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An Asia-Pacific Perspective 6th Edition
International MARKETING
Richard
FLETCHER
International MARKETING Heather
An Asia-Pacific Perspective CRAWFORD
The new full-colour sixth edition of International Marketing is written from

International MARKETING
a wholly Australasian perspective. This text covers issues unique to local An Asia-Pacific Perspective 6th Edition
marketers and managers looking towards the Asia-Pacific region, the
European Union and beyond.
International Marketing presents a wide range of contemporary issues

faced by multinational enterprises (MNEs) as well as small and medium-
scale enterprises (SMEs)—mainly exporters—which make up the majority
of firms involved in international business in the Australasian region.
www.pearson.com.au/highered/fletcher
CRAWFORD
FLETCHER
Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2014 – 9781442560833 - Fletcher/International Marketing 6e
Fletcher-Int Marketing Cover AW1b.indd 1 20/06/13 12:25 PM

The legal environment 50 3.3 INTERNATIONAL HIGHLIGHT: Numbers tell only
Introduction 50 part of the story 91
2.5 INTERNATIONAL HIGHLIGHT: China’s legal and Marketing implications 93
arbitration systems 50
Differing legal systems and jurisdictions 51 The financial environment 93
Convertible and non-convertible
2.6 INTERNATIONAL HIGHLIGHT: When is a contract
currencies 93
legal? 51
Foreign exchange issues 93
Legal systems 52 Financial management 96
International law 54
3.4 INTERNATIONAL HIGHLIGHT: OSS—managing
Legal jurisdiction 55
exchange rate risks 97
Legal risk 56
The international financial system 101
Law and the marketing mix internationally 56
Marketing implications 105
Product 56
Summary 105
Price 57
Websites 105
Distribution 57
Discussion questions 106
Promotion 57
IMEdge 106
The impact of law on international
References 107
operations 58
Environment 59
Human resources 59 4 Catering for the social and
Intellectual property protection 59 cultural environment of
Anti-trust 63 international marketing 108
Reducing the impact 63 Opening vignette: Culture transcends
Transfer pricing 63 national boundaries 109
2.7 INTERNATIONAL HIGHLIGHT: Drug giants told to Introduction 111
reveal secrets 64
Definition of culture 111
Contracts and dispute resolution 65 Culture as a collective fingerprint 112
Conciliation 65 Elements of culture 112
Arbitration 66 4.1 INTERNATIONAL HIGHLIGHT: Multiculturalism
Litigation 66 as an asset 115
Marketing implications—legal 67
Expressions of culture 116
Summary 69
Websites 70 The impact of culture on international
Discussion questions 70 marketing 116
IMEdge 71 Knowledge 117
References 71 Sensitivity 117
Collectivism 117
3 Appreciating the dynamics Social conventions 117
of the international economic 4.2 INTERNATIONAL HIGHLIGHT: The Chinese way 118
and financial environment 74 Cognitive styles 118
Opening vignette: Big can be beautiful 75 Cultural universals 119
Levels at which culture operates 119
Introduction 77
Cultural concepts and cultural differences 122
The economic environment 77 Key cultural concepts 122
The global economic scene 78
Key cultural differences 126
3.1 INTERNATIONAL HIGHLIGHT: Putting the puff into
Proton 79 4.3 INTERNATIONAL HIGHLIGHT: Providers of financial
services ignore cultural differences at their peril 131
International trade 81
3.2 INTERNATIONAL HIGHLIGHT: Newly industrialised Culture and communication 132
countries—the secret of success 82 Verbal communication 132
Measuring markets 89 Non-verbal communication 133
DETAILED CONTENTS VII
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Cultural adaptation and 5.2 INTERNATIONAL HIGHLIGHT: What’s next—
communication 133 from brain boosters to a factory in the home! 167
Cross-cultural comparison studies 134 Consumer behaviour online 171
Hofstede 134 Barriers to internet consumption 172
Trompenaars 136 Implications of online behaviour for
Etic versus emic approach 138 international marketing 173
4.4 INTERNATIONAL HIGHLIGHT: Creating favourable Digital marketing strategies 173
conditions—feng shui 140 Business to consumer (B2C)
marketing online 174
Culture and international negotiation 141 5.3 INTERNATIONAL HIGHLIGHT: Dell mass
Background to negotiation 142 customisation 175
Culture and the conduct of 5.4 INTERNATIONAL HIGHLIGHT: Virtual Products 183
negotiations 144
Business to business (B2B)
4.5 INTERNATIONAL HIGHLIGHT: A bull in the marketing online 183
china shop 145 5.5 INTERNATIONAL HIGHLIGHT: BCS Group 184
Preparing for international Consumer to consumer (C2C)
negotiation 146 marketing online 186
Stages in international negotiation 148 Market research online 187
The atmosphere of international Integrating online and offline
negotiations 149 strategies 188
Summary 150
The future and technology change 188
Websites 151
5.6 INTERNATIONAL HIGHLIGHT: Lights Out 189
IMEdge 151 Summary 190
References 152 Websites 190
5 Technology and change in IMEdge 192
international marketing 154 References 192
Opening vignette: The Long Tail 155

6 Contemporary environmental
Introduction 156 variables in international
The technology environment 156 marketing 196
Infrastructure development and Opening vignette: The risk factor 197
economic history—‘techno-economic Introduction 199
paradigms’ 157 Ethics 199
Information and communication: 6.1 INTERNATIONAL HIGHLIGHT: Australian firms in
the fifth techno-economic the firing line 201
paradigm 159
Varying views of ethics 202
5.1 INTERNATIONAL HIGHLIGHT: Is it a phone? 160
6.2 INTERNATIONAL HIGHLIGHT: Differing views of
Information neural networks: the what is a bribe 203
sixth techno-economic paradigm 161
Environmentalism 204
The information revolution and the 6.3 INTERNATIONAL HIGHLIGHT: Ethical issues in
internet 161 the distribution channel 205
The global network 161
Environmentalism as a threat 207
The new information infrastructure 163 Environmentalism as an opportunity 208
New business models 163 6.4 INTERNATIONAL HIGHLIGHT: Companies tiptoe
Implications for international through Indonesia’s political minefields 209
marketing 164
Influences on internet use worldwide 165 Geography and climate 210
E-government 166 Terrorism 211
International diffusion of innovation 167 Health-related issues 213
VIII DETAILED CONTENTS

Consumerism 215 Summary 251
Infrastructure endowment 215 Websites 251
Population trends 215
IMEdge 252
Summary 216
References 252
Websites 216
IMEdge 217
8 International market
References 217
selection and entry 254
Opening vignette: Successful exporters
think outside the square 255
PART B STRATEGIES Introduction 257
FOR INTERNATIONAL
International market selection 257
MARKETING 219 Screening for market selection 258
7 Researching international Analysing the attractiveness of
markets 220 individual markets 258
A screening approach 259
Opening vignette: International marketing
research—oranges or lemons? 221 Market selection trends 264
Introduction 222 Market selection for experienced
Information needs for international exporters 265
marketing 222 The nation state and market selection 269
International research decisions 223 Modes of entering foreign markets 270
7.1 INTERNATIONAL HIGHLIGHT: Common 8.1 INTERNATIONAL HIGHLIGHT: Solution selling
international research mistakes 225 works in India 270
Costs of international marketing Export-based entry 271
research 226
8.2 INTERNATIONAL HIGHLIGHT: Franchising as a way
Stages in planning international
to go international 273
marketing research 228
Issues in international marketing Manufacturing-based entry 274
research 229 Relationship-based entry 276
The international research process 229 8.3 INTERNATIONAL HIGHLIGHT: How two fierce
Stage 1: Problem identification 229 rivals find a ‘soft-spot’ to be friends again! 279
Stage 2: Research design 230 The ‘born global’ entry mode 281
Stage 3: Collection of data 234 Other entry modes 282
7.2 INTERNATIONAL HIGHLIGHT: Research issues in Evaluation of entry modes 282
the world’s fastest growing markets 235
Theories of market entry 282
Stage 4: Analysis and interpretation Dunning’s eclectic paradigm 283
of data 242 Williamson’s transaction cost
Stage 5: Dissemination of approach 284
information/research report 243 Internalisation theory 285
Other issues 244 Information for market entry and
Research in developing countries 244 expansion 285
New international research Factors internal to the firm 285
techniques 245 Factors external to the firm 286
7.3 INTERNATIONAL HIGHLIGHT: Gathering data in Summary 288
Zimbabwe 245 Websites 288
Managing international research 247 Discussion questions 289
Test marketing 250 IMEdge 289
Government assistance with References 290
international marketing research 250
DETAILED CONTENTS IX

