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[im] tổng hợp - Summary International Marketing

International Marketing (Đại học Kinh tế Quốc dân)

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Chương 6: The political and economic environment

Political:
1. BRIC: Giải thích + Có ảnh hưởng thế nào
- BRIC stands for Brazil, Russia, India, China (and South Africa). The economic growth and emerging
middle class in these countries will probably have enormous influence on the rest of the world. Two
countries are manufacturing-based economies and big importers (China and India), and two are huge
exporters of natural resources (Brazil and Russia).
2. BOP: Giải thích + Thị trường này bán những sản phẩm gì
- The poor people’s market has been seen as a gold mine for reaping business profits and it has been
called the ‘bottom of the pyramid’ (BOP) market. According to Prahalad, focus on the BOP market should
be a part of core business and not just corporate social responsibility (CSR) initiatives: catering to the BOP
market (by satisfying unmet social needs and new consumer preferences), business organizations can create
market opportunities of substantial value, other parties have to get involved - mainly local and central
government, financial institutions and non-governmental organizations (NGOs)
- Sản phẩm ví dụ: Microfinance is a banking service that is provided to low-income individuals who
have no other means of gaining financial services. Có thể áp dụng trickle-down/ waterfall approach.
- Giải thích 1 số thuật ngữ:
+ Trickle-down/ waterfall approach/effect: Đầu tư kinh doanh sản phẩm tại 1 market phát triển trước
(thường là developed countries) thị trường suy thoái => bê mặt hàng đó kinh doanh xuống cấp dưới -
developing countries => các nước kém phát triển cuối cùng (under-develope). Ví dụ: Xà phòng Cleopatra
(Francê).
+ Trickle-up: Kinh doanh loại sp mang tính bình dân, chỉ phù hợp với 1 nhóm người trong xã hội =>
nâng cấp làm loại sp đó phổ biến cho các tầng lớp khác. Ví dụ: fashion - quần jeans.
+ Showering approach: cùng 1 lúc đầu tư kinh doanh tại nhiều thị trường khác nhau (k phân biệt nước
phát triển hay kém phát triển) - high risk nhưng high reward. Ví dụ: fast food.
3. European Monetary Union: Liên minh tiền tệ
- The Maastricht Treaty (hiệp ước M) resulted in the European Economic and Monetary Union (EMU),
which also included the new common European currency, the euro (introduced on 1 January 1999). The euro
involves the extension of the ‘law of one price’ across a market comprising more than 320 million
consumers, representing one-fifth of the world economy, which should promote increased trade and
stimulate greater competition. Consequently, the development of this ‘new’ Europe has an importance
beyond the relatively small group of nations currently involved in its creation. Today, the euro is one of the
world’s most powerful currencies, used by more than 320 million Europeans in 23 countries.
4. Yếu tố ảnh hưởng đến lý do đi ra nước ngoài kinh doanh
- Promotional activities (sponsored by governmental organizations)
- Financial activities
- Information services: các cty dịch vụ cung cấp thông tin cho những cty cần ra nước ngoài.
- Export-facilitating activities

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- Promotion by private organizations (NGOs)

- State trading
5. Trong yếu tố chính trị, khi công ty sang host country gặp những rủi ro nào
- Three major types of political risk can be encountered:
+ ownership risk, which exposes property and life;
+ operating risk, which refers to interference with the ongoing operations of a firm;
+ transfer risk, which is mainly encountered when companies want to transfer capital between
countries.
Ví dụ 1 số actions và effects: Import/ Labour restrictions, Local-content laws, Exchange/ Market/ Price/ Tax
controls, Change of government party, Nationalization, Domestication.
6. Host country sử dụng hình thức tariff, non-tariff để ngăn cản quốc gia thâm nhập
- Tariffs are direct taxes and charges imposed on imports. They are generally simple, straightforward
and easy for the country to administer. While they are a barrier to trade, they are a visible and known
quantity and so can be accounted for by companies when developing their marketing strategies. (Thường
được dùng bởi những nước host nghèo hơn nước home) Common forms:
+ Specific: thuế phí phụ thuộc loại sản phẩm cụ thể.
+ Ad valorem: đánh thuế % của giá xuất khẩu.
+ Discriminatory: đánh thuế tùy quốc gia cụ thể (trừ các thành viên WTO thì phải công bằng với nhau).
- Non-tariff (thuế quan phi tiền tệ): Non-monetary barriers to foreign products, such as biases against a
foreign company’s bids, or product standards that go against a foreign company’s product features.
+ Quotas: A restriction on the amount (measured in units or weight) of a good that can enter or leave a
country during a certain period of time.
+ Embargoes: A complete ban on trade (imports and exports) in one or more products with a particular
country.
+ Administrative delays: Regulatory controls or bureaucratic rules designed to impair the rapid flow of
imports into a country.
+ Local-content requirements: Laws stipulating that a specified amount of a good or service be supplied
by producers in the domestic market.
Economic:
1. Exchange rates: Giải thích
- Exchange rates affect demand for a company’s products in the global marketplace. Ví dụ: rate giảm
=> giá export giảm, giá import tăng (more appealing on world market); công ty nước ngoài rate cao trả
lượng cho công nhân nước có rate thấp => profit.
+ Law of one price: The law of one price stipulates that an identical product must have an identical
price in all countries when price is expressed in a COMMON-DENOMINATOR currency. For this principle
to apply, products must be identical in quality and content in all countries, and must be entirely produced
within each particular country.
+ BigMacCurrencies (purchasing power parity - sức mua tương đương): The underlying assumption is
that the price of a Big Mac in any world currency should, after being converted to dollars, equal the price of
a Big Mac in the US.

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2. GDP:
- Khái niệm: the value of all goods and services produced by a country during a one-year period. This
figure includes income generated both by domestic production and by the country’s international activities.
3. GNP:
- Khái niệm: the value of all goods and services produced by the domestic economy over a one-year
period.
Thuật ngữ viết tắt:
- LDCs: less developed countries - trên các nước đang phát triển nhưng dưới các nước đã phát triển.
VD: Columbia, Cuba
- NICs: Newly industrialized countries - countries with an emerging industrial base, one that is capable
of exporting. Examples of NICs are the ‘tigers’ of South-east Asia: Hong Kong, Singapore, South Korea and
Taiwan. Brazil and Mexico are examples of NICs in South America.

Fig 6.3: Regional economic integration (Liên kết kinh tế khu vực) - Economic integration has been one of
the main economic developments affecting world markets since World War II. Countries have wanted to
engage in economic cooperation to use their respective resources more effectively and to provide large
markets for member country producers.
Hình mô tả các dạng liên kết sau (chữ đậm là tên dạng, chữ nhạt là mô tả):

Chương 7: The sociocultural environment

Layers of culture: phân tích thì phải so sánh các layers (Nếu chỉ nêu: nêu + Ví dụ)
The behaviour of the individual person is influenced by different layers of culture. The national culture
determines the values that influence business/industry culture, which then determine the culture of the
individual company.

