090225 Marketing Doc

Syllabus of International Marketing (bilingual)

(Revised in 2006)

Course No.: 090225

English Name: International Marketing

Course Type: specialty elective course

Prerequisites Courses: Management; Marketing; Marketing English

Post-positive Courses: Marketing Case; CRM

Credit: 2

Time: 36 Hours

Lecturers: Chen Xiaodong; Fan Xiaojun; Zhang Guojun; Wu Zhihua

Textbook: Philip R. Cateora and John L. Graham. International Marketing [M]. China People

University Press，2005.

Course Description:

International Marketing is designed to serve as the text for a first course in international marketing. The field of international business abounds with courses entitled international business, international trade, export trade, global marketing, international marketing management, and international marketing, for which this edition is appropriate. Any international business or marketing course that emphasizes the cultural/environmental aspects of international trade and stresses the integration of culture and marketing functions can use this text effectively.

Teaching Objectives:

An important objective of teaching an international course is to introduce and encourage students to read current business periodicals and journals. Their interest increases when they read current articles that relate to class material. Using this as an assignment throughout the semester provides several advantages: 1) there is always a segment of the class ready with current, relevant topics for class discussion; 2) it provides the professor with an abundance of interesting and current examples to use as a “jumping off point” for discussion of the topic for the day; 3) it has a hidden benefit.

The syllabus of this course suits for the students of marketing.

Teaching Ways:

Case study, teaching and training are adopted in order to introduce international

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marketing knowledge, lead students to read special English materials.

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Requirements and Highlights of Each Chapter

Chapter 1 – The Scope and Challenge of International Marketing

Time: 2 hrs

Requirements: As an introductory chapter, the broad goal is to provide a view of international marketing

that sets the boundaries and scope of the course. The teaching objectives are to:1. Provide students with a broad picture of the global environment within which business

operates today and into the future.2. Give students an appreciation of how the globalization of world markets and the

internationalization of U.S. business and U.S. markets influence all functions of business including marketing.

3. Show how the internationalization or globalization of markets affects their professional futures regardless of where they work in business. In short, just as domestic or international business cannot escape the internationalization of business and U.S. markets, neither can students escape the influences of these international trends on their professional careers.

4. Illustrate the scope of the international marketing task.5. Show the importance of one’s self-reference criterion in assessing international issues.6. Illustrate the stages of becoming international and the international marketing concepts

used in international marketing management.7. Impress students with the importance of becoming globally aware.

Content: I. The Internationalization of U.S. BusinessII. International Marketing DefinedIII. The International Marketing Task

A. Marketing ControllableB. Domestic UncontrollableC. Foreign Uncontrollable

IV. Self-Reference Criterion: An ObstacleV. Becoming International

A. Phases of International Marketing InvolvementB. International Marketing Concepts

1. Domestic Market Expansion Concept2. Multi-Domestic Market Concept3. Global Marketing Concept

C. Global Markets and Global MarketingVI. Developing A Global Awareness

Questions:

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1. How can the increased interest in international marketing on the part of the U.S. firms be explained?

2. Discuss the four phases of international marketing involvement.

3. Discuss the conditions that have led to the development of global markets.

4. Differentiate between a global company and a multinational company.

Chapter 2 — The Global Environment of International Marketing

Time: 2 hrs

Requirements: This chapter has a short history of international trade. Included is a history of GATT and the role of multinationals from the end of World War II through the decade of the nineties and beyond.

The aim of this chapter is to provide a brief overview of the international trade issues that constitute the environment of global business. Issues reflecting the political and economic trade policies that affect how international business is conducted. The teaching objectives are to:

1. Provide some insight into the balance of payments and the relationship of a country’s current account and balance of trade.

2. Show the U.S. government’s role in helping to ease restrictions on trade through the Omnibus Trade and Competitiveness Act.

3. Explore the provisions and effects of protectionism on world trade and to show that no country, including the United States, has “clean hands” when it comes to protecting home markets.

4. Illustrate the types of trade barriers that may confront a business.5. Explore how GATT and the new World Trade Organization are designed to eliminate

trade restrictions and provide a means for countries to settle trade disputes.

