International Marketing

Evaluate, Pervez N. Ghauri and Philip

Cateora (2014) Sustainable Marketing
Statement.

Tajudeen Ogunsola

MSc. International Marketing

Department of Management
Dr Peter Trim
MOMN025H7
Assignment: Written Report
No. of Words (2500)
Excl. Heading/Charts/Tables/Captions.
Deadline: 03/2018

1|Evaluate Ghauri &Cateora Tajudeen Ogunsola

 International
Marketing (MSc.)

Table of Content
Introduction. 2
Intro. 2

Pervez N. Ghauri and Philip Cateora (2014) Sustainable Marketing Statement. 3

1. Building sustainable relationships between firms and their customers. 4

Leodoro da Silva et al., (2003) Internal/External dimension framework 5

Figure 1. Internal dimension: the influence of the firm itself on making marketing
strategies. 6

Figure 2. External dimension: the influence of the environment 7

Figure 3. Firms’ objective on international marketplace

8

Figure 4. International strategy formulation 9

Figure 5. Marketing strategies and its relationships

9

Figure 6. Zeriti et al., (2014) Sustainable Export Marketing Strategy Fit and Performance 10

2. Changing business attitudes toward internal relationships

Yang-Im Lee and Peter Trim (2006a, 2008b) - Proposition Framework model
Figure 7. Lee and Trim four core Proposition

Proposition 1 9

Proposition 2 10

Proposition 3 11

Proposition 4

3. Successful products which suit the demands of customer’s needs.

Case: lululemon athletica Inc 12

Image 1. Sustainable marketing 12

Image 2. Sustainable fashion bag 13

Image 3. Sustainable ad campaign 14

Image 4. Sustainable global ad campaign

15

CONCLUSION 16

Bibliography, References & Websites 17

International Marketing - MOMN025H7

2|Evaluate Ghauri &Cateora Tajudeen Ogunsola

Introduction

This paper evaluates Pervez N. Ghauri and Philip Cateora's (2014) statement about
sustainable marketing within the context of "international marketing". The aim is to establish
the principle of sustainable marketing, models and frameworks used and how firms align
those goals with sustainable marketing. Therefore, Ghauri and Cateora's statement is
grouped into three critical statements to understand the process, principal strategies, and
academic discussions on the international marketing topic from a marketer's perspective.
Finally, it draws on an example from the Canadian yoga brand, lululemon athletica Inc., to
demonstrate a sustainable marketing strategy in action.

Pervez N. Ghauri and Philip Cateora statement:

"To build a sustainable relationship with customers, businesses are changing their
attitudes towards internal relationships and between themselves and traditional competitors,
suppliers, distributors, and retailers. As a result, it becomes a matter of collaborating with
customers and all others involved to produce goods that best serve the customer's needs"
Ghauri and Cateora (2014, p.195).

Addressing the following:

1. Building sustainable relationships between firms and their customers.

2. Changing business attitudes toward internal relationships

3. Successful products which suit the demands of customers' needs.

Assignment:

Evaluate a statement from the perspective of an international marketing manager and

provide examples to reinforce the arguments.

Word Count: 2500

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1. Building sustainable relationships between firms and their customers.

The evolution of international marketing implies that sustainability between businesses and
customers is a new phenomenon of recent. Instead, changes in various dynamic markets have
increased the uncertainty and complexity in an already highly competitive environment since
the '70s (Pfeffer and Salancik, 1978). For example, Sheth and Parvatiyar (1995) proposed the
first conceptualisation of the "socioecological' market orientation model. Ken Peattie (2001a)
explored marketing and social-environmental sustainability by categorising the relationship
into three distinct "ages". Mitchell et al. (2010) investigated the role of managers' attitudes,
perceptions, and firms' export dependence in adopting environmental practices. Hence, this
dispels the notion of sustainable marketing as a "new fad" word. Businesses have been
incorporating sustainable strategies, adopting sustainability in a constantly changing world,
while consumers either gravitated towards it or accepted sustainability in the marketing
relationship (e.g., Porter, 1985a, 1990b); Kotler et al., (1997); Ghemawat (2001); Teece, 2014).

