International marketing by Geoff Lancaster ©

1 International marketing definitions

There is much uncertainty between the terms: multinational marketing, international marketing and
exporting.
• Multinational marketing refers to a number of very large companies whose business interests,
manufacturing plant and offices are spread throughout the world. Although their strategic
headquarters might be based in the original parent country, they tend to operate autonomously in
individual countries. Multinational companies can also be exporters and importers, but the main
point is that they actually produce and market goods within the countries they have chosen to
develop.
• International marketing is the term commonly used to describe all international activity. However,
strictly speaking, it is a term used to describe companies whose overseas sales account for more than
20% of their total turnover; where a strategic decision has been taken to enter foreign markets; where
product mix and communications mix adaptations are considered when supplying goods or services
for a particular overseas market.
• Exporting is the term commonly used to describe the commercial activity involved when
international transactions take place. However, in an international marketing sense it refers to those
companies who consider overseas business as being marginal to their main activities. In such
circumstances they simply accept export orders, rather than engage in active manipulation of their
marketing mixes to suit the needs of customers in specifically targeted countries.
2 The significance of international marketing
The economic theory of comparative advantage states that each country should specialise in the
production of those goods it can most efficiently provide, which should encourage unrestricted trade,
international specialisation and increased global efficiency.
This is perhaps a commonsense, yet idealistic view for individual countries, for a variety of political and
economic reasons, erect barriers to the free movement of goods and services between countries.
Agreements are formed which encourage free trade within defined geographical regions, but which tend
to erect barriers against those who are not in this ‘club’.
2.1 World trading blocks
The biggest of these ‘clubs’ is the Common Market or the European Union (EU) which was formerly
known as the European Community (EC) and before that the European Economic Community (EEC). Its
latest title of EU perhaps reflects the change that taken place since the initial phases when it was termed
the EEC. In the early days it was seen as a trading block - hence its title - whereas the current title
reflects its trading and political role as a kind of United States of Europe. Indeed this is an issue which
currently rages among member nations of the EU in terms of those wishing for more federal control from
Brussels (the headquarters) and those wishing to keep their autonomy. Currently the membership of the
EU is as follows:
Belgium, France, Germany, Netherlands, Luxembourg, Italy, Ireland, United Kingdom, Denmark,
Greece, Spain, Portugal, Finland, Sweden and Austria. A number of former Communist countries are
now queueing up to join (and indeed the former East Germany has already been incorporated as part of
what is now simply Germany) and amongst the most likely front runners are: Hungary, Czech Republic,
Slovakia and Poland plus the two ex-Soviet Republics of Estonia and Latvia.
Other organisations exist throughout the world, but such organisations are not as politically integrated as
the EU. These organisations are:
North American Free Trade Association (NAFTA) comprising the USA, Canada and Mexico.
Organisation for Petroleum Exporting Countries (OPEC) comprising Saudi Arabia, Kuwait, United Arab
Emirates, Qatar, Iran, Iraq, Libya, Algeria, Nigeria, Venezuela and Indonesia.
Association of South-East Asian Nations (ASEAN) comprising Singapore, Thailand, Malaysia, the
Philippines, Indonesia and Brunei.
European Free Trade Association (EFTA) has lost most of its membership to the EU, but those remaining
in this trading block are Norway, Switzerland and Iceland.
However, international business continues to rise on a worldwide basis as barriers to trade slowly come
down. This has been principally due to the incremental agreements being sought by the General
Agreement on Tariffs and Trade (GATT) organisation which was formed in 1948 to develop fair trading
practices amongst its members who now total over 100 individual countries.
