)
Material Elements	72	(1)
Aesthetics	73	(1)
Education	74	(1)
Social Institutions	74	(1)
Sources of Cultural Knowledge	75	(2)
Cultural Analysis	77	(4)
The Training Challenge	81	(3)
The International Marketplace 3.4: Online Cultural Training	84	(1)
Making Culture Work for Marketing Success	84	(4)
Summary	86	(1)
Key Terms	86	(1)
Questions for Discussion	86	(1)
Internet Exercises	86	(1)
Recommended Readings	87	(1)
The Economic Environment	88	(42)
The International Marketplace 4.1: Markets at the Bottom of the Income Pyramid	89	(5)
Market Characteristics	94	(7)
Population	95	(6)
The International Marketplace 4.2: In Search of the New China	101	(7)
Infrastructure	106	(2)
The International Marketplace 4.3: Bringing the New Economy to New Markets	108	(1)
Impact of the Economic Environment on Social Development	109	(1)
Regional Economic Integration	109	(9)
Levels of Economic Integration	110	(8)
The International Marketplace 4.4: NAFTA and Wal-Mart: Reshaping the Mexican Retail Market	118	(6)
Other Economic Alliances	120	(2)
Economic Integration and the International Marketer	122	(2)
Dealing with Financial Crises	124	(6)
Causes of the Crises	125	(1)
Effects of the Crises	125	(1)
Consumer and Marketer Responses	125	(2)
Summary	127	(1)
Key Terms	127	(1)
Questions for Discussion	128	(1)
Internet Exercises	128	(1)
Recommended Readings	128	(2)
The International Political and Legal Environment	130	(56)
The International Marketplace 5.1: Is Your French Wine Really from Mexico?	131	(1)
Home Country Political and Legal Environment	132	(5)
Embargoes and Sanctions	132	(3)
Export Controls	135	(1)
A New Environment for Export Controls	136	(1)
The International Marketplace 5.2: Export Controls: More Harm than Good?	137	(7)
Import Controls	140	(1)
Regulation of International Business Behavior	141	(3)
Host Country Political and Legal Environment	144	(6)
Political Action and Risk	144	(5)
Legal Differences and Restraints	149	(1)
The International Marketplace 5.3: The Ehime Maru: A Clash of Two Cultures	150	(3)
Influencing Politics and Laws	151	(2)
The International Environment	153	(4)
International Politics	153	(1)
International Law	153	(1)
Summary	154	(1)
Key Terms	155	(1)
Questions for Discussion	155	(1)
Internet Exercises	155	(1)
Recommended Readings	156	(1)
Cases ``Trick-or-Treat?'' Costume Market in Horror as Halloween Approaches	157	(4)
A Presidential Proclamation on Steel	161	(6)
Car Financing in China	167	(7)
IKEA in the USA	174	(5)
Renaming the Vietnamese Catfish	179	(3)
Video Case Equal Exchange Strives for Equality through Fair Trade	182	(4)
Part Two Beginning International Marketing Activities
Building the Knowledge Base	186	(38)
The International Marketplace 6.1: Welcoming China to International Marketing Research	187	(1)
Defining the Issue	188	(1)
International and Domestic Research	188	(1)
New Parameters	188	(1)
New Environments	188	(1)
Number of Factors Involved	189	(1)
Broader Definition of Competition	189	(1)
Recognizing the Need for Research	189	(1)
The Benefits of Research	190	(1)
Determining Research Objectives	191	(2)
Going International: Exporting	191	(1)
Going International: Importing	192	(1)
Market Expansion	192	(1)
Determining Secondary Information Requirements	193	(1)
Sources of Data	193	(1)
The International Marketplace 6.2: Secondary Data Sources in Europe	194	(3)
Evaluating Data	196	(1)
Analyzing and Interpreting Secondary Data	196	(1)
Data Privacy	197	(1)
The Primary Research Process	197	(6)
