201710040020

BACHELOR IN BUSINESS ADMINISTRATION

INTERNATIONAL MARKETING
(BBCT1023)
INDIVIDUAL ASSIGNMENT 3

PREPARED FOR
NUR ZAFIRAH BINTI ABDUL RAHIM

PREPARED BY
TAMILARASI A/P PANDIAN 201710040020
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BBCT3023
INTERNATIONAL MARKETING

ASSIGNMENT 3 (INDIVIDUAL ASSIGNMENT) (20%)

Submission date – 31st March 2020

QUESTION 1

List FIVE (5) characteristics of upper middle income countries. (5 marks)

 Rapidly industrializing, less agricultural employment.

 Increasing urbanization.
 Rising wages.
 High literacy rates and advanced education.
 Lower wage costs than advanced countries.

QUESTION 2

Identify FIVE (5) Hofstede’s cultural typology. (5 marks)

 Power distance
 Individualism / Collectivism
 Masculinity
 Uncertainty avoidance
 Long-term orientation
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QUESTION 3

Discuss FOUR (4) global market segmentation. (10

marks)

Global market segmentation defined as the process of identifying specific segments whether
they be country groups or individual consumer groups of potential customers with
homogeneous attributes who are likely to exhibit similar response to a company’s marketing
mix.

 Demographic
It consists of income, age distribution, gender, education and occupation.
For income, income level influences consumers’ wants and determines their buying
power. For example, housing, clothing, automobiles and utility are among the many
markets segmented by income.
For age distribution, different people with different age have various tastes. For
example, most music CDs, Pepsi, Coke, many movies and the Honda fit are targeted
toward teenagers under 25 years old. In contrast, most medical products, vacation
homes, fine jewellery and denture products are targeted for people 50 years old and
up. For gender, it focussing on the needs and wants of the gender. For example,
companies may offer product lines for both genders such as Nike and Levi Strauss.
 Psychographic
It grouping people according to attitudes, values and lifestyles. For attitudes and
values, this holds to a traditional attitudes and values and cautious about change or
innovation, typically in relations to politics or religion. For lifestyles, it is the state of
having a great deal of money, higher social class or status.
 Behavioural Characteristics
Behaviour segmentations focuses on whether or not people buy and use a product as
well as how often and how much they use or consume. Consumers can be categorized
in terms of usage rates such as heavy, medium, light and non-user. Consumers also
can be segmented according to user status such as potential users, non-users, ex-users,
regulars, first-timers and users of competitors’ products.
 Benefits Gained
Benefits segmentation focuses on the value equation that is (Value = Benefits/Price).
Based on the understanding the problems a product solves, the benefit it offers or the
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issue it addresses. Marketers of health and beauty aids us benefit segmentation. For
example, many toothpaste brands are straightforward cavity fighters. However, as
consumers become more concerned about whitening, sensitive teeth, gum disease and
other oral care issues. So the marketers are developing new toothpaste brands suited
to the different sets of perceived needs.

QUESTION 4

Explain FOUR (4) management orientations. (10 marks)

Management orientations is focussing on various techniques to create, produce and market

the products to customers. The management usually focuses on designing strategies that will
build profitable relationships with targeted consumers.

 Ethnocentric Orientation
It is the belief which considers one’s own culture as superior to others. The firm or its
managers are so obsessed with the belief that the marketing strategy which has
worked in the domestic market would also work in the international markets.
Ethnocentric companies ignore the environmental differences between markets.
 Polycentric Orientation
Polycentric approach is highly market-orientation. It is based on the belief that
substantial differences exist among various markets. Each market is considered
unique in terms of its market environment such as political, cultural, legal, economic,
consumer behaviour and market structure. The decentralization of marketing activities
is highest in polycentric orientation.
 Regiocentric Orientation
A firm treats a region as a uniform market segment and adapts a similar marketing
strategy within the region but not across the region. Depending upon the convergence
of market behaviour on the basis of geographical regions, a similar marketing strategy
is used. For example, a European company that focuses its attention on the EU or
Europe is regiocentric.
 Geocentric Orientation
The geocentric approach considers the whole world as a single market and attempts to
formulate integrated marketing strategies. A geocentric orientation identifies
similarities between various markets and formulates a uniform marketing strategy.
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The companies that follow the geocentric approach strive to analyse and manage the
marketing strategy with integrated marketing.

QUESTION 5

Elaborate FIVE (5) international entry strategies. (10

marks)

 Exporting
Most nations encourage exports. Government programs that support exports is tax
incentives, subsidies, governmental assistance and free trade zones. Exports can be
handled as a part-time activity performed by domestic employees. Next exports can
be handled through an export department within an international division. Lastly,
exports can also handle through an export partner and export development.
 Importing
Most nations restricts import. Governmental actions to discourage imports and block
market access through tariffs and non-tariff barriers. Tariffs is a tax imposed on the
imported goods. Non-tariff barriers consists of two such as quota and customer
procedures. Quota is a government imposed limit or restrictions on the number of
product that can be imported. Customer procedures is the host country administers in
a restrictive way that makes application difficult and expensive.
 Licensing
Licensing is a contractual arrangement whereby one company (the licensor) makes a
legally protected asset available to another company (the licensee) in exchange for
royalties, license fees or other form of compensation. The licensed asset may be a
brand name, company name, patent, trade secret or product formulation. Example of
companies that using licensing is Ralph Lauren, Disney and Coca-Cola.
 Franchising
Contract between a parent company (franchisor) and a local firm (franchisee) that
allows the franchisee to operate business developed by the franchisor in return for a
fee and adherence to franchise-wide policies. To be successful, the firm must offer
unique products or prepositions and a high degree of standardization. Franchising has
great appeal to local entrepreneurs anxious to learn and apply western style marketing
techniques.
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 Foreign Direct Investment (FDI)

Company enters the host country through FDI, invest their money, establish
manufacturing and marketing facilities through full ownership and control. It is also
called as Greenfield strategy by refers to starting the company from scratch in host
country. Advantages of FDI is earning high profit and protect technology and patents.