INTERNATIONAL MARKETING

PONTIFICIA UNIVERSIDAD CATOLICA DE CHILE

ESCUELA DE ADMINISTRACION

INTERNATIONAL MARKETING

Course outlineCourse outlineCourse outlineCourse outline

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Welcome Message I am looking forward to meeting you for the International Marketing course. The trend toward

globalization of trade and sales activities has increasingly accentuated the importance of

understanding the firm behavior in foreign markets. In preceding decades international

business was the preserve of large commodity traders and a few pioneering marketing

companies. That has changed dramatically. Now companies in most industries are concerned

with developments in international markets: banks; communications and transport;

manufacturing; and retailing. Small and large companies are affected, as are companies in

traditional and high-technology industries and most services. There are very few businesses that are not affected by trends in international markets. More open and integrated international

markets create opportunities and competitive challenges for the firm seeking profitable

growth. To succeed in such an environment managers must be flexible and able to develop

and implement dynamic international marketing strategies. It is necessary for these managers

to acquire a detailed knowledge of international markets to be able to develop and grow in

international markets.

The technical knowledge that you will glean during the sessions will demonstrate to you that

international marketing consists of a set of concepts and principles for deciding which

international markets the firm should enter, how to analyze the international environment,

choosing the method of entering markets, developing the international marketing program and

negotiating a successful outcome. The material can be quite technical in places and so

requires considerable study. The material in this course is presented from the perspective of

the firm. We will discuss the above issues and how they apply to companies that you know. To do that we will examine several case studies. The plan for the sessions is as follows:

Part 1: -An Overview

Part 2: -The Cultural Environment of Global Markets

Part 3: -Market Entry Strategies

Part 4: -Developing Global Marketing Strategies

Part 5: -Implementing Global Marketing Strategies

As some topics will require more detailed study than others, the timing of each topic will

vary. Before coming to the session I hope you will have time to study the assigned reading in

the Study Guide. I also hope that you will be able to prepare the case studies. These

assignments will help you enormously in understanding what international marketing is all

about so that when we meet our time together will be more productive. The more prepared we are the greater the learning experience! It is important, therefore, that you study the textbook

before coming to class.

I trust that you will find this course interesting from both a personal and a professional

viewpoint and I look forward to my time with you. Best wishes in your preparation!

Carlos Sousa UCD Michael Smurfit School of Business

University College Dublin

E-mail: [email protected]

August 2007

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Introduction to Study Guide A study of international marketing strategy is concerned with the strategic and operational

marketing issues arising in the management of the firm’s international operations. The firm in

international markets develops its marketing strategies and implements them in the context of

a complex and changing environment. In doing so it must also respond to the needs and

demands of its customers while coping with competition. Of special interest, therefore, is the

role of the firm in mediating the international environment through corporate marketing

strategies. The material in this course is presented from the perspective of the firm that is

attempting to develop and grow in international markets.

Textbook

The textbook for this course is:

Hollensen, Svend (2007), Global Marketing: A Decision-Oriented Approach (4th ed.).

London: Prentice Hall.

Course Grades

Class Participation 20%

Group Assignment 40%

Exam 40%

Class Participation

Class participation is measured by the quality of your contribution to the debates that arise in

class. You should seek to use quality preparation and pre-class discussion with your study

group to identify specific topics to contribute on as well as important qualitative or

quantitative issues that arise. Each comment should seek to move class discussion forward.

Isolated, obvious or confusing points should be avoided. Quantity of participation is no

indication of quality.

In sum, outstanding participation involves the following:

• Drawing parallels and applying conceptual material from the readings or lectures

• In-depth analysis of concepts and cases supported by facts or experience

• Constructive disagreement

• Integrating comments from colleagues

• Integrating concepts across class periods as well as courses

Factors that detract from participation

• Lack of involvement: silence, detachment, disinterest, disruption

• Leading the discussion into unrelated topics

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• Long, rambling comments that fail to advance the class’ progress toward its

objectives

• Being absent or unprepared

You will be provided with a name card at the first lecture. On the back of the name card, you

will have the opportunity to evaluate your contribution to class discussion each week.

Group Assignment

After the Briefing Session you are expected to complete a 10-15 page (1.5 spacing, font:

Times New Roman 12pt) International Marketing Plan.

The assignment involves the development of an international marketing plan for an actual

firm. The international marketing plan will involve the development of a strategic plan for a

‘real’ firm that is considering entering a new country. You are not expected to contact the

firm directly but you may do so if necessary. Students are expected to utilize numerous data

sources in compiling their project, such as government (country) and non-government sources

(UN, Worldbank, IMF, etc.), internal company records, consulting, legal and advertising

firms, country-specific internet sites, trade statistics, embassy resources, etc.

