International Marketing and Export Management At Pearson, we have a simple mission: to help people make more of their lives through learning We combine innovative learning technology with trusted content and educational expertise to provide engaging and effective learning experiences that serve people wherever and whenever they are learning From classroom to boardroom, our curriculum materials, digital learning tools and testing programmes help to educate millions of people worldwide - more than any other private enterprise Every day our work helps learning flourish, and wherever learning flourishes, so people To learn more please visit us at www.pearson.com/uk Eighth Edition International Marketing and Export Management Gerald Albaum University of New Mexico, USA Edwin Duerr San Francisco State University, USA Alexander Josiassen Copenhagen Business School, Denmark PEARSON EDUCATION LIMITED Edinburgh Gate Harlow CM20 2JE United Kingdom Tel: +44 (0)1279 623623 Web: www.pearson.com/uk First published 1989 (print) Second edition published 1994 (print) Third edition published 1998 (print) Fourth edition published 2002 (print) Fifth edition published 2005 (print) Sixth edition published 2008 (print and electronic) Seventh edition published 2011 (print and electronic) Eighth edition published 2016 (print and electronic) © Addison-Wesley Publishers Limited 1989, 1994 (print) © Gerald Albaum, Edwin Duerr and Jesper Strandskov 1998 (print) © Gerald Albaum, Edwin Duerr and Jesper Strandskov 2008, 2011 (print and electronic) © Gerald Albaum, Edwin Duerr and Alexander Josiassen, 2016 (print and electronic) The rights of Gerald Albaum, Edwin Duerr and Alexander Josiassen to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 The print publication is protected by copyright Prior to any prohibited reproduction, storage in a retrieval system, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise, permission should be obtained from the publisher or, where applicable, a licence permitting restricted copying in the United Kingdom should be obtained from the Copyright Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN The ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed, leased, licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the terms and conditions under which it was purchased, or as strictly permitted by applicable copyright law Any unauthorised distribution or use of this text may be a direct infringement of the authors’ and the publisher’s rights and those responsible may be liable in law accordingly All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners Pearson Education is not responsible for the content of third-party internet sites ISBN: 978-1-292-01692-4 (print) 978-1-292-01695-5 (PDF) British Library Cataloguing-in-Publication Data A catalogue record for the print edition is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Albaum, Gerald S., author | Duerr, Edwin, author | Josiassen, Alexander, author Title: International marketing and export management / Gerald Albaum, University of New Mexico, USA, Edwin Duerr, San Francisco State University, USA, Alexander Josiassen, Copenhagen Business School, Denmark Description: Eighth edition | Harlow, United Kingdom : Pearson, 2016 Identifiers: LCCN 2016003305 (print) | LCCN 2016004039 (ebook) | ISBN 9781292016924 | ISBN 9781292016955 (PDF) Subjects: LCSH: Export marketing—Management Classification: LCC HF1416 I617 2016 (print) | LCC HF1416 (ebook) | DDC 658.8/4—dc23 LC record available at http://lccn.loc.gov/2016003305 10 9 8 7 6 5 4 3 2 1 20 19 18 17 16 Print edition typeset in 9.5/12.5 Charter ITC Std Regular by Lumina Datamatics Printed in Malaysia NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION Dedication To my wife, Carol, whose support and encouragement have sustained me in my continuing research and through eight editions of International Marketing and Export Management Gerald Albaum To Mitsuko Saito Duerr, my wife and companion in life in teaching, consulting, writing and international adventures Edwin Duerr To my wonderful daughters, Anastasia and Freya Alexander Josiassen This page intentionally left blank Brief contents Preface About the authors List of abbreviations Publisher’s acknowledgements International marketing and exporting Bases of international marketing xv xix xx xxiv 72 The international environment: culture, economic forces, and competition 127 The international environment: government, political, and legal forces 162 Market selection: definition and strategies 194 Information for international marketing decisions 243 Market entry strategies 271 In depth with entry modes 305 Nonexport entry modes 358 10 Product decisions 407 11 Pricing decisions 483 12 Financing and methods of payment 534 13 Promotion and marketing communication 562 14 Supply chain management and handling export orders 624 Glossary Index 676 693 vii This page intentionally left blank Contents Preface About the authors List of abbreviations Publisher’s acknowledgements International marketing and exporting Introduction Five reasons why rapid growth in international