2.2 Reasons for international trading between companies
Amongst individual companies there is an increasing need for them to expand their markets into the
international arena for a number of reasons, namely:
• To increase the overall level of total profits
• Because the home market might be saturated
• To take advantage of an innovative to the world product or service
• To satisfy the goals of corporate management who might wish as a general matter of policy that the
company should be committed to international operations
• To enjoy the corporate tax advantages offered in overseas countries
• To enjoy the funding benefits from setting up manufacturing and assembly bases in certain overseas
countries which might also offer access to the trading block to which that country belongs
• To obtain economies of larger scale operations
• Freer trade in general as a result of GATT accords
However, against these positive factors and advantages there are a number of negative factors, namely:
• The reason why a company might wish to enter the international arena is to escape competition in
the home market. One of the principal reasons that has spurred a number of UK companies to
unwillingly enter EU markets is because UK markets have now been legitimately opened up to other
EU countries and the only way for them to keep market share is to enter EU markets
• To dispose of surplus production or to utilise surplus manufacturing capacity. This is a negative
factor, but a number of companies dispose of their surplus production overseas at cost or even below
cost rather than cut their prices on the domestic market. In the case of selling below cost there is
international law under ‘Anti-dumping and countervailing measures’ which prohibits dumping as it
constitutes unfair competition against domestic manufacturers. The USA in particular is very
sensitive to products being ‘dumped’ in the USA and will enact this legislation whenever it is
appropriate to do so
• Import tariffs which impose a percentage duty on the cost of landed products pose a negative factor
to exporting as do import quotas which impose a numerical value on the numbers of products that
can be imported. Sometimes import licences are required which demand a licence to import certain
goods or services and in most cases the foreign government has to be paid for such licences
• Political unrest is a factor which negates against companies wishing to trade in a foreign country.
Quite often it stems from political unrest, but in certain cases an overseas government might stop
payment for goods or services that have been provided on the basis that it seeks to preserve its
foreign exchanges. In the UK an organisation exists called the Export Credits Guarantee Department
(ECGD) which is set up to insure companies against such risks, and indeed insurance is available to
insure against non-payment by individual overseas companies. However, the negative side is that
such services cost money and this all adds to the costs of trading competitively on an international
basis.
3 A macro overview of international trade
Foreign exchange is important to a country in order to pay for the goods and services it imports. As a
country it is vital that we export to pay for essential imports, because we are not self sufficient in food or
raw materials and a lot of manufactured goods. However, we are also a free trading nation and
traditionally we have put up few barriers to those countries who have wished to market their goods and
services here.
The gap between a country’s total exports and its total imports is known as the balance of trade and in
payment terms it is known as the balance of payments. If a country imports more than it exports in value
terms then the balance of payments will be in deficit, but if exports are higher than imports then the
balance of payments will be in surplus.
Two types of trade are considered. Visible trade means the trading of physical commodities ranging
from raw materials to finished goods and this is accounted for separately in Government statistics and
quoted as the visible trade balance which, in the case of the UK, is usually in defecit. The other account
is for what is called invisible trade and this is for the trading of less tangible services that are traded
between countries. In the case of the UK, trade in invisibles is usually in surplus. The total account of
both visibles and invisibles is the balance of payments.
3.1 Help for exporters
A number of organisations exist to help companies to engaged in international trade. Many companies
belong to trade associations that reflect the corporate views of their subscribing members. Such trade
associations often provide significant advice in relation to export markets. Many public libraries now
offer special sections devoted to information relating to the export trade. Most developed countries have
Government help and in the UK the most significant organisation that gives export advice in the UK is
the British Overseas Trade Board (BOTB) that helps exporters by providing financial support to
individual companies who are working with a recognised agency like a Chamber of Commerce in a
number of ways:
• Financial support when exhibiting at overseas trade fairs or exhibitions
• Subsidies to air travel and accommodation expenses when travelling as part of an overseas trade
delegation to a specific part of the world
• Low interest loans for a substantial amount of the costs involved in entering new export markets on
the basis that if the venture is unsuccessful the loss is shared
• Help in general in terms of putting exporters in touch with markets (eg Computerised Export
Intelligence that is a subsidised scheme through which companies receive regular updated reports in
relation to export opportunities). It also engages in export intelligence gathering in a more general
way in terms of investigating the commercial viability of doing business in certain countries and
making this information available to the business community
• Help through contacts with British Embassies and British Council establishments in overseas
countries. In recent years such organisations have become far more commercially proactive in terms
of helping the interests of UK overseas businesses. Services provided by such consular offices can
include the preparation of shortlists of potential agents or distributors of a company’s products
3.2 Stages of economic development
In relation to individual countries an international classification exists to denote the stage in terms of
development status in which such countries are placed. This classification is as follows:
• Undeveloped countries (sometimes termed ‘subsistence economies) which have subsistence living
and engage in barter trade for the exchange of goods largely in central markets. There is no
specialisation and no modern marketing activity.