Determining Information Requirements	198	(1)
Industrial versus Consumer Research	198	(1)
Determining Research Administration	198	(4)
Determining the Research Technique	202	(1)
The International Marketplace 6.3: Adapting Research Procedures to Local Conditions	203	(6)
Designing the Survey Questionnaire	205	(2)
Developing the Sampling Plan	207	(1)
Data Collection	208	(1)
Analyzing and Interpreting Primary Data	208	(1)
Presenting Research Results	208	(1)
Follow-Up and Review	208	(1)
Using Web Technology for Research	209	(1)
The International Information System	209	(6)
Environmental Scanning	210	(1)
Delphi Studies	211	(1)
Scenario Building	212	(1)
Summary	213	(1)
Key Terms	214	(1)
Questions for Discussion	214	(1)
Internet Exercises	214	(1)
Recommended Readings	214	(1)
Appendix A: Information Sources for Marketing Issues	215	(6)
Appendix B: The Structure of a Country Commercial Guide	221	(3)
Exporting, Licensing, and Franchising	224	(22)
The International Marketplace 7.1: Tapping Global Markets through E-Commerce	225	(1)
Motivations to Internationalize	226	(4)
Proactive Motivations	227	(1)
Reactive Motivations	228	(2)
Change Agents	230	(1)
Internal Change Agents	230	(1)
The International Marketplace 7.2: An Accidental Exporter	231	(4)
External Change Agents and Export Intermediaries	232	(1)
Export Intermediaries	233	(2)
International Stages	235	(2)
Licensing and Franchising	237	(1)
Licensing	237	(1)
Assessment of Licensing	237	(1)
The International Marketplace 7.3: International Franchising That Will Melt in Your Mouth	238	(1)
Principal Issues in Negotiating Licensing Agreements	239	(1)
Trademark Licensing	239	(1)
Franchising	240	(2)
The Internationalization Process	242	(4)
Summary	244	(1)
Key Terms	245	(1)
Questions for Discussion	245	(1)
Internet Exercises	245	(1)
Recommended Readings	245	(1)
Product Adaptation	246	(26)
The International Marketplace 8.1: Europeanizing Products	247	(1)
Product Variables	248	(4)
Standardization versus Adaptation	249	(3)
Factors Affecting Adaptation	252	(1)
The Market Environment	252	(7)
Government Regulations	252	(2)
Nontariff Barriers	254	(1)
Customer Characteristics, Expectations, and Preferences	255	(3)
Economic Development	258	(1)
Competitive Offerings	259	(1)
Climate and Geography	259	(1)
Product Characteristics	259	(3)
Product Constituents	260	(1)
Branding	260	(1)
Packaging	261	(1)
The International Marketplace 8.2: When There Is More to a Name	262	(4)
Appearance	263	(1)
Method of Operation or Usage	264	(1)
Quality	264	(1)
Service	265	(1)
Country-of-Origin Effects	265	(1)
Company Considerations	266	(1)
Product Counterfeiting	266	(2)
The International Marketplace 8.3: The Phantom Pirates	268	(4)
Summary	270	(1)
Key Terms	270	(1)
Questions for Discussion	270	(1)
Internet Exercises	271	(1)
Recommended Readings	271	(1)
Export Pricing Strategies	272	(32)
The International Marketplace 9.1: Adjusting to the Currency Squeeze	273	(1)
Price Dynamics	274	(2)
The Setting of Export Prices	276	(5)
Export Pricing Strategy	277	(1)
Export-Related Costs	278	(3)
Terms of Sale	281	(2)
The International Marketplace 9.2: Penetrating Foreign Markets by Controlling Export Transport	283	(1)
Terms of Payment	284	(5)
Getting Paid for Exports	289	(3)
The International Marketplace 9.3: Now for the Hard Part: Getting Paid for Exports	292	(1)
Managing Foreign Exchange Risk	292	(4)
Sources of Export Financing	296	(3)
Commercial Banks	296	(1)
Forfaiting and Factoring	297	(1)
Official Trade Finance	298	(1)
Price Negotiations	299	(1)
