PUT THE i IN YOUR iNTERNATIONAL MARKETING COURSE ... important
element of its international marketing presence. ... Appendix B: Notes. B-1.
Appendix ...
INTERNATIONAL MARKETING DANIEL W. BAACK | ERIC G. HARRIS | DONALD BAACK Chapter 7: International Product and Brand Marketing 229
II: International Markets and Market Research Overview
Part I of this textbook provided a backdrop for the field of international marketing. Culture, language, infrastructure, economic systems, and political and legal systems influence any domestic or global marketing operation. In Part II the central core of Figure 7.1 was examined: the market. Concepts of target market segmentation and product positioning were explained, along with international market research methods to emphasize the starting point for any marketing program: identifying consumer wants and needs.
and THE Turkey, i Pakistan and India,iand Israel and the PalestiniansMARKETING living in the West BankCOURSE PUT IN YOUR NTERNATIONAL
and the Gaza Strip. These conflicts undoubtedly influence consumer attitudes and The third part of international marketing, as shown in Figure 7.1, is the development of the physical goods and intangible services that meet the needs of those in the target behaviors. market. Products are designed and sold within the context of the cultural, linguistic,
When the United States invaded Iraq in 2002, various countries throughout the iNTEGRATED iNFORMATIVE iNSPIRING QUOTES world, especially in Western Europe, expressed disapproval. A survey completed in 2004 revealed that nearly 20 % of consumers abroadisaid they would avoid U.S. iNNOVATIVE iNDISPENSABLE NCREDIBLE VALUE companies and products such as McDonald’s, Starbucks, American Airlines, and
economic, political, legal, and economic constraints imposed by any country in which a global marketing firm intends to operate. In this chapter, product and brand management activities are detailed. Chapter 8 expands the discussion by incorporating the concepts of product and service adaptation. Making certain a product fits with a specific country and its culture helps the product compete in the international marketplace. International product marketing involves first understanding the types of products that companies sell and the main dimensions of those products from the viewpoint of the consumer. Next, product mix decisions regarding the number of products in a line (depth) and the number of product lines (width or breadth) are made. Product packaging and labeling concepts are integrated into all product decisions, as are choices with regard to the number and types of business-to-business products to be offered. In addition, marketers carefully evaluate product support services to ensure consumers and business customers receive quality attention during and after the purchasing process.
Barbie dolls (Mattel) because of the war. At that time, the more American a product was perceived to be, the more resistance it encountered.26
International services constitute a growing segment of international marketing
iNTEGRATED ILLUSTRATIONS & MAPS
Language
Culture
rice
roduct
lace
Political and Legal Systems
ALGE
Me dit er TUNIS IA S ra ne a n ea RIA
LEBAN ON PALEST AUTHOINIAN RITY
IRAQ N
LIBY
EGY
Pe rsi an Gu lf
KUWA IT BAHRAI
PT
QATAR
N
SAU ARA DI BIA
UNITE ARA D EMIRAB TES
OMAN
a
Greate r Arab Free Tra Coopera Arab Sta tion Counc de Area il tes of the Gu for the lf
A
SUD
Nationalism
SYRIA
JORDA
Se
international business factors interact with the 4 Ps.
CCO
d
Infrastructure
romotion
MORO
Re
efforts. Companies providing financial, insurance, transportation, health-care, personal, Any animosity or anger toward a country can be worsened by political, economic, or military conflicts between countries. A considerable amount of evidence suggests that animosity toward a country strongly influences consumers.27 In the United States, animosity with regard to objections to the Iraq war reached a level in which Congress circulated a resolution to change the name of the French fries in the congressional P P cafeteria to “Freedom fries,” because France had expressed strong opposition to theMarkets war at the beginning of the conflict. Integrated illustrations demonstrate how five key P P
AN
YEME
N
Economic Systems
At times, animosity toward another country may be coupled with nationalism. Integrated maps expose students to global locations. Nationalism refers to the strong pride and devotion citizens have in a country or
Figure 7.1: The International Marketing Context
nation. Nationalism can be the internal response to activities that can also lead to animosity as consumers examine products from other countries. Nationalism should not be considered as a purely negative or positive attitude. It may be associated with heroic sacrifice, loyalty, and group cohesiveness. From a marketing perspective, it can also lead to a preference for purchasing local goods and services. Conversely, nationalism can lead to boycotts, protests, and even acts of violence toward another country or a company conducting business in a foreign land. Nationalistic consumers often perceive that buying imported isInternational wrongMarketing because it negatively impacts Chapter 1:goods Introduction To 21 the domestic economy.28
nt Current Accou s Balances in Billion s of U.S. Dollar over $100 $50 to$100 $10 to $50 $0 to $10 -$0 to -$10 -$10 to -$50 -$50 to -$100 0ver -$100 no data
iNNOVATIVE REAL-WORLD APPLICATIONS
In May of 2010, millions of Indonesian farmers threatened to boycott Nestlé INTERNATIONAL INCIDENT products. Angry atyouramarketing move to stop As part of an international junket, teamby stopsNestlé to visit an important potentialbuying crude palm oil from Indonesian new client in Spain. Within a few hours of cordial discussions, the manager of the client farms, an you action that would potentially hurt the Indonesian economy, the company invites to attend the bullfights the next day as his guest. You haveseverely little interest in attending the event and do not like the custom. What should you do? How would you farmers expressed national pride and attempted to protect their community.29 respectfully decline? Or, would you accept and then bow out, claiming illness the next day? Would you consider attending? How would your response change if you were a Hindu from India or Nepal? (Hindus hold all life to be sacred and consider bulls to be religious animals that should never be harmed.)
Religiosity
International Marketing in Daily Life It may be that most people think of something “glamorous” when the term “marketing” is used. It may feel classy or sexy to consider a marketing program for the newest hand-held mobile technology, a fancy sports car, or designer clothing. At the same time, a case can be made that the majority of marketing opportunities may come from much simpler products and services—those used in everyday life.
International Marketing in Daily Life One common theme that appears in this textbook is the marketing of products
Innovative and thought-provoking International Incident features encourage critical thinking and class discussion. International Marketing in Daily Life features help students apply marketing concepts to everyday life.
to be used daily or regularly. The approach serves a special purpose: to illustrate how the most commonplace of daily activities can lead to the identification of target markets that companies can reach with products that are adapted to individual cultures and national circumstances. Figure 1.10 lists some of the daily activities described in this textbook. When one of these activities is described, the daily living logo show above will appear as part of the presentation.