According to Ken Peattie, the first age of sustainability is the "ecological marketing" of the
1970s, focusing on pressing environmental problems (Peattie, 2001a). The 'environmental
marketing' of the eighties was towards the "green consumer"' in search of competitive
advantage for products with superior socio-environmental performance. "Sustainable
marketing" in the nineties is the categorisation of market transformation progress towards
the substantive internalisation of socio-environmental costs previously treated as
externalities (Peattie, 2001b). Christian Grönroos observes marketing to relationship
marketing, where organisations focus on having customers and taking care of them
(Grönroos, 1994). Additionally, Sheth and Parvatiyar (1995) outlined a theoretical basis from
ecological and social problems associated with a free market that "guided market"
management framework, where corporations and society agree on a combination of
economic, political, and social and ecological norms to govern the marketing-based economy.
Consequently, international marketers must integrate ecological and ethical concerns to build
sustainable relationships with customers. Relationship marketing of the green marketing era
created a form of marketing that develops long-term, sustainability-oriented value
relationships with customers.

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Grönroos suggest that implementing sustainable marketing allows firms to provide superior
value to their customers through successful competitive strategy adoption (1994). Through
this strategy, international marketers connect internal capabilities with consumer desires to
build a foundation block that meets expectations through an evolving relationship that
delivers returns (profits) and customer satisfaction. Consequently, strategy planning and
marketing implementation achieve firms' sustainable marketing goals. David Aaker (1998)
explains that marketers must assess their firm's external factors and conduct self-analysis that
aligns its strategy to'...customer loyalty for a stable but mutually profitable long-term
relationship' (1994a). In this context, Wells (2013) noted six critical principles that underpin
sustainability business models. Kramer (2014) says sustainable development has four
elements, of which increasing profitability through sustainable decisions is one. Rudawska
(2018) agrees there are conditions and principles; however, sustainability ought to occur at
all levels for successful execution.

Marketing assessment and analysis helps identify the strategic direction for a firm sustainable
marketing approach. Within this context, Leodoro da Silva et al. propose that marketers
perform an international marketing strategy consisting of thorough analysis to satisfy
optimisation and achieve the proposed goals (2003). First, however, Leodoro da Silva et al.
discusses a framework, starting with internal dimensions (see figure 1).

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Figure 1. Internal dimension; the influence of the firm itself on making marketing strategies.

Leodoro da Silva et al., (2003) Internal dimension addresses the firm's influence on marketing
strategies, but Albert Humphrey's (1960) SWOT analysis assesses a firm's internal situation to
align the firm for improved growth. PESTLE analysis assesses external factors outside of firms'
control (Baines et al., 2017). Finally, Porter's Five forces identify a firm's potential impact that
harnesses competitive advantage (1980).

Figure 2: External dimension - the influence of the environment on international marketing

strategies

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Figure 2 identifies the external dimension that influences the environment on international
marketing strategies. Other external business models and frameworks include Porter's
Sustainable Competitive Advantage (SCA) model (1985a). Kotler et al., (1997) Planning,
Implementation and Control analysis, as well as the CAGE (Cultural, Administrative,
Geographic, and Economic) framework by Ghemewat (2001). The external dimension analysis
enables international marketers to have a deeper understanding and knowledge of how to
align a firm's goals to sustainable marketing programmes.

Figure 3 deals with a firm's objective on the international marketplace with various other
frameworks to complement a thorough analysis like the Ansoff Matrix model (1959) or Bruce
Henderson (1968) BCG model (Boston Consulting Group).

Figure 4 addresses international marketing strategies, but the inclusion of the Marketing Mix,
either the 7Ps model by McCarthy (1960) or SIVA (Solution, Information, Value, Access) model
by Dev and Schultz (2005), can help to achieve this.

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Figure 5, the final part of Leodoro da Silva et al., framework, connects the marketing strategies
and their relationship with the core dimensions and goals to define a firm's international
marketing strategy for strategic direction shown in figure 5. Figure 3 deals with a firm's
objective on the international marketplace, and figure 4 addresses international marketing
strategies formulations.

Figure 6. Conceptual model

Source: Adapted from Zeriti et al., (2014) Sustainable Export Marketing Strategy Fit and Performance

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Subsequently, strategies adapted to the local market can converge with customer needs, thus
enhancing performance through the economic benefits of deploying standardised marketing
programs aligned with Leodoro da Silva et al., formulating and implementing international
marketing development (2003). Consequently, Ghauri and Cateora (2014) treat the export
marketing mix as a reproduction of domestic marketing, shows sustainable concept
adaptation strategy, derive advantages from their experiential knowledge of a foreign market
shown in figure 6 (Zenriti et al., 2014).

