Portada International marketing strategy

Preface ....XIX
Acknowledgements ....XXV

Part I. International marketing strategy scope and framework
1. Scope of international marketing strategy ....3
International marketing environment ....3
Market fragmentation and consolidation ....4
Trend toward global markets ....6
Causes of globalization ....8
Technology and market liberalization ....9
Firms in regional markets ....10

International marketing strategy ....11
Definitions of international marketing ....12

Generic strategic responses ....13
Developing competitive advantage ....13
Product-market development ....14
Technology, product and market decisions ....14
Resource allocation in international markets ....16

Performance and growth of the firm ....18
Improving marketing performance in the firm ....18
Strategic differentiation in the international firm ....20

Dynamics of the international firm ....21
Process model of international marketing ....24
Summary ....26
References ....26

2. Analytical framework for international marketing ....28
Theory and practice in international marketing ....28
International marketing theories ....29

Analytical frameworks based on trade and transaction costs ....30
Absolute advantage and the international firm ....30
Comparative advantage and the international firm ....30
Transactions costs in international markets ....31
Nature of the international firm ....32
Limitations of trade theory and transaction cost explanations ....33

Comparative resource advantage theory of international marketing ....33
Company resources ....34
Access to tangible resources ....34
Access to intangible resources ....36
Resource application in product markets ....37
Sources of competitive advantage ....39
Knowledge in competitive advantage ....39
Knowledge and the scale and scope of the firm ....41
Transferring knowledge-based assets in international markets ....42

Managerial theory of international marketing ....43
Marketing in the business system ....43
Orientation of the company in the business system ....44

Strategic positioning in manufacturing and marketing ....47
Managing costs and prices in international markets ....47
Positioning the firm in the international business system ....48
Product-market and business system resource allocation ....49

Summary ....51
References ....51

Part II. Environment of international marketing
3. Company resources and capabilities ....55
Characteristics of the international firm ....55
Goals and objectives of the international firm ....56
Size of the firm in international markets ....57
Firm size and scale effects ....58
Location of the firm ....59
Technology and innovation ....60
Product range in the firm ....60

Management of the international firm ....61
Attitudes and cognitive styles ....61
Management attitudes toward company growth ....61
Cognitive style of managers ....63
Aspirations, commitment and expectations of managers ....64
Managerial aspirations for internationalization ....64
Commitment to internationalization ....65
Managerial expectations and internationalization ....66
Stages of internationalization ....67
Stages model and entrepreneurial firms ....68

Summary ....69
References ....69

4. Analysis of international competitors ....71
Meaning of international competition ....71
Nature of competition among firms ....73
Establishing competitive positions in international markets ....73
Benefits of competition ....77
Determinants of competitiveness in international markets ....77
Measuring competitiveness in the firm ....78

Understanding competitors in international markets ....79
Competitor objectives, future goals and assumptions ....80
Renew of competitor strategies ....80
Competitor organization and corporate culture ....80
Size, growth and probability of competitors ....82
Evaluating competitive strengths ....82
Cost structure and mobility barriers ....83
Motives associated with unique capabilities ....83

Summary ....84
References ....85

5. Culture in international marketing ....86
Influence of culture in international marketing ....86
Pervasiveness of culture ....86
Characteristics and elements of culture ....87
Definitions of culture ....89
Cultural distance as an international marketing barrier ....90
Cultural determinants of marketing behaviour in the international firm ....91
Norms and behavioural patterns ....91
Role of values and attitudes ....93
Demographic factors ....94
Special position of languages ....95
Language homogeneity ....96
Ethnic factors ....96
Material culture, technology and the international firm ....97

Analysis of culture influence ....98
Macroanalysis of the cultural environment ....100
Cuttural variability ....100
Cultural complexity ....102
Cultural hostility ....102
Influences among cultures ....102
Cultural heterogeneity and interdependence ....103
Context of cross-cultural relationships ....104
Microanalysis of the cultural environment ....105
Role of national ideology ....106
Role of attitudes ....106
Role of innovation and diffusion ....107
Synthesis of cultural influence on buyer behaviour ....110

Summary ....111
References ....111

6. Creating competitive advantage ....113
Impact of market integration ....114
Influence on the international firm ....114
Concept of free trade ....114
Developments in industrial markets ....115
Position of developing countries ....115

Challenge of open markets ....117
Created assets in international markets ....117

Comparative advantage and competitive advantage ....118
Country and company competitiveness ....118
Labour productivity and wealth ....119

Phenomenon of emerging markets ....120
Vicious circle of poverty ....121
Relevance of marketing in developing countries ....122
Recognizing mutual dependence ....123

Industrial and commercial policy ....123
Invisible hand or direct intervention ....123
Dynamic comparative advantage ....125

Summary ....127
References ....128

7. Coping with political risk and uncertainty ....129
Political environment of international marketing ....129
Role of government ....130
Risk and uncertainty in international markets ....131
Common political risks ....133
Analysis of political environment ....134

