SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY)

(Established under Section 3 of the UGC Act 1956)

Re-accredited by NAAC with ‘A’ grade (3.58/4) Awarded Category – I by UGC

Program: BBA.LLB(H)
Batch: 2018-23
Semester: VI
Course Name: Basics of International Marketing
PRN: 18010126013
Name of the Student: Arindam Arav Prakash

INSTRUCTIONS
1. Mention your details only in the space provided above. If any other details
name, contact detail etc. are written anywhere else in the answer script it will
be treated as adoption of unfair means.
2. Use diagrams and sketches wherever required.
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by the examination department and all submissions must be in the word
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4. Submission will not be accepted beyond the deadline given by the
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spacing 1.5; Justified; Page size: A4; No borders
6. Write your answer in your own language and do not copy paste from any
source. Read the question carefully and write your answer fulfilling the
requirements of the question.
7. If the students copy from each other’s assignment, it will be considered as
unfair means case and performance will be treated as null and void for the
entire examination.
1. Marketing is a very important part of any organization. It is essentially the process of
production, promotion, pricing and distribution of products and services, with the aim of
fulfilling the needs of customers, while also attaining the objectives of the organization.
Domestic marketing refers to the marketing activities carried out by a company within its
national borders. International marketing extends to different countries across the world, i.e.
the marketing activities are carried out at a global level. The world is rapidly shrinking and
the borders between countries are slowly diminishing, which is why most companies are not
only concentrating on the local market, but are also trying to cater to customers from all over
the world. This is why it is important to comprehend both domestic marketing and
international marketing. The marketing activities in domestic marketing are restricted to the
local boundaries, and a limited number of customers are served. Domestic marketing has
several advantages. It is more convenient to carry out as it has to deal with just a single form
of competition and economic issues. No communication barriers are faced as the local
customers can easily comprehend the message of the company. In addition, the company can
easily acquire and understand data regarding the trends of the local market and the
requirements, tastes and preferences of consumers. This allows companies to take decisions
and formulate marketing strategies in a more effective manner. There are also lower risks in
domestic marketing and limited investments are required. However, the scope of local
markets is quite narrow and growth is limited. Hence, many companies aim to expand their
operations to the international market. International marketing is the kind of marketing that
focuses on a wider customer base, one that extends the national boundaries. Customers from
all over the world are targeted in international marketing. This kind of marketing is quite
complicated and requires significant financial investments.There are different laws and
regulations pertaining to business in each country, and it is important for a country seeking to
gain entry into a foreign market to first become aware of these rules. The requirements and
preference of customers may also be different; hence, the marketing strategies should be
developed according to these different needs and requirements.Companies need to put in
more time and effort to carry out international marketing. In addition, it is also much more
risky than domestic marketing. The international market is quite uncertain and companies
should always be prepared to handle any changes that take place suddenly. With domestic
marketing, you are promoting your products/services to people with one language, one
culture, one physical (geographic) extent, one currency, one legal framework, one set of
measurements, all of which you deeply understand because this is not just your customers’
country, it’s your country too.
With international marketing, the process is much more complex as you are not just doing the
above, you are dealing with multiple product standards & certification, multiple voltages and
plug shapes, multiple legal jurisdictions (and therefore multiple obligatory warranty and
“goods return” obligations, multiple cultures, multiple currencies, multiple systems of
weights and measures, multiple time zones, multiple media (including social media)
platforms, multiple local habits like what times of day you can do business, multiple religions
(which impacts everything from holidays to the cultural significance of colours), multiple
levels of literacy (in multiple languages). And more importantly, you - the marketing
professional - are poorly informed about all those places and all those details, and worse, you
probably haven’t realised how many of your subconscious business assumptions need to be
unlearned, because they are entirely local quirky customs that only apply in your particular
domestic culture and market. For example, the main products of McDonald’s outlet in the
USA is beef related and there are not many chicken or veg items, however since the culture in
India is totally different in respect to beliefs and religion, beef is rarely used in McDonal’s
outlet in India. And the main product is chicken as compared to the USA. In short there are
more rules and regulations that you have to be aware of. There can be cultural and political
differences that you have to take into account. You may even have to figure out subtle
nuances in order to conduct business. A local firm has local problems and situations that
arise. An international firm has more parts to it that you will have to figure out and is much
more complex.

Ans 2.a) EPRG Framework was developed and introduced by Wind, Douglas, and Perlmutter
and focuses on the international marketing operations of the company and the different
attitudes towards the company’s involvement on the front of international marketing
processes and environment. The framework addresses the way the strategic decisions are
made within the company and how the relationships are shaped and maintained between the
headquarters of the company and its subsidiaries. It consists of 4 stages in the international
operations evolution process and the framework states that the business and the staff tend to
operate in one of the four explained ways.

