Internation Marketing

Assignment # 1
By: Jahangir Tariq (9474)





Q1. Why marketers need to be responsive to the geography of a country?

Marketers need to be responsive in order to understand the effects that geography
has on countries ability to supply needs, transport products, and impact the
economy. Moreover countrys economic growth and ability to trade is also affected
by the physical barriers.

Q2. What is the impact of cultural borrowing?

International marketers should be aware the extent to which cultures borrow ideas
and learn from other cultures in order to market products from one culture to
another. Marketers can control the product offered to a market its promotion,
price, and eventual distribution methods but they have only limited control over
the cultural environment within which these plans must be implemented. Special
effort and study are needed to absorb enough understanding of the foreign culture
to cope with the uncontrollable features.

Q3. What are the differences between relationship-oriented and information-
oriented cultures?

The difference between relationship-oriented and information-oriented culture is
that in information-oriented culture people prefer to complete their task and work
on time. For them, work comes first. For e.g. Germans
In relationship-oriented culture people maintain relationships and socializing. For
them these are more important than accomplishing tasks. For e.g. Arabs

Q4. How to assess and reduce the effect of political vulnerability?

There are no absolute guidelines for assessing political vulnerability but there are
some generalizations. When a product is exposed to political risk, there is an effect
on the environment, exchange rates, national and economic security and affect on
public health, e.g., genetically modified (GM) foods.
In order to reduce the effect of political vulnerability MNCs should invest such that
it brings out a good relationship with the government. For e.g. investing helps to
improve the balance of payments, create more jobs, uses locally produced
resources or makes tax contributions. Moreover; strategies such as joint ventures,
licensing, political payoffs, and expanding the investment base can reduce the
political risk.


Q5. How and why governments encourage foreign investment?

Governments encourage foreign investment by allowing foreign firms to invest in
their country either by purchasing a land and opening a subsidiary company or
buying goods from the country. The benefits that the government can get from
foreign investments are:

Economic Growth. Countries receiving foreign direct investment often
experience higher economic growth by opening it up to new markets, as seen in
many emerging economies.
Job Creation & Employment. Most foreign direct investment is designed to
create new businesses in the host country, which usually translates to job
creation and higher wages.
Technology Transfer. Foreign direct investment often introduces world-class
technologies and technical expertise to developing countries.

Q6. What steps can be taken to protect against piracy and counterfeiting?

Steps to be taken to protect against piracy and counterfeiting are:
1. Patent
2. Copyright
3. Trademark
4. Trade Secret

1. Patent: A patent is a contract between the government and an inventor. The
patent gives the owners a negative right, preventing anyone from making, using
or selling the defined invention for a limited period of time.

2. Copyright: Copyright is a legitimate notion, ordered by generally governments,
giving the maker of unique work restrictive rights to it, for the most part for a
constrained time. For the most part, it is "the right to duplicate", additionally
gives the copyright holder the right to be credited for the work, to confirm who
might adjust the work to different structures, which might perform the work,
which might fiscally profit from it, and other identified rights.

3. Trademark categories:
Coined marks no relationship between mark and the goods
Arbitrary mark has another meaning in our language
Suggestive mark suggest features or characteristics of a product or service
Descriptive mark recognition before it can be registered

4. Trade Secret: A trade secret is a formula, practice, process, plan, instrument,
design, or gathering of qualified data which is not ordinarily known or sensibly
ascertainable, by which a business can acquire a budgetary preference over
contenders or clients.

Q7. What is the importance of problem definition in international research?

In international research, there is a great importance of problem recognition.
Without finding a problem your research will not move on. The decision maker
should properly communicate his problem in order to start the research.

Q8. How global marketing management differs from international marketing
management?

Global marketing is essentially when an association takes a look at the whole world
as one market. There are no distinctions between a neighborhood business sector
and the business 10,000 miles away. It sees everything in the same way and not like
it is any diverse in any particular ways. Global marketing is utilized by gigantic chain
stores that push just certain items.

International marketing is a little distinctive still from global marketing.
International marketing is when an association that is based in one nation chooses
to offer items in an alternate one. It sets up work places and central command in
the different nations. International marketing is very nearly like an establishment is
being fabricated, simply in a different nation. The association still claims and works
the business in the other nation, yet the central command in the particular nation
cook the business to the nation's necessities.

Q9. Explain factors affecting choice of channels?