Content:

I. GATT and WTO

II. The International Monetary Fund and World Bank Group

III. Protests against Global Institutions

IV. Global Markets and Multinational Market Groups

V. Marketing in a Developing Country

Explaining the basic system of global market and introducing the characteristics of the basic market

VI. Summary

Questions: 1. Discuss the globalization of the U.S. economy.

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2. Differentiate among the current account, balance of trade, and balance of payments.

3. Explain the role of price as a free market regulator.

4. “Theoretically, the market is an automatic, competitive, self-regulating mechanism which provides for the maximum consumer welfare and which best regulates the use of the factors of production.”

5. Interview several local businessmen to determine their attitudes toward world trade. Further, learn if they buy or sell goods produced in foreign countries. Correlate the attitudes and report on your findings.

Chapter 3 – History and Geography–The Foundations of Culture

Time: 2 hrs

Requirements: Understanding the geography and history of a country can help a marketer have a better appreciation for many of the characteristics of its culture. A culture of a people evolves in response to the environment that it confronts. The geography of a country, its topography, climate, physical position relative to other countries affect a culture’s evolution including its marketing and distribution systems. While is impractical for a marketer to be an expert on the geography of every country in the world, it is important for a marketer to understand that geography plays an important role in the economy of a country and its marketing system. One objective of this chapter is to sensitize students to the importance of geography as one of the explanations of a country’s market and economy.The history of a country is also important in understanding many aspects of a culture. In the author’s opinion, it is imperative that an international marketer making a long-term commitment in a country has some knowledge of its history.One cannot fully understand how businesspeople negotiate, how they conduct business, their attitudes toward foreign investment, the legal system, and other aspects of the market/business system without a historical perspective. A historical perspective helps prepare an international marketer for many of the cultural differences that often cause misunderstandings and in many cases, mistakes. While a marketer may not be able to change a person’s attitude or behavior, if you have an historical perspective of why they react as they do, you can gain insights that can possibly make it easier to adapt your strategies for a successful outcome. Today with the importance of NAFTA and its possible expansion throughout Latin America, a knowledge of geography of the region and an appreciation for the history of the region, especially U.S./Latin American relations, is a must in order to be culturally aware. The teaching objectives of this chapter are to:

Help students understand the importance of geography and history in understanding a country’s economy and markets.

Appreciate the effect that topography and climate have on products, population centers, transportation, and economic growth.

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Be sensitive to the growing problem of environmental damage and its effect on business and the social and moral responsibility of each citizen to protect the environment.

Understand the effect of the history of each culture on international marketing.

Content: I. History and Geography: The Foundations of CultureII. Global PerspectiveIII. Historical Perspective in Global Business

A. History and Contemporary BehaviorB. History is SubjectiveC. Manifest Destiny and the Monroe Doctrine

IV. Geography and Global MarketsA. Climate and TopographyB. Geography, Nature and Economic GrowthC. Social Responsibility and Environmental ManagementD. Resources

V. Dynamics of Global Population TrendsA. Controlling Population GrowthB. Rural/Urban MigrationC. Population Decline and AgeingD. Worker Shortage and Immigration

VI. World Trade RoutesVII.Communication LinksVIII. Summary

Questions: 1. Why study geography in international marketing?

2. Why study a country’s history? 3. How does an understanding of history help an international marketer?

4. Why is there a love/hate relationship between Mexico and the United States?

5. Some say the global environment is a global issue rather than a national one. What does this mean?

Chapter 4 – Cultural Dynamics in Assessing Global Markets

Time: 2 hrs

Requirements: Culture in this text is defined in an anthropological sense in that culture refers to the entire social heritage of a group of people. Thus, culture includes a country’s economy, society, behavior, etc. It is imperative for international marketers to learn to appreciate the intricacies of cultures different from their own. A vast majority of the mistakes make by international businesses can be attributed to a lack of understanding some aspect of the culture of a country.

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The teaching objectives of this chapter are to:1) Set the tone for the entire course, which is the importance of culture to an international

marketer.2) Create a strong sensitivity in students to the cultural differences that exist among

countries and the effect of cultural elements on the total fabric of doing business in another country.

