Download 1 - Kirkwood Community College

Revised by: Darrel Millard
April 2003
1.0
Course Title:
International Marketing
2.0
Catalog Number:
MR108T
3.0
Semester Hour Credit:
3.1 Lecture Hours
3.2 Lab Hours
4.0
Course Description: Covers the theoretical and practical concepts of international
marketing. A clear delineation of marketing functions in domestic and international
business will be stressed. Other topics covered include the cultural dynamics of the
global markets, political and legal environment, and multinational markets.
5.0
Prerequisites: None
6.0
General Course Goals:
1. To distinguish between international and multinational marketing.
2. To explain why countries and individual firms engage in international
marketing: comparative advantage, economic and demographic trends,
competition at home, the stage in the product life cycle and tax structures.
3. To explore the scope of international marketing.
4. To examine the involvement of the U.S. in international marketing.
5. To determine the reasons behind the large U.S. trade deficit.
6. To describe the cultural, economic, political and legal, and technological
environments of international marketing.
7. To provide examples of successful and unsuccessful international marketing.
8. To differentiate among industrialized, developing and less-developed countries.
9. To consider the impact of nationalism.
10. To study GATT and the most-favored national principle.
11. To examine the components of international marketing strategy: Company
organization, level of standardization, and product, distribution, promotion and
price planning.
7.0
Major Units of Instruction:
I. An overview of International Marketing
II. The Cultural Environment of Global Marketing
III. International Marketing Management
IV. Corporate Context of Marketing
8.0
Unit Objectives
I. An Overview
1. The Scope and Challenge of International Marketing
The Internalization of U.S. Business International Marketing Defined.
The International Marketing Task: Marketing Controllables. Domestic
Uncontrollables. Foreign Uncontrollables. Environmental Adjustment
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Revised by: Darrel Millard
April 2003
Needed. Self-Reliance Criterion: An Obstacle. Becoming International:
Phases of International Marketing Involvement. Changes in Marketing
Orientation. Global Marketing. Orientation of International Marketing.
2.
International Trade: Concepts and Theory
Twentieth-Century Environment: World War I and Interwar Period.
Post-World War II Period. World Trade and U.S. Multinationals.
International Trade and Economic Well-Being. Balance of Payments.
Theory of Relative Advantage: Absolute Cost Advantage. Comparative
Cost Advantage. The Mechanics of Protectionism: Protection Logic and
Illogic. Trade Barriers. Market Barriers. Easing Trade Restrictions:
General Agreement on Tariffs and Trade (GATT). International
Monetary Fund. Summary.
3.
Strategic Planning and Organizing for International Marketing
Strategic Planning: Company Objectives and Resources. International
Commitment. Alternative Market-Entry Strategies: Exporting. Licensing.
Franchising. Joint Ventures. Consortia. Manufacturing. Management
Contract. The Planning Process. Organizational Strategy: Structural
Basis. Locus of Decision. Maintaining Flexibility. Centralized versus
Decentralized Organizations. Summary.
II. The Cultural Environment of Global Marketing
1. Cultural Dynamics in Assessing Global Markets
Cultural Knowledge. Culture and Its Elements: Elements of
Culture. Analysis of Elements. Cultural Change: Cultural Borrowing.
Similarities: An Illusion. Resistance to Change. Planned Cultural
Change. Consequences of an Innovation. Summary.
2. Business Customs and Practices in Global Marketing
Required Adaptation: Degree of Adaptation. Imperatives, Adiaphora,
and Exclusives. Relationships between Culture and Business Customs.
Modes of Doing Business: Sources and Level of Authority.
Management Objectives and Aspirations. Formality and Tempo.
Communications Emphasis. Negotiation Emphasis. Business
Ethics: Bribery—Variations on a Theme. Foreign Corrupt Practices
Act (FCPA). Summary.
3. Political Environment—A Special Problem
Government and Political Party Systems: Types of Governments.
Political Parties. Knowledge of Party Philosophy. The Permanency
of Government Policy. Nationalism. Assessing Political
Vulnerability: Politically Sensitive Products. Forecasting Political Risk.
