International Marketing Strategy

by Bradley, Frank

• ISBN13: 9780273655718
• ISBN10: 027365571X
• Edition: 4th
• Format: Paperback
• Copyright: 2002-01-01
• Publisher: Prentice Hall

Author Biography

Frank Bradley is R&A Balley Professor of International Marketing based at the Michael Smurfit Graduate School of Business, University College, Dublin.

Table of Contents

Preface	xix
Acknowledgements	xxv
Part I International marketing strategy scope and framework
1 Scope of international marketing strategy	3	(25)
International marketing environment	3	(8)
Market fragmentation and consolidation	4	(2)
Trend toward global markets	6	(2)
Causes of globalization	8	(1)
Technology and market liberalization	9	(1)
Firms in regional markets	10	(1)
International marketing strategy	11	(2)
Definitions of international marketing	12	(1)
Generic strategic responses	13	(5)
Developing competitive advantage	13	(1)
Product-market development	14	(1)
Technology, product and market decisions	14	(2)
Resource allocation in international markets	16	(2)
Performance and growth of the firm	18	(3)
Improving marketing performance in the firm	18	(2)
Strategic differentiation in the international firm	20	(1)
Dynamics of the international firm	21	(3)
Process model of international marketing	24	(2)
summary	26	(1)
References	26	(2)
2 Analytical framework for international marketing	28	(27)
Theory and practice in international marketing	28	(2)
International marketing theories	29	(1)
Analytical frameworks based on trade and transaction costs	30	(3)
Absolute advantage and the international firm	30	(1)
Comparative advantage and the international firm	30	(1)
Transactions costs in international markets	31	(1)
Nature of the international firm	32	(1)
Limitations of trade theory and transaction cost explanations	33	(1)
Comparative resource advantage theory of international marketing	33	(10)
Company resources	34	(1)
Access to tangible resources	34	(2)
Access to intangible resources	36	(1)
Resource application in product markets	37	(2)
Sources of competitive advantage	39	(1)
Knowledge in competitive advantage	39	(2)
Knowledge and the scale and scope of the firm	41	(1)
Transferring knowledge-based assets in international markets	42	(1)
Managerial theory of international marketing	43	(4)
Marketing in the business system	43	(1)
Orientation of the company in the business system	44	(3)
Strategic positioning in manufacturing and marketing	47	(4)
Managing costs and prices in international markets	47	(1)
Positioning the firm in the international business system	48	(1)
Product-market and business system resource allocation	49	(2)
Summary	51	(1)
References	51	(4)
Part II Environment of international marketing
3 Company resources and capabilities	55	(16)
Characteristics of the international firm	55	(6)
Goals and objectives of the international firm	56	(1)
Size of the firm in international markets	57	(1)
Firm size and scale effects	58	(1)
Location of the firm	59	(1)
Technology and innovation	60	(1)
Product range in the firm	60	(1)
Management of the international firm	61	(6)
Attitudes and cognitive styles	61	(1)
Management attitudes toward company growth	61	(2)
Cognitive style of managers	63	(1)
Aspirations, commitment and expectations of managers	64	(1)
Managerial aspirations for internationalization	64	(1)
Commitment to internationalization	65	(1)
Managerial expectations and internationalization	66	(1)
Stages of internationalization	67	(2)
Stages model and entrepreneurial firms	68	(1)
Summary	69	(1)
References	69	(2)
4 Analysis of international competitors	71	(15)
Meaning of international competition	71	(8)
Nature of competition among firms	73	(1)
Establishing competitive positions in international markets	73	(4)
Benefits of competition	77	(1)
Determinants of competitiveness in international markets	77	(1)
Measuring competitiveness in the firm	78	(1)
Understanding competitors in international markets	79	(5)
Competitor objectives, future goals and assumptions	80	(1)
Review of competitor strategies	80	(1)
Competitor organization and corporate culture	80	(2)
Size, growth and profitability of competitors	82	(1)
Evaluating competitive strengths	82	(1)
Cost structure and mobility barriers	83	(1)
Motives associated with unique capabilities	83	(1)
Summary	84	(1)
References	85	(1)
5 Culture in international marketing	86	(27)
Influence of culture in international marketing	86	(5)
Pervasiveness of culture	86	(1)
Characteristics and elements of culture	87	(2)
Definitions of culture	89	(1)
Cultural distance as an international marketing barrier	90	(1)
Cultural determinants of marketing behaviour in the international firm	91	(7)
Norms and behavioural patterns	91	(2)
Role of values and attitudes	93	(1)
Demographic factors	94	(1)
