International Marketing, 18th Edition
By Philip R. Cateora, R. Bruce Money, Mary C. Gilly, John L. Graham
Contents:
PART ONE
AN OVERVIEW
1 The Scope and Challenge of
International Marketing 2
The Internationalization of U.S. Business 7
International Marketing Defined 10
The International Marketing Task 11
Marketing Decision Factors 11
Aspects of the Domestic
Environment 12
Aspects of the Foreign
Environment 13
Environmental Adaptation
Needed 15
The Self-Reference Criterion and Ethnocentrism: Major Obstacles 16
Developing a Global Awareness 19
Stages of International Marketing
Involvement 20
No Direct Foreign Marketing 21
Infrequent Foreign
Marketing 21
Regular Foreign Marketing 21
International Marketing 22
Global Marketing 22
The Orientation of International Marketing 24
2 The Dynamic Environment of
International Trade 28
The Twentieth to the Twenty-First
Century 31
World Trade and U.S.
Multinationals 32
Beyond the First Decade of the
Twenty-First Century 34
Balance of Payments 35
Protectionism 37
Protection Logic and Illogic 37
Trade Barriers 39
Easing Trade Restrictions 44
The Omnibus Trade
and Competitiveness Act 45
General Agreement on Tariffs and Trade 46
World Trade Organization 47
Skirting the Spirit of GATT and WTO 49
The International Monetary Fund
and World Bank Group 49
Protests against Global
Institutions 50
PART TWO
THE CULTURAL
ENVIRONMENT OF
GLOBAL MARKETS
3 History and Geography: The
Foundations of Culture 54
Historical Perspective in Global
Business 56
History and Contemporary
Behavior 56
History Is Subjective 58
Manifest Destiny and the Monroe
Doctrine 60
Geography and Global Markets 64
Climate and Topography 64
Geography, Nature, and
Economic Growth 67
Social Responsibility
and Environmental
Management 69
Resources 73
Dynamics of Global Population
Trends 76
Controlling Population
Growth 76
Rural/Urban Migration 77
Population Decline and
Aging 78
Worker Shortage and
Immigration 79
World Trade Routes 80
Communication Links 82
4 Cultural Dynamics
in Assessing Global
Markets 94
Culture’s Pervasive Impact 96
Definitions and Origins
of Culture 102
Geography 103
History 104
The Political Economy 105
Technology 105
Social Institutions 105
Elements of Culture 110
Cultural Values 110
Rituals 113
Symbols 115
Beliefs 119
Thought Processes 121
Cultural Sensitivity and
Tolerance 121
Cultural Change 122
Cultural Borrowing 122
Similarities: An Illusion 123
Resistance to Change 124
Planned and Unplanned Cultural
Change 125
5 Culture, Management Style,
and Business Systems 128
Required Adaptation 130
Degree of Adaptation 131
Imperatives, Electives, and
Exclusives 131
The Impact of American Culture on
Management Style 133
Management Styles around the
World 136
Authority and Decision
Making 136
Management Objectives and
Aspirations 138
Communication Styles 140
Formality and Tempo 143
P-Time versus M-Time 144
Negotiations Emphasis 145
Gender Bias in International
Business 146
Business Ethics 151
Corruption Defined 151
The Western Focus
on Bribery 153
Bribery: Variations on a
Theme 156
Ethical and Socially Responsible
Decisions 157
Culture’s Influence on Strategic
Thinking 160
Synthesis: Relationship-Oriented
Information-Oriented
Cultures 162
6 The Political Environment:
A Critical Concern 168
The Sovereignty of Nations 170
Stability of Government
Policies 172
Forms of Government 173
Political Parties 174
Nationalism 175
Targeted Fear and/or
Animosity 176
Trade Disputes 177
Political Risks of Global
Business 177
Confiscation, Expropriation, and
Domestication 177
Economic Risks 178
Political Sanctions 179
Political and Social Activists
and Nongovernmental
Organizations 180
Violence, Terrorism, and
War 184
Cyberterrorism and
Cybercrime 187
Assessing Political
Vulnerability 188
Politically Sensitive Products and
Issues 188
Forecasting Political Risk 189
Lessening Political
Vulnerability 190
Joint Ventures 191
Expanding the Investment
Base 191
Licensing/Franchising 191
Planned Domestication 191
Political Bargaining 192
Political Payoffs 192
Government Encouragement 193
7 The International Legal
Environment: Playing
by the Rules 196
Bases for Legal Systems 198
Common vs. Code Law 199
Islamic Law 200
Marxist–Socialist Tenets 201
Jurisdiction in International Legal
Disputes 202
International Dispute
Resolution 202
Conciliation 203
Arbitration 203
Litigation 205
Protection of Intellectual
Property Rights: A Special
Problem 206
Counterfeiting and Piracy 206
Inadequate Protection 208
Prior Use versus
Registration 209
International Conventions 209
Other Managerial Approaches
to Protecting Intellectual
Property 210
Cyberlaw: Unresolved Issues 213
Domain Names and
Cybersquatters 214
Taxes 215
Jurisdiction of Disputes and
Validity of Contracts 215
Commercial Law within
Countries 216
Marketing Laws 216
Green Marketing
Legislation 220
Foreign Countries’ Antitrust
Laws 221
U.S. Laws Apply in Host
Countries 221
Foreign Corrupt Practices
Act 222
U.S. Antitrust Laws That Apply
in Foreign Markets 223
Antiboycott Law 223
Extraterritoriality of U.S.
