International Marketing: Text And Cases

519 Pages·2012·25.631 MB·English

by  PAUL

International
Marketing
Text and Cases
Second Edition
About the Authors
Dr Justin Paul is a faculty member at University of Washington Foster School
of Business, USA. Before this, he served as an associate professor with Nagoya
University of Commerce and Business, Japan. Having started his career as an
Shanghai, University of San Francisco and University of New South Wales, Sydney, among others.
Business Environment International Business
Management of Banking and Financial Services Export-Import Management. He has also
Services Marketing
is also on the editorial review board of three refereed journals.
Prof. Ramneek Kapoor
been actively involved with many other management institutes as visiting and adjunct
Fundamentals of Sales Management,
Consumer Behaviour, Services Marketing, Communication for Retail Professionals, and Managerial skills.
He has presented several papers in these areas in various national and international seminars. He has organised
International
Marketing
Text and Cases
Second Edition
Justin Paul
University of Washington Foster School of Business
USA
Ramneek Kapoor
Director
Kothari Group of Institutions
Indore
Tata McGraw Hill Education Private Limited
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International Marketing: Text and Cases, 2e
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P S E
REFACE TO THE ECOND DITION
The subject of international marketing is a continuously evolving one. This is the result of increasing
globalization of economy. As a result, the literature on the subject also needs to be updated from time to time,
so that it remains relevant for those interested in studying it.
The second edition of International Marketing: Text and Cases is an effort in the direction of discussing
the developments in this field since the publication of the first edition of the book. It has also been developed
keeping in mind the feedback received from the users of the first edition. The book has been enriched with
several new chapters and cases and even the pedagogy of the book has been improvised to increase its utility
for the students and teachers of the subject alike.
We express our deep gratitude to the Tata McGraw-Hill team – particularly Mr. Tapas K Maji and
Mr.Hemant K Jha – for their continuous support in completing the work on this project.
The first edition of the book was well received by the readers and we are hopeful of even better acceptance
for this new edition. We thank all the readers and reviewers for their valuable comments and suggestions for
improvement in the book and also hope to continue receiving them.
ACKNOWLEDGEMENTS
I would like to thank Prof Douglas (Mac) (University of Washington Foster school of Business) and Hiroshi
Kurimoto (President, Nagoya University of Commerce & Business, Japan) for their constant support. My
humble gratitude to Prof. Praful Agnihotri (Indian Institute of Management, Calcutta), Prof. Jatin Pancholi
(Middlesex University), Mr. Yatinder Agrohoi, Mr. Sudarshana Reddy and Mr. Pradeep T K (Indian Institute
of Management, Indore) for their help.
Justin Paul
I am grateful to my parents for all their blessings from the heavens above. I would like to thank my wife,
Alka, daughter Neha and son Ankit who have always been very supportive in all my endeavors. I am also
grateful to all those faculty members who have used the book and sent their recommendations for a revised
and enlarged edition. Lastly, I must express my gratitude to the entire editorial and support staff at Tata
McGraw-Hill for their whole hearted cooperation, guidance and support in all my publications.
Ramneek Kapoor
P F E
REFACE TO THE IRST DITION
International Marketing became an important area of specialisation in the 1990s. With the kind
of interest this subject was attracting, a well written textbook, comprehensively covering all the
aspects of international marketing was required. We have tried to fulfill this requirement through
International Marketing: Text and Cases. This book is unique in terms of pedagogical features,
templates that integrate topics such as business environmental factors into marketing functions in
the global context.
Although this text undoubtedly has more case studies and examples from India, Sri Lanka,
Middle East, Japan, efforts have been made to give equal treatment to all regions and countries, so
that it proves to be useful to everyone across all borders.
This book is distinguished by the unique approach that it takes while dealing with the subject.
While the usual approach is to treat international marketing as a series of loosely related topics, in
this book the topics revolve around international marketing functions, channels and practices. We
have included boxed exhibits and figures across the chapters. The case studies are written from real
life perspectives. These have been included at the end of important chapters as well as at the end
of the book.
There is also a companion website of this book which has instructor resources containing
powerpoint slides.
With the process of globalisation gathering momentum, understanding the world and international