Confiscation, Expropriation, Domestication, and Other Risks:
Confiscation and Expropriation. Domestication. Effects of
Revised by: Darrel Millard
April 2003
Government-Initiated Domestication. Economic Risks. Political
Sanctions. Encouraging Foreign Investment: Foreign
Governments. U.S. Government. Reducing Political Vulnerability:
Strategies to Lessen Political Risk. Planned Domestication: An
Alternative: Political Payoffs. Managing External Affairs. Summary.
4. The International Legal Environment
Bases for Legal Systems. Jurisdiction in International Legal
Disputes. Legal Recourse in Resolving International Disputes:
Problems with Litigation. Arbitration. Enforcement of Arbitration
Clauses. Protection of Industrial Property Rights—A Special
Problem: Inadequate Protection. Prior Use versus Registration.
International Conventions. Commercial Law within Countries:
Antitrust—An Evolving Issue. U.S. Laws Apply in Host Countries.
National Security Laws. U.S. Antitrust Laws. Extraterritoriality of
U.S. Laws. Summary.
5. Geography
Climate and Topography. Resources. World Population Trends:
Population Distribution. Rural/Urban Shifts. Increasing
Unemployment. World Food Production. Controlling Population
Growth. Developed World Population Is Declining. Opportunities in
Developing Countries. World Trade: Differences in People.
Differences in Economies. Differences in Natural Resources.
World Trade Routes. Summary.
6. Multinational Markets
La Raison D’Etre: Economic Factors. Political Factors. Geographic
Proximity. Social Factors. Patterns of Multinational Cooperation:
Regional Cooperation Groups. Free-Trade Area. Full Customs Union.
Common Market. Political Union. Multinational Markets Today: Europe.
Africa. The Americas. Middle East. Asia. Strategic Implications for
Marketing: Opportunities. Competition. Market Complexity. Market
Barriers. Regulation. Profit. Summary.
7. Developing Markets and Market Behavior
Marketing and Economic Development: Stages of Economic
Development. Infrastructure and Development. Objectives of
Developing Countries. Marketing’s Contribution Neglected.
Marketing in a Developing Country: Level of Marketing
Development. Influence of Import Orientation. Demand in a LessDeveloped Country. Less-Developed Countries and Long-Range
Potential. Socialist Countries—A Special Case: Estimating
Demand. Communications Process. Negotiating a Trade. China—An
Emerging Market. Changing Market Behavior and Potential. Summary.
Revised by: Darrel Millard
April 2003
III. International Marketing Management
1. Researching Global Markets
Breadth and Scope of International Marketing Research. The Research
Process: Defining the Problem and Establishing Research Objectives.
Problems of the Availability and Use of Secondary Data: Sources of
Secondary Data. Problems of Gathering Primary Data: Unwillingness
to Respond. Sampling in Field Surveys. Language and Comprehension.
Problems in Analyzing and Interpreting Research Information.
Estimating Market Demand. Responsibility for Conducting Marketing
Research. Multinational Marketing Information Systems. References:
Abstracts, Bibliographies, and Indexes. Sources of Marketing Statistics.
Summary.
2.
Developing Consumer Products for Global Markets
Product Alternatives: Global versus Adapted Products. Products and
Culture. Innovative Products and Adaption: Degree of Newness.
Physical or Mandatory Requirements and Adaption. Product Life-Cycle
and Adaption. Screening Products for Adaption: Analysis of
Characteristics of Innovations. Analysis of Product Components.
Summary.
3.
Marketing Industrial Products and Business Services
The Industrial Product: Stage of Economic Development. Political and
National Implications. Product Design. Service, Replacement Parts, and
Standards. Universal Standards. Channel Strategy. Promoting
Industrial Products: Industrial Trade Fairs and Trade Centers. Promoting
to Socialist Countries. Establishing Contact in China. Pricing and
Competition: Price-Quality Relationship. Countertrading—A Pricing
Tool. Business Services as a Product: Growth of U.S. Business Service.
