Chap 1

1/ Global Marketing
- This is the most advanced stage of global marketing, where the company
adopts a global mindset and integrates its marketing strategies across all
markets → Company treats world, including home market as one market
- Market segmentation decisions no longer focused on national borders but
defined by income levels, usage patterns, or other factors
- More than half of revenues come from abroad
- Organization takes on global perspective
2/ Globalization (Standardization): Đây là chiến lược tập trung vào việc
tạo ra các sản phẩm, dịch vụ và chiến lược marketing đồng nhất trên tất
cả các thị trường. Các công ty cố gắng đạt được lợi thế kinh tế nhờ
giảm thiểu sự khác biệt.
–Developing standardized products marketed worldwide with a standardized
marketing mix
–Essence of mass marketing
3/ Global localization (Adaptation): Chiến lược này nhấn mạnh việc tùy
chỉnh sản phẩm, dịch vụ và chiến lược marketing để đáp ứng nhu cầu
về văn hóa, kinh tế và quy định tại từng địa phương.
–Mixing standardization and customization in a way that minimizes costs while
maximizing satisfaction
–Essence of segmentation
–Think globally, act locally
4/ Market Entry mode:
Licensing (Nhượng quyền thương mại): Doanh nghiệp cấp quyền cho
đối tác nước ngoài sử dụng tài sản trí tuệ, thương hiệu, hoặc quy trình
sản xuất để đổi lấy phí hoặc tiền bản quyền.
•A contractual agreement whereby one company (the licensor) makes an
asset available to another company (the licensee) in exchange for royalties,
license fees, or some other form of compensation
–Patent
–Trade secret
–Brand name
–Product formulations
Advantages to Licensing:
•Provides additional profitability with little initial investment
•Provides method of circumventing tariffs, quotas, and other export barriers
•Attractive ROI
•Low costs to implement
•Licensees have autonomy to adapt products to local tastes
•License agreements should have cross-technology agreements to share
developments and create competitive advantage for each party
Disadvantages to Licensing:
•Limited market control
•Returns may be lost
•The agreement may be short-lived
•Licensee may become competitor
•Licensee may exploit company resources
Contract manufacturing
–Company provides technical specifications to a subcontractor or local
manufacturer
–Allows company to specialize in product design while contractors accept
responsibility for manufacturing facilities
–May open the firm to criticism if manufacturers operate with harsh working
conditions or have low wages
Franchising (Nhượng quyền kinh doanh) : Công ty mẹ cho phép đối tác
sử dụng thương hiệu và mô hình kinh doanh trong khi cung cấp hỗ trợ
liên tục.
–Contract between a parent company-franchisor and a franchisee that allows
the franchisee to operate a business developed by the franchisor in return for
a fee and adherence to franchise-wide policies
–Used by the specialty retailing & fast-food industries
Joint Ventures (Liên doanh): Doanh nghiệp hợp tác với một đối tác địa
phương để thành lập một công ty liên doanh.
•Entry strategy for a single target country in which the partners share
ownership of a newly-created business entity
•Builds upon each partner’s strengths
•Examples: Budweiser and Kirin (Japan), GM and Toyota, GM and Daewoo in
S. Korea, Ford and Mazda, Chrysler and BMW
● Advantages
–Allows for risk sharing–financial and political
–Provides opportunity to learn new environment
–Provides opportunity to achieve synergy by combining strengths of partners
–May be the only way to enter market given barriers to entry
● Disadvantages
–Requires more investment than a licensing agreement
–Must share rewards as well as risks
–Requires strong coordination
–Potential for conflict among partners
–Partner may become a competitor
Exporting (Xuất khẩu)
Exporting accounts for some 10% of global activity
• Direct exporting – the company sells to a customer in another country
• Indirect exporting – the company sells to a buyer (importer or distribution)
in the home country, who in turn exports the product

Foreign Direct Investment (FDI) refers to investments made by a company

or individual in one country into business interests located in another country.
It typically involves significant ownership stakes to establish control or
influence over the foreign enterprise. There are two primary types of FDI:
Mergers and Acquisitions and 100% Direct Investment.

1. Mergers and Acquisitions (M&A) (Sáp nhập or mua lại)

Definition: In this approach, an investor acquires an existing business or

merges it with their own operations.

Quicker market entry as it leverages an established company's assets,

networks, and reputation.

Reduces competition by acquiring competitors or firms in the same industry.

Common in industries where building infrastructure from scratch is costly.

● Examples:
 ○ Acquisition of a local company by a multinational corporation to
tap into local markets.
○ Cross-border mergers to consolidate operations for efficiency.

2. 100% Direct Investment:

Definition: The investor establishes a wholly-owned subsidiary or a new

operation from scratch (commonly referred to as "Greenfield Investment" -
Xây dựng cơ sở mới hoàn toàn từ đầu).

Full control over the enterprise's operations, management, and profits.

Higher initial investment costs due to the need to build infrastructure, hire staff,
and develop supply chains.

Often chosen in markets with fewer restrictions on foreign ownership or where

local partnerships are not mandatory.

● Examples:
○ A company building a new manufacturing plant in a foreign
country.
○ Establishing entirely new retail chains or distribution networks
abroad.