9 International competitive Internationalisation 341
strategy 292 Why do firms internationalise? 341
Sequential approaches 343
Opening vignette: How to create a new
Non-sequential approaches 343
international market with a new product—
the Apple iPad strategy 293 10.1 INTERNATIONAL HIGHLIGHT: International
Introduction 295 production networks 345
A holistic view of
Competitive advantage 296 internationalisation 346
National competitive advantage 296 Relationships 348
Competitiveness and e-business 301 10.2 INTERNATIONAL HIGHLIGHT: Telstra in Vietnam 349
International competitive advantage
and generic strategies 302 Networks 351
Value innovation 304 10.3 INTERNATIONAL HIGHLIGHT: Collaborative
Value chain analysis 305 networks in the international marketplace 353
Competitor analysis 308
9.1 INTERNATIONAL HIGHLIGHT: Aromababy—
The network view of competition 354
natural baby skincare all the rage! 313 10.4 INTERNATIONAL HIGHLIGHT: Building
international business based on networks 355
International strategies 314 Relationships and networks in Asia 355
9.2 INTERNATIONAL HIGHLIGHT: International
International customer relationship
strategies and the Australian beverage industry 314
management 356
Components of an international
marketing strategy 316 Sustainability in the international
Standardisation vs differentiation 316 domain 357
Segmentation, targeting and Summary 359
positioning 319 Websites 359
Dominant firm 322 Discussion questions 359
9.3 INTERNATIONAL HIGHLIGHT: Harvey Norman IMEdge 360
moves into Asia, Eastern Europe and the UK 323 References 360
Market leader 324

Challenger 327
11 Globalisation 362
Follower 328 Opening vignette: ‘The ears have it’ 363
9.4 INTERNATIONAL HIGHLIGHT: Samsung’s charge Introduction 365
to the top 329 Globalisation from a micro perspective 367
Niche specialist 330 What is globalisation? 367
The Asian approach to strategy 331 Globalism trends 367
An international portfolio 331 Globalism as a philosophy 368
9.5 INTERNATIONAL HIGHLIGHT: Pre-emptive 11.1 INTERNATIONAL HIGHLIGHT: Toyota—a visionary
competitive strategy 332 car company acting on global trends 370
Summary 333 Motivations for globalisation 371
Websites 334 Characteristics of the global firm 372
Discussion questions 335 Global strategy framework 373
IMEdge 335
11.2 INTERNATIONAL HIGHLIGHT: Australia and the
References 336
global automotive industry 374
10 Internationalisation, 11.3 INTERNATIONAL HIGHLIGHT: Globalisation and

relationships and networks 338 the global economic crisis 376
Opening vignette: The new relationship Global or multinational? 377

marketing perspective 339 Opportunities and threats of
Introduction 341 globalisation 378
X DETAILED CONTENTS

The pitfalls of implementing a global 12.4 CASE EXAMPLE: Marketing objectives 410
marketing program 379 Economic evaluation 412
Issues 381 12.5 CASE EXAMPLE: Planning assumptions 412
‘Glocalisation’ 382
Implementation and control 413
11.4 INTERNATIONAL HIGHLIGHT: Pitching globally,
12.6 CASE EXAMPLE: Control mechanisms 415
selling locally 383
Globalisation from a macro perspective 384 Challenges to international marketing

Sociocultural level 385
planning 415
Economic/financial level 385 12.2 INTERNATIONAL HIGHLIGHT: How to wiggle
Political/legal level 385 your way into new markets 417
Technology 386 Practical international marketing
Marketing mix issues 386 planning 418
The growth of Asian competitors 388 Market-based and product-based
1. It’s always best to be a first mover 388 planning 418
2. Control the bottlenecks 388 Incorporating creative insight 418
3. Build walled cities 388 The importance of management
4. Bring market transactions aspirations 419
in-house 389 Summary 419
5. Leverage your host government’s Websites 420
goals 389 Discussion questions 420
6. Encourage company networks IMEdge 421
and information sharing 389 References 421
7. Commercialise on others’
inventions 390
8. Rewrite the rules 390 PART C INTERNATIONAL
Summary 390 MARKETING
Websites 391
IMPLEMENTATION 423
IMEdge 392 13 Modifying products for
References 392 international markets 424
Opening vignette: Winning over the
12 Planning for effective Europeans 425
international marketing 394 Introduction 426
Opening vignette: Klip-it to the world 395 The product 426
Introduction 396 What is a product? 426
Understanding product market
The context of international strategic
structure 428
market planning 396
International product strategies 428
Steps in the international marketing
Product diffusion and adoption in
planning process 399 international markets 428
12.1 CASE EXAMPLE: The logistics industry 399 Redefining the business 429
Evaluation of alternative marketing Leveraging capabilities 432
strategies 404 Modifying products for international
12.2 CASE EXAMPLE: Alternative markets 433
market-entry strategies 407 13.1 INTERNATIONAL HIGHLIGHT: Cherries go to
Japan and China turns on to Tim Tams 434
12.1 INTERNATIONAL HIGHLIGHT: Pecunia non olet—
or does it? (Latin for ‘money does not smell’) 408 Developing a product for an
international market 437
Corporate objectives 409 Standardisation versus adaptation
12.3 CASE EXAMPLE: Mission statement 410 Creating a global product 439
Marketing objectives and strategy 410 13.2 INTERNATIONAL HIGHLIGHT: Born global 440
DETAILED CONTENTS XI

Marketing industrial products 14.3 INTERNATIONAL HIGHLIGHT: International
internationally 440 pricing of commodities 472
Industrial products 440
Currency inconvertibility 473
Features of the international market
for industrial products 442 Constraints on setting prices 473
Branding and packaging for international Restrictive trade practices 474
markets 443 Administered pricing 474
Dumping 475
13.3 INTERNATIONAL HIGHLIGHT: Creating an
Inflation 476
attractive brand for the Chinese market 443
Branding Global pricing strategies 477
Global versus local pricing strategies 477
13.4 INTERNATIONAL HIGHLIGHT: Global branding and
Transfer pricing 478
emerging markets 445
14.4 INTERNATIONAL HIGHLIGHT: Uneasy rest the
Packaging and labelling 447
heads of tax authorities 479
Summary 449
Websites 449 Summary 480
Discussion questions 449 Websites 481
IMEdge 450 Discussion questions 481
References 450 IMEdge 482
References 482
14 International pricing for

profit 452 15 Promotion in international
marketing 484
Opening vignette: Currency fluctuations
and global pricing 453 Opening vignette: Sheltering under the
umbrella 485
Introduction 454
Introduction 486
International pricing issues 454
The role of price 454 Communication theory 486
Reference prices 454 The communication process 486
Perceived value 455 Constraints in international
marketing communication 488
Nature of the pricing decision 455
Integrated marketing
14.1 INTERNATIONAL HIGHLIGHT: Creative pricing communication 489
strategies in the international domain 459
Factors in international communication 489
International pricing strategy 460 Culture 489
Preliminary planning 460 Language 492
Terms of sale 462 Education 493
Terms of payment 463 Economic development 494
International price setting 465 Media infrastructure 495
Full versus marginal cost pricing 465 Government regulation 495
Cost-plus pricing 466 15.1 INTERNATIONAL HIGHLIGHT: There’s no
Marketplace pricing 466 accounting for taste 496
Optimal price setting 466
Content of international communication 496
Mismanagement of price setting 467
The management of promotional
Alternative approaches to price
communication 497
setting 467
Buyer’s decision process 498
14.2 INTERNATIONAL HIGHLIGHT: The Japanese
Message strategy formulation 498
approach to price setting—competing on value 468
Pull strategies in international
Responding to price changes in
international markets 468 promotion 499
Pricing and foreign currency Advertising 500
fluctuations 470 15.2 INTERNATIONAL HIGHLIGHT: A tale of two cities 501
XII DETAILED CONTENTS

Publicity and public relations 508 Motivation and termination 547
Push strategies in international Management implications 549
promotion 511 Wholesaling and retailing 549
Trade shows 511 Wholesaling 549
Sales promotion 514 Retailing 550
Personal selling 515 16.3 INTERNATIONAL HIGHLIGHT: The changing
retail scene in Japan 552
Issues 519
Country of origin 519 Global distribution issues 552
Standardisation versus adaptation 521 Standardisation 552
Consumer versus B2B promotion Grey markets and unofficial
internationally 522 distribution channels 553
Summary 523 16.4 INTERNATIONAL HIGHLIGHT: Grey market
Websites 523 supply chain embarrasses major retailers 554
Discussion questions 523 16.5 INTERNATIONAL HIGHLIGHT: The internet is
IMEdge 524 no bum steer 555
References 524 Physical distribution 556
16 Effective international Nature of the shipment 556
distribution 528 Customer service 556
Opening vignette: Getting your goods Packaging and protection 556
to market 529 Transportation 557
Warehousing 558
Introduction 531
16.6 INTERNATIONAL HIGHLIGHT: Cormo Express—
Role of channel intermediaries 532
lessons learned? 559
Channels of distribution 533
Use of an export intermediary 533 Desired inventory levels 560
Direct export 533 Documentation 560
Exporting intellectual content 534 Tracking of consignments 560
Selection of freight forwarders 560
Manufacture internationally 534
Summary 560
Strategic alliances 537
Websites 561
Distribution criteria 537 Discussion questions 561
Structure 537
IMEdge 562
Availability of channels 537 References 562
Cultural issues 538
Government and legal constraints 538
Commercial and environmental
17 Marketing services and
constraints 539
projects internationally 564
16.1 INTERNATIONAL HIGHLIGHT: Replicating Opening vignette: Marketing education
distribution channel strategy in emerging internationally—from rags to riches 565
markets 539 Introduction 566
Distribution strategies 540
International marketing of
Cost 541
services 567
Control 542
The nature of services 567
Commitment 542
The marketing paradigm for services 567
Nature of the market 543
The content of services marketing
Nature of product/service 543 and delivery 568
Objectives of the firm 544 Service quality 569
Managing international distribution 544 Service dominant logic 569
Selection 544
Marketing services in the international
16.2 INTERNATIONAL HIGHLIGHT: The elusive agent 545
marketplace 570
Appointment 547 Drivers of internationalisation of
Communication and control 547 service firms 571
DETAILED CONTENTS XIII