business will continue to be the norm rather than the exception Increasing competitive demands on business worldwide Problems and needs Being effective: the nature and practice of international marketing Export marketing planning and strategy The impact of technology Entrepreneurial approaches to international marketing The growth of non-traditional exports Purpose and approach of the book Appendix: The worldwide recession and recovery of 2007–2016 Questions for discussion References Further reading Case study 1.1 Voice4u Case study 1.2 New United Motors Manufacturing Inc Case study 1.3 Export of art goods from Hungary Case study 1.4 eBay, Inc Case study 1.5 Dell, Inc Bases of international marketing Introduction Potential benefits from export marketing International trade theories Export behavior theories and motives The development of export in the firm: internationalization stages Exporting and the network model Ethical/moral issues Social responsibility and the business environment Summary Questions for discussion References Further reading Case study 2.1 BP xv xix xx xxiv 11 14 17 28 35 38 41 46 47 48 49 52 53 53 63 64 67 72 72 73 76 84 92 94 97 102 111 111 112 114 115 ix www.downloadslide.net Index foreign branch operations 361 foreign catalogs 574–5 purposes of 574 foreign direct investment (FDI) 74, 361 foreign investment in China 7–10 in India 10–11 foreign markets, entering 28–9 foreign opportunities in export behavior 88 foreign representative agreement, 334 foreign sales subsidiary 327–8 Foreign Tire Sales (FTS) 333 Forlani, D 279 forwarders bills of lading 660 Foster, M 121 foul bills of lading 660 Fowler, G A 21 Foxconn franchising 333, 361, 382–3 Franzak, F J 455 Free alongside (FAS) 518 free areas 648–50 Free on Board (FOB) 516 free perimeter 177, 650 free port 177, 650 free trade 82–3 free trade zone 177, 180, 297 freight forwarders 646–7 Friedman, T 12, 67 Fritzsche, D J 101 Fryxell, G E 446 Fuji film 444, 500 full costs 491 full demand 33 fun seekers consumer segment 205 functional export departments see built-in export department; separate export department Gabrielsson, M 395 Galante, J 64 Gapper, J 501 Garnham, P 512 Garnier, J -P 123 Geigy 410 Geitner, P 509 Gelsanliter, D 55 gender in marketing research 251 General Agreement on Tariffs and Trade (GATT) 163 General Electric 9, 75, 501 general instability risk 365 General Mills Inc 38 General Motors 38, 95, 133, 410 in Brazil 377 case studies 53–63, 472–3 in countertrade 541 joint venture with Toyota 392, 640 promotion blunders 571 generic trademarks 450–1 Ger, Marcel 400 Gerber Products Company 383, 454 Germany Dell Inc in 69–70 export leaders 307–8 Hamburg container terminal 631 Gesteland, R R 143, 566 GG Farm machinery Company (case study) 400 Ghemawat, P 209 Ghose, T K 538 Ghoshal, S 417 Ghosn, Carlos 133 Glaister, K W 379 GlaxoSmithKline 523, 635 and prescription drug pricing 122–6 global customer relationship management 248 Global Ecolabelling Network 445 global factors in internationalization of trade 17 global-for-global innovation process 418 global outsourcing 456 global positioning system (GPS) 36, 641 global product strategy 440 globalisation 91 Godiva Chocolate 456 Gogoi, P 21 Goldstar 394 Gong, W 199 Google Gornisson, H 270 Gottschalk, Maria 473 government, role of 163–79 controls 163–71 exchange controls 170–1 license requirements 168 qualitative controls 170 quantitative controls 170 quotas 169–70 tariffs 168–9 taxation 170 export facilitating activities 175, 177 financial activities 173–4 information services 174–5 integration see economic integration political-legal constraints 165 promotional activities 171–8 by private organizations 178 state trading 171, 178–9 GPU, Inc 370 701 www.downloadslide.net Index gravity policy with intermediaries 294 gray market exporting 338–41, 508 Green, H 95 Green, M 441 Green, M S 144, 261, 378 Green, R T 200 green marketing 445 Greene, J 318–19 greenfield investment 362 Gregory, G 281–2 Grewel, D 427 Griffith, D A 129, 134, 199, 445 Grow, B 104, 593 growth effect in economic integration 182 guanxi 129, 133, 293 Gugler, P 379 Guha, K 11, 83 Hack, T 422 Haley, G T 293 Hall, D 416 Hall, E T 134, 140 Hall, K 415, 433 Hallen, L 208 halo model of origin images 457 Hambrecht, Jurgen Hamm, S 43, 388–9 Hammervoll, T 200 Hangzhou Zhangce Rubber Company 333 Harding, R 121 Harrell, G D 227–8 Harris, G 123 harvest/divest/license/combine countries 229 Harzing, A -W 209, 250, 252, 455–6 Hatcher, M 115 Hätönen, J 389 Hau, L N 391 Hayashi, Y 110 Haybyrne, J 149 Hayward, Tony 116–19 health appeal in advertising 603 hedging 514–15 Heineken NV 369–70, 453, 569–70, 591 Helgason, G Helly Hansen 442–4 Helm, B 44 Hendry, J 106, 108 Hennequin, Dennis 21 Hennes & Mauritz 386 Herbst, M 388–9 Herche, J 134, 372, 459 Herfindahl index 219 Heritage Foundation 386 702 Hewlett-Packard 10, 23, 41, 501, 635 ethical issues 110 marketing research 247 high-income economies 144 Hille, K Hilton Hotel system 389 Hoecklin, L 134, 149 Hof, R 56, 65–6, 589 Hofstede, G 134, 139, 208, 274 Holahan, C 589 Hollensen, S 244, 247, 258, 572–3 Holmberg, S R 379 