• Less developed countries have more of a self-sufficiency philosophy with a predominance of small
scale cottage industry. Agriculture and manufacturing is labour intensive. Producers tend to be
marketers (production orientation).
• Developing countries are sometimes referred to as ‘newly industrialising countries’ (NIC) and they
have specialisation of labour and manufacturing. There is a separation of production from the
marketing function.
• Developed countries (sometimes termed industrialised countries) engage in regional, national and
international marketing. There is specialisation of manufacture and mass distribution.
• Affluent countries is a further category that is sometime used and this relates to countries who have
reached developed country status, but additionally its population demands high quality, sophisticated
consumer goods.
4 International marketing mix
It makes sense to institute a marketing policy for international markets developed on the basis of an
integrated marketing mix rather than simply selling products designed for the domestic market on an
international scale. Marketing mix elements for international operations are no different to those used for
domestic marketing, the principal difference being in the range of options. It is up to the marketing
manager, or the manager designated to look after international operations (perhaps the international
marketing or sales manager) to decide. This is done on the basis of what marketing research indicates,
how the marketing mix should be adapted for each target area in which the company markets or is
considering entering.
Each of the marketing mix elements, which includes the important aspect of selling that is considered
separately from promotion, are now considered from the viewpoint of examining the issues that are at
stake when considering them in the context of international marketing.
5 Product
Due regard must be given to whether to market the entire product range or part of the range and whether
to modify these products to suit local demand, standards and regulations that might pertain in the
overseas market. This might mean high modification costs, packaging, labelling and product or brand
name considerations.
A policy of standardisation (we sell what we make) is typical for a passive company who has found itself
in international trade by accident. This is akin, perhaps, to simple exporting in terms of fulfilling
unsolicited export orders. Such orders might come from an advertisement in a domestic journal that has
some circulation overseas, but the company’s philosophy tends to be that it will export if it has surplus
stocks or production capacity. When selling to countries with a similar culture (eg. Ireland, UK, Canada,
Australia, New Zealand and the USA) there will be few problems because of the similarities in terms of
culture and language.
Some companies adapt their products to as to promote sales in particular countries (we make what we
can sell) and engage in market segmentation. Instead of simply attempting to sell domestic product
overseas, attempts are made to adapt product in terms of their design, their function and their size.
Where a company is committed to continuous, rather than ad hoc, overseas sales and takes on the notion
of international marketing activity as being central to its very existence then it can be regarded more truly
as an international marketing company (ecological approach).
The notion of the three strategies just mentioned was first put forward by H.B.Thorelli in 1980. From
what has been described it is clear that international marketing decision-making must consider the
organisation’s resources and its corporate objectives. If the company is to seriously consider the
international marketing route (the ecological approach) then it should have the backing of the board of
directors and the active support of top strategic level management.
6 Price
6.1 Price considerations
Depending upon whether the company pursues a strategy of differentiated, undifferentiated or
concentrated marketing in relation to its chosen market segments, will depend upon the price levels to be
charged overseas. Considerations relating to chosen market segments will affect the decision as to
whether to adopt a skimming or penetration approach to pricing. In the end analysis, the method of
pricing international sales will very largely depend upon how important the overseas price will be in the
overall marketing mix.