Select a country in which your ‘firm’ DOES NOT OPERATE. When selecting the firm

please note that the focus should be on consumer products, as they offer more

opportunities to focus on cultural adaptation than do most industrial goods. Products

meeting these criteria include: baby food, powered milk, shampoos, prepared foods such

as dry soups, children’s toys, etc.

Many firms, when going global, need to gather information pertaining to the

environment, competition, infrastructure, and product/market specific marketing

strategies when entering a country. As such, students groups are expected to develop an

international marketing plan that addresses these issues.

The following format is suggested as a guide:

Proposed outline:

1. Title page

• Title of the project

• Client’s official name

• Name of authors including student number and group

2. Table of contents, list of figures and tables

• This should include a list of divisions and subdivisions of the report with page

references. If the report contains many figures or tables, a list of these should also be

included immediately following the table of contents.

3. Executive summary

• This one-to-two page managerial summary should outline the study background

and objectives, research design and major findings, conclusions based on the

findings, and recommendations for action

4. Introduction

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• Describe the product and the company

5. Situation Analysis

• Describe the environment you operate in – general information about the

industry, competition along with information about the firm and the market

6. Target Market

• Identify the foreign market the company should enter and explain why

• Describe the foreign market

o Economic Environment

1. Population: total, distribution, trends, etc.

2. Economic statistics & activities: income, industries, etc.

3. International trade statistics: imports, exports, balance of

payments, exchange rates, inflation, etc.

4. Trade restrictions: tariffs & quotas, etc. 5. Labor Force: size, unemployment rates, trends, etc.

6. Infrastructure: transportation, communication, marketing channels,

etc.

7. Other considerations as apparent and appropriate

o Cultural Environment

1. Role of social Institutions: family, education, social organizations, business customs & practices, etc.

2. Philosophy and beliefs - religion, the arts, etc.

3. Living conditions: diet & nutrition, housing, working conditions,

clothing, recreation, sports & leisure, etc.

4. Languages: official, dialects, non-verbal, etc.

5. Cultural responsiveness to change/development

6. Other considerations you judge critical to their potential

acceptance or rejection of your offering.

o Political & Legal Environment

1. Nature of host country political system: structure, parties, etc.

2. An assessment of political risk/stability as it affects business

prospects.

3. Nature of judicial system: structure, legal system (common vs.

code law), etc.

4. Home country/host country relations

5. Summary of relevant legal restrictions: domestic content, trade

restrictions, special trade/investment incentives, special taxes, etc.

6. Participation in international agreements: market agreements,

patent & trademark protection, political alliances, etc. 7. Other Considerations as apparent and appropriate

7. Market Entry Strategy and Marketing Mix

• Your recommended entry strategy and rationale (reasons) for this choice, and reasons

not to choose other options.

• Your recommended marketing strategy (standardization/adaptation) and the rationale

• An analysis of your potential competitors in this market

o Which competitors do you need to worry most about, and why?

• Target market description and rationale

o Who will your customers be & why are these the most appropriate

customers?

• Product/service strategy and rationale

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o What will you sell & why is this the right offering for your selected market?

o Attitudes toward foreign products in the target market

• Promotion strategy and rationale

o How will you promote your offering & why this way?

o Environmental influences on your promotion decisions

• Pricing strategy and rationale

o What price will you charge & why? o Environmental influences on your pricing decisions

• Distribution strategy and rationale

o How will you make your offering available in this market & why this way?

8. Conclusions

• After analyzing and tentatively proposing a market entry strategy for the firm’s

product in the foreign country, you should be able to answer the questions: Why

have chosen the specific country and strategy? What are the chances of success for your product in the foreign country?

9. Reference List

• Please provide a complete reference for all materials you consult. Information drawn

from these sources should be cited within the body of your paper.

• For references, please follow the guidelines of the Harvard Reference System or of

