Pervez Ghauri - International Marketing, 5e (UK Higher Education Business Marketing)

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International Marketing

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International Marketing

Fifth edition

Pervez N. Ghauri

Philip Cateora

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New YorkChicagoDubuqueLos AngelesColumbus

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International Marketing, Fifth edition

Pervez N. Ghauri and Philip Cateora

ISBN-13 9781526848598

ISBN-10 1526848597

Published by McGraw Hill

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Published by McGraw Hill (UK) Limited, an imprint of McGraw Hill, 1221 Avenue of the Americas, New York, NY 10020. Copyright 2022 by McGraw Hill Education (UK) Limited. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Fictitious names of companies, products, people, characters and/or data that may be used herein (in case studies or in examples) are not intended to represent any real individual, company, product or event.

ISBN-13 9781526848598

ISBN-10 1526848597

eISBN-13 9781526848604

eISBN-10 1526848600

2022. Exclusive rights by McGraw Hill for manufacture and export. This book cannot be re-exported from the country to which it is sold by McGraw Hill.

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Dedication

For Saad P. Ghauri

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Brief Contents

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Detailed Table of Contents

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Preface

Since the last couple of years, we are living in a new world where unpredictability is the new reality. The marketing function and especially international marketing function has further evolved to new levels and has taken the central position in most companies strategic design. Despite trade wars, interdependence of the world economies has increased. This has also given way to new actors leading to heightened competition and new challenges in the marketplace. More recently, opinion has been raised that the globalisation has gone too far and should be contained leading to some protectionist and nationalistic regimes. Despite these nationalistic regimes the volume of international trade has increased and there is no slowdown to globalisation. The globalisation of the marketplace is thus here to stay., The recent crisis of Covid 19 has in fact, emphasized the need for further collaboration between economies and markets.

The concept of the global market, or global marketing, has also evolved. It generally views the world as one market and is based on identifying and targeting cross-cultural similarities. In our opinion, the global marketing concept should be based on the premise of cultural differences and be guided by the belief that each foreign market requires its own culturally adapted marketing strategies. Although consumers dining at McDonalds in New Delhi, Moscow and Beijing is a reality, the idea of marketing a standardised product with a uniform marketing plan remains purely theoretical. The global marketing strategy is, therefore, different from the globalisation of the market. One has to do with efficiency of operations, competitiveness and orientation, the other with homogeneity of demand across cultures. In this book we consider it important to make this distinction and to see how it affects international marketing planning and strategies.

In Europe, where home markets are smaller, companies like Unilever, Ericsson, IKEA, HSBC, Akzo Nobel and Nestl are deriving up to 80 per cent of their revenues from abroad. The companies that succeed in the twenty-first century are those capable of adapting to constant change and responding to new realities. Companies coming from larger markets such as USA and China, are also deriving major part of their revenues from foreign markets, be it Microsoft and Apple or Lenovo and Huawei. All these and other companies need to market their products all over the world. They need to understand that what does it take to be successful in many markets that are diversified in size, culture and income levels.

The economic, political and social changes that have occurred over the last decade have created new realities and have changed the landscape of global business. Consider the present and future impact of:

• China as a credible player in the international market

• the persistent economic crises due to Covid 19 and other unpredictable events in the Western economies

• emerging markets in Eastern Europe, Asia and Latin America where, in spite of Covid 19 and economic crises, more than 75 per cent of the growth in world trade over the next 20 years is expected to occur

• the job shifts in services from Western to emerging markets

• the rapid move away from traditional distribution structures in Europe, the USA and many emerging markets from in-store retailing to online shopping

• the growth of middle-income households the world over

• an increasingly (in)effective World Trade Organization (WTO) and increasing/decreasing restrictions on trade

• the transformation of the Internet from a toy for cybernerds to a major international business tool for research, advertising, communications, exporting and marketing, so called digitalisation of the economies

• the increased awareness of ethical issues, social responsibility and climate change by customers and companies alike.

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As global economic growth occurs, understanding marketing internationally is extremely important. Whether a company wants to involve itself directly in international marketing or not, it cannot escape increasing competition from international firms. This book addresses global issues and describes concepts relevant to all international marketers, regardless of the extent of their international involvement, whether they sell products or services and whether they are a big or a smaller company. Emphasis is on the strategic implications of competition in the markets of different countries. An environmental/cultural approach to international marketing requires a truly global orientation. The readers imagination is not limited to any specification or to a particular way of doing business in a single country. Instead, we provide an approach and framework for identifying and analysing the important cultural and environmental uniqueness of any country or global region.