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2. Changing business attitudes toward internal relationships
In the second part of Ghauri and Cateora's statement, scholars (e.g., Lee and Trim (2006a,
2008b; Beckett-Camarata et al., 1998; Souchon et al., 2016) found changing environments
and how firms must adapt to reflect a change in business attitudes to build sustainable
internal relationships. Consequently, the theories and concepts on the topic show the
imperative nature of connecting firms' foreign interests with sustainable relationships for
strategic issues.

Yang-Im Lee and Peter Trim (2006a, 2008b) provide a workable theory that addresses Ghauri
and Cateora's (2014) assumption using the Japanese and Korean perspectives. Lee and Trim's
framework enables marketers to examine the rationale behind successful intra-and interfirm
relationships built on four core values that stimulate and sustain relationship growth between
firms and stakeholders. In the framework, Lee and Trim offer four development propositions
that integrate strategies towards building internal relationships that are different from
traditional tactics. For example, proposition 1) Customer Service and Partnerships; 2)
Innovation and Partnership; 3) Relationship Marketing and Partnership; and 4) Comparative
National Cultural Values, Mutuality and Partnership, shown in figure 7.

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Prop 1. Customer Service and Partnerships.

The first proposition implies that international marketers must facilitate positive attributes
between participating partners within the value chain to exchange an excellent rewarding
customer service in the chain of command. Customer service and partnership relationship
between a firm and its customers intrinsically incorporate the "quid pro quo" principle where
either party exchanges something reciprocal. Therefore, Lee and Trim's (2008b) integrated
approach connects the suppliers and customer organisation with strategy through a set of
formal and clearly defined plans to develop and build sustainable competitive advantage via
'creating trusting, committed, [and] reciprocal relationships' (Beckett-Camarata et la, 1998
p.71). Tsai et al. (2014) observe this type of relationship, adding that 'relationship norms
provide a professional structure for managing partner relationships as well as guidelines for
mutually expected behaviours among participants' (p.4, 2014).

Prop 2: Innovation and Partnership

Proposition 2 coincides with Ghauri and Cateora's "collaborative relationships" where

innovation is central for firms to stay at the forefront of technology to survive, but innovation
alone is not enough (Ghauri and Cateora, 2014). Alfred Chandler's (1962) theory stresses the
importance of aligning a firm's strategic planning to improve organisational performance to
ensure international marketing survival. However, Lee and Trim suggest transparency,
information sharing, and open communication between partnerships enable the continued
development of competitive advantage in driving the relationship through restructuring,
reorganising and innovating quality, product, and services. In retrospect, Chandler's (1962)
strategic planning depends on firms downsizing to implement their planning strategy to react
to the rapid changes confronting them (Beckett-Camarata et al., 1998). Anne Souchon et al.,
2016) concurs with Lee and Trim's notion that rapid change and increased environmental
uncertainty make accurate predictions difficult. However, international marketers need to
develop agile organisations, particularly those operating in dynamic environments, because
international decision-making must allow for more flexible and spontaneous actions to allow
more excellent responsiveness (Souchon et al., 2016).

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Prop 3. Relationship Marketing and Partnership

Proposition 3 addresses relationship marketing partnerships, specific to marketers

implementing a strategic sustainability approach, which builds on the trustworthiness of
partnership and arrangements between the parties. In this section, Lee and Trim's framework
is ambiguous and vague at best-regarding relationship marketing and sustainability. However,
Hsiu-Fen Lin and Kai-Lin Chang believe it improves responsiveness to international customers
(2017). Furthermore, acquire superior learning in international markets, gain access to
cheaper resources (such as labour, technology, or specific competencies in a particular
country), and enhance a firm capacity for global monitoring of competitors, markets, and
other profit opportunities for sustainable marketing (Lin and Chang, 2017). Therefore,
relationship marketing and partnership seek to change consumer mindset, increase
sustainable purchase decisions, and drive firms towards an ethical or moral business
approach. To create sustainable company growth, empowering consumers to make better,
responsible, and sustainable purchase and consumption choices (Rudawska, 2018).