Leasing	300	(1)
Dumping	300	(4)
Summary	302	(1)
Key Terms	302	(1)
Questions for Discussion	302	(1)
Internet Exercises	302	(1)
Recommended Readings	303	(1)
International Communications	304	(28)
The International Marketplace 10.1: The Art of Negotiation	305	(1)
The Marketing Communications Process	306	(2)
International Negotiations	308	(4)
Stages of the Negotiation Process	309	(1)
How to Negotiate in Other Countries	310	(2)
Marketing Communications Strategy	312	(4)
Communications Tools	316	(10)
Business/Trade Journals and Directories	316	(2)
Direct Marketing	318	(2)
Internet	320	(1)
Trade Shows and Missions	321	(5)
The International Marketplace 10.2: At the Fair	326	(3)
Personal Selling	326	(3)
The International Marketplace 10.3: Automating the Sales Force	329	(3)
Summary	330	(1)
Key Terms	330	(1)
Questions for Discussion	331	(1)
Internet Exercises	331	(1)
Recommended Readings	331	(1)
Channels and Distribution Strategies	332	(64)
The International Marketplace 11.1: Getting the Distribution Job Done in Latin America	333	(1)
Channel Structure	334	(2)
Channel Design	336	(9)
Customer Characteristics	336	(1)
Culture	337	(2)
Competition	339	(1)
Company Objectives	340	(1)
Character	341	(1)
Capital	341	(1)
Cost	342	(1)
Coverage	342	(1)
Control	343	(1)
Continuity	344	(1)
Communication	344	(1)
Selection of Intermediaries	345	(10)
Types of Intermediaries	345	(1)
Sources for Finding Intermediaries	346	(4)
Screening Intermediaries	350	(3)
The Distributor Agreement	353	(2)
Channel Management	355	(5)
Factors in Channel Management	355	(2)
Gray Markets	357	(3)
The International Marketplace 11.2: Country of Origin and Gray Markets	360	(3)
Termination of the Channel Relationship	361	(2)
E-Commerce	363	(2)
The International Marketplace 11.3: E-Commerce in Emerging Markets	365	(3)
Summary	366	(1)
Key Terms	366	(1)
Questions for Discussion	367	(1)
Internet Exercises	367	(1)
Recommended Readings	367	(1)
Cases Exports of Tobacco	368	(6)
Damar International	374	(2)
Water from Iceland	376	(5)
Joemarin Oy	381	(5)
The Gray Ferrari	386	(3)
Video Cases Global Vendor Relations at Pier I Imports	389	(2)
Lakewood Chopsticks Exports	391	(5)
Part Three Global Marketing Management
Global Strategic Planning	396	(24)
The International Marketplace 12.1: Appliance Makers on a Global Quest	397	(1)
Global Marketing	398	(3)
Globalization Drivers	399	(2)
The International Marketplace 12.2: Born Global	401	(2)
The Strategic Planning Process	403	(13)
Understanding and Adjusting the Core Strategy	403	(2)
Formulating Global Marketing Strategy	405	(7)
Global Marketing Program Development	412	(2)
Implementing Global Marketing	414	(2)
The International Marketplace 12.3: Finding the Fit Overseas	416	(4)
Summary	417	(1)
Key Terms	418	(1)
Questions for Discussion	418	(1)
Internet Exercises	418	(1)
Recommended Readings	418	(2)
Global Market Expansion	420	(18)
The International Marketplace 13.1: Buying Domestic? Maybe Not	421	(1)
Foreign Direct Investment	421	(1)
Major Foreign Investors	422	(4)
Reasons for Foreign Direct Investment	422	(4)
The International Marketplace 13.2: The Chinese World Factory	426	(1)
A Perspective on Foreign Direct Investors	427	(2)
Types of Ownership	428	(1)
The International Marketplace 13.3: One Company Chooses Four Modes of International Investment	429	(5)
Contractual Arrangements	434	(4)
Summary	435	(1)
Key Terms	436	(1)
Questions for Discussion	436	(1)
Internet Exercises	436	(1)
Recommended Readings	437	(1)