+ Seeking markets all over the world

+ Planning entails not only the marketing but also the production of goods
outside the home
market.
* Global Marketing
- This is the most advanced stage of global marketing, where the company
adopts a global
mindset and integrates its marketing strategies across all markets →
Company treats world, including home market as one market
- Market segmentation decisions no longer focused on national borders but
defined by income levels, usage patterns, or other factors
- More than half of revenues come from abroad
- Organization takes on global perspective
5. Strategic Orientation

•Ethnocentric Orientation (Domestic)

– Home country is superior to others
– Sees only similarities in other countries
–Assumes products and practices that succeed at home will be successful
everywhere
–Leads to a standardized or extension approach
•Polycentric Orientation (Country)
–Each country is unique
–Each subsidiary develops its own unique business and marketing strategies
–Often referred to as multinational
–Leads to a localized or adaptation approach that assumes products must be
adapted to local market conditions

•Regiocentric Orientation (Region)

–A region is the relevant geographic unit
•Ex: The NAFTA or European Union market
–Some companies serve markets throughout the world but on a regional basis
•Ex: General Motors had four regions for decades
•Geocentric Orientation (Global)
–Entire world is a potential market
–Strives for integrated global strategies
–Also known as a global or transnational company
–Retains an association with the headquarters country
–Pursues serving world markets from a single country or sources globally to
focus on select country markets
–Leads to a combination of extension and adaptation elements
Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its
stakeholders
Marketing deals with identifying and meeting human and social needs. It is
essentially about “meeting needs profitably”
Marketing management is the art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering,
and communicating superior customer value.
Marketing is all about : Create value for customers by improving benefits or
reducing price, Improve the product, Find new distribution channels,
Create better communications, Cut monetary and non-monetary costs and
prices
Controllable factors: Corporate resources, structures, and core competencies
that can limit or promote strategic
Choices, 4Ps, channels-of-distribution, research activities to capitalize on
anticipated demand
Globalization (Standardization): Developing standardized products
marketed worldwide with a standardized marketing mix, Essence of mass
marketing
Global localization (Adaptation): Mixing standardization and customization
in a way that minimizes costs while maximizing satisfaction, Essence
of segmentation, Think globally, act locally
No Direct Foreign Marketing (NDFM): is a stage in a company's international
marketing strategy where the company does not actively engage in
direct marketing efforts in foreign markets
Infrequent Foreign Marketing (IFM): is a stage in a company's international
marketing strategy where the company engages in sporadic or
occasional marketing efforts in foreign markets. Companies that have
experienced temporary surpluses or increases in demand for their products or
services → sell off excess inventory or to tap into new customer bases.
Regular Foreign Marketing (RFM): is a stage in a company's international
marketing strategy where the company engages in a more consistent
and ongoing effort to market and sell its products or services in foreign
markets → Firm has production capacity devoted to foreign markets
International Marketing: Companies are fully committed to and involved in
international marketing activities. + Seeking markets all over the
world. + Planning entails not only the marketing but also the production of
goods outside the home
market.
Global Marketing: This is the most advanced stage of global marketing, where
the company adopts a global mindset and integrates its marketing
strategies across all markets → Company treats world, including home market
as one market
Domestic Market Orientation: International operations viewed as secondary,
Prime motive is to market excess domestic production, Firm’s
orientation remains basically domestic, Minimal efforts are made to adapt
product or marketing mix to foreign markets , Firms with this approach are
classified as ethnocentric
→ Ethnocentric Orientation: Home country is superior to others,Sees only
similarities in other countries, Assumes products and practices that
succeed at home will be successful everywhere
→ Standardized, centralized or extension approach
Multidomestic Market Orientation: Companies have a strong sense that
foreign country markets are vastly different, Market success requires an
almost independent program for each country. Separate marketing strategies,
Subsidiaries operate independently of one another in establishing
marketing objectives and plans, Products are adapted for each market
→ Polycentric Orientation (Đa tâm): Each country is unique,Each subsidiary
develops its own unique business and
marketing strategies,Often referred to as multinational
→ Localized or adaptation approach
→ Control is decentralized
* Global Market Orientation
→ Regiocentric Orientation (Trung tâm), Geocentric
Protectionism: is an economic policy that aims to protect domestic industries
from foreign competition by imposing tariffs, quotas, or other
restrictions on imports. Tariffs, quotas, and nontariff barriers are designed to
protect markets from intrusions by foreign countries. Nations utilize
barriers to restrain entry of unwanted goods: Legal, Exchange, Psychological,
Private market
The World Trade Organization (WTO) is an intergovernmental organization
that regulates and facilitates international trade. WTO is an institution
– not an agreement: Sets many rules governing trade between its 164
members, Provides a panel exports to hear and rule on trade disputes
between imperative in another, Cultural electives are most visibly different
customs
Cultural exclusives: Customs or behavior patterns reserved exclusively for the
locals
Monochronic time: Tend to concentrate on one thing at a time. Divide time into
small units and are concerned with promptness. Most low-context
cultures operate on M-Time
Polychronic time: Dominant in high-context cultures. Characterized by the
simultaneous occurrence of many things. Allows for relationships to
build and context to be absorbed as parts of high-context cultures
Production orientation (consumers will prefer products that are widely
available)
Product orientation (consumers will favor products that offer the most quality
performance, or innovative features)
Selling orientation (consumers and businesses alike will not buy enough
without prodding)
* U.S. Laws Apply in Host Countries:
Foreign Corrupt Practices Act: Makes it illegal for companies to pay bribes to
foreign officials, candidates, or political parties
National security laws: Prohibit a U.S. company, its subsidiaries, joint
ventures, or licensees to sell controlled products without special permission
from the U.S.
Antitrust laws: Enforcement has two purposes in international commerce
Protect American consumers
Protect American exports and investments against any private restrictions.
Antiboycott law: U.S. companies are forbidden to participate in any
unauthorized foreign boycott, Required to report any request to cooperate with
a boycott
Extraterritoriality of U.S. laws: Especially important to U.S. multinational firms,
Foreign governments fear the influence of American government
policy on their economies through U.S. multinationals
Cybersquatters (CSQs) buy and register descriptive nouns, geographic
names, and names of ethnic groups and pharmaceutical substances, and
other similar descriptors and hold them until they can be sold at an inflated
price
Economic Factors: Market Enlargement: Preferential tariff treatment for
members, common tariff barriers against outsiders. Complementary
Economic Bases: Nations with similar economic foundations experience
smoother integration. Dispute Resolution: Agreements and mechanisms in
place to settle economic disputes. LAFTA Demise: Stronger members
neglecting the needs of weaker ones led to the downfall of LAFTA.
Political Factors: State Sovereignty: Nations relinquish sovereignty for
promised improvements through cooperation. Political Unity: Essential for
reaping full benefits of economic integration; illustrated by the formation of the
European Union.
Geographic and Cultural Factors: Proximity: Geographic and temporal
proximity, along with cultural similarity, facilitate successful markets.
Trade Patterns: Recent research emphasizes time zones over physical
distances; cultural similarity enhances market success.
Global Marketing Management: Evolution of Perspectives: From
standardization versus adaptation to global integration versus local
responsiveness. Trend Back Toward Localization: Driven by customization
efficiencies enabled by the Internet and flexible manufacturing processes.
Benefits of Global Marketing: Economies of scale, transfer of experience,
access to tough customers, financial benefits.
Planning for Global Markets: Importance of Planning: Adapting to changing
markets, competition, and challenges.
Planning Process: Phases include preliminary analysis, adapting marketing
mix, developing the marketing plan, and implementation/control
International marketing: is the performance of business activities designed to
plan, price, promote and direct the flow of a company’s goods and
services to consumers or users in more than one nation for a profit
Voluntary offered payment by someone seeking unlawful advantage is bribery
If payments are extracted under duress by someone in authority from a
person seeking only what he are she is lawfully entitled to that is extortion
Lubrication involves a relatively small sum of cash, a gift, or a service given to
a low-ranking official in a country where such offerings are not
prohibited by law
Subornation involves giving large sums of money, frequently not properly
accounted for, designed to entice an official to commit an illegal act on
behalf of the one offering the bribe