Issues in services exports 572 Financing issues and international
Services and international market projects 590
entry 574 Co-financing 590
17.1 INTERNATIONAL HIGHLIGHT: Health care Build and operate schemes 590
goes global 576 Management implications 592
Australian trade in services 577 The screening process in bid
selection 592
International marketing of education 577
Summary 594
International marketing of tourism 577
Websites 594
International retailing and wholesaling 577
17.2 INTERNATIONAL HIGHLIGHT: Building blocks 578
IMEdge 595
International marketing of References 596
professional services 577
International marketing of
18 Future focus for
international marketing 598
projects 579
Opening vignette: Are Western
17.3 INTERNATIONAL HIGHLIGHT: Winning management techniques relevant to
international projects—alternative approaches 580 emerging markets? 599
Marketing issues 581 Introduction 600
Product 581 Future directions 600
Price 581 Ethnicity 600
Promotion 582 Sources of growth 600
Distribution 582 Decline of economic rationalism 601
Politics 582 Shortcomings of globalisation 601
People 582 Economic shocks 602
Australia and overseas projects 583 Relevance of current marketing
Background 583 theories 602
Positioning 583 Growth sectors in emerging
markets 602
Alternative strategies 583
Problem areas 584 Common constraints in emerging
markets 604
The project cycle 585 Political and legal constraints 604
Parties involved 585 Economic constraints 605
Project identification 586
Technology and infrastructure
Project preparation 586 constraints 605
Project appraisal 586 Social, human and natural constraints 605
Project negotiations 587
Doing business in emerging markets 606
Project implementation 587
Researching emerging markets 606
Project evaluation 587
Equivalence challenges 606
Other issues 587 Information gathering and data
International competitive bidding 587 collection challenges 607
Consultancy opportunities 587 18.1 CASE EXAMPLE: Researching in four
Information sources 588 African nations 608
Projects and multilateral development 18.2 CASE EXAMPLE : Importance of social
agencies (MDAs) 588 networks at the BOP 611
Marketing tactics 588 The impact of environmental
variables on emerging markets 611
17.4 INTERNATIONAL HIGHLIGHT: Australian firms
18.1 INTERNATIONAL HIGHLIGHT: One way to
blossom in the Middle East market 589
succeed in Russia 612
Projects and bilateral aid 589 Consumer behaviour at the BOP 614
Aid issues 589 Tailoring the offering to the
Mixed credit facilities 590 circumstances in emerging markets 616
XIV DETAILED CONTENTS

18.3 CASE EXAMPLE: Importance of the BOP 18.7 CASE EXAMPLE: Promotion options for the BOP 620
segment to the firms’ business 616
Implications for creating a strategy
18.2 INTERNATIONAL HIGHLIGHT: Cutting the cloth for emerging markets 621
to suit the pocket 617 Summary 621
18.4 CASE EXAMPLE: Product strategy adaptation Websites 622
for the BOP 617 Discussion questions 622
18.5 CASE EXAMPLE: Altering pricing strategy to IMEdge 622
fit the BOP market 618 References 623
18.3 INTERNATIONAL HIGHLIGHT: Beyond the last
mile! 619
Index 706
18.6 CASE EXAMPLE: Distribution opportunities and
challenges at the BOP 619
DETAILED CONTENTS XV

PREFACE
Aims of this textbook
For many years both students and teachers of international marketing in Australia and New
Zealand have complained at the lack of a comprehensive textbook on this subject that can both
reflect the needs of marketers and managers in the region and to which students can relate. Texts
currently available, written by North American and, to a lesser extent, European academics, are
largely irrelevant as they focus for the most part on the needs of the trans-national company.
Their treatment of the problems faced by small and medium-sized firms (SME’s) in undertaking
international marketing is cursory and does not reflect the circumstances faced by firms in
Australasia. Yet it is these SME’s that make up the vast bulk of firms involved in international
business in this region
To address this shortcoming, this text focusses on the needs of such SME’s as they endeavour
to go international. In addition, there are very few transnational firms, but many branches or
subsidiaries of such firms. This text also has as a focus on the needs of Australasian subsidiaries
of transnational firms and the role in international activities of managers of their local subsidiary
or branch operations. Although there is some coverage of international marketing from the
perspective of the trans-national company (TNC), the perspective of this text in relation to the
TNC is mostly on the role of the transnational firm as an international competitor.
The issues of focus outlined above cannot be addressed simply by adapting an American
text. An adaptation cannot fully reflect the unique characteristics of undertaking business in
the region. For this reason it was decided to write a totally new textbook. The perspective in
this sixth edition of the book is that of firms in Australia and New Zealand looking outwards,
principally, but not exclusively, towards the Asia–Pacific region, as this is the major focus of
their international business activities. As many of the case studies and examples used in this
text involve countries in Asia, the text is also relevant for courses in international marketing
delivered in Asian countries.
A problem encountered with many current texts in international marketing is that almost
all the examples, case studies and anecdotes relate to foreign firms doing business with other
foreign firms, and few of the firms involved are based in the region, let alone in Australia or New
Zealand. This makes it difficult for students to identify with the issues involved. In this text there
are a large number of new cases written from the perspective of firms in the region and at least
four international marketing highlights are included in each chapter, most of which relate to
Australian or New Zealand firms. In addition, concepts are illustrated by anecdotes relating to
experiences of managers undertaking international marketing activities in the region.
Changes in the 6th Edition

The writing of the sixth edition was preceded by a rigorous review of the fifth edition by
academics at other universities in Australia and New Zealand who are engaged in the teaching
of international marketing. A consensus of their views is reflected in a number of changes in
the sixth edition. These include having separate chapters on technology and contemporary
variables in international marketing and an additional chapter on international marketing
in the decade ahead. The structure of the book has also been modified. After the introductory
chapter, which explores what international marketing is, the book is divided into three parts,
each of which has an introduction. The linking between the parts is reflected in the figure below
which connects the international environment with planning and strategy, and planning and
strategy with implementation. Instead of material also being in appendices on the website for
the book, the content of these appendices is now incorporated into the text of the chapters:
‘How to write a case study’ at the end of Chapter 1; ‘Incorporating international trade
relations into international marketing’ in Chapter 3; ‘Coping with countertrade’ in Chapter 8;
‘Winning international projects’ in Chapter 17 and ‘Marketing at the Bottom of the Pyramid’ in
Chapter 18.

Other changes in this sixth edition include having longer case studies for each chapter, most
of which are new to this edition. 56 additional cases are also available to supplement the text; a
list correlating these to the chapter they are most likely to be appropriate to is on page XXX. Many
of the examples used previously have been replaced with more recent illustrations; statistics
have also been updated and coverage of eMarketing in the international domain has now been
integrated into the text of each chapter rather than being treated separately.
The focus on Asia has been retained. However, in a number of instances where theories of
international marketing are discussed, there is an emphasis on the fact that theories developed
on the basis of research in Western/developed countries need to be viewed with circumspection
before they can be applied to emerging markets, most of which are in developing, rather than
developed, countries. More examples of doing business in countries outside Asia have been
included to better reflect the changing market conditions faced by Australian and New Zealand
firms in the international domain due to the enlargement of the European Union and the signing
of an increased number of free trade agreements by Australia and New Zealand.
Structure of the book