An extra factor in terms of costs which has to be considered in pricing decision are such factors as tariffs
and logistics costs. In addition to this, there is the added uncertainty of extending credit for goods
supplied to an overseas customer whom the company does not know as well as an equivalent domestic
customer. However, this latter need not be such a problem, as part of the sales agreement can include
payment through a letter of credit or an irrevocable letter of credit, which means that the buyer’s and the
seller’s banks exchange agreed funds at a certain point in the export delivery cycle.
Consideration should also be given as to the currency in which payment is to be made. Most export order
arrangements stipulate ‘hard’ currency payments in US dollars or other stable currencies. However, there
are circumstances in which the order can only be received if payment is made in the local currency.
Here, consideration should be given to the strength of the currency and the fact that it might devalue by
the time the contract is paid. In such a case, what might have originally looked like a reasonably
lucrative contract might end up as a loss-making venture. For some export contracts to less developed
countries, the government of that country might insist on some kind of barter deal, whereby in return for
a company’s products, some other products of that country must be taken as payment, thus saving the
country valuable foreign exchange. Added to this, is the probability is that in order to be competitive,
margins on products destined for overseas markets will carry less profit that those manufactured for home
consumption. With such added costs, and potential uncertainties, this is precisely the reason why a
number of manufacturers prefer to remain with the domestic market rather than becoming involved
internationally.
In meeting pricing objectives, both cost and market considerations are important together with the very
practical issue of ‘Is it worth it?’ Clearly, if the company is simply breaking even to achieve volume in
its international activities, then serious consideration should be give to only engaging in domestic sales.
6.2 Price quotations
At a more practical level, price will have to consider the extra costs for packing and freight charges. As a
result, quotations in export markets sometime include freight charges and sometime it is the ex-factory
cost. The principal quotations used include:
• Ex-works which means that the purchaser has to bear all of the costs of packing and freightage and
insurance, plus other liabilities like import duties after they have left the supplier’s factory.
• Free alongside ship (FAS) means that the exporter is responsible for transporting the goods to the
point where they are being loaded onto the ship.
• Free on board (FOB) extends the responsibility to the exporter until the goods have been loaded on
the ship. The ship’s master will then give the goods a ‘clean bill of lading’ which means that they
have been accepted as being in good condition for the sea journey. If goods are not received in good
condition by the ship’s master, a ‘foul bill of lading’ will be issued. This is not to say that the goods
are damaged, but that the way they are packed might be not sturdy enough to stand the sea journey,
in which case any insurance claims will be problematical. Assuming a clean bill of lading, from
there the importer pays the costs of carriage insurance and freight.
• Cost insurance and freight (CIF) means that as well as placing the goods on board the ship the
exporter is also responsible for the freight to the end port destination plus any freight insurance
charges. A variation of this quotation is ‘Cost and freight’ (C&F) which is similar, but the importer
pays the insurance premium.
• Free delivered or ‘franco rendu’ as it is sometimes called means that the exporter has responsibility
for all the costs of freightage right to the customer’s premises which will include payment of any
 import duties, obtaining import licences where appropriate plus all other administrative details right
up to organising foreign exchange where necessary. Clearly, this option is the most complicated one
for the seller and the least complicated one for the buyer. However, companies that engage in
regular international marketing have departments specifically established to deal with these kinds of
transactions so the problem becomes a one of routine.
6.3 Transfer pricing
There is one further important consideration in relation to international pricing decisions that is of
particular benefit to multinational companies, although it is of equal value to international marketing
companies with overseas manufacturing or assembly bases. This is the subject of transfer pricing which
is applicable to companies that transfer components and finished products between their plants in
different manufacturing countries.