Religions
Attitudes towards countries can also be influenced be religion and religious Bathing Brushing Teeth/Dental Hygiene Using the Restroom between countries. Wearing Jeans Increasingly, religiosity, or the degree to which similarities Sleeping and Beds Methods of Transportation consumers within a country or region are religious, has become a factor some Cosmetics Candy marketers consider when positioning products. Religiosity affects shopping CASE 10 Dining Habits and Foods Cooking Methods behaviors, attitudes toward advertising, purchase information-search processes, Drinks and Milk Consumption Coping with Headaches 30 Socialization Music and product preferences. A list of the major religions and the percentage of the Microfinance and Informative end-of-chapter brief cases cover key Religions Methods of Payment and Banking id population that follows each in select countries is presented in Table 5.1. Bottom-of-the-Pyram Figure 1.10: Selected Daily Life Activities and Marketing Opportunities Presented in This topics, including sustainability and bottom-of-themers nsu Textbook Co Each of these religions practices differing dietary programs, holds religious pyramid Six end-of-text comprehensive ceremoniesissues. in differing ways, exhibits varying viewpoints regarding the status of For most consumers in developing
iNFORMATIVE CASES
International Marketing in Daily Life
cases provide even more flexibility to your course. INTERNATIONAL EXAMPLE: MARKETING BATHING PRODUCTS As an example of the far-reaching impact of globalization on business practices and international marketing, consider this basic human activity: bathing and cleaning. Bathing and cleaning are routine activities worldwide, but the methods and products
r afterthought, an countries, credit is an Photo 10.7: Manual labo pyramid onent of making a ult for bottom-of-theeasily accessible comp Obtaining credit is diffic t scores are tracked s in developing markets. umer purchase. Certainly credi cons d for limite be can t credi and access to ruptcy or foreclosure. to repay loans, which individuals with a bank Women are more likely is rity of consumers, the next loan t market for the majo Still, for the majority of makes them the targe . away the swipe of a credit card microfinance loans. -them-of preneur botto entre for ult -two-year-old Obtaining credit is diffic Mallamma was a forty It is a microfinance loan developing markets. rabad, India. She used pyramid consumers in Hyde in lation ess. popu ’s busin world fish a s of the 00 Rs) to start estimated that two third of 10,000 rupees (10,0 s. that ss to credit from bank business to the point is unable to obtain acce one year she grew the In be an only hire to can 0 it all, 50,00 able at loan of Rs Instead, credit, if avail she is seeking a second s of , sharks and other form expanding. In Hyerabad accessed through loan employee and continue 0 10,00 Rs 25 This debt comes with a hefty an awati, used 26 organized crime. another borrower, Geet and be extremely high. machine after her husb cost. Interest rates can loan to buy a sewing usiness to
The Essence of Marketing
Drivers of Globalization: An Illustration Factors That Create International Marketing Complexity: An Illustration The International Marketing Context
The Marketing Mix Markets, Needs, and Wants Segmentation, Target Markets, and Positioning (STP)
Marketing in an International Context The Drivers of Globalization Channels of Communication Lower Transportation Costs Immigration and Emigration Governmental Actions
The Organization of This Book
The Factors That Create International Marketing Complexity
iNDISPENSABLE ONLINE RESOURCES
Part I: Essentials of International Marketing Part II: International Markets and Market Research Part III: International Product Marketing
Sustainability Bottom-of-the-Pyramid
Ethical Decision-Making and International Marketing Strategic Implications Tactical Implications Operational Implications Terms Review Questions Discussion Questions Analytical and Internet Exercises Case 1. Carrefour: Retailing in an International Marketplace
Facebook.com: Global Marketing Opportunities and Connectivity
VIDEO LINK 1.1: Facebook’s Impact
What online community signs up 700,000 new members each day? The answer— Facebook.com. The Facebook community included 750 million followers by mid2011.1 The founder, Mark Zuckerberg, was named Time magazine’s “Person of the Year” in 2010.
Indispensable online resources for the instructor
The statistics associated with Facebook take on nearly epic proportions. If Facebook users in January 2011 were members of a country, that nation would have the third highest population in the world, with only China and India ahead. One out of every twelve people on the planet has a Facebook account. And, in the world of Internet hits, one out of every four page views in the United States occurs on the Facebook site. Facebook has caused some dramatic shifts in everyday life, the core of which are new cultural patterns of interpersonal interactions. Marketing professionals have quickly moved into this realm along with the companies they serve.2
Password-protected resources at www.sagepub.com/baack include:
Many users around the world are familiar with the former Facebook.com opening page. As shown in the photo on page 5, the screen prominently displays the Facebook logo, an important element of its international marketing presence. To maintain interest, the content of the opening photos rotates, giving the website an evolving visual presence. Also, by being
• Author-created test bank available electronically and in Microsoft Word, with approximately 100 test questions for each chapter. • Author-created PowerPoint® slides highlight essential content and features from the text • Class assignments and answers to in-text questions • Full-text SAGE journal articles, carefully selected for each chapter • Video links with questions for discussion, sample syllabi, and country fact sheets Interactive online engagement for students See the inside back cover of this text for details and description of the free, open-access, interactive Student Study Site!
iNSPIRING QUOTES Reviewers say we are INTEGRATED, FRESH, REAL-WORLD, RELEVANT and GROUND-BREAKING “Who said that textbooks are boring? This is one of the few textbooks written that is comprehensive, interesting, and ground-breaking.” –John Hadjimarcou, University of Texas, El Paso “The single most impressive aspect is a fresh approach! It is really nice to see the integration amongst topics.” –Melissa Malabad, Mary Baldwin College “This is not an international business text with marketing stuff in it. . . . It resembles the textbook that I have wanted to adopt but have not seen . . .” –Brent Smith, Saint Joseph’s University “. . . there are more real-world examples in this text . . . relevant and refreshing.” –John Gironda, Florida Atlantic University
iNCREDIBLE VALUE What do your students pay for their current International Marketing text? International Marketing by Daniel W. Baack, Eric G. Harris, and Donald Baack costs students a minimum of $100 less than any of the four best-selling International Marketing texts!
INTERNATIONAL MARKETING
I dedicate this book to my parents, my wife, and especially to my grandmother Pauline Burns. The support she has provided me the past thirty-five years has been invaluable. Thanks, Nana. —Daniel W. Baack I dedicate this book to my parents, my wife, and my kids. For all the love and support, thanks to you all. —Eric G. Harris My efforts on this book are dedicated to my brothers: Steve Kepford, who has been a constant source of inspiration, and Drew (Charles) and Landis Burns, who welcomed me as family from the beginning. —Donald Baack
INTERNATIONAL MARKETING
DANIEL W. BAACK
ERIC G. HARRIS
University of Denver
Pittsburg State University
DONALD BAACK Pittsburg State University
FOR INFORMATION: SAGE Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail:
[email protected] SAGE Publications Ltd. 1 Oliver’s Yard 55 City Road
Copyright © 2013 by SAGE Publications, Inc. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. All opinions expressed by the authors in this book do not necessarily reflect the opinions of SAGE. SAGE shall not be liable for any liability arising out of or related to any of the material contained in this book.
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Printed in the United States of America
SAGE Publications India Pvt. Ltd.
Library of Congress Cataloging-in-Publication Data
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Baack, Daniel W. International marketing / Daniel W. Baack, Eric G. Harris, Donald Baack.
SAGE Publications Asia-Pacific Pte. Ltd. 33 Pekin Street #02-01 Far East Square Singapore 048763
p. cm. Includes bibliographical references and index. ISBN 978-1-4522-2635-4 (cloth) 1. Export marketing. I. Harris, Eric G. II. Baack, Donald. III. Title.
