an asia-pacific perspective - gbv · 2008. 6. 12. · international marketing an asia-pacific...
TRANSCRIPT
3RD EDITION
AN ASIA-PACIFIC PERSPECTIVE
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Detailed Contents
Brief contents vPreface xviiAcknowledgements xxiAbout the authors xxiiiAdditional Cases on the Website for
Edition 3 xxv
Introduction 1
Chapter 1
The,Rationale for International Marketing 2Introduction 4The new international marketing environment 51.1 International highlight: As international
trade grows in importance it becomes morecomplex 6
What is international marketing? 7Approaches to international marketing 11
From domestic to transnational 11From indirect exporting to foreign direct
investment 12From an export focus to a holistic focus 12
Concepts underlying internationalmarketing 13
Comparative advantage 13Product life cycle extension 13Internalisation 15Relationships and networks 15
The wheel of international marketing 17The hub 17The spokes 18The rim 19The importance of world trade 19The dilema of definition 19
Australia and the global marketingenvironment
Major export activityMajor import activityTrade in servicesAustralian-Asian trade
1.2 International highlight: Internationalmarketing goes sky-high
Summary, Ethics issue, Websites,Discussion questions, References
PART A
Environmental Analysis of InternationalMarkets
Chapter 2
Appreciating the International Economic andFinancial Environment
The economic environmentThe global economic scene
2.1 International highlight: End trade barriersto cut poverty
International tradeMeasuring marketsMarketing implications
The financial environmentForeign exchange issues
2.2 International highlight: OSS—managingexchange rate risks
Financial managementThe international financial systemMarketing implications
Summary, Ethics issue, Websites, Discussionquestions, References
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INTERNATIONAL MARKETING An Asia-Pacific Perspective
Chapter 3
Catering for the Cultural and SocialEnvironment of International Business 70
Introduction 72Definition 72The impact of culture on international
marketing 72Culturally related factors which impact on
marketing 72Cultural universals 74Elements of culture 74
3.1 International highlight: Multiculturalismand investment 77
Expressions of culture 77Culture as a collective fingerprint 77
3.2 International highlight: The Chinese way 78Levels at which culture operates 79
Cultural concepts and cultural differences 81Key cultural concepts 81Key cultural differences 84
3.3 International highlight: Differences inspace and time 87
Culture and communication 90Verbal communication 90Non-verbal communication 91Cultural adaptation and communication 92
Cross-cultural comparisons 92Bilateral comparisons 92Global comparisons 93Social aspects of the conduct of
international marketing 99Culture and international negotiation 101
Background to negotiation 103The environment of international
negotiation 103Culture and the conduct of negotiations 104Preparing for international negotiation 106Stages in international negotiation 107The atmosphere of international
negotiations 109Styles of negotiation 110
Summary, Ethics issue, Websites, Discussionquestions, References 114
Chapter 4
Avoiding the Pitfalls of the InternationalPolitical and Legal Environment 120
Introduction 122The role of government in international
marketing 122Different types of national governments 122The role of government in the economy 123
4.1 International highlight: The sting ofsanctions 125
Political approaches in internationalmarketing 126
Political stability and risk 127Sources of political instability 128Nature of political risk 129Assessment 129The trade-off 131
Managing the overseas political environment 131Company behaviour 131
4.2 International highlight: China punishesfirms over use the term 'Taiwan' 132
Home government actions 132Contribution to the host country 133Localisation of operations 133Globalisation 134Political risk insurance 135Marketing implications—political 135
The legal environment 135Introduction 135
4.3 International highlight: When is acontract legal? 136
Differing legal systems and jurisdictions 137Legal systems 137International law 139Legal jurisdiction 140
Law and the marketing mix overseas 141Product 141Price 141Distribution 142Promotion 142Extraterritorial application of law 142
The impact of law on internationaloperations 143
Environment 143Human resources 143Intellectual property protection 144Reducing the impact 146
4.4 International highlight: Drug giants toldto reveal secrets 147
Contracts and dispute resolution 148Conciliation 148
DETAILED CONTENTS
Arbitration 149Litigation 149Marketing implications—legal 150
Summary, Ethics issue, Websites, Discussionquestions, References 151
Chapter 5
The Technology Environment andContemporary Environmental Variables 156
Introduction 158Technology 158Infrastructure development and economic
history—'techno-economic paradigms' 159Information and communication: the fifth
techno-economic paradigm 1615.1 International highlight: Is it a phone? 161The information revolution and the Internet 1625.2 International highlight: Korea goes
broadband 162The global network 163
The new information infrastructure in2005 165
Implications for international marketing 165International diffusion of innovation 166
5.3 International highlight: What's next—from brain boosters to a factory inthe home! 166
Contemporary factors in the internationalmarketing environment 170
Terrorism 170Health-related issues 171Environmentalism 172Ethics 175
5.4 International highlight: It takes two totango 179
Summary, Ethics issue, Websites,Discussion questions, References 181
Case 1 A golden opportunity: exportingEasy Flame barbeques to Argentina?