Special position of languages	95	(1)
Language homogeneity	96	(1)
Ethnic factors	96	(1)
Material culture, technology and the international firm	97	(1)
Analysis of culture influence	98	(13)
Macroanalysis of the cultural environment	100	(1)
Cultural variability	100	(2)
Cultural complexity	102	(1)
Cultural hostility	102	(1)
Influences among cultures	102	(1)
Cultural heterogeneity and interdependence	103	(1)
Context of cross-cultural relationships	104	(1)
Microanalysis of the cultural environment	105	(1)
Role of national ideology	106	(1)
Role of attitudes	106	(1)
Role of innovation and diffusion	107	(3)
Synthesis of cultural influence on buyer behaviour	110	(1)
Summary	111	(1)
References	111	(2)
6 Creating competitive advantage	113	(16)
Impact of market integration	114	(3)
Influence on the international firm	114	(1)
Concept of free trade	114	(1)
Developments in industrial markets	115	(1)
Position of developing countries	115	(2)
Challenge of open markets	117	(1)
Created assets in international markets	117	(1)
Comparative advantage and competitive advantage	118	(2)
Country and company competitiveness	118	(1)
Labour productivity and wealth	119	(1)
Phenomenon of emerging markets	120	(3)
Vicious circle of poverty	121	(1)
Relevance of marketing in developing countries	122	(1)
Recognizing mutual dependence	123	(1)
Industrial and commercial policy	123	(4)
Invisible hand or direct intervention	123	(2)
Dynamic comparative advantage	125	(2)
Summary	127	(1)
References	128	(1)
7 Coping with political risk and uncertainty	129	(17)
Political environment of international marketing	129	(6)
Role of government	130	(1)
Risk and uncertainty in international markets	131	(2)
Common political risks	133	(1)
Analysis of political environment	134	(1)
Regulating international transfers	135	(4)
Regulating transfers of products and services	135	(2)
Regulating money transfers	137	(1)
Regulating people transfers	137	(1)
Regulating technology transfers	138	(1)
Importance of exchange rate stability	138	(1)
International legal framework	139	(5)
EU jaws and directives	140	(1)
Product quality standards	141	(1)
Major world legal systems	142	(1)
Intellectual property rights in international markets	142	(1)
Legal aspects of marketing claims	143	(1)
Summary	144	(1)
References	145	(1)
8 Profiling international product markets	146	(18)
International market selection process	146	(1)
Segmenting international markets	147	(6)
Generic market segmentation	147	(1)
Strategic country groups	148	(2)
Cultural and geographic market segmentation	150	(1)
Key country segmentation variables	151	(2)
Linking market segmentation to market selection	153	(1)
Mechanics of international market selection	153	(9)
Opportunistic selection of international markets	154	(1)
Systematic selection of international markets	155	(2)
Industry market potential	157	(1)
Company sales potential	157	(1)
Evolution from opportunistic to systematic market selection	158	(1)
Role of information	159	(1)
Building an international product-market portfolio	160	(2)
Summary	162	(1)
References	163	(1)
9 Vision and strategy for international markets	164	(19)
Company vision and corporate strategy	164	(6)
Strategic marketing process	165	(1)
Strategic planning framework	166	(2)
Elements of strategic planning framework	168	(3)
Company mission	168	(1)
Shared purpose and values	168	(1)
Distinctive capabilities and measures of success	169	(1)
Strategic approaches to international markets	170	(1)
International marketing strategies	171	(7)
Generic international marketing strategies	171	(2)
Standardized or customized international strategies	173	(3)
Implications of standardizing international marketing strategies	176	(1)
International organizational processes	177	(1)
Summary	178	(1)
References	178	(5)
Part III International marketing strategy
10 The consumer products firm	183	(23)
Consumer products and brands in international markets	183	(1)
International product and brand decisions	183	(1)
Consumer products in international markets	184	(6)
Product innovation and differentiation	185	(1)
Using new information technologies	186	(1)
Consolidating fragmented markets	187	(2)
Consumer products as competitive platforms	189	(1)
Brands in international markets	190	(2)
Characteristics of a global brand	191	(1)
Recognizing differences and the domino effect	192	(1)
International brand strategies	192	(10)
Branding the competitive advantage	192	(1)
Sustaining the brand competitive advantage	193	(2)
Country of origin effects	195	(1)
Building and communicating brand values	195	(3)
Harmonizing brand strategy in different countries	198	(1)
Product categories and brands in international markets	199	(2)
Brand extensions in international markets	201	(1)
Protecting the brand	202	(2)