* True/False
1. Nike dropped their well known tag line "Just do it" in advertising women's
clothing in Europe and replaced it by the slogan "Here I am" since
college-age women in Europe are not as competitive about sports as men are.
TRUE
2. McDonald's global marketing strategy is based primarily on local marketing
mix elements. FALSE
3. The Coca-Cola Company supports it's Coke, Fanta, and Dasani brands with
marketing mix elements that are both international and local. TRUE
4. Customer lifetime value (CLV) describes the net present value of the stream
of future profits expected over the customer’s lifetime purchases.
TRUE
5. Major benefits of standardization include less distribution & communication
costs of standardization. TRUE
6. The nature of international marketing strategy depends on company’s
objectives & goals, varies from country to country. TRUE
7. International marketing managers may be required to learn the
decision-making routines that may have worked well in the firm’s domestic
operations in favor of new routines geared to foreign markets. TRUE
8. One difference between domestic and international marketing is the scope
of activities. TRUE
9. Research on a single country conducted by a researcher from another
country with a view to understanding similarities and differences with the
researcher’s home market would be considered international marketing
research. FALSE
10. Market entry modes may be classified by their risk/reward profile. In this
context hierarchical modes represent a sharing of the risks and rewards
between two or more firms. TRUE
11. Today, becoming international is a luxury only some companies can
afford. FALSE
12. International marketing involves selling of a company's goods and services
to consumers or users in more than one nation for a profit. TRUE
13. The main difference between domestic and international marketing lies in
the different concepts of marketing. FALSE
14. An international marketer must deal with at least two levels of
uncontrollable uncertainty. TRUE
15. The uncontrollable factors affecting international marketing are limited to
political forces, economic climate, and competitive structure. FALSE
16. The uncontrollable factors a company has to deal with decrease with the
number of foreign markets in which it operates. FALSE
18. The process of evaluating the uncontrollable elements in an international
marketing program may involve cultural, political, and economic shock.
TRUE
19. Political and legal issues a company may face abroad are mitigated by the
"alien status" of the company. FALSE
20. A company in the "no direct foreign marketing" stage of international
marketing involvement does not actively cultivate customers outside
national boundaries. TRUE
21. The global marketing concept views the marketplace as consisting of one
primary domestic market that is complimented by several smaller
regional markets. FALSE
22. After World War II, the U.S. provided assistance to other countries to
develop their markets and improve global trade though it gained no returns
on these initiatives. FALSE
23. The GATT became part of the World Trade Organization in 1995, with the
ratification of the Uruguay Round agreements. TRUE
24. As part of the worldwide economic growth and rebuilding after World War
II, countries once classified as less developed were reclassified as
underdeveloped countries. FALSE
25. A nation’s balance-of-payments statement records all financial
transactions between its residents and those of the rest of the world during a
given
period of time. TRUE
26. In a balance-of-payments record, if the credit and debit offset each other, it
means that a nation is in particularly good financial condition. FALSE
27. The reserves account is a record of direct investment, portfolio investment,
and short-term capital movements to and from countries. FALSE
28. Protection of an infant industry is recognized by economists as a valid
argument in favor of Protectionism. TRUE
29. Economists in general recognize only the arguments regarding infant
industry, national defense, and industrialization of underdeveloped countries
in favor of protectionism. TRUE
30. To encourage development of domestic industries, governments work on
reducing trade Barriers. FALSE
31. In general, tariffs decrease inflationary pressures. FALSE
32. Tariffs are often used as reprisals against protectionist moves of trading
partners. TRUE
33. Quotas strictly permit importing on a case-by-case basis. FALSE
34. Quotas are more flexible than import licenses. FALSE
35. Obtaining export licenses for products on the export control list is more
arduous than for those items that are exempted from the list. FALSE
36. The decisions taken by the World Trade Organization in solving trade
disputes among members are binding ones. TRUE
37. We are less likely to evaluate a person’s behavior in terms of what is
familiar to us because we use our self-reference criterion (SRC). FALSE
38. Cultural electives are business customs in which an outsider must not
participate. FALSE
39. Cultural imperatives are business customs that are generally similar
across cultures. FALSE
40. The majority of business customs fit into the cultural elective category.
TRUE
41. High-Power Distance Index countries are more egalitarian than low-Power
Distance Index countries. FALSE
42. The three typical decision-making patterns are top-level management
decisions, decentralized decisions, and committee or group decisions.
TRUE
43. As businesses grow and professional management develops, there is a
shift toward centralized management decision making. FALSE
44. High-context cultures place great importance on the verbal aspects of
communication. FALSE
45. Businesspeople in low-context cultures use email more often than those in
high-context cultures. TRUE
46. Most high-context cultures operate on monochronic time. FALSE
47. Polychronic time is characterized by “a great involvement with people”.
TRUE
48. The distinction between bribery and extortion depends on whether the
activity resulted from an offer or from a demand for payment. TRUE
49. Subornation payments accompany requests for a person to do a job more
rapidly or more efficiently. FALSE
50. Lubrication is a request for officials to turn their heads, to not do their jobs,
or to break the law. TRUE
51. Chinese cultures are high on Power Distance Index and low on
Individualism/Collective Index. TRUE
52. High-context cultures score high on power distance and low on
individualism. TRUE
53. The most managerially useful aspect of the synthesis of cultural
differences is that it allows us to make predictions about unfamiliar cultures.
TRUE
* Short answer
1. National culture – what it is all about and how it impacts on IM activities?
Culture is the sum of the values, rituals, symbols, beliefs, and thought
processes that are learned, shared by a group of people and transmitted from
