Mark Scheme

6UDIM Developing International Markets

December 2019

General Marking Guidance

• All candidates must receive the same treatment. Markers must mark the first candidate in exactly
the same way as they mark the last.

• Mark schemes should be applied positively. Candidates must be rewarded for what they have
shown they can do rather than penalised for omissions.

• Markers should mark according to the mark scheme and not their own perception of where the
grade boundaries may lie.

• There is no ceiling on achievement. All marks on the mark scheme should be used appropriately.

• All the marks on the mark scheme are designed to be awarded. Markers should always award full
marks if deserved, i.e. if the answer matches the mark scheme. Markers should also be prepared to
award zero marks if the candidate’s response is not worthy of credit according to the mark
scheme.

• Where some judgement is required, mark schemes will provide the principles by which marks will
be awarded and exemplification may be limited.

• When markers are in doubt regarding the application of the mark scheme to a candidate’s
response, their Examiner must be consulted.

• Crossed-out work should be marked UNLESS the candidate has replaced it with an alternative
response.

6UDIM1219 © ABE 2019 1

 Section A – 25 marks
(Short answer questions: 1 x 5 marks + 2 x 10 marks each = 25 marks total)

1 (5 marks)
Discuss the differences between local, global and “glocal” businesses.

Q Indicative Content Total

1 Local Business: a local business is a business that is in your area, like a music shop or a small
market/ Technically a LOCAL business is one that is located in only one country and has few
locations (as distinct from a DOMESTIC business is one that is located in only one country but
has many locations (think NYC, LA, and Denver) / Local business also means a business that
focuses primarily on their area's market, and thus, is only limited to products and services for their
targeted market area.
Global Business: A global business is an organisation that carries out its business activities
throughout the world. Global business, on the other hand, refers to the exchange of goods and
services around the world / A global business or multinational is a company that operates in most
countries around the world. While the company may have its headquarters and main operations
centred in one country, its products and services are used throughout the world. Some examples
of global businesses include the Coca-Cola company and Sony Electronics.
Glocal Business: reflecting or characterised by both local and global considerations – the internet
transforms all business into glocal / the interconnection of global and local issues, factors /
combining global ideas or forces with local ones / tailoring of globally available products and
services to local markets.

Other relevant material should be credited. 5

Mark Allocation Guidance
Up to 3 marks can be allocated for identifying / defining local, global and glocal business (1 mark for each).
A further 2 marks can be allocated for extending the discussion and clearly identifying differences.

6UDIM1219 © ABE 2019 2

2 (10 marks)
Critically analyse the secondary and primary data sources available for evaluating the international competitive
landscape.

Q Indicative Content Total

2 Answers need to cover sources from both:
- secondary data collection (sources: e.g. online databases / company reports / market
studies such as Mintel / audit of company websites; advantages: e.g. time-saving / cost-
effective; limitations: e.g. out-of-date / information unavailable or inaccessible / need to
verify or validate)
- and primary data collection techniques such as survey methods either qualitative or
quantitative to gain market perspectives from customers and non-customers
Some answers may consider frameworks such as RACE (reach, act, convert, engage) or even
PESTEL or Porter’s 5 Forces as appropriate for organising the data obtained from secondary and
primary data sources / gathering the information using secondary and primary data sources that
can be then used within these frameworks.
A focus on evaluating the competitive landscape internationally is required throughout.

A basic pass would include:

• A simple identification and basic explanation of secondary and primary data sources
• An appreciation of the rationale for why the different sources are suitable for evaluating
the international competitive landscape
• Few examples are used

A better answer would include:

• A detailed explanation of secondary and primary data sources
• Additionally, evidence of understanding how both data sources differ in terms of
evaluating the international competitive landscape
• Well-chosen and appropriate examples are used

Other relevant material should be credited. 10

Mark Allocation Guidance
Up to 4 marks can be allocated for a basic identification of secondary and primary data sources linked to
evaluating an international competitive landscape.
A further 4 marks can be allocated for a more detailed discussion of the data sources based on a comparison
of their relative strengths / advantages and weaknesses / limitations.
2 marks are available for the use of examples related to an international competitive landscape.