Al Marshall 185
Case 2 Tourism New South Wales'experience in marketing tourismduring the aftermath of the Asianfinancial crisis
Wisitta Gray and Richard Fletcher 188
Case 3.1 Taking Gourmet Express to Asia:can food advertising travel?
Al Marshall 193
Case 3.2 Exporting lamb to the SaudiArabian market—the impact of cultureon the production process
Craig Robinson, Eva Lee and RichardFletcher 197
Case 4 AusTel Consortium Pty Ltd—entering an Islamic market
Michelle Lim and Richard Fletcher 203
Case 5 Ausfurs in Argentina—a humanrights dilemma
Elizabeth Hayter, Rene Cordony andRichard Fletcher 209
PartB
International Market Planning Process 214
Chapter 6
Researching International Markets 216Introduction 218International research decisions 218International market research 2196.1 International highlight: Common
international research mistakes 220Stages 221Issues 222
International research process 223Problem formulation 223Research design 224
6.2 International highlight: Toll-free linesyield hot ideas 228
Research in developing countries 229Sources of information 229Data collection 230Secondary data <• 230Primary data 232
6.3 International highlight: Internationalmarketing research—oranges or lemons? 237
Interpretation 239Other issues 242Government export assistance 245
INTERNATIONAL MARKETING An Asia-Pacific Perspective
Summary, Ethics issue, Websites,Discussion questions, References 249
Chapter 7
International Market Selection 254Introduction . 256Alternative approaches to market selection 256Screening for market selection 258
Analysing the attractiveness of individualmarkets 258
A screening approach 260Market selection in the new millennium 264Modes of entering foreign markets 265
Export-based entry 2657.1 International highlight: Australian small
business exporting successes 266Manufacturing-based entry 268
7.2 International highlight: Australiantechnology finds its niche 269
Relationship-based entry 270The 'born global' phenomenon 271Evaluation of entry modes 271
^Theories of market entry 272Dunning's eclectic paradigm 272Williamson's transaction cost analysis 272
Information for market entry andexpansion 273
Factors internal to the firm 273Factors external to the firm 274
Approaches to internationalisation 276Sequential approaches 277Non-sequential approaches . 277
A holistic view of internationalisation 278Summary, Ethics issue, Websites,
Discussion questions, References 282
Chapter 8
Planning for International Marketing 286Introduction 288The context of international strategic
market planning 2898.1 International highlight: '2005' scenario
planning at Ericsson: cell-phone shakeout 292
Steps in the international marketingplanning process 294
Case example 8.1 294Evaluation of alternative marketing
strategies 300Case example 8.2 304
Corporate objectives 305Case example 8.3 305
Marketing objectives and strategy 306Case example 8.4 306
Economic evaluation 307Case example 8.5 307
Implementation and control 309Case example 8.6 310
Challenges to international marketingplanning 310
Practical international marketing planning 312Market-based and product-based
planning 3128.2 International highlight: How to wiggle
your way into new markets 313Incorporating creative insight 314The importance of management
aspirations 314Summary, Notes—definitions of strategic
terms, Ethics issues, Websites, Discussionquestions, References 315
Case 6 The hosiery market in Taiwan:information please!