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● National culture: This gives the overall framework of cultural concepts and legislation for business
activities.
● Business/industry culture: Every business is conducted within a certain competitive framework and
within a specific industry (or service sector). This level has its own cultural roots and history, and the players
within this level know the rules of the game. Industry culture is very much related to a branch of industry,
and this culture of business behaviour and ethics is similar across borders. For example, shipping, the oil
business, international trading and electronics have similar characteristics across national borders.
● Company culture (organizational culture): [the culture that makes it distinctive from competitors
and non-competitors. Organizational cultures are often referred to as “corporate cultures” and reflect the
beliefs, values, and assumptions of an organization. For example, the culture of one school in a school
district can be different than the culture of another school located in the same district simply because of what
the people in one school culture adhere and react to.]
● Individual behaviour: The individual is affected by the other cultural levels. In the interaction
environment, the individual becomes the core person who ‘interacts’ with the other actors in industrial
marketing settings. The individual is seen as important because there are individual differences in perceiving
the world. Culture is learned; it is not innate. The learning process creates individuals due to different
environments in learning and different individual characteristics.
Example: Electrolux is adapting its vacuum cleaner for the Japanese market.
● National culture: Japanese customers are also very careful about cleanliness in their homes and thus
clean them regularly.
● Business/industry culture: Vacuum cleaners are suitable for ‘globalization’, as the shipping costs per
unit are relatively low. Japanese homes are relatively small and vacuum cleaners need to be quiet in order
not to disturb family members and neighbors.
● Company culture: Thay đổi tính năng của sản phẩm và cách phân phối khác nhau giữa các nước để
phù hợp với nhiều thị trường quốc tế khác nhau.
● Individual behaviour:
- Social culture:
High/low context: for example, Asian (high-context) and Western (low-context) styles are so different, and
why Asians prefer indirect verbal communication and symbolism over the direct assertive communication
approaches used by Westerners

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+ High context: Use more elements surrounding the message. The cultural context in which the
message is communicated has a lot to say. High degree of complexity in communication.
+ Low context: Rely only on spoken and written language. Low degree of complexity in
communication.

+ Elements of culture: Chỉ ra 3 trong các elements về vhoa: Language, Technology and material
culture, Education.
*Language: Language gains complexity when a country has more than one officially recognized language.
The choice between verbal and non-verbal communication needs to be balanced based on whether the
national culture is a high-context culture or a low-context culture. In countries like Australia what is said is
what is meant and spoken language carries the emphasis of communication – low context culture. Whereas
in countries like Japan and some Arabic nations what is said may not be what is meant and the
communication tends not to carry a direct message in it – high context culture. So the researchers need to
make sure the marketing reaches out to the customers in the exact way it was meant to be communicated.
*Manners and customs (phong tục tập quán): Changes occurring in manners and customs must be
carefully monitored, especially in cases that seem to indicate a narrowing of cultural differences between
peoples. Phenomena such as McDonald’s and Coca-Cola have met with success around the world.
Understanding manners and customs is especially important in negotiations because interpretations based on

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one’s own frame of reference may lead to a totally incorrect conclusion. To negotiate effectively abroad, one
needs to read all types of communication correctly. In many cultures, certain basic customs must be
observed by the foreign businessperson. One of them concerns the use of the right and left hands. In
so-called right-hand societies, the left hand is the ‘toilet hand’ and using it to eat, for example, is considered
impolite.
*Education: The level of education in a country has a direct impact on the sophistication of the target
customer. A simple example will be the degree of literacy. In developed countries, main forms of
communication are advertising and printing methods. In developing countries, they rely on training and
verbally based educational programs to get their message across.
- Religion: ít trọng tâm: Christianity is the most widely practiced. Islam has been a recent rise in
Islamic fundamentalism in Iran, Pakistan, Algeria, and elsewhere. Hinduism is most common in India.
Beliefs emphasize the spiritual progress of each person’s soul rather than hard work and wealth creation.
Buddhism has adherents in Central and Southeast Asia, China, Korea, and Japan. Like Hinduism, it stresses
spiritual achievement rather than wealth, although the continuing development of these regions shows that it
does not necessarily impede economic activity. Confucianism has an emphasis on loyalty and obligation
between superiors and subordinates has influenced the development of family companies in these regions.
- Hofstede: (the ‘4 + 1’ dimensions model) không trọng tâm: According to Hofstede, the way people
in different countries perceive and interpret their world varies along four dimensions: power distance,
uncertainty avoidance, individualism, and masculinity.

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Chương 8: The IMS process

Phân biệt IMS process trong 2 loại công ty SMEs (small and medium-sized enterprises) và LSE (large-scale
enterprised):
SMEs:
- IMS is simply a reaction to a stimulus provided by a change agent, in the form of an unsolicited order.
- decision-making based on incrementalism where the firm is predicted to start the internationalization by
moving into those markets they can most easily understand.
- IMS có xu hướng: based on intuition and pragmatism (chủ nghĩa thực dụng).
- In real life, the decision about IMS is made by the partner obtaining the main contract (main contractor –
nhà thầu chính), từ đó SMEs mới có thể tham gia được vào thị trường quốc tế.
- SMEs are often selling to global customers (so-called global accounts) who have a global scope of
operation and they expect delivery of the SME’s product and services at multiple country sites.
- SMEs with already established global distribution networks and production sites in more business hubs are
often better positioned to supply these global account customers, VD: automotive sector (ngành công
nghiệp ô tô).
LSEs:
- LSEs with existing operations in many countries have to decide which of them to introduce new products
into.
- By drawing on existing operations, LSEs have easier access to product-specific data that is more accurate
than any secondary database => the LSEs can be more proactive.
- IMS có xu hướng: more proactive, organized in a systematic way with step-by-step analysis.

Fig.8.2: IMS step

Step 1 & 2: Defining criteria & developing segments

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Criteria gồm general characteristics + specific characteristics.

- General characteristics gồm: geographic, language, political factors, demography, economy, industrial
structure, technology, social organization, religion, education.
- Specific characteristics gồm: cultural characteristics, lifestyle, personality, attitudes and tastes.
Step 3: Screening of segments
Divided into 2 stages: preliminary screening and fine-grained screening.
- Preliminary screening: This is where markets/countries are screened primarily accord- ing to external
screening criteria (the state of the market). In the case of SMEs, considering the limited internal resources
(e.g. financial resources) => Using knocked-out criteria to exclude unsuitable countries.
- Fine-grained screening: comparing the firm’s competitive strength in different markets.

Step 4: Microsegmentation => using the MACS model (market attractiveness and competitive strength
model).

Fig 8.17 tr.307: global product portfolio

The corporate portfolio analysis provides an important tool to assess how to allocate resources, not only
across geographic areas but also across different product business. The global corporate portfolio represents
the most aggregate level of analysis and it might consist of operations by product businesses or by
geographic areas.
the further analysis of single corporate product business can be carried out in a product or geographic
dimension, or a combination of the two.
The global corporate portfolio can be characterized by high market attractiveness and high competitive
strengths => phục vụ cho market-planning decisions.
Waterfall vs shower approach

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Chương 9: Some approaches to the choice of entry mode

*Entry mode: An institutional arrangement for the entry of a company’s products and services into a new
foreign market. The main types are export, intermediate, and hierarchical modes.
There are three different rules: naive rule (the decision-maker uses the same entry mode for all foreign
markets), pragmatic rule (The decision-maker uses a workable entry mode for each foreign market), and
strategy rules (This approach requires that all alternative entry modes are systematically compared and
evaluated before any choice is made).
- P352: Fig 9.1: Factors influencing the choice of entry mode: internal factors, external factors, desired mode
characteristics, transaction-specific behavior.