6UDIM1219 © ABE 2019 3

3 (10 marks)
Critically discuss the influence of non-tariff barriers on international product management.

Q Indicative Content Total

3 A wide range of non-tariff barriers (NTB) can be mentioned namely: import bans; general or
product-specific quotas; complex/discriminatory Rules of Origin; quality conditions imposed by
the importing country on the exporting countries; unjustified Sanitary and Phyto-sanitary
conditions; unreasonable/unjustified packaging, labelling, product standard; complex regulatory
environment; determination of eligibility of an exporting country by the importing country;
determination of eligibility of an exporting establishment (firm, company) by the importing
country; additional trade documents like Certificate of Origin, Certificate of Authenticity, etc.;
occupational safety and health regulation; employment law; import licenses; state subsidies,
procurement, trading, state ownership;
export subsidies; fixation of a minimum import price; product classification; quota shares;
multiplicity and Controls of Foreign exchange market; inadequate infrastructure; "Buy national"
policy; over-valued currency; restrictive licenses; seasonal import regimes; corrupt and/or lengthy
customs procedures.
An acknowledgment is required of identifying how these NTB can influence international product
management in terms of: decisions and business objectives e.g. standardisation and adaptation:
deciding the level of control required; identifying levels of risk companies are prepared to take
and evaluating the costs companies can afford to bear

Other relevant material should be credited. 10

Mark Allocation Guidance
Up to 4 marks can be allocated for a basic identification of NTB.
A further 6 marks can be allocated for a more detailed discussion of how NTB can influence international
product management decisions.

6UDIM1219 © ABE 2019 4

 Section B – 75 marks
(Essay questions: 3 out of 4 x 25 marks each = 75 marks total)

4 (25 marks)
Critically discuss how macroenvironmental factors might impact the market planning process for a global
business. Use examples to support your answer.

Q Indicative content Total

4 A consideration of all the external uncontrollable forces that affect decision-making, strategies
and performance of an organisation often shown through use of PEST and/or Porter’s 5 Forces
(to acknowledge supply chain issues, industry dynamics – competition and buyers / consumers).

Many varied frameworks can be used to cover the market planning process (but all should
consider a global business):
- structural issues such as role of corporate centre in relation to all the strategic business
units / subsidiaries within all the markets / countries in which the company operates
globally / top-down vs. bottom-up planning; planning cycles; complexity / number of
plans required)
- systems used (resources – financial, people, knowledge or expertise in-house or
devolved externally)
More straightforwardly, a global market planning process needs to address: situation analysis;
corporate objectives; resources and capabilities as stated in the ABE syllabus.

Additionally, an understanding of the outcome / results of the market planning process namely
the components of a market plan for a global business is required: executive summary (business
overview – describing the company, the projected market and the intended product or service.
Include financial results, such as capital growth and profits); market description (market size,
share positioning of products, and competition); operations and management issues (supply,
production, marketing, distribution); organisational structure (management model).

Other relevant material should be credited. 25

Level Mark Descriptor
0 0 No rewardable material
1 1-9 • Limited knowledge and understanding of macroenvironmental factors
• Limited knowledge and understanding of the market planning process for a global business
• Irrelevant concepts or frameworks used
• Lack of, limited or incomplete knowledge and understanding of how macroenvironmental
factors might influence market planning for a global business
• Errors are present
• No or very limited evaluation or analysis
• Descriptive content
• Unsupported arguments and conclusions
• No / few examples used
2 10-14 • Adequate knowledge and understanding shown of macroenvironmental factors
• Adequate knowledge and understanding shown of the market planning process for a global
business
• Some application of how macroenvironmental factors might influence market planning for a
global business in the short and long-term
• Some content is descriptive; arguments and conclusions are made but often lack supporting
material or justification using examples