Product and Brand Management	438	(26)
The International Marketplace 14.1: Anatomy of a Global Product Launch	439	(2)
Global Product Development	441	(6)
The Product Development Process	442	(3)
The Location of R&D Activities	445	(2)
The International Marketplace 14.2: Centers of Excellence	447	(4)
The Organization of Global Product Development	448	(1)
The Testing of New Product Concepts	449	(1)
The Global Product Launch	450	(1)
Management of the Product and Brand Portfolio	451	(7)
Analyzing the Product Portfolio	451	(4)
Managing the Brand Portfolio	455	(3)
The International Marketplace 14.3: Development and Management of a Global Brand	458	(6)
Summary	462	(1)
Key Terms	462	(1)
Questions for Discussion	462	(1)
Internet Exercises	463	(1)
Recommended Readings	463	(1)
Services Marketing	464	(20)
The International Marketplace 15.1: A Global Service: Free Access to Medical Journals	465	(1)
Differences between Services and Goods	465	(5)
Linkage between Services and Goods	467	(1)
Stand-Alone Services	467	(3)
The Role of Services in the U.S. Economy	470	(2)
The Role of International Services in the World Economy	472	(1)
Global Transformation of Services	473	(1)
International Trade Problems in Services	474	(2)
Data Collection Problems	474	(1)
Regulation of Services Trade	475	(1)
Corporations and Involvement in International Services Marketing	476	(2)
Typical International Services	476	(2)
The International Marketplace 15.2: A New Services Industry: Finding Basketball Players	478	(2)
Starting to Market Services Internationally	479	(1)
The International Marketplace 15.3: Accounting after Enron	480	(4)
Strategic Implications of International Services Marketing	481	(1)
Summary	482	(1)
Key Terms	483	(1)
Questions for Discussion	483	(1)
Internet Exercises	483	(1)
Recommended Readings	483	(1)
Global Pricing Strategies	484	(24)
The International Marketplace 16.1: A Global Tax War?	485	(1)
Transfer Pricing	486	(5)
Use of Transfer Prices to Achieve Corporate Objectives	487	(1)
Transfer Pricing Challenges	488	(3)
Pricing within Individual Markets	491	(3)
Corporate Objectives	491	(2)
Costs	493	(1)
Demand and Market Factors	494	(1)
The International Marketplace 16.2: Just Do It in a Recession!	494	(2)
Market Structure and Competition	495	(1)
Environmental Constraints	496	(1)
Pricing Coordination	496	(1)
The Euro and Marketing Strategy	497	(2)
The International Marketplace 16.3: Coordinating Prices in Integrating Markets	499	(1)
Countertrade	500	(2)
Why Countertrade?	501	(1)
Types of Countertrade	502	(2)
Preparing for Countertrade	504	(4)
Summary	506	(1)
Key Terms	506	(1)
Questions for Discussion	506	(1)
Internet Exercises	506	(1)
Recommended Readings	507	(1)
Logistics and Supply Chain Management	508	(28)
The International Marketplace 17.1: How Does That HP Printer Get to Your Desk?	509	(1)
A Definition of International Logistics	509	(2)
Supply-Chain Management	511	(1)
The Impact of International Logistics	512	(1)
The New Dimensions of International Logistics	513	(1)
International Transportation Issues	513	(2)
Transportation Infrastructure	514	(1)
Availability of Modes	514	(1)
The International Marketplace 17.2: Port Closure Hurts Production and Produce	515	(6)
Choice of Modes	516	(5)
The International Shipment	521	(2)
Documentation	521	(2)
Assistance with International Shipments	523	(1)
International Inventory Issues	523	(2)
International Storage Issues	525	(2)
Storage Facilities	525	(1)
Foreign Trade Zones	526	(1)
International Packaging Issues	527	(2)