-> Các yếu tố đánh giá, với các yếu tố tác động mang dấu +: với từng thị trường, các yếu tố đó càng cao thì
phương án lựa chọn sẽ tăng dần và cao nhất sẽ là internalization, để có thể dễ control hoạt động kinh doanh
của doanh nghiệp.
Với các yếu tố mang dấu -: dấu - càng nhiều thì sẽ ngược lại với ý trên, phương án lựa chọn sẽ giảm dần
xuống intermidiate mode và xuống thấp nhất là export mode (phương án an toàn và low risk).
● Hierarchical mode (direct investment: resulting in full ownership of the stores): Zara: Those markets
where the hierarchical model is used are characterized by high growth potential and relatively low
sociocultural distance (low country risk) between Spain and target market: high control, high risk, low
flexibility, the most costly, most difficult to change in the short run.
● The intermediate modes (contractual modes) (usually joint venture and franchising): used in
countries where the sociocultural distance is relatively high. [Joint ventures: This particular mode is used in

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large, competitive markets where it is difficult to acquire property to set up retail outlets or where there are
other kinds of obstacles that require cooperation with a local company]; [Franchising: for high-risk
countries that are socioculturally distant or have small markets with a low sales forecast: shared control
and risk, split ownership
● Export modes: exporting is appropriate when there is a low trade barrier, home location has and
advantage on costs, and when customization is not crucial.; minimal resource commitment: low control, low
risk, high flexibility
1. Internal factors
a. Firm size
- As the firm grows, it will increasingly use the hierarchical model.
- Export entry modes, with their lower resource commitment, may therefore be more suitable for
SMEs.
b. International experience
- Reduces the cost and uncertainty of serving a market, increases the probability of firms committing
resources to foreign markets, which favours direct investment in the form of wholly owned subsidiaries
(hierarchical modes).
-> Đúng nếu chọn đất nước là điểm đến tiếp theo có nét tương đồng với quốc gia mà doanh nghiệp đã có
kinh nghiệm gia nhập thị trường trước đó. Nét tương đồng giữa quốc gia đã thâm nhập với quốc gia mới
càng cao thì lựa chọn hình thức thâm nhập càng cao và cao nhất là hierarchical mode.
c. Product/service
The physical characteristics of the product or service, such as its value/weight ratio, perishability and
composition, are important in determining where production is located
+ For instance, the technical nature of a product (high complexity) may require service both before and
after sale. In many foreign market areas, marketing intermediaries may not be able to handle such work.
Instead firms will use one of the hierarchical modes.
+ Products with high value/weight ratios, such as expensive watches, are typically used for direct
exporting, especially where there are significant production economies of scale, or if management wishes to
retain control over production.
2. External factors
a. Sociocultural distance between home country and host country
- To summarize, other things being equal, when the perceived distance between the home and host
country is great, firms will favour entry modes that involve relatively low resource commitments and high
flexibility.
b. Country risk/demand uncertainty
- When country risk is high, a firm would do well to limit its exposure to such risk by restricting its
resource commitments in that particular national domain. That is, other things being equal, when country
risk is high, firms will favour entry modes that involve relatively low resource commitments (export modes).
c. Market size and growth

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- The larger the country and the size of its market, and the higher the growth rate, the more likely
management will be to commit resources to its development, and to consider establishing a wholly-owned
sales subsidiary or to participate in a majority-owned joint venture.
- Small markets may not warrant significant attention or resources. Consequently, they may be best
supplied via exporting or a licensing agreement.
d. Direct and indirect trade barriers
e. Intensity of competition
- The greater the intensity of competition in the host market, the more the firm will favour entry modes
(export modes) that involve low resource commitments.
f. Small number of relevant intermediaries available
3. Desired mode characteristics
a. Risk-averse
If decision-makers are risk-averse they will prefer export modes (e.g. indirect and direct exporting) or
licensing (an intermediate mode), because these typically entail low levels of financial and management
resource commitment
b. Control
- Control is often closely linked to the level of resource commitment. Modes of entry with minimal
resource commitment, such as indirect exporting, provide little or no control over the conditions under
which the product or service is marketed abroad.
c. Flexibility
- The hierarchical modes are typically the most costly, but they are the least flexible and most difficult
to change in the short run.
- Export modes provide the company with higher flexibility because the company can terminate an
agent contract on a relatively short time horizon.
4. Transaction-specific factor

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Chương 10: Export mode

- Figure 10.1: Giải thích về export mode pg 367

3 modes: Indirect export, direct export, cooperative export

1. Indirect export modes: A manufacturer uses independent export organizations located in its own country
(or third country). Is used when:
- International sales are viewed primarily as a means of disposing of surplus production, or as a marginal
- Adopted by a firm with minimal resources to devote to international expansion which wants to enter
international markets gradually, testing out markets before committing major resources and effort to
developing an export organization.
Disadvantages:
- The firm has little or no control over the way the product or service is marketed in other countries.
- The firm has limited information about foreign market potential, and obtains little input to develop a plan
for international expansion. The firm will have no means to identify potential sales agents or distributors for
its products.
Advantages:
- The least cost and risk of any entry method
- Through indirect export modes the SME is able to utilize the resources of other experienced exporters and
to expand its business to many countries.
5 main entry modes of indirect exporting: export buying agent, broker, export management company/export
house, trading company, piggyback
- Export buying agent: A representative of foreign buyers who is located in the exporter’s home country. The
agent offers services to the foreign buyers, such as identifying potential sellers and negotiating prices.

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- Broker: bring a buyer and a seller together, they may act as the agent for either the seller or the buyer. Does
not actually handle the products sold or bought.
- Export management company/export house: (EMCs) are specialist companies set up to act as the ‘export
department’ for a range of non-competing companies.
+ Advantages:
● EMCs can spread their selling and administration costs over more products and companies, as well as
reducing transport costs
● EMCs deal with the necessary documentation, and their knowledge of local purchasing practices and
government regulations is particularly useful in markets that might prove difficult to penetrate
● Allows individual companies to gain far wider exposure of their products in foreign markets at much
lower overall costs than they could achieve on their own
+ Disadvantages:
● The selection of markets may be made on the basis of what is best for the EMC rather than for the
manufacturer
● They might be tempted to concentrate upon products with immediate sales potential, rather than those
that might require greater customer education and sustained marketing effort to achieve success in the longer
term
● The manufacturer’s products may not be given the necessary attention from salespeople
● EMCs may carry competitive products that they may promote to the disadvantage of a particular firm
- Trading company: They offer a wide range of financial services
- Piggyback: the export-inexperienced SME, the ‘rider’, deals with a larger company (the carrier) which
already operates in certain foreign markets and is willing to act on behalf of the rider that wishes to export to
those markets. It is about the rider’s use of the carrier’s international distribution organization.
+ Advantages:
● Carriers: a low-cost way to get the product because the carrier firm does not have to invest in R&D,
production facilities or market testing for the new product.
● Riders: export conveniently without having to establish their own distribution systems, also they can
observe carefully how the carrier handles the goods and hence learn from the carrier’s experience
+ Disadvantages:
● Carriers: Will the rider maintain the quality of the products sold by another firm? Will the rider firm
develop its production capacity, if necessary?
● Riders: this type of agreement means giving up control over the marketing of its products and lack of
commitment on the part of the carrier and the loss of lucrative sales opportunities in regions not covered by
the carrier are further disadvantages.
2. Direct export mode: The manufacturer sells directly to an importer, agent or distributor located in the
foreign target market.
- Distributors (importers): Independent companies that stock the manufacturer’s product. They will have
substantial freedom to choose their own customers and price. They profit from the difference between their
selling price and the buying price from the manufacturer.

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- Agents: An independent company that sells to customers on behalf of the manufacturer (exporter). Usually
it will not see or stock the product. It profits from a commission (typically 5–10 per cent) paid by the
manufacturer on a pre-agreed basis.
3. Cooperative export modes/export marketing groups: Figure 10.1 shows an export marketing group
with manufacturers A1, A2 and A3, each having separate upstream functions but cooperating on the
downstream functions through a common, foreign-based agent.

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CHƯƠNG 11: Intermediate entry modes : trung gian

● Differences:
- Intermediate # export: they are primarily vehicles for the transfer of knowledge and skills between
partners, in order to create foreign sales.
- Intermediate # hierarchical: there is no full ownership (by the parent firm) involved, but ownership
and control can be shared between the parent firm and a local partner
- CAGR = compound annual growth rate = tỉ lệ tăng tưởng kép
● Intermediate entry modes include a variety of arrangements, such as licensing, franchising,
management contracts, turnkey contracts, joint ventures, and technical know-how or co-production
arrangements.
=> Figure 11.1 shows that the most relevant intermediate modes are shown in the usual value chain
perspective.