generation to generation. National culture plays a significant role in shaping
consumer behavior and preferences, which in turn impacts international
marketing activities:
+ Consumer behavior: National culture influences consumer perception,
attitudes, and expectations towards products, services and brands
+ Marketing strategy adaption: companies need to adapt their marketing
strategies to align with the cultural context of the target market
2. Modify briefly about the uncontrollable foreign environment factors
influencing to the company expanding to internationally?
The factors are divided into four categories:
- Political and legal: These factors include the government's stability,
corruption levels, intellectual property laws, and trade regulations.
- Cultural: These factors include the language, customs, values, and beliefs of
the people in the target country.
-Economic: These factors include the economic growth rate, inflation rate,
unemployment rate, and currency exchange rate.
-Technological: These factors include the level of technological development
and the availability of skilled workers.
Companies should carefully consider all of these factors before expanding
internationally. Even a small change in one factor can have a significant
impact on the company's success.
Here is a modified version of the list of uncontrollable foreign environment
factors influencing a company expanding to internationally:
-Political and legal: Government stability, Corruption levels,Intellectual
property laws,Trade regulations,Taxation,Foreign investment laws
-Cultural: Language, Customs, Values, Beliefs,Business culture,Social media
use
-Economic: Economic growth rate,Inflation rate,Unemployment rate,Currency
exchange rate,Interest rates,Infrastructure
-Technological: Level of technological development, Availability of skilled
workers, Internet access ,Cybersecurity regulations
Companies can mitigate the risks posed by uncontrollable foreign environment
factors by carefully planning their expansion strategy and by
diversifying their operations across multiple countries.
3. Based on the value chain marketing concept below, shortly explain the
International Marketing concept of “think globally, act locally”?
Think globally, act locally is an international marketing concept that
encourages businesses to consider the global marketplace when developing
their
marketing strategies, but to also tailor their marketing campaigns to the
specific needs and wants of local customers.
In the context of the value chain marketing concept, think globally, act locally
can be interpreted as follows:
Globally: Businesses should identify the common needs and wants of
customers across different countries. This can be done through market
research,
customer surveys, and focus groups.
Locally: Businesses should adapt their marketing campaigns to the specific
needs and wants of customers in each local market. This may involve
adapting the product or service, the pricing strategy, the distribution channels,
or the promotional messages
4.Some of the ways the company enter foreign markets belows and identify
the differences between export trading and international
marketing?
-Export trading is the process of selling goods and services to foreign buyers.
It is a relatively low-risk way to enter a new market, as the company
does not need to establish a physical presence in the target country. However,
export trading can also be less profitable than other modes of
international marketing, as the company may have to pay tariffs and other
import duties.
-International marketing is the broader process of developing and
implementing marketing strategies to reach and sell to customers in foreign
markets. It includes export trading, but it also encompasses other activities
such as product development, market research, pricing, and distribution.
International marketing can be more complex and risky than export trading,
but it also has the potential to be more profitable.
5. Explain the components of product for adaptation marketing strategy?
The components of product for adaptation marketing strategy can be divided
into two categories:
- Tangible components: These are the physical elements of the product, such
as its design, features, and packaging.
- Intangible components: These are the non-physical elements of the product,
such as its brand name, image, and warranty.
When adapting a product for a new market, it is important to consider both the
tangible and intangible components. For example, a company may
need to modify the physical design of its product to meet the needs of local
customers. The company may also need to change its product's packaging
and branding to reflect local cultural preferences.
6. See below - the elements of a nation culture relate to entrering foreign
markets, demonstrate these cultural elements towards Vietnam or
any country?
The elements of a nation culture relate to entering foreign markets in a variety
of ways. Some of the most important elements of a nation culture
relate to entering foreign markets include:
-National identity: Vietnam is a country with a strong national identity, which
means that they are proud of their history and culture. Businesses that
enter the Vietnamese market should be respectful of Vietnamese culture and
customs.
-National values: Some of the core values in Vietnamese culture include
collectivism, harmony, and respect for elders. Businesses should be aware of
these values and tailor their marketing and business practices accordingly.
-Religion: Vietnam is a religiously diverse country, with Buddhism,
Catholicism, and Protestantism being the three main religions. Businesses
should
be respectful of all religions and avoid making religious references in their
marketing materials.
-Language: Vietnamese is the official language of Vietnam. Businesses that
enter the Vietnamese market should consider translating their marketing
materials into Vietnamese and hiring Vietnamese-speaking staff.
-Customs and traditions: Vietnam has a rich culture with many customs and
traditions. Businesses should be aware of these customs and traditions
and avoid doing anything that could be considered offensive
7. Describe the main features of these three (3) international product strategic
alternatives may be for internatinally?
-Straight product strategy: This involves selling the same product in all
international markets without any modifications.
Advantages: This strategy is relatively simple and low-cost to implement. It
can also help businesses to build a strong global brand identity.
Disadvantages: This strategy may not be effective in all international markets,
as customers in different countries may have different needs and
wants. It may also be difficult to compete with local businesses that have
products that are specifically tailored to the local market.