Prop 4. Comparative National Cultural Values, Mutuality and Partnership

Proposition 4 is the final jigsaw puzzle that connects proposition 1 to 3 with the level of
knowledge relating to comparative national cultural value in sustainable marketing strategies
for global firms. Beckett-Camarata et al. (1998) note that is managing relationships with
customers, especially employees, channel partners, and strategic alliance partners, is critical
to the firm's long-term success because of our perceived environmental uncertainty
(Duncan,1972). In other words, the relationship between mutuality and partnership,
stakeholders, and firms are creating new opportunities. Therefore, firms align internal
capabilities with changing attitudes to build robust but sustainable marketing strategies. At
this level, international marketers need to develop national cultural values aligned to strategic
stakeholders' issues in the planning and strategies for a firm's sustainable marketing
implementations.

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3. Successful products which suit the demands of customers' needs.

The customer needs, wants, and demand are constantly changing, firms operating sustainable
marketing need to evolve with consumers' concerns to position and align international
marketing strategies with critical global challenges. The Brundtland Commission adds that
'sustainable development is a development that meets the needs of the present without
compromising the ability of future generations to meet their own needs' (WCED, 1990).
Subsequently, sustainable marketing for international firms is a long-term objective that
addresses stakeholder needs to grow financially by exceeding customer demands to build and
retain customer loyalty. Consequently, 'sustainability is the ability to continue a defined
behaviour or process indefinitely' (Thwink.org, 2016).

According to Hsiu-Fen Lin and Kai-Lin Chang (2017), there is an essential need for international
marketers to consider international marketing development (IMD) strategies through which
a firm can expand its market and sustain a competitive advantage. Integration of partnership
through IMD seeks to incorporate competition in their respective international markets and
other exogenous factors that influence current and future international performance to meet
customer needs. Subsequently, sustainability and responsible business practices and
behaviours solve global issues within international marketing (e.g., Upton, 2016; Varadarajan,
2017). The critical element of Teece's investigation is the importance of marketers having to
develop and use income-generating assets in more than one country to pursue profits over
time, to balance a firm's ecological objectives with the consumers' environmental concerns
(2014). Nevertheless, international marketers can also use these strategy elements to
develop a robust insight into global scope network characteristics, and a basis of sustained
competitive advantage (SCA) exemplified by marketing scholars (Teece, 2014).

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Image 1. Sustainable Marketing, 2018

Source: lululemon athletica Inc., 2018

lululemon athletica Inc., the Canadian yoga brand, created a cult-like customer following to
match its cult-like company culture implemented a social and health sustainability marketing
strategy specific to each market. Since its inception (1998), the brand, has kept to its mission
statement 'to elevate the world from mediocrity to greatness' (lululemon, 2018).

Image 2. Sustainable fashion bag

Source: the bag "gym bag to die for" lululemon athletica Inc., 2018

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lululemon's reusable bag made from recycled materials became a fashion accessory must-
have, positioning the brand firmly in the premium athletic wear apparel in the international
market. From sourcing raw materials to the process and usage of the products by the "guest"
(customer), everything at lululemon protects the environment and anti-child-labour
legislation for East Asian operations. lululemon drives its international marketing
sustainability program globally on three core values. 1) Improving lives, 2) improving health,
and 3. exceeding expectations (lululemon, 2018).

Image 3. Sustainable ad campaign

Source: Global sustainable campaign by lululemon athletica Inc., 2018

Scholars (e.g., Aaker,1998; Peattie, 2001b; Belz and Peattie 2012) have shown that the
appropriateness of a particular marketing program['s] ...defined in terms of its "fit" with
environmental factors (Zeriti et al., 2014). Therefore, lululemon's dynamic market requires
dynamic market entry strategies dynamic PESTLE and SWOT analysis to evaluate market
conditions and adopt a sustainable approach to grow its market apparel that resonates with
that market. Continuous improvement in technology, so the brand uses its grassroots
marketing philosophy to flag the up-market niche flag in building that relationship with
"guests."

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Image 4. A sustainable global ad campaign

Source: Sustainable global consistency campaign by lululemon athletica Inc., 2018

Conclusion

Ghauri and Cateora point out that an international marketer's task is more complicated than
that of the domestic marketer because the international marketer must deal with at least two
levels of uncontrollable uncertainty instead of one. Subsequently, business operating in any
market has uncontrollable elements of uncertainty within that environment; therefore, each
foreign country adds its own unique set of uncontrollable challenges that delivers a robust,
sustainable marketing plan or strategy. In summary, marketers need to assess, evaluate, and
offer recommendations to lower the risk for brands entering or operating in foreign markets
by satisfying customer needs through sustainable marketing to drive profitability.

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