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International Marketing

Answer the following questions with the aid of the course notes and articles for further
reading

1. What is the role of Marketing Manager in a modern company? What interactions


does the Marketing Manager have with R&D, Sales, Production and Finance Managers?
Illustrate with examples (3 points)

The Marketing Manager has an important role in the modern company because he
leads a complex process from the beginning to the end. He begins with the
researching and reporting on external opportunities, the understanding current and
potential customers, the developing the marketing strategy and plan, the
management of the marketing mix, managing agencies and finally measuring the
success.
The marketing manager needs to coordinate with the sales manager in order to know
the target customers, the selling price, the product training and the sales lead; the
marketing manager needs to know the sales forecast, the customer feedback and the
competitor actions. The Marketing Manager needs also to coordinate with the R&D
Manager to give data about new offer roadmap, the product specs and what the
competitor offer; the R&D Manager informs the Marketing Manager about the technical
feasibility and the product development cost. The Marketing Manager has to contact
the Production Manager to know the manufacturing capacity and product quality
issues; the Production Manager receives the volume forecast and the perceived
product quality. The Marketing Manager has a relationship with the financial Manager
because they trade information about the selling price, the target, the sales and
margin, the marketing budget and the marketing cost.
As an example, the Marketing Manager needs to discuss the financial part of his
marketing project with the financial manager to know if its feasible.
2. How would you define the Business Development role in a modern company? What
are the typical tasks of the Business Development Manager in a company working in
B2B environment? (2 points)

Business developers need to have a good technical background and some experience
in marketing or sales. The business developer has to find potential new customers and
turn them into clients, call on potential customers to make presentations in support of
sales and attend the industry conferences and events to represent the company
The business development manager has to push the selling of a new product in the
market or an old product in a new market. The business development manager must
be aware of the other companies strategy, such as their marketing plans and new
products. In addition, the developer must have an in-depth knowledge of his
company's own products, marketing strategies and key demographics.
Other Duties
The company may give a business developer responsibility that come close to
marketing and advertising. For example, the company may ask the developer to help
the business create new products and market them as well. A business developer
might also have to find new clients, negotiate with them and close those deals.
Variation in Responsibilities
The actual job responsibilities of a business developer depend on the needs of the
company. In a large company, for instance, a developer may focus mostly on acquiring
smaller companies that could take away market share. At a smaller company, the
business development manager may spend most of his time obtaining corporate
accounts and heading up product development projects.

3. Describe the difference between standard product, customized to order


product and solutions offers. What challenges does a Marketing Manager face in
each case? (1 point)

The standard product is the one which the company offers in the market without any
option in modifying the product, so its a unique model of the product that is for sell,
the standardized products are a good option for a company if it produces in high
quantities so it benefices from the economy of scales; Ford was producing a standard
product in its debut with the T Model. The customized to order product is the one that
has a modification option so the customer can change some defined characteristic
within a list of choices, most of the automobile brands are doing this kind of product
because its allow them to sell the option with high value. The solutions are the
products that are entirely customable, the client just order what he wants and the
seller needs to get the product as ordered, this kind of product is expensive because
the company invoice all the costs on one product.

4. What is the process followed by a Marketing Manager to develop a Marketing Plan?


(2 points)

To develop a Marketing Plan the Marketing Manager has to begin with a market
analysis in order to know about the markets economy and trends, the business
performance in the market and quantify the opportunities. Secondly he has to provide
a company capability assessment with the use of some tools like the SWOT analysis
and a competency mapping. The Marketing Manager has to set the company strategic
objectives.
This plan has to be a long term ambition with one year detailed corporate marketing
plan; the Marketing Manager has to set an operational plan in the target countries with
an integration of the country in a global context. Finally, the Marketing Manager needs
critical performance indicators to measure the performance of the marketing plan in
the targeted market.