3) Re-emphasize the idea of the Self-Reference Criterion (SRC) and its influence on doing business in another culture. The insidious nature of the SRC – that is, you are often unaware of how your SRC is affecting your reaction to an event, your evaluation of a market opportunity or the evaluation of a situation or event, etc. – is especially important to stress in this chapter and throughout the course. Many marketing mistakes and misfires can be explained by someone’s SRC interfering with a proper interpretation of a marketing action. Because cultures are different, often what is obvious and important in your home culture is not so obvious and important in another or vice versa.

4) Explore the strategy of planned change. By understanding how cultures change, companies can overcome resistance to change and accelerate rates of acceptance. This idea is more fully developed in Chapter 12 but the concept can be introduced here.

5) Stress that in many cultures, an international marketer is a change agent in that their activities cause cultural change. Sometimes the consequences of change can be very beneficial but in other cases, change can be harmful – the marketer has the responsibility to guard against causing harmful change.

Content: I. Global Perspective: Equities and eBay—Culture Gets in the WayII. Culture’s Pervasive ImpactIII. Definitions and Origins of Culture

A. GeographyB. HistoryC. The Political EconomyD. TechnologyE. Social Institutions

IV. Elements of CultureA. Cultural ValuesB. RitualsC. SymbolsD. BeliefsE. Thought Processes

V. Cultural KnowledgeA. Factual versus Interpretive KnowledgeB. Cultural Sensitivity and Tolerance

VI. Cultural ChangeA. Cultural BorrowingB. Similarities: An Illusion

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C. Resistance to ChangeD. Planned and Unplanned Cultural ChangeE. Consequences of Innovation

VII. Summary

Questions: 1. Which role does the marketer play as a change agent?

2. Discuss the three cultural change strategies a foreign marketer can pursue. There are three strategies. (a) Culturally congruent strategy, (b) Strategy of unplanned change, (c) Strategy of planned change.

3. “Culture is pervasive in all marketing activities.” Discuss.

4. What is the importance of “cultural empathy” to the foreign marketer? How does he or she acquire “cultural empathy?”

5. Why should a foreign marketer be concerned with the study of culture?

Chapter 5 – Culture, Management Style, and Business Systems

Time: 2 hrs

Requirements: Business customs within a country are an extension of the country’s culture. There are many similarities in how business is conducted from country to country but the differences, if not properly adjusted for, often cause enormous problems.It is not necessary for a businessperson to forsake their ways and to change to conform to local customs but, rather, to be aware of differences and willing to accommodate those differences that can cause misunderstandings. Just as is the case with all cultural differences, a person’s SRC can cause problems when trying to operate under different business customs. The literature is full of examples of misunderstandings between businesspersons from different cultures when each responds to the other from his/her own SRC without an appreciation of the SRC at work. The classic example is time. In some Latin cultures, there is a different urgency placed on time. The punctuality of someone from the United States can appear “pushy, too much in a hurry to make a decision, and so on” while the lackadaisical response to time by a Latin can be erroneously interpreted as being lazy or indifferent. Or, in the United States, calling someone by his or her first name when first introduced implies friendliness but appears as rude or boorish to a Frenchman or German. The teaching objectives of this chapter are to:

1) Acquaint the student with some of the more frequently encountered differences in business customs.

2) Emphasize the importance of adaptation or accommodation to differences in behavior patterns.

3) Discuss those business customs that are important to adapt to since many differences that exist within a culture do not require adaptation.

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4) Become aware of the disparate standards for business ethics that exist and to test one’s own ethical values.

5) Explore a guide to help you make ethical and socially responsible decisions.

Content: I. Business Customs and Practices in Global MarketingII. Global Perspective: Do Blonds Have More Fun in Japan?III. Required Adaptation

A. Degree of AdaptationB. Imperatives, Electives, and Exclusives

IV. The Impact of American Culture on Management StyleV. Management Styles around the World

A. Authority and Decision MakingB. Management Objectives and AspirationsC. Communication StylesD. Formality and TempoE. P-Time versus M-TimeF. Negotiations Emphasis

VI. Gender Bias in International BusinessVII.Business Ethics

A. Corruption DefinedB. The Western Focus on BriberyC. Bribery: Variations on a ThemeD. Ethical and Socially Responsible Decisions

VIII. Culture’s Influence of Strategic ThinkingIX. A Synthesis, Relationship-Oriented vs. Information-Oriented Cultures

Questions: 1. “More than a toleration of an alien culture is required . . . there is a need for affirmative acceptance as different but equal.”

