AN ASIA-PACIFIC PERSPECTIVE - GBV · 2008. 6. 12. · INTERNATIONAL MARKETING An Asia-Pacific Perspective Summary, Ethics issue, Websites, Discussion questions, References 249 Chapter

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


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


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

332

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,


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


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,


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


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,


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,


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


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,


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


708708711712713713714714715

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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


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


Case 18 Organic products in Japan: anissue of quality analysis

Tina Slattery and Richard Fletcher

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792792792792

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798

773

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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

Documents

AN ASIA-PACIFIC PERSPECTIVE - GBV · 2008. 6. 12. · INTERNATIONAL MARKETING An Asia-Pacific Perspective Summary, Ethics issue, Websites, Discussion questions, References 249 Chapter