marketing has become an imperative for survival and success for all the companies in all nations.
The case studies included in this book are written not to indicate effective or ineffective handling
of situation by the management, but for academic use in classrooms. The responsibility for any
errors is ultimately ours.
We express our deep gratitude to the McGraw-Hill team—Mr Biju Kumar, Mr Tapas Maji, Ms
Anubha Srivastava, Ms Medha Arora and Ms N K Deepa for their help in completing this book.
Please send your comments and suggestions at [email protected], mail@drjustinpaul.
com and [email protected].
vii
Preface to the First Edition
Acknowledgements
I would like to thank my parents Mr P V Poulose and Mrs Annie Poulose, wife Dr. Festi and
brother Santosh for their constant support. My humble gratitude to Dr S P Parashar (Director,
Indian Institute of Management, Indore), Prof. Praful Agnihotri (Indian Institute of Management,
Calcutta), Prof. Omprakash Gupta (Prieri View A&M University, USA), Prof. Jatin Pancholi
(Middlesex University), Mr Yatinder Agrohoi, Mr Sudarshana Reddy and Mr Pradeep T K (Indian
Institute of Management, Indore) for their help.
J P
USTIN AUL
I am grateful to my parents for all their blessings from the heavens above. I would like to thank
my wife, Alka, daughter Neha and son Ankit who have always been very supportive in all my
endeavours. I am also grateful to Mr Rummy Chhabra, Mr Surinder Khullar, and Mr Jal B Khodaiji
for their support and encouragement from time to time.
R K
AMNEEK APOOR
viii
Contents
B C
RIEF ONTENTS
Preface to the Second Edition v
Preface to the First Edition vi
1. Concept and Process of International Marketing 1
2. WTO and Its Impact on International Marketing 21
3. Emerging Trends and Internationalisation of Firms 35
4. Country Analysis, Selection, Market Size and Marketing Mix 69
5. International Marketing: Opportunity Analysis 93
6. Cultural Factors and Environment 127
7. Political Factors and Environment 157
8. Legal Aspects and International Marketing 181
9. Market Entry Modes, Framework, Structure and Strategies 195
10. Market Entry Modes—JV, M&A, Strategic Alliance and Subsidiaries 213
11. International Product Policy, Planning and Strategy 229
12. Pricing Strategy and Decision for International Marketing 277
13. International Distribution, Marketing Channels, Logistics and
Supply Chain Management 305
14. Product Promotion Advertising and Building Brands in Foreign Markets 329
15. Personal Selling and Multinational Sales Management 346
16. Decision-Making for International Markets 360
17. Communication and Negotiation for International Markets 375
18. Export Documentation and Procedures 388
19. Incoterms for Export Marketing 421
20. International e-Tailing 436
21. Global Issues: The Internet and E-Commerce 459
22. Organising and Doing Business with Other Countries 473
Appendix: Promotion of International Trade in India 491
Index 501
ix
Contents
C
ONTENTS
Preface to the Second Edition v
Preface to the First Edition vi
Brief Contents viii
1. Concept and Process of International Marketing 1
Introduction 1
Definition of International Marketing 4
A Comparison of Domestic Marketing with International Marketing 4
Challenges Firms Face in International Marketing 5
Stages of International Marketing 6
International Marketing Orientation 8
Motivating Factors of International Marketing 9
Points to Remember 15
Objective Type Questions 15
Review Questions 17
Project Assignments 17
Suggested Readings 17
2. WTO and Its Impact on International Marketing 21
Introduction 21
WTO and Globalisation: Issues 22
The Marketing Scenario 23
Other Factors 29
Points to Remember 30
Objective Type Questions 31
Review Questions 31
Project Assignments 32
Suggested Readings 32
3. Emerging Trends and Internationalisation of Firms 35
Internationalisation—Reasons and Strategies 35
Ranbaxy Laboratories—Internationalisation Strategies 36
Dr. Reddy’s Laboratories: Going Global and Growing Multinational 39
x
Contents
Aurobindo Pharma’s International Expansion Strategies 42
Points to Remember 44
Objective Type Questions 45
Review Questions 45
Project Assignments 45
Suggested Readings 46
4. Country Analysis, Selection, Market Size and Marketing Mix 69
Introduction 69
Country Evaluation and Selection 69
Country Risk Analysis 70
Market Research and Consumer Behaviour 71
International Marketing Mix 74
Points to Remember 82
Objective Type Questions 82
Review Questions 83
Project Assignments 83
Suggested Readings 84
5. International Marketing: Opportunity Analysis 93
Introduction 93
Why do firms conduct international marketing research? 94
International Marketing Research 96
Conducting Formal Marketing Research 101
Assessing International Market Size and Sales Potential 114
Managing International Marketing Research Globally 118
Points to Remember 120
Objective Type Questions 121
Review Questions 122
Project Assignment 123
Suggested Readings 123
6. Cultural Factors and Environment 127
Introduction 128
Defining Culture 129
Correlates of Culture 130
Elements of Culture 131
The Nation as a Culture 133
Language as an Element of Culture 139
Religion as an Element of Culture 141
Cultural Dynamics 144
Points to Remember 148