5. How does Greiners model explain company growth stages? Is Greiners model
applicable to all types of companies? (2 points)

The Greiners model explains that the company faces some crisis due to its growth
process, each time the company wants to go from one size to a bigger one it faces a
problem in this transition because the organization that was before established fitted
the size but from the moment that the size become bigger enough to change the
organization the crisis occurs. The model has 6 phases, the leadership crisis where the
founder is the leader, but as the company grows he is pulled more and more in
different directions until he is unable to fulfil all his duties, the autonomy crisis is the
moment when the managers begin to proceed in their work by favoring the domain
where they excel the most to have some recognition, the control crisis begins when
the delegation doesnt go as well as intended due to the lack of communication and
the lack of knowledge from the head management about the situation in the bottom of
the organization, the red tape crisis occurs when the company is big enough that it
needs more offices to coordinate and follow up the progression and its even more
problematic when the audit and consulting cabinet enter the company and the offices
hide documents from the auditors , the last one is growth crisis where the company is
facing a strategy problem on how to grow and to which size.
The model is not applicable to all the companies because the structure of a company
can change in another way than the one described by the model, some companies
change the organization without falling in a crisis or just skip a crisis to fall on another
one.

6- Which are the global institutions created during the 1950s to foster World trade?
What were their intended objectives? How effective have they been so far in
achieving their goals?

The international trade is managed by different institutions that control and insure the
good functioning of the international trade market.
The global institutions created after the second World War to foster world trade are the
World Bank (USA), International Monetary Fund (EU) and the World Trade Organization.
The main mission of these organizations is to make the international trade progress
through the worldwide cooperation.
NAFTA (North America Free Trading Agreement) and APEC in Asia Pacific. The different
policies in the countries members is a hard challenge for these organizations to
improve the efficiency of the Global Trading. The globalization is the key but each
country need to protect its local market to keep its competition with the others
The Global institutions have a big impact to enhance political agreements to build
Economic unions with common currency or common market like Europe CM. These
organizations have a big impact because they play the role of final arbitrators in trade
disputes and organize the resources around the world to impact the global economy
and the monetary cooperations.

7- What marketing strategies could be developed by an SME wishing to develop


internationally? What are common causes of commercial failure for SMEs attempting
to go to international markets?

For SME wishing to develop internationally, it has to understand the market very well
through a market analysis in all its aspect to have all the data necessary to make a
good strategy. The infrastructure is a real challenge for the SMEs in other countries in
addition to the lack of data which is crucial to enter a new market. For the majority of
SMEs, the main problem is lack of growth as they focus on a domestic and/or limited
market, they can also find other kind of problems like over dependence on one product
specially when local competitors can copy the offer for less price or lack access to
finance.
The SMEs should develop strategies to sell domestically produced goods with high
value abroad on opportunities basis or find direct channels to global offering platform
on internet using the online payment. The adopted strategy depends basically on
financial and relational resources for the SMEs in all countries, which is an obstacle for
the majority who prefers to adopt opportunistic export instead targeted marketing too
valid their MVP and activity success specially for countries from LDC.
The country can take a competitive advantage of it domestically products and services
(differentiated offer to target customer in selected countries) and focus on integrate it
SMEs to take advantage of agreements and meet the market need with strong
relationship with suppliers and find the ability to exploit the unique value of their offer.

8- What marketing strategies could be developed by MNCs wishing to leverage their


existing international presence as a source of competitive advantage? Who is involved
in the definition of the marketing mix of an individual country in a large MNC?

Those kind of corporation with a big potential of growth and evolution are one of the
drivers of global trade because of leveraging global presence by creating a
competitive advantage. Most MNCs depend on few key countries and operate
principally in the big industrial sectors (Automotive, pharmaceutical, electrical and
electronic or computers) where R&D is the most valuable element of the company
management process so they can drive the globalization phenomena.
Multinational companies have large foreign economic, commercial and political assets
and who expecting to leverage their existing international presence, their key is to
target the new markets or reach new opportunities with one global marketing plan if
the product in the case of a standard product with the same channels of distribution,
or multi domestic strategies because of many barriers like developing the offers and
expecting customers to change their habits which is a risky option for MNC who
prefers to focus on reducing costs with a desire for growth.

According to Greiners Growth Model, the big sized companies should adopt strategies
of acquisition, collaboration or alliance depending on the international environment.
International strategy is generally adopted in a regional perimeter to adapt the offer
differently to each country. The Product depends on the Place and can be a starting
point to define both price and promotion depending on geography, product strength
and potential consumption. Example: Most MNCs are from developed countries but
MNCs from emerging countries are going fast basically because of high level of need
for different products that are not adapted in the majority of time.