 Ethnocentric Orientation-The companies adopting or working in this way believe that

home country is superior in nature and when they dwell for the opportunities in the
international markets they tend to seek similarities with that of the home country.
 These companies make hardly any adaptations to their products to suit the taste and
requirements of the new market that they are catering to and conduct little research
and study on the international markets. The advantage of this attitude and mindset is
that the company saves the costs of hiring the qualified staff in the international
markets by migrating the staff from the home country. Plus this technique helps in an
affiliated and centralized corporate culture with the synergy of core competencies.
One of the major disadvantages of this mindset is that showcases the cultural short-
sightedness of the company.
 Regiocentric Orientation - The company that follows the Regiocentric approach of the
framework studies the similarities and differences in the world and its various
operating regions and designs the strategies accordingly. The management of the
company figures out the economic, social, cultural, and political similarities between
the native area and overseas region and satisfy the similar needs and demands of the
potential customers. The cultural and regional identity of India, Pakistan, and
Bangladesh is quite similar whereas Norway and Spain that both falls in Europe are
very different in terms of culture, climate, and transport amongst other aspects.
 Geocentric Orientation - The companies following the Geocentric approach of the
EPRG Framework are truly the global players as they display the act and strategy of
‘think global, act local’. They view the entire world as their potential market and take
effective and efficient steps to satiate the needs and demands of the customers. They
recognize the differences and similarities between the native home country and
international markets and blend their ethnocentric and polycentric views working out
a significant strategy for success. Their global strategy is aptly and fully responsive to
the needs and wants of the local customers encouraging global marketing. This
approach tries to find a balance between both global integration and local
responsiveness but there is one main disadvantage to it. The national immigration
laws and policies may put certain limits to its implementation and this approach is
expensive as compared to the polycentrism.
 Polycentric Orientation- The companies following the polycentric approach see each
country unique and exclusive and consider that the businesses are best run locally in
the international markets. The headquarters has a little control over the activities of
each of its subsidiary markets plus there is a little attempt of making any good use of
ideas and practices prevailing in the other markets.This approach lays a strong
groundwork for its every subsidiary to develop its unique marketing and business
 strategies for success and the country’s domestic market is given equal importance.
This approach is best suited for the countries with certain constraints on the front of
finance, political, and culture.As there is no need to send the skilled workforce to the
other countries to maintain the factor of centralization, this approach is less expensive
as compared to the ethnocentric one. However, one disadvantage of this approach is
that it can restrict the career mobility of both local and foreign nationals working in
the company plus reduces the chances of synergy within the firm as a whole.

Ans 2.b) There are a variety of ways in which a company can enter a foreign market. No one
market entry strategy works for all international markets. Direct exporting may be the most
appropriate strategy in one market while in another you may need to set up a joint venture
and in another you may well license your manufacturing. There will be a number of factors
that will influence your choice of strategy, including, but not limited to, tariff rates, the
degree of adaptation of your product required, marketing and transportation costs. While
these factors may well increase your costs it is expected the increase in sales will offset these
costs. The following strategies are the main entry options open to you.

