Gerald Albaum, Edwin Duerr

International marketing and export management

Preface Guided tour About the authors List of abbreviations Publisher's acknowledgements 1 International marketing and exporting 2 Bases of international marketing 3 The international environment: culture; economic, political and legal forces; and competition 4 Export market selection: definition and strategies 5 Information for international market(ing) decisions 6 M a r k e t entry strategies 7 Export entry modes 8 N o n e x p o r t entry modes 9 Product decisions 10 Pricing decisions 11 Financing and methods of payment 12 Promotion and marketing communication 13 Handling export orders and supply chain management 14 Organization of international marketing activities Glossary Index

Xl

xvi xviii xix xxiii 1 63

113 178 221 270 305 355 406 468 510 546 603 654 681 693

Preface Guided tour About the authors List of abbreviations Publisher's acknowledgements

xi xvi xviii xix xxiii

Chapter 1 International marketing and exporting

Introduction Being effective: the nature and practice of international marketing Export marketing planning and strategy The Internet, the World Wide Web, and e-business The impact of technology Entrepreneurial approaches to international marketing The growth of non-traditional exports Purpose and approach of the book Questions for discussion References Further reading Case study 1.1 Export of art goods from Hungary Case study 1.2 Murphy Company Limited Case study 1.3 eBay, Inc. Case study 1.4 DaimlerChrysler AG Case study 1.5 Dell, Inc.

1
1 11 21 28 32 35 37 41 43 43 46 47 47 48 51 58

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 Bridgestone Corporation Case study 2.2 GlaxoSmithKline PLC

67 74 83 85 88 93 99 100 101 103 104 108

Chapter 3 The international environment: culture; economic, political and legal forces; and competition
Introduction Culture and the socio-cultural environment Economic forces Political/legal environment Economic integration Competition Summary Questions for discussion References Further reading Case study 3.1 Supreme Canning Company Case study 3.2 Ford Motor Company Case study 3.3 Avon Products, Inc. (A)

113
113 114 128 135 154 158 162 162 163 166 167 168 172

Chapter 2 Bases of international marketing

Introduction Potential benefits from export marketing

63
63 64

Chapter 4 Export market selection: definition and strategies

Introduction Market definition and segmentation Market expansion/selection process, procedure, and strategy Foreign market portfolios: technique and analysis Summary Questions for discussion References Further reading Case study 4.1 IKEA Case study 4.2 Seven-Eleven Japan Case study 4.3 Better Way Company Limited

178
178 182 188 205 209 209 210 212 213 215 218

Managing the channel Selecting the entry mode Using free areas Summary Questions for discussion References Further reading Case study 6.1 Yang Toyland Pte, Limited Case study 6.2 Avon Products, Inc. (B) Case study 6.3 Klako Group

290 291 293 293 293 294 295 296 301 303

Chapter 7 Export entry modes

Introduction Indirect export Direct export The Internet and e-commerce Gray market exporting Summary Questions for discussion References Further reading Appendix: Developing an export plan Case study 7.1 Sinova Management Consultancy Ltd. Case study 7.2 Quint Winery Case study 7.3 Nestl

305
305 308 321 335 340 343 343 344 345 346 348 349 351

Chapter 5 Information for international market(ing) decisions

Introduction Sources of information Assessing market potential Export marketing research Using the Internet and e-mail for data collection Summary Questions for discussion References Further reading Appendix: Selected publications and websites providing secondary data Case study 5.1 SAN A/S Case study 5.2 Aquabear AB Case study 5.3 Ford Motor Company Latin America Case study 5.4 United Parcel Service, Inc.

221
221 225 232 236 250 251 251 252 253 254 258 259 261 268

Chapter 8 Nonexport entry modes

Introduction Alternative modes of entry Manufacturing facilities Assembly operations Strategic alliances Choosing between alternatives Summary Questions for discussion References Further reading Case study 8.1 Terralumen S.A. Case study 8.2 GG Farm Machinery Company Case study 8.3 VW in China Case study 8.4 Nouveau Cosmeceuticals Case study 8.5 Sonya Madden Case study 8.6 Wah Shing Toys

355
355 358 359 370 373 386 387 388 388 390 392 397 398 402 403 404

Chapter 6 Market entry strategies

Introduction Entry as a channel decision Entry as a strategy Factors influencing choice of entry mode

270
270 271 275 282

Contents

ix

Chapter 9 Product decisions

Introduction Product policy Product planning and development Product mix decisions Standardization vs adaptation Packaging Branding issues Summary Questions for discussion References Further reading Case study 9.1 Daewoo Corporation Case study 9.2 The Pampered Chef Case study 9.3 BRL Hardy Case study 9.4 The internationalization of Chinese brands

406 406 407 408 425 434 441 445 451 452 452 454 455 457 460 464

Countertrade Summary Questions for discussion References Further reading Case study 11.1 Tainan Glass Manufacturing Company Case study 11.2 Arion Exports

536 540 542 542 543 544 545

Chapter 12 Promotion and marketing communication

Introduction Export marketing promotion and communication decisions Alternative techniques of promotion Promotional programs and strategy Standardization or adaptation? Advertising transference Management issues Summary Questions for discussion References Further reading Case study 12.1 Christa Clothing International Case study 12.2 Nove Ltd Case study 12.3 Eli's Cheesecake Company

546 546 548 555 576 580 587 589 590 590 591 592 593 596 599

Chapter 10 Pricing decisions

Introduction Determinants of an export price Fundamental export pricing strategy Relation of export to domestic price policies Currency issues The price quotation Transfer pricing Summary Questions for discussion References Further reading Case study 10.1 RAP Engineering and Equipment Company Case study 10.2 The Capitool Company Case study 10.3 Strato Designs

468 468 470 480 485 490 492 497 502 502 503 504 505 505 508

Chapter 13 Handling export orders and supply chain management

Introduction Handling the export order Physical distribution Logistics and the systems concept Structure of international physical distribution A concluding comment Questions for discussion References Further reading Case study 13.1 Jaguar Electronics, Inc. Case study 13.2 Megabox, Inc. Case study 13.3 Primex Marketing, Inc. Case study 13.4 EFI Logistics

603 603 607 610 614 619 643 643 644 644 645 647 649 652

Chapter 11 Financing and methods of payment

Introduction Export financing methods/terms of payment Payment/financing procedures Export credit insurance

510 510 511 517 535

Chapter 14 Organization of international marketing activities

Introduction Main considerations of being organized internationally Organizational structures Summary

654
654 655 660 669

Questions for discussion References Further reading Case study 14.1 Hewlett-Packard Case study 14.2 Unilever (A) Case study 143 Unilever (B) Glossary Index

669 670 670 671 673 679 681 693

Supporting resources
Visit www.pearsoned.co.uk/albaumto find valuable online resources. For instructors: Complete, downloadable Instructor's Manual. PowerPoint slides that can be downloaded and used for presentations. Links to articles and resources on the web. Also: The Companion Website provides the following features: Search tool to help locate specific items of content. E-mail results and profile tools to send results of quizzes to instructors. Online help and support to assist with website usage and troubleshooting. For more information please contact your local Pearson Education sales representative or visit www.pearsoned.co.uk/albaum