6UDIM1219 © ABE 2019 5

 3 15-18 • Sound knowledge and understanding is demonstrated
• Appropriate use of related concepts and theories and applied to how some selected
macroenvironmental factors might influence market planning for a global business
• Some evidence of evaluation, analysis and an attempt at independent thinking
• Arguments contain some detail and overall are appropriately supported
• There is an attempt to justify points made using appropriate examples

4 19-25 • Extensive knowledge and understanding clearly shown and demonstrated of how a range of
macroenvironmental factors might influence market planning and the development of
market plans for a global business
• Clear evidence of evaluation, analysis and independent thinking shown
• In-depth understanding and application of concepts and theories
• Clear and consistent evaluation throughout answer
• Arguments are detailed and conclusions supported with well-chosen examples

6UDIM1219 © ABE 2019 6

5 (25 marks)
Critically evaluate how a large company might use technology to facilitate international market entry and
collaboration across national borders with suppliers (and partners). Use examples to support your answer.

Q Indicative content Total

5 Collaboration with suppliers (and partners) working across national borders can include any of
the various market entry modes where an intermediary is used such as (trading companies / co-
operation strategies – joint ventures, strategic alliance) all of which tend to be based on
contractual agreements. This can also extend to working with suppliers and distributors (any of
the intermediaries shown in Porter’s value chain analysis) that a large company may use.
The focus is on a large company and, as such, an acknowledgement of the complexity of
collaborative arrangements would be expected and must cover more than one country (across
national borders) i.e. have an international component within the answer.

Some details on how these collaborative arrangements may function both strategically (levels of
involvement from transactional to long-term relationships / networks) and operationally
including the management issues often linked to monitoring and evaluating performance.
The use of technology can include digital communication tools (notably social media and the
internet) but can also be extended into self-driving cars, drones, software and other
technological advances.

Issues around the value of technology in enabling technical effectiveness and efficiency perhaps
related to infrastructure availability and compatibility may be considered as well as ethical
considerations. Hence, how technology can be used both within the company / business as well
as externally in the marketplace to help manage marketing activities internationally needs to be
addressed. Some discussion of online marketing issues (transactional social media marketing /
e-commerce/ e-business) can also be included.

Other relevant material should be credited. 25

Level Mark Descriptor
0 0 No rewardable material
1 1-9 • Lack of, limited or incomplete knowledge and understanding of international market
entry through collaboration across national borders with suppliers (and partners)
• Lack of understanding in assessment of technology as a facilitator in international
market entry and collaboration across national borders
• Descriptive / narrative driven content
• Unsupported arguments and conclusions
• No / few examples used

2 10-14 • Adequate knowledge and understanding of international market entry and

collaboration across national borders with suppliers (and partners)
• Adequate understanding of technology facilitating international market entry and/or
collaborative working / managing marketing activities across national borders /
internationally
• Some content is descriptive; arguments and conclusions are made but often lack
supporting material or justification
• Few carefully chosen / relevant examples used

3 15-18 • Sound knowledge and understanding of international market entry through

collaboration across national borders with suppliers (and partners)
6UDIM1219 © ABE 2019 7
 • Sound understanding of technology and its use in facilitating / managing international
market entry and collaborative working across national borders / international
marketing activities and what influences these in the short and long-term
• Arguments contain some detail and overall are appropriately supported
• There is an attempt to justify points made using well-chosen & relevant examples

4 19-25 • Extensive knowledge and understanding of international market entry through

collaboration across national borders with suppliers (and partners) including in-depth
application
• Extensive understanding of assessing technology and how it facilitates international
market entry and collaborative working across national borders / managing
international marketing activities based on a thorough understanding of a range of
issues both from company and market perspectives
• Clear and consistent evaluation throughout answer
• Arguments are detailed and conclusions supported with sound examples

6UDIM1219 © ABE 2019 8

6 (25 marks)
Critically analyse the challenges (and how to overcome them) of developing a pricing strategy in a global context
for a manufacturing business. Use examples to support your answer.