2. “We should also bear in mind that in today’s business-oriented world economy, the cultures themselves are being significantly affected by business activities and business practices.”

3. “In dealing with foreign businesses, the marketer must be particularly aware of the varying objectives and aspirations of management.”

4. Suggest ways in which persons might prepare themselves to handle unique business customs that may be encountered in a trip abroad.

5. Business customs and national customs are closely interrelated. In what way would one expect the

two areas to coincide and in what ways would they show differences? How could such areas of

similarity and difference be identified?

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Chapter 6 – The Political Environment: A Critical Issue

Time: 2 hrs

Requirements: All the cultural elements are important in international marketing but the political element

is by far the most pervasive and must always be examined from both domestic and foreign country perspectives. Regardless of where a company does business, the political element is always a partner and further, often an unpredictable one. Governments both encourage and control business and the goal of an MNC is to take steps to lower its political vulnerability.While confiscation and expropriation have rarely been imposed in the last decade, they are the most severe political risk and can always be imposed. Today, most governments encourage foreign investment but this does not mean that there are no political risks. The teaching objectives of this chapter are to:

1) Political parties and nationalism influence stress that government polices and their stability.

2) Make the point that the U.S. government is just as important in creating political risks for U.S. business, as are foreign governments.

3) Examine the various types of political risks from the most severe, confiscation, to the less severe.

4) Discuss the various ways governments encourage foreign investment.5) Explore the means companies have to reduce political vulnerability and protect their

foreign investment.

Content: The Political Environment: A Critical ConcernGlobal Perspective—Chiquita Bananas and Prosciutto di Parma, Louis Vitton Handbags, Scented Bath Oils and Soaps, and Batteries—Strange Bedfellows from the World of Politics.I. The Sovereignty of NationsII. Stability of Government Policies

A. Political PartiesB. Nationalism

III. Political Risks of Global BusinessA. Confiscation, Expropriation, and DomesticationB. Economic Risks

1. Exchange Controls2. Local-Content Laws3. Import Restrictions4. Tax Controls5. Price Controls6. Political Sanctions

C. Political and Social Activists1. Violence and Terrorism2. Cyber Terrorism

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IV. Assessing Political VulnerabilityA. Politically Sensitive Products and IssuesB. Forecasting Political Risk

V. Reducing Political VulnerabilityA. Good Corporate CitizenshipB. Managing External AffairsC. Strategies to Lessen Political Risk

1. Joint Ventures2. Expanding the Investment Base3. Marketing and Distribution4. Licensing5. Planned Domestication

D. Political PayoffsVI. Government Encourage of Global Business

A. Foreign Government EncouragementB. U.S. Government Encouragement

VII. Summary

Questions: 1. Why would a country rather domesticate than expropriate?

2. “A crucial fact when doing business in a foreign country is that permission to conduct business is controlled by the government of the host country.” 3. What are the main factors to consider in assessing the dominant political climate within a country?

a. Current form of government.

b. Current political party systems.

c. Stability and permanency of government policy.

d. Risks or encouragements of foreign business resulting from political activity.

4. Why is working knowledge of party philosophy so important in a political assessment of a market? 5. How can a change in the political party in Power affect an investor? Discuss and give examples.

Chapter 7 – The International Legal Environment

Time: 2 hrs

Requirements: This chapter deals with two broad issues involving the legal environment. The first issue is concerned with the problems that arise with international commercial contracts and settling disputes when they arise. Since there is no international commercial law or international

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commercial courts, disputes must be settled under the laws of one of the countries where the parties of the contract reside or, if an arbitration clause is included in the contract, by arbitration. Although there is no international commercial law per se, the agreement to enforce arbitration decisions that exists among a large number of countries does create a system that approaches international commercial court. The second issue concerns the common law bases for the U.S. legal system that creates problems for U.S. companies when interpreting the laws in countries whose legal systems are based either on code, socialist, or Islamic law. A review of the different legal systems is important for students to appreciate the problems that arise in protecting such things as intellectual property rights, etc. I continue to discuss socialist law even though most formerly socialist countries are moving toward a different system. My reasoning is that the legacy of a socialist legal system continues to influence how businesspeople think about legal matters. The teaching objectives of this chapter are to:

1) Help students understand the four legal systems of the world’s countries.2) Appreciate the critical nature of jurisdiction when legal disputes arise and thus, the

need for solutions other than litigation.3) Understand the difficulty of protecting intellectual property rights and how those

rights can easily be lost if the company depends on its rights as defined in a common law country to protect it in a code law country.