 Direct Exporting - Direct exporting is selling directly into the market you have chosen
using in the first instance you own resources. Many companies, once they have
established a sales program turn to agents and/or distributors to represent them further
in that market. Agents and distributors work closely with you in representing your
interests. They become the face of your company and thus it is important that your
choice of agents and distributors is handled in much the same way you would hire a
key staff person.
 Licensing - Licensing is a relatively sophisticated arrangement where a firm transfers
the rights to the use of a product or service to another firm. It is a particularly useful
strategy if the purchaser of the license has a relatively large market share in the
market you want to enter. Licenses can be for marketing or production. licensing).
 Franchising - Franchising is a typical North American process for rapid market
expansion but it is gaining traction in other parts of the world. Franchising works well
for firms that have a repeatable business model (eg. food outlets) that can be easily
transferred into other markets. Two caveats are required when considering using the
franchise model. The first is that your business model should either be very unique or
 have strong brand recognition that can be utilized internationally and secondly you
may be creating your future competition in your franchisee.
 Partnering - Partnering is almost a necessity when entering foreign markets and in
some parts of the world (e.g. Asia) it may be required. Partnering can take a variety of
forms from a simple co-marketing arrangement to a sophisticated strategic alliance for
manufacturing. Partnering is a particularly useful strategy in those markets where the
culture, both business and social, is substantively different than your own as local
partners bring local market knowledge, contacts and if chosen wisely customers.
 Joint Ventures - Joint ventures are a particular form of partnership that involves the
creation of a third independently managed company. It is the 1+1=3 process. Two
companies agree to work together in a particular market, either geographic or product,
and create a third company to undertake this. Risks and profits are normally shared
equally. The best example of a joint venture is Sony/Ericsson Cell Phone.
 Buying a Company - In some markets buying an existing local company may be the
most appropriate entry strategy. This may be because the company has substantial
market share, are a direct competitor to you or due to government regulations this is
the only option for your firm to enter the market. It is certainly the most costly and
determining the true value of a firm in a foreign market will require substantial due
diligence. On the plus side this entry strategy will immediately provide you the status
of being a local company and you will receive the benefits of local market knowledge,
an established customer base and be treated by the local government as a local firm.
 Piggybacking - Piggybacking is a particularly unique way of entering the international
arena. If you have a particularly interesting and unique product or service that you sell
to large domestic firms that are currently involved in foreign markets you may want to
approach them to see if your product or service can be included in their inventory for
international markets. This reduces your risk and costs because you are essentially
selling domestically and the larger firm is marketing your product or service for you
internationally.
 Turnkey Projects - Turnkey projects are particular to companies that provide services
such as environmental consulting, architecture, construction and engineering. A
turnkey project is where the facility is built from the ground up and turned over to the
client ready to go – turn the key and the plant is operational. This is a very good way
to enter foreign markets as the client is normally a government and often the project is
 being financed by an international financial agency such as the World Bank so the
risk of not being paid is eliminated.
 Greenfield Investments - Greenfield investments require the greatest involvement in
international business. A greenfield investment is where you buy the land, build the
facility and operate the business on an ongoing basis in a foreign market. It is
certainly the most costly and holds the highest risk but some markets may require you
to undertake the cost and risk due to government regulations, transportation costs, and
the ability to access technology or skilled labour.

Ans 3.a) Challenges and issues in Global marketing –

 Global vs local teams - The bigger the brand, the more links in the chain. Global HQs
have historically struggled with rolling out marketing campaigns across multiple
territories. Today we have better technology and communication tools, but also
greater expectations for relevant, local execution. Internal coordination of complex
campaigns across business units and regions remains a key challenge for global
marketers.
 Reaching local customers- Adapting an idea to suit diverse cultures and outlooks
while remaining true to the key messages behind the campaign remains a major
challenge for global brands. Stewarding these creative, intellectual and emotional
elements safely across territories is one mighty task. But figuring out digital media on
a global scale – with all the technical, media and channel options available – makes
the picture even more complex.
 Handle creative development - Another key global marketing challenge is the ongoing
strive for global campaign consistency, while achieving local relevance. Whether you
choose to carry out the localisation of your global campaign in-house, or trust a
partner agency to adapt your campaign, it’s important to put as much effort into
implementing your campaign globally, as you would in the creative development.
 Understand customer wants and needs - There’s a clear need to align campaigns to
diverse cultural and social sensitivities. It’s just part of the jigsaw our marketers need
to piece together. But targeting messages on a global scale also requires a deep
understanding of how industries, geography and demographics will affect messaging.
 Digital and social performance - Global marketers understand the value of social, but
it can prove difficult to run social on a global scale, given the more direct nature of
 social communications. Yet, if planned in conjunction with local teams and measured
effectively, social can be a fantastic channel for global marketers to use.
 Use of technology - Technology has made global marketers’ lives a lot easier. Yet
there is the risk to let it lead the way, while it should be an enabler of creative ideas,
following a strategic and operational vision .Digital Asset Management (DAM)
remains a tactical challenge. Brands are striving to maintain a centralised repository
of marketing assets. It’s also important to know which assets are being used, which
are needed, and which assets can no longer be used due to expired usage rights.

Ans 3.b) Protectionism refers to government policies that restrict international trade to help
domestic industries. Protectionist policies are usually implemented with the goal to improve
economic activity within a domestic economy but can also be implemented for safety or
quality concerns. Protectionist policies are typically focused on imports but may also involve
other aspects of international trade such as product standards and government subsidies. The
merits of protectionism are the subject of fierce debate. Critics argue that over the long term,
protectionism often hurts the people and entities it is intended to protect by slowing economic
growth and increasing price inflation, making free trade a better alternative. Proponents of
protectionism argue that the policies can help to create domestic jobs, increase gross domestic
product (GDP), and make a domestic economy more competitive globally.