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12 13 14 15 16 10 9 8 7 6 5 4 3 2 1
Brief Contents Preface xxv About the Authors
Part I. Essentials
xxxii of International
Marketing
1
Chapter 1. Introduction to International Marketing
2
Chapter 2. Country Selection and Entry Strategies
36
Chapter 3. Global Trade and Integration
72
Part II. International Markets
and
Market Research
113
Chapter 4. Markets and Segmentation in an International Context
114
Chapter 5. International Positioning
156
Chapter 6. Market Research in the International Environment
190
Part III. International Product Marketing
225
Chapter 7. International Product and Brand Marketing
226
Chapter 8. International Product Standardization and Adaptation
262
Part IV. International Pricing
and
Finance
297
Chapter 9. International Pricing
298
Chapter 10. International Finance and Pricing Implications
334
Part V. International Place
Distribution
371
Chapter 11. International Marketing Channel Management
372
Chapter 12. International Distribution: Exporting and Retailing
406
or
Part VI. International Promotion
and
Personal Selling 439
Chapter 13. Globally Integrated Marketing Communications
440
Chapter 14. International Sales Promotions and Public Relations
480
Chapter 15. International Personal Selling and Sales Management
512
Chapter 16. International Marketing Planning, Organization, and Control
548
Appendix A: Comprehensive Cases
A-1
Appendix B: Notes
B-1
Appendix C: Glossary
C-1
Credits D-1 Name Index
E-1
Subject Index
F-1
Country Index
G-1
Detailed Contents Preface xxv About the Authors
Part I. Essentials
xxxii of International
Marketing
Chapter 1. Introduction to International Marketing Opening Vignette: Facebook.com: Global Marketing Opportunities and Connectivity 3 Overview 6 The Worldwide Marketplace 6 Types of Global Businesses 7 Company Orientation 7 The Essence of Marketing 9 The Marketing Mix 10 Markets, Needs, and Wants 11 Segmentation, Target Markets, and Positioning (STP) 12 Marketing in an International Context 12 The Drivers of Globalization 13 Channels of Communication 13 Lower Transportation Costs 14 Immigration and Emigration 14 Governmental Actions 15 The Factors That Create International Marketing Complexity 15 Culture 16 Language 16 Political and Legal Systems 17 Economic Systems 18 Infrastructure 19 Implications 20 International Marketing in Daily Life 21 Drivers of Globalization: An Illustration 22 Factors That Create International Marketing Complexity: An Illustration 23 The International Marketing Context 24 The Organization of This Book 24 Part I: Essentials of International Marketing 26 Part II: International Markets and Market Research 26
1 2
Part III: International Product Marketing 26 Part IV: International Pricing and Finance 27 Part V: International Place or Distribution 27 Part VI: International Promotion and Personal Selling 28 Sustainability and the Bottom-of-the-Pyramid 28 Sustainability 28 Bottom-of-the-Pyramid 29 Ethical Decision-Making and International Marketing 30 Strategic Implications 31 Tactical Implications 31 Operational Implications 31 Terms 32 Review Questions 32 Discussion Questions 32 Analytical and Internet Exercises 33 Case 1. Carrefour: Retailing in an International Marketplace 34 Chapter 2. Country Selection and Entry Strategies Opening Vignette: Teens and Jeans: Clothing in Transition 37 Overview 39 Economic Systems 40 Market Economy 40 Command Economy 41 Mixed Economy 42 Economic Development 42 Most-, Less-, and Least-Developed Economies 43 Rostow Modernization Model 44 Emerging Markets 45 Newly Industrialized Countries 46 Transition Economies 46 Effects on International Marketing 48 Stage of Development and Bottom-of-the-Pyramid 49 Global Competition and National Competitive Advantage 49 Demand Conditions 50 Related and Supporting Industries 50 Firm Strategy, Structure, and Rivalry 50 Factor Conditions 51 Government 51 Industry-Level Competitive Advantage 52 Threat of New Entrants 52 Threat of Substitute Products 52 Bargaining Power of Suppliers 53 Bargaining Power of Consumers 53 Rivalry Among Competitors 54 Economic Forces and International Marketing 54 Sustainability and International Marketing 55 Modes of Entry 57 Exporting 58 Licensing 58 Franchising 59
36
Joint Ventures 60 Strategic Alliances 60 Wholly Owned Subsidiary 61 Entry Mode Failure and Exit 63 Theories of Entry Mode Selection 63 Internationalization Theory 63 Internalization Theory 64 Eclectic or OLI Theory 65 Analysis 66 Strategic Implications 67 Tactical Implications 67 Operational Implications 67 Terms 68 Review Questions 68 Discussion Questions 68 Analytical and Internet Exercises 69 Case 2. Mobile Communications: Entry Into Africa 70 Chapter 3. Global Trade and Integration Opening Vignette: Kikkoman Soy Sauce: A Tradition of Trade 73 Overview 74 Free Trade 75 Absolute Advantage 75 Comparative Advantage 76 The Benefits of Free Trade 79 Governmental Policies Supporting Trade 80 Integration 81 Levels of Integration 81 Reasons for Integration Success 81 Integration Trends 82 The World Trade Organization and Integration 83 European Integration 86 The European Union 86 Organization of the European Union 89 Beefs Export in the European Union 90 Other European Trade Organizations 91 Integration in the Americas 92 North American Free Trade Agreement 92 Southern Cone Common Market 93 Andean Community 94 Other Trade Organizations or Agreements 95 Integration in Asia, Africa, and the Middle East 96 Association of Southeast Asian Nations Free Trade Area 96 Asia-Pacific Economic Cooperation 97 Trans-Pacific Strategic Economic Partnership Agreement 97 South Asian Association for Regional Cooperation 98 Beef Exports in Asia 99 Integration in the Middle East and Africa 99 Protectionism vs. Free Trade 103 Government Policies Limiting Trade 103
72
Arguments for Protectionism 104 The Future 106 Legal and Ethical Issues 106 Strategic Implications 108 Tactical Implications 108 Operational Implications 108 Terms 108 Review Questions 109 Discussion Questions 109 Analytical and Internet Exercises 109 Case 3. DHL and Facilitating Small Business Trade 111
Part II. International Markets
and
Market Research
Chapter 4. Markets and Segmentation in an International Context Opening Vignette: Musical Segmentation 115 Overview 117 Markets and Segmentation 118 Culture 118 Origins of Culture 118 Creating Cultural Consumption: Carnival 121 Culture and Values 122 Applying Cultural Values to Marketing Activities 122 Value Levels 123 Culture and Behaviors 126 Cultural Imperatives 126 Cultural Electives 126 Cultural Exclusives 127 Culture and Purchasing Behavior 127 Aesthetics 127 Religion 128 Subcultures and Countercultures 130 Cultural Change 130 The Nature of Markets 131 The STP Approach 131 International Market Segmentation 131 International Consumer Market Segments 132 Demographics 132 Psychographics 134 Geographic Area 135 Geodemographic Segmentation 135 Benefit Segmentation 135 Consumer Types 136 Usage Segmentation 137 International Business-to-Business Market Segmentation 137 Segmentation by Industry 138 Segmentation by Size 138 Geographic Location 138 Product Usage 139
113 114
