There is no other international marketing book which comes close to the fourth edition of International Marketing: Analysis and Strategy in terms of scholarly
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International Marketing
Marketing is a universal activity, regardless of the political, social, or economic systems of a particular country.
However, this doesn't mean that consumers in different parts of the world should be satisfied in the same way.
This fourth edition of
International Marketinghas been written to enable managers and scholars to meet theinternational challenges they face every day, and it provides the solid foundation required to understand the com-
plexities of marketing on a global scale.The book has been fully updated with topical case studies, examples of contemporary marketing campaigns,
the most relevant discussion topics as well as the most up-to-date theories, references, and research findings. It
is this combination of theory and practice that makes this textbook truly unique, presenting a fully rounded view
of the topic rather than an anecdotal or descriptive one alone.The book includes chapters on:
trade distortions and marketing barriers culture consumer behavior marketing research foreign market entry strategies product and branding strategies promotion and pricing strategies currencies and foreign exchangeAccessibly written and designed, this is the most international book on marketing available which can be used by
undergraduates and postgraduates the world over. As one of the most successful textbooks in its field, the book
has been adopted in the USA, Europe, Asia, Australia, and elsewhere, at the undergraduate, MBA, and Ph.D.
levels. A companion website provides additional material for lecturers and students alike. Sak Onkvisitis Professor of Marketing at San José State University, USA. John Shawis Professor of Marketing at Providence College, USA. 11112 3 4 5 6 7 8 9 10111
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Analysis and strategy
Fourth edition
Sak Onkvisit and John J. Shaw
11 11 2 3 4 5 6 7 8 9 10 11 1 1 2 3 415 6 7 8 9 20 11 1 1 2 3 4 5 6 7 8 9 30
1 2 3 4
International
Marketing
First edition published by Charles Merrill in 1989Second edition published by Macmillan in 1993
Third edition published by Prentice-Hall in 1997
Fourth edition 2004
Simultaneously published in the UK, USA and Canada by Routledge29 West 35th Street, New York, NY 10001
and by Routledge11 New Fetter Lane, London EC4P 4EE
Routledge is an imprint of the Taylor & Francis Group© 2004 Sak Onkvisit and John J. Shaw
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any
electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication DataOnkvisit, Sak.
International marketing : analysis and strategy / by Sak Onkvisit andJohn J. Shaw. - 4th ed.
p. cm.Includes bibliographical references and indexes.
1. Export marketing. 2. Export marketing - Management.
I. Shaw, John J. II. Title.
HF1416.O55 2004
658.84 - dc222003023746
ISBN 0-415-31132-2 (hbk)
ISBN 0-415-31133-0 (pbk)
This edition published in the Taylor & Francis e-Library, 2007. ìTo purchase your own copy of this or any of Taylor & Francis or Routledgeís collection of thousands of eBooks please go to www.eBookstore.tandf.co.u k.îISBN 0-203-93006-1 Master e-book ISBN
To my family and the memory of my grandparents
and Lawrence X. Tarpey, Sr. andAnn and Jonathan and the memory of Rebecca
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List of illustrationsxiii
Prefacexviii
1 NATURE OF INTERNATIONAL MARKETING: CHALLENGES AND OPPORTUNITIES 1
Process of international marketing 3
International dimensions of marketing 4
Domestic marketing vs. international marketing 5
The applicability of marketing 6
Multinational corporations (MNCs) 7
The process of internationalization 15
Benefits of international marketing 15
Conclusion18
Case 1.1 Sony: the sound of entertainment 19
2 TRADE THEORIES AND ECONOMIC DEVELOPMENT 22
Basis for international trade 23
Exchange ratios, trade, and gain 26
Factor endowment theory27
The competitive advantage of nations 32
A critical evaluation of trade theories 33
Economic cooperation39
Conclusion46
Case 2.1 The United States of America vs. the United States of Europe 473 TRADE DISTORTIONS AND MARKETING BARRIERS 52
Protection of local industries 55
Government: a contribution to protectionism 57
Marketing barriers: tariffs59
Marketing barriers: nontariff barriers 62
Private barriers73
World Trade Organization (WTO) 74
Preferential systems76
Some remarks on protectionism 77
Conclusion78
Case 3.1 Global war on drugs or tuna? 80
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Contents
4 POLITICAL ENVIRONMENT 84
Multiplicity of political environments 86
Types of government: political systems 89
Types of government: economic systems 92
Political risks100
Privatization102
Indicators of political instability 102
Analysis of political risk or country risk 104
Management of political risk 106
Measures to minimize political risk 107
Political insurance112
Conclusion114
Case 4.1 Hoa Ni Shoe Company 115
5 LEGAL ENVIRONMENT121
Multiplicity of legal environments 122
Legal systems124
Jurisdiction and extraterritoriality 125
Legal form of organization 128
Branch vs. subsidiary129
Litigation vs. arbitration131
Bribery132
Intellectual property139
Counterfeiting146
Conclusion148
Case 5.1 International auto safety and patents 149 Case 5.2 Bribery: a matter of national perspective 1506 CULTURE153
Culture and its characteristics 155
Influence of culture on consumption 156
Influence of culture on thinking processes 157
Influence of culture on communication processes 158Cultural universals159
Cultural similarities: an illusion 160
Communication through verbal language 160
Communication through nonverbal language 167
Subculture178
Conclusion181
Case 6.1 Cross-cultural marketing: a classroom simulation 1827 CONSUMER BEHAVIOR IN THE INTERNATIONAL CONTEXT: PSYCHOLOGICAL
AND SOCIAL DIMENSIONS 187
Perspectives on consumer behavior 190
Motivation190
Learning192
Personality193
Psychographics197
Perception198
Attitude202
Social class203
viiiCONTENTS
Group204
Family205
Opinion leadership206
Diffusion process of innovations 206
Conclusion207
Case 7.1 Beneath Hijab: marketing to the veiled women of Iran 2088 MARKETING RESEARCH AND INFORMATION SYSTEM 213
Nature of marketing research 214
Marketing information sources 216
Secondary research216
Primary research218
Sampling220
Basic methods of data collection 222
Measurement224
Marketing information system 232
Conclusion237
Case 8.1 B&R Bank: developing a new market 238
9 FOREIGN MARKET ENTRY STRATEGIES 243
Foreign direct investment (FDI) 245
Exporting246
Licensing248
Management contract252
Joint venture252
Manufacturing254
Assembly operations257
Turnkey operations260
Acquisition260
Strategic alliances262
Analysis of entry strategies 263
Foreign trade zones (FTZs) 265
Conclusion267
Case 9.1 How to export houses 267
10 PRODUCT STRATEGIES: BASIC DECISIONS AND PRODUCT PLANNING 272
What is a product?275
New product development275
Market segmentation277
Product adoption278
Theory of international product life cycle (IPLC) 279 Product standardization vs. product adaptation 285 A move toward world product: international or national product? 297Marketing of services298
Conclusion302
Case 10.1 McDonaldization 304
11 PRODUCT STRATEGIES: BRANDING AND PACKAGING DECISIONS 308
Branding decisions310
Branding levels and alternatives 313
Brand consolidation3231111
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