=> contractual arrangements take place when firms possessing some sort of competitive advantage are
unable to exploit this advantage because of resource constraints, for instance, but are able to transfer the
advantage to another party. The arrangements often entail long-term relationships between partner firms and
are typically designed to transfer intermediate goods, such as knowledge and/or skills, between firms in
different countries.

11.2 Contract Manufacturing: Hợp đồng sản xuất/ chế tạo

(Là sự hợp tác hoặc chế tạo lắp ráp sản phẩm do nhà sản xuất thực hiện hiện theo đặt hàng của khách nước
ngoài)

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● Contract manufacturing:
- Manufacturing is outsourced to an external partner, specializes in production and production
technology.
- Contract manufacturing is a strategy that allows companies to produce their products in foreign
markets without having to make a long-term commitment to investing in manufacturing facilities and
infrastructure. This can be beneficial for companies that lack the resources or are unwilling to risk the capital
required to establish their own foreign operations. Contract manufacturing also allows companies to focus
on their core competencies of research and development, marketing, distribution, and sales, while
outsourcing the production of their products to a local firm.
=> This approach is particularly popular in industries where quality and specification requirements are
critical. The contractor is responsible for selling the product, while the manufacturer is responsible for
producing it according to the contractor's specifications.
● Benefits of manufacturing in foreign markets:
- Desirability of being close to foreign customers. Local production allows better interaction with local
customer needs concerning product design, delivery and service.
- Foreign production costs (e.g. labour) are low.
- Transportation costs may render heavy or bulky products non-competitive.
- Tariffs or quotas can prevent entry of an exporter’s products.
- In some countries there is government preference for national suppliers.

11.3 Licensing: Cấp phép

(Hình thức thâm nhập thị trường nước ngoài, trong đó một công ty (bên mua giấy phép) quyền được sử dụng
các tài sản vô hình (thương hiệu, kiểu dáng công nghiệp,..) mà họ đàn sở hữu trong 1 time nhất định, bên
mua giấy phép phải trả bản quyền cho bên bán giấy phép.)
● Licensing:
- The licensor gives a right to the licensee against payment, e.g. a right to manufacture a certain
product based on a patent against some agreed royalty.
- Licensing is an alternative strategy for companies to establish local production in foreign markets
without making a capital investment.
=> Unlike contract manufacturing, licensing typically involves a longer-term commitment and transfers
more value chain functions to the licensee, giving them greater control over production.
● Two main approaches to licensing:
- Stand-alone licensing agreement (Hợp đồng sử dụng giấy phép độc quyền): This type of agreement
focuses on the legal transfer of rights and the payment of royalties or other compensation to the licensor. The
royalties earned can be used to fund the licensor's ongoing research and development activities.
- "Licensing plus" licensing agreement: This type of agreement goes beyond simply granting a license.
It also includes provisions for R&D collaboration and/or equity exchange, creating a more strategic
partnership between the licensor and licensee. The licensor may need to adapt its research agenda to align
with the licensee's priorities.

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11.4 Franchising: Nhượng quyền

(Phương thức thâm nhập thị trường nước ngoài trong đó 1 doanh nghiệp (nsx độc quyền) cung cấp cho 1
doanh nghiệp khác (đại lý đặc quyền) tài sản vô hình cùng với sự hỗ trợ trong 1 thời gian dài và nhận lại
được chi phí nhượng quyền kinh doanh)
Franchisor: bên nhượng quyền
Franchisee: bên nhận quyền

● The franchisor gives a right to the franchisee against payment, e.g. a right to use a total business
concept/system, including use of trademarks (brands), against some agreed royalty.
● Factors have contributed to the rapid growth rate of franchising:
- the general worldwide decline of traditional manufacturing industry and its replacement by
service-sector activities has encouraged franchising. It is especially well suited to service and
people-intensive economic activities, particularly where these require a large number of geographically
dispersed outlets serving local markets.
- the growth in popularity of self-employment is a contributory factor to the growth of franchising.
Government policies in many countries have improved the whole climate for small businesses as a means of
stimulating employment.

● Franchising is a marketing-oriented method of selling a business service, often to small independent

investors who have working capital but little or no prior business experience.
- Product and trade name franchising (Nhượng quyền sử dụng tên sản phẩm và thương mại)
- Business format ‘package’ franchising (Nhượng quyền mô hình kinh doanh “trọn gói”)
=> Trong sách ghi tập trung vào cái t2
+ International business format franchising is a market entry mode that involves a relationship between
the entrant (the franchisor) and a host country entity, in which the former transfers, under contract, a
business package (or format) that it has developed and owns, to the latter. The franchise system can be set up
as a direct or indirect system.

_The direct system: the franchisor is controlling and coordinating the activities of the franchisees directly. ->
Advantages: access to local resources and knowledge, more adaptation and the possibility of developing a
successful master franchisee (subfranchisor) as a tool for selling the concept to other prospective franchisees
within the country

_The indirect system: a master franchisee (sub-franchisor) is appointed to establish and service its own
subsystem of franchisees within its territory. => Disadvantage: monitoring issues because of loss of control

11.5 Joint ventures/strategic alliances: Liên doanh/ Liên minh chiến lược

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(Joint ventures - liên doanh: công ty chia sẻ quyền sở hữu và trách nhiệm kinh doanh với 1 đối tác khác ở
nước sở tại trong hoạt động kinh doanh thông qua việc thành lập 1 công ty riêng biệt được sở hữu bởi ít
nhất 2 pháp nhân độc lập để đạt được những mục tiêu kinh doanh chung)
(Stragic alliances - liên minh chiến lược: sự hợp tác giữa các doanh nghiệp nhằm sử dụng các nguồn lực và
tiềm năng cơ bản của các bên để tạo ra những lợi ích chung)

● A joint venture or a strategic alliance is a partnership between two or more parties. In

international joint ventures these parties will be based in different countries, and this obviously complicates
the management of such an arrangement.
● Reasons are given for setting up joint ventures
- Complementary technology or management skills provided by the partners can lead to new
opportunities in existing sectors (e.g. multimedia, in which information processing, communications, and the
media are merging).
- Many firms find that partners in the host country can increase the speed of market entry. Past research
(Kuo et al., 2012) has found evidence that a joint-venture arrangement can compensate for the lack of
international experience. Joint ventures allow the partners to share the responsibility of management and,
consequently, lower overall operation and administrative costs.
- Many less-developed countries, such as China and South Korea, try to restrict foreign ownership.
- Global operations in R&D and production are prohibitively expensive but are necessary to achieve
competitive advantage.
● The formal difference between a joint venture and a strategic alliance is that a strategic alliance is
typically a non-equity cooperation, meaning that the partners do not commit equity into or invest in the
alliance.
=> In a contractual joint venture, no joint enterprise with a separate personality is formed. Two or more
companies form a partnership to share the cost of investment, the risks, and the long-term profits. An equity
joint venture involves the creation of a new company in which foreign and local investors share ownership
and control.

● Three different types of value chain partnerships appear:

- Upstream-based collaboration: A and B collaborate on R&D and/or production.
- Downstream-based collaboration. A and B collaborate on marketing, distribution, sales, and/or
service.
- Upstream/downstream-based collaboration. A and B have different but complementary competences
at each end of the value chain.

● Y coalition - liên minh Y

Each partner in the alliance/joint venture contributes with complementary product lines or services. Each
partner takes care of all value chain activities within its product line. Another example is a joint marketing
agreement where complementary product lines of two firms are sold together through existing or new
distribution channels, and thus broaden the market coverage of both firms.

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● X coalition - liên minh X

=> liên minh này thì t nghĩ là cty A có lợi thế về R&D + sản xuất, B thiên về mkt + sales
Forming X coalitions involves identifying the value chain activities where the firm is well positioned and
has its core competences. Take the case where A has its core competences in upstream functions but is weak
in downstream functions. A wants to enter a foreign market but lacks local market knowledge and does not
know how to get access to foreign distribution channels for its products. Therefore A seeks and finds a
partner, B, which has its core competences in the downstream functions but is weak in the upstream
functions. In this way A and B can form a coalition where B can help A with distribution and selling in a
foreign market, and A can help B with R&D or production.