Customer Value 139 Dual Channel Marketing 139 Regional and National Segmentation 140 Wants and Needs 140 Money to Spend 140 Willingness to Spend 141 Language 141 Regionally Based Market Segments 142 Segmentation and the Bottom-of-the-Pyramid 142 Products 143 Pricing 143 Delivery 144 Promotion 144 Green Marketing and Sustainability-Oriented Segments 145 Consumer Preferences 145 Green by Necessity 145 A Market Segment Analysis 145 Assessing Market Potential 146 Assessment Criteria 147 Ethical Issues in International Segmentation 147 Strategic Implications 149 Tactical Implications 149 Operational Implications 149 Terms 150 Review Questions 150 Discussion Questions 151 Analytical and Internet Exercises 151 Case 4. Electrolux: Refrigeration and Segmentation 153 Chapter 5. International Positioning Opening Vignette: The Wide World of Tea 157 Overview 159 The Nature of International Product Positioning 160 Positioning Statements and Approaches 160 Product Attributes 160 Competitors 161 Use or Application 161 Price-Quality Relationships 161 Product User 162 Product Class 162 Cultural Symbol 163 International Positioning Objectives 163 Brand Equity 164 Brand Parity 164 International Product Positioning Challenges 165 Changes in Technology 165 Country-of-Origin Effects 166 Regulations 169 Packaging and Labels 170 International Positioning Methods 170 Identify Target Markets 170 Analyze Competition Within the Target Market 171
156
Identity Points of Difference 174 Enhancing Position or Repositioning 177 Sustainability and International Positioning 180 Ethical Issues in International Positioning 182 Strategic Implications 183 Tactical Implications 183 Operational Implications 183 Terms 184 Review Questions 184 Discussion Questions 185 Analytical and Internet Exercises 185 Case 5. TOTO: Positioning Plumbing Products Globally 187 Chapter 6. Market Research in the International Environment Opening Vignette: Focus on Cosmetics 191 Overview 193 Market Research 194 The Scientific Method 194 Objectivity 194 The Pace of Change 195 Types of International Market Research 195 Product Research 195 Pricing Research 196 Promotion Research 196 Distribution Research 197 The International Market Research Process 197 Defining the Problem or Situation 198 Complete a Cost/Benefit Analysis 198 Develop a Research Design 199 Secondary Data 199 Primary Data 200 Reliability and Validity 201 Micro-Level Analysis 202 Macro-Level Analysis 202 Qualitative and Quantitative Research 204 Qualitative Methods 204 Quantitative Methods 206 Online Research: A Hybrid Approach 209 Develop a Sample 209 Sampling Issues in International Research 210 Calculating the Sample Size 211 Collect Data 212 Analyze and Interpret Data 213 Linguistic Problems 213 Metric Equivalence Issues 213 Socially Desirable Responses 214 Formulating Conclusions and Writing Reports 215 Ethics and International Market Research 215 Bottom-of-the-Pyramid and International Market Research 216 Control of the International Market Research Process 216 Strategic Implications 218
190
Tactical Implications 218 Operational Implications 218 Terms 218 Review Questions 219 Discussion Questions 219 Analytical and Internet Exercises 220 Case 6. The “Mobile You” Breathalyzer 221
Part III. International Product Marketing
225
Chapter 7. International Product and Brand Marketing
226
Opening Vignette: A Good Night’s Sleep 227 Overview 229 Types of Products 230 Classifications of Products 230 Convenience Products 230 Shopping Products 231 Specialty Products 232 Product Dimensions 233 International Product Mix Management 234 Product Lines and Mix 234 Packaging 234 Labeling 236 Sustainability and International Product Marketing 237 International Business Products 237 Raw Materials 238 Maintenance, Repair, and Operating Supplies 238 Component Parts 238 Accessory Equipment 239 Business Services 239 Process Materials 239 Installations 239 Distinctions Between Business and Consumer Products 239 Bottom-of-the-Pyramid International Product Marketing 240 International Product Support Services 240 International Services 241 International Product Quality Standards 242 Quality Standards 243 The Product Life Cycle 243 Development 244 Introduction 245 Growth 245 Maturity 246 Decline 246 Product Cycle Theory 247 Market/Product Matrix 247 Market Penetration 248 Product Development 248 Diversification 248 Market Development 248 Implications 249 International Brand Management 249 Family and Individual Branding 250
Brand and Product Line Extensions 250 Cobranding 250 Building Powerful International Brands 251 Brand Awareness 251 Brand Meaning 252 Brand Loyalty 252 Double Jeopardy 253 Brand Valuation 253 Implications for Managers 253 Ethical Issues in International Product Marketing 254 Strategic Implications 256 Tactical Implications 256 Operational Implications 256 Terms 257 Review Questions 257 Discussion Questions 257 Analytical and Internet Exercises 258 Case 7. Interface: Prize-Winning, Sustainable Modular Flooring 260 Chapter 8. International Product Standardization and Adaptation Opening Vignette: McDonald’s Global Expansion: Adaptation and Differences in Taste 263 Overview 265 Legal Systems 266 International Intellectual Property Protection 266 Intellectual Property Piracy 267 Corporate Spying 267 Reverse-Engineering 268 Country Development 268 International Dispute Resolution 269 Jurisdiction 270 Methods of Dispute Resolution 270 Marketing Implications 272 Standardization 272 Service Standardization 274 Adaptation 274 Laws and Adaptation 275 Adaptation of Services 277 Service Quality 278 Adaptation and Service Quality 279 Music: Legal Systems, Standardization, and Adaptation 279 Legal Adaptation 280 Combining Standardization and Adaptation 282 The Product and Communication Adaptation Model 282 Sustainability and Adaptation 284 Global Innovation 285 Types of Adopters 286 Global Product Diffusion 287 New Product Development and the Bottom-of-the-Pyramid 288
262
Ethical Issues in Standardization and Adaptation 288 Ethics and Laws 288 Strategic Implications 289 Tactical Implications 289 Operational Implications 289 Terms 290 Review Questions 290 Discussion Questions 290 Analytical and Internet Exercises 291 Case 8. AB InBev: Adapting Beer Products in Global Markets 292
Part IV. International Pricing
and
Finance
Chapter 9. International Pricing Opening Vignette: Wind Turbines in Finland: Pricing Sustainability and Economic Incentives 299 Overview 301 The Nature of Price 302 International Prices 303 Price and Perception 303 Value Considerations 303 Emotional Factors 305 Situational Factors 305 International Pricing Methods 306 Cost-Based Pricing 307 Demand- /Supply-Based Pricing 309 Competition-Based Pricing 313 Competition-Based Price Setting for New Products 314 Profit-Based Pricing 315 International Consideration in Pricing Goals 317 Pricing to Bottom-of-the-Pyramid Consumers 319 International Pricing Discounts 321 Loss Leader 321 Seasonal Discounts 322 Quantity Discounts 322 Early-Payment Discounts 323 Channel Discounts 323 Price Changes in International Markets 323 Price Reductions 324 Price Increases 324 Weber’s Law 325 Ethical Issues in International Pricing 326 Collusion 326 Predatory Pricing 326 Deceptive Pricing 326 Dumping 327 Strategic Implications 328 Tactical Implications 328 Operational Implications 328 Terms 329 Review Questions 329 Discussion Questions 329
297 298
Analytical and Internet Exercises 330 Case 9. LaPoste: Pricing Banking Services 332 Chapter 10. International Finance and Pricing Implications
334
Opening Vignette: Pricing ArcelorMitall Steel Globally: The Effects of Currency Changes 335 Overview 337 International Products 338 Money and Currency 338 Currency 338 International Finance 341 Capital Markets 341 The Financing of Transactions 342 The Nature of Currency Exchange 342 Computing Exchange Rates 343 Factors That Affect Currency Movement 344 Individual and Business Transactions 345 Trade and Investment Activity 346 Trade Deficits 348 Inflation 349 Interest Rates 350 The Law of One Price and Purchasing Power Parity 350 Purchasing Power 351 Purchasing Power Parity 351 Governmental Activity and International Finance 353 Currency Regimes 353 Global Currency Institutions 355 Managing Currency Risk 357 Predicting Currency Risk 357 Hedging Currency Risk 358 The Basics of International Finance Funding 358 Financing Ongoing Trade Operations 359 Internal Pricing 361 International Finance and International Marketing 361 Markets 361 Products 362 Prices 362 Place (Distribution) 364 Promotion 364 Strategic Implications 365 Tactical Implications 365 Operational Implications 365 Terms 366 Review Questions 366 Discussion Questions 366 Analytical and Internet Exercises 367 Case 10. Microfinance and Bottom-of-the-Pyramid Consumers 368