Laws 224
Export Restrictions 225
National Security Laws 225
Determining Export
Requirements 226
ELAIN, STELA, ERIC, and
SNAP 227
PART THREE
ASSESSING GLOBAL
MARKET OPPORTUNITIES
8 Developing a Global
Vision through Marketing
Research 230
Breadth and Scope of International
Marketing Research 233
The Research Process 234
Defining the Problem and
Establishing Research
Objectives 234
Problems of Availability and Use of
Secondary Data 235
Availability of Data 236
Reliability of Data 237
Comparability of Data 237
Validating Secondary Data 238
Gathering Primary Data:
Quantitative and Qualitative
Research 239
Problems of Gathering Primary
Data 241
Ability to Communicate
Opinions 241
Willingness to Respond 242
Sampling in Field Surveys 244
Language and
Comprehension 245
Multicultural Research: A Special
Problem 247
Research on the Internet: A
Growing Opportunity 248
Estimating Market Demand 250
Expert Opinion 251
Analogy 251
Problems in Analyzing and
Interpreting Research
Information 253
Responsibility for Conducting
Marketing Research 254
Communicating with Decision
Makers 256
Appendix: Sources of Secondary
Data 258
Websites for International
Marketing 259
U.S. Government Sources 259
Other Sources 260
9 Economic Development and
the Americas 262
Marketing and Economic
Development 264
Stages of Economic
Development 266
Economic Growth Factors 267
Information Technology, the
Internet, and Economic
Development 268
Objectives of Developing
Countries 269
Infrastructure and
Development 269
Marketing’s Contributions 270
Marketing in a Developing
Country 272
Level of Market
Development 272
Demand in Developing
Countries 274
Big Emerging Markets
(BEMs) 277
The Americas 278
North American Free Trade
Agreement (NAFTA) 278
Dominican Republic–
Central American
Free Trade Agreement
(DR-CAFTA) 282
Southern Cone Free Trade Area
(Mercosur) 284
Latin American Progress 284
Latin American Economic
Cooperation 285
NAFTA to FTAA or
SAFTA? 286
Strategic Implications for
Marketing 286
10 Europe, Africa, and the
Middle East 290
La Raison d’Etre 293
Economic Factors 293
Political Factors 294
Geographic and Temporal
Proximity 294
Cultural Factors 294
Patterns of Multinational
Cooperation 294
Global Markets and Multinational
Market Groups 296
Europe 296
European Integration 296
European Union 300
Eastern Europe and the Baltic
States 302
The Commonwealth of
Independent States 303
Africa 305
Middle East/North Africa
(MENA) 308
Implications of Market
Integration 311
Strategic Implications 311
Market Metrics 312
Marketing Mix
Implications 313
11 The Asia Pacific Region 316
Dynamic Growth in the Asia Pacific
Region 318
The Greater China 318
Japan 323
India 326
The Four “Asian Tigers” 328
Vietnam 328
Bottom-of-the-Pyramid Markets
(BOPMs) 330
Market Metrics 331
Asia Pacific Trade
Associations 333
Association of Southeast Asian
Nations (ASEAN) and
ASEAN+3 333
Asia-Pacific Economic
Cooperation (APEC) 335
A Focus on Diversity within
China 335
Northeast China: Longtime
Industrial Heartland 337
Beijing–Tianjin 339
Shanghai and the Yangtze River
Delta 340
Pearl River Delta 341
The Other Billion 341
Differences in Business
Negotiation Styles within
The Greater China 342
Marketing Opportunities in The
Greater China 343
PART FOUR
DEVELOPING GLOBAL
MARKETING STRATEGIES
12 Global Marketing
Management: Planning and
Organization 346
Global Marketing
Management 349
The Nestle Way: Evolution,
not Revolution 351
Benefits of Global
Marketing 352
Planning for Global Markets 354
Company Objectives and
Resources 355
International Commitment 355
The Planning Process 356