4) Know that in addition to the commercial laws within in a country, a U.S. company must abide by certain U.S. laws as well.

Content: I. The International Legal Environment: Playing by the RulesII. Global Perspective—The Pajama CaperIII. Bases for Legal Systems

A. Common and Code LawB. Islamic LawC. Marxist-Socialist Tenets

IV. Jurisdiction in International Legal DisputesV. International Dispute Resolution

A. ConciliationB. ArbitrationC. Litigation

VI. Protection of Intellectual Property Rights—A Special ProblemA. Counterfeiting and PiracyB. Inadequate ProtectionC. Prior Use versus RegistrationD. International Conventions

VII. Commercial Law within CountriesA. Marketing LawsB. Green Marketing LegislationC. Antitrust

VIII. U.S. Laws Apply in Host CountriesA. Foreign Corrupt Practices Act

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B. National Security LawsC. Antitrust LawsD. Antiboycott LawsD. Extraterritorially of U.S. Laws

IX. Cyber Law—Unresolved IssuesA. CybersquattersB. TaxesC. Jurisdiction of Disputes and Contracts

X. Summary

Questions: 1. How does the international marketer determine what legal system will have jurisdiction when legal disputes arise?

2. Discuss the state of international commercial law.

3. Discuss the limitations of jurisdictional clauses in contracts.

4. What is the “objective theory of jurisdiction?” How does it apply to a firm doing business within a foreign country?

5. Discuss some of the reasons why it is probably best to seek an out-of-court settlement in international commercial legal disputes rather than sue.

Chapter 8–Global Marketing Management: Planning and Organization

Time: 2 hrs

Requirements: An issue facing many multinationals today is how to compete in an increasingly competitive global market. Whether a small company or one of the giants, staying competitive means constantly re-accessing marketing strategies. How product, promotion, distribution, and pricing strategies evolve in international marketing is dependent on the approach to internationalization the company takes. Of the three operating concepts that characterize a company’s international orientation, Domestic Market Extension Concept, Multidomestic Market Concept, or Global Market Concept, the main focus of this chapter and the text is on the Global Market Concept. I believe that regardless of the size of a company or in how many countries it operates, it should have a global orientation. The teaching objectives of this chapter are to:

1) Present the operating concepts an international company may have and explore the idea of global marketing management.

2) Discuss the benefits of global orientation.3) Stress the importance of quality and cost containment in global marketing

competition.4) Examine the different types of collaborative relationships and show how international

companies are embracing these alliances.

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5) Focus on relationship marketing and strategic international alliances as two important types of collaborative relationships for the global marketer.

6) Stress the need for strategic planning to achieve company goals.

Content: I. Global Marketing Management

A. Global versus International Marketing ManagementB. Benefits of a Global Orientation

II. Planning for Global MarketsA. Company Objectives and ResourcesB. International CommitmentC. The Planning Process

III. Alternative Market-Entry StrategiesA. ExportingB. The InternetC. Contractual Agreements

1. Licensing 2. Franchising3. Joint Ventures4. Consortia

D. Direct Foreign InvestmentE. Strategic International Alliances (SIA)

IV. Organizing for Global CompetitionA. Locus of DecisionB. Centralized versus Decentralized Organizations

Questions: 1. Define strategic planning. How is strategic planning different for international marketing than domestic marketing?

2. Discuss the effect of shorter product life cycles on a company’s planning process.

3. What is the importance of collaborative relationships to competition?

4. In phases one and two of the international planning process, countries may be dropped from further consideration as potential markets. Discuss some of the conditions in each phase that may exist in a country that would lead a marketer to exclude a country.

5. Assume that you are the director of international marketing for a company producing refrigerators. Select one country in Latin America and one in Europe and develop screening criteria to use in evaluating the two countries. Make any additional assumptions about your company that are necessary.