Introduction The first chapter by way of introduction concentrates on the rationale for
international marketing
Part A covers international environmental analysis and contains chapters on the various
environmental variables that impact on international marketing. These include political and legal
variables, economic and financial variables, social and cultural variables, technology variables
and contemporary variables in the international environment such as ethics, environmentalism,
terrorism, health, infrastructure, climate and geography.
Part B covers international planning and strategy. It commences with a chapter on researching
international markets. This is followed by a chapter in which selecting and entering foreign
markets is discussed. The next chapters contain discussion of strategies for gaining international
competitive advantage, aspects of internationalisation including the formation of relationships
and the building of international networks, and issues involved in globalisation. This Part
concludes with a chapter on planning for international marketing.
Part C relates to international marketing implementation and considers ways in which each of
the marketing mix variables needs to be modified when doing business internationally. Included
in this Part are chapters on modifying products for international markets, international pricing
for profit, promoting in international markets, and effective international distribution. This
Part concludes with a chapter on the marketing of services internationally and winning major
projects in other countries.
Conclusion The last chapter by way of conclusion raises issues concerned with the likely direction
of international marketing in the decade ahead.
At the end of each chapter there are a number of discussion questions which can be used either
for self-testing or for examination purposes. In addition, at the end of each chapter, there is an
IMEdge research exercise that requires the student to go online and research a specific issue
related to the content of the chapter. Moreover, the structure of the chapters—the introductory
paragraphs, the international marketing highlights, IMEdge, the anecdotes and the new case
studies—help to bring the real world of international marketing from an Asia–Pacific perspective
directly into the classroom.
PREFACE XVII

Introduction
Ch 1 The rationale for international marketing
Part A
Chapter 2 Avoiding the pitfalls of the international political Chapter 5 Technological change in international marketing
and legal environment Chapter 6 Contemporary environmental variables in
Chapter 3 Appreciating the dynamics of the international international marketing of international
economic and financial environment marketing
Chapter 4 Catering for the social and cultural environment
of international marketing
Part B
Chapter 7 Researching international markets Chapter 10 Internationalisation, relationships and networks
Chapter 8 International market selection and entry Chapter 11 Globalisation
Chapter 9 International competitive strategy Chapter 12 Planning for effective international marketing
Part C
Chapter 13 Modifying products for international markets Chapter 16 Effective international distribution
Chapter 14 International pricing for profit Chapter 17 Marketing services and projects internationally
Chapter 15 Promotion in international marketing
Conclusion
Chapter 18 International marketing in the decade ahead
Alternative ways of using this textbook

Because this sixth edition has been considerably restructured and augmented it contains much
more material than is needed for a basic unit in international marketing. This allows the instructor
to select those aspects that suit the course requirements and to use the remainder of the book as
additional reading for students. The structure of the book is such that, through the selection of
different parts or chapters, it can be used as a tertiary text at different levels. The book can be used
as (1) a basic text for international marketing, (2) an advanced text for international marketing
management or (3) a text for contemporary issues in international marketing.
As a basic text for international marketing
Those proposing to use the book for this purpose might consider the combination of Chapter 1 (The
rationale for international marketing) with Chapter 2 (Avoiding the pitfalls of the international
political and legal environment), Chapter 3 (Appreciating the international economic and
financial environment) , Chapter 4 (Catering for the cultural and social environment) Chapter 5
(Technological change in international marketing) and Chapter 6 (Contemporary environmental
variables in international marketing (rom Part A; Chapter 7 (Researching international markets)
and Chapter 12 (Planning for effective international marketing) from Part B; Chapter 13
XVIII PREFACE

(Modifying products for international markets), Chapter 14 (International pricing for profit),
Chapter 15 (Promotion in international marketing) and Chapter 16 (Effective international
distribution) from Part C.
As an international marketing management text
Those proposing to use the book as an international marketing management text may consider
the combination of Chapter 1 (The rationale for international marketing) with Chapter 7
(Researching international markets) Chapter 8 (International market selection and entry),
Chapter 9 (International competitive strategy), Chapter 10 (Internationalisation, relationships
and networks) and Chapter 11 (Globalisation) from Part B; Chapter 13 (Modifying products for
international markets), Chapter 14 (International pricing for profit), Chapter 15 (Promotion
in international marketing) Chapter 16 (Effective international distribution) and Chapter 17
(Marketing services and projects internationally) from Part C. Students could also be required to
familiarise themselves with the content of Part A as part of their background reading.
As a text in contemporary issues in international marketing
Those proposing to use the book for a contemporary international marketing unit as a follow-on
to one of the above units may consider a combination of Chapter 1 The rationale for international
marketing, Chapter 5 (Technological change in international marketing) and Chapter 6
(Contemporary environmental variables in international marketing) from Part A; Chapter 7
(Researching international markets), Chapter 8 (International market selection and entry),
Chapter 9 (International competitive strategy), Chapter 10 (Internationalisation, relationships
and networks), Chapter 11 (Globalisation), Chapter 12 (Planning for effective international
marketing) from Part B and Chapter 17 (Marketing services and projects internationally) from
Part C and the concluding chapter, Chapter 18 (International marketing in the decade ahead).
PREFACE XIX

ADDITIONAL CASES ON THE WEBSITE
These cases are listed below under the chapters to which they may best relate.
Chapter 1
• ‘42 below—the excitement of start-up, new products, new markets, innovation and creative
promotion’ by Greg Walton.
• ‘Turning tradition into export success’ by Joe Williams
• ‘A golden opportunity: exporting Easy Flame BBQ’s to Argentina’, by Al Marshall
Chapter 2
• ‘Conflict and resolution—avoiding political and legal pitfalls: the case of ENRON in India’, by
Frank Bartels.
• ‘Organic products in Japan: an issue of quality analysis’ by Tina Slattery and Richard Fletcher.
Chapter 3
• ‘Exporting to Japan—an Australian company faces the test when crisis strikes’, by Luisa Rust
and Richard Fletcher.
• ‘Tourism New South Wales’s experience in marketing tourism in the aftermath of the Asian
financial crisis’, by Wisitta Gray and Richard Fletcher.
• ‘Westfield Holdings Ltd and Malaysia—risk in a country in the process of change’, by Cathleya
Ungsuprasert, Anjali Phadke and Richard Fletcher.
Chapter 4
• ‘Austel Consortium Pty Ltd—entering the Islamic market’, by Michelle Lim and Richard Fletcher.
• ‘Hong Kong Disneyland: when big business meets feng shui, superstition and numerology’, by
John Kweh and Justin Cohen.
• ‘Malaysia: ASEAN’S cultural gold mine’, by Siva Muthaly, Robert Rugimbana and Mike Willis.
• ‘The cat that conquered the world: Hello Kitty and the spread of Nippon Culture’, by Jan
Charbonneau.
• ‘Negotiation to win international projects—Cardno MBK in Indonesia’, by Trevor Morgan and
Richard Fletcher.
Chapter 5
• ‘Global website strategy in an international business’, by Danielle Lawson and Richard Fletcher.
• ‘In English please: delivering online customer service to the non-English speaking world’, by Jan
Charbonneau.
• ‘The pitfalls of marketing Australian technology overseas’ by Shelley Nottle and Richard Fletcher.
Chapter 6
• ‘Ausfurs in Argentina—a human rights dilemma’, by Elizabeth Hayter, Rene Cordony and Richard
Fletcher.
• ‘The dilemma of live sheep exports’, by Jun Wen Chen and Richard Fletcher.
Chapter 7
• ‘Market opportunities for Australian furniture in Asia’, by Al Marshall.
• ‘Market research in China: what can Australian companies teach us?’, by Ron Breth.

• ‘The hosiery market in Taiwan: information please!’, by Al Marshall.
• ‘Starbucks’ failure in Australia’, by Paul Patterson, Jane Scott and Mark Uncles.
Chapter 8
• ‘International market selection: balancing opportunity and risk’, by Hongzhi Gao and John Knight.
• ‘Selecting the most appropriate mode of entry for a service company expanding abroad—Lclp’s
entry into the Japanese market’, by Dajana Badzim and Richard Fletcher.
• ‘Setting up a cosmetic surgery overseas’, by Tony Ward.
Chapter 9
• HiBrow Hotel Group: international strategic planning’, by Kimble Montagu and Nick Grigoriou.
• ‘Roller Ramp: providing access for the mobility impaired’, by Charles Hollis.
• ‘What’s cooking at Aunt Betty’s?’, By Greg Walton and Glenn Cooksley
• ‘Faber-Castell Australia defends its intellectual property’, by Natalie Faber-Castell and Richard
Fletcher.
Chapter 10
• ‘Benefits of “clustering” and niche strategies: how SMEs in the Australian wine industry can
develop a competitive advantage for international expansion’, by Susan Freeman and Dean
Weinman.
• ‘Globalisation of the higher education market: the case for Australia’, by Terry Gatfield.
• ‘Whittle Programming: a born global firm’, by Richard Fletcher.
Chapter 11
• ‘Designing a relationship approach for participating in the Hong Kong market’, by Michael
Trimarchi.
• ‘Into the world of guanxi relationships—a study of success, failure and decline’, by Mike Willis.
• ‘Sansom Contract Services Ltd: size is no barrier’, by Nitha Dolli and Mary Ellen Gordon.
• ‘Evolution of a firm’s internationalisation from a network perspective’, by Richard Fletcher and
Nigel Barrett
• ‘Internationalisation of professional and technical firms’, by Murray Rees.
Chapter 12
• ‘Desert Art of Australia’ by Melisa Donald and Richard Fletcher.
• ‘Ansell International: Managing in a turbulent global arena’, by Susan Freeman.
• ‘Managing business co-operation contracts’, by Daniel Clifford and Richard Fletcher
Chapter 13
• ‘Australian Pineapple Products Exporting Co’, by John Jackson.
• ‘Exporting lamb to the Saudi Arabian market—the impact of culture on the production process’,
by Craig Robinson, Eva Lee and Richard Fletcher.
• “Green” international wine marketing’ by Mary Pugh and Richard Fletcher.
• ‘Modifying products for overseas markets—McDonald’s menu’, by Peter Ling.
• ‘Can brand image cross the cultural divide?—the case of J.J.’s entry into the Mexican Market’,
by Monar Ead and Richard Fletcher.
ADDITIONAL CASES ON THE WEBSITE XXI