Q Indicative content Total

6 A range of issues will need to be considered in developing a pricing strategy in a global context
and the terminology and this range of issues will be varied:
ABE syllabus refers to export costs, economies of scale, price positioning, production costs and
location.
Other texts mention: Market positioning of product or service via price in the target market, e.g.
high price to signal high value and exclusivity; Membership of tariff union such as the European
Union: check all aspects of rules surrounding products or services originating in the union versus
those imported from outside the union; Prices already operating in home country where
relevant; Currency exchange rates with other countries, both actual and potential; Costs of tariff
and other barriers; Any variation in local taxes, including value added tax; Prices of similar
products already available in the target country; Trade discounts and other special deals already
operating in the target country, e.g. regular discounts off the manufacturer’s list price for
reaching volume targets; Distributor mark-up already operating in the target country, i.e. the
difference between the distributor’s price and the customer’s price; For multinationals, the prices
at which goods are transferred between subsidiaries – called ‘transfer pricing’; Availability of
web-based selling structures and distributors both to reduce selling costs and to promote
goods; Possibility of parallel trade pricing, i.e. goods imported from low-tax country into parallel
country with higher taxes; Reaction of current competitors via price to new entrants.

The structure and strategy of the manufacturing business must be acknowledged / context used
to clearly indicate that the choice of a strategy is primarily dependent upon: corporate goals and
objectives / brand positioning; costs; target market(s) / customer characteristics & bargaining
power/ demand; intensity of inter-firm rivalry / competition; phase of product life cycle / other
elements of the marketing mix; legislation in the market.
Hence the challenges can be firm-specific or market dependent.
Some suggestions for how to overcome the challenges analysed is required and will relate
specifically to the challenge considered. Mention may be made of: building relationships and
networks to take a long-term view and allow for some protection against market volatility; using
financial measures such as Forex to guard against currency / exchange rate difficulties; keeping
up-to-date on compliance and using due diligence for all legal, tax and finance issues;
mitigating against risk through careful monitoring and control procedures; using marketing
intelligence / research to track consumer trends.

Other relevant material should be credited. 25

Level Mark Descriptor
0 0 No rewardable material
1 1-9 • Limited knowledge and understanding of the considerations in developing pricing strategy
in a global context
• Lack of ability to apply considerations to a relevant context (a manufacturing business)
• Minimal comment on challenges encountered and/or how to overcome these challenges
• Irrelevant concepts or frameworks used
• Errors are present
• No or very limited evaluation or analysis
• Descriptive content
6UDIM1219 © ABE 2019 9
 • Unsupported arguments and conclusions

2 10-14 • Adequate knowledge and understanding shown of the considerations in developing pricing
strategy in a global context
• Some application of considerations to relevant context (a manufacturing business)
• Comment on challenges encountered and/or how to overcome these challenges
• Some content is descriptive; arguments and conclusions are made but often lack supporting
material or justification

3 15-18 • Sound knowledge and understanding of the considerations in developing pricing strategy in
a global context is demonstrated
• Appropriate use of related concepts and theories and applied to a relevant context (a
manufacturing business)
• Some evidence of evaluation of challenges encountered and how to overcome these
challenges based on analysis and an attempt at independent thinking is shown
• Arguments contain some detail and overall are appropriately supported
• There is an attempt to justify points made using examples

4 19-25 • Extensive knowledge and understanding of the considerations in developing pricing strategy
in a global context is clearly shown and demonstrated
• Clear evidence of evaluation, analysis and independent thinking shown
• In-depth understanding and application of concepts and theories to a relevant context (a
manufacturing business)
• Clear and consistent evaluation of challenges encountered and how to overcome these
challenges throughout answer
• Arguments are detailed and conclusions supported