U.S. Multinational Services Expand. Market Environment for Business
Services. Summary.
4.
The International Advertising and Promotion Effort
Trends in Advertising, Patter Advertising. Creative Challenges:
Legal and Tax Considerations. Language Limitations. Cultural Diversity.
Media Limitations. Production and Cost Limitations. Media Planning
and Analysis: Tactical Considerations. Media Patterns. Specific Media
Information. Sales Promotion. International Advertising and the
Communications Process: The Advertising Agency. International
Control of Advertising. Summary.
5.
Personal Selling and Personnel Management
Sources of Marketing and Sales Personnel. Expatriates. Foreign
Nationals. Cosmopolitan Personnel. Host-Country Restrictions.
Revised by: Darrel Millard
April 2003
Managing International Personnel: Differences in Cultural Values Affect
Management Practices. Recruiting and Selecting International Personnel.
Training and Motivating International Personnel. Preparing U.S.
Personnel for Foreign Assignments: Overcoming Reluctance to Accept
a Foreign Assignment. Reducing the Rate of Early Returns. Successful
Expatriate Repatriation. Developing Cultural Awareness. International
Sales Requires Cultural Adjustment. Compensating. Summary.
6.
Pricing for International Markets
Pricing Policy: Pricing Objectives. Approaches to International Pricing.
Leasing in International Markets. Cost Factors: Taxes and Tariffs.
Inflation. Exchange-Rate Fluctuations. Middleman and Transportation
Costs. Price Escalation: Sample Effects of Price Escalation. Strategic
Approaches to Lessening Price Escalation. Using Foreign- Trade Zones
to Lessen Price Escalation. Dumping. Administered Pricing: Price
Setting by Industry Groups. Government-Influenced Pricing.
International Agreements. Countertrade. Problems of Countertrading.
Intracompany Pricing Strategy. Price Quotations. Summary.
7.
The International Distribution System
Factors Affecting Choice of Channels: Cost. Capital Requirement.
Control. Coverage. Character. Continuity. Distribution Patterns: General
Patterns. Retail Patterns. Government Affiliated Middlemen. Alternative
Middleman Choices: Home Country Middlemen. Foreign Country
Middlemen. Company Distribution Abroad. Locating, Selecting, and
Motivating Channel Members: Locating Middlemen. Selecting
Middlemen. Motivating Middlemen. Terminating Middlemen.
Controlling Middlemen. Summary.
8.
Export Trade Mechanics and Logistics
Regulations and Restrictions of Exporting: U.S. Export Restrictions.
Import Restrictions. Customs-Privileged Facilities. Foreign Trade Zones.
Off-Shore Assembly (Maquiladoras). Export Documents. Terms of
Sale. Packing and Marking. Export Shipping. Logistics:
Interdependence of Physical Distribution Activities. Effect of
Environment on Physical Distribution Costs. Benefits of Physical
Distribution Systems. The Foreign-Freight Forwarder. Summary.
IV.
Corporate Context of Marketing
1.
Financial Requirement for International Marketing
Capital Needs for International Marketing: Working Capital
Requirements. Market Penetration Costs. Capital Investment. Sources of
Government Funds for International Marketing Operations. Foreign
Commercial Payments: Letters of Credit. Bills of Exchange. Cash in
advance. Open Accounts. Financial Risk and Risk Management:
Revised by: Darrel Millard
April 2003
Commercial Risk. Political Risk. Foreign Exchange Risk. Managing
Financial Risks: Hedging. Foreign Exchange Options. European
Currency Units. Unblocking Profits. Summary.
2.
Coordinating and Controlling Global Marketing Operations
Control as a Management Tool. Developing an International Control
System: Unique Factors in International Control. Areas of Control:
Volume Control. Price Control. Product Control. Promotion Control.
Channel Control. Marketing Personnel Control. Profit Control. HomeOffice Responsibility. Summary.
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Course Bibliography: International Marketing, Cateora, Graham, 11th edition,
McGraw Hill.