Review Article
International Marketing
Manendra Mohan
The concept and practice of internationa I marketing needs
to undergo a radical reorientation if it has to play its
proper role in the eighties and beyond. An obvious chal-
lenge at the present juncture comes from the resurgence
of protectionism in industrial nations. The frontiers of
international marketing should be. widened to harness. the
potential of emergent semi-industrial nations.
Books Reviewed •
Cateorf.i, Philip R.; and Hess, John M., International
Marketing (Homewood: Richard D.lrwin, 1975)..
Fayerweather, John, International Marketing (New Delhi:
Prentice Hall of India, 1976).
Majaro, Simon, International Marketing: A Strategic Ap-
proach to World Markets (London: George Allen and
Unwin, 1977).
Miracle, Gordon E.; and Albaum. Gerald S., International
Marketing Management (Homewood: Richard D. Irwin,
1970).
Terpstra, Vern, International Marketing (Illinois: Dryden
Press, 1972).
Manendra Mohan is Professor of Marketing and Economics
at the Indian Institute of Management, Ahmedabad. His
major research interests are international business and
Jts relevance to the new international economic order,
and marketing strategy and planning.
Vikalpa, Vol. 3, No. 2, April 1978
-i
(,
The list of the titles covered in this review article
gives an impression of a time series analysis of
randomly selected publications in international
marketing. For a country like India, international
marketing has been of somewhat academic
interest only because of a high degree of re-
gulation of its economy. The situation has now
changed with a small, but sure, beginning to-
wards liberalization of India's trade policies.
This provides an opportune moment to raise
issues relating to international marketing and
its implications' from the point of view of tea-
chers and researchers, and policymakers.
The concept and practice of international mar-
keting has largely developed during the post-war
period. Characteristic examples of pioneers in
the modern context are the Swiss watchmakers
as an industry, and General Motors and Nestle
as companies. One could also mention Singer
Sewing . Machine Company which grew more
like an institution in its international operations
that commenced over a century ago, and
National Cash Register which has been in over-
seas business for over 75 years.
Terpstra has drawn a fine distinction between
multinational marketing and international mar-
keting. We mey do well to adopt Cateora and
Hess's definition of international marketing as
"the performance of business activities that direct
the flow of a company's goods and services
to the consumers or users in more than one
nation." There seems to be a fair measure of
agreement on the basic issue that interna-
139
tionalization of a business and the marketing
concept are practically two sides of the same
coin. The need for internationalizing marketing
operations may come either owing to natural
growth of market as in the case of General
Motors or IBM, or from the need to expand into
overseas markets as typified by companies
based in geographically smaller but industrially
advanced countries like Switzerland and the
Netherlands. A special case. yet so very obvi-
ous, may be a situation where domestic expan~
sion, as in the United States, may start
levelling off, making it hard for companies to
sustain their customary rate of growth. Many
such companies have turned to overseas mar-
kets where the return on investment is higher
than on their domestic operations. The basic
skills required in any of these situations consist
of organizing international programmes and
adapting to overseas environment.
One of the first questions which a marketer
has to face is that of market segmentation and
product policy, apart from the legal and in-
stitutiona I framework of overseas markets. A
variety of approaches which take into account
diverse factors has been suggested for this
purpose. In many of these, Dichter's (1962)
thought-provoking approach finds a place.
The approach to market analysis using cul-
tural anthropological indicators developed by
Cooke (1972) is well worth consideration.
However, an extract under the caption "Mar-
keting in India" from Printer's Ink of 1964
reproduced by Cateora and Hess seems some-
what out of place in that context. This extract
takes a sweeping look at business customs
(some of them since outmoded), the qu~stion
of visuals, media, symbols, and languages.
Similar comments apply to an even older study
of Ralph and Boyd (1960} quoted by John
Fayerweather. This refers to the lack of market
orientation in a typical village economy. This
may be still true of some tribal villages but
things have changed a great deal, especially
140
in agricultural markets.
Amongst the new approaches to market seg-
mentation is a matrix relating cultural, environ-
mental, and other variables to marketing func-
tions (Terpstra, p. 111 ; Majaro, p. 38). Majaro
looks at the question of marketing segmentation
from a variety of angles bringing together the
obvious aspects of international marketing with
some well known segmentation variables such
as consumers· motives, usage rate, and adop-
tion process which are often neglected, al-
though these assume a special significance in
this context.
The question of undertaking marketing resear-
ch, especially before deciding upon the entry
into a foreign market, is dealt with in the books
under review in varying details. The anticipated
problems of data sources, collection of informa-
tion from primary sources when sample surveys
and field work are involved, variety of langua-
ges, and validity of data come up especially
when the less developed countries are to be
researched. A referen_ce is made in this con-
nection to publications of the United Nations
and its associated agencies as international
data sources. Miracle and Albaum have gone
a step further in a series of three chapters
under the caption "International Marketing Com-
munication" to bring to the reader's notice the
contribution of large advertising and mar-
keting research companies. Some updating is
required in some cases such as their mention
of London Press Exchange Limited which was,
until early the seventies, having the largest mar-
keting and advertising research setup in West-
ern Europe. It has since been taken over by
Leo Burnett. Attention may also be drawn to
Simon Majaro's operational approach for re-
searching international markets, particularly the
diagrams on pages 64 and 68-69, and the
checl<list on page 76.