There are many factors that affect the choice of channels such as cost, capital
requirements, control, coverage, character and continuity. The other factors also
include political and economical stability of the country.

1. Cost: There are two kinds of channel cost
a) The capital or investment cost of developing the channel
b) The continuing cost of maintaining it

There are also cost of marketing which is the difference between the factory price
of the goods and the price the customer pays for the goods. The cost of middlemen
includes transporting and storing goods, providing credit, advertising and
negotiations.

2. Capital Requirements: Maximum investment is usually required when a
company establishes its own internal channel, that is, its own sales force.

3. Control: The more involved a company is with the distribution, the more control
it exerts. Each type of channel arrangement provides a different level of control,
as channel grows longer, the ability to control price, volume, promotion and
type of outlets dimensions.

4. Coverage: It is the goal to have full market coverage to gain the optimum
volume of sales obtainable in each market, secure a reasonable market share,
and attain satisfactory market penetration. Coverage is difficult to extend both
in highly developed areas and in sparse markets.

5. Character: The channel of distribution system selected must fit the character of
the company and the markets in which it is doing business.

6. Continuity: Channels of distribution often pose longevity problems. When one
individual retires or moves out of line of business, the company may find it has
lost its distribution in that area. Most middlemen have little loyalty towards
their vendors.

Q10. Explain the stages of International Marketing Involvement. Please give
examples of for each stage.
There are 5 stages of international marketing involvement
1. No Direct Foreign marketing
In this stage the company does not actively target customers outside national
boundaries but the company's product may reach foreign markets via domestic
wholesalers irritate distributors who sell abroad without the knowledge of the
producer.


2. Infrequent Foreign Marketing
Temporary surpluses caused by variations in production demands may result in
infrequent marketing overseas. Here the sales are made with no or little intention
of maintaining continuous market representation. As domestic demand increases,
foreign sales activity is withdrawn.
3. Regular Foreign marketing
At this level, the firm has permanent productive capacity devoted to the
production of goods to be marketed in foreign markets. The primary focus of
operations and production is service domestic market needs but if overseas
demand increases sales are made.
4. International Marketing
Companies at this stage fully committed and involved in international marketing
activities. Companies sell their products all over the world and are a result of
planned production for markets in various countries.
5. Global Marketing
Companies at this stage treat the world including the home market as one market.
Market segmentation decisions are no longer focused on national borders.
Q11. Why does the government impose restrictions on trade (Quotas, Embargos,
etc)? Is this always beneficial? Please explain in detail.

Government imposes restrictions on trade for several reasons:

- Protection of infant industry
- Protection of the home market
- Need to keep money at home
- Encouragement of capital accumulation
- Maintenance of the standard of living and real wages
- Conservation of natural resources
- Industrialization of a low-wage nation
- Maintenance of employment and reduction of unemployment
- National defense
- Increase of business size
- Retaliation and bargaining

Q12. Why is it so important to study the history and geography of a country?

It is important to study the history of a country because unless you have a historical
sense of the many changes that have been in a country, you will have difficulty fully
understanding its contemporary behavior.
Marketers need to be responsive in order to understand the effects that geography
has on countries ability to supply needs, transport products, and impact the
economy. Moreover countrys economic growth and ability to trade is also affected
by the physical barriers.

Q13. What is meant by Resistance to change? Why is it so important for the
marketer to understand the process of acceptance of Innovations? Give an
example of a country which doesnt accept new patterns/styles/innovations
easily.

Resistance to change means that the individual is suspect to new methods, ideas
and products before they are accepted. It is important for the marketer to
understand the process of acceptance of innovations because acceptance of
innovation varies across cultures. It is believed that those innovations most readily
accepted are those holding the greatest interest within the society and those least
disruptive. For e.g. Women in Saudi Arabia are resistant to work in companies.

Q14. What are the strategies to lessen political risks? State any three

Three strategies to lessen political risk are:

a) Joint ventures: Typically less susceptible to political harassment, joint
ventures can be with locals or other third country multinational companies;
the companys financial exposure is limited.
b) Licensing: A strategy that some firms find that eliminates almost all risks is
to license technology for a fee. It can be effective in situations where the
technology is unique and the risk is high.
c) Expanding the investment base: In this strategy, several investors and banks
are included in financing an investment in the host country. This has
advantage of engaging the power of the banks whenever any kind of
government takeover or harassment is threatened.