Al Marshall 319
Case 7.1 Selecting the most appropriatemode of entry for a services companyexpanding abroad—ICLP's entry intothe Japanese market
Dajana Badzim and Richard Fletcher 322
Case 7.2 Mavlab veterinaryPharmaceuticals
Ho-YinWong 327
Case 8 Communicating with a mass marketin a developing country: The FredHollows Foundation in China
Ben Wyner and Richard Fletcher 329
I
DETAILED CONTENTS
PartC
International Marketing Strategy
Chapter 9
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Gaining Competitive Advantage 334Introduction 336National competitive advantage 336Competitive advantage and generic
strategies 341Basic competitive strategies 342
Value chain analysis 3449.1 International highlight: Value chains in
disarray 346Competitor analysis 347
Identifying the company's competitors 347Industry structure and competitive forces 348Determining competitors' objectives 350Identifying competitors' strategies 350Assessing competitors' strengths and
weaknesses 351Estimating competitors' reactions 351
9.2 International highlight: The lifeblood ofcompetitive advantage in the globalpharmaceutical industry 352
Selecting competitors to attack and avoid 353Obtaining competitive intelligence 354Leveraging capabilities 355Summary, Ethics issue, Websites, Discussion
questions, References 358
Chapter 10
International Strategies 362Introduction 364Competitive position model 364
Structural position 366Strategic position 366Market position 367Resources position 368
The dominant leader in overseas markets 368The dominant firm profile 369
Structural position and strategic position 370Market position and resources position 371
Strategies for the international dominantfirm 371
10.1 International highlight: Harvey
Norman moves into Asia, Eastern Europeand the UK 372
Offensive and defensive strategies 373Built to last 373
Strategies for international marketleadership 374
Expanding the total market 374Protecting market share 375Expanding market share 377
Strategies for the internationalchallenger 377
Defining the strategic objective andcompetitor 377
Choosing an attack strategy 378Strategies for the international follower 380Strategies for the international niche firm 382/ 0.2 International highlight: Taking
marketing to the USA 384The Asian approach to strategy 386Summary, Ethics issue, Websites,
Discussion questions, References 387
Chapter 11
Globalisation 392Introduction 394Globalisation 396
What is globalisation? 39611.1 International highlight: The Australian
diaspora 396Globalism trends 396Globalism as a philosophy 398
Motivations for globalisation 400'Glocalisation' 401Characteristics of the global firm 402Global or multinational? 403Global strategy framework 403
11.2 International highlight: Globalmarket of one—customisation by globalcompanies spreads 404
11.3 International highlight: Even thebiggest and most innovative findglobalisation challenging! 407
Basic competitive strategy profiles 409Global leader strategy 409Global challenger strategy 1 409Global challenger strategy 2 409Global follower strategy 409
INTERNATIONAL MARKETING An Asia-Pacific Perspective
Global niche strategy 1 410Global niche strategy 2 410Global collaborator strategy 410
The pitfalls of global marketing 410Globalisation from a macro perspective 412The growth of Asian competitors 415Summary, Ethics issue, Websites,
Discussion questions, References 419
Chapter 12
Relationships, Networks and StrategicAlliances 424
Introduction 42512.1 International highlight: The new
relationship marketing perspective 426Relationships and networks 427Strategic alliances 431
Theories underlying strategic alliances 431The nature of strategic alliances 431Internal drivers 432External drivers 432
12.2 International highlight: Alliances—theperfect way to add value for customers 433
Thefways strategic alliances operate 434Selecting strategic alliance partners 437
Alliance strategies for creatingcompetitive advantage 438
Market leader alliance strategies 438Alliance strategies for challengers and
followers 438Alliance strategies for niche specialists 439
Implementation and management ofstrategic alliances 440
12.3 International highlight: Clustering 441Summary, Ethics issues, Websites,
Discussion questions, References 444Case 9 Green international wine marketingMary Pugh and Richard Fletcher 449
Case 10 Getting market entry for AustralianGM-free soy into the Japanese foodmanufacturing supply chain
Les Brown 459
Case 11 Aspiring to global leadership: thebig four Australian wine companies
Catherine Welch 461
Case 12.1 Benefits of 'clustering' and nichestrategies: How SMEs in the Australianwine industry can develop a competitiveadvantage for international expansion
Susan Freeman and Dean Weinman 465
Case 12.2 Coping with governmentregulations in developing markets: thecase of Atherton International in Taiwan
Shen Yen Kuang and Richard Fletcher 471
Part D
International Marketing Implementation 474
Chapter 13
Modifying Products for Overseas Markets 476Introduction 478The product 478
What is a product? 478International product strategies 479
Product diffusion and adoption in overseasmarkets 479