11.6 Other Intermediate Entry Modes

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Chương 12: Hierarchical modes

Hierarchical mode: The firm owns and controls the foreign entry mode/organization.
As a firm goes through Figure 12.1 , it chooses to decentralize more and more of its activities to the main
foreign markets. In other words, it transfers the responsibility of performing the value chain functions to the
local management in the different countries.
Internationalization stages:
- Ethnocentric orientation: represented by the domestic-based sales representatives. This orientation
represents an extension of the marketing methods used in the home country to foreign markets.
- Polycentric orientation: represented by country subsidiaries. This orientation is based on the assumption
that markets/countries around the world are so different that the only way to succeed internationally is to
manage each country as a separate market with its own subsidiary and adapted marketing mix.
- Regiocentric orientation: represented by a region of the world
- Geocentric orientation: represented by the transnational organization. This orientation is based on the
assumption that the markets around the world consist of similarities and differences and that it is possible to
create a transnational strategy which takes advantage of the similarities between the markets by using
synergy effects to leverage learning on a worldwide basis.

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Foreign Target Market:

- Domestic-based sales representative: The sales representative resides in the home country of the
manufacturer and travels abroad to perform the sales function -> Better control of sales activities can be
achieved than with independent intermediaries, shows a commitment to the customer.
- Resident sales representatives/foreign sales branch/foreign sales subsidiary: the actual performance of
the sales function is transferred to the foreign market. These three options all display a greater customer
commitment than using domestic-based sales representatives.
+ Foreign branch: An extension of and a legal part of the manufacturer (often called a sales office).
Taxation of profits takes place in the manufacturer’s country. -> may consider establishing a wholly owned
sales subsidiary if foreign market sales develop in a positive direction
+ Subsidiary: A local company owned and operated by a foreign company under the laws and taxation
of the host country -> provides complete control of the sales function -> With proper planning, companies
can establish subsidiaries in countries with low business income taxes and gain an advantage by not paying
taxes in their home country
- Sales and production subsidiary: this entry mode requires great investment in terms of management time,
commitment and money. The main reasons for establishing some kind of local production are:
+ To defend existing business
+ To gain new business
+ To save costs
+ To avoid government restrictions that might be in force to restrict imports of certain goods.
Assembly operations: is a variation of the production subsidiary. This strategy is common among
manufacturers of consumer electronics. When a product becomes mature and faces intense price
competition, it may be necessary to shift all of the labour-intensive operations to LDCs (less developed
countries).
- Subsidiary growth and integration strategies: the MNC (multinational corporations) subsidiary operates
in a host country and thus forges relationships with local actors, such as suppliers and customers, who
embody country and local cultural values that differ from the home country and the HQ values. Figure 12.3
presents a framework for analyzing the cultural interaction between organizations in different countries, with
different cultural values:

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+ Integration: Here the MNC’s company (HQ) values are maintained in the subsidiary. At the same
time, the subsidiary develops a high level of external contact and embeddedness to the host country’s
national and local culture. So the subsidiary has close relationships to the local actors, such as local
suppliers.
+ Separation: Here the MNC’s company (HQ) culture is also maintained, but the subsidiary limits its
external embeddedness to the local actors, especially suppliers.
+ Assimilation: This option implies a high level of external embeddedness and lack of maintenance of
the MNC HQ’s own identity and culture. The subsidiary acts more on its own, and assimilates into the local
region with its own cultures and values
+ Marginalization: Here the MNC HQ culture is not established in the subsidiary and the subsidiary
also limits its external embeddedness. Not the best strategy for achieving success in the country.
-> Before the MNC makes a choice of location for its subsidiary in a country, it could benefit from
assessing the nature of the local culture and its strength in the target market.
- Region centres (regional HQ): The regional HQ (‘lead country’) will usually play the role of coordinating
and stimulating sales in the whole region. In Figure 12.1:
+ Downstream functions have been transferred to the region
+ Even greater commitment is shown to the region, because here all the value chain activities are
moved to the region, whereby the firm has become a fully fledged insider in the region
-> At this stage, the firm has all the necessary functions in the region to compete effectively against local
and regional competitors. At the same time, the firm can respond to regional customer needs.
- Transnational organization: Integration and coordination of operations (R&D, production, marketing and
sales and services) across national boundaries in order to achieve synergies on a global scale

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Chương 14: Product decisions

Tr500 – học 3-5 levels of product

1. Scale of elemental dominance (P501)

More and more, offerings cannot be represented accurately by points on either end of a tangibility
continuum. Customers do not seek products; they seek satisfaction. Products thus represent vehicles for
service, because they enable customers to pursue their individualized satisfaction. As you can see in the
figure, salt, dog food provide tangible elements but nursing and teaching totally intangible elements. When
they pay for this product, customers will obtain the product experience.

2. Characteristics of service (phần đọc thêm)

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● Intangibility: As services such as air transport or education cannot be touched or tested

● Perishability: Services cannot be stored for future use – for example, unfilled airline seats are lost
once the aircraft takes off
● Heterogeneity (tính không đồng nhất của dịch vụ): Services are rarely the same because they involve
interactions between people.
● Inseparability (dịch vụ cung cấp tại thời điểm bán): The time of production is very close to or even
simultaneous with the time of consumption

3. Product Life Cycles for different country

The IPLC describes the diffusion process of an innovation across national boundaries. (14.8) - For each
curve, net export results when the curve is above the horizontal line; if the curve is below the horizontal
line, net import results for a particular country.(Đường cong nằm trên là kết quả xuất khẩu ròng - đường
cong nằm dưới là kết quả nhập khẩu ròng)

(Figure 14.8) In the beginning excess production in the innovating country (greater than domestic demand)
will be exported to other advanced countries where demand also grows. Only later does demand begin in
less developed countries. Production, consequently, takes place first in the innovating country. As the
product matures and technology is diffused, production occurs in other industrialized countries and then in
less developed countries. Efficiency/comparative advantages shift from developed countries to developing
countries. Finally, advanced countries, no longer cost-effective, import products from their former
customers.
(Lượng sản xuất dư thừa ở quốc gia đang đổi mới (ở đây là US) (cung > cầu) sẽ được xuất khẩu sang các
nước tiên tiến khác nơi có nhu cầu cũng tăng. Do đó, quá trình sản xuất diễn ra đầu tiên ở quốc gia đang
đổi mới (US). Khi sản phẩm hoàn thiện và công nghệ được phổ biến, hoạt động sản xuất diễn ra ở các nước
phát triển khác (other advanced nations) và sau đó là ở các nước kém phát triển hơn (LDCs). Hiệu
quả/lợi thế so sánh chuyển từ các nước phát triển sang các nước đang phát triển)

Product life cycles across countries: a microeconomic approach

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In foreign markets the time span for a product to pass through a stage may vary from market to market. In
addition, due to different economic levels in different countries, a specific product can be in different PLC
stages in different countries

(Figure 14.9) The product (at a certain time: t1) is in the decline stage in the home market while it is in the
maturity stage for country A and in the introduction stage for country B
Crowd-sourcing: A company or institution that takes a function once performed by employees and outsources it to an
undefined and large community of people in the form of an open call
4. Degrees of product newness
A new product can have several degrees of newness. It may be an entirely new invention (new to the world)
or it may be a slight modification of an existing product.

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(Figure 14.13) newness has two dimensions: newness to the market (consumers, channels and public policy)
and newness to the company. The risk of market failure also increases with the newness of the product.

5. The product communication mix

Product and promotion go hand in hand in foreign markets and together are able to create or destroy markets
in very short order.