 Tariffs - Import tariffs are one of the top tools a government uses when seeking to
enact protectionist policies. There are three main import tariff concepts that can be
theorized for protective measures. In general, all forms of import tariffs are charged to
the importing country and documented at government customs. Import tariffs raise the
price of imports for a country.
 Import Quotas - Import quotas are non-tariff barriers that are put in place to limit the
number of products that can be imported over a set period of time. The purpose of
quotas is to limit the supply of specified products provided by an exporter to an
importer. This is typically a less drastic action that has a marginal effect on prices and
leads to higher demand for domestic businesses to cover the shortfall.
 Product Standards - Product safety and high volumes of low-quality products or
materials are typically top concerns when enacting product standards. Product
standard protectionism can be a barrier that limits imports based on a country’s
 internal controls.
 Government Subsidies - Government subsidies can come in various forms. Generally,
they may be direct or indirect. Direct subsidies provide businesses with cash
payments. Indirect subsidies come in the form of special savings such as interest-free
loans and tax breaks. When exploring subsidies, government officials may choose to
provide direct or indirect subsidies in the areas of production, employment, tax,
property, and more.

Ans. 4) In a globalised world with more competitors vying for shelf space across the globe,
consumers are overloaded with information and continue to place increasing importance on
brands. In all types of daily decisions – not just purchasing – the average person relies on
heuristics that minimize the amount of information required to reach a conclusion and
minimise uncertainty. One of the signals that consumers use is the origin of a brand. Like
Germany when it comes to cars, or Japan for electronics, many nations have long-established
associations that are rather obvious.. According to a research from Futurebrand, whose
annual Country Brand Index (CBI) ranks countries on the strength and power of their nation’s
brand, the country in which a brand is based, designed and manufactured all rank higher than
traditional drivers of choice like price, availability and style. Asian brands, especially
Chinese, are often a source of negative association. According to the World Advertising
Research Centre, 81% of Americans prefer a Japanese product to a Chinese one. Among
German consumers, for example, few are able to name a Chinese brand without prompting a
negative response and 70% have no preference for brands from emerging markets. Aside
from Japan, Korea and Taiwan, it is difficult for Western consumers to associate Asian
countries with a competitive advantage other than low-cost and low-quality. But there are
positive examples as well. Consumers are slowly learning about South Korea as one of the
most important beauty trendsetters, not only in Asia, but the world. South Korea has now
surpassed Japan as the model for Asian beauty, and as home-grown skincare and cosmetic
brands such as Korean beauty firm AmorePacific expand overseas, they will owe much of
their positive brand equity to this country of origin effect. Samsung has had a similar positive
impact on the nation brand equity of Korea due to their rapid, global rise as a brand
influencing the way global stakeholders view Korea.

Understanding where a brand originates is not as simple as it used to be. Today, a product can
be designed in one country, manufactured in another by a brand based in a third country with
strong cultural ties to a fourth country using resources sourced from dozens of other
countries. According to global brand agency Futurebrand, a brand’s nationality – i.e. where it
is perceived to be from – is more important to consumers than where the product was actually
designed, but less important than where products are physically manufactured. For brands,
this means that it can borrow associations from various places as much as it wishes, but the
name stamped on the ‘Made In’ label matters most to consumers at the end of the day. When
it comes to a decision between two brands, the most authentic in terms of production, not just
image, is preferred by the majority of consumers.Brands must, however, be careful at the
lengths they are willing to go in order to control where their products are manufactured. The
image of Italian luxury was damaged in 2012 when it was revealed that the Italian
government endorsed sweatshop working conditions in Italy so luxury brands could
maximise their profitability while still claiming authenticity. As a result, the prestige of
‘Made in Italy’ became subject of scepticism – a huge misstep in the ultra-competitive world
of high-fashion.

While global brands definitely make their home nations look better, a nation’s brand strength
is not guaranteed to increase the strength of brands from that nation. Even though the world
may positively or negatively regard a nation’s public image, it does not mean that brands
from that nation automatically share the same esteem. For example, while South Korea may
have a weak overall country brand in terms of tourism, politics and business – ranked 49th
overall by Futurebrand – it has achieved top 10 status as country from which to buy
manufactured goods because of Korean brands like Samsung, Hyundai, LG and Kia. The rise
of Korean popular culture, which has been described as The Korean Wave (Hallyu), has also
helped to enhance the country of Korea.Regardless of the strength of their country brand,
each individual company has much more work to do independently in order to change how
the world perceives them.