Chapter 14
• ‘Pricing the Emu: Australian clothing for overseas customers’, by Al Marshall.
• ‘Pathline Australia Pty Ltd’, by James Dunn.
Chapter 15
• ‘Breaking Australian music overseas: persuasive promotional strategies for entering national
markets’, by Pandora Kay.
• ‘Crisis management in international markets’, by John Knight and Bradley Mitchell.
• ‘Taking gourmet food to Asia: can food advertising travel?’, by Al Marshall.
• ‘Taking Tasmanian Pure and Natural to Asia: lost in translation’, by Al Marshall.
Chapter 16
• ‘Siam Sanitary Ware Co Ltd—parallel import into Vietnam’, by Waewrak Tontrakul and Richard
Fletcher.
• ‘Relationships and networks in international marketing: the case of Gateway Pharmaceuticals’,
by Ian Wilkinson and Richard Fletcher.
• ‘Bringing Australian fashions to the Singapore Turf Club’, by Anthony Perrone.
Chapter 17
• ‘Balstone Technology: winning aid funded projects in Laos’, by Jeff Laurie.
• ‘Opus International Consultants—an internationally competitive company’, by Greg Walton.
Chapter 18
• ‘Communicating with a mass market in a developing country:—the Fred Hollows Foundation in
China’, by Ben Wyner and Richard Fletcher.
XXII ADDITIONAL CASES ON THE WEBSITE
A01_FLET0833_06_LT_FM.indd 22 20/06/13 8:00 AM

RESOURCES FOR STUDENTS
AND INSTRUCTORS
Students
Visit the International Marketing: an Asia-Pacific Perspective sixth edition, companion website
to find valuable learning material
www.pearson.com.au/highered/fletcher
Included materials
• Links to relevant websites
• Information sources for international business
• Additional case studies

Please also note that there is a digital version of this text available to purchase and download
from the Pearson catalogue for this title. Visit www.pearson.com.au and search for this title to
learn more.
Instructors
The sixth edition of International Marketing: an Asia-Pacific perspective is also accompanied by
the following instructor resources.
• PowerPoint slides
• instructors’ manual including teaching suggestions, discussion question solutions, IMEdge

solutions, and case study solutions for cases at the end of each chapter and for the additional
cases as listed in the preface.
• test bank of over 1000 questions
• case videos are available as a resource to accompany your text; please contact your Pearson
Education Consultant to discuss how to access these resources.

ACKNOWLEDGMENTS
No book is solely the work of its authors. Many reviewers at other universities provided valuable
comments and suggestions. We are indebted to the following colleagues:
Dr Rodney Arambewela, Deakin University

Alvin Chan, University of Western Sydney
Dr David L Dean, Lincoln University
Dr Gary Gregory, University of New South Wales
Dr Andrea Insch, Otago University
Dr Uraiporn Kattiyapornpong, University of Wollongong
Dr Shane Mathews, Queensland University of Technology
Dr Sandy Ng, RMIT University
Roman Peretiatko, La Trobe University
We would also like to thank all the reviewers of previous editions of this book.
Special thanks go to academics and international marketing practitioners throughout
Australia and New Zealand who contributed their time and expertise in providing the case studies
that are a feature of this text. They are:
Alistair Bridges, Moulis Legal

Jan Charbonneau, University of Tasmania
Dr Tendai Chikweche, University of Western Sydney
Charmaine Glavas, Queensland University of Technology
Dr Andrea Insch, University of Otago
Dr Uraiporn Kattiyapornpong, Univeristy of Wollongong
Jagadeeshan Kammala, University of Western Sydney
Dr Vinh Lu, Australian National University
Dr Al Marshall, ACU National
Dr Shane Mathews, Queensland University of Technology
Gavin Northey, University of New South Wales
Anke Peter, University of Western Sydney
We also owe a great debt to the people at Pearson Australia who helped develop this book, in
particular to Jo Stanley, Camille Layt, Germaine Silva, Megan Retka-Tidd, and Bryan Potter. It is
their guidance, support and skill at managing the authors that has resulted in the finished product
in which these acknowledgements appear.
In particular, the authors would like to extend a special thanks to Dr Tendai Chikweche of the
University of Western Sydney for the IMEdge challenges that appear at the end of each chapter.

Another random document with
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treaty and end the war, release the volunteers, remove the
excuse for war expenditures, and then give the Filipinos the
independence which might be forced from Spain by a new treaty.
… The title of Spain being extinguished we were at liberty to
deal with the Filipinos according to American principles. The
Bacon resolution, introduced a mouth before hostilities broke
out at Manila, promised independence to the Filipinos on the
same terms that it was promised to the Cubans.
{661}
I supported this resolution and believe that its adoption
prior to the breaking out of hostilities would have prevented
bloodshed, and that its adoption at any subsequent time would
have ended hostilities. … If the Bacon resolution had been
adopted by the Senate and carried out by the President, either
at the time of the ratification of the treaty or at any time
afterwards, it would have taken the question of imperialism
out of politics and left the American people free to deal with
their domestic problems. But the resolution was defeated by
the vote of the Republican Vice-President, and from that time
to this a Republican Congress has refused to take any action
whatever in the matter.
"When hostilities broke out at Manila, Republican speakers and

Republican editors at once sought to lay the blame upon those
who had delayed the ratification of the treaty, and, during
the progress of the war, the same Republicans have accused the
opponents of imperialism of giving encouragement to the
Filipinos. …
"The Filipinos do not need any encouragement from Americans

now living. Our whole history has been an encouragement, not
only to the Filipinos, but to all who are denied a voice in
their own government. If the Republicans are prepared to
censure all who have used language calculated to make the
Filipinos hate foreign domination, let them condemn the speech
of Patrick Henry. When he uttered that passionate appeal,
'Give me liberty or give me death,' he expressed a sentiment
which still echoes in the hearts of men. Let them censure
Jefferson; of all the statesmen of history none have used
words so offensive to those who would hold their fellows in
political bondage. Let them censure Washington, who declared
that the colonists must choose between liberty and slavery.
Or, if the statute of limitations has run against the sins of
Henry and Jefferson and Washington, let them censure Lincoln,
whose Gettysburg speech will be quoted in defense of popular
government when the present advocates of force and conquest
are forgotten. … If it were possible to obliterate every word
written or spoken in defense of the principles set forth in
the Declaration of Independence, a war of conquest would still
leave its legacy of perpetual hatred, for it was God himself
who placed in every human heart the love of liberty. He never
made a race of people so low in the scale of civilization or
intelligence that it would welcome a foreign master.
"Those who would have this nation enter upon a career of

empire must, consider not only the effect of imperialism on
the Filipinos, but they must also calculate its effects upon
our own nation. We cannot repudiate the principle of
self-government in the Philippines without weakening that
principle here. …
"Our opponents, conscious of the weakness of their cause, seek

to confuse imperialism with expansion, and have even dared to
claim Jefferson as a supporter of their policy. Jefferson
spoke so freely and used language with such precision that no
one can be ignorant of his views. On one occasion he declared:
'If there be one principle more deeply rooted than any other
in the mind of every American, it is that we should have
nothing to do with conquest.' And again he said: 'Conquest is
not in our principles; it is inconsistent with our
government.' The forcible annexation of territory to be
governed by arbitrary power differs as much from the
acquisition of territory to be built up into states as a
monarchy differs from a democracy. The Democratic party does
not oppose expansion when expansion enlarges the area of the
Republic and incorporates land which can be settled by
American citizens, or adds to our population people who are
willing to become citizens and are capable of discharging
their duties as such. …
"A colonial policy means that we shall send to the Philippine