Holstein, W J 131 Homan, T Hon Hai Precision Instrument Co 374 Hønacker, W 270 Honda 10, 38, 523, 588 Hong Kong market segmentation in 201–2 as Special Administrative Region 312 Hong Kong Trade Development Council 167, 452 Honomichl, J., 245 Hook, L 7, 119 Horng, C 385 Hornik, J 600 house organs 576 Hoyos, C HSBC 14 Human Development Index 146–7 Hungary: art exports from 63–4 Hunt, S D 96 Hurd, Mark 110 Hymer, S 278 Hyundai Motors 132, 414 case study 472–3 IBM 41, 43, 95, 378 Ihlwan, M 411, 416 IKEA 3, 44, 131, 371, 393 case study 234–6 image research 252, 256–7 Immelt, Jeffrey imperfect competition 500 imports, effects of 73–4 income elasticity measurements 499 INCOTERMS 2010 515, 628 indent order 628 India acquisitions in 370 countertrade in 539 exports in knowledge industry 41–3 foreign investment in 11 information technology in 10–11 www.downloadslide.net Index international economy 10–11, 148 ISO 9000 in 422 indirect export 280, 306–21 cooperative organizations 318–21 exporting combinations 320–1 piggyback marketing 318–20 home-country based agents 313–17 broker 315 confirming house 313–14 export commission house 313 export management company 315–16 manufacturer’s export agent 316–17 resident buyer 314 home-country based merchants 309–13 export desk jobber 312–13 export merchants 309 trading company 309–12 marketing organizations 309 evaluation of 317–18 performance, measurement of 341–3 Inditex 636 individualization of products 435 information revolution information services 174–5 information technology impact of 35–38 in India 10–11 Infosys Technologies 41 ING Bank 14 Inkson, K 130 innovation in international markets 13–14 of new products 417–20 positioning 421 innovative companies (2015) 419–20 insufficient markets 196–7 insurance 651–2 Intel 23 intellectual property, protection of interaction message systems 140 interest rates and export pricing 512 International Chamber of Commerce 515, 537, 628 international consumer behavior animosity 462–3 BPC model 457 consumer affinity 463–4 country biases and attraction–repulsion matrix 459–60 disidentification 461–2 ethnocentrism 460–1 destination imagery and image 458 final thoughts 458 and origin 455–64 facets 456 image 455–6 image across geographical entities 457 image effect under varying circumstances 457 mimicry 458 stakeholders 458 International Convention for the Protection of Industrial property 450 international exchange ratio 79 international expansion, analysis for 198–9 international exports, stages 92–4 International Finance Corporation 173 International Herald Tribune 583 international interdependence, increases in 2–3 international joint ventures (IJVs) 391 international marketing 17–28 adjustments and problems in 19 business activities in 19 economic forces 143–8 change in 148 market development 144–8 entrepreneurial approaches to 38–40 business-government alliances 40 online marketplaces 38–9 virtual company 39–40 ethics in 101–2 export marketing mix 25 exporting and importing 25–6 and global marketer 20–1 government in see government, role of management of 22–5 portfolio analysis in 226–7 requirements 17–19 and technology levels 37 international marketing information system (MIS) 244 export marketing research 247–64 outside research firms 245 process 249 types of information 246 International Monetary Fund (IMF) 83, 173 international new venture (INV) 278 typology of 279 International Playtex Inc 602 international trade decline (2009) factors explaining 17 theories of 76–83 classical theory 77–80 factor proportion theory 80–1 free trade 82–3 product life-cycle theory 81–2 703 www.downloadslide.net Index International Union of Credit and Investment Insurers (the Berne Union) 538 Internet 167 in China 167, 250, 282, 336 export pricing on 492 government regulation on 335–6 physical distribution of exports on 644 pricing, new approaches 501 smoothing out demand 494 as threat to prices and brands 492–3 intimates consumer segment 205 invest/grow countries 228–9 irregular demand 32 ISO 9000 421–2 isolating situation in competition 152 Isuzu Motors Limited 496 J Crew Inc J D Power and Associates 61, 121 Jack, A 104 Jacobs, L 508 Jaguar cars 456 Jaguar Electronics Inc (case study) 669–71 Jansen, D 207, 211–12, 290 Japan business-government relations 107 Dell Inc in 68, 70 legal practices in 106 social responsibility in 107–8 Japan Airlines 543 Japan External Trade Organization (JETRO) 172 The Japan Times 503 Jardine Matheson 312 Jargon, J Jarvis, S 251 Javalgi, R G 247 Jiang, F 368, 478 Jobber, D 197–8 Joepen, Dr A 350–2 Johanson, J 97, 208 Johansson, J K 454 Johnson, E 125 Johnson, S 512 Johnson, T E 503 Johnstone, H 369 joint ventures 283, 361, 390–3 NUMMI 53–63 and sole ownership, compared 368 success in 380 Josiassen’s matrix, 459–60 just-in-time systems 639–40 justice principle 100 704 Kageyama, Y 31, 61, 120–1, 364, 581 Kahle, L 204, 431 Kalotay, K 361 Kamprad, Ingvar 234–6 Karamally, Z 319 Karunaratna, A 208 Katsikeas, C C 341 Katsikeas, E 330 Katz, I 370 Katz, R 488 Kaufmann, J B 209 Kearney, A T 387 Keegan, W J 144, 261, 378, 441 Keenan, F 501 keiretsu 311 