the Journal of Marketing

10. Appendices

Course Structure

Session 1

• Scope and significance of international marketing strategy

• Theory and analytical framework for international marketing

Reading assignments

- Textbook: Svend Hollensen (2007), Chapter 1& 2

Session 2

• Theory and analytical framework for international marketing

• Analysis of international competitors

Reading assignments - Textbook: Svend Hollensen (2007), Chapter 3 & 4

CASE STUDY: Barbie: The American I-Doll

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Session 3

• Cultural environment of international marketing

Reading assignments

- Textbook: Svend Hollensen (2007), Chapter 7

CASE STUDY: XXX

Session 4

• The political/legal and economic environments of international marketing

• The international market selection process

Reading assignments

- Textbook: Svend Hollensen (2007), Chapter 6 & 8

CASE STUDY: Renault’s Logan

Session 5

• Generic foreign market entry strategies

• Exporting

Reading assignments


CASE STUDY: Starbucks' International Operations

Session 6

• Strategic alliances

• Foreign direct investment

Reading assignments


CASE STUDY: XXX

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Session 7

• International Product Strategies

Reading assignments


CASE STUDY: Lavazza France

Session 8

• Distribution Channels in International Markets

Reading assignments


CASE STUDY: ZARA: Fast Fashion

Session 9

• Pricing in International Markets

Reading assignments - Textbook: Svend Hollensen (2007), Chapter 15

CASE STUDY: Medi-Cult: Pricing a Radical Innovation

Session 10

• International Promotion Strategies

Reading assignments


CASE STUDY: Ikea’s Global Marketing Strategy

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Session 11

• International Marketing Negotiations

• Assessing International Marketing Performance

Reading assignments


CASE STUDY: Silvio Napoli at Schindler India

Case Studies During the sessions we will discuss the following case studies:

1. Barbie: The American I-Doll (ECCH reference number 505-115-1)

o Discussion questions:

� Evaluate and comment on Mattel’s global marketing strategy for

Barbie.

� Mattel has experienced problems in entering the Japanese market.

What could they have done differently to achieve a greater success in

this market? � What strategies should Mattel employ to combat the threat from the

Susi doll in Latin America?

� How important is national culture in children’s toy preference? Will

cultural differences lead to Mattel’s downfall in the Middle East?

Why or why not?

2. XXX


�

3. Renault’s Logan (ECCH reference number 506-215-1)


� Which markets and segments does Renault aim to reach for the

Logan?

� Explain the design of the Logan. Is it attractive enough for the

targeted segments and markets?

� Is Logan indeed a world car?

� What do you think about the future of the Logan in India? Suggest

the strategy for marketing of the Logan in India

� Identify a country where Logan can be marketed successfully. Justify

the selection of the country. What should be the marketing strategy in

that country?

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4. Starbucks’ International Operations (ECCH reference number 203-026-1)


� Analysts feel that MNCs can mitigate some of the risks in

international markets by deciding on a suitable mode of entry into

these markets. Analyze the entry strategies adopted by Starbucks for its international expansion.

� Careful analysis and management of risks not only mitigate losses

but also provide superior returns. In the light of this statement do you

think Starbucks did not analyze and manage the risks involved in the

different markets it entered?

� A company faces diverse set of risks in international markets. What

were the risks faced by Starbucks in its international operations?

Explain how Starbucks can reduce risks in its international business.

5. XXX


�

6. Lavazza France (ECCH reference number 505-087-1)


� What are the reasons underlying the development of an internationalization process?

� What are the possible country-product-market combinations?

� What is the competitive, distribution and market situation?

� What product strategies were adopted?

� What different product policy stages were adopted by Lavazza in

France?

� What distribution policy was adopted? � What is the degree of internationalization of the brand?

7. Zara: Fast Fashion (ECCH reference number 9-703-497)


� Was Galicia/Spain fertile ground for the emergence of an apparel

retailing powerhouse?

� How well does Zara’s advantage travel globally?

� What do you think of Zara’s past international strategy? Evaluate, in

particular, its past strategy for (product) market selection, its mode of

entry, and its standardization of its marketing approach.

� What is the best way to grow the Zara chain? How specifically, do

you see prospects in the Italian market? And more broadly, what do

you think about the strategy of focusing on Europe versus making a

major commitment to a second region?

� What other strategic recommendations would you make to Inditex

CEO Jose Maria Castellano?

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8. Medi-Cult (ECCH reference number IMD – 5 -0537)


� What is the value of the product?

� Should Medi-Cult adopt a skimming or penetration pricing strategy?

� What launch price(s) should Medi-Cult adopt for Denmark, France, UK, and the US?

9. IKEA’s Global Marketing Strategy (ECCH reference number 506-045-8)


� Discuss the factors that helped establish a global brand.

� What role do you think the founder has played in the success of

IKEA?

� IKEA customers seemed to have a ‘love-hate’ relationship with the

company. Analyze the reasons for the same and also discuss what

approach the company needs to take to curb customer resentment.

10. Silvio Napoli at Schindler India (ECCH reference number 5-303-121)


� Was Silvio the right choice for general manager of Schindler’s India

operations?

� What advice would you give to Silvio regarding his decision on the nonstandard glass wall elevator that has been ordered?

� How would you deal with the challenges he is facing over transfer

prices and limited technical cooperation from the European plants?

You are expected to study and prepare the answers to these cases studies before attending the

briefing sessions. It is suggested that you meet in your groups beforehand to discuss and

prepare the cases. You should be ready with your analysis to defend your views in a plenary

session with the remainder of the class. All groups are expected to present and defend

their views. You should expect cold calls from the lecturer.

INTERNATIONAL MARKETING

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