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Chapter 9 – Products and Services for Consumers

Time:4 hs

Requirements: Products and services, the first part of the marketing mix to be discussed, is covered here with consumer products and the next chapter on industrial products and services. An overall point that needs to be made with these two chapters is that companies face two different problems in developing products for international markets – they either have an existing product that needs to be evaluated for possible adaptation or they are developing a product for global markets from scratch. The two situations require different approaches to product development. The decisions as to whether to standardize or adapt, to develop global products and global brands need to be addressed at the beginning of the chapter since the direction taken will influence later discussions. The teaching objectives are to:

1) Familiarize students with the debate between standardization and adaptation and global products and brands.

2) Stress the importance of offering products and services suitable to the intended market. That the issue is not whether to adapt or standardize, but how much adaptation is necessary and to what point a product can be standardized.

3) Make them aware of the country of origin effect on how products are perceived.4) Explore the relationship between consumer perceptions of products and culture.

Special emphasis on the product as an innovation and the possibility of resistance to an innovation if it is too new or disruptive of the norm.

5) Present two methods for screening products and services for adaptation; the analysis of characteristics of innovation and analysis of product components model.

Content: I. Quality Products

A. Quality DefinedB. Maintaining Quality

II. Products and CultureA. Innovate Products and AdaptationB. Diffusion of InnovationsC. Degree of NewnessD. Analysis of Characteristics of Innovations

III. Physical or Mandatory Requirements and AdaptationIV. Screening Products For AdaptationV. Consumer ServicesVI. Green Marketing and Product DevelopmentVII. Marketing Consumer Services GloballyVIII. Global Markets and Product/Service Development

A. Global Brands1. National Brands

B. Country of Origin Effect and Global Brands

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C. Private Brands

Questions: 1. Debate the issue of global versus adapted products for the international market.

2. Define the country-of-origin effect and give examples.

3. The text discusses stereotypes, ethnocentrism, degree of economic development, and fads as the basis for generalizations about country-of-origin effect on product perception. Explain each and give an example.

4. Discuss product alternatives and the three marketing strategies: domestic market extension, multidomestic market, and global market strategies.

5. Discuss the different promotional/product strategies available to an international marketer.

Chapter 10 – International Marketing Channels

Time: 4 hrs

Requirements: In some markets the distribution system may be the single biggest impediment to successful marketing. An inadequate distribution system may make the cost of reaching some consumers so high that it puts the price of the product out of reach of the market. In China, for example, the market for a product that exists in areas outside the major urban centers is often inaccessible because of a lack of a viable distribution system. In others, the distribution system may be so structured and difficult to enter that is serves as a major non-tariff barrier. Although beginning to show signs of weakening, the hold that wholesalers and manufacturers have over many small retailers and laws that protect the system make the distribution network almost inaccessible to an outsider. The broad focus of this chapter is to present an overview of a range of distribution systems that confront an international marketer. The teaching objectives are to:

1) Present the variety of distribution channel structures and show how they affect cost and efficiency in marketing.

2) Examine the Japanese distribution system, as it exists today, changes that are rapidly occurring, and speculate on the eventual changes that will come about there.

3) Detail both the home country and foreign country middleman alternatives available to an international marketer.

4) Discuss the factors affecting the choice of a channel.Review the methods of locating, selecting, and motivating channel members.

Content: I Global Perspective—400 Million Sticks of Doublemint Today—A Billion TomorrowII. Channel of Distribution Structures

A. Import Oriented Distribution StructureB. Japanese Distribution Structure

1. High Density of Middlemen

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2. Channel Control3. Business Philosophy4. Large-Scale Retail Store Law

C. Trends – From Traditional to Modern Channel Structure III. Distribution Patterns

A. General Patterns1 Middlemen Services2. Line Breadth3. Costs and Margins4. Channel Length5. Nonexistent Channels6. Eastern Europe Presents a Special Problem7. Blocked Channels8. Stocking9. Power and Competition

B. Retail Patterns1 Size Patterns2. Direct Marketing3. Resistance to Change

IV. Alternative Middleman ChoicesA. Home Country Middlemen

1. Global Retailers2. Export Management Companies2. Trading Companies3. U. S. Export Trading Companies4. Complementary Marketers5. Manufacturer’s Export Agent6. Home Country Brokers7. Buying Offices8. Selling Groups

a. Webb-Pomerene Export Associations (WPEA)b. Foreign Sales Corporation (FSC)