Islands a few traders, a few taskmasters and a few
officeholders and an army large enough to support the
authority of a small fraction of the people while they rule
the natives. If we have an imperial policy we must have a
great standing army as its natural and necessary complement.
The spirit which will justify the forcible annexation of the
Philippine Islands will justify the seizure of other islands
and the domination of other people, and with wars of conquest
we can expect a certain, if not rapid, growth of our military
establishment. …
"The Republican platform assumes that the Philippine Islands

will be retained under American sovereignty, and we have a
right to demand of the Republican leaders a discussion of the
future status of the Filipino. Is he to be a citizen or a
subject? Are we to bring into the body politic eight or ten
million Asiatics, so different from us in race and history
that amalgamation is impossible? Are they to share with us in
making the laws and shaping the destiny of this nation? No
Republican of prominence has been bold enough to advocate such
a proposition. The McEnery resolution, adopted by the Senate
immediately after the ratification of the treaty, expressly
negatives this idea. The Democratic platform describes the
situation when it says that the Filipinos cannot be citizens
without endangering our civilization. Who will dispute it? And
what is the alternative? If the Filipino is not to be a
citizen, shall we make him a subject? On that question the
Democratic platform speaks with equal emphasis. It declares
that the Filipino cannot be a subject without endangering our
form of government. A Republic can have no subjects. A subject
is possible only in a government resting upon force; he is
unknown in a government deriving its just powers from the
consent of the governed. "The Republican platform says that
'the largest measure of self-government consistent with their
welfare and our duties shall be secured to them (the
Filipinos) by law.' This is a strange doctrine for a
government which owes its very existence to the men who
offered their lives as a protest against government without
consent and taxation without representation. In what respect
does the position of the Republican party differ from the
position taken by the English government in 1776? Did not the
English government promise a good government to the colonists?
What king ever promised a bad government to his people? Did
not the English government promise that the colonists should
have the largest measure of self-government consistent with
their welfare and English duties? Did not the Spanish
government promise to give to the Cubans the largest measure
of self-government consistent with their welfare and Spanish
duties? The whole difference between a Monarchy and a Republic
may be summed up in one sentence. In a Monarchy the King gives
to the people what he believes to be a good government; in a
Republic the people secure for themselves what they believe to
be a good government. …
{662}
"The Republican platform promises that some measure of

self-government is to be given the Filipinos by law; but even
this pledge is not fulfilled. Nearly sixteen months elapsed
after the ratification of the treaty before the adjournment of
Congress last June, and yet no law was passed dealing with the
Philippine situation. The will of the President has been the
only law in the Philippine Islands wherever the American
authority extends. Why does the Republican party hesitate to
legislate upon the Philippine question? Because a law would
disclose the radical departure from history and precedent
contemplated by those who control the Republican party. The
storm of protest which greeted the Porto Rican bill was an
indication of what may be expected when the American people
are brought face to face with legislation upon this subject.
If the Porto Ricans, who welcomed annexation, are to be denied
the guarantees of our Constitution, what is to be the lot of
the Filipinos, who resisted our authority? If secret
influences could compel a disregard of our plain duty toward
friendly people, living near our shores, what treatment will
those same influences provide for unfriendly people 7,000
miles away? …
"Is the sunlight of full citizenship to be enjoyed by the

people of the United States, and the twilight of
semi-citizenship endured by the people of Porto Rico, while
the thick darkness of perpetual vassalage covers the
Philippines? The Porto Rico tariff law asserts the doctrine
that the operation of the Constitution is confined to the
forty-five States. The Democratic party disputes this doctrine
and denounces it as repugnant to both the letter and spirit of
our organic law. There is no place in our system of government
for the deposit of arbitrary and irresponsible power. That the
leaders of a great party should claim for any President or
Congress the right to treat millions of people as mere
'possessions' and deal with them unrestrained by the
Constitution or the bill of rights, shows how far we have
already departed from the ancient landmarks and indicates what
may be expected if this nation deliberately enters upon a
career of empire.
"The territorial form of government is temporary and

preparatory, and the chief security a citizen of a territory
has is found in the fact that he enjoys the same
constitutional guarantees and is subject to the same general
laws as the citizen of a state. Take away this security and
his rights will be violated and his interests sacrificed at
the demand of those who have political influence. This is the
evil of the colonial system, no matter by what nation it is
applied. …
"Let us consider briefly the reasons which have been given in

support of an imperialistic policy. Some say that it is our
duty to hold the Philippine Islands. But duty is not an
argument; it is a conclusion. To ascertain what our duty is,
in any emergency, we must apply well settled and generally
accepted principles. It is our duty to avoid stealing, no
matter whether the thing to be stolen is of great or little
value. It is our duty to avoid killing a human being, no
matter where the human being lives or to what race or class he
belongs. …
"It is said that we have assumed before the world obligations

which make it necessary for us to permanently maintain a
government in the Philippine Islands. I reply, first, that the
highest obligation of this nation is to be true to itself. No
obligation to any particular nations, or to all the nations
combined, can require the abandonment of our theory of
government, and the substitution of doctrines against which
our whole national life has been a protest. And, second, that
our obligation to the Filipinos, who inhabit the islands, is
greater than any obligation which we can owe to foreigners who
have a temporary residence in the Philippines or desire to
trade there. It is argued by some that the Filipinos are
incapable of self-government and that, therefore, we owe it to
the world to take control of them. Admiral Dewey, in an
official report to the Navy Department, declared the Filipinos
more capable of self-government than the Cubans, and said that
he based his opinion upon a knowledge of both races. …
"Republicans ask, 'Shall we haul down the flag that floats

over our dead in the Philippines?' The same question might
have been asked when the American flag floated over
Chapultepec and waved over the dead who fell there; but the
tourist who visits the City of Mexico finds there a national
cemetery owned by the United States and cared for by an
American citizen. Our flag still floats over our dead, but
when the treaty with Mexico was signed American authority
withdrew to the Rio Grande, and I venture the opinion that
during the last fifty years the people of Mexico have made
more progress under the stimulus of independence and
self-government than they would have made under a carpet-bag
government held in place by bayonets. The United States and
Mexico, friendly republics, are each stronger and happier than
they would have been had the former been cursed and the latter
crushed by an imperialistic policy disguised as 'benevolent
assimilation.'
"'Can we not govern colonies?', we are asked. The question is

not what we can do, but what we ought to do. This nation can
do whatever it desires to do, but it must accept
responsibility for what it does. If the Constitution stands in
the way, the people can amend the Constitution. I repeat, the
nation can do whatever it desires to do, but it cannot avoid
the natural and legitimate results of its own conduct. …
"Some argue that American rule in the Philippine Islands will

result in the better education of the Filipinos. Be not
deceived. If we expect to maintain a colonial policy, we shall
not find it to our advantage to educate the people. The
educated Filipinos are now in revolt against us, and the most
ignorant ones have made the least resistance to our
domination. If we are to govern them without their consent and
give them no voice in determining the taxes which they must
pay, we dare not educate them, lest they learn to read the
Declaration of Independence and Constitution of the United
States and mock us for our inconsistency. The principal
arguments, however, advanced by those who enter upon a defense
of imperialism are:
"First—That we must improve the present opportunity to become

a world power and enter into international politics.
{663}
"Second—That our commercial interests in the Philippine

Islands and in the Orient make it necessary for us to hold the
islands permanently.
"Third—That the spread of the Christian religion will be

facilitated by a colonial policy.
"Fourth—That there is no honorable retreat from the position

which the nation has taken.
"The first argument is addressed to the nation's pride and the

second to the nation's pocket-book. The third is intended for
the church member and the fourth for the partisan. It is
sufficient answer to the first argument to say that for more
than a century this nation has been a world power. For ten
decades it has been the most potent influence in the world.
Not only has it been a world power, but it has done more to
affect the politics of the human race than all the other
nations of the world combined. Because our Declaration of
Independence was promulgated others have been promulgated.
Because the patriots of 1776 fought for liberty, others have
fought for it. Because our Constitution was adopted, other
constitutions have been adopted. The growth of the principle
of self-government, planted on American soil, has been the
overshadowing political fact of the nineteenth century. It has
made this nation conspicuous among the nations and given it a
place in history such as no other nation has ever enjoyed.
Nothing has been able to check the onward march of this idea.
I am not willing that this nation shall cast aside the
omnipotent weapon of truth to seize again the weapons of
physical warfare. I would not exchange the glory of this
Republic for the glory of all the empires that have risen and
fallen since time began.
"The permanent chairman of the last Republican National