Kellogg’s 435, 442, 598 Kentucky Fried Chicken 18, 130–1, 571 Kerwin, K 61, 410 Kess, J 139 kidnapping 15 Kiefer, R O 227–8 Killaly, B 274 Kim, R 31, 110 Kindel, Sharen 234–6 King, T R 372, 375, 378, 381 Kinnander, O 410 Kirby, C 43 Kirchgaessner, S 543 Kitamura, M 54 Kjellman, Jan 235–6 Klako Group (case study) 303–4 Klein, J G 459–63 Knickmeyer, E 125 knowledge industry, exports in 41–3 Koehler, Klaus 303–4 Kogut, B 129, 208 Konrad, R 43 Kopytoff, V., 66 Kotabe, M 379 Kotler, P 33 Kraft Foods International 370 case study 623 Kranhold, K 75 Kripalani, M 10, 41–2, 284, 359, 471 Krishnamurthy, S 335 Krisner, T 120 Kropf, M B 250 Kuivalainen, O 322 Kujawa, D 90 Kumar, V., 247, 258 Kurasawa, H 490 Kwong, R www.downloadslide.net Index labeling 445 Lamont, B T 210 Lamont, J 10–11 language in marketing research 252 Lapper R 495 Laroche, M 603–4 latent demand 32 Latin America 148 Lau, J Laura Ashley 393 Lawton, C 68–9 Lazarus, D 160 Leahy, J 10, 41, 471 learning message systems 140 Lee, Bruce 54 Lee, J 196, 567 Lee, J A 143 Lee, L 71 Lee Kuan Yew 138 legal/political influences on export pricing 502–4 LEGO 424, 447–8, 451, 598 Lehman Brothers 47 Leonidou, L C 105, 244, 343 less developed countries 147 letter of credit 35, 547, 654 drafts 545, 654 acceptance 537 clean and documentary 535, 545 sight 537, 561 time or date 537, 561 Levi Strauss 541 Levin, M 160 Levitt, T 20 Levy, M 427 Levy, P 245, 569 Lex Column 122 lexicographic model for screening ideas 415–16 Li, S 373–4 Libai, B 219 Library of Congress 10 license requirements by government 168 licensing agreements 361, 381–4 objectives and evaluation 382–4 Lidl 274–5 Liesch, P W 295 life cycle stage in product mix decisions 431–3 linear compensatory model for screening ideas 416 Lister, N 105 Little, M 281, 289 Liu, F 603 Liu, H 129 Livingston, Dr Sharon 569 local-for-global innovation process 417–18 local-for-local innovation process 417 Lockheed Martin 95 Loctite Corporation 46 Loescher, Peter Louis Dreyfus Group 541 Louis Vuitton 488 low-income economies 144 lower middle-income economies 144 Luce, E 116 Lundegaard, K 158 Luo, Y 152 Luostarinen, R 17, 171 Lynch, C 601 Lyness, K S 250 Lynn, B 26 Mackintosh, J 61, 523 MacMillan, D 64 MacVaugh, J 420 McDonald’s 131, 383, 393, 489, 598, 601–2 international marketing by 5, 8, 20–1, 45 pricing strategies 489, 514 McDonnell Douglas Corporation 543, 570 McGinley, L 123 McGinnis, A 669–71 McGregor, J 67 McKinsey Global Institute 47 McNeil Jr, D 125 McNulty, S 118 McWilliams, G 69, 641 magazines, advertising in 584–5 Mahathir, Dr 138 Maidment, F 101 Makino, S 391 Malhotra, S 209 Malik, O 384 management contracting 283, 389–90 managerial attitudes to export behavior 86–7 mandatory adaptation 435 Manganese Bronze Holdings 364 manufacturer’s export agent 316–17 manufacturing 283 manufacturing resource planning (MRP2) 635 Manuj, I 636 maquiladora (Mexico) 364 Marcelo, R 41 marginal pricing 491 market concentration 217–20 critical mass in 221 factors favoring 222 Herfindahl index for 219 resource allocation 219 market definition 199–206 705 www.downloadslide.net Index market driven firms 23 market entry strategies 21–2, 271–304 alternatives to 279–84 channels between nations 280–4 channels within nations 281 as channel decision 272–3 importance of decision 273–7 whole channel concept 276–7 channel management 293–5 feedback 295 intermediaries 294–5 choice of entry mode 285–93 channel members 293 company mode 288 government policy mode 288–9 and involvement 291 marketing organization mode 286–8 multiple entry modes 291–2 competing modes 292 mode complementarity 292 segmented modes 291 unrelated modes 291 product mode 286 target market mode 285–6 elements of 277–9 entry mode decision process 292 free trade areas 297 modes 271, 275–6 selection of strategy 295–6 naive rule 296 pragmatic rule 296 strategy rule 296 sequence 195 see also nonexport entry modes market factors in internationalization of trade 17 market failures 274–5 market segmentation bases of 202–6 core values segmentation 204–5 in international markets 13–14 specialization in 200 market selection 195, 197 contractible methods 212–17 customer segmentation 216–17 detailed analysis 217 geographic segmentation 214–16 prohibitive factors 214 expansive methods 210–12 proactive approach 207–10 reactive approach 207 strategies 217–20 choice of 220–6 market skimming 486–7 706 market spreading 217–20 factors favoring 222 resource allocation 219 marketing decision support systems 243 marketing distribution agreements 393 Marketing Metrics Inc 248, 250 marketing mix and export pricing 504–5 in international marketing 24 Marks & Spencer 371 Marsh, P 9, 43 Marshall, R S 318, 334 Mason, J 98 MasterCard 569 Masters, B 99 materials handling in distribution of export orders 634 material requirements planning (MRP1) 635 Matlack, C 21, 355, 408 matrix organization, 459 Matthews, R G 523 Mattson, L -G 97 Mazda 38, 371, 650 joint venture with Ford 380 measurability in export market segmentation 201–2 media for advertising foreign 584–8 international 583–4 media mix 593–4 Mefford, R N 386 “Megacorp, Inc.” 438–9 