Part V. International Place
or
Distribution
Chapter 11. International Marketing Channel Management Opening Vignette: Fruit Around the World 373 Overview 375
371 372
International Marketing Channels 375 International Marketing Channel Decisions 376 Distribution Intensity 376 Selection of Distribution Channels 377 Direct Marketing 378 Indirect Channels 379 Channel Length 381 Selection Factors 381 Standardization of Channel Structure 382 Environmental Factors and International Marketing Channel Decisions 382 Existing Channels 383 Future Channels 383 Managing International Distribution Channels 384 Establishing International Channel Strategies 385 Selecting Intermediary Arrangements 386 Gray Markets 387 Making Channel Arrangements and Choosing Channel Partners 388 Managing Channel Power 388 Trust and Commitment in International Marketing Channels 390 Cross-Cultural Negotiation and International Marketing Channels 390 Stages in the Negotiation Process 390 Cultural Influences on Negotiations 392 International Marketing Channel Functions 394 Research Market Needs 395 Promote Products 395 Order Processing 396 Communicate With Channel Members 396 Warehousing, Inventory Control, and Materials Handling 397 Address Discrepancies of Assortment 397 Secure Payment and Extend Credit 398 Transportation 398 International Marketing Channel Structure 398 Cost 398 Coordination 399 Coverage 399 Cooperation 399 Control 399 Strategic Implications 401 Tactical Implications 401 Operational Implications 401 Terms 401 Review Questions 402 Discussion Questions 402 Analytical and Internet Exercises 402 Case 11. JDA Software Services 404 Chapter 12. International Distribution: Exporting and Retailing Opening Vignette: Exporting and the Business-to-Business Market: Alibaba.com 407 Overview 409 Exporting Choices 409 Internal Reasons for Exporting 410 External Reasons for Exporting 412
406
Market Selection 413 Export Entry Modes 413 Home-Based Direct Exporting 414 Foreign-Based Direct Exporting 414 Indirect Exporting 415 Pricing Exports 416 Exporting Documentation 416 Regulations and Documentation 417 Export and Import Licenses 417 Financing 417 Physical Distribution 419 Materials Handling 419 Inventory Location 419 Inventory Control 420 Order Processing 422 Methods of Transportation 422 Sustainability and International Distribution Systems 425 Radio Frequency Identification Development and International Transportation 425 International Distribution and the Bottom-of-the-Pyramid 426 Terrorism and International Marketing Channels 427 International Marketing Channels and Utility 427 International Retailing 428 Types of International Retail Outlets 429 Convenience Stores 429 Supermarkets 429 Hypermarkets 429 Open Air Markets and Bazaars 430 Department Stores 430 Discount Stores 430 Specialty Stores 431 Online Retailing 431 The Future 432 Strategic Implications 433 Tactical Implications 433 Operational Implications 433 Terms 434 Review Questions 434 Discussion Questions 434 Analytical and Internet Exercises 435 Case 12. Tesco Targets China 436
Part VI. International Promotion
and
Personal Selling 439
Chapter 13. Globally Integrated Marketing Communications Opening Vignette: Advertising Jewelry 441 Overview 443 The Communication Process 444 Individual Interpersonal Communications 444 Barriers to Communication 445 Overcoming Barriers to Communication 450 Communicating Marketing Messages 450
440
International Advertising Management 451 Establish International Advertising Objectives 452 Create an International Advertising Budget 452 Choose an Advertising Agency 453 Oversee the Advertising Program 454 Media Selection Factors 456 Assess Advertising Effectiveness 457 Standardization or Adaptation 458 International Law and Globally Integrated Marketing Communications 459 Message Design: Types of Appeals 459 Cultural Paradoxes 462 International Advertising Appeals 463 Advertising Executional Frameworks 466 Traditional Executional Frameworks 467 International Executional Frameworks 468 Alternative Marketing Programs 470 Buzz Marketing 471 Guerilla Marketing 472 Product Placements and Branded Entertainment 473 Lifestyle Marketing 473 Ethical Issues in International Advertising 474 Strategic Implications 476 Tactical Implications 476 Operational Implications 476 Terms 477 Review Questions 477 Discussion Questions 477 Analytical and Internet Exercises 478 Case 13. Mobile Phone Marketing 479 Chapter 14. International Sales Promotions and Public Relations Opening Vignette: Marketing Headaches 481 Overview 483 Sales Promotions and the Communication Process 483 International Sales Promotions 484 Push vs. Pull Strategies 484 International Consumer Promotions 485 Coupons 487 Premiums 488 Bonus Packs 488 Contests and Sweepstakes 489 Rebates 490 Price-off Promotions 490 Sampling 491 Social Media and Consumer Promotions 492 Legal Issues in Consumer Promotions 493 Types of Consumers and International Consumer Promotions 493 Consumer Promotions and Bottom-of-the-Pyramid Consumers 494 International Trade Promotions 494 Trade Shows 494 Trade Allowances 495
480
Cooperative Advertising 497 Trade Contests 497 Training Programs 497 Point-of-Purchase Materials 497 Challenges 498 International Sales Promotions Campaign Management 498 Consumer Promotions 500 Trade Promotions 501 International Public Relations 502 Channel Members 502 Addressing Negative Publicity and Events 502 Positive Publicity and Image-Enhancing Events 503 Social Media and Public Relations 505 Marketing Implications 506 Strategic Implications 507 Tactical Implications 507 Operational Implications 507 Terms 508 Review Questions 508 Discussion Questions 508 Analytical and Internet Exercises 509 Case 14. Nestlé, S.A. 510 Chapter 15. International Personal Selling and Sales Management Opening Vignette: International Personal Selling and Real Estate: Complications and Opportunities 513 Overview 515 The Nature of Personal Selling 515 Retail Selling 516 Business-to-Business Personal Selling 516 Culture and International Personal Selling 517 Cultural Context 517 Time and Cultural Context 518 Individualism/Collectivism 518 Transactions vs. Relationships 518 Business Etiquette 519 Cultural Adaptation 522 International Business-to-Business Selling 523 Prospecting 523 Preapproach 524 Approach 525 Presentation 526 Negotiation 526 Handling Objections 528 Closing 528 The Follow-Up 530 International Sales Force Composition 530 Technology and International Sales Force Composition 531 Sales Teams 532 Foreign Language Skills and International Sales 532 International Sales Force Management 533 Recruiting and Selection 533