Alternative Market-Entry
Strategies 361
Exporting 362
Contractual Agreements 363
Strategic International
Alliances 366
Direct Foreign Investment 370
Organizing for Global
Competition 371
Locus of Decision 373
Centralized versus Decentralized
Organizations 374
13 Products and Services for
Consumers 376
Quality 378
Quality Defined 379
Maintaining Quality 380
Physical or Mandatory
Requirements and
Adaptation 381
Green Marketing and Product
Development 383
Products and Culture 384
Innovative Products and
Adaptation 390
Diffusion of Innovations 391
Production of Innovations 394
Analyzing Product Components for
Adaptation 397
Core Component 398
Packaging Component 399
Support Services
Component 400
Marketing Consumer Services
Globally 402
Services Opportunities in Global
Markets 403
Barriers to Entering Global
Markets for Consumer
Services 405
Brands in International
Markets 407
Global Brands 409
National Brands 410
Country-of-Origin Effect and
Global Brands 411
Private Brands 415
14 Products and Services for
Businesses 418
Demand in Global Business-to-
Business (B2B) Markets 421
The Volatility of Industrial
Demand 422
Stages of Economic
Development 425
Technology and Market
Demand 428
Quality and Global Standards 430
Quality is Defined by the
Buyer 430
ISO 9000 Certification: An
International Standard of
Quality 433
Business Services 435
After-Sale Services 435
Other Business Services 437
Trade Shows: A Crucial Part
of Business-to-Business
Marketing 438
Relationship Marketing in Businessto-
Business Contexts 441
15 International Marketing
Channels 448
Channel-of-Distribution
Structures 450
Import-Oriented Distribution
Structure 450
Japanese Distribution
Structure 451
Trends: From Traditional
to Modern Channel
Structures 453
Distribution Patterns 456
Retail Patterns 456
Alternative Middleman Choices 459
Home-Country Middlemen 460
Foreign-Country
Middlemen 463
Government-Affiliated
Middlemen 464
Factors Affecting Choice of
Channels 464
Cost 465
Capital Requirements 465
Control 465
Coverage 465
Character 466
Continuity 466
Channel Management 467
Locating Middlemen 468
Selecting Middlemen 468
Motivating Middlemen 469
Controlling Middlemen 469
Terminating Middlemen 470
The Internet 470
Logistics 479
16 Integrated Marketing
Communications
and International
Advertising 484
Sales Promotions in International
Markets 486
International Public Relations 488
International Advertising 491
Advertising Strategy and
Goals 497
Product Attribute and Benefit
Segmentation 498
Regional Segmentation 499
The Message: Creative
Challenges 502
Global Advertising and
the Communications
Process 502
Legal Constraints 506
Linguistic Limitations 508
Cultural Diversity 510
Media Limitations 511
Production and Cost
Limitations 511
Media Planning and Analysis 511
Tactical Considerations 512
Campaign Execution and
Advertising Agencies 526
International Control of Advertising:
Broader Issues 528
17 Personal Selling and Sales
Management 532
Designing the Sales Force 534
Recruiting Marketing and Sales
Personnel 536
Expatriates 536
Virtual Expatriates 537
Local Nationals 538
Third-Country Nationals 540
Host-Country Restrictions 541
Selecting Sales and Marketing
Personnel 541
Training for International
Marketing 546
Motivating Sales Personnel 547
Designing Compensation
Systems 548
For Expatriates 548
For a Global Sales Force 549
Evaluating and Controlling Sales
Representatives 551
Preparing U.S. Personnel for Foreign
Assignments 552
Overcoming Reluctance
to Accept a Foreign
Assignment 552
Reducing the Rate of Early
Returns 553