Mellier, Philippe 8–9 Meng, L 581 Mentzer, J 636 Mercado, S 503 Mercedes 132–3 Merck & Co 523 Mercosur 167 Meredith, G E 205 mergers and acquisitions 166, 370–1 global activity in 410 message systems 140 Metz, R 110 Metzler, N T 423 Mexico as export platform 362 maquiladora in 364 Meyer, G Meyer, K 373, 413 Meyer-Ohle, H 311 Micro Compact Car (MCC) 411–12 Micro political risks in marketing 175–6 Microsoft 23, 31, 41 www.downloadslide.net Index middle class, sizes 196 Middle East and North Africa (MENA) 148 Mill, James 73 Miller, C 205, 250 Miller, S 105 Miller, T 204–5 Ministry of Economy, Trade and Industry (METI, Japan) 150 Miracle, G E 529–32, 568, 613–16 Mitchell, A 600 Mitchell, T 10 Mitsubishi Motor Company 38, 106, 132, 311 Miyazawa, T 132 mobile marketing, 569 mobile phones and market efficiency 495 Mody, A 370 Moen, Ø 322 Möller, J 589 money transfer for individuals 547–8 monopolistic (imperfect) competition 500 Moonbitcoin 338 Moore, P G 60, 429 moral issues in export marketing 97–102 Morchett, D 274 Morgan, R E 330 Morgan, R M 96 Motorola 76, 92, 250 Mudambi, R 278 multiculturalism 134 multilingual cultures 139 Murdock, G 136–7 Murdock, Rupert 374 Murphy, B 294 Murray, J Y 379 Nakamoto, Satoshi 337–8 Nakata, C 416 Naohiro, Y 106 Nasser, Jacques 158–9 National Geographic 39, 583 nationality gaps with intermediaries 295 NEC 150 negative demand 32 Negishi, S 370 Nestlé 408, 410, 435 case study 353–5 networks in export marketing 94–7 New United Motors Manufacturing Inc.: case study 53–63, 640 New Zealand Dairy Board 453 News Corp 374, 375, 584 newspapers newspapers, advertising in 584 Ng, P 70 Nguyen, T D 335 niche firms 200 “Niche Ltd.” 438–9 niche markets Nielsen, B B 392 Nielsen Co 245 Nijssen, E J 463 Nike 149, 571, 636 The Nikkei Weekly 60, 68, 70, 513 Nill, A 451 Nintendo 31 Nissan 38, 149, 371, 523 no demand 32 Nohria, N 417 Nokia 151, 448, 636 nonexport entry modes alternatives 360–2 assembly operations 375–7 choice of 393–5 manufacturing facilities 362–75 implementation 369–75 location 363–6 ownership 366–9 strategic alliances 362, 377–81 contract manufacturing 384–6 contracting 377, 384–9 core dimensions 379 franchising 382–3 joint ventures 377, 390–3 licensing 377, 381–4 management contracting 389–90 nature of 377–81 outsourcing/offshoring 386–9 success in 380 nonverbal communication 566 nonvessel operating common carriers (NVOCC) 646 Nordstrom Inc Nove Ltd (case study) 617–19 Novelis 370 Novica.com 39 Nuttal, C 31 NVOCC bills of lading 660 Nye, C W 564 ocean freight, computation 520–1 ocean transport of export orders 644–5, 659–64 bills of lading 659–61 clean or foul 660 forwarders and NVOCC 660 received for shipment and onboard 660 signed and unsigned 659 707 www.downloadslide.net Index straight and order 659–60 uniform through export 661 container shipment 663–4 dock receipt 664 freight rates 662–3 route selection 662 space reservation 662–3 O’Doherty, J 515 offensive business expansion 360 offsets 543–4 offshore financial centers (OFCs) 544 offshore plants 91–2 offshoring 364, 386–9 Ohnsman, A 54, 424 Okazaki, S 564, 599 Olesen, A 282 Olsen, K 274 Omidyar, Pierre 64–7 on-board bills of lading 660 O’Neill, H M 209 Onkvisit, S 601 online advertising 47, 588–93 online marketplaces 38–9 in arts 39 in automobiles 38 in transport 38 online technologies 335–8 opaque offsets 543 OPEC 30 open account in export financing 536 operational risk 146, 365 Oppenheim, A N 262 Oracle Corporation 110 order bills of lading 659–60 Oregon Steel Mills 370 Organization for Economic Development (OECD) 98, 146 origin (products and firms) 455 facets 456 image 455–6 across geographical entities 457 effect under varying circumstances 457 halo model of 457 mimicry 458 origin effect 455 Ostrovsky, A 543 out-of-pocket costs 491 outsourcing 41, 364, 386–9 overfull demand 33 overlooked markets 196–7 Owens, Jim ownership-control risk 365 Oyedele, A 580 708 Pacheco, J 297, 364 packaging in product planning 441–6 labeling 445 language 441–2 packing list for export orders 657 The Pampered Chef (case study) 473–5 Papadimos, A 476–9 Papadopoulos, N 207, 211–12, 457 Park, Y 288, 290, 292 Parker Pen 571 Parkes, C 104 Parkson Parloff, R 125 partnering situation in competition 152 partnerships 96 pattern standardization of promotion 596, 601 Patterson, P G 149 Paun, D 539 payment procedures, letter of credit 35, 547, 654 drafts 545, 654 acceptance 537 clean and documentary 535, 545 sight 537, 561 time or date 537, 561 PayPal 64–5 Pearson, M P 361 Pearson, N O 10 Pecotich, A 129 Pehrsson, Q A 274 Pelley, S 117 penetration pricing 487 PepsiCo 166, 261, 333, 381, 433, 541 personal selling 565, 572–3, 594–5 Petersen, B 291 Peterson, R A 130 Pfeifer, S 543 Philip Morris 509, 595 Phillips 18 Phillips, Sue 252 Phorm 589 physical distribution of export orders 630–4 costs and effectiveness of 644–5 decision areas 633–4 carrying inventory 634 documentation 634 materials handling 634 shipment, nature of 633 transport 633 warehousing 633 documentation 653–8 certification 657–8 commercial invoice 655 consular invoice 655–7 www.downloadslide.net Index export declaration 