The formulation of international product policy
is an area offering considerable scope for
research and innovation. The lack of suitable
Vikalpa
reference material is a point which is emphati-
cally made by Miracle and Albaum who draw
on Wortzel (1968) and Keegan (1969) to bring
forth strategic considerations in making multi-
national product decisions and developing alter-
natives for- product policy. Majaro's framework
for developing product policies and product
strategies for world markets appears to be quite
functional and useful.
Aspects of pricing and distribution in the
international setting may be highly correlated
according to Miracle and Albaum who discuss
at length the factors going into physical distri-
bution decisions, and provide a checklist. On
the subject of distribution. a paper by Hauk
(1968) on commodity flows in a developing
economy (reproduced by Cateora and Hess)
brings into focus the relevance of distribution
logistics to economic development.
When we consider the question of pricing,
the thorny question of transfer pricing in the
context of operations of the multinationals comes
to the surface, apart from a variety of regula-
tions which may be in effect in different
markets. The issue has been approached ob-
jectively from various angles by Terpstra. The
application of the basic marketing concept to
pricing elaborated by Majaro provides a prac-
tical framework for decision-making in this area.
The question of overall marketing planning
and· organization, after bringing in other mar-
keting inputs of communication through adver-
tising and sales promotion, and direct selling
is looked at from different angles in the
books under review. While the subject of
advertising and, to an extent, sales promotion
and packaging is dealt at length in all these
books in proportion to their overall coverage
of the subject. sales management generally
does not get much beyond that implied by
the organization and control system. It is in
the approach to marketing objectives and
strategy that the basic points of distinction arise
among the books reviewed.
Vol. 3, No. 2, April 1978
I '.
Miracle and Albaum have treated the question
of international marketing organization largely
in the framework of organization systems. This
somewhat traditional approach is in a way
characteristic of their book which provides
a comprehensive coverage of all · facets of
international marketing. The three chapters on
international marketing communication. noted
earlier, are particularly valuable. In the second
of these, practical points of sales promotion
are brought out. The third chapter provides a
useful checklist for media buyers. (On the
basic question of effective intercultural commu-
nication, Almaney's (1974) comments on the
use of languages as well as non-verbal codes
of expression appear most relevant.) The boo I<
is written in a lucid style and can serve as a
useful introductory text. The reviewer, however.
had some difficulty in appreciating the addition
of the word "management" in the title, parti-
cularly when compared to other titles reviewed
here.
Terpstra has brought into his book his ex-
perience of teaching and of his stay in Europe
and Africa for ten years. Attention may be
drawn to a variety of examples, for instance
on generation of new product ideas in diverse
settings (pp. 247-50). In the same chapter,
dealing with product line and product plann-
ing, he raises a very important issue of the
role of research and development in formula-
ting international product policy. It also goes
to his credit to devote more attention to
the aspect of personal selling than in other
books on the subject. The decision criteria
for entry into foreign markets, somehow classi-
fied under "Distribution," are most useful for
selecting a course among various alternatives
open to the marketer by using the simple deci-
sion model given there. Part Ill of the book on
coordination of international market operations
does well to raise issues of long-term and short-
term planning. However, the practical approach
exhibited in the preceding pages dealing with
141
 forejgn: market pricing is not so evident here.
The list of. feadings at the end of each chapter
adds to the value oLthe book.
, Cateora and Hess in the third edition of
their popular text oring into focus the ques-
tion of marketing management problems and
techniques in the setting of different environ-
ments. They have made a useful contribution
to the literature by ,emphasizing matters relating
to manpower, management, and raising the
issue of financing international marketing opera-
tions. A very useful chapter is the one dealing
wi.th marketing industrial products and services.
Broadening of the base of environmental
varieties is achieved through short abstracts
alongwith the text and some very relevant
readings given at the end of each chapter.
The coverage is comprehensive and a separate
chapter is devoted to developing markets which
brings together various aspects of marketing Vicks
in India and rural marketing in Latin America
as readings, and marketing of baby foods in
Japan as a case. The book contains a number
of cases organized according to parts into
which the book is divided. The book is
written as an ongoing text and questions .are
given at the end of chapter. This is certainly
desirable. However, it is difficult to swallow
very book specific questions, like the following
one:
Define:
Cultural imperative
Cultural adiaphora
Cultural exclusive
Eclectic borrowing
Silent language.
· The paperback reprint of John Fayerweather's
International Marketing places a standard text
on the subject well within the reach of an
average Indian student. An obvious drawback is
that the .1970 edition has been brought out as
a reprint in 1976. This book starts with typic a1
US orientation, also inherent in the other three
titles published in the United States. There is
142
a tendency on the part of the author to draw
from published statistical data which are useful
but need updatiflg. The marketing focus is
somewhat lacking and the vital issue of pricing,
for instance, does not find a place in the book.