9- How does the Uppsala internationalization model explains company expansion


outside domestic markets? Out the 7 case studies selected for this course (Avigilon, Li
Ning, Nike, Li & Fung, Powell, Salon, Haier) indicate in which cases the Uppsala model
correctly describes the internationalization process
In behavioral models dealing with the internationalization process, such as the Uppsala
Internationalization Process Model, knowledge and learning have a profound impact on
how the firm is seen to approach foreign markets. The Uppsala IM distinguishes four
different steps of entering a new international market starting by No regular exports
activities, to export via independent representative, to establishment of a foreign sales
subsidiaries ending with foreign production and manufacturing.

The Uppsala model describes the internationalization process of different firms


according to a global observation of the main steps that establish any kind of
corporate internationalization process.

In the 7 case studies, the Uppsala model correctly describes the steps that some of
them took to approach foreign markets in EU Asia or Africa
because of the positive correlation between market knowledge and commitment
decisions of companies like Nike, Li & Fung, Haier and Avignon. The cases describe the
cycle of those MNCs when we observe a sequential development of market activities
(China for example) and its positive correlation to market commitment. The core is
that increased market knowledge for Nike will lead to increased market commitment,
and vice versa.

10- What are the advantages and disadvantages of global offer standardization?
Provide two examples of global offers. What are the main barriers to the development
of standard global offers?
GOS has many advantage on the international market. The development of technology
and quicker communication had made the world a small village when everybody can
use the tool but differently to organize or communicate or promote. For companies, its
an advantage for those who reach opportunities around the world. With a global offer,
the MNC can save both money and time to concentrate on other effective channels of
communication or R&D when they can reach other communities and become a
responsible company (International brand: Ford, Apple, Shell) since customized
offers and adapted marketing strategies in each country or region are unnecessary.

In another hand, Global Offer standardization have disadvantages because


every country depends on local market condition and exchange rate to protect it
economy or
of many barriers that faces the multinationals from moving to a global marketing plan
and adopt multi domestic strategies, adapted to each country because of behavioral,
social, economic, cultural or financial. In Africa, Chinese MNCs are the first ones to
target the public market, but the plan still adapted differently because of slow
harmonization of standards.

MNCs got different strategic options to turn international presence into competitive
advantage, but some marketing plans depends on the environment specially in the
B2B market for Construction industries, IT industries or Advertising companies or B2C
markets when the client is demanding or when the product is intimately related to the
place, so the customer.

11.What are the type of export contract defined by Incoterms? What are the
exporters levels of responsibility for the delivery of goods to the buyer in each type of
contract? (1 point)

The Incoterms define the tasks, costs, and risks linked with the shipment and delivery
of the merchandise. The Incoterms manage and define respective obligations, costs,
and risks that are involved in the shipment of the merchandise. The Incoterms could
be freely negotiated between the buyer and the seller.

In each type of the Incoterms there are the following responsibilities:

- Export customs declaration

- Carriage to port of export

- Unloading of truck in port of exert

- Loading on the ship or airplane in port of export

- Carriage to port of import

- Insurance

- Unloading in port of import

- Loading on truck in port of import

- Carriage to place of destination

- Import customs clearance

- Import duties and taxes

The Incoterm with minimum responsibility for the seller and the maximum one for the
buyer is Ex Works (EXW). The incoterm that engage full responsibility of the seller and
none for the buyer is Delivered Duty Paid (DDP)

12- What are grey markets and why do they develop? Provide 2 examples of grey
markets and explain why they developed. How can Marketing Managers in MNCs
minimize the threat posed by grey markets?

Grey market is the trade of goods through distribution channels that are legal, non-
counterfeit goods sold outside of the manufacturer channels of distribution and which
may have no relationship with the producer of the goods.
Generally, Grey markets are small businesses built by individuals who are not
authorized retailers of the goods being sold. The effect of the international grey
market upon consumers, manufacturers and distributors is very high. The MNC has no
control on the delivery process when the customer is demanding specially when its
related to electronic and automatic products, most valued and expensive exports, and
can be a risk for the branding. An entrepreneur would purchase a product where it
could be bought cheaply from a retail and would legally import it to another country at
higher price due to less offer and high demand or expensive offer of transport from the
manufacturer country. This is one of the biggest challenges that is facing the MNCs in
the international market and can be minimized with signed agreements with retailers
in different countries according to a global strategy. Franchising is also an alternative
for the companies but still limited for specific industries like food industries.