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Training 534 Motivation 535 Evaluation 538 Compensation 540 Salary 540 Commissions 540 Salary Plus Commission 541 Bonuses 541 Benefits and Allowances 541 Repatriation 542 Repatriation Knowledge Acquisition 542 Management Issues 542 Strategic Implications 544 Tactical Implications 544 Operational Implications 544 Terms 545 Review Questions 545 Discussion Questions 545 Analytical and Internet Exercises 546 Case 15. Oriflame and the Indian Marketplace 547 Chapter 16. International Marketing Planning, Organization, and Control Opening Vignette: Nintendo: Marketing Strategies in a Turbulent Environment 549 Overview 551 International Marketing and Strategic Planning 551 International Marketing Efficiency and Effectiveness 552 Planning Levels 552 International Strategic Planning 553 International Marketing Organization 556 Organizational Structures 556 Internal Factors and Organizational Design 561 External Factors and Organizational Design 563 International Marketing Tactics and the Marketing Plan 564 The International Marketing Plan 565 Planning Tactics and Strategic Plans 566 Internal Marketing Communications 566 International Internal Communications 566 Formal Communication in Global Companies 566 Barriers to International Formal Communications 568 Overcoming Barriers to Formal Communications 569 International Marketing Control 570 Control Measures 571 Corrections 571 Emerging Trends in International Marketing 573 Technological Issues 573 Cultural Issues 574 Economic Issues 575 Emerging Markets Ascending 577 Bottom-of-the-Pyramid 578 Strategic Implications 579 Tactical Implications 579 Operational Implications 579
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Terms 579 Review Questions 580 Discussion Questions 580 Analytical and Internet Exercises 581 Case 16. Virgin Galactic and Space Travel 582 Appendix A: Comprehensive Cases
A-1
Case 1. Alpen Bank: Launching the Credit Card in Romania A-1 V. Kasturi Rangan and Sunru Yong Case 2. United Cereal: Lora Brill’s Eurobrand Challenge A-8 Christopher A. Bartlett and Carole Carlson Case 3. Clayton Industries: Peter Arnell, Country Manager for Italy A-17 Christopher A. Bartlett and Benjamin H. Barlow Case 4. Best Buy Inc.: Dual Branding in China A-29 R. Chandrasekhar Case 5. La Hacienda del Sol A-43 Neeta Khera Case 6. Dabur India A-50 Manish Khandelwal Appendix B: Notes
B-1
Appendix C: Glossary
C-1
Credits D-1 Name Index
E-1
Subject Index
F-1
Country Index
G-1
Preface “Marketing is marketing, no matter where you are. There is still a marketing mix. The focus continues to be on creating value for customers and building relationships with them. It just becomes a great deal more complicated when you operate on an international scale.” This observation by a noted international marketing instructor succinctly summarizes the challenges international marketers face. Globalization, technological advances, economic upheaval, political shifts, and cultural trends are transforming society at an escalating rate. In this ever-changing global environment, the field of marketing must continually adapt to remain on the cutting edge. Communicating the complexities and nuances of marketing on an international scale in a single course can be a daunting task for instructors. Students taking this course also face a unique set of obstacles. We believe many international marketing textbooks currently available complicate these challenges by focusing too much on international business in the first portion of the book and then introducing marketing topics later on. Instead of segregating the two topics, we concluded that a better approach would be to present marketing in an international context. We wrote this book out of our desire to help resolve some of the issues confronting both students and professors.
Market and Course The textbook is for undergraduate courses in international marketing. It also can be used in undergraduate international business courses and in topical international marketing courses at the MBA level.
Instructor Challenges The international marketing course is typically taught by either a marketing instructor or a business instructor. Marketing instructors, including Daniel Baack, the lead author on this book, often find the standard international marketing textbook to be fairly daunting, especially the opening chapters, which are typically packed with international business concepts. The pages are filled with charts, tables, and statistics that can overwhelm the reader. This group of instructors may be inclined to gloss over these topics and move quickly to the more standard marketing materials presented. When international business instructors teach the course, they may be more inclined to focus on international business concepts and are tempted to cover marketing material in less depth. In essence, neither the needs of the marketing instructor nor the needs of the business instructor are met by the currently available textbooks. Our book utilizes an integrated framework designed to cover both the international business and the
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marketing concepts found in traditional international marketing textbooks in a new and integrated way, meeting the wants of both types of instructors.
Student Challenges Students encounter several major challenges when taking an international marketing course. First, many students will have been exposed to only one of two topics areas. Some students may have already taken international business courses but have had little exposure to marketing. Other students may have backgrounds in marketing but an international marketing course might be their first and only exposure to international business. In essence, students taking this course may have little experience in marketing, international business, or both. We have endeavored to present the material in a manner that engages and reaches all three groups of students. To assist students in learning the concepts, each chapter opens with a figure that integrates five key international business elements with the main elements in marketing. The figure provides students with a visual illustration of the connections between the marketing elements presented in the chapter with the most closely associated international business issues. Some students may struggle when trying to integrate marketing concepts with international business concepts. The textbooks that begin with an overview of international business and then discuss marketing may worsen this problem by segregating the two topics and diluting the marketing focus. To help overcome this obstacle to learning, we outline the differences and similarities in domestic and foreign markets while maintaining a strong focus on core marketing concepts. This assists in understanding how to conceptualize the international marketing process. The third complication some students face can be either ethnocentrism or a degree of naïveté. We try to overcome these impediments to learning with careful attention to the nature of culture and the cultural nuances of countries around the world. Our goal is to expand student awareness and understanding along with acceptance and appreciation of business practices in other parts of the world. We have created features and selected photographs designed to help students engage more deeply with the chapter materials. The International Incident boxes challenge students to make ethical or cultural decisions in international situations. The International Marketing in Daily Life boxes reveal how products they use in their everyday lives are impacted by global marketing.
Our Approach We have backgrounds in marketing, international business, brand management, consumer behavior, market research, management, and marketing communications. We hope our academic and professional experiences and areas of expertise helped us to design a textbook that provides an important and fresh contribution to the field of international marketing. There are several primary differences and advantages between our book and the books currently available: core marketing concepts are integrated with international business principles, an emphasis on bottom-of-thepyramid markets, and the incorporation of sustainability concepts.