-Product adaptation strategy: This involves modifying the product to meet the
specific needs and wants of customers in each international market
awareness and customer loyalty.
Disadvantages: This strategy can be very risky and expensive, as there is no
guarantee that new products will be successful. It also requires
businesses to have a strong research and development team.The best
international product strategic alternative for a business will depend on a
number of factors, including the type of product, the target markets, and the
company's resources.
8. Explain briefly about what the necessary conditions of international
marketing standardization strategy is?
An international marketing standardization strategy is a marketing approach
that involves using the same marketing mix elements (product, price,
promotion, and distribution) across all international markets. This strategy is
based on the assumption that customers in different countries have
similar needs and wants.
Here are the necessary conditions for an international marketing
standardization strategy to be successful:
- Global similarity of customer needs and wants: For standardization to be
effective, there must be a significant degree of similarity in the needs and
wants of customers across different markets. This can be assessed through
market research, which can identify common consumer behaviors,
preferences, and attitudes.
- Global brand equity: A strong global brand can facilitate standardization by
creating a sense of familiarity and trust among consumers worldwide. A
well-established brand can also help to overcome cultural differences and
establish a consistent brand image across markets.
- Cost efficiencies: Standardization can lead to cost efficiencies by reducing
the need to develop and adapt marketing campaigns for each individual
market. This can save time, money, and resources, making it a more
cost-effective approach.
- Uniformity of product features and benefits: Standardizing product features
and benefits can simplify production and distribution processes, making
it easier to manage operations across borders. A consistent product offering
can also reinforce brand identity and simplify customer communication.
- Global marketing infrastructure: An international marketing standardization
strategy requires a robust global marketing infrastructure, including a
network of distribution channels, communication platforms, and marketing
teams capable of executing standardized campaigns effectively.
- Legal and regulatory compliance: Companies must ensure that their
standardized marketing campaigns adhere to the legal and regulatory
requirements of each market they operate in, avoiding any potential legal or
ethical issues.
- Flexibility to address local nuances: While standardization aims for
consistency, it also requires a degree of flexibility to address local nuances
and
preferences. This may involve adapting messaging, language, or promotional
activities to resonate with specific cultural contexts.
- Continuous monitoring and evaluation: International marketing
standardization is an ongoing process that requires continuous monitoring and
evaluation. Companies should track the effectiveness of their standardized
campaigns and make adjustments as needed to ensure they remain relevant
and successful across markets.
9. Briefly identify about what the constrains/difficulties of international
marketing adaptation strategy is?
-Increased Costs and Complexity: Adapting products, pricing, promotion, and
distribution strategies to each international market can significantly
increase the overall costs of marketing activities. Companies need to invest in
market research, product development, localized marketing campaigns,
and tailored distribution channels, adding layers of complexity to their global
marketing efforts.
-Potential for Cultural Misinterpretations: Modifying marketing materials and
strategies to suit local cultures requires a deep understanding of
cultural nuances, sensitivities, and preferences. Without careful consideration,
companies risk misinterpreting cultural cues, offending local
audiences, and damaging their brand reputation.
- Balancing Standardization and Adaptation: Striking the right balance
between global standardization and local adaptation is a delicate task. Over-
standardization may lead to missed opportunities to connect with local
consumers, while excessive adaptation can create logistical challenges and
undermine brand consistency.
10 .Explain briefly about what the implementation criteria of international
marketing adapted standardization strategy is?
Implementing an international marketing adapted standardization strategy
involves carefully considering various factors and making strategic
decisions to achieve a balance between global consistency and local
relevance.
-Identify Global Similarities and Local Differences: Conduct thorough market
research to understand the underlying similarities and differences in
customer needs, preferences, and behaviors across target markets. This will
inform the degree of standardization and adaptation required for each
market.
-Assess Product Suitability: Evaluate the suitability of the core product
concept and features for each target market. Determine whether the product
needs minor modifications or significant adaptations to cater to local
preferences and regulations.
-Align Pricing Strategies: Develop pricing strategies that are sensitive to local
market conditions, considering factors like consumer spending power,
competitive landscape, and cost structures. Balance global price consistency
with local pricing considerations.
-Tailor Distribution Channels: Identify and utilize appropriate distribution
channels that align with local market practices, consumer preferences, and
infrastructure limitations. Adapt distribution strategies to ensure product
availability and accessibility in each market.
-Balance Global Brand Identity and Local Adaptation: Maintain a consistent
and recognizable core brand identity while adapting marketing elements
to connect with local audiences. Strike a balance between global brand
recognition and local relevance.
-Monitor Market Reactions and Adapt Continuously: Continuously monitor
market reactions to adapted marketing campaigns and make adjustments
as needed. Stay agile and responsive to evolving consumer preferences and
changing market conditions.
Q1: Marketing has often defined as “satisfying customer’s needs and wants.
Agree. Marketing is often defined as satisfying customers' needs and wants. It
involves identifying the target audience and developing products or
services that meet their needs and wants. Additionally, marketing involves
creating communication strategies and developing relationships with
customers to promote the product or service effectively. The ultimate goal of