The basis of transfer pricing is that prices of components and finished products moving between
manufacturing or assembly locations can be manipulated in order to minimise import duties or
corporation tax to the benefit of the enterprise as a whole. It works as follows:
• Component parts or completed products can be transferred into a high-duty country in which the
company has a manufacturing/assembly base at an artificially low transfer price to minimise duties
payable
• Components or finished products can be transferred into high corporation tax countries at high
transfer prices so that profits in this country are minimised
• Components or finished products can be transferred at high prices into a country from which
dividend repatriation is restricted or subject to additional government taxes
It is, of course, more complicated than it seems and there are yet further considerations that can be made.
For example, in countries with high inflation rates, where devaluation of the currency is feared, it will be
possible, through transfer pricing, to avoid the accumulation of funds in that country, and thus largely
avoid the effects of any devaluation. The corollary is that national governments are also interested in the
possible abuse of such arrangements. Naturally, the government of the exporting country will want to see
that the transfer price is not artificially low, and it will endeavour to see that appropriate profits are made
and fair levels of taxes are paid. In the importing country, the government will want to see that goods are
not being transferred at unreasonably high prices which will reduce local profits and corporation tax
liability. At the same time customs and excise might well investigate to see that artificially low transfer
prices might be seen as an attempt to minimise duty liabilities.
7 Promotion
The company has a number of courses open to it in terms of promoting itself internationally which
includes media advertising, point-of-sale promotion, trade exhibitions, trade fairs, brochures and direct
mail. The availability and the relative quality of such media is, of course, an important consideration as
are factors like costs and foreign language considerations for translations of promotional literature. Of
course promotion as an element of the marketing mix involves selling, and in the international marketing
context the principal concern here is the type of representation that will be adopted. In these
circumstances selling takes on a wider remit than it does in a domestic marketing situation. It also
includes the type of distribution to be employed, because in most instances of international selling, the
seller also plays a critical part in the distribution and often the stocking of the goods. This aspect is
considered in the next section under ‘place’.
The most important aspect of international promotion is the policy that will be adopted in relation to
standardisation. Warren J Keegan has put forward five strategies for international marketing in terms of
both Promotion and Products. His idea has been adapted and is shown in Figure 1

PROMOTION PRODUCT
1 Same Same
2 Same Different
3 Different Same
4 Different Different
5 Invention

Figure 1 Keegan’s five strategies for international marketing

Examples cited by Keegan as relating to each of the stragegies above are:
1 = Famous brands of cola (this is termed straight extension)
2 = Famous brands of petrol using an international logo and advertising theme, but adapting the product
to suit different climatic conditions (this is termed product adaptation)
3 = Bicycles - leisure promotion in Western countries and means of transportation promotion in less
developed countries (this is termed communications adaptation)
4 = Clothing - different clothing to suit different tastes and different promotion to reflect fashion in
certain countries and functionality in others (this is termed dual adaptation)
5 = In some countries product invention might be necessary in order to meet customer needs at
affordable prices. The example Keegan cites is a hand-cranked manual washing machine for
subsistence level countries.
8 Place (or distribution)
This is probably the most critical decision for the international marketer and the principal choice is
between direct representation from the company or through some kind of commission agent or
distributor. If the decision is to use direct representation from the company, then this can be very
expensive in terms of costs and expenses, especially if the representative is required to live permanently
in the overseas country. There is also the problem of culture and indeed in some countries it would not
be possible for a ‘foreigner’ to conclude negotiations single-handedly and some kind of local
intermediary would be required. Many local companies offer their services as commission agents
working simply on commission for the goods they sell and leaving the commercial transactions to the
supplying company and the customers they sell to. At the other extreme there are distributors who
purchase and stock the products and then resell them in the overseas market in addition to providing
service facilities.
This aspect of international marketing is a very important part of the organisations representational and
selling arrangements, and it is considered separately in the next section under ‘sales channels’.