INTEGRATED APPROACH As noted, in this book we utilize an integrated framework that combines marketing concepts and international business concepts. This integrated approach was designed to ameliorate
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the challenges that students and instructors face. To do so, five key international business principles are defined in the opening chapter of the text: • cultural differences • language differences • political and legal differences • economic differences • technological/operational differences These concepts are placed into a figure along with the five key marketing elements: markets, products, prices, distribution (place), and promotion. The figure reappears in each chapter, noting when each will be given special emphasis as the topics are presented. Next the text moves directly into the primary marketing areas (markets and the 4 Ps) and concludes with operational, organizational, and managerial issues. International business concepts are presented in depth at points in which they have the greatest value in demonstrating international marketing concepts.
BOTTOM-OF-THE-PYRAMID One major international target market consists of individuals who earn less than $2 per day. The bottom-of-the-pyramid segment is large and increasingly relevant to international marketing scholars and practitioners. The relatively untapped nature of the market appeals to many international companies. We argue that targeting this group of 4 billion people is viable and could lead to more efficient processing and innovations. We have incorporated issues associated with reaching this group in each chapter throughout the book.
SUSTAINABILITY Sustainable business practices are of growing significance. Many students express strong interests in the topic. Sustainability issues are noted in the text, in various chapteropening vignettes, and in end-of-chapter cases. We also link sustainability to bottomof-the-pyramid marketing because these two crucial forces have generated a dramatic impact on globalization and international marketing programs. Successfully targeting the bottom-of-the-pyramid segment often necessitates the incorporation of business practices that emphasize sustainability. The synthesis of these themes provides a rich context for the exploration of international marketing concepts.
Features To help students think critically about the concepts and principles provided throughout the text, we developed a series of features designed to reinforce learning and help maintain reader interest.
OPENING VIGNETTES The chapters begin with presentations about companies with an international marketing presence or about widely-used products such as aspirin and fruit. Each vignette effectively sets the stage for the chapter material. Three questions then are posed to help students reflect on the company and prepare them to read about and discuss the issues that follow in the chapter materials.
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INTERNATIONAL INCIDENTS Each chapter contains brief boxes that describe an unusual event or challenge that arises in a specific international setting. Each hypothetical scenario is accompanied by discussion questions in a “What would you do?” type of approach. This helps foster critical thinking and prepares students for situations that will come up as they work in a global economy.
INTERNATIONAL MARKETING IN DAILY LIFE Throughout the text, we note that many international marketing efforts deal with products that are not “sexy” or high-tech. In fact, items as mundane as toothbrushes, headache remedies, and toilets represent approachable markets for international companies. The incorporation of these products as illustrations helps explain how marketing works on a global scale when seeking to sell everyday life products, recognizing that the same concepts often apply to more glamorous and sophisticated items.
STRATEGIC, TACTICAL, AND OPERATIONAL IMPLICATIONS This book does not provide the standard summary section at the end of each chapter. Instead, each chapter’s materials will be reviewed under three headings: Strategic Implications, Tactical Implications, and Operational Implications. Strategic implications allow students to a integrate materials at the conceptual level, typically at the level of decision making directed by a company’s CEO and top management teams. Tactical implications link strategic concepts to the various marketing functions, such as advertising, personal selling, and creating promotions. Operational implications explain the practical implementation of the various international marketing tools at the individual level, such as how a program might affect an individual salesperson in a retail store. This approach not only summarizes the materials but also integrates analytical thinking with actual marketing practices.
END-OF-CHAPTER RESOURCES We created end-of-chapter resources for several reasons. We wanted to give students the opportunity to assess their understanding of the chapter, apply ideas and concepts in various settings, use mathematical and statistical methods when applicable, generate discussion, and analyze a case. Each chapter concludes with the following: Terms. Each bolded key term defined in the text is presented in the same order each appears in the chapter to help students both review the chapter and reexamine the terms to make sure they understand them. Review Questions. Brief questions were written for each chapter to help students quickly summarize and test their comprehension of what they have read in the chapter. These questions appear in the order that chapter concepts have been presented and are designed to highlight and test the primary points, concepts, and definitions addressed in the chapter. Discussion Questions. These items can be used for individual analyses of marketing management concepts or to guide in-class conversations. Some of the questions require students to apply the mathematical and statistical models and formulas they have learned about in the chapters. Analytical and Internet Exercises. Completing these exercises provides students with the opportunity to apply what they have learned in the chapter. The items are often web-based assignments that challenge students to use their analytical skills.
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Cases. Each chapter concludes with a brief case designed to illustrate the major concepts in the chapter. Case questions can be used for class discussion or completed as an assignment. Comprehensive Cases. Six comprehensive cases provided at the end of the book spotlight various international companies. The cases are designed to challenge students’ abilities. They require an in-depth analysis and synthesis of the case material with textbook material. The cases are also accompanied by questions that lead students to apply knowledge across multiple chapters.
BOOK DESIGN We hope you agree that this book is visually exciting. Our thanks to Ryan Kuo from clearspace.tw for his willingness to share pictures from his many global travels. By incorporating photographs and advertisements from around the world, we believe the text comes alive. We hope the colorful and meaningful graphs, tables, and photos will appeal to the visual learner.
Ancillaries FOR THE INSTRUCTOR The password-protected Instructor Teaching Site available at www.sagepub.com/ baack gives instructors access to a full complement of resources to support and enhance their course. The following assets are available on this site: • An author-created Test Bank contains multiple-choice, true/false, short-answer, and essay questions for each chapter. The test bank is provided on the website in Word format as well as in an electronic format that can be exported into popular course management systems such as Blackboard or WebCT. • The book’s authors also developed PowerPoint slides for each chapter. They can be used for lecture and review. Slides are integrated with the book’s distinctive features and incorporate key tables, figures, and photos. • Video Resources vividly illustrate key information in each chapter. Video icons are strategically placed within the textbook to indicate where a video resource is available on the companion site. These links allow both instructors and students to access videos directly related to the content. • Full-text SAGE Journal Articles accompany each chapter, providing extra commentary and analysis on important topics from SAGE’s marketing journals. • Answers to End-of-Chapter and Discussion Questions provide valuable tools for facilitating classroom discussions. • Suggested Class Assignments offer instructors a wide range of group and individual activities designed to enhance student learning. • Learning Objectives and Chapter Outlines from the book provide an essential teaching and reference tool. • Sample Course Syllabi for quarter and semester systems include suggestions for structuring an international marketing course. • Country Fact Sheets provide detailed information and unique facts about various countries highlighted in the text.
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FOR THE STUDENT The open-access Student Study Site available at www.sagepub.com/baack is designed to maximize student comprehension of international marketing and to promote critical thinking and application. The following resources and study tools are available on the student portion of this book’s website: • Flashcards reiterate key chapter terms and concepts. • Self-quizzes include multiple-choice and true/false questions, allowing students to test their knowledge of each chapter. • Learning Objectives and Chapter Outlines from the book provide an essential study tool. • Video Resources vividly illustrate key information in each chapter. Video icons are strategically placed within the textbook to indicate where a video resource is available on the companion site. These links allow both instructor and student to access videos directly related to the content. • Full-text SAGE Journal Articles accompany each chapter, providing extra commentary and analysis on important topics from SAGE’s marketing journals. • Interactive Maps allow students to increase their knowledge of geography and engage with course content in a dynamic and meaningful way. • Country Fact Sheets provide detailed information and unique facts about various countries highlighted in the text. • Guidelines for Developing an International Marketing Plan are included.