6UDIM1219 © ABE 2019 10

7 (25 marks)
Millers Oils is a very successful global distributor of natural essential oils. The board of directors believes it is now
time to launch a new branded product positioned at the high-end consumer market but is uncertain on which
country market to enter.
a. Analyse the key considerations for choosing which country market to enter. (15 marks)
b. Evaluate the different approaches available to Millers Oils for branding its products internationally.
(10 marks)

Q Indicative content Total

7a The key considerations for deciding which country market to enter will include;
- Using research to identify and screen countries based on market feasibility issues such as
options for market entry and market potential (demand / market size / growth trends)
- Determine market attractiveness based on selection criteria such as economic, socio-
cultural, political-legal factors and competition
- Evaluating capability of company based on audit of resources and competencies
(competitive advantages in terms of market knowledge, technology, portfolio of
products, reliable partners and other relevant parameters)
- Strategic considerations notably in terms of risk
A range of considerations may be given, and relevant material should be credited.
Some contextualization is also required: Millers Oils is a very successful global distributor of
natural essential oils and the fact that Millers Oils is intending to launch a new branded product
positioned at the high-end consumer market must be appreciated.
15
Other relevant material should be credited.
Level Mark Descriptor
0 0 No rewardable material
1 1-6 • Limited knowledge and understanding of the key considerations for choosing which
country market to enter
• Irrelevant concepts or frameworks used
• Lack of ability to apply concepts
• Errors are present
• No or very limited evaluation
• Descriptive content
• Unsupported arguments and conclusions
• No / limited use of context (Millers Oils is a very successful global distributor of natural
essential oils and the fact that Millers Oils is intending to launch a new branded product
positioned at the high-end consumer market)
2 7-11 • Adequate knowledge and understanding shown of the key considerations for choosing
which country market to enter
• Some application of theory to relevant context
• Some content is descriptive; arguments and conclusions are made with good justification
3 12-15 • Sound knowledge and understanding demonstrated of the key considerations for
choosing which country market to enter
• Appropriate use of related concepts and theories and applied
• Clear evidence of evaluation, analysis and an attempt at independent thinking related to
context
• Arguments contain detail and overall, are appropriately supported
• There are justified points using the context

6UDIM1219 © ABE 2019 11

 7b There are several different ways in which companies can brand internationally:
- Corporate (or company) brand (i.e. Millers Oils on its own or use this as the umbrella brand
attached to another name)
- ‘New’ brand (range or individual)
- Modified / Endorsed brand (work together with an established brand in any sector e.g. Millers
Oils by ‘well-known celebrity’ / ‘high-end retailer’)
Some appreciation of high-end positioning is needed (linked to STP marketing internationally).
The evaluation may also consider a range of issues such as: Company objectives and expectations
relating to the size and value of anticipated business; Size and financial resources of the company;
Existing overseas involvement and experience of international operations; Skills, abilities and attitudes of
company management to international marketing communications and technology; Nature of any
country-specific communication technology infrastructure; Nature of any country-specific barriers to
trade, e.g. tariffs on communication; Any area of competitive advantage based around marketing
communication; Nature of the product / service; Timing (in relation to competitive environment)

A basic Pass would include:

• A simple identification and basic explanation of some of one or two different approaches available to
Millers Oils for branding its products internationally
• Very limited, if any, justification.

A better answer would include:

• A detailed explanation of the different approaches available to Millers Oils for branding its new
products internationally including an explanation of the advantages and disadvantages and a
justification given for the most appropriate
• Sound justification that is linked to the context (i.e. Millers Oils is a very successful global distributor of
natural essential oils)

Other relevant material should be credited. 10

Mark Allocation Guidance
Up to 4 marks for identification and basic explanation of different approaches available to Millers Oils for
branding its products internationally.
A further 6 marks for detailed evaluation, including an explanation of the advantages and disadvantages of
certain approaches and a justification given for the most appropriate to apply using the context.

6UDIM1219 © ABE 2019 12