9. Export Merchant10. Export Jobbers

B. Foreign Country Middlemen1 Manufacturer’s Representatives2. Distributors3. Foreign Country Brokers4. Managing Agents and Compradors5. Dealers6. Import Jobber, Wholesalers, and Retailers

C. Government-Affiliated MiddlemenV. Factors Affecting Choice of Channels

A. Cost

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B. Capital RequirementC. ControlD. CoverageE. CharacterF. Continuity

VI. Locating, Selecting, and Motivating Channel MembersA. Locating MiddlemenB. Selecting Middlemen

1. Screening2. The Agreement

C. Motivating MiddlemenD. Terminating MiddlemenC. Controlling Middlemen

VII. World Wide WebVIII. The Internet and Traditional ChannelsIX. Summary

Questions: 1. Discuss the distinguishing features of the Japanese distribution system.

2. Discuss the ways Japanese manufacturers control the distribution process from manufacturer to retailer.

3. Describe the large-scale retail store law found in Japan and show how the Structural Impediments Initiative (SII) is bringing about change in Japanese retailing.

4. “Japanese retailing may be going through a change similar to that which occurred in the United States after World War II.” Discuss and give examples.

5. Discuss how the globalization of markets, especially Europe 1992, will affect retail distribution.

Chapter 11 — Integrated Marketing Communications and International Advertising

Time: 2 hrs

Requirements: The debate on the merits of standardization compared to modification of international advertising has always seemed to be a fallacious issue—it seems obvious that it is best to standardize any marketing activity whenever possible but, on the other hand, if there is any activity in marketing that is culture specific, it is advertising. After all, advertising is communications and to be understood and to communicate effectively you must express yourself in the cultural language of your audience. So, how can the idea of global advertising ever be anything other than standardize when feasible and adapt where culturally necessary. In any case, since this issue continues to be debated and because there is often confusion about global advertising, these topics need to be discussed. In most cases, actual practice is to standardize parts of the message and to localize other parts. The teaching objectives are to:

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1) Present a complete coverage of the issue of global advertising covering specifically global advertising, world brands, pattern advertising and the relationship of global market segmentation an promotional strategy.

2) Detail the creative challenges confronting the international advertiser.3) Examine the effects of pan-European advertising.4) Review the communications process as a way of better understanding the diversity

that exists in developing an international promotional program.

Content: I. Global Perspective: Barbie vs. Mulan II. Sales Promotions in International Markets

A. International Public RelationsB. International Advertising

III. Advertising Strategy and GoalsA. Product Attribute and Benefit SegmentationB. Regional Segmentation

IV. The Message: Creative ChallengesA. The Communications ProcessB. Legal ConstraintsC. Linguistic LimitationsD. Media LimitationsE. Production and Cost Limitations

V. Media Planning and AnalysisA. Tactical ConsiderationsB. Specific Media Information

VI. Campaign Execution and Advertising AgenciesVII. International Control of Advertising: Broader Issues

Questions: 1. “Perhaps advertising is the side of international marketing with the greatest similarities from country to country throughout the world. Paradoxically, despite its many similarities, it may also be credited with the greatest number of unique problems in international marketing.” Discuss.

2. Someone once commented that advertising is America’s greatest export. Discuss.

3. With satellite TV able to reach many countries, discuss how a company can use satellite TV and deal effectively with different languages, different cultures, and different legal systems.

4. Outline some of the major problems confronting an international advertiser.

5. Defend either side of the proposition that advertising can be standardized for all countries.

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Chapter 12– Personal Selling and Sales Management

Time: 2 hrs

Requirements: The problems of managing marketing and sales personnel in global markets are the focus of this chapter. The unique qualities of American management thinking are contrasted with the variety of cultural contexts in which American executives must operate around the world. The teaching objectives are:

1) Understanding the crucial role of interpersonal selling in international marketing.2) Accounting for cultural and other differences in designing an international sales force.3) Understanding the nuances of recruiting, selecting, evaluating, and motivating

international sales representatives.4) How to design training programs and compensation systems for international

employees.5) How to prepare Americans for assignments abroad.