Place, of course, has a logistics implication and here the process is far more complicated than for
domestic marketing. Goods must be packed in appropriate packaging for seafreight if they are bulky and
cannot be transported in containers. Containerisation has, in recent years, made the task of international
trade much easier and cheaper, because an individual company’s goods can often go in a container that is
shared with other companies exporting to the same destination. The shipping company or a shipping
agent organises logistics, so it is not a matter of the company having to locate another company to share a
container load. Air freight is a possibility and here packing costs are much cheaper as packing does not
have to be at a standard to withstand a lengthy sea journey. Freight insurance charges by air are also
much cheaper as there is less likelihood of damage than with sea transport. Air freight is more expensive
than sea transport, but it is a rapidly growing international transport medium that is particularly suited to
perishable goods and good that have a high value in relation to their weight. This means that they can be
in the hands of the customer in a matter of days rather than weeks by seafreight.
9 Sales channels
Before a company establishes its marketing arrangement in an overseas country it should research
appropriate distribution possibilities and its export marketing research will suggest the best distribution
arrangement among the following alternatives:
9.1 Direct exporting
The company that chooses this route rather than marketing through an independent distributor, has a
number of choices open to it in this respect:
• Set up an overseas branch or a subsidiary company has the advantage of offering the fewest
organisational changes, allows management to think in more global terms of its responsibilities and
commitments and gives it more control over its selling and marketing efforts.

However, the downside is the high cost and greater risk, plus the fact that in such circumstances the
physical distance between the overseas branch and head office is greater. This might lead to
possibilities for misunderstanding and misinterpretation of policies put forward by the head office
and a general feeling of ‘isolation’ which can lead to motivational problems.
• A joint venture can take the form of forming an overseas arrangement with an indigenous firm. In
some markets this is the only way in which the exporting company can legitimately do business. In
other instances the joint venture might be between two or more companies with complementary
products or services forming a joint venture to collectively enter an overseas market.

The advantage here is particularly for small manufacturers who can defray some of the costs of
performing such a venture on their own. In the case of a joint venture with a local company, entry to
the overseas market is often made a lot easier because of a knowledge of trading and ways of doing
business in that market place. This can be particularly attractive when the manufacturer sees such a
partner as becoming a potential assembler or stockholder, who will tend to be more firmly
committed to the success of the venture than say a distributor, who will distribute other
manufacturers’ products as well as those of the exporting company, so the degree of commitment
might not be as strong.
Against these advantages there is the possibility that the partner to the joint venture might eventually
become a competitor and, indeed, there might then be the possibility of friction between the parties
in relation to matters of financing, profit sharing and control.
9.2 Licensing
These arrangements can take a number of forms. A company may negotiate a licence for a foreign
company to produce and market its products overseas or simply to market the goods. Alternatively, the
company might grant a franchise to an overseas company that will involve the granting of rights to sell
certain goods or services in defined markets using methods agreed by the supplier. The advantages
offered by licensing is that it is a low risk option with low investment costs and speedy entry to the
overseas market.

Disadvantages lie in the fact that it will be less profitable in the long term than direct exporting and the
company’s international reputation may suffer if the licensee produces products that do not meet
expectations. Legal arrangements for such arrangements are often complex, lengthy and costly.
9.3 Use of intermediaries
A number of possibilities exist for this kind of arrangement and it is the means through which the
majority of trade by small and medium sized companies is done. These are now examined separately
under their respective categories:
• Export houses are export merchants who are based in the home country and who buy goods
from the home producer and sell to their clients overseas. In this type of arrangement risks are
reduced, but there is no control over exports.
• Confirming houses are similar to export houses, but here they act on behalf of overseas buyers of
goods, finding sources of supply in return for a commission from the buyer.
• Buying offices are used by a number of large overseas companies and their specific function is
to arrange initial contacts between overseas companies and prospective suppliers. They will then see
through any contract that might result to its completion, right up to export documentation and final
settlement if necessary.