Convention presented the pecuniary argument in all its
baldness when he said: 'We make no hypocritical pretense of
being interested in the Philippines solely on account of
others. While we regard the welfare of those people as a
sacred trust, we regard the welfare of the American people
first. We see our duty to ourselves as well as to others. We
believe in trade expansion. By every legitimate means within
the province of government and constitution we mean to
stimulate the expansion of our trade and open new markets.'
This is the commercial argument. It is based upon the theory
that war can be rightly waged for pecuniary advantage, and
that it is profitable to purchase trade by force and violence.
… The Democratic party is in favor of the expansion of trade.
It would extend our trade by every legitimate and peaceful
means; but it is not willing to make merchandise of human
blood. But a war of conquest is as unwise as it is
unrighteous. A harbor and coaling station in the Philippines
would answer every trade and military necessity, and such a
concession could have been secured at any time without
difficulty.
"It is not necessary to own people in order to trade with

them. We carry on trade to-day with every part of the world,
and our commerce has expanded more rapidly than the commerce
of any European empire. We do not own Japan or China, but we
trade with their people. We have not absorbed the republics of
Central and South America, but we trade with them. It has not
been necessary to have any political connection with Canada or
the nations of Europe in order to trade with them. Trade
cannot be permanently profitable unless it is voluntary. …
"Imperialism would be profitable to the army contractors; it

would be profitable to the ship-owners, who would carry live
soldiers to the Philippines and bring dead soldiers back; it
would be profitable to those who would seize upon the
franchises, and it would be profitable to the officials whose
salaries would be fixed here and paid over there; but to the
farmer, to the laboring man and to the vast majority of those
engaged in other occupations it would bring expenditure
without return and risk without reward.
"The pecuniary argument, though more effective with certain

classes, is not likely to be used so often or presented with
so much enthusiasm as the religious argument. If what has been
termed the 'gunpowder gospel' were urged against the Filipinos
only, it would be a sufficient answer to say that a majority
of the Filipinos are now members of one branch of the
Christian church; but the principle involved is one of much
wider application and challenges serious consideration. The
religious argument varies in positiveness, from a passive
belief that Providence delivered the Filipinos into our hands
for their good and our glory, to the exultation of the
minister who said that we ought to 'thrash the natives
(Filipinos) until they understand who we are,' and that 'every
bullet sent, every cannon shot and every flag waved, means
righteousness.' … If true Christianity consists in carrying
out in our daily lives the teachings of Christ, who will say
that we are commanded to civilize with dynamite and proselyte
with the sword? …
"Love, not force, was the weapon of the Nazarene; sacrifice

for others, not the exploitation of them, was His method of
reaching the human heart. A missionary recently told me that
the Stars and Stripes once saved his life because his
assailant recognized our flag as a flag that had no blood upon
it. Let it be known that our missionaries are seeking souls
instead of sovereignty; let it be known that instead of being
the advance guard of conquering armies, they are going forth
to help and uplift, having their loins girt about with truth
and their feet shod with the preparation of the gospel of
peace, wearing the breastplate of righteousness and carrying
the sword of the spirit; let it be known that they are
citizens of a nation which respects the rights of the citizens
of other nations as carefully as it protects the rights of its
own citizens, and the welcome given to our missionaries will
be more cordial than the welcome extended to the missionaries
of any other nation.
"The argument made by some that it was unfortunate for the

nation that it had anything to do with the Philippine Islands,
but that the naval victory at Manila made the permanent
acquisition of those islands necessary, is also unsound. We
won a naval victory at Santiago, but that did not compel us to
hold Cuba. The shedding of American blood in the Philippine
Islands does not make it imperative that we should retain
possession forever. American blood was shed at San Juan Hill
and El Caney, and yet the President has promised the Cubans
independence. The fact that the American flag floats over
Manila does not compel us to exercise perpetual sovereignty
over the islands; the American flag waves over Havana to-day,
but the President has promised to haul it down when the flag
of the Cuban Republic is ready to rise in its place. Better a
thousand times that our flag in the Orient give way to a flag
representing the idea of self-government than that the flag of
this Republic should become the flag of an empire.
{664}
"There is an easy, honest, honorable solution of the

Philippine question. It is set forth in the Democratic
platform, and it is submitted with confidence to the American
people. This plan I unreservedly indorse. If elected, I will
convene congress in extraordinary session as soon as
inaugurated and recommend an immediate declaration of the
nation's purpose, first, to establish a stable form of
government in the Philippine Islands, just as we are now
establishing a stable form of government in Cuba; second, to
give independence to the Cubans; third, to protect the
Filipinos from outside interference while they work out their
destiny, just as we have protected the republics of Central
and South America, and are, by the Monroe doctrine, pledged to
protect Cuba."
UNITED STATES OF AMERICA: A. D. 1900.

The Republican candidate on the same subject.
The answer of the party controlling the government to the

impeachment of its policy of colonial acquisition, and
especially of its conduct in the Philippine Islands, was given
by Mr. McKinley, in a letter of acceptance, addressed,
September 8, to the committee which gave him formal notice of
his renomination by the Republican convention. After
rehearsing at considerable length the events which preceded,
attended and followed the capture of Manila, he continued:
"Would not our adversaries have sent Dewey's fleet to Manila

to capture and destroy the Spanish sea power there, or,
dispatching it there, would they have withdrawn it after the
destruction of the Spanish fleet; and, if the latter, whither
would they have directed it to sail? Where could it have gone?
What port in the Orient was opened to it? Do our adversaries
condemn the expedition under the command of General Merritt to
strengthen Dewey in the distant ocean and assist in our
triumph over Spain, with which nation we were at war? Was it
not our highest duty to strike Spain at every vulnerable
point, that the war might be successfully concluded at the
earliest practicable moment? And was it not our duty to
protect the lives and property of those who came within our
control by the fortunes of war? Could we have come away at any
time between May 1, 1898, and the conclusion of peace without a
stain upon our good name? Could we have come away without
dishonor at any time after the ratification of the peace
treaty by the Senate of the United States? There has been no
time since the destruction of the enemy's fleet when we could
or should have left the Philippine Archipelago. After the
treaty of peace was ratified, no power but Congress could
surrender our sovereignty or alienate a foot of the territory
thus acquired. The Congress has not seen fit to do the one or
the other, and the President had no authority to do either, if
he had been so inclined, which he was not. So long as the
sovereignty remains in us it is the duty of the Executive,
whoever he may be, to uphold that sovereignty, and if it be
attacked to suppress its assailants. Would our political
adversaries do less?
"It has been asserted that there would have been no fighting
in the Philippines if Congress had declared its purpose to
give independence to the Tagal insurgents. The insurgents did
not wait for the action of Congress. They assumed the
offensive; they opened fire on our Army. Those who assert our
responsibility for the beginning of the conflict have
forgotten that, before the treaty was ratified in the Senate,
and while it was being debated in that body and while the
Bacon resolution was under discussion, on February 4, 1899,
the insurgents attacked the American Army, after being
previously advised that the American forces were under orders
not to fire upon them except in defense. The papers found in
the recently captured archives of the insurgents demonstrate
that this attack had been carefully planned for weeks before
it occurred. This unprovoked assault upon our soldiers at a
time when the Senate was deliberating upon the treaty shows
that no action on our part, except surrender and abandonment,
would have prevented the fighting, and leaves no doubt in any
fair mind of where the responsibility rests for the shedding
of American blood.
"With all the exaggerated phrase-making of this electoral

contest, we are in danger of being diverted from the real
contention. We are in agreement with all of those who
supported the war with Spain and also with those who counseled
the ratification of the treaty of peace. Upon these two great
essential steps there can be no issue and out of these came
all of our responsibilities. If others would shirk the
obligations imposed by the war and the treaty, we must decline
to act further with them, and here the issue was made. It is our
purpose to establish in the Philippines a government suitable
to the wants and conditions of the inhabitants and to prepare
them for self-government when they are ready for it and as
rapidly as they are ready for it. That I am aiming to do under
my Constitutional authority, and will continue to do until
Congress shall determine the political status of the
inhabitants of the archipelago.
"Are our opponents against the treaty? If so, they must be

reminded that it could not have been ratified in the Senate
but for their assistance. The Senate which ratified the treaty
and the Congress which added its sanction by a large
approbation comprised Senators and Representatives of the
people of all parties. Would our opponents surrender to the
insurgents, abandon our sovereignty or cede it to them? If
that be not their purpose, then it should be promptly
disclaimed, for only evil can result from the hopes raised by
our opponents in the minds of the Filipinos, that with their
success at the polls in November there will be a withdrawal of
our Army and of American sovereignty over the archipelago; the
complete independence of the Tagalog people recognized and the
powers of government over all the other people of the
archipelago conferred upon the Tagalog leaders. The effect of
a belief in the minds of the insurgents that this will be done
has already prolonged the rebellion and increases the
necessity for the continuance of a large army. It is now
delaying full peace in the archipelago and the establishment
of civil governments and has influenced many of the insurgents
against accepting the liberal terms of amnesty offered by
General MacArthur under my direction. But for these false
hopes, a considerable reduction could have been had in our
military establishment in the Philippines, and the realization
of a stable government would be already at hand.
{665}
"The American people are asked by our opponents to yield the

sovereignty of the United States in the Philippines to a small
fraction of the population, a single tribe out of 80 or more
inhabiting the archipelago, a faction which wantonly attacked
the American troops in Manila while in rightful possession
under the protocol with Spain, awaiting the ratification of
the treaty of peace by the Senate, and which has since been in
active, open rebellion against the United States. We are asked
to transfer our sovereignty to a small minority in the
islands, without consulting the majority, and to abandon the
largest portion of the population, which has been loyal to us,
to the cruelties of the guerrilla insurgent bands. More, than
this, we are asked to protect this minority in establishing a
government, and to this end repress all opposition of the
majority. We are required to set up a stable government in the
interest of those who have assailed our sovereignty and fired
upon our soldiers, and then maintain it at any cost or
sacrifice against its enemies within and against those having
ambitious designs from without. This would require an army and
navy far larger than is now maintained in the Philippines and
still more in excess of what will be necessary with the full
recognition of our sovereignty. A military support of
authority not our own, as thus proposed, is the very essence
of militarism, which our opponents in their platform oppose,
but which by their policy would of necessity be established in
its most offensive form.
"The American people will not make the murderers of our