Content: I. Designing the Sales ForceII. Recruiting Sales and Marketing Personnel

A. ExpatriatesB. Local NationalsC. Third-Country NationalsD. Host Country Restrictions

III. Selection of Sales and Marketing PersonnelIV. Training for International MarketersV. Motivating Sales PersonnelVI. Designing Compensations Systems

A. For ExpatriatesB. For A Global Sales Force

VII. Evaluating and Controlling Sales RepresentativesVIII. Preparing U.S. Personnel for Foreign Assignments

A. Overcoming Reluctance to Accept a Foreign AssignmentB. Reducing the Rate of Early ReturnsC. Successful Expatriate Repatriation

IX. Developing Cultural AwarenessX. The Changing Profile of the Global ManagerXI. Foreign Language Skills

Questions: 1. Why may it be difficult to adhere to set job criteria in selecting foreign personnel? What compensating actions might be necessary?

2. Why do the global sales force cause special compensation problems? Suggest some alternate solutions.

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3. Under what circumstances should expatriate salesmen be utilized?

4. Discuss the problems that might be encountered in having an expatriate sales manager supervising foreign salesmen.

5. “To some extent, the exigencies of the manpower situation will dictate the approach to overseas sales organization.” Discuss.

Chapter 13– Pricing for International Markets

Time: 4 hrs

Requirements: Basic pricing policy questions that arise from the special cost, market, and competitive factors in foreign markets are the focus of this chapter. The additional costs of international marketing that lead to price escalation and ways to minimize these costs and countertrends, as a special pricing problem should all be stressed. The teaching objectives are to:1) Review pricing policies as they are affected by the differences in international marketing

and especially parallel imports.2) Explore fully the problem of price escalation and ways to lessen price escalation.3) Examine foreign trade zones as an important means of controlling and possibly lessening

some of the costs associated with price escalation.4) Discuss counter trades as an important tool in international pricing and the importance of

taking a proactive counter trade strategy.

Content: I. Global Perspective—The Price WarII. Pricing Policy

A. Pricing ObjectivesB. Parallel Imports

III. Approaches to International PricingA. Full-Cost versus Variable-Cost PricingB. Skimming versus Penetration Pricing

IV. Price EscalationA. Costs of Exporting

1. Taxes2. Tariffs and Administrative Costs3. Inflation4. Deflation5. Exchange-Rate Fluctuations6 Varying Currency Values7. Middleman and Transportation Costs

B. Sample Effects of Price EscalationC. Approaches to Lessening Price Escalation

1. Lower Cost of Goods

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2. Lower Tariffs3. Lower Distribution Costs

D. Using Foreign-Trade Zones to Lessen Price EscalationE. Dumping

V. Leasing in International MarketsVI. Counter trade as a Pricing Tool

A. Types of Counter tradeB. Problems of Counter tradingC. The Internet and Counter tradeD. Proactive Counter trade Strategy

VII. Transfer Pricing StrategyVIII. Price QuotationsIX. Administered Pricing

A. CartelsB. Government Influenced Pricing

X. Summary

Questions: 1. Discuss the causes and solutions of parallel imports and their effect on price.2. Why is it so difficult to control consumer prices when selling overseas?3. Explain the concept of “price escalation” and tell why it can mislead an international marketer. 4. What are the causes of price escalation? Do they differ for exports and goods produced and sold in a foreign country? 5. Why is it seldom feasible for a company to absorb the high cost of international transportation and reduce the net price received?

References:

1、Philip R. Cateora, International marketing [M]. Irwin, 1996.

2、Jain. Subhash C. International Marketing Case [M]. South-Western College Publishing,

2001.

3、[美]Doole.I. 国际营销战略教程 (英文影印版) [M]. 大连：东北财经大学出版社，

1998.

4、[美]杰弗里•埃德蒙•柯里(Jeffrey Edmund Curry)，国际营销:向国际市场进军

和渗透[M] .北京：经济科学出版社，1999.

5、[英]罗杰•贝内特、吉姆•布莱斯，国际营销（第 3 版）[M]. 北京：华夏出版社，

2005.

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6、[美]杰弗雷•埃德芒德•卡里(Jeffrey Edmund Curry)，国际营销[M]. 上海：上海

外语教育出版社，2000.

Written by: Chen Xiaodong June, 2006

Examined and Approved by: June, 2006

Principal of School: June, 2006

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