Acknowledgments There are many persons who have assisted us in the development of this book. We would first like to acknowledge our executive editor Lisa Shaw for her tremendous support and enthusiasm. We are very grateful to Deya Saoud Jacob for her initial interest in signing this project and for her later editorial work. A special word of appreciation goes to Maggie Stanley for her assistance, as well as to Theresa Accomazzo. We would also like to note the work of Helen Salmon with regard to marketing the book. We would like to thank the following individuals who assisted in the preparation of the manuscript through their careful and thoughtful reviews: Mark Young, Winona State University Ruth Lesher Taylor, Texas State University Yun Chu, Robert Morris University Laurie Babin, University of Louisiana at Monroe Brent Smith, Erivan Haub School of Business, St. Joseph’s University Douglas Hausknecht, University of Akron John Gironda, Florida Atlantic University at Boca Raton William Lesch, University of North Dakota Eric C. Wittine, John Carroll University Xueming Luo, University of Texas at Arlington Nicholas Didow, University of North Carolina at Chapel Hill Mark Burgess, Rider University David Crain, Whittier College
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Catherine E. N. Giunta, Seton Hill University John Hadjimarcou, University of Texas at El Paso Ron Lennon, University of South Florida at Tampa Melissa Huffman Malabad, Mary Baldwin College Mary Lee Stansifer, University of Colorado at Denver Loy Watley, Nebraska Wesleyan University Fekkri Meziou, Augsburg College Ken Fairweather, Letourneau University Finola Kerrigan, King’s College, London Robert A. Lupton, Central Washington University Mark Mitchell, Coastal Carolina University Ben Oumlil, Western Connecticut State University Al Rosenbloom, Dominican University Mee-Shew Cheung, Xavier University Andrew C. Gross, Cleveland State University Donald Hsu, Dominican College George V. Priovolos, Hagan School of Business, Iona College Finally, Daniel Baack would like to thank his father Donald for inviting him to work on this project. It has been memorable and enjoyable, and has led to much learning about writing. He will always be grateful for the opportunity to publish a book with his dad; it was a once-in-a-lifetime experience. Thanks also to Eric G. Harris for making this such an enjoyable process. Daniel would also like to thank his mother and grandmother for their support, as well as his three great kids, Andy, Emilee, and Jason. His close friends Jason, Dan, Ben, and Ed, and his brother David provided a valuable stress release throughout the process. His talented brother-in-law, Ryan (Chih-Kuo) Kuo, provided many of the wonderful pictures used in the book. Thanks to him, and Daniel’s wife’s family, for their support. The support of individuals at the University of Denver has also been invaluable, including Carol Johnson, Donald Bacon, and, of course, Gloria Valdez. His graduate assistant, Julia Mariano, provided key last minute contributions. Eric G. Harris would like to thank both co-authors, Donald Baack and Daniel Baack, for their cooperation and for including him on this project. He would like to thank his two children, Christian and Sydney, for their patience and support. He would also like to thank Paula Palmer, administrative specialist, for her assistance with his many work assignments. Finally, he would like to thank his mentor, Dr. John Mowen, for his guidance throughout his career. Donald Baack would like to thank his son Daniel for convincing him to make this journey. Eric and Dan made this an extremely enjoyable project. It has turned into a wonderful learning experience and resulted in some great times while completing the manuscript. He would also like to thank his graduate assistant, Matt Carr, and the office staff, including the student workers in his department at Pittsburg State University, for the help they have given. He would also like to acknowledge his other two children, Jessica and David, and his grandchildren, Rile, Danielle, Andy, Emilee, Jason, Tatum, Damon, Joe, and Tommy. We would like to especially thank our wives, Yen-Wen Kuo, Tara Harris, and Pam Baack, for being patient and understanding during those times when the work seemed monumental. They have been wonderful partners to us over the years.
About the Authors Daniel W. Baack is an assistant professor of marketing and director of the Integrated Marketing Communications Program at the Daniels College of Business at the University of Denver. Previous positions include Ball State University and Saint Louis University, where Professor Baack received his Ph.D. in international business and marketing. Professor Baack has published academic research in the Journal of Advertising, Journal of Advertising Research, Journal of International Management, European Journal of Marketing, Journal of Business Research, International Business Review, Journal of Product and Brand Management, International Journal of Commerce and Management, Journal of Electronic Commerce Research, and the International Journal of Emerging Markets. He serves on the editorial board of the Journal of Promotion Management. Professor Baack is an active member of the Academy of International Business, having attended all but one conference since 2003. When not writing or traveling internationally, Professor Baack stays busy with his Taiwanese wife and their three joint ventures (or children). He also enjoys playing and watching basketball, particularly while in foreign countries. Eric G. Harris is chair and associate professor in the Department of Management and Marketing at Pittsburg State University. He has also served on the faculty at the University of South Florida. He has B.B.A. and M.B.A. degrees from Pittsburg State University, and a Ph.D. in marketing from Oklahoma State University. Dr. Harris’s academic work has appeared in journals such as Journal of the Academy of Marketing Science, Journal of Advertising, Journal of Business Research, Psychology & Marketing, Journal of Personal Selling & Sales Management, Journal of Services Marketing, Journal of Business & Psychology, Journal of Consumer Marketing, and others. He has also contributed to the Wiley International Encyclopedia of Marketing. He also serves on the editorial review boards for Journal of Business Research, Journal of Marketing Theory and Practice, Journal of Services Marketing, and Services Marketing Quarterly, and also serves as a consulting editor for the Journal of Managerial Issues. In addition to International Marketing, Dr. Harris has also published CB “Consumer Behavior” with Cengage Learning (4LTR Press), which is co-authored with Barry
About the Authors xxxiii
Babin. He is affiliated with a number of professional associations, including American Marketing Association, The Academy of Marketing Science, Society of Marketing Advances, and Marketing Management Association, and others. Donald Baack holds the rank of university professor of management at Pittsburg (Kansas) State University. He previously held positions at Southwest Missouri State University, Missouri Southern State College, and Dana College. Baack received his Ph.D. from the University of Nebraska. Professor Baack is a consulting editor and has published in the Journal of Managerial Issues. He has also published in the Journal of Advertising Research, Journal of Euromarketing, Journal of Nonprofit and Public Sector Marketing, Journal of Customer Service in Marketing, Journal of Professional Services Marketing, Journal of Ministry Marketing and Management, Journal of Business Ethics, Journal of Global Awareness, Human Relations, and Journal of Management Inquiry. Dr. Baack has authored International Business (Glencoe/McGraw-Hill) and Organizational Behavior (Dame). He co-authored Integrated Advertising, Promotion, and Marketing Communications (Prentice Hall), Marketing Management (Sage), and The Concise Encyclopedia of Advertising (Haworth) with Kenneth D. Clow. He also has published three popular press books in the area of romance/self-help. Baack has been active in the Southwest Academy of Management. He was nominated for SWAM’s Distinguished Educator award in 2007, 2008, and 2010. He has been recognized as a Distinguished Alumnus at Lincoln (Nebraska) East High School and by Dana College.