653–4 export license 653–4 packing list 657 facilitating services 645–53 free areas 648–50 freight forwarders 646–7 insurance 651–2 warehousing 647–8 management, importance to 631–3 ocean transport 659–64 bills of lading 659–61 clean or foul 660 forwarders and NVOCC 660 received for shipment and on-board 660 signed and unsigned 659 straight and order 659–60 uniform through export 661 container shipment 663–4 dock receipt 664 freight rates 662–3 route selection 662 space reservation 662–3 technology, contribution of 631–2 transport modes 641–5 Pickler, N 159 Piercy, N 222 piggyback marketing 318–20 Philippines 364 Pilkington 36 Pilling, D 10, 121, 514 Pillsbury Company 318 Pimentel, B 68–9 piracy 14, 452 Pirelli 410 Pitta, D A 455 play message systems 140 point-of-purchase materials 578 political-legal restraints 165 political risks assessment of 367–8 evaluation of 366 in market selection 291 in marketing 175 in nonexport market entry 365 political union 179 portfolio analysis in international marketing 226–7 application of 228–30 posters, advertising on 585 Pottinger, M 15 Pratt & Whitney 501 predatory pricing 168–9 preemptive pricing 487 preference effect in economic integration 182 Premack, J premium prices 488 Prescott, Edward 82 pressured consumer segment 204 price and cost transparency 492–3 price competition 488 price concessions 503 price differentials 458 price escalation 506–7 price floor 491 price quotations in export pricing 515–21 CIF quotations 519–21 terms, comparisons 516–18 trade terms 518 price sensitivity 496 pricing capturing new markets with 488 new approaches 501 see also export pricing Primex Marketing, Inc (case study) 671–4 principled purchasers segment 203 privileged companies 321 proactive approach to market selection 207–10 problem children in product matrix 226 Procter & Gamble 21, 85, 354, 371, 418, 439, 489, 579, 595, 605 product-communications strategy alternatives 441 product distinctiveness 500 product elimination 425–6 product factors in market development 221–3 product homogeneity 151 product life-cycle theory international trade 81–2 product mix 200 product mix decisions 426–33 analytical approaches 427–30 decision theory 429–30 product portfolio 427–29 external determinants 430–3 competition 431 customer influences 430–1 life cycle stage 431–3 other factors 433 internal determinants 430 product origin image (POI) 457 product planning and development 409–24 brand image 447–55 brand equity 448–9 brand protection 449–52 decisions 452–5 copying products 410 existing products changes in 424–5 new uses for 425 709 www.downloadslide.net Index internal product development 410 new products 410–24 innovation and diffusion 417–20 positioning 421 quality management 421–4 R&D, location 413–15 screening ideas 415–16 evaluative criteria for 415–16 strategies for 416 packaging 441–6 product elimination 425–6 standardization vs adaptation 434–41 determining 440–1 other variables 441 reasons for 434 product policy 408–9 dimensions 409 product safety 423 production plant operations 361 professional merchandisers 314 profit centers 521 profitability in export market segmentation 202 promotion for export marketing advertising 580–94 climate for 582–3 foreign media 584–8 international media 583–4 media mix 593–4 online 588–93 to youth 581 alternative techniques 572–95 personal selling 572–3 sales promotion 573–9 company-published magazines 576 consumer promotion materials 578–9 exhibitions 577–8 films and slides 576–7 foreign catalogs 574–5 house organs 576 point-of-purchase materials 578 samples 575 trade fairs 577–8 barriers to 563 blunders in 571 and communication 565–72 management of 608–9 programs and strategy 595–9 publicity 579–80 promotional activities 171–8 by private organizations 178 regulatory supportive activities 171 protectionism 83, 165 prototype standardization of promotion 596, 601 710 psychic distance in market selection 207–9 psychological distance in market selection 208–9 public employee pension funds on corporate behavior 103 public relations activities 579 publicity 565, 579–80, 595 pull policy with intermediaries 294 pull strategy for promotion 565 Punnett, B J 138, 291 purchasing power parity 613 pure barter 541 pure competition and pricing 500 push policy with intermediaries 294 push strategy for promotion 565 quality management of new products 421–4 question marks in product matrix 226, 428 Quint Winery (case study) 350–2 quotas 169–70 radio, advertising on 587 radio frequency identification systems (RFID) 36, 640–1 Rai, U K 318 Raine, G 104 Ramasamy, B 129 Ramaseshan, B 248, 316 Ramaswami, S N 289–90 Rand Corporation 43 RAP Engineering and Equipment Company (case study) 528–9 reactive approach to market selection 207 received for shipment bills of lading 660 recession company responses to 2, 4–5 Reed, J 121 Reedy, Lynn 65 regional animosity 463 regional trade agreements 164 Regulation of Investigatory Powers (RIP) Act (UK, 2001) 167 Reich, Robert B 104 Reinhardt, A 42 relationship marketing 94–6 Renault 38, 371 research & development, location of 413–15 resident buyer 314 resource