(14.14) The key aspects of marketing strategy as a combination of standardization or adaptation of the
product and promotion of elements of the mix, and offers five alternative and more specific approaches to
product policy
6. Country-of-origin effects

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The country of origin (COO) of a product, typically communicated by the phrase ‘made in [country]’. The
COO effects are especially critical among eastern European consumers
When considering the implications of product positioning, it is important to realize that positioning can vary
from market to market, because the target customers for the product differ from country to country. In
confirming the positioning of a product or service in a specific market or region, it is therefore necessary to
establish in the consumer’s perception exactly what the product stands for and how it differs from existing
and potential competition

7. Brand equity
Brand equity: A set of brand assets and liabilities that can be clustered into five categories: brand loyalty,
brand awareness, perceived quality, brand associations and other proprietary brand assets. Brand equity is
the premium a customer/ consumer would pay for the branded product or service compared with an identical
unbranded version of the same product/service.
“a set of brand assets and liabilities linked to the brand, its name and symbol, that add to or subtract from
the value provided by a product or service to a firm or to the firm’s customers” - Aaker

Those assets and liabilities has been clustered into five categories:
● Brand loyalty: encourages customers to buy a particular brand time after time and remain insensitive
to competitors’ offerings.
● Brand awareness: brand names attract attention and convey images of familiarity; may be translated
as what percentage of customers know the brand name.
● Perceived quality: ‘perceived’ means that the customers decide upon the level of quality, not the
company.
● Brand associations: the values and the personality linked to the brand.
● Other proprietary brand assets: include trademarks, patents and marketing channel relationships.

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Chương 15: Pricing decisions

1. Factors influencing international pricing decisions (k yêu cầu ptich cả bảng)
a) Internal factors
● Firm-level factors (có 7 factors nhưng viết cái quan trọng nhất thôi nhé)
- Country of origin (COO): major factor consumers consider when they make a decision about the
maximum price they are willing to pay for a branded product. Cách sử dụng thông tin này: nếu thương hiệu
có hình ảnh và reputation tốt thì việc thực hiện premium pricing strategy sẽ dễ hơn vì khi đó khả năng cao là
khách hàng sẽ sẵn sàng trả giá đó.
- Market entry modes: a manufacturer with a subsidiary in a foreign country has a high level of control
over the pricing policy in that country.
● Product factors:
- Stage in PLC
- Place in product line
- Most important product features: quality, service,...
- Product positioning (USP)
- Product cost structure
b) External factors
● Environmental factors
- Government influences and constraints: import controls, taxes, price controls
- Inflation
- Currency fluctuations
- Business cycle stage
● Market factors
- Customers’ perceptions (needs, tastes)
- Customers’ ability to pay
- Nature of competition
- Competitors’ objectives, strategies and relative strengths/weaknesses
- Grey market appeal
2. International pricing strategies (tập trung vào những phương pháp in đậm, những cái sau chỉ nêu
định nghĩa thôi nhé)
a) Skimming (giá hớt váng): a high price is charged to ‘skim the cream’ from the top end of the market,
in order to achieve the highest possible contribution in a short time -> the price is gradually lowered bc more
segments are targeted and more of the product is made available.
- Product has to be unique
- Some segments of the market must be willing to pay the price -> products should be designed to
appeal to affluent and demanding consumers
- Problems:
+ giá cao, thị phần nhỏ -> công ty bị vulnerable trước đối thủ aggressive
+ duy trì sản phẩm chất lượng cao đòi hỏi nhiều nguồn lực

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+ nếu sản phẩm đc bán rẻ hơn ở nước chủ nhà hoặc ở 1 nước khác thì có khả năng sinh ra thị trường
chợ đen (grey marketing) ~ parallel importing
b) Market pricing: sử dụng khi thị trường mục tiêu đã xuất hiện (những) sản phẩm tương tự. Khi đó giá
cuối cùng sẽ đc dựa trên giá cạnh tranh (competitive prices).
Từ giá trung bình của đối thủ cạnh tranh có thể tạo ra cái gọi là retrograde calculation where the firm uses a
‘reversed’ price escalation to calculate backwards (from market price) to the necessary net price, which
should then be compared with the variable costs.
c) Penetration pricing: used to stimulate market growth and capture market shares by deliberately
offering products at low prices.
- Basic consumption:
+ việc giá thấp làm tăng doanh thu sẽ thất bại nếu đối thủ cạnh tranh chính cũng giảm xuống mức giá
thấp tương đương
+ giá thấp quá nên không đáng tin (not credible) với người tiêu dùng
- Động cơ đặt giá thấp:
+ intensive local competition from rival companies
+ lower income levels of local consumers
+ the belief in some firms (cái này đọc k hiểu nên bỏ qua nha)
d) Price changes on existing products are called for when a new product has been launched or when
changes occur in overall market conditions.
- Thay đổi giá thì những thay đổi liên quan cũng phải được xét tới (VD: giá tăng có thể sẽ đi kèm, ban
đầu ít nhất là tăng nỗ lực promotion)
- Khi giảm giá, độ linh hoạt của người ra quyết định sẽ có xu hướng giảm với sản phẩm hiện tại hơn là
với sp mới
- Timing for price changes cũng quan trọng.
e) Product-service bundle pricing: Bundling product and services together in a system-solution product.
If the customer thinks that entry price is a key barrier, service contracts can be priced higher, which allows
for lower entry product pricing – the practice in many software businesses.
f) Pricing across countries (standardization vs. differentiation)
- Price standardization: set 1 mức giá cố định (fixed world price) rồi từ đó áp dụng ở tất cả các thị
trường sau khi tính đến các yếu tố như tỷ giá hối đoái và sự khác biệt trong bối cảnh pháp lý.
- Price differentiation: This allows each local subsidiary or partner (agent, distributor, etc.) to set a
price that is considered to be the most appropriate for local conditions, and no attempt is made to coordinate
prices from country to country
g) Establishing global-pricing contracts: A customer requiring one global price (per product) from the
supplier for all its foreign strategic business units (SBUs) and subsidiaries.
h) Transfer pricing: Prices charged for intra-company movement of goods and services (goods are
transferred from one domestic unit to another). While transfer prices are internal to the company, they are
important externally for cross-border taxation purposes.

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Bản chất: 1 công ty quốc tế nhiều công ty con tại nhiều nước trên thế giới, họ sẽ tối ưu hoá lợi nhuận bằng
cách chuyển chi phí về nước có thuế cao, lãi về nước có thuế thấp. Những thứ đc chuyển giao có thể là
nguyên liệu sản xuất, linh kiện, thành phẩm hoặc dịch vụ
- The ‘best’ solution depends on the tax rates in the countries of the manufacturing and distribution
affiliates (subsidiaries)
- multinational companies would like to place as much profit in countries with the lowest tax rates. In
order to place as much profit in a certain country, the company should set a relatively low transfer price to
the subsidiary in the ‘low tax rate’ country.
● 3 basic approaches to transfer pricing:
- Transfer at cost: The transfer price is set at the level of the production cost and the international
division is credited with the entire profit that the firm makes. This means that the production centre is
evaluated on efficiency parameters rather than profitability.
- Transfer at arm’s length: a price the subsidiary has to pay for the delivery of goods, services or
intangibles under the conditions of perfect competition. In other words, an arm’s-length price would be the
result of supply and demand in a particular market
- Transfer at cost plus: usual compromise, where profits are split between the production and
international divisions; has the greatest chance of minimizing executive time spent on transfer-price
disagreements, optimizing corporate profits and motivating the home and international divisions
Example: Coca Cola applied a comparable profits method (“CPM”) analysis to reallocate taxable income
from Coca-Cola to its foreign affiliates.
3. Export financing
a) Commercial banks: convenient way to finance all the elements of the contract, such as purchasing,
manufacturing, shipping and credit
b) Export credit insurance: covers political risks and non-convertibility of currency; commercial risks
associated with non-payment by buyers
c) Factoring: selling export debts for immediate cash. In this way, the exporter shifts the problems of
collecting payment for completed orders over to organizations or factors that specialize in export credit
management and finance.
d) Forfeiting: An exporter of capital goods has a buyer that wishes to have medium-term credit to
finance the purchase. The buyer pays some of the cost at once and pays the balance in regular installments
for, say, the next five years. The principal benefit is that there is immediate cash for the exporter and, along
with the first cash payment by the buyer, forfeiting can finance up to 100 percent of the contract value.
e) Bonding: a written instrument issued to an overseas buyer by an acceptable third party, either a bank
or an insurance company. It guarantees compliance of its obligations by an exporter or contractor, or the
overseas buyer will be indemnified for a stated amount against the failure of the exporter/contractor to fulfill
its obligations under the contract.
f) Leasing:
- arrange cross-border leases directly from a bank or leasing company to the foreign buyer
- obtain local leasing facilities either through overseas branches or subdivisions of international banks
or through international leasing associations.