marketing is to create customer value and gain a competitive advantage
in the marketplace.
Q2: International Marketing concept of “Think global, act loyalty”.
The “Think global, act locally” concept in international marketing recognizes
the growing importance of global interconnectedness while
acknowledge the differences in local markets. It suggests that a companies
should consider the global market as a whole, but also recognize the
unique characteristics of each local market and adapt their marketing
strategies accordingly. Essentially, it means that businesses should strike a
balance standardization and localization to successfully to a global audience.
An example of "Think global, act locally" in action could be seen in
McDonald's menu offerings in different countries. For example, in India,
McDonald's offers a range of vegetarian options to cater to local dietary
preferences. Similarly, in Japan, McDonald's introduced the "Teriyaki
Burger" to appeal to local tastes.
By adapting its offerings to the local context, McDonald's can effectively cater
to the unique needs and preferences of each market while still
maintaining its core brand values and global identity. This approach
demonstrates the importance of considering both global and local factors in
international marketing.
Q3: CSV beyond border. This is considered a contemporary International
Marketing Definition comment
“Customers superior value beyond border" is not a contemporary international
marketing definition. Contemporary international marketing
definitions refer to the strategies and tactics used by companies to promote
and sell their products or services in foreign markets. Some contemporary
definitions of international marketing include "the process of planning and
executing the conception, pricing, promotion, and distribution of goods
and services across national borders to create exchanges that satisfy
individual and organizational objectives" and "the application of marketing
principles to satisfy the needs and wants of people in different countries and
regions, utilizing a global market orientation and integrating local
market knowledge.”
Q4: Describe the elements of PESTLE impact strongly on International
Marketing activities at home and host countries?
PESTLE analysis is a framework that helps to analyze the
macro-environmental factors that impact business operations. It encompasses
political,
economic, social, technological, legal, and environmental factors.
1. Political Environment: This environmental factor influences International
Marketing activities in several ways. Regulations, trade agreements, and
policies that governments put in place can affect international trade activities.
For example, if the home country has a trade agreement with other
countries, then international marketing activities will be more comfortable.
2. Economic Environment: Economic factors such as inflation rates, exchange
rates, and economic growth rate have an impact on international
marketing activities.
The availability of resources, credit markets, and government policies such as
tax policies can also affect international marketing activities.
3. Social Environment: Social factors such as culture, values, attitudes, and
lifestyle can influence international marketing activities.
Marketers must understand the values and beliefs of the target market in the
home country to design products and services that match these values.
4. Technological Environment: Technological factors such as innovation,
automation, and information are becoming more important in international
marketing activities.
Marketers must keep pace with technological advancements to remain
relevant and competitive in international markets.
5. Legal Environment: Legal factors in the home country like intellectual
property rights, labor laws, and product safety laws may impact
international marketing activities.
6. Environmental Factors: Environmental factors such as climate change and
pollution regulations can influence international marketing activities in
certain industries.
Businesses must consider the impact of their activities on the environment to
comply with laws and regulations.
Q4: What are the difference between strategic international marketing (STP)
and tactical marketing strategy (Marketing mix/4Ps)
Strategic international marketing is a long-term approach to expanding a
company’s business globally, involving careful analysis and planning of its
marketing activities across multiple markets. It requires a deep understanding
of global market trends, customer needs and preferences, and
regulatory requirements.
Tactical marketing strategy is a short-term approach to achieving specific
marketing goals, such as increasing sales and awareness
Overall, strategic international marketing is more comprehensive and long
term approach to expanding a business globally, while tactical marketing
strategy is a more focused and short-term
Q5: National cuture - what it is all about and how it impacts on international
marketing activities?
National culture refers to the shared beliefs, values, customs, traditions, and
behaviors of a society. It impacts international marketing activities in
several ways:
Consumer Behavior: Cultural values and norms influence consumer
preferences, buying habits, and decision-making processes
Communication and Messaging: Cultural differences affect communication
styles, necessitating the adaptation of marketing messages and
campaigns to align with cultural norms and preferences.
Product Development: Cultural preferences and needs shape product design,
features, and functionalities.
Branding and Positioning: Cultural perceptions and values influence how
brands are perceived and positioned in different markets.
Market Entry Strategies: Cultural factors influence market receptivity and
necessitate the selection of appropriate entry modes and partnerships.
Ethical and Legal Considerations: Cultural variations affect ethical frameworks
and require marketers to navigate cultural nuances and comply
with local laws and ethical standards.
Consumer Decision-Making: Cultural influences impact the factors that drive
consumer decision-making, such as the importance of family or social
networks.
Understanding and adapting to national culture are essential for successful
international marketing, enabling marketers to connect with consumers,
tailor strategies, and build strong brand identities in diverse markets.
Q5: What is the founding elements of nation culture?
1. Language: The language spoken by the majority of people in the country
can be a defining element of its culture
2. Religion: The dominant religion practiced in a country can influence its art,
music, and traditions
3. Cuisine: The types of food and cooking styles in a country can be a symbol
of its culture
4. History: A country's historical events and figures can shape its identity