Successful Expatriate
Repatriation 554
Developing Cultural
Awareness 556
The Changing Profile of the Global
Manager 557
Foreign-Language Skills 559
18 Pricing for International
Markets 562
Pricing Policy 565
Pricing Objectives 566
Parallel Imports 568
Approaches to International
Pricing 570
Full-Cost versus Variable-Cost
Pricing 570
Skimming versus Penetration
Pricing 571
Price Escalation 573
Costs of Exporting 573
Taxes, Tariffs, and Administrative
Costs 574
Inflation 574
Deflation 575
Exchange Rate
Fluctuations 575
Varying Currency Values 576
Middleman and Transportation
Costs 578
Sample Effects of Price
Escalation 578
Approaches to Reducing Price
Escalation 579
Lowering Cost of Goods 579
Lowering Tariffs 580
Lowering Distribution
Costs 581
Using Foreign Trade Zones 581
Dumping 582
Leasing in International
Markets 583
Countertrade as a Pricing Tool 584
Problems of
Countertrading 585
The Internet and
Countertrading 585
Price Quotations 586
Administered Pricing 587
Cartels 587
Government-Influenced
Pricing 590
Getting Paid: Foreign Commercial
Payments 590
Letters of Credit 591
Bills of Exchange 593
Cash in Advance 593
Open Accounts 593
Forfaiting 593
PART FIVE
IMPLEMENTING GLOBAL
MARKETING STRATEGIES
19 Inventive Negotiations with International
Customers, Partners, and Regulators 596
The Dangers of Stereotypes 599
The Pervasive Impact of Culture on Negotiation
Behavior 600
Differences in Language and Nonverbal Behaviors 601
Differences in Values 606
Differences in Thinking and Decision-Making
Processes 609
Implications for Managers and Negotiators 610
Negotiation Teams 610
Negotiation Preliminaries 612
At the Negotiation Table 615
After Negotiations 620
Inventive International Negotiations 621
Conclusions 623
PART SIX
SUPPLEMENTARY MATERIAL THE COUNTRY NOTEBOOK—A
Guide for Developing a
Marketing Plan 625
CASES
Cases can be found in SmartBook or the Instructor Resources within Connect
An Overview
1-1 Starbucks—Going Global Fast
1-2 Nestlé: The Infant Formula Controversy
1-3 Coke and Pepsi Learn to Compete in India
1-4 Marketing Microwave Ovens to a
New Market Segment
1-5 Living in a Box . . . The Way of the Future?
The Cultural Environment of Global Marketing
2-1 The Not-So-Wonderful World of
EuroDisney—to Paris, Hong Kong,
Shanghai, and Beyond
2-2 Cultural Norms, Fair & Lovely,
and Advertising
2-3 Starnes-Brenner Machine Tool
Company: To Bribe or Not to Bribe?
2-4 Ethics and Airbus
2-5 Coping with Corruption
2-6 When International Buyers and
Sellers Disagree
2-7 McDonald’s and Obesity
2-8 Ultrasound Machines, India,
China, and a Skewed Sex Ratio
2-9 Counterfeit Mobile Phones in
Southeast Asia
Assessing Global Market Opportunities
3-1 International Marketing Research
at the Mayo Clinic
3-2 Swifter, Higher, Stronger, Dearer
3-3 Marketing to the Bottom of the Pyramid
3-4 Continued Growth for Zara and Inditex
3-5 A Sea Launch Recovery?
3-6 Club Med and the International Consumer
3-7 Gillette: The 11-Cent Razor, India,
and Reverse Innovation
Developing Global Marketing Strategies
4-1 Tambrands—Overcoming Cultural Resistance
4-2 Futuram’s Risk Management Strategy
4-3 Sales Negotiations Abroad for
MRI Systems
4-4 National Office Machines—
Motivating Japanese Salespeople:
Straight Salary or Commission?
4-5 AIDS, Condoms, and Carnival
4-6 Making Socially Responsible and
Ethical Marketing Decisions:
Selling Tobacco to Third World Countries
4-7 The Obstacles to Introducing a
New Product into a New Market
4-8 Mary Kay in India
4-9 Noland Stores Cleans Up Its Act
Glossary 634
Name Index 642
Subject Index 657