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g) Counter-trade: describe a variety of trade agreements in which a seller provides a buyer with products
(commodities, goods, services, technology) and agrees to a reciprocal purchasing obligation with the buyer
in terms of an agreed percentage (full or partial) of the original sales value.
- Barter: straightforward exchange of goods for goods without any money transfer
- Compensation deal: involves the export of goods in one direction. The ‘payment’ of the goods is split
into two parts:
+ Part payment in cash by the importer
+ For the rest of the ‘payment’ the original exporter makes an obligation to purchase some of the
buyer’s goods. These products can be used in the exporter’s internal production or they may be sold on in
the wider market.
- Buy-back agreement: The sale of machinery, equipment or a turnkey plant to the buyer’s production
is financed at least in part by the exporter’s purchase of some of the resultant output.

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Chương 16: Distribution decisions

Structure of channel
● Market coverage (Mức độ bao phủ thị trường): Coverage can relate to geographical areas or number
of retail outlets. Three approaches are available: intensive: This calls for distributing the product through the
largest number of different types of intermediary and the largest number of individual intermediaries of each
type, selective: This entails choosing a number of intermediaries for each area to be penetrated or exclusive
coverage: This involves choosing only one intermediary in a market.

● Channel coverage (width) can be identified along a continuum ranging from wide channels (intensive
distribution) to narrow channels (exclusive distribution). Some factors (cái này là yếu tố ảnh hưởng đến việc
quyết định sử dụng loại cấu trúc bao phủ nào: với các factors thì sẽ từ low-high: vdu như với factors type thì
sản phẩm tiện lợi sẽ sử dụng intensive còn càng tiến dần đến speciality sẽ sử dụng exclusive) are Product
type (convenience-speciality), price (low-high), brand loyalty (preferred-insisted), uniqueness
(common-distinctive)
Degree of integration: 603-604
- Channel integration is the process of incorporating all channel members into one channel system and
uniting them under one leadership and one set of goals. There are two different types of integration:
1. vertical integration: Seeking control of channel members at different levels of the channel, e.g. the
manufacturer’s acquisition of the distributor. The result of these manoeuvres is the vertical marketing system
(Figure 16.5). Here the channel composition consists of integrated participating members, where channel
stability is high due to assured member loyalty and long-term commitments.

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The vertical integration can take two forms – forward and backward:
- The manufacturer can make forward integration when it seeks control of businesses of the wholesale
and retail levels of the channel. De Beers is a good example of a company which has followed this strategy.
- The retailer can make backward integration, seeking control of businesses at wholesale and
manufacturer levels of the channel. The internet retailer Amazon.com, for example, is aggressively moving
into the publishing domain.
- The wholesaler has two possibilities: both forward and backward integration.
2. horizontal integration: Seeking control of channel members at the same level of the channel, e.g. the
manufacturer’s acquisition of the competitor.
Integration is achieved either through acquisitions (ownership) or through tight cooperative relationships.
Multi-channel strategy
- A product/service is available to the market through two (dual distribution) or more channels of
distribution. Multiple channels may include the internet, sales force, distributors, call centres, retail stores
and direct mail.

- Advantages provided: extended market coverage and increased sales volume; lower absolute or
relative costs; better accommodation of customers’ evolving needs; and more and better information.

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Problems: consumer confusion; conflicts with intermediaries and/or internal distribution units; increased
costs; loss of distinctiveness; and, eventually, an increased organizational complexity.
- Ways to get around that and other across-channel problems: Avoiding direct price comparisons,
Learning to sell niche products, Establishing switching costs.
- Dual marketing: Marketing the same product to two different customer groups, typically both
consumers (B2C) and business customers (B2B), through two different distribution channels, for example,
the consumer and the business market.
Implications of the internet for distribution decisions (Internet): The internet has the power to change
drastically the balance of power among consumers, retailers, distributors, manufacturers and service
providers. Some participants in the dis- tribution chain may experience an increase in their power and
profitability. Others will experience the reverse; some may even find that they have been bypassed and have
lost their market share.
- Disintermediation: The elimination of a layer of intermediaries from a marketing channel or the
displacement of traditional resellers by radically new types of intermediaries. This with increasing direct
sales through the internet, leads manufacturers to compete with their resellers -> channel conflict.
- Channel conflict: Disagreement among marketing channel members on goals and roles – who
should do what and for what rewards. A significant threat arising from the introduction of an internet
channel is that, while disintermediation gives the opportunity for a company to sell direct and increase the
profitability of products, it also threatens distribution arrangements with existing partners.
- IDR cycle (intermediation–disintermediation–reintermediation): The IDR cycle will occur
because new technologies are forcing change in the relationships among buyers, suppliers and middlemen.
Intermediation occurs when a firm begins as a middleman between two industry players (e.g.
buyer–supplier, buyer–estab- lished intermediary or established intermediary–supplier). Disintermediation
occurs when an established middleman is pushed out of the value chain. Reintermediation occurs when a
once disintermediated player is able to re-establish itself as an intermediary.

(không biết thi vào không nhưng

giải thích nôm na là khi có xự suất hiện của kênh phân phối internet thì sẽ xuất hiện các quá trình loại bỏ
trung gian (Disintermediation), ví dụ như không có sự loại bỏ trung gian thì kpp sẽ giống mô hình trên cùng:
đủ các cấp phân phối, còn nêú có sự loại bỏ trung gian thì càng loại bỏ nhiều thì sẽ skip nhiều trung gian pp

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và cuối cùng là bên sản xuất sẽ bán trực tiếp đến tay người tiêu dùng ko qua trung gian) Cách hạn chế việc
bị loại bỏ trung gian là Anti-disintermediation: Measures are carried out through business incentives (or
disincentives) and legal actions to ensure that intermediary positions are not eliminated.
Grey marketing
- Grey marketing(or parallel importing): Importing and selling of products through market distribution
channels that are not authorized by the manufacturer. It occurs when the manufacturer uses significantly
different market prices for the same product in different countries and mainly exists for high-priced,
high-end products, such as fashion and luxury apparel. (Những mặt hàng xách tay giá rẻ, không bị đánh thuế
như mỹ phẩm, rượu, thực phẩm chức năng,... Những mặt hàng hiếm chưa được nhập khẩu chính ngạch,
được các cá nhân mua về với số lượng nhỏ lẻ, Một số loại chứng khoán, ngoại tệ, vé xem bóng đá,...)
Channel power: The ability of a channel member to control marketing variables of any other member in a
channel at a different level of distribution. (A classic example of this channel power is the amount of power
wielded by retailers against the food and grocery manufacturers. One result of this may be found in Exhibit
16.3, where the ‘banana split’ (ng trồng chuối 2%-plan owners 10%-companies 31%-distributors
17%-retailers 40%) shows that increasing retailing power has resulted in a retail share of the total value
chain in the banana business of 40 per cent.)
Smartphone mkt: Mobile-marketing enables distribution of information to the con- sumer at the most
effective time, place and in the right context. This suggests that m-marketing, via mobile devices, will
cement further the interactive marketing relation- ship. Greater adoption of mobile technology can help the
marketer deliver messages to consumers when in a relevant environment. Benefits (comparison shopping,
Bridge the gap between bricks and clicks, Opt-in searches, Travel. Ability to change and monitor scheduled
travel any time, any place)

Chương 17: Communication decisions

1. Message đến host country
To communicate in an effective way, the sender needs to have a clear understanding of the purpose of the
message, the audience to be reached and how this audience will interpret and respond to the message.
However, sometimes the audience cannot hear clearly what the sender is trying to say about its product
because of the ‘noise’ of rival manufacturers making similar and often contradictory claims about their
products.