5. Arts and Literature: The art, literature, music, and architecture produced in
a country can be reflections of its cultural identity
Example:
1. Language: The language spoken by the majority of people in the country
can be a defining element of its culture
2. Religion: The dominant religion practiced in a country can influence its art,
music, and traditions
3. Cuisine: The types of food and cooking styles in a country can be a symbol
of its culture
4. History: A country's historical events and figures can shape its identity
5. Arts and Literature: The art, literature, music, and architecture produced in
a country can be reflections of its cultural identity
Culture expression:
Hero: Samurai
They embodied the ideals of discipline, loyalty, and honor. Today, the image of
a samurai is a symbol of strength and courage in Japan.
Symbol: Cherry Blossoms are one of Japan's most recognizable symbols.
Ritual: Tea Ceremony
The tea ceremony, or sado, is a traditional ritual in Japan that emphasizes
mindfulness and respect for others. It involves the preparation and serving
of matcha, a powdered green tea. The tea ceremony is often performed in a
serene and simple setting, and each gesture and movement is carefully
choreographed to create a sense of harmony and tranquility.
Culture elements
Language:
The official language of Japan is Japanese, which is the primary language
spoken by the majority of the population. The language has a unique
writing system that combines three scripts - kanji (Chinese characters),
hiragana, and katakana.
Institutions:
Japan has a well-structured institutional system that includes the government,
educational institutions, religious institutions, and business
corporations. The Japanese government has a democratic system with a
constitutional monarchy, and the educational institutions prioritize education
and academic excellence.
Material culture:
The material culture of Japan includes a wide range of items such as
traditional clothing (kimono), wooden houses, traditional Japanese cuisine,
and
contemporary technology. The country is also known for its minimalist and
functional approach to design, which has influenced modern architecture
and product design worldwide.
Attitude to the world:
Japanese culture emphasizes respect for others, politeness, and harmony
with nature. They place great importance on community and group-oriented
behavior, which is reflected in their social and business interactions. The
country also emphasizes cleanliness and orderliness, and this is evident in
the public spaces and transportation systems.
6. What are the F.B.A ( Features, Benefits, Advantages) standardization
marketing strategies?
Features
Consistent marketing mix across different countries and regions
Reduction of costs associated with developing and implementing multiple
marketing campaigns
Simplification of the marketing process
Efficiency in marketing efforts
Increased global reach
Reduced risk in new markets
Benefits
The overriding benefits of a standardized marketing strategy are consistency
throughout the world and cost savings. Increased globalization of world
businesses contributes to more similarities among international marketplaces.
This has led some companies to realize the benefits of providing a
consistent, and uniform product and marketing system around the world.
Because these organizations are producing same products and reusing
established marketing and distribution systems, they also get economies of
scales benefits in production and buying.
Advantages
Standardization can help to build a strong brand image and increase customer
loyalty
By using a consistent marketing mix, companies can reduce costs and
achieve greater efficiency in their marketing efforts
Standardization can simplify the marketing process and make it easier to
expand into new markets
Standardization can reduce the risk of failure in new markets
7. What are the F.B.A ( Features, Benefits, Advantages) Adaptation
marketing strategies?
- Features
Adaptation strategies may be as simple as tweaking the logo and the colors of
the packaging, or may involve developing new flavors better suited to
the local palate or new financing models more fitting for the local economy.
Adaptation strategies involve changing the price, promotion and
packaging of a product, or even the product itself, in order to fit the needs and
preferences of a particular country. Adaptation occurs when any
element of the marketing strategy is modified to achieve a competitive
advantage when entering a foreign market.
ategic adaptability is being aware of the factors that can change and how they
affect your business. The market
supply and demand can transform without warning, but knowing that supply
and demand is an important business factor can help
you track and create a forecast for supply and demand.
- Advantages
+ Be flexible. Flexibility as a manager can help employees learn to be more
adaptable. This may include adjusting your management
style for employees and the work environment.
+ Excellent communication is key to being able to adjust to changes in your
environment. Explaining why, how and when to perform
tasks is important in helping employees accept the changes.
+ Involve your team in decision-making. Allowing employees to take part in
decision-making increases their engagement and often
helps them to be more accepting of change in the work environment.
8. What are the F.B.A ( Features, Benefits, Advantages) Adaptation
standardization marketing strategies?
Features: In adaptation marketing, features can be customized to meet the
specific needs of a local market. For example, a car manufacturer may
introduce a smaller car model in a market where parking space is limited.
In standardization marketing, features are highlighted as universal and
consistent across all markets. For example, a smartphone manufacturer may
advertise the same high-resolution camera feature in all markets.
Benefits: In adaptation marketing, benefits can be tailored to address the
unique needs of a local market. For example, a health drink manufacturer
may highlight the benefits of the drink for the local weather conditions.
In standardization marketing, benefits are highlighted as universal and
consistent across all markets. For example, a software company may
advertise
the benefits of improved productivity for all businesses.
Advantages: In adaptation marketing, advantages can be used to differentiate
the product from local competitors. For example, a restaurant may
advertise that they use organic ingredients, which is an advantage over local
restaurants that do not.
In standardization marketing, advantages are highlighted as universal and
consistent across all markets. For example, a travel agency may advertise
that they offer the best deals on flights and hotels, which is an advantage over
all other travel agencies.