availability in export behavior 91 Retsky, M L 451 Reus, T H 210 Revised American Foreign Trade Definitions 516 Reynolds, N L 258 Rhone-Poulenc 319 www.downloadslide.net Index Richardson, P 37 Ricks, D A 133, 139, 197, 251, 260, 276, 314, 372, 392, 569–70, 605 rights principle 100 risk diversification in export behavior 87–8 risks co-sharing of 538 in market selection 220 reduction of 538 spread of 538 Roberts, D 168, 370, 423, 568 Robertson, J 110 Robitaille, D 422 Robles, F 575 Rocks, D 415 Rolls-Royce 3, 22, 144, 248, 488, 501 Ronkainen, I A 454 Roos, L -U 129 Root, F R 214–15, 284, 289, 295, 365–6 Roper Starch Worldwide 204 Rosen, B N 440 Rosenbaum, M E 459 Rosenthal-Porzellan AG 437 Ross Jr, B 65 Roth, A 40 Rotterdam Distriport 173 Royal Philips Electronics 479 case study 479–80 Russia 376–7 antidumping legislation 502–3 Russow, L C 211 Sa Sa 339 Saab 99, 410 Sack, M C 257 Sacks Inc Sakashita, Y 10, 41 sales promotion 565, 573–9, 594–5 company-published magazines 576 consumer promotion materials 578–9 exhibitions 577–8 films and slides 576–7 foreign catalogs 574–5 purposes of 574 house organs 576 point-of-purchase materials 578 samples 575 trade fairs 577–8 Salzberger, T 261, 263 Samiee, S 599 Saminather, N Samli, A C 508 samples, promotional 575 Samsung Electronics 85, 394, 411, 416, 448 Samuelson, Paul A 83 “SAN A/S” (case study) 267–8 San Francisco Chronicle 5, 43, 58, 107–8, 118, 501, 514 Sanchez-Peinado, E 290 Sanyal, R 98, 101 SAP 42, 353–4 Sara Lee 454 Saracevic, A 41 Sardy, M 130 Saunders, J 427 Sawhney, K 379 Scandinavian Marzipan Factory A/S 442 Scanlan, D 535 Schafer, D 401, 404 Scheck, J 71 Schewe, C D 205 Schiavone, F 420 Schine, E 452 Schmidt, D A 365 Schmidt, M J 244, 247, 258 Schultz, D E 451, 581 Scott-Kennel, J 378 screening ideas for new products 415–16 evaluative criteria for 415–16 strategies for 416 seasonal product sales 89 Sega Software 636 selective distribution 273–4 selectivity countries 229–30 self-awareness 134 self-reference criterion (SRC) 143 semi-developed countries 147 separate export department 324 Servais, P 322 7-Eleven (Japan) 3, 8, 18, 44–5, 70, 131 case study 237–40 sex appeal in advertising 603 Shales, A 124 Shankarmahesh, M N 206, 334, 461 sharia financing 554 Sharma, A 335–7 Sharma, S., 459–62 Sharma, V 271 Sharp Corp 416 Shaw, J J 601 Sherwin-Williams 96 Sheth, J N 335–7, 607 Shimp, T A 459–63 shipment, nature of in distribution of export orders 633 shippers’ agent 647 711 www.downloadslide.net Index Shirouzu, N 121 Shiseido 636 Shoham, A 34, 463 Siemens AG 9, 75, 109 sight drafts 537, 561 signed bills of lading 659 signs, advertising on 585 silent language 140 Simon, B 120–1 Simonian, H 355 Simpson, C L 90 Singh, H 129, 208–9 Singh, N 335 Single European Act 183 Sinha, I 493 Sinova Management Consultancy Ltd (case study) 349–50 Sivadas, E 247 Skrzynecki, D 475 Slagle, M 68–9 small and medium size companies internationalizing 21–2 promotion of 171–3 Smart Car 412–13 Smith, F 55 Smith, M A 578 Smith, R 55, 61 Smith, S 247, 249, 252 smuggling 509 Sobel, J 120–1 Soble, J 10 social responsibility in business environment 102–10 business-government relations 107 legal practices in 106–8 and political/legal environment 108–10 social responsibility in 107–8 stakeholder concept 103–4 Society for Worldwide Inter-bank Transfers (SWIFT) 535 socio-cultural environment 128–43 and communication 140–3 cultural differences 130–4 on export marketing 128–9 nature of culture 134–9 self-reference criterion 143 SodaStream 463 sogo shosha 293, 310–11 sole ownership and joint ventures, compared 368 Sony 95, 414, 425, 514, 636 Sonya Madden (case study) 405 Souiden, N 201 Sousa, C M P 208, 341–2 712 Soutar, G N 316 Southwest Airlines 488, 514 Spagat, E 120 Spekman, R E 379 sponsorship 581 Staake, T 451 stakeholders in business environment 103–4 consumer behavior and origin 458 relationship marketing 294 standardized export advertising 601 Stanford, D D 623 Star Alliance 44, 393 Starbucks 3, 44, 149 stars in product matrix 226, 428 state trading 171, 178–9 statistical decision theory 429–30 Steenkamp, J -B 262, 454, 461 Stephens, C R 260 Sternquist, B 288, 290, 292 Stout, David 124 straight bills of lading 659–60 strategic alliances 362, 377–93 contract manufacturing 384–6 contracting 377, 384–90 core dimensions 379 franchising 382, 383 joint ventures 377, 390–3 licensing 377, 381–4 management contracting 389–90 nature of 377–81 outsourcing/offshoring 386–9 success in 380 Strato Designs (case study) 532–3 strivers consumer segment 204 subcultures 138 subsidies 171, 173 subsistence message systems 140 Sukumar, R 260 Sullivan, E A 480–2 Sullivan, J 44, 98 Sun Microsystems 10 supply chain management ‘Supreme Canning Company’ 156–7 suspicious shoppers segment 203 Swani, K 423 Swarovski 442 sweatshops 388–9 switch trading 542 Symantec 10 Tabuchi, H Taco Bell 275 www.downloadslide.net Index tactical competitive advantage 149 Tanaka, Y 489 Tang, E 445–6 Tang, R 648 Tantong, P 416 tariff levels 504 tariff quotas 169 tariffs 168–9 Tata Consulting Services (TCS) 41–2 Tata Group (case study) 471 taxation, government 170 taxhavens 