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2. các yếu tố ảnh hưởng - Factors influencing the communication situation

● Language differences: A slogan or advertising copy that is effective in one language may mean
something different in another language. Thus the trade names, sales presentation materials and
advertisements used by firms in their domestic markets may have to be adapted and translated when used in
other markets
Example: General Motors has a brand name for one of its models called the Vauxhall Nova – this does not
work well in Spanish-speaking markets because there it means ‘no go’.
● Economic differences: In contrast to industrialized countries, people in developing countries may be
more likely to have radios than television sets. In countries with low levels of literacy, written
communication may not be as effective as visual or oral communication.
● Sociocultural differences: Dimensions of culture (religion, attitudes, social conditions and education)
affect how individuals perceive their environment and interpret signals and symbols. For example, in many
Asian countries, white is associated with grief; hence an advertisement for a detergent where whiteness is
emphasized would have to be altered for promotional activities in, say, India.
● Legal and regulatory conditions: Local advertising regulations and industry codes directly influence
the selection of media and content of promotion materials. Many governments maintain tight regulations on
content, language and sexism in advertising. The type of product that can be advertised is also regulated.
Tobacco products and alcoholic beverages are the most heavily regulated in terms of promotion. However,
the manufacturers of these products have not abandoned their promotional efforts. Regulations are found
more in industrialized economies than in developing economies, where the advertising industry is not yet as
highly developed.
● Competitive differences: As competitors vary from country to country in terms of number, size, type
and promotional strategies used, a firm may have to adapt its promotional strategy and the timing of its
efforts to the local environment
table 17.1

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2. 5 công cụ

3. các example
● Example of standardization strategies
The Cathay Pacific advertisements show that the company uses a standardized strategy in the South-east
Asian area. The only element of adaptation is the translation of the English text into Japanese.
● Examples of adaptation (localization) strategies

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Lego Freestyle: europe versus the Far east

The LEGO images show European and Far Eastern versions of an advertisement for LEGO FreeStyle. The
Asian version, ‘Build your child’s mind’, appeals to Asian parents’ desire for their children to do well in
school.
The Asian educational system is very competitive and only those with the highest grades are admitted to
university. In many places in Asia it is a defeat for parents if their child does not do well in school. The
Asian version has been run in Hong Kong, Taiwan and Korea (preferably in the local languages because the
majority of consumers do not understand English). In Hong Kong, the advertisements are run in English or
Chinese (depending on the language of the magazine). The European version implies creativity when
playing with the different FreeStyle bricks: ‘What will your child make of it?’
17.5: internet role in communication

4. Social media marketing

Social media: group of internet-based applications that allow the creation and exchange of user-generated
content. Examples are blogs, YouTube, networking sites, photo-sharing and aggregating channels.

a. Social networking as a communication tool has two interrelated promotional roles

- Social networking should be consistent with the use of traditional IMC tools. That is, companies
should use social media to talk to their customers through such platforms as blogs, as well as Facebook and
Twitter groups. These media may either be company- sponsored or sponsored by other individuals or
organizations.
- Social networking is enabling customers to talk to one another. This is an extension of traditional
word-of-mouth communication. While companies cannot directly control such C2C messages, they do have
the ability to influence the conversations that consumers have with one another. However, consumers’
ability to communicate with one another limits the amount of control companies have over the content and
dissemination of information. Consumers are in control; they have greater access to information and greater
command over media consumption than ever before.

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b. The four different communication styles:

1. The traditional one-way advertising (mass media advertising like television advertising,
newspaper/magazine advertising etc.) represents the ‘bowling’ approach where the firm attempts to ‘hit’ as
many customers with ‘shotgun’ mass media methods. Normally this approach is a one-way communication
type.

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2. Customer-driven interaction represents a higher degree of interaction between the com- pany and its
different key customers. Often the company finds some key account man- agers, who have the responsibility
of taking care of the one-to-one interaction between the firm and its key accounts (customers).
3. Viral marketing represents version 1.0 of social media marketing, where the company uses an
non-traditional medium, such as a YouTube video for example, to attract atten- tion and build brand
awareness. The interaction between the potential ‘customers’ is quite high (blogging sites, etc.), but the
feedback to the company is relatively low (no double arrows back to the company).
4. Social media marketing represents version 2.0 of social media marketing, where there is also an extensive
feedback to the company itself (double arrows back to the company). Here the company has proactively
chosen to be a co-player in the discussion and blogging on the different relevant social media sites
(Facebook, Twitter, etc.). This also means that the company here tries to strengthen interaction with the
customers in a positive direction, in order to influence customer behaviour. In order to do so, the company
needs a back-up team of social media employees who can interact and communicate online with potential
and actual customers. Consequently, this strategy is also very resource demanding.

c. The 6C model:
● Company and content
Basically, the internet remains a ‘pull’ medium, in the way that firms seek to pull viewers to its content, and
finally to the company itself. However, before any ‘pull’ can happen, the content has to be pushed (seeded)
forward in the chain. Consequently, content pushed into the social media sphere by a company acts as a
catalyst for our model of engagement or participation.
● Control
In order to accelerate the viral uptake of its brand messaging, the company sometimes gives up the digital
rights and blocks in order to encourage online community members to copy, modify, repost and forward the
content. The content is intended to be copied and/or embedded into people’s websites, blogs and on

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Facebook walls. The key point to this stage in the process is that the company (the content creator) must
accept, and even embrace, the fact that they no longer have full control over the content: it is free to be
taken, modified, commented on and otherwise appropriated by the community of interest. This may
challenge the conventional ‘brand management’ wisdom stating that managers must keep control of brand
image and messaging.
● Community
The company creates content and pushes it over the symbolic border of control to the other side, where a
community of interested consumers now takes it up. At this point, communication becomes bidirectional.
The use of arrows in Figure 17.9 for push and pull attempts to reflect the ‘give-and-take’ that goes on
between a community and the company, represented by the content creators. In its simplest form, it is
reflected in the art of commenting: posting reactions to the content. In some cases, the company can even
learn about ‘customer behaviour’ in the market by following these online community discussions. In an
ideal world, a series of reflexive conversations take place in the community, independent of any action by
the company, which will often have a passive role as an observer
When transferring the ‘content’ into the online community, the company and the content providers often try
to target the ‘market mavens’, which are defined as individuals who have access to a large amount of
marketplace information, and proactively engage in discussions with other online community members and
customers to diffuse and spread this content.
Market mavens are typically the first to receive the message and transmit it to their immediate social
networks. They function as connectors or bridges between different subcultures’ and their network of social
hubs can facilitate immediate transmission of the content to thousands of online community members.
● Customers and online conversation
The ultimate expression of engagement occurs when a multitude of online conversations circle around the
phenomenon and content. The 6C model distinguishes between the online community and potential
customers, as the latter are usually a subset of the former. The online community may also include people
who have heard of the web-based initiative but not directly participated in it.
In general, there seems to be a growing escalation in participation on the part of customers; a willingness to
engage with a brand that extends beyond just purchase decisions at the point of sale.

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