 Mergers, acquisitions & alliances: The majority of new brands on the global stage
lack not only operational capabilities needed to carry out an international strategy, but
reputational capital as well. Because the right partnership can give boost to a brand’s
intangible appeal, the easiest way to build these capabilities are through joint
ventures, mergers or acquisitions. Although Chinese brands are more highly regarded
in terms of value for money, worldwide perceptions are improving in terms
innovation and design thanks to high-profile alliances.
 Change leadership structure and location: Building a successful brand from a country
with a bad reputation may sometimes require relocating offices entirely. Not only can
 an improved legal system help protect consumers; representatives who can respond to
local issues can improve the smoothness of operations. Hierarchies that are distant
from the markets they serve can be debilitating when those at the top of the pyramid
do not understand the challenges of those on the ground. A local culture, not just a
presence, is vital for a foreign brand to make the right decisions and appeal to local
consumers.
 Make branding & innovation a boardroom imperative: “Branding” is a widely
misunderstood term in countries where origin associations are weak. Most executives
still believe branding activities refer to how a company uses its logos, packaging and
advertisements whereas branding activities actually comprise anything to do with
strategy and execution from top to bottom of an organisation. Whatever activity
eventually contributes to the outstanding, differentiated experience for customers
must be considered a branding activity. If they intend to overcome country of origin
disadvantages and flourish overseas in the long-term, international brands must carry
out more than superficial marketing activities. Japanese firms like Sony and Toyota
who embraced this journey in the 1950s and 1960s elevated branding to the
boardroom level. The example they set for how every detail and experience reflected
the brand’s promise is why Japan still ranks as the leading Country of Origin for
electronic goods in the world. Business leaders must have the courage to move from a
volume obsessed manufacturing paradigm towards a customer-value driven purpose.

A global brand and a global company are two dramatically different entities. Although they
may own domestic market share and have a favourable reputation at home, most new
international brands are coming to realise how much their country of origin precedes them
and influences consumers on the world stage. To remedy this gap and transform their image,
nations must help their brands by directly promoting them overseas while indirectly
improving business conditions for them at home. Simultaneously, the brands themselves must
take a leadership role in pursuing partnerships with foreign companies, decentralising and
diversifying their leadership and steadily cultivating a new perception of their brand through
innovation and a focus on branding as central to their global strategy.
Ans. 5) Intellectual property (IP) pertains to any original creation of the human intellect such
as artistic, literary, technical, or scientific creation. Intellectual property rights (IPR) refers to
the legal rights given to the inventor or creator to protect his invention or creation for a
certain period of time. These legal rights confer an exclusive right to the inventor/creator or
his assignee to fully utilize his invention/creation for a given period of time. It is very well
settled that IP play a vital role in the modern economy. It has also been conclusively
established that the intellectual labor associated with the innovation should be given due
importance so that public good emanates from it. There has been a quantum jump in research
and development (R&D) costs with an associated jump in investments required for putting a
new technology in the market place. The stakes of the developers of technology have become
very high, and hence, the need to protect the knowledge from unlawful use has become
expedient, at least for a period, that would ensure recovery of the R&D and other associated
costs and adequate profits for continuous investments in R&D. IPR is a strong tool, to protect
investments, time, money, effort invested by the inventor/creator of an IP, since it grants the
inventor/creator an exclusive right for a certain period of time for use of his
invention/creation. Thus IPR, in this way aids the economic development of a country by
promoting healthy competition and encouraging industrial development and economic
growth. Present review furnishes a brief overview of IPR with special emphasis on
pharmaceuticals. Originally, only patent, trademarks, and industrial designs were protected as
‘Industrial Property’, but now the term ‘Intellectual Property’ has a much wider meaning.
IPR enhances technology advancement in the following ways

 it provides a mechanism of handling infringement, piracy, and unauthorized use

 it provides a pool of information to the general public since all forms of IP are
published except in case of trade secrets.

IP protection can be sought for a variety of intellectual efforts including

 Patents
 Industrial designs relates to features of any shape, configuration, surface pattern,
composition of lines and colors applied to an article whether 2-D, e.g., textile, or 3-D,
e.g., toothbrush
 Trademarks relate to any mark, name, or logo under which trade is conducted for any
product or service and by which the manufacturer or the service provider is identified.
 Trademarks can be bought, sold, and licensed. Trademark has no existence apart from the
goodwill of the product or service it symbolizes
 Copyright relates to expression of ideas in material form and includes literary,
musical, dramatic, artistic, cinematography work, audio tapes, and computer software
 Geographical indications are indications, which identify as good as originating in the
territory of a country or a region or locality in that territory where a given quality,
reputation, or other characteristic of the goods is essentially attributable to its
geographical origin