Regulating international transfers ....135
Regulating transfers of products and services ....135
Regulating money transfers ....137
Regulating people transfers ....137
Regulating technology transfers ....138
Importance of exchange rate stability ....138

International legal framework ....139
EU laws and directives ....140
Product quality standards 141
Major world legal systems ....142
Intellectual property rights in international markets ....142
Legal aspects of marketing claims ....143

Summary ....144
References ....145

8. Profiling international product markets ....146
International market selection process ....146
Segmenting international markets ....147
Generic market segmentation ....147
Strategic country groups ....148
Cultural and geographic market segmentation ....150
Key country segmentation variables ....151
Linking market segmentation to market selection ....153

Mechanics of international market selection ....153
Opportunistic selection of international markets ....154
Systematic selection of international markets ....155
Industry market potential ....157
Company sales potential ....157
Evolution from opportunistic to systematic market selection ....158
Role of information ....159
Building an international product-market portfolio ....160

Summary ....162
References ....163

9. Vision and strategy for international markets ....164
Company vision and corporate strategy ....164
Strategic marketing process ....165
Strategic planning framework ....166
Elements of strategic planning framework ....168
Company mission ....168
Shared purpose and values ....168
Distinctive capabilities and measures of success ....169

Strategic approaches to international markets ....170
International marketing strategies ....171
Generic international marketing strategies ....171
Standardized or customized international strategies ....173
Implications of standardizing international marketing strategies ....176
International organizational processes ....177

Summary ....178
References ....178

Part III. International marketing strategy
10. The consumer products firm ....183
Consumer products and brands in international markets ....183
International product and brand decisions ....183
Consumer products in international markets ....184
Product innovation and differentiation ....185
Using new information technologies ....186
Consolidating fragmented markets ....187
Consumer products as competitive platforms ....189

Brands in international markets ....190
Characteristics of a global brand ....191
Recognizing differences and the domino effect ....192

International brand strategies ....192
Branding the competitive advantage ....192
Sustaining the brand competitive advantage ....193
Country of origin effects ....195
Building and communicating brand values ....195
Harmonizing brand strategy in different countries ....198
Product categories and brands in international markets ....199
Brand extensions in international markets ....201

Protecting the brand ....202
Obvious management traps ....202
Counterfeiting and forgeries ....203
Brands in the grey market ....203

Summary ....204
References ....205

11. The industrial products firm ....206
Industrial products firm in international markets ....207
Nature of industrial markets ....208
Markets as international networks ....209
Industrial product development in international networks ....210

Organizing for industrial buying ....211
Industrial buying process ....211

Assessing international competitive positions ....216
Segmenting industrial product markets ....216
Monitoring international market segments ....217
Developing market positions ....218

Routes to international markets ....220
Commitment to international markets ....221
Sources of international competitive advantage ....221

Selling and promoting industrial products ....222
Selling industrial products ....222
Promoting industrial products ....224

Summary ....225
References ....225

12. The services firm ....227
Services in international marketing ....227
Nature of services ....228
Growth of services in world markets ....229

Constraints on the international service firm ....230
Motivations for internationalization in the service firm ....231
Role of technology in the service firm ....231
Productivity in services ....232

International marketing of services ....232
Coping with service intangibility ....232
Personal contact in services ....234
Standardization and customization of services ....235
Scale and cultural effects ....236
Integrated international marketing strategy for services ....237

Restrictions on international marketing of services ....238
Summary ....239
References ....240

Part IV. International market entry strategies
13. Generic international market entry strategies ....243
International market entry: concept and modes ....244
Concept of market entry ....244
Foreign market entry mode ....244

Framework for international market entry ....246
Generic market entry strategies ....246
Market entry strategy and competition ....248
Linking market strategy, complexity and entry ....249

Selecting mode of international market entry ....251
Entering new international product markets ....251
Foreign market entry deacons ....252
Determining optimum entry strategies ....252
Choosing an entry mode for services ....255

Sequencing international market entry ....256
Life cycle effects on foreign market entry ....256
Strategic sequencing of market entry ....258

Summary ....260
References ....261

14. Exporting ....262
Nature of exporting ....262
Entering foreign markets through exporting ....262
Exporting and commitment to internationa1ization ....263

Determinants of export behaviour ....264
Experience and uncertainty effects ....264
Acquiring knowledge of export markets ....265

Export deacon process ....266
Behavioural and arm-specific influences ....266
Model of the export deacon process ....267
Direct export stimuli ....269
Export decision maker ....269
Size of firm and exporting activity ....270
Export marketing groups ....271

Costs of exporting ....273
Summary ....274
References ....275

15. Strategic alliances ....276
Nature of strategic alliances ....276
Basis for a strategic alliance ....277

Marketing partnership agreements ....279
Licensing in international markets ....280
Nature of international licensing ....280
Benefits of licensing ....281
Impact of flensing on cash flow ....282
Prerequisites of successful licensing ....283
The license transaction ....283
Assymetry in negotiating international licences ....284