The I ndi.an reprintmay be considered, in a way,
good value for what it contains in its 120
pages. However,· owing to limited coverage and
more because of its narrow academic orientation,
aggravated by out-of-date data (e.g., ownership
of selected products and employment of servants
in Mexico City in 1953), the book fails to meet
the major objective of its being reprinted in India.
Majaro's book presents a refreshing contrast
to other books reviewed here. It may appropria-
tely be. described a manual for international
marketers and practising and intending managers
in the area by an experienced and articulate
manager. At the same time, the subject offers
considerable scope for doing one's own thinking
rather than merely following the author's guide-
lines. The conceptual framework of the organi-
zation of the international firm, under the categories
of fT1acropyramid, umbrella, and interglomerate,
is innovative With the help of this framework.
it is possible to cover the entire arena of inter-
national marketing from a firm's point of view
without getting bogged down with sensitive
issues currently being raised about the operations
of the multinationals. The book's.usefulness for
teaching purposes can be enhanced by adding
some more cases.
The origins of international marketing may be
traced to the theory of comparative or relative
advantage, a subject to which Miracle and Albaum,
and Cateora and Hess devote adequate space.
It is easy to appreciate their points of view against
the backdrop of historical growth perspective of
the US economy. Several economic and non-eco-
nomic factors have tended to distort the func-
tioning of many of the basic theories of inter-
national trade. The emergence of floating exchange
rates, with varying degrees of management, is
considered irksome owing to the new dimension ·
. Vikalpa
these have introduced in international business.
The lack of understanding of the basic concepts
of international trade at the. operational level
perhaps goes into the making of such a view.
Presently, the irony of the situation is that it
is not only the underprivileged countries which
have taken cover behind a plethora of regulations
and restrictions but the wealthy nations of the
world are also finding it difficult to subscribe
to the principles of free trade. Even if there is
a faint smell of protectionism, it is a matter of
concern, more so when three decades have
elapsed since the initiation of GATT. In its
annual report for 1977, GATT has commented
upon world-wide restrictions in trade. It adds
that this recent resurgence in protectionist
measures has reached a level not experienced
for more than a generation. Perhaps the role
of international marketing in helping to reduce
the obstacles to a less inhibited flow of goods
and services has been underestimated so far.
It is encouraging to note that some of the
less privileged countries have reached a stage
when they can start bringing down trade barriers,
albeit to a small extent This is an aspect which
can be explored in the interest of the entire
community of nations. The meeting ground for
the West-East trade or for that matter the North-
South dialogue may possibly be found in some
of these countries whose growth and perspec-
tives have been influenced and shaped by the
standard bearers of divergent economic and
marketing philosophies. The largely dichotomous
classification of donor and receiving countries
References
Almaney, Adman., "International Communication and
the MNC Executive," Columbia Journal of World Busi-
ness, Winter 1974.
Cooke, Peter, "Market Analysis Utilizing the Cultural
Anthropological Indicators." European Journal of Marketing,
Vol. 6, No. 1, 1972.
Vol. 3, No. 2, April 1978
as being equivalent to industrial and non-in-
dustrial nations has tended to distort the orient-
ation of international marketing, which has, of
necessity, been largely concerned with marketing
manufactured goods (see Van Dam, 1977, for
an exposition of the Third World countries'
case for marketing upgraded and processed
goods).
It may not be out of place to suggest two
areas where research could be undertaken. Firstly,
it should be rewarding to look at international
marketing from the point of view of semi-in-
dustrial nations. This group may be broadly de-
fined as consisting of those countries which have
built an industrial base, although they may still
be low in the international ranking by indicators
such as GNP per head, and are not primarily
exporters of commodities. The World Bank, in
a recent report, foresees growth in exports of
manufactured goods by the less developed
countries which may account for 55 per cent of
their exports in 1985 compared to about a third
at present. Secondly, the origins of international
marketing may be fruitfully extended to give
due emphasis to services, and not just goods,
so that some very pertinent issues such as human
resources, and skills and transfer of technology 1
may be viewed in an objective framework
as has been the perspective of the books re-
viewed here.
lit would be more fruitful to consider issues of this
nature in the context of basic international marketing
concepts, rather than in relative isolation from marketing
aspects, at forums like the forthcoming UN Conference
on Technical Cooperation among Developing Countries.
Dichter, Ernest, "The World Customer," Harvard Busin~ss
Review. July-August 1962.
Hauk, James G.. "Commodity Flows in a Developing
Economy,'' Economic and Business Bulletin. Spring 1968.
Keegan, Warren J., "Multinational Product Planning :
Strategic Alternatives.'' Journal of Marketing, Vol. 33.
143
 January 1969.
Ralph, Westfall; and Boyd, Harper W, Jr.. "Marketing
in India;· Journal of Marketing, October 1960.
Van Dam, Andre, •'Marketing in the New International
Economic Order : New Challenges for Marketing Mana-
•.·.·
744
gement.'' Journal of Marketing. January 1977.
Wortzel, Lawrence, "Product Policy and the United States
Corporation : Some Emerging Generalizations" in King,
Robert L. (ed.), Marketing and the New Science of Plan-
ning (New York: American Marketing Association, 1968).
Vikalpa