Obvious management traps	202	(1)
Counterfeiting and forgeries	203	(1)
Brands in the grey market	203	(1)
Summary	204	(1)
References	205	(1)
11 The industrial products firm	206	(21)
Industrial products firm in international markets	207	(1)
Nature of industrial markets	208	(3)
Markets as international networks	209	(1)
Industrial product development in international networks	210	(1)
Organizing for industrial buying	211	(5)
Industrial buying process	211	(5)
Assessing international competitive positions	216	(4)
Segmenting industrial product markets	216	(1)
Monitoring international market segments	217	(1)
Developing market positions	218	(2)
Routes to international markets	220	(2)
Commitment to international markets	221	(1)
Sources of international competitive advantage	221	(1)
Selling and promoting industrial products	222	(3)
Selling industrial products	222	(2)
Promoting industrial products	224	(1)
Summary	225	(1)
References	225	(2)
12 The services firm	227	(16)
Services in international marketing	227	(3)
Nature of services	228	(1)
Growth of services in world markets	229	(1)
Constraints on the international service firm	230	(2)
Motivations for internationalization in the service firm	231	(1)
Role of technology in the service firm	231	(1)
Productivity in services	232	(1)
International marketing of services	232	(6)
Coping with service intangibility	232	(2)
Personal contact in services	234	(1)
Standardization and customization of services	235	(1)
Scale and cultural effects	236	(1)
Integrated international marketing strategy for services	237	(1)
Restrictions on international marketing of services	238	(1)
Summary	239	(1)
References	240	(3)
Part IV International market entry strategies
13 Generic international market entry strategies	243	(19)
International market entry: concept and modes	244	(2)
Concept of market entry	244	(1)
Foreign market entry mode	244	(2)
Framework for international market entry	246	(5)
Generic market entry strategies	246	(2)
Market entry strategy and competition	248	(1)
Linking market strategy, complexity and entry	249	(2)
Selecting mode of international market entry	251	(5)
Entering new international product markets	251	(1)
Foreign market entry decisions	252	(1)
Determining optimum entry strategies	252	(3)
Choosing an entry mode for services	255	(1)
Sequencing international market entry	256	(4)
Life cycle effects on foreign market entry	256	(2)
Strategic sequencing of market entry	258	(2)
Summary	260	(1)
References	261	(1)
14 Exporting	262	(14)
Nature of exporting	262	(2)
Entering foreign markets through exporting	262	(1)
Exporting and commitment to internationalization	263	(1)
Determinants of export behaviour	264	(2)
Experience and uncertainty effects	264	(1)
Acquiring knowledge of export markets	265	(1)
Export decision process	266	(7)
Behavioural and firm-specific influences	266	(1)
Model of the export decision process	267	(2)
Direct export stimuli	269	(1)
Export decision maker	269	(1)
Size of firm and exporting activity	270	(1)
Export marketing groups	271	(2)
Costs of exporting	273	(1)
Summary	274	(1)
References	275	(1)
15 Strategic alliances	276	(26)
Nature of strategic alliances	276	(3)
Basis for a strategic alliance	277	(2)
Marketing partnership agreements	279	(1)
Licensing in international markets	280	(4)
Nature of international licensing	280	(1)
Benefits of licensing	281	(1)
Impact of licensing on cash flow	282	(1)
Prerequisites of successful licensing	283	(1)
The licence transaction	283	(1)
Assymetry in negotiating international licences	284	(1)
Franchising to enter international markets	284	(3)
Nature of franchising	284	(2)
Advantages of franchising	286	(1)
Disadvantages of franchising	287	(1)
Joint ventures to enter international markets	287	(8)
Benefits of international joint ventures	288	(2)
Access to resources	290	(1)
Access to markets	290	(2)
Joint ventures and host country policies	292	(1)
Stability of international joint ventures	292	(2)
Conditions for joint venture success	294	(1)
Selecting a partner for a strategic alliance	295	(2)
Evaluation of strategic alliances	297	(2)
Ability to cope with environmental change	297	(2)
Summary	299	(1)
References	299	(3)
16 Foreign direct investment	302	(19)
Locational advantage in international markets	302	(3)
Nature of foreign direct investment	303	(1)
Determinants of location for foreign direct investment	303	(2)
Motives for foreign direct investment	305	(5)
Managerial motives for foreign direct investment	306	(1)
Foreign direct investment and operating efficiency	307	(1)
Foreign direct investment and risk reduction	308	(1)
Foreign direct investment and market development	309	(1)
Foreign direct investment and government polite	309	(1)
International market entry by acquisition	310	(6)
