Page 245 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes

Notes Once global marketing strategies have been formulated, marketing research has
been conducted to support those strategies and once product service, pricing, promotion,
and place decisions have been made then the focus of managers turns to implementation
of the plans.
In international business such plans are almost always implemented through face to face
negotiations with business partners and customers from foreign countries. The sales of goods
and services, the management of distribution channels, the contracting for marketing research
and advertising services, licensing and franchise agreements and strategies alliances all require
managers of different cultures to sit and talk with one another to exchange ideas and express
needs and preferences.

Did u know? Face-to-Face Negotiation Theory is a theory first proposed by Stella Ting-
Toomey in 1985 to understand how different cultures throughout the world respond to
conflict.
Executives must also negotiate with representatives of foreign governments who might approve
a variety of their marketing actions or in fact be the actual ultimate customer for goods and
services. In many countries governmental officials may also be joint venture partners and in
some cases vendors.

Example: Negotiation for the television broadcast rights for the 2008 Summer Olympics
in Beijing China, included NBC the international Olympic Committee and Chinese governmental
officials.
Some of these negotiations can become quite complex, involving several governments, companies
and culture.
Good examples are the European and North American talks regarding taxing the Internet, the
on going interactions regarding global environmental issues or the ongoing WTO negotiations
begun in Doha Qatar in 2001. All these activities demand a new kind of business diplomacy.
One authority on international joint ventures suggests that a crucial aspect of all international
commercial relationships is the negotiation of the original agreement. The seeds of success or
failure often are sown at the negotiation table vis-à-vis (face to face) where not only financial
and legal details are agreed to but perhaps more importantly the ambience of cooperation is
established. Indeed the legal details and the structure of international business ventures are
almost always modified over time usually through negotiation. But the atmosphere of
cooperation initially established face to face at the negotiations table persist or the venture fails.

Self Assessment

State whether the following statements are true or false:
1. Speaking only English is a huge disadvantage in international business.
2. Face to face negotiations are a minor activity in international commerce.
3. The Negotiation Orientations Framework provides perhaps the most comprehensive
approach to date for systematic comparison of national cultural differences in negotiations.

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