171 Taylor, A 61, 133 Taylor, C R 568 Taylor, P 41 TCL Corp 370 technology levels in international marketing 37 transfer of 76 Telefónica de Espa 381 television, advertising on 587–8 Temple, J 110 temporality message systems 140 Teng, L 603–4 Terpstra, V 507 territoriality message systems 140 terrorism 15 Tesar, G 322 Tesco 5, 8, 13 test market pricing 496 Theodosiou, M 244 Thomas, C 645 Thomas, D C 130 Thomas, H 429 Thomas, K 120 Thomson 370 Thorn EMI 371 Thornhill, J 110 3M 442 Tierney, C 355, 490 Time 583 time drafts 537 Timmons, S 125 TNK 378, 381 Toften, K 200 Toshiba 23 total quality management (TQM) 421 Townsend, M 581 Toyota Motor 132 in countertrade 540 joint venture with General Motors 392, 640 in NUMMI case study 54–63 pricing strategies 490, 513 recalls by 120–2, 423 Toys a Us 37, 489 trade acceptance 561 trade barriers 165 coping with 35 dimensions of 34 lowered trade diversion 182 trade fairs 577–8 Trade-Related Aspects of Intellectual Property (TRIPS) 450 trademarks 450–2 tradeoff 540 trading company 309–12 traditionals consumer segment 204 tramp vessel 663 transfer pricing 521–5 decentralization 531 legal problems with 523 to partially owned enterprises 524–5 to wholly owned subsidiaries 521–4 transfer risk 365, 367 transport, online marketplaces in 38 transport in distribution of export orders 634 travelling buyers 314 travelling salesperson 328–9 Treece, J 56, 59 Trimarchi, M 295 trinational joint ventures 391 Tucker, S Tulshyan, R 142 turnkey operations 389–90 Twitter 282 underserved markets 196 uniform through export bills of lading 661 Unilever 249, 410 branding ice cream 596–7 logistics in 634–5 unique competences in export behavior 87 United Airlines 31 United Nations 147, 509, 628 United Nations Conference of Trade and Development (UNCTAD) 220 United Nations Industrial Development Organization (UNIDO) 220 United Parcel Service, Inc (case study) 388–90 unsigned bills of lading 659 unsolicited foreign orders 90 unwholesome demand 33 upper middle-income economies 144 Urban Outfitters 413 case study 356–7 713 www.downloadslide.net Index Urbina, I 117 USA business-government relations 107 controls on imports and exports 625 Dell Inc in 68–9 legal practices in 106 social responsibility in 107–8 USA Today Usery, W J 56 utilitarianism principle 100 Valeriano, L L 39 value added tax 170, 173 value clusters 138 value orientations 137 Values and Life Styles (VALS) methodology 600 van Herk, H 261–3 van Ittersum, K 457 Vanhonacker, W 369 Vapola, T J 380 Vence, D L 134, 245 Versace, G 415 Vetco 99 Viberg, Pernil 192 Vick’s Chemical Company 454 virtual company 39–40 Vodafone 370, 495, 585 Voice4u (case study) 53 Volkswagen AG 4, 105 in Brazil 377 in China (case study) 401–4 joint venture with Ford 380 pricing strategies 488 voluntary countertrade 540 voluntary export restraints (VERs) 169 voluntary quotas 169 voluntary restraints agreement (VRA) 55, 169 Volvo 410 Vranica, S 71 Vrontis, D 434 VSMPO-Avisma 543 Wagoner, G R Jr 54 Wah Shing Toys (case study) 405–6 Waldmeir, P 401, 404 The Wall Street Journal 5, 83, 368, 541, 583 Wallis, W 495 Walmart 5, 8, 38, 44, 131, 488, 640 acquisitions in Germany 370 market failures 274 Wang, R 294 Wankewycz, T 406 warehousing 633, 647–8 714 Warner-Lambert 276 Watanabe, Katsuaki 121 Watanabe, S 8, 42 Waters, R 110 Webb, A 223, 370 Webb, Maynard 65 Weintraub, A 355 Welch, D 61, 121–2, 171, 333, 410 Welch, L S 291 Wells, K 115 Wells, L F 578 Wells Fargo & Company 13 Wen Jiabao Werner, D L 221 West, J 422 Whalen, J 523 Wheatly, J 377, 645 Whipp, L 512 Whitaker, B 66 White, G 158 White, J 488 Whitelock, J 197–8 Whitman, Meg 65 wholly foreign-owned enterprises (WFOEs) 369 Wiedersheim-Paul, F 208 Wiesmann, G 543 Wijnholds, H de B 281, 289 Wikipedia® 637 Wilkinson Sword 33 Williams, Mike 117–18 Wingfield, N 66 Wipro Ltd 41 Woberg Company 192–3 Wolf, M 10, 47 woman as consumer segment 204 Wong, K 54, 55 Wong, Y -Y 186–91, 237–40, 301–3 Woodall, P 148 Woodside 393 World Bank 173 classification of countries 145 World Intellectual Property Organization 450 World Trade Organization (WTO) 165, 168, 450, 503 World Wide Web 167, 493–4, 588, 591 Woyke, E 448 Wright, G 429 Wright, L T 448 Wright, R 9, 645 WuDunn, S 507 Yang, C 374–5 Yao Ming 581, 586, 604 Yee, A 11 www.downloadslide.net Index Yi-Chong, X Yin, J 599 Yong, Y J 85, 411 Yorio, V 147 Young, R B 247 Zahn, T 60 Zahra, S A 278 Zaun, T 160 Zellner, W 274 Zeugner-Roth 449 Zhao, M 401–4 Zhejiang Geely Holding Group 364 Zhou, N 581 Zhu, E 275 Zukerman, M 2, 47 715 ... Duerr and Jesper Strandskov 1998 (print) © Gerald Albaum, Edwin Duerr and Jesper Strandskov 2008, 2011 (print and electronic) © Gerald Albaum, Edwin Duerr and Alexander Josiassen, 2016 (print and. .. of both the basic marketing concepts and how they relate to international marketing, as well as coverage of models and theories unique to international marketing and export management The text... its business model Chapter 1 International marketing and exporting Introduction The growing importance of international marketing and export management Recession and recovery In 2015–2016 most