soldiers the agents of the Republic to convey the blessings of
liberty and order to the Philippines. They will not make them
the builders of the new commonwealth. Such a course would be a
betrayal of our sacred obligations to the peaceful Filipinos
and would place at the mercy of dangerous adventurers the
lives and property of the natives and foreigners. It would
make possible and easy the commission of such atrocities as
were secretly planned to be executed on the 22d of February,
1899, in the city of Manila, when only the vigilance of our
Army prevented the attempt to assassinate our soldiers and all
foreigners and pillage and destroy the city and its
surroundings. In short, the proposition of those opposed to us
is to continue all the obligations in the Philippines which
now rest upon the Government, only changing the relation from
principal, which now exists, to that of surety. Our
responsibility is to remain, but our power is to be
diminished. Our obligation is to be no less, but our title is
to be surrendered to another power, which is without
experience or training or the ability to maintain a stable
government at home and absolutely helpless to perform its
international obligations with the rest of the world. To this
we are opposed. We should not yield our title while our
obligations last. In the language of our platform, 'Our
authority should not be less than our responsibility,' and our
present responsibility is to establish our authority in every
part of the islands.
"No government can so certainly preserve the peace, restore

public order, establish law, justice and stable conditions as
ours. Neither Congress nor the Executive can establish a
stable government in these islands except under our right of
sovereignty, our authority and our flag. And this we are
doing. We could not do it as a protectorate power so
completely or so successfully as we are doing it now. As the
sovereign power, we can initiate action and shape means to
ends and guide the Filipinos to self-development and
self-government. As a protectorate power we could not initiate
action, but would be compelled to follow and uphold a people
with no capacity yet to go alone. In the one case we can
protect both ourselves and the Filipinos from being involved
in dangerous complications; in the other we could not protect
even the Filipinos until after their trouble had come. Beside,
if we cannot establish any government of our own without the
consent of the governed, as our opponents contend, then we
could not establish a stable government for them or make ours
a protectorate without the like consent, and neither the
majority of the people or a minority of the people have
invited us to assume it. We could not maintain a protectorate
even with the consent of the governed without giving
provocation for conflicts and possibly costly wars. Our rights
in the Philippines are now free from outside interference and
will continue so in our present relation. They would not be
thus free in any other relation. We will not give up our own
to guarantee another sovereignty.
"Our title is good. Our peace commissioners believed they were

receiving a good title when they concluded the treaty. The
Executive believed it was a good title when he submitted it to
the Senate of the United States for its ratification. The Senate
believed it was a good title when they gave it their
Constitutional assent, and the Congress seems not to have
doubted its completeness when they appropriated $20,000,000
provided by the treaty. If any who favored its ratification
believed it gave us a bad title, they were not sincere. Our
title is practically identical with that under which we hold
our territory acquired since the beginning of the government,
and under which we have exercised full sovereignty and
established government for the inhabitants. It is worthy of
note that no one outside of the United States disputes the
fulness and integrity of the cession. What then is the real
issue on this subject? Whether it is paramount to any other or
not, it is whether we shall be responsible for the government
of the Philippines with the sovereignty and authority which
enable us to guide them to regulated liberty, law, safety and
progress, or whether we shall be responsible for the forcible
and arbitrary government of a minority without sovereignty and
authority on our part and with only the embarrassment of a
protectorate which draws us into their troubles without the
power of preventing them. There were those who two years ago
were rushing us on to war with Spain who are unwilling now to
accept its clear consequence, as there are those among us who
advocated the ratification of the treaty of pence, but now
protest against its obligations. Nations which go to war must
be prepared to accept its resultant obligations, and when they
make treaties must keep them.
{666}
"Those who profess to distrust the liberal and honorable

purposes of the Administration in its treatment of the
Philippines are not justified. Imperialism has no place in its
creed or conduct. Freedom is a rock upon which the Republican
party was builded and now rests. Liberty is the great
Republican doctrine for which the people went to war and for
which 1,000,000 lives were offered and billions of dollars
expended to make it a lawful legacy of all without the consent
of master or slave. There is a strain of ill-conceived
hypocrisy in the anxiety to extend the Constitutional
guarantees to the people of the Philippines while their
nullification is openly advocated at home. Our opponents may
distrust themselves, but they have no right to discredit the
good faith and patriotism of the majority of the people, who
are opposing them; they may fear the worst form of imperialism
with the helpless Filipinos in their hands, but if they do, it
is because they have parted with the spirit and faith of the
fathers and have lost the virility of the founders of the
party which they profess to represent.
"The Republican party does not have to assert its devotion to

the Declaration of Independence. That immortal instrument of
the fathers remained unexecuted until the people under the
lead of the Republican party in the awful clash of battle
turned its promises into fulfillment. It wrote into the
Constitution the amendments guaranteeing political equality to
American citizenship and it has never broken them or counseled
others in breaking them. It will not be guided in its conduct by
one set of principles at home and another set in the new
territory belonging to the United States. If our opponents
would only practice as well as preach the doctrines of Abraham
Lincoln there would be no fear for the safety of our
institutions at home or their rightful influence in any
territory over which our flag floats.
"Empire has been expelled from Porto Rico and the Philippines
by American freemen. The flag of the Republic now floats over
these islands as an emblem of rightful sovereignty. Will the
Republic stay and dispense to their inhabitants the blessings
of liberty, education and free institutions, or steal away,
leaving them to anarchy or imperialism? The American question
is between duty and desertion—the American verdict will be for
duty and against desertion, for the Republic against both
anarchy and imperialism."
UNITED STATES OF AMERICA: A. D. 1900 (June).

Revenues and expenditures of the government for the
fiscal year ended June 30, 1900.
The revenues of the Government from all sources (by

warrants) for the fiscal year ended June 30. 1900, were:
From internal revenue.

$295,327,926.76
From customs.
233,164,871.16
From profits on coinage, bullion deposits, etc.
9,992,374.09
From District of Columbia.
4,008,722.77
From fees-consular, letters patents, and land.
3,291.716.68
From sales of public lands.
2,836.882.98
From tax on national banks.
1.998.554.00
From navy pension, navy hospital, clothing,
and deposit funds.
1,621.558.52
From sales of Indian lands.
1,384,663.49
From payment of interest by Pacific railways.
1,173,466.43
From miscellaneous.
997,375.68
From sales of Government property.
779,522.78
From customs fees, fines, penalties, etc.
675,706.95
From immigrant fund.
537,404.81
From deposits for surveying public lands.
273,247.19
From sales of ordnance material.
257,265.56
From Soldiers' Home, permanent fund.
247,926.62
From tax on seal skins, and rent of seal islands.
225,676.47
From license fees, Territory of Alaska.
157,234.94
From trust funds, Department of State.
152,794.56
From depredations on public lands.
76,307.58
From Spanish indemnity.
57,000.00
From sales of lands and buildings
3,842,737.68
From part payment Central Pacific
Railroad indebtedness.

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International Marketing: An Asia-Pacific

Perspective 6th by Richard Fletcher

The new full-colour sixth edition of International Marketing is written from

International Marketing presents a wide range of contemporary issues

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DETAILED CONTENTS VII

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Opening vignette: The Long Tail 155

VIII DETAILED CONTENTS

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Market leader 324

10 Internationalisation, 11.3 INTERNATIONAL HIGHLIGHT: Globalisation and

Opening vignette: The new relationship Global or multinational? 377

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Globalisation from a macro perspective 384 Challenges to international marketing

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14 International pricing for

XII DETAILED CONTENTS

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DETAILED CONTENTS XIII

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XIV DETAILED CONTENTS

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Changes in the 6th Edition

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Structure of the book

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Alternative ways of using this textbook

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ADDITIONAL CASES ON THE WEBSITE XXI

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XXII ADDITIONAL CASES ON THE WEBSITE

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• Links to relevant websites

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• instructors’ manual including teaching suggestions, discussion question solutions, IMEdge

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Dr Rodney Arambewela, Deakin University

Alistair Bridges, Moulis Legal

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"When hostilities broke out at Manila, Republican speakers and

"The Filipinos do not need any encouragement from Americans

"Those who would have this nation enter upon a career of

"Our opponents, conscious of the weakness of their cause, seek

"A colonial policy means that we shall send to the Philippine

"The Republican platform assumes that the Philippine Islands

"The Republican platform promises that some measure of

"Is the sunlight of full citizenship to be enjoyed by the

"The territorial form of government is temporary and

"Let us consider briefly the reasons which have been given in

"It is said that we have assumed before the world obligations

"Republicans ask, 'Shall we haul down the flag that floats

"'Can we not govern colonies?', we are asked. The question is

"Some argue that American rule in the Philippine Islands will

"First—That we must improve the present opportunity to become

"Second—That our commercial interests in the Philippine