Redefining the business 480Leveraging capabilities 484Understanding product market structure 485
Tailoring products to suit overseas markets 486Modifying products for overseas markets 486
13.1 International highlight: Wining over theEuropeans 486
Developing a product for an overseasmarket 489
Standardisation versus adaptation 49013.2 International highlight: Australian
business must research the way to success 491Creating a global product 493
13.3 International highlight: Born global 494Marketing industrial products overseas
Industrial products 495Unique features of industrial marketing 495Features of the international market for
industrial products 49613.4 International highlight: A James
Hardie assault 497Branding and packaging for overseas markets 498
Branding 498Packaging and labelling 502
DETAILED CONTENTS
Summary, Ethics issue, Websites, Discussionquestions, References 505
Chapter 14
Marketing Services Overseas 510Introduction 512The nature of services 513
The marketing paradigm for services 513The content of services marketing and
delivery 514Marketing services in the international
marketplace 516Drivers of internationalisation of service
firms 517Australian exports of services 518Issues in services exports 518Categorisation of services exports 520
14.1 International highlight: QBEInsurance—a global expansion strategy 523
Services and international market entry 523Services exports and cultural sensitivity 524Services marketing and the issue of
standardisation 524International tourism 525International education 525International wholesaling and retailing 526
14.2 International highlight: Westfield hopsaround 527
The marketing of Australian professionalservices overseas 528
Accounting and legal services 528Technical services 529Computer services 529Marketing and business management
services 530Summary, Ethics issue, Websites,
Discussion questions, References 531
Chapter 15
Promotion in International Marketing 536Introduction 538Communication theory 538
The communication process 538Constraints in international marketing
communication 540Factors in international communication 541
Culture 541
Language 543Education 544Economic development 544Media infrastructure 544Government regulation 546
15.1 International highlight: There's noaccounting for taste 546
Content of international communication 547The management of promotional
communication 547Decision process 548Message strategy formulation 549
Pull strategies in international promotion 550Advertising 550
15.2 International highlight: A tale of two cities 55115.3 International highlight: Advertising in
China 557Publicity and public relations 559
Push strategies in international promotion 562Sales promotion 563Personal selling 567
15.4 International highlight: Swimming ininternational waters 571
Communication in emerging markets 572Issues 573
Country of origin 573Standardisation versus differentiation 574
15.5 International highlight: How sweet it is! 576Summary, Ethics issue, Websites,
Discussion questions, References 578
Chapter 16
International Pricing for Profit 582Introduction 584International pricing issues 584
The role of price 584Reference prices 584Nature of the pricing decision 585The price element of the purchase . 585Complexities of international pricing 585Nature of the product or industry 586Location of production facilities 586Chosen system of distribution 586Culture 587Location and environment of the foreign
market 588
INTERNATIONAL MARKETING An Asia-Pacific Perspective
Competition in the overseas market 588Australian government regulations 589
International pricing strategy 589Preliminary planning 589Terms of sale 591
16.1 International highlight: Competingon value 592
Terms of payment 593International price setting 595
Full versus marginal cost pricing 596Optimal price setting 598Mismanagement of price setting 599An alternative to price setting 599Responding to price changes in
international markets 599The Japanese approach to price setting 600Pricing and foreign currency fluctuations 600
Constraints on setting prices 602Restrictive trade practices 603Administered pricing 603Dumping 604Devaluation and revaluation 605Inflation 607
Global pricing strategies 607Global versus local pricing strategies 607Transfer pricing 608
16.2 International highlight: Passing the buck 609Summary, Ethics issue, Websites,
Discussion questions, References 613
Chapter 17
Effective Distribution Overseas 616Introduction 618
Use of an export intermediary 619Direct export 619
17.1 International highlight: Exports ofJapanese trading companies 620
Exporting intellectual content 620Manufacture overseas 621Strategic alliances 623
Distribution strategies 623Cost 624Control 625Commitment 625Nature of the market 626Nature of product/service 626
Objectives of the firm 627Distribution criteria 628
Structure and availability of channels 629Cultural issues 630Government and legal constraints 630Commercial and environmental
constraints 630Managing overseas distribution 63117.2 International highlight: The elusive agent 632
Selection 632Appointment 633Communication and control 636Motivation and termination 636Wholesaling and retailing 637