Q15. Explain the difference between arbitration, litigation and conciliation.

Conciliation: It is a nonbinding agreement between parties to resolve disputes by
asking a third party to mediate differences. The mediator carefully listens to each
party and explores, clarify and discuss the various practical options. The sessions
are private and all conferences between parties and the mediator are confidential.

Arbitration: in arbitration, a disinterested party is involved as referee to determine
the merits of the case and make judgment that both parties agree to honor. The
groups have formal rules for the process and experienced arbitrators to assist.

Litigation: It is a lawsuit in public courts. Companies seek a settlement rather than
a sue as a
Fear of creating a poor image
Loss of confidentiality
High cost and high time required

Q16. What are the traits shared by big emerging markets?

Emerging markets share a number of traits. They
Are all physically large
Have significant populations
Have strong rates of growth]
Are regional economic driver
Represent considerable markets for a wide range of products
Will engender further expansion in neighboring markets
Are of major political importance with their regions
Have undertaken significant programs of economic reform

Q17. What is meant by Diffusion of Innovation? Give one example of this term

Diffusion of innovation is the process by which innovation spreads. Example can be
Apple iphone.

Q18. For effective competition abroad, what things are more important apart
from the product design?

Apart from the product design there are other important things for effective
competition abroad. Those are:
Price, Quality, Package, Style, Brand name and support services

Q19. List the issues, which an e-vendor must be concerned about?

The issues are:
a) Culture: the website and the product must be culturally neutral or adapted
to fit the uniqueness of a market, because culture does matter, it cannot be
forgotten.
b) Adaptation: A website should be translated into the languages of the target
markets. If companies are making a long-term commitment to sales in
another country, web pages should be designed for that market.
c) Local contact: Foreign customers are more likely to visit sites in their own
country and in the local language.
d) Payment: The consumer should be able to use a credit card number by e-
mail
e) Delivery: For companies operating abroad like in U.S, surface postal delivery
of small parcels is most cost effective but takes the longest time.
f) Promotion: If engaging in e-commerce you also need to advertise your
presence and the products or services offered. The company can use
traditional methods such as search engine registration, press releases, local
newsgroups and forums.

Q20. What is meant by Intellectual property? Why is protection of intellectual
property a problem in services industries?

Intellectual property is a brand name, trademark, product, process, design or
formula that provides companies with advantages over their competitors. It is a
problem for service industries to protect as countries seldom have adequate or any
legislation and any laws they do have are extremely difficult to enforce. Moreover
it is very easy to duplicate or pirate software.

Q21. What are the problems faced while gathering the primary data? Explain any
three in detail.

The problems faced while gathering the primary data are:

a) Ability to communicate opinions: The ability to express attitudes and
opinions about a product concept depends on the respondents ability to
recognize the usefulness and value of such a product or concept. It is difficult
for a person to formulate needs, attitudes about goods whose use may not
be understood.
b) Willingness to respond: Culture differences offer the best example for the
unwillingness or the inability of many to respond to research surveys. The
gender related issues also affect willingness to respond.
c) Language and Comprehension: The most universal survey research problem
in foreign countries is the language barrier. Differences in idiom and the
difficulty of exact translation create problems in eliciting the specific
information desired and in interpreting the respondents answers. Equivalent
concepts may not exist in all languages. Literacy poses another problem as
there is low literacy rate the questionnaire are completely useless.

Q22. What are the techniques used by marketers to avoid translation errors when
gathering the primary data?

In order to avoid translation errors, marketers use three different techniques that
are:
1. Back Translation: In this translation, the questionnaire is translated from one
language to another, and then a second party translates it back into the
original. This process pinpoints misinterpretations and misunderstandings
before the reach the public.
2. Parallel Translation: In this translation, more than two translators are used
for the back translation; the results are compared, differences discussed, and
the most appropriate translation selected.
3. De centering: This is a hybrid of back translation. It is a successive process of
translation and retranslation of a questionnaire, each time by a different
translator.
Q23. Japanese do not expect a westerner to bow and to understand the ritual of
bowing among Japanese. Please explain which term reflects best with this
example and why? (Hint: It is one of the following Cultural diaphora, Imperative
and exclusive)
This example reflects the Culture Electives as it relates; to follow the custom in
question is not particularly important but permissible. Bowing in front of Japanese
is not important but doing so may help pave the way to a strong, trusting
relationship.