CASE STUDY
NESTLE
1. Nestle is a multinational food and beverage company founded in 1866 by
Henri Nestlé. The company offers a wide range of products in different
markets including baby food, coffee, bottled water, milkshake, breakfast
cereals, and pet food among others. Nestle operates in 194 countries with
447 factories and employs around 339,000 people worldwide. The company's
main mission is to provide high-quality and nutritious products to
consumers across the world.
2. The advantage of forming joint ventures or alliances into new markets for
Nestlé is the ability to share resources and risks with local partners while
gaining local knowledge and expertise. This approach can also bring cost
savings and may help to overcome regulatory barriers in foreign markets.
The disadvantage of joint ventures is that the control and decision-making
power may be more challenging to negotiate, and there may be disputes
over profit sharing, governance, and management practices. On the other
hand, the advantages of foreign direct investment (FDI) include greater
control over operations and a higher potential for market share and revenue
growth. However, the disadvantage of FDI is that it requires greater
financial investment and exposes Nestle to more significant political and
economic risks in the host country.
3. Nestle's local and international marketing strategies are aimed at delivering
high-quality products to consumers while promoting its brands
effectively. The benefit Nestle may gain through the Vietnamese market
includes leveraging the country's growing middle-class population and high
GDP growth, which presents a significant opportunity forle's extensive product
portfolio. Localizing marketing strategies tailored to Vietnamese
consumers can help Nestle increase brand awareness and improve market
share. Vietnam's large population creates a growing demand for food and
beverage products, and increasing urbanization is driving an increase in
demand for convenience and packaged foods, presenting Nestle with a
unique advantage. Additionally, Nestle's established distribution channels and
logistics infrastructure can help to enable easier product distribution in
Vietnam's relatively fragmented retail market.
APPLE
Q1. Apple Inc. is a multinational technology company based in Cupertino,
California, that designs and develops consumer electronics, computer
software and online services. The company is known for its innovative
products such as the iPhone, iPad, Mac, iPod, and Apple Watch, and its
software includes operating systems and web browsers such as macOS, iOS
and Safari. The company is known for its innovation and has come up
with many revolutionary products such as the Macintosh, iPod, and iPhone.
Apple Inc. is considered as the largest information technology company
in the world in terms of revenue. Its promotional strategy focuses on
aggressive advertising using various channels such as TV, print media, online
ads, and billboards. Apple products are known for their premium pricing and
are considered a status symbol
Q2. The Key Success Factors of Apple's international marketing strategy
include innovation, reputation, premium pricing policy, aggressive
marketing, global distribution strategy, and strong supply chain management.
These factors have contributed to Apple's leading brand positioning in
the technology industry, globally.
Q3. iPhone STP (Segmentation, Targeting, and Positioning):
Segmentation: Apple uses behavioral and psychographic segmentation to
target specific customer groups who value premium products with cutting-
edge technology. The company targets consumers who are willing to pay a
premium price for high-quality products.
Targeting: Apple has a focus on affluent customers who seek premium
products with cutting-edge technology. Apple's marketing strategy targets
customers that are willing to pay a premium price for quality products.
Positioning: Apple positions the iPhone as a premium smartphone that offers
cutting-edge technology, elegant design, and a user-friendly interface
that is unmatched by competitors. The iPhone is positioned as a status
symbol, and the company uses innovative product design and exclusive
marketing campaigns to reinforce this image.
SWOT analysis of Apple iPhone:
Strengths:
1. Strong brand image and reputation
2. Innovative technology and design
3. High user experience
4. Wide selection of apps
5. Large and loyal customer base
Weaknesses:
1. Premium pricing strategy may limit the market potential
2. Reliance on a limited range of products may impact the company's financial
stability
3. Dependence on suppliers for components may impact production
processes
Opportunities:
1. Expansion into emerging markets
2. Development of new products
3. Collaborations with other brands to diversify offerings
4. Growth of the wearables market
Threats:
1. Increasing competition from established competitors and new entrants
2. Economic instability and fluctuations in consumer demand
3. Political and regulatory challenges
4. Changes in consumer behavior and preferences
Q4. This case study highlights the company's focus on product innovation and
premium pricing strategy. However, Apple could benefit from
Vietnam's growing economy and increasing middle class population. Vietnam
has a young population, and is one of the fastest-growing smartphone
markets in the world. Therefore, Apple could consider expanding its
distribution channels and opening more retail stores in Vietnam. They could
also
localize their products and services to cater to the specific needs and
preferences of the Vietnamese market. Therefore, Vietnam could offer a
significant growth opportunity for Apple in Southeast Asia.