Nature of foreign acquisitions	311	(1)
Success factors in acquisitions	312	(1)
Disadvantages of foreign acquisitions	313	(1)
Sequenced international acquisitions	314	(1)
Public policy and cross-border acquisitions	314	(2)
Evaluation of market entry through new foreign ventures and acquisitions	316	(1)
Comparison of acquisitions and new ventures	316	(1)
Management view of foreign direct investment	317	(1)
Summary	317	(1)
References	318	(3)
Part V Strategic alignment and performance in international marketing
17 Channels of international distribution	321	(27)
Nature of international channels of distribution	322	(2)
Role of channel intermediaries	323	(1)
Structure and function of channels of distribution	324	(7)
Intermediaries in the international channel	326	(1)
Selecting the intermediary	327	(1)
Obtaining intermediary commitment	328	(1)
Trade-offs in the distribution channel	329	(2)
Effectiveness and efficiency in international distribution channels	331	(6)
Integrated channels for international distribution	331	(1)
Constraints on channel design	332	(2)
Effective international channels of distribution	334	(1)
Channel cooperation and conflict	335	(1)
Improving channel performance	336	(1)
Power in international channels of distribution	337	(8)
Channel leadership and sources of power	337	(1)
Market interactivity, information and channel power	338	(2)
International direct distribution	340	(1)
Impact of information technologies on intermediaries	341	(1)
Intermediaries and the Internet	341	(2)
Disintermediation in the international channel	343	(1)
Direct cross-border shipments	344	(1)
Summary	345	(1)
References	346	(2)
18 Pricing in international markets	348	(20)
General influences on international pricing	348	(3)
Technology and competition	349	(1)
Pricing high-technology products	350	(1)
Government policies on pricing	350	(1)
Dumping in international markets	350	(1)
Transfer pricing	351	(1)
Impact of exchange rates	351	(4)
Fluctuating exchange rates	351	(1)
Coping with exchange rate movements	352	(1)
Market diversification and hedging	352	(1)
Strategic responses	353	(1)
Export price volatility	353	(1)
Standardized international prices	354	(1)
Framework for pricing in international markets	355	(2)
Cost approaches to international pricing	355	(2)
Absorption cost-pricing	355	(1)
Marginal cost pricing	356	(1)
Pricing and distribution channels	357	(9)
Price escalation in international channels	358	(2)
Market-based pricing in international markets	360	(2)
Life cycle effects on international pricing	362	(3)
Pricing at embryonic stage of international marketing	362	(2)
Pricing at mature stage of international marketing	364	(1)
Pricing for export competitiveness	365	(1)
Summary	366	(1)
References	367	(1)
19 International marketing negotiations	368	(21)
Selling and negotiating in international marketing	368	(2)
Nature of international marketing exchanges	369	(1)
International marketing negotiations	370	(4)
Buyer-seller communications	370	(2)
Cultural filters and 'noise'	371	(1)
Fields of cultural experience	372	(1)
Culture and effective communication	372	(1)
Impact of context on communication	373	(1)
Selling and negotiating strategies	374	(5)
Convergence of buying and selling	375	(1)
Stages in the buying process	375	(2)
Assessing the buying situation and buying roles	375	(1)
Supplier selection and purchase	376	(1)
Completing the purchase	377	(1)
Stages in the selling process	377	(2)
Customer communication and diagnosis	377	(2)
Problem solution and completion of sale	379	(1)
Cultural integration of negotiation and selling	379	(5)
Negotiation and discrete exchanges	379	(1)
Competitive negotiation style	380	(1)
Collaborative negotiation style	381	(1)
Bridging cultural differences in international negotiations	382	(1)
Domain of interest in international marketing relationships	383	(1)
Selecting the international sales team	384	(2)
Summary	386	(1)
References	387	(2)
20 Assessing international marketing performance	389	(14)
Aligning international marketing strategies	389	(5)
Measuring marketing performance	390	(2)
Hard and soft performance measures	392	(2)
Choosing performance criteria	393	(1)
Benchmarking the performance	393	(1)
Evaluating international marketing performance	394	(4)
Sales performance analysis	394	(1)
Current earnings and profits	395	(1)
Financial performance criteria	395	(1)
Using financial controls	396	(1)
Cash flow in international markets	396	(2)
Timing of cash flows for international sales growth	397	(1)
Size of firm and cash flow	398	(1)
Strategic control in international marketing	398	(3)
Fundamentals of marketing control	398	(1)
Return on international marketing investment	399	(2)
Summary	401	(1)
References	402	(1)
Company index	403	(2)
Name index	405	(2)
Subject index	407