Global distribution issues 642Standardisation 642Grey markets and unofficial distribution
channels 643Physical distribution 645
Customer service 645Packaging and protection 646Transportation 646
17.3 International highlight: CormoExpress—lessons learned 648
Warehousing and storage 648Documentation 649
Summary, Ethics issue, Discussionquestions, References 650
Case 13 Wine brand 'Yellow Tail'Rob van Zanten 654
Case 14.1 Key barriers for takingprofessional services (legal) intoemerging markets in Asia: the caseof Jackson's overseas office inThailand
Susan Freeman and Mark Sandwell 657
Case 14.2 Marketing of higher education:Australia's new export phenomenon(spot the Aussie in your classroom)
Terry Gatfield and John McDonnell 662
Case 15 Bananas in Pyjamas goes toHong Kong
Carol Cao, Frances Ritsinias andRichard Fletcher 667
DETAILED CONTENTS
Case 16 Proactive pricing on the InternetAl Marshall 672
Case 17.1 Poodles to JapanLes Brown 676
Case 17.2 Siam Sanitary Ware Co. Ltd—Parallel import in Vietnam
Waewrak Tontrakul and Richard Fletcher 679
PartE
Contemporary Challenges in InternationalMarketing
Chapter 18
Incorporating International TradeRelations into Overseas Marketing 686
Introduction 688Australian context 688Marketing context 690Role of government 691
Domestic 691Foreign 692Influence and government 692
Multilateral trade relations 693Purpose 693History 693Operation 693Current focus 694
18.1 International highlight: Chinaembraces the world market 696
Australian involvement 697Lobbying 698
18.2 International highlight: Cambodia'saccession to the WTO 699
Regional Trade Groupings 699Purpose 700History 700Operation 701
18.3 International highlight: What shouldAnsell do? 703
Current focus 703Australian involvement 704Lobbying 706
Bilateral trade relations 70718.4 International highlight: Toys R Us 707
PurposeOperationCurrent focusLobbyingSubsidies
Commodity agreementsManaged trade
Government interventionVoluntary restraints
Summary, Ethics issue, Websites,Discussion questions, References
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684 Chapter 19
Electronic Commerce in InternationalMarketing 720
Introduction 722Overview of electronic commerce 724
Definitions and scope 724Benefits of e-commerce 725
19.1 International highlight: E-biz bites back—travel chaos and how e-commerce is helping tostreamline the experience for consumers andwhat's next for the dot.com survivors 727
The information revolution 729User access to the World Wide Web 730The challenges and possibilities for
international or global marketing 731Electronic commerce business models for
international marketing 73319.2 International highlight: To B or not
to B: that is the question 735The Internet as a new international
marketplace 740The front runners 744
19.3 International highlight: eBay—asupermerchant model of e-commerce andinternational marketing 742
The challenge of moving from 'place' to'space' 745
19.4 International highlight: Here come thecyberbanks 747
Summary, Ethics issue, Discussionquestions, References 748
Chapter 20
Winning International Projects and Copingwith Countertrade 754
INTERNATIONAL MARKETING An Asia-Pacific Perspective
IntroductionWinning overseas projectsMarketing issues
Australia and overseas projectsBackgroundPositioningAlternative strategiesProblems areas
The project cycleParties involvedProject identificationProject preparationProject appraisalProject negotiationsProject implementationProject evaluationSuccess in obtaining work
Projects and multilateral aid agenciesAid issuesMultilateral development agencies
(MDA)Marketing tactics
Projects and bilateral aidAid issues
20.1 International highlight: GHD sealswater deal with Manila
Mixed credit facilitiesAustralian aid
Financing issues and overseas projectsCo-financingRisk identificationBuild and operate schemes
Issues in winning overseas projectsConsortia formation
Summary, Ethics issue, Websites, Discussionquestions, References
Coping with CountertradeIntroductionForces fuelling countertradeIncidence of countertradeForms of countertrade
BarterCounterpurchase
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OffsetsBuyback
20.2 International highlight: The Australiangovernment and Boeing
DebtVariant: clearing arrangementVariant: switch trading
Content of countertrade transactionsProductsRegionsSizeFormInteractive aspects
Macro perspectivePolitical and commercialLegalFinancial
Micro perspectiveAdvantages to the firmDisadvantages to the firmUses of intermediaries
Strategic considerations in internationalcountertrade
Whose advantage?Pricing strategiesProactive versus reactive
Summary, Ethics issue, Websites,Discussion questions, References
Case 18 Organic products in Japan: anissue of quality analysis
Tina Slattery and Richard Fletcher
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Case 19.1 'Wot i f there was a way tosave money on accommodation?
Raechel Hughes 803
Case 19.2 Lustythreads.comMarilyn Healy and Shane Mathews 807
Case 20 Negotiation to win internationalprojects—Cardno MBK in Indonesia
Trevor Morgan and Richard Fletcher 810
Index 815