Management of International Logistics	529	(1)
Centralized Logistics Management	529	(1)
Decentralized Logistics Management	529	(1)
Contract Logistics	530	(1)
The Supply Chain and the Internet	530	(1)
Logistics and Security	531	(1)
Reverse Logistics	532	(1)
The International Marketplace 17.3: Happy Returns	533	(3)
Summary	533	(1)
Key Terms	534	(1)
Questions for Discussion	534	(1)
Internet Exercises	534	(1)
Recommended Readings	535	(1)
Global Promotional Strategies	536	(32)
The International Marketplace 18.1: Being a Good Sport Globally	537	(1)
Planning Promotional Campaigns	538	(9)
The Target Audience	538	(2)
Campaign Objectives	540	(1)
The Budget	540	(1)
Media Strategy	541	(6)
The International Marketplace 18.2: The World Wants Its MTV!	547	(11)
The Promotional Message	548	(5)
The Campaign Approach	553	(5)
Measurement of Advertising Effectiveness	558	(1)
Other Promotional Elements	558	(7)
Personal Selling	558	(1)
Sales Promotion	559	(3)
Public Relations	562	(2)
Sponsorship Marketing	564	(1)
The International Marketplace 18.3: Expanding the Social Vision: Global Community Relations	565	(3)
Summary	566	(1)
Key Terms	567	(1)
Questions for Discussion	567	(1)
Internet Exercises	567	(1)
Recommended Readings	567	(1)
Marketing Organization, Implementation, and Control	568	(30)
The International Marketplace 19.1: Procter & Gamble: Organization 2005	569	(1)
Organizational Structure	570	(11)
Organizational Designs	571	(10)
Implementation	581	(6)
Locus of Decision Making	581	(1)
Factors Affecting Structure and Decision Making	582	(1)
The Networked Global Organization	583	(1)
Promoting Internal Cooperation	584	(3)
The International Marketplace 19.2: Characteristics of Success	587	(2)
The Role of Country Organizations	588	(1)
Control	589	(2)
Types of Controls	590	(1)
The International Marketplace 19.3: International Best Practice Exchange	591	(7)
Exercising Control	594	(1)
Summary	595	(1)
Key Terms	596	(1)
Questions for Discussion	596	(1)
Internet Exercises	596	(1)
Recommended Readings	596	(2)
The Future	598	(65)
The International Marketplace 20.1: Marketing Overseas---Excellent for Career Advancement	599	(1)
The International Marketing Environment	600	(3)
The Political Environment	600	(3)
The International Marketplace 20.2: The Future of East Asian Integration	603	(2)
The International Financial Environment	603	(1)
Population Patterns	604	(1)
The International Marketplace 20.3: Migration: A Double Blessing	605	(3)
The Technological Environment	607	(1)
The Trade Framework	608	(1)
Governmental Policy	609	(1)
The Future of International Marketing Management	610	(8)
International Planning and Research	612	(1)
Product and Production Policy	613	(3)
International Communications	616	(1)
Distribution and Logistics Strategies	616	(1)
International Pricing	617	(1)
Careers in International Marketing	618	(9)
Further Training	618	(1)
Employment with a Large Firm	618	(5)
Employment with a Small or Medium-Sized Firm	623	(1)
Self-Employment	623	(1)
Opportunities for Women in Global Firms	623	(2)
Summary	625	(1)
Key Terms	625	(1)
Questions for Discussion	625	(1)
Internet Exercises	626	(1)
Recommended Readings	626	(1)
Cases Chupa Chups Vending: ``Choose Your Flavor''	627	(7)
Nova Scotia	634	(5)
Customer Service Online: The HP DesignJet	639	(8)
The F-18 Hornet Offset	647	(7)
Kadimi Group of Companies (India): Exports	654	(5)
Parker Pen Company	659	(4)
Video Case Whirlpool and the Global Appliance Industry	663	(1)
References
Glossary
Index