• Agents are probably the most popular kind of intermediary used in international
marketing. A commission agent acts on behalf of a principal (the exporting company). The agent
then secures orders, and receives an agreed percentage commission on these orders.

How far the agent becomes involved in the actual distribution of the goods depends upon the agency
agreement. In some cases the agent receives the goods directly and then forwards these to the
customer, but in other cases the agent’s responsibility ends when the contract has been agreed. In
other instances the agent might be on an agreed retainer as well as a percentage commission on
orders obtained. In the event of this latter arrangement, it is probable that the agent might be an
exclusive agent acting only for the principal’s organisation in relation to their particular goods or
services. Agents will probably carry complementary lines and in some cases competing lines from
other manufacturers. In such circumstances there would be a danger of competing lines, and not the
principal’s lines, being ‘pushed’ in the market place. Agents are thus a convenient way of doing
business at relatively low cost through an intermediary who knows the local market and local
conditions of trading. However, the principal loses a certain amount of control in terms of how the
company’s goods are marketed. If the agent is carrying other complementary lines then the
commitment to market the principal’s product lines will not be as urgent as would be the case if only
the principal’s products were being represented.
• Distributors are the final category and they represent the most complicated end of the continuum that
starts with the simple commission agent. They actually purchase goods from the manufacturer and
then market these, in some cases also carrying out functions like packaging and producing
promotional material plus follow-up duties like the provision of service facilities and ensuring spare
parts availability. The main disadvantage for the principal here is lack of control in terms of how the
product is being marketed. In addition, such an arrangement is likely to be done on tighter profit
margins, as the distributor is doing far more than an agent would do in terms of providing payment
when the goods are received (if this forms part of the contract). This might be in addition to carrying
out additional warehousing and service functions. However, the right distribution arrangement in
one country might mean that the manufacturer will have more time and resources to concentrate on
other world markets.
10 Cultural and environment factors
This final section attempts to address a number of extra matters to which due deliberation should be
granted when a company becomes involved in international marketing. These are considered under a
number of separate headings:
• Language should be considered from the point of view of both the written and spoken language in
terms of sales literature and sales presentation. There might also be a language hierarchy in the
country and in some countries it is not expected that translations will be made from English - the
major international language - into the local language.
• Attitudes and values may be different in some countries in relation to matters such as timekeeping in
respect of appointments. In some societies it would be deemed exceptionally discourteous to be late
for an appointment, yet in other cultures lateness is the norm. In some societies there is a strong
feeling of kinship between members of the population and particularly towards the individual’s
family, where in some cases it would be extremely disrespectful to question the word of the head of
the family.
• Religion is a very important consideration in terms of the observance of such matters as prayer
times, religious rituals, sacred objects, sacred taboos and religious holidays.
• Aesthetic considerations cover matters like what is regarded as beautiful or good taste, which then
includes design criteria like colours and shapes and even brand name considerations. Many
international brand names have been coined which sometimes have unfortunate connotations in
certain languages.
• Education in a country is important, for if goods are to be marketed there, levels of understanding
and literacy must be considered when compiling instructions for use in respect of more complicated
products.
• Law and politics should be considered particularly in the case of there being a potential dispute in
relation to the products being supplied. Does the home country law take precedence over the
supplier’s country’s law, or does international law apply? Here, consideration must be given to
drawing up a sound contract of sale.
• Internal organisation of the country is important in terms of its commercial infrastructure which can
range from the way business is conducted to the state of the road and general transport systems.
11 Summary
International marketing is a very broad subject and many individual textbooks are devoted solely to this
subject. In this chapter we have considered its importance to a country and to individual companies. We
have examined the broader aspects of international trade in terms of difficulties encountered when
trading internationally, including how countries are structured in terms of their economic development
and some of the world’s trading blocks. Practical problems have also been considered from a company’s
standpoint and in this respect each of the elements of the marketing mix has been considered in turn in
the context of how it should be manipulated when marketing internationally.