Franchising to enter international markets ....284
Nature of franchising ....284
Advantages of franchising ....286
Disadvantages of franchising ....287

Joint ventures to enter international markets ....287
Benefits of international joint ventures ....288
Across to resources ....290
Access to markets ....290
Joint ventures and host country policies ....292
Stability of international joint ventures ....292
Conditions for joint venture success ....294

Selecting a partner for a strategic alliance ....295
Evaluation of strategic alliances ....297
Ability to cope with environmental change ....297

Summary ....299
References ....299

16. Foreign direct investment ....302
Locational advantage in international markets ....302
Nature of foreign direct investment ....303
Determinants of location for foreign direct investment ....303

Motives for foreign direct investment ....305
Managerial motives for foreign direct investment ....306
Foreign direct investment and operating efficiency ....307
Foreign direct investment and risk reduction ....308
Foreign direct investment and market development ....309
Foreign direct investment and government policy ....309

International market entry by acquisition ....310
Nature of foreign acquisitions ....311
Success factors in acquisitions ....312
Disadvantages of foreign acquisitions ....313
Sequenced international acquisitions ....314
Public policy and cross-border acquisitions ....314

Evaluation of market entry through new foreign ventures and acquisitions ....316
Comparison of acquisitions and new ventures ....316
Management view of foreign direct investment ....317

Summary ....317
References ....318

Part V. Strategic alignment and performance in international marketing
17. Channels of international distribution ....321
Nature of international channels of distribution ....322
Role of channel intermediaries ....323

Structure and function of channels of distribution ....324
Intermediates in the international channel ....326
Selecting the intermediary ....327
Obtaining intermediary commitment ....328
Trade-offs in the distribution channel ....329

Effectiveness and efficiency in international distribution channels ....331
Integrated channels for international distribution ....331
Constraints on channel design ....332
Effective international channels of distribution ....334
Channel cooperation and conflict ....335
Improving channel performance ....336

Power in international channels of distribution ....337
Channel leadership and sources of power ....337
Market interactivity, information and channel power ....338
International direct distribution ....340
Impact of information technologies on intermediates ....341
Intermediaries and the Internet ....341
Disintermediation in the international channel ....343
Direct cross-border shipments ....344

Summary ....345
References ....346

18. Pricing in international markets ....348
General influences on international pricing ....348
Technology and competition ....349
Pricing high-technology products ....350
Government policies on pricing ....350
Dumping in international markets ....350
Transfer pricing ....351

Impact of exchange rates ....351
Fluctuating exchange rates ....351
Coping with exchange rate movements ....352
Market diversification and hedging ....352
Strategic responses ....353
Export price volatility ....353
Standardized international prices ....354

Framework for pricing in international markets ....355
Cost approaches to international pricing ....355
Absorption cost-pricing ....355
Marginal cost-pricing ....356

Pricing and distribution channels ....357
Price escalation in international channels ....358
Market-based pricing in international markets ....360
Life cycle effects on international pricing ....362
Pricing at embryonic stage of international marketing ....362
Pricing at mature stage of international marketing ....364

Pricing for export competitiveness ....365

Summary ....366
References ....367

19. International marketing negotiations ....368
Selling and negotiating in international marketing ....368
Nature of international marketing exchanges ....369

International marketing negotiations ....370
Buyer-seller communications ....370
Cultural filters and ‘noise' ....371
Fields of cultural experience ....372

Culture and effective communication ....372
Impact of context on communication ....373

Selling and negotiating strategies ....374
Convergence of buying and selling ....375
Stages in the buying process ....375
Assessing the buying situation and buying roles ....375
Supplier selection and purchase ....376
Completing the purchase ....377

Stages in the selling process ....377
Customer communication and diagnosis ....377
Problem solution and completion of sale ....379

Cultural integration of negotiation and selling ....379
Negotiation and discrete exchanges ....379
Competitive negotiation style ....380
Collaborative negotiation style ....381
Bridging cultural differences in international negotiations ....382
Domain of interest in international marketing relationships ....383

Selecting the international sales team ....384
Summary ....386
References ....387

20. Assessing international marketing performance ....389
Aligning international marketing strategies ....389
Measuring marketing performance ....390
Hard and soft performance measures ....392
Choosing performance criteria ....393
Benchmarking the performance ....393

Evaluating international marketing performance ....394
Sales performance analysis ....394
Current earnings and profits ....395
Financial performance criteria ....395
Using financial controls ....396

Cash flow in international markets ....396
Timing of cash flows for international sales growth ....397
Size of firm and cash flow ....398

Strategic control in international marketing ....398
Fundamentals of marketing control ....398
Return on international marketing investment ....399

Summary ....401